SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

(Mark One)

þ		ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2009

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

A. Full title of the plan and address of the plan, if different from that of the issuer named below:

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

McKesson Corporation

 

 

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

TABLE OF CONTENTS

Item		Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		3
FINANCIAL STATEMENTS as of and for the Years Ended March 31, 2009 and 2008:
Statements of Net Assets Available for Benefits		4
Statements of Changes in Net Assets Available for Benefits		5
Notes to Financial Statements		6-17
SUPPLEMENTAL SCHEDULE AS OF MARCH 31, 2009:
Form 5500, Schedule H, Part IV, Line 4i — Schedule of Assets (Held at End of Year)		18
EXHIBITS:
23.1 Consent of Independent Registered Public Accounting Firm
EX-23.1

     All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

McKesson Corporation Profit-Sharing Investment Plan
San Francisco, CA

     We have audited the accompanying statements of net assets available for benefits of the McKesson Corporation Profit-Sharing Investment Plan (the “Plan”) as of March 31, 2009 and 2008, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the financial statements based on our audits.

     We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

     In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of March 31, 2009 and 2008, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

     Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule listed in the table of contents is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This schedule is the responsibility of the Plan’s management. Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2009 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/ Deloitte & Touche LLP
San Francisco, CA

September 21, 2009

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
MARCH 31, 2009 AND 2008 (IN THOUSANDS)

		2009												2008
		Participant				Non-Participant								Participant				Non-Participant
		Directed				Directed				Plan Total				Directed				Directed				Plan Total
ASSETS:
Cash and cash equivalents:
Allocated		$				$	2,107			$	2,107			$				$	2,229			$	2,229
Unallocated							14				14								25				25
Total cash & cash equivalents			—				2,121				2,121				—				2,254				2,254
Investments at Fair Value:
Mutual funds and brokeragelink			555,801								555,801				792,874								792,874
Common/ collective trusts			181,344								181,344				263,945								263,945
Separately managed accounts			92,402								92,402				169,834								169,834
BNY Mellon Stable Value Portfolio			133,528								133,528				125,120								125,120
Participant loans			26,871								26,871				26,078								26,078
McKesson Corp. common stock:
Allocated							270,485				270,485								383,445				383,445
Unallocated							2,328				2,328								7,746				7,746
Employee stock fund			37,027								37,027				47,683								47,683
Total
Investments at Fair Value			1,026,973				272,813				1,299,786				1,425,534				391,191				1,816,725
Receivables:
Dividends and interest on:
Allocated							902				902								446				446
Unallocated							8				8								21				21
Due from broker for securities sold —allocated											—								966				966
Total receivables			—				910				910				—				1,433				1,433
Total assets			1,026,973				275,844				1,302,817				1,425,534				394,878				1,820,412
LIABILITIES:
Line of credit — on unallocated stock											—								700				700
ESOP promissory notes payable — on unallocated stock							869				869								2,503				2,503
Accrued interest — unallocated stock							38				38								108				108
Accrued other							1,052				1,052								844				844
Total liabilities			—				1,959				1,959				—				4,155				4,155
NET ASSETS Available for Benefits at Fair Value			1,026,973				273,885				1,300,858				1,425,534				390,723				1,816,257
ADJUSTMENT from fair value to contract value for fully benefit-responsive investment contracts			6,469								6,469				303								303
NET ASSETS Available for Benefits		$	1,033,442			$	273,885			$	1,307,327			$	1,425,837			$	390,723			$	1,816,560

     See notes to financial statements.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED MARCH 31, 2009 AND 2008 (IN THOUSANDS)

		2009												2008
		Participant				Non-Participant								Participant				Non-Participant
		Directed				Directed				Plan Total				Directed				Directed				Plan Total
INVESTMENT INCOME (LOSS):
Net (depreciation) in fair value of investments		$	(476,184	)		$	(129,919	)		$	(606,103	)		$	(116,973	)		$	(44,943	)		$	(161,916	)
Dividends and interest			34,504				3,653				38,157				75,644				2,587				78,231
Investment (loss)			(441,680	)			(126,266	)			(567,946	)			(41,329	)			(42,356	)			(83,685	)
CONTRIBUTIONS:
Participants			123,628								123,628				125,573								125,573
Employer							53,812				53,812								11,952				11,952
Total contributions			123,628				53,812				177,440				125,573				11,952				137,525
DEDUCTIONS:
Benefits paid to participants			98,451				21,092				119,543				134,980				30,475				165,455
Interest expense							111				111								463				463
Administrative fees			640				90				730				1,100				90				1,190
Total deductions			99,091				21,293				120,384				136,080				31,028				167,108
(DECREASE) IN NET ASSETS BEFORE TRANSFERS AND MERGERS			(417,143	)			(93,747	)			(510,890	)			(51,836	)			(61,432	)			(113,268	)
TRANSFERS TO PARTICIPANT DIRECTED INVESTMENTS			23,091				(23,091	)			—				43,256				(43,256	)			—
MERGER OF NET ASSETS FROM OTHER PLANS			1,657								1,657				144,899								144,899
INCREASE (DECREASE) IN NET ASSETS			(392,395	)			(116,838	)			(509,233	)			136,319				(104,688	)			31,631
Net assets at beginning of year			1,425,837				390,723				1,816,560				1,289,518				495,411				1,784,929
Net assets at end of year		$	1,033,442			$	273,885			$	1,307,327			$	1,425,837			$	390,723			$	1,816,560

     See notes to financial statements.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS
YEARS ENDED MARCH 31, 2009 AND 2008

1. PLAN DESCRIPTION

     The following brief description of the McKesson Corporation Profit-Sharing Investment Plan (the “PSIP” or the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information. The PSIP is a defined contribution plan covering all persons who have completed two months of service and are regular or part-time employees, or are casual employees who have completed a year of service in which they worked at least 1,000 hours in a year, at McKesson Corporation (the “Company” or “McKesson”) or a participating subsidiary, except employees covered by a collectively bargained pension plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

     Fidelity Management Trust Company (“Fidelity”) is the trustee of the Plan.

