Does this filing contain McKesson's full annual financial results for fiscal 1999?

No. This is a 10-K/A amendment that only adds the Form 11-K for the employee profit-sharing plan. Consolidated revenue, earnings, and balance sheet data would be found in the original fiscal 1999 Form 10-K.

Why does the filing matter to investors?

It discloses that a large share of employee retirement assets was concentrated in McKesson HBOC stock, and that the stock declined significantly after March 31, 1999. This highlights both employee exposure to the company's share price and the market reaction following the HBOC merger.

How large is the employee plan relative to the company?

The plan held $254.3 million in net assets at March 31, 1999. The filing does not provide company-wide figures needed to assess its size relative to McKesson's total operations.

What changed for the plan after the merger?

Effective April 1, 1999, the McKesson and HBO & Company plans were merged into the McKesson HBOC Profit Sharing Investment Plan. Company matching contributions became entirely McKesson HBOC common stock, and eligibility requirements were changed.

Were there any accounting or governance concerns disclosed?

The filing itself does not describe any accounting irregularities. The auditors' report is unqualified, and the 11-K has no restatement. The subsequent stock price decline is disclosed without explanation, so investors should consult other McKesson HBOC filings from this period for context.

MCK 10-K FY1999 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K/A filed October 12, 1999. Cited figures are marked; the original filing is the authoritative source.

This filing is a Form 10-K/A amendment by McKesson HBOC, Inc. (MCK) for the fiscal year ended March 31, 1999, filed October 12, 1999.

It does not contain the company's full annual financial statements, business discussion, or risk factors. Its sole purpose is to attach the Form 11-K annual report (Exhibit 99.4) for the McKesson HBOC, Inc. Profit Sharing Investment Plan, which was formed by merging the McKesson and HBO & Company employee profit-sharing plans effective April 1, 1999. The amendment also lists the exhibit index for the broader 10-K, including merger agreements with HBO & Company (dated October 17, 1998), employment and compensation plans, a credit agreement with Bank of America, and financial data schedules.

The attached 11-K covers the predecessor HBO & Company Profit Sharing and Savings Plan. Net assets available for benefits were $254.3 million^a at March 31, 1999, up from $249.7 million at December 31, 1998. The McKesson HBOC common stock fund was the largest single holding at $73.2 million, or about 29% of plan assets.

That fund suffered $19.4 million^b of unrealized depreciation in the quarter, and the plan's auditors note a significant subsequent decline in MCK's share price after quarter-end. For investors, this filing carries little direct financial information about McKesson HBOC as a company.

The most relevant signals are the concentration of employee retirement assets in company stock and the post-merger stock price weakness, which was tied to the accounting issues at HBOC that surfaced in 1999. Investors seeking revenue, earnings, or balance sheet data should review the original 10-K for fiscal 1999 rather than this amendment.

02—Key points

Key Highlights

Filing type: 10-K/A amendment for fiscal year ended March 31, 1999, filed October 12, 1999, solely to add Form 11-K (Exhibit 99.4).
Company: McKesson HBOC, Inc. (formed through the merger of McKesson Corporation and HBO & Company, announced October 17, 1998).
The attached plan had net assets available for benefits of $254.3 million at March 31, 1999, versus $249.7 million at December 31, 1998.
McKesson HBOC common stock comprised $73.2 million (about 29%) of plan assets at quarter-end, making it the largest single holding.
The McKesson HBOC stock fund recorded $19.4 million of unrealized depreciation during the quarter, and the auditors disclosed a significant subsequent decline in the stock's market value.
Exhibit index includes merger agreements, a November 1998 credit agreement with Bank of America as agent, and executive compensation and deferred compensation plans.
The plan merger into the McKesson HBOC Profit Sharing Investment Plan took effect April 1, 1999, with company matching contributions shifting entirely to company common stock.

03—Questions

Frequently Asked Questions

Does this filing contain McKesson's full annual financial results for fiscal 1999?
No. This is a 10-K/A amendment that only adds the Form 11-K for the employee profit-sharing plan. Consolidated revenue, earnings, and balance sheet data would be found in the original fiscal 1999 Form 10-K.
Why does the filing matter to investors?
It discloses that a large share of employee retirement assets was concentrated in McKesson HBOC stock, and that the stock declined significantly after March 31, 1999. This highlights both employee exposure to the company's share price and the market reaction following the HBOC merger.
How large is the employee plan relative to the company?
The plan held $254.3 million in net assets at March 31, 1999. The filing does not provide company-wide figures needed to assess its size relative to McKesson's total operations.
What changed for the plan after the merger?
Effective April 1, 1999, the McKesson and HBO & Company plans were merged into the McKesson HBOC Profit Sharing Investment Plan. Company matching contributions became entirely McKesson HBOC common stock, and eligibility requirements were changed.
Were there any accounting or governance concerns disclosed?
The filing itself does not describe any accounting irregularities. The auditors' report is unqualified, and the 11-K has no restatement. The subsequent stock price decline is disclosed without explanation, so investors should consult other McKesson HBOC filings from this period for context.

04—Continue

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