On August 26, 2024, McKesson entered into a definitive agreement to acquire a 70% controlling interest in Community Oncology Revitalization Enterprise Ventures, LLC for approximately $2.49 billion cash, subject to certain customary adjustments. Following the completion of the transaction, Core Ventures will be part of the Oncology platform, and financial results will be reported within our U.S. Pharmaceutical segment.

On December 30, 2024, McKesson completed the sale of its Canadian retail disposal group for an adjusted purchase price consisting of a cash payment of $9 million and a note of $120 million. McKesson recorded a charge of $667 million for the year ended March 31, 2025 in total operating expenses to remeasure the Canadian retail disposal group to fair value less costs to sell.

During the second quarter of fiscal 2025, McKesson approved enterprise-wide initiatives to modernize and accelerate its technology service operating model, which are intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. The company anticipates total charges related to these initiatives of $650 million to $700 million.

The company recorded restructuring, impairment, and related charges of $286 million for the year, reflecting efforts to streamline operations and improve efficiency. These initiatives are expected to continue through fiscal 2028.

McKesson returned $3.5 billion of cash to shareholders during fiscal 2025 through $3.1 billion of common stock repurchases and $345 million of dividend payments. The board approved an increase of $4.0 billion in the authorization for repurchase of the Company's common stock and raised our quarterly dividend to $0.71 from $0.62 per share of common stock.

During the year ended March 31, 2025, McKesson reassessed its initial estimates made in conjunction with the previously reserved prepetition balances, including cash received during the period, resulting in a reversal of $206 million recorded within "Selling, distribution, general, and administrative expenses".

The company acknowledges that its technology systems and those of its service providers are subject to cyberattacks and cybersecurity incidents, which could result in material data breaches, disruption of business operations, and financial loss.

McKesson is a defendant in many litigation matters alleging claims related to the distribution of controlled substances (opioids). An adverse outcome of any such legal proceedings might have a materially adverse impact on our business operations and our financial position or results of operations.

The company acknowledges that healthcare reform efforts, including the Inflation Reduction Act (IRA), could significantly change how healthcare is financed and affect the price and reimbursement of drugs.

McKesson operates in highly competitive environments in North America and Norway, facing competition from international, national, regional, and local distributors, as well as other service providers and healthcare manufacturers.

Due to consolidation, a few large suppliers control a significant share of the pharmaceuticals market, reducing McKesson's ability to negotiate favorable terms. Similarly, consolidation among customers increases their bargaining power and counterparty credit risk.

McKesson believes that its scale and diversity of product and service offerings are its primary competitive advantages, along with price, quality of service, breadth of product lines, innovation, and adoption of new technologies.

McKesson is implementing restructuring, cost reduction, and other business process initiatives that result in significant charges and expenses. These initiatives might fail to achieve our desired objectives or have unintended consequences such as distraction of our management and employees, business disruption, attrition beyond any planned reduction in workforce, inability to attract or retain key personnel and reduced employee productivity.

The company is investing in new and existing distribution centers to increase scale and capacity, improve efficiency through automation and technology, and enhance regulatory compliance capabilities.

From time to time we have difficulties in sourcing or selling products due to a variety of causes and are adversely impacted by disruptions or changes in product supply.

McKesson invests in data and analytics to support its growth priorities, including artificial intelligence (AI). The company is in the early stages of exploring potential AI capabilities and related data and analytics across our enterprise to improve productivity and efficiency.

New technologies, such as AI, may not result in the benefits we anticipate, may not enable us to maintain a competitive advantage, and may require us to expend significant resources.

The company relies on sophisticated information systems and networks to perform its business operations, such as to obtain, rapidly process, analyze, and manage data that facilitate the purchase and distribution of thousands of inventory items from distribution centers.

McKesson returned $3.5 billion of cash to shareholders during fiscal 2025 through $3.1 billion of common stock repurchases and $345 million of dividend payments. In July 2024, our Board of Directors (the “Board") approved an increase of $4.0 billion in the authorization for repurchase of the Company's common stock and raised our quarterly dividend to $0.71 from $0.62 per share of common stock.

During the year ended March 31, 2025, McKesson utilized the net proceeds from the issuance of the 2029 Notes, along with cash on hand, to redeem its $500 million outstanding principal amount of 5.25% Notes due February 15, 2026 (the “2026 Notes”) prior to maturity.

Investing activities used cash of $733 million and $1.1 billion for the years ended March 31, 2025 and 2024, respectively. Investing activities for the year ended March 31, 2025 includes $537 million and $322 million, respectively, in capital expenditures for property, plant, and equipment and capitalized software.

Investors, regulators, employees, customers, and other stakeholders continue to focus on companies’ governance and sustainability (“G&S”) practices and policies, including those related to human capital management, climate change, environmental responsibility, and social impact.

McKesson incurs cleanup costs under environmental laws and may incur additional costs under environmental laws.

We are subject to laws prohibiting improper payments and bribery, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and similar regulations in other jurisdictions.

We operate in highly competitive environments in North America and Norway. In recent years, the healthcare industry has been subject to increasing consolidation.

We are adversely impacted by changes in the economic environments in which we operate, including from inflation, an economic slowdown, a recession, or fluctuations in foreign currency exchange rates.

Volatility and disruption in global capital and credit markets, including the bankruptcy or restructuring of certain financial institutions, reduced lending activity by financial institutions, reduced creditworthiness of our customers or suppliers, or decreased liquidity and increased costs in the commercial paper market, might adversely affect the borrowing ability and cost of borrowing for us and our customers and suppliers.