     The Plan is comprised of Participant Directed and Non-Participant Directed Investments, as described below:

     A Participant Directed Investments

     Contributions — The Plan qualifies as a safe harbor plan as described in Internal Revenue Code sections 401(k) (12) and 401(m) (11). Participants may make pretax contributions from 1% to 20% of eligible pay, limited to $16,500 for calendar year 2009 and $15,500 for calendar year 2008. Total contributions are limited to the lesser of $49,000 for calendar year 2009 and $46,000 for calendar year 2008 or 100% of taxable compensation per calendar year. Participants 50 years of age or older may also elect to make pretax catch-up contributions of up to 67% of pay, limited to $5,500 for calendar year 2009 and $5,000 for calendar year 2008. Participants may also contribute amounts representing distributions from other qualified plans.

     Participant Accounts — Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution and an allocation of earnings, and charged with withdrawals and an allocation of losses and administrative expenses. Allocations are based on participant earnings, or account balances, as defined in the Plan document. The participant is entitled to a benefit upon retirement or separation from employment based upon the vested portion of the participant’s account.

     Vesting — Participant contributions and earnings thereon are 100% vested at all times.

     Investment Options — Upon enrollment in the PSIP, a participant may direct contributions in 1% increments to any of the investments within the Plan. The following are descriptions from each fund’s prospectus or fund manager’s report:

•

BNY Mellon Stable Value Portfolio invests in fixed-income investments issued by life insurance companies and financial institutions. This is a separately managed account, not a mutual fund.

•

McKesson Corporation Employee Company Stock Fund (the “Employee Stock Fund”) represents shares invested in Company common stock with participant contributions and transfers from the Employer Company Stock Allocated Fund.

•

SSgA Bond Index Fund is a commingled pool that seeks to provide investment results that correspond to the total return of the bonds in the Barclays Capital Aggregate Bond Index (formerly known as the Lehman Brothers Aggregate Bond Index).

•

SSgA Balanced Fund is a custom mix of commingled pools that invests 60% in SSgA S&P 500 Index Fund and 40% in SSgA Bond Index Fund.

•

Wellington Management Small Cap Portfolio invests in stocks within the market capitalization range of the Russell 2000 Index. This is a separately managed account, not a mutual fund, which seeks long-term growth by investing in the stocks of small companies.

•

SSgA S&P 500 Index Fund is a commingled pool that invests in stocks in the benchmark S&P 500 Index and attempts to duplicate the investment results of that index.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

•

Dodge & Cox Large Cap Value Portfolio invests in the common stock of companies when the fund managers believe the long-term earnings prospects are not reflected in the current price. This is a separately managed account, not a mutual fund.

•

Fidelity Diversified International Fund invests primarily in a diversified portfolio of equity securities of companies located outside of the United States.

•

Rainier Large Cap Growth Portfolio invests primarily in the common stock of large companies, with a goal of long-term capital growth. This is a separately managed account, not a mutual fund.

•

Mutual Fund Window provides access to approximately 260 mutual fund options from more than 20 investment companies.

•

Fidelity BrokerageLink provides access to a discount brokerage account which allows participants to develop a self-directed brokerage option.

     Loans — Participants may apply for a loan from the Plan. The total amount owed to the Plan by an individual participant cannot exceed the lowest of: (i) 50% of such participant’s vested account balance, (ii) $50,000 as adjusted for certain items specified in the Plan document, or (iii) the value of the participant’s account attributable to basic, supplemental, catch-up and rollover contributions. Most loans bear interest at the then current prime rate of interest on the loan date plus 1%. Contractual interest rates ranged from 4% to 11% in fiscal 2009 and 2008. Loans may be repaid over a period not to exceed 5 years, except for residential loans, which must not exceed a term of 10 years. Principal repayments and interest are paid through payroll deductions. For participants who have been terminated or are on leave and are no longer receiving a paycheck, loan repayments may be made via electronic funds transfer or monthly coupon payments. Participant loans totaled $26,871,000 and $26,078,000 at March 31, 2009 and 2008.

     Payment of Benefits — Participants have the right to receive a total distribution of the value of their vested accounts from the PSIP at the time of retirement, death, disability or termination of employment. In general, benefit payments are made in a lump sum cash amount, but participants also may elect a distribution in-kind in the form of installments. Former employees may remain participants in the Plan.

     Transfers from Other Qualified Plans — In March 2009, the net assets from McQueary Brothers Drug Company 401(k) Profit Sharing Plan totaling $1,657,000 were merged into the Plan. In April 2007, the net assets from the Medcon Telemedicine Technology, Inc. 401(k) Profit Sharing Plan totaling $234,000 were merged into the Plan. The net assets including participant loans from the Per Se Technologies Employee Retirement Savings Plan and the NDC Health Corporation 401(k) Plan totaling $92,127,000 and $52,538,000 were merged into the Plan in July and June 2007.

