What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce and provide details on McKesson's strategic decision to realign its business operations into two new reporting segments, effective from the first quarter of fiscal year 2008. It also provides historical segment financial data reflecting this new structure.

What are the two new business segments?

The two new business segments are McKesson Distribution Solutions and McKesson Technology Solutions. The former combines previous pharmaceutical and medical-surgical distribution operations, while the latter encompasses technology solutions and now includes the payor-focused businesses.

Why is McKesson changing its business segments?

McKesson is changing its business segments to better coordinate its operations with the needs of its customers and to align business activities with management's performance evaluation strategies. This realignment also aims to leverage synergies and create value through enhanced connectivity and transparency within the healthcare ecosystem.

What financial information is provided in the filing?

The filing includes Recast Condensed Consolidated Income Information by Business Segment for Fiscal 2006 and Fiscal 2007. This allows investors to see how the company's historical financial performance aligns with the new segment structure.

MCK 8-K SEC Disclosure — May 30, 2007

Summary

McKesson Corporation (MCK) filed an 8-K on May 29, 2007, to report a significant change in its business segment reporting. Effective from the first quarter of fiscal year 2008, the company is realigning its operations into two primary segments: McKesson Distribution Solutions and McKesson Technology Solutions. This strategic shift aims to better align operations with customer needs and capitalize on emerging synergies. The filing includes recast condensed consolidated income information for fiscal years 2006 and 2007 to reflect this new segmentation. The McKesson Distribution Solutions segment consolidates the former Pharmaceutical Solutions and Medical-Surgical Solutions segments, emphasizing combined back-office activities and process improvements. This segment also incorporates specialty pharmaceutical solutions, pharmacy software, and related services, along with significant interests in Mexican pharmaceutical distributor Nadro and automated dispensing system provider Parata Systems. The McKesson Technology Solutions segment, formerly Provider Technologies, will now include the Payor group of businesses alongside its existing enterprise-wide healthcare IT solutions and services for providers. This integration is designed to foster connectivity and transparency between payors and providers.

Key Highlights

1McKesson is restructuring its business segments for fiscal year 2008 to two new segments: McKesson Distribution Solutions and McKesson Technology Solutions.
2This realignment is intended to better coordinate operations with customer needs and enhance management's performance evaluation.
3Prior period segment information for fiscal years 2006 and 2007 has been reclassified to conform to the new segment structure.
4McKesson Distribution Solutions combines former Pharmaceutical and Medical-Surgical Solutions, focusing on synergies and including interests in Nadro (Mexico) and Parata Systems.
5McKesson Technology Solutions expands to include the Payor group (InterQual, clinical auditing) to align with its technology strategy focused on connectivity between payors and providers.
6Revenues within the Technology Solutions segment are categorized into software and software systems, services, and hardware.

MCKESSON CORP 8-K Report, Corporate Update (May 30, 2007)

Summary

Key Highlights

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