     B Non-Participant Directed Investments

     General — The McKesson Corporation Employer Company Stock Funds (Allocated and Unallocated) (the “Employer Stock Funds”) consist of a leveraged Employee Stock Ownership Plan (“ESOP”). Generally, the Allocated fund represents shares that have been allocated to participants through employer matching contributions and have not been directed to other investment options by the participants. This fund is classified as “non-participant directed” because only the Company can direct shares into this account. The Unallocated fund represents ESOP shares to be used for the future employer matching contributions. Participants can transfer employer matching contributions from the allocated fund to other participant directed investments, including the Employee Stock Fund, as soon as they are made. Total transfers to the participant directed investments for the years ended March 31, 2009 and 2008 were $23,091,000 and $43,256,000. In fiscal 2009, employer matching contributions were funded, in part, with 81,000 shares from the ESOP and 462,000 in share contributions directly from the Company. In fiscal 2008, employer matching contributions were funded with 876,000 shares from the ESOP and 3,000 share contributions from the Company.

     Employer Matching Contributions to Participants Accounts — Effective the last business day of each month throughout the fiscal year, or as soon as administratively feasible thereafter, participant accounts are credited with matching Company contributions, primarily in the form of the Company’s common stock based on a percentage of the participants’ basic contributions. Effective April 1, 2005, the Plan provides for Company matching contributions to all participants who make elective deferrals in an amount equal to 100% of the employee’s deferral for the first 3% of pay deferred and 50% of the employee’s deferral for the next 2% of pay deferred. An additional annual matching contribution may be granted at the discretion of the Company to plan participants. The Plan was amended effective April 1, 2007 to provide for a true-up matching employer contribution, the amount equal to the difference between

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

(1) a participant’s match determined based on the participant’s compensation and eligible contributions for the entire Plan Year and (2) the amount of the participant’s match contributed to the plan on a monthly basis for the Plan Year.

     The Internal Revenue Code requires that shares be released for employer contributions according to a formula based on debt service payments under the leveraged ESOP component of the Plan. The Company contributed $55,539,000 which included $4,163,000 in ESOP contributions, $20,576,000 in share contributions directly from the Company and $30,800,000 in cash to fund the company match contribution in the year ended March 31, 2009. The Company contributed $52,512,000 which included $52,314,000 in ESOP contributions and $198,000 in share contributions to fund the company matching contribution in the year ended March 31, 2008.

     Employer Contributions — Dividends on unallocated shares of Company common stock are used to pay the obligations under the ESOP loans. Under the terms of the loan agreements, the Company is required to make cash contributions to the extent that the dividends are not sufficient to service the debt. To pay down such debt obligations, cash contributions amounted to $2,436,000 and $11,754,000 in the years ended March 31, 2009 and 2008.

     Vesting — Employer contributions made on or after April 1, 2005 are 100% vested immediately. Employer contributions made before April 1, 2005 vest ratably over five years of service (20% vests each year over five years). Generally, for employer contributions made before April 1, 2005, 100% vesting is provided upon retirement, disability, death, termination of the Plan, or a substantial reduction in work force initiated by the Company for affected participants. Dividends automatically reinvested in McKesson common stock on and after January 1, 2003 are also 100% vested at all times.

     Forfeitures — A rehired employee who has met certain levels of service prior to termination may be entitled to have forfeited interests in the PSIP reinstated. Each fiscal year, forfeited interests are used to reinstate previously forfeited amounts of rehired employees and to pay other Plan expenses as appropriate. Forfeitures for the years ended March 31, 2009 and 2008 of employer contributions made before April 1, 2005 were $430,000 and $983,000.

     Diversification of Stock Fund — Participants may transfer Company contributions to other investment funds as soon as they are made. In addition, participants may diversify past Company contributions without restrictions.

     Payment of Benefits — Distributions are made only upon participant retirement, death (in which case, payment shall be made to the participant’s beneficiary), or other termination of employment with the Company. Distributions are made in cash or, if a participant elects, in the form of Company common shares plus cash for any fractional share.

     McKesson Corporation Employer Company Stock Funds (Allocated and Unallocated) — The following is information regarding the shares of McKesson Corporation common stock at fair value held as of March 31 (in thousands):

		2009												2008
		Number of								Fair Value of				Number of								Fair Value of
		Shares				Cost Basis				Shares				Shares				Cost Basis				Shares
Allocated			7,719			$	276,973			$	270,485				7,322			$	251,438			$	383,445
Unallocated			67				1,252				2,328				148				2,787				7,746
Total			7,786			$	278,225			$	272,813				7,470			$	254,225			$	391,191

     The per share fair value of McKesson Corporation common stock at March 31, 2009 and 2008 was $35.04 and $52.37.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     The following is a reconciliation of the allocated and unallocated net assets available for benefits of the Non-Participant Directed funds for the years ended March 31 (in thousands):

		2009												2008
		Allocated				Unallocated				Total				Allocated				Unallocated				Total
Net Assets (beginning of year)		$	386,242			$	4,481			$	390,723			$	450,199			$	45,212			$	495,411
Net (depreciation) appreciation			(128,665	)			(1,254	)			(129,919	)			(45,084	)			141				(44,943	)
Dividends and interest			3,599				54				3,653				2,436				151				2,587
Employer contributions			51,376				2,436				53,812				198				11,754				11,952
Benefits paid to participants			(21,092	)							(21,092	)			(30,475	)							(30,475	)
Interest expense							(111	)			(111	)							(463	)			(463	)
Administrative fees			(90	)							(90	)			(90	)							(90	)
Allocation of 81 shares, at market			4,163				(4,163	)			—												—
Allocation of 876 shares, at market											—				52,314				(52,314	)			—
Transfers to participant directed investments			(23,091	)							(23,091	)			(43,256	)							(43,256	)
Net Assets (end of year)		$	272,442			$	1,443			$	273,885			$	386,242			$	4,481			$	390,723

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Basis of Accounting — The financial statements of the Plan are prepared in accordance with accounting principles generally accepted in the United States of America.

     Investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit responsive investment contracts. The contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The Statement of Net Assets Available for Benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.

     Cash Equivalents — The Plan considers all highly liquid debt instruments with remaining maturities of less than three months at the date of purchase to be cash equivalents.

     Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires Plan management to make estimates and assumptions that affect the reported amount of net assets available for benefits and changes therein. Actual results could differ from those estimates.

     Risk and Uncertainties — The Plan utilizes various investment instruments including mutual funds, common collective trusts, separately managed accounts and guaranteed investment contracts. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the financial statements.

     New Accounting Pronouncements — In September 2006, the Financial Accounting Standards Board (FASB) issued the Financial Accounting Standards (“SFAS”) No. 157, Fair Value Measurements, which provides a consistent definition of fair value that focuses on exit price and prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value. SFAS No. 157 requires expanded disclosures about fair value measurements and establishes a three-level hierarchy for fair value measurement. On April 1, 2008, the Plan adopted SFAS No. 157 for financial assets and financial liabilities. The provisions of SFAS No. 157 are applied prospectively. The adoption of the various provisions of SFAS No. 157 had no material impact on the Plan’s financial statements.

     In April 2009, the FASB issued Staff Position (“FSP”) 157-4, Determining Fair Value When Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. FSP No. 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157 when an asset or liability experienced a significant decrease in volume and activity in relation to their normal market activity. Additionally, the FSP provides guidance on identifying circumstances that may indicate if a transaction is not orderly. FSP 157-4 is effective for the Plan beginning in fiscal year 2010. The adoption of FSP 157-4 is not expected to have a significant impact on the Plan’s financial statements.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     Investment Valuation and Income Recognition — The Plan’s investments are stated at fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in mutual funds are stated at quoted market prices, which represent the net asset value of shares held by the Plan at year-end. Investments in the Fidelity BrokerageLink are stated at quoted market prices. Investments in common collective trusts are stated at net asset value. Interests in separately managed funds are valued based on the underlying net assets.

     Within the BNY Mellon Stable Value Portfolio (“Stable Value Portfolio”) (Standish Mellon Stable Value Portfolio for fiscal year 2008), traditional Guaranteed Investment Contracts (“GICs”) and Variable Synthetic (“VS”) GICs are stated at estimated fair value using discounted cash flows. Fixed Maturity Synthetic (“FMS”) GICs are stated at estimated fair value based on market values of publicly traded bonds that are held as the underlying assets within the FMS GICs. The valuation is provided by FT Interactive Data Corporation. Constant Duration Synthetic (“CDS”) GICs are also held in the Stable Value Portfolio and are stated at estimated fair value based on market values provided by Barclays Global Investors.

     Participant loans are valued at their outstanding loan balances, which approximates fair value. Shares of McKesson Corporation common stock are valued at quoted market prices on March 31, 2009 and 2008. Certain administrative expenses are allocated to the individual investment options based upon daily balances invested in each option and are reflected as a reduction of net appreciation in fair market value of investments and are not separately reflected. Consequently, these management fees and operating expenses are reflected as a reduction of investment return for such investments. All other activity is recorded in the Plan based on the elections of the individual participants in the Plan. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investment bought and sold as well as held during the year.

     Administrative Fees — Administrative fees of the Plan are paid by either McKesson or the Plan, as provided by the Plan document.

     Benefits — Benefits are recorded when paid.

3. INVESTMENTS

     The fair values of individual investments that represent 5% or more of the Plan’s net assets at March 31 were as follows (in thousands):

		2009				2008
McKesson Corporation Employer Stock (Allocated and Unallocated) *		$	272,813			$	391,191
SSgA S&P 500 Index Fund			101,200				171,671
Dodge & Cox Large Cap Value Portfolio **			—				116,358
Stable Value Portfolio			133,528				125,120

     The Stable Value Portfolio contains investment contracts with insurance companies and financial institutions in order to provide participants with a stable return on investment and protection of principal from changes in market interest rates.

     Traditional GICs are unsecured, general account obligations of insurance companies. The obligation is backed by the general account assets of the insurance company that writes the investment contract. Traditional GIC crediting rates are based upon the rate that is agreed to when the insurance company writes the contract and are generally fixed for the life of the contract.

     Variable Synthetic GICs consist of an asset or collection of assets that are managed by the bank or insurance company and are held in a bankruptcy remote vehicle for the benefit of the fund (or plan). The contract is benefit responsive and provides next day liquidity at contract value. The VS GICs crediting rate is reset every quarter based on the then current market index rates and investment spread. The investment spread is established when the contract is issued and is guaranteed by the issuer for the life of the investment.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     Fixed Maturity Synthetic GICs consist of an asset or collection of assets that are owned by the fund (or plan) and a benefit responsive, contract value wrap contract purchased for the portfolio. The wrap contract provides contract value accounting for the asset and assures that contract value, benefit responsive payments will be made for participant directed withdrawals.

     Constant Duration Synthetic GICs consist of a portfolio of securities owned by the fund (or plan) and a benefit responsive contract value wrap contract purchased for the portfolio. The wrap contract amortizes gains and losses of the underlying securities over the portfolio duration and assures that contract value, benefit responsive payments will be made for participant directed withdrawals.

     The FMS GICs and CDS GICs use wrap contracts in order to manage market risks and to alter the return characteristics of the underlying portfolio of securities owned by the Stable Value Portfolio to match certain fixed income fund objectives. There are no reserves against these contract values for credit risk of the contract issuer or otherwise. For both FMS and CDS GICs, the fair values of “wraps” provided by issuers are valued by BNY Mellon Stable Value Group at March 31, 2009 (Standish Mellon Asset Management at March 31, 2008) using the combination of a cost and income approach. The methodology uses the cost approach to determine a replacement value of each contract based on an internal pricing matrix developed by the portfolio management and trading team of BNY Mellon Stable Value Group at March 31, 2009 (Standish Mellon Asset Management Stable Value Group at March 31, 2008). The methodology then uses the income approach to determine the present value of the fee payments related to the contract, using both the current contractual fees as well as the replacement fees generated by the matrix pricing. The fee payments over the duration of the contract are discounted by using comparable duration swap rates. The carrying value of the contract is the present value of the wrapper cost applying replacement fees less the present value of the wrapper cost applying current contractual fees.

     The initial crediting rate for both the FMS and CDS GICs are established based on the market interest rates at the time the initial asset is purchased and is guaranteed to have an interest crediting rate not less than zero percent. The FMS GICs crediting rate is set at the start of the contract and typically resets on a quarterly basis. The CDS GICs crediting rate resets every quarter based on the contract value, the market yield to maturity of the underlying assets, the market value of the underlying assets and the average duration of the underlying assets. The crediting rate for CDS GICs aims at converging the contract value of the contract and market value of the contract and therefore will be affected by interest rate and market changes.

     It is probable that withdrawals and transfers resulting from the following events will limit the ability of the fund to transact at book or contract value. Instead, fair value will likely be used in determining the payouts to the participants.

	•		Employer-initiated events — events within the control of the plan or the plan sponsor which would have a material and adverse impact on the Fund
	•		Employer communications designed to induce participants to transfer from the fund
	•		Competing fund transfer or violation of equity wash or equivalent rules in place
	•		Changes of qualification status of employer or plan

     In general, issuers may terminate the GIC and settle at other than contract value if the qualification status of employer or plan changes, breach of material obligations under the contract and misrepresentation by the contract holder, or failure of the underlying portfolio to conform to the pre-established investment guidelines.

     The average yield of the entire Stable Value Portfolio based on actual earnings was 4.22% and 4.46% at March 31, 2009 and 2008. The average yield of the GICs based on the interest rate credited to participants was 4.08% and 4.38% at March 31, 2009 and 2008. To calculate the required yield, the amount credited to participants for the last day of the period is annualized and divided by the fair value of the investment portfolio on that date.

     The GICs are presented in the Statements of Net Assets Available for Benefits at fair value in the investments total and adjusted to contract value in determining the net assets available for benefits.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     The portfolio holdings in the Stable Value Portfolio as of March 31, 2009 and 2008 are shown below (in thousands):

		As of March 31, 2009
		Rating				Investment				Wrap				Adjustment to
		S&P/				at Fair				Contract at				Contract
		Moody’s				Value				Fair Value				Value
Cash /Cash Equivalent:
Fidelity Management Trust Company (STIF)		Cash/Cash				$	13,949			$	—			$	—
Natixis (formerly IXIS) Financial Products, Inc		A+/Aaa					2,057				—				(50	)
Guaranteed Investment Contract:
Metropolitan Life Insurance Company		AA-/Aa2					2,554				—				(44	)
Fixed Maturity Investment:
Bank of America, N.A.		AAA/Aaa					16,223				17				166
State Street Bank		AAA/Aaa					12,421				13				734
Rabobank Nederland		AAA/Aaa					8,099				4				(122	)
Constant Duration Synthetic:
State Street Bank		AA+/Aa2					20,304				38				1,464
Pacific Life		AA+/Aa2					38,812				49				2,941
Natixis (formerly IXIS) Financial Products, Inc		AA+/Aa2					18,400				—				1,360
Pooled Funds:
BNY Mellon Stable Value Portfolio		AA+/Aa1					588				—				20
Total						$	133,407			$	121			$	6,469

		As of March 31, 2008
		Rating				Investment				Wrap				Adjustment to
		S&P/				at Fair				Contract at				Contract
		Moody’s				Value				Fair Value				Value
Cash /Cash Equivalent:
Fidelity Management Trust Company (STIF)		Cash/Cash				$	6,466			$	—			$	—
Natixis (formerly IXIS) Financial Products, Inc		AAA/Aaa					2,064				—				(53	)
Guaranteed Investment Contract:
Hartford Life Insurance Company		AA-/Aa3					1,559				—				—
Fixed Maturity Investment:
Bank of America, N.A.		AAA/Aaa					13,444				4				(49	)
State Street Bank		AAA/Aaa					11,546				3				25
Rabobank Nederland		AAA/Aaa					12,414				1				(44	)
Constant Duration Synthetic:
State Street Bank		AA+/Aa1					18,734				10				87
UBS		AA+/Aa1					12,830				2				106
AIG Financial Products		AA+/Aa1					23,827				4				197
Natixis (formerly IXIS) Financial Products, Inc		AA+/Aa1					18,734				16				79
Pooled Funds:
Northern Trust Pooled		AA+/Aa1					2,881				—				(47	)
Standish Mellon Stable Value Portfolio		AA+/Aa1					581				—				2
Total						$	125,080			$	40			$	303

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     During fiscal 2009 and 2008, the Plan’s investment loss (including gains and losses on investments bought and sold, as well as held during the year) is as follows (in thousands):

		2009				2008
Common/collective trusts		$	(79,112	)		$	(10,642	)
Mutual funds, Fidelity brokeragelink and Stable Value Portfolio			(309,506	)			(75,286	)
Separately Managed Accounts			(71,218	)			(25,620	)
McKesson Corporation Common Stock:
Employer Company Stock Fund (Allocated and Unallocated)*			(129,919	)			(44,943	)
Employee Company Stock Fund			(16,348	)			(5,425	)
Total		$	(606,103	)		$	(161,916	)

4. FAIR VALUE MEASUREMENTS

     SFAS No. 157 defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Plan considers the principal or most advantageous market in which the Plan would transact, and the Plan considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, redemption restrictions, and risk of non-performance.

     In addition to defining fair value, SFAS No. 157 expands the disclosure requirement around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:

Level 1		— Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2		— Quoted prices for similar assets or liabilities in active markets; — quoted prices for identical or similar assets or liabilities in inactive markets; — inputs other than quoted prices that are observable for the asset or liability; and — inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3		— Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.

     The Plan’s investments measured at fair value on a recurring basis consisted of the following types of instruments as of March 31, 2009 (in thousands):

						Fair Value Measurements
Description		Total				Level 1				Level 2				Level 3
Mutual funds and Fidelity brokeragelink		$	555,801			$	555,801			$				$
Common / collective trusts			181,344								181,344
Separately managed accounts			92,402				92,402
BNY Mellon stable value portfolio Underlying investments			133,528								133,528
Participant loans			26,871												26,871
McKesson Corp. common stock			309,840				309,840
Total		$	1,299,786			$	958,043			$	314,872			$	26,871

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     The following table presents a Level 3 reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (in thousands):

		Participant
Description		loans
Beginning balance — April 1, 2008		$	26,078
Additions, repayments, settlements, net			793
Ending balance — March 31, 2009		$	26,871

     Below is a description of the valuation methodologies used for the fair value measurements.

     Mutual funds are publicly traded investments which are valued using the Net Asset Value (“NAV”). The NAV of the mutual fund is a quoted price in an active market. The NAV is determined once a day after the closing of the exchange based upon the underlying assets in the fund, less the fund’s liabilities, expressed on a per-share basis.

     Common/ collective trusts are valued based on the NAV of the underlying securities in an active market. The beneficial interest of each participant is represented in units. Units are issued and redeemed daily at the fund’s closing NAV.

     Fixed maturity synthetic and constant duration synthetic GICs consist primarily of underlying assets which are traded in active markets and have readily quoted market prices. The fair value of the underlying portfolio of these contracts is the sum of all assets’ market values provided by third party pricing sources or external managers. Both fixed maturity synthetic and constant duration synthetic GICs contain wrap contracts that guarantee benefit responsive payments for participant directed transactions at contract value. The fair value of the wrap contract is the present value of the wrapper cost applying replacement fees less the present value of the wrapper cost applying current contractual fees. Short term investments represent a fund’s cash balance, and fair value will be equal to the face value of cash. Fair values of traditional GICs are determined by calculating the present value of all future cash flows of the contract. Fair value of variable synthetic GICs are the book value of the contracts plus the present value of the payments required by the current market spread less the present value of the contractual spread payments set at the time of purchase.

5. LINE OF CREDIT

     In fiscal 1998, the Plan obtained a $35 million line of credit with ABN AMRO Bank N.V. to refinance a portion of the principal payable under the ESOP loans and to more efficiently manage the number of shares released to fund the employee benefits. The line of credit bore interest at London Interbank Offered Rate (“LIBOR”) multiplied by the applicable LIBOR adjustment. The line of credit matured on June 1, 2009. On March 31, 2008 the interest rate was 2.45% on the outstanding balance of $700,000. As of March 31, 2008 the line of credit was collateralized by 16,023 unallocated shares of McKesson Corporation common stock. The line of credit was prepaid in full on April 9, 2008. On April 9, 2008 the remaining 16,023 shares were released from collateral and were allocated to participants during fiscal year 2009.

6. ESOP PROMISSORY NOTES PAYABLE

     In June 1989, the Company amended the Plan to add an additional leveraged ESOP. In June 1989, the Plan purchased from the Company 2,849,003 shares of McKesson Corporation Series B ESOP Convertible Preferred Stock ($43.875 stated value) for $125,000,000, financed by a twenty-year term loan from the Company. During fiscal 1995, in connection with the PCS Transaction (a fiscal 1995 transaction involving a reorganization and a sale of a business unit of the Company), all shares of Series B ESOP Convertible Preferred Stock held by the Plan were converted into 5,440,914 shares of Company common stock. In fiscal 1996, in connection with the PCS Transaction, the ESOP purchased 6,259,080 additional shares of Company common stock.

     The ESOP promissory note supporting the June 1989 stock purchase is payable to the Company in annual installments plus interest at 8.6% over a twenty-year term ending in fiscal 2010. In June 2007 a principal payment of $6,000,000 was made to enable the release

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

of additional shares for employer contributions, and each of the scheduled subsequent loan repayment installments was reduced. On March 31, 2009, the outstanding balance of the note was $869,000 ($2,503,000 at March 31, 2008). This note is collateralized by 66,444 unallocated shares of McKesson Corporation common stock (131,884 at March 31, 2008). In June 2009, the Company paid in full the remaining principal amount of $869,000.

7. FEDERAL INCOME TAX STATUS

     The Internal Revenue Service has determined and informed the Company by letter dated January 21, 2004, that the Plan is qualified and the trust established under the Plan is tax-exempt, in accordance with the applicable sections of the Internal Revenue Code. In accordance with Revenue Procedure 2006-66, the Plan’s sponsor has requested an updated determination letter on the entire Plan as amended, including the requirements of the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107-16, and all other items identified on the 2005 Cumulative List of Changes in Plan Qualification Requirements. The Company and the Plan administrator believe that the Plan is currently designed and operated in compliance with the applicable requirements of the Internal Revenue Code and the Plan and related trust continue to be tax-exempt. Therefore no provision for income taxes has been included in the Plan’s financial statements.

8. PLAN TERMINATION

     The Company’s Board of Directors reserves the right to terminate the Plan. If termination should occur, all participant accounts will immediately vest and each account would receive a distribution equal to the vested account balance. In addition, the unallocated common stock would be liquidated to repay the ESOP promissory notes payable. In June 2009, the Company paid in full the remaining principal amount of $869,000 due on the ESOP promissory note

9. LITIGATION

     ERISA Litigation

     The Plan’s report on Form 11-K for the year ended March 31, 2007, included a description of an action in the United States District Court for the Northern District of California captioned In re McKesson HBOC, Inc. ERISA Litigation (N.D. Cal. C-00-20030 RMW) (the “ERISA Action”), a lawsuit initiated following announcements by McKesson in April, May and July of 1999 that McKesson had determined that certain software sales transactions in its Information Solutions segment, formerly HBO & Company (“HBOC”), were improperly recorded as revenue and reversed. The ERISA Action was brought on behalf of two putative classes: an “HBOC Sub-Class,” and a “McKesson Sub-Class”. The HBOC Sub-Class included participants in the former HBO & Company Profit-Sharing and Savings Plan (the “HBOC Plan”) and their beneficiaries in the period from March 31, 1996 to April 1, 1999 (the date of the merger of the HBOC Plan into the Plan), for whose benefit the HBOC Plan held and acquired HBOC stock (and, after January 12, 1999, McKesson stock). The McKesson Sub-Class included participants in the Plan (excluding employees of HBOC who became participants in the Plan by virtue of the merger of the HBOC Plan into the Plan on or about April 1, 1999) whose accounts were invested in McKesson stock at any time, who maintained an account balance under the Plan as of April 27, 1999, which included McKesson stock, and who had not received a distribution from the Plan as of April 27, 1999. Plaintiffs in the ERISA Action alleged, among other things, that McKesson, HBOC, and the alleged fiduciaries of the Plan and of the HBOC Plan breached their fiduciary duties.

     On May 6, 2005, McKesson reached an agreement to settle all claims for the benefit of the HBOC Sub-Class for approximately $18.2 million in exchange for releases in favor of all defendants, including releases of claims the HBOC Sub-Class might have under ERISA, the federal securities laws, or which relate to the holding, voting or acquisition of McKesson or HBOC securities. The court granted final approval to that settlement on September 9, 2005, holding that it was fair, adequate and reasonable to the HBOC Sub-Class. In November 2005, the Plan received the ERISA Action settlement for the HBOC Sub-Class, less attorneys’ fees, totaling $13,654,000. The ERISA litigation proceeds for the HBOC Sub-Class were allocated to the Plan participants on November 17, 2005. In October 2006, the Plan received $15,000 in residual settlement proceeds which were allocated to the Plan participants.

     In March 2006, the Company reached an agreement to settle all claims for the benefit of the McKesson Sub-Class for $18.5 million, plus certain accrued interest, minus certain costs and expenses such as plaintiffs’ attorneys’ fees. The court granted final approval to that settlement on September 1, 2006, holding that it was fair, adequate and reasonable to the McKesson Sub-Class. This settlement provided for the release of all remaining claims against all defendants in the ERISA Action. In October 2006, the Plan received the ERISA Action settlement for the McKesson Sub-Class, less attorneys’ fees, totaling $13,966,000. The ERISA litigation proceeds for the McKesson Sub-Class were allocated to the Plan participants on April 24, 2007.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

     Accounting Litigation

     Also following the announcements by McKesson in April, May and July of 1999 described above, as of March 31, 2007, numerous lawsuits had been filed against McKesson, HBOC, certain of McKesson’s or HBOC’s current or former officers or directors, and other defendants, including Bear Stearns & Co. Inc. (“Bear Stearns”) and Arthur Andersen LLP (“Andersen”), which lawsuits were consolidated into a single proceeding in the Northern District of California captioned, In re McKesson HBOC, Inc. Securities Litigation (No. C-99-20743 RMW) (the “Consolidated Securities Litigation Action”). On January 12, 2005, McKesson announced that it reached an agreement to settle the claims in the Consolidated Securities Litigation Action. On February 24, 2006, the district court gave final approval to the McKesson settlement of the Consolidated Securities Litigation Action, and as a result, McKesson paid approximately $960 million into an escrow account established by the lead plaintiff in connection with the settlement. On April 13, 2007, the district court gave final approval to the settlement of related claims against Andersen brought pursuant to the Consolidated Securities Litigation Action. In that matter, the district court found the settlement of the claims against Andersen for the sum of $72.5 million in cash, plus accrued interest, was fair, reasonable, and adequate to the settlement class. On January 18, 2008, the trial judge gave his final approval to a settlement of the class action by the last remaining defendant, Bear Stearns. In consideration of obligations of Bear Stearns, McKesson paid $10 million to fund the Bear Stearns class settlement. The Bear Stearns settlement is final. On April 27, 2009, the court issued an order approving the distribution of the settlement funds. The Plan is anticipating receiving its share of the settlement of approximately $90 million during 2010. Approximately $30 million of the Consolidated Securities Litigation Action proceeds are attributable to the allocated shares of the McKesson common stock owned by the Plan participants during the Consolidated Securities Litigation Action class holding period and will be allocated to the respective participants on that basis. Approximately $60 million of the proceeds are attributable to the unallocated shares (the “Unallocated Proceeds”) of McKesson common stock owned by the Plan in an employee stock ownership plan (the “ESOP”) suspense account during the Consolidated Securities Litigation Action class holding period. In accordance with the Plan terms, the Plan will allocate all of the Unallocated Proceeds to current PSIP participants as of the close of the Plan year in which such amounts are received by the Plan.

10. RELATED-PARTY TRANSACTIONS

     At March 31, 2009 and 2008, the Plan held approximately 8,834,000 and 8,373,000 common shares of McKesson Corporation, the Plan’s sponsor. The shares are held within the McKesson Corporation Employer and Employee Stock Funds and the Leveraged ESOP. At March 31, 2009 and 2008, the allocated Employer Stock Funds held approximately 7,719,000 and 7,322,000 common shares and the Leveraged ESOP held approximately 67,000 and 148,000 common shares, as collateral for the ESOP loans. At March 31, 2009 and 2008, the Employee Stock Fund held approximately 1,048,000 and 903,000 shares.

     McKesson Corporation declared dividends of $0.48 per share for fiscal year 2009 ($0.24 for 2008). During the years ended March 31, 2009 and 2008, the Employer Stock Funds received dividend income from McKesson Corporation common shares of approximately $3,118,000 and $1,988,000. During each of the years ended March 31, 2009 and 2008, the Employee Company Stock Fund received dividend income from McKesson Corporation common shares of approximately $393,000 and $216,000.

     Certain investment options are managed by Fidelity, which also serves as the Plan’s record-keeper and trustee. Therefore, these transactions qualify as party-in-interest transactions. Fees for investment management services are allocated to the participants with balances in those funds.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 2009 AND 2008

11. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

     The following is a reconciliation of the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits per the financial statements at March 31, 2009 and 2008 to the Form 5500:

Statements of net assets available for benefits:

		2009				2008
Net assets available for benefit per the financial statements		$	1,307,327			$	1,816,560
Adjustment from contract value to fair value for fully benefit-responsive investment contracts			(6,469	)			(303	)
Net Assets available for benefits per the Form 5500		$	1,300,858			$	1,816,257

Statements of changes in net assets available for benefits:

		2009				2008
Increase (decrease) in net assets per the financial statements		$	(509,233	)		$	31,631
Change in adjustment from contract value to fair value for fully benefit-responsive investment contracts			(6,166	)			611
Net increase (decrease) in net assets available for benefits per the Form 5500		$	(515,399	)		$	32,242

12. SUBSEQUENT EVENTS

     The Plan was amended effective April 2009 to change the timing of the employer matching contribution from monthly to annually for the Plan year ended March 2010.

     Effective April 2009 the Plan will offer a Roth 401(k) after tax contribution option in addition to the existing pretax contribution option.

     Effective June 2009, the Plan was amended to allow employer cash contributions to be retained in cash or cash equivalent investments within the Plan and for income in the Suspense Account to be retained in cash. In addition, following the amendment, matching employer contributions made in cash will be invested in the participant directed funds unless otherwise determined by the Company.

     Effective August 2009, the Plan will change the investment options within the core investments, close the mutual fund window to new contributions and add Vanguard target-dated funds as the default investment fund. The Plan will continue to offer the McKesson Employee Stock Fund and the Fidelity BrokerageLink options.

     In June 2009, the outstanding ESOP promissory note of $869,000 was paid in full and the remaining collateralized 67,000 unallocated shares of McKesson Corporation common stock were released and will be allocated to participants in fiscal year 2010.

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR)
MARCH 31, 2009

						Shares/Units/Interest
Investment/Fund Name		Cost Basis				Rate				Fair Value
* MCKESSON ER STK FUND (allocated)		$	276,973,057				7,719,312			$	270,484,695
* MCKESSON ER STK FUND (unallocated)			1,251,805				66,444				2,328,198
* MCKESSON EE STK FUND			42,745,604				1,048,378				37,027,256
											309,840,149
SSGA BOND INDEX			18,185,821				1,189,487				22,933,309
SSGA BALANCED			66,067,150				3,818,297				57,210,442
SSGA S&P 500 INDEX			124,026,575				7,881,656				101,200,460
											181,344,211
WELLNGTON MGMT SMCAP			34,024,373				2,453,894				23,704,612
DODGE & COX LARGE CAP VALUE FUND			79,450,575				5,994,730				62,105,401
RAINIER LG CAP GROWTH			10,592,538				1,056,468				6,592,358
											92,402,371
UNDERLYING SECURITIES OF BNY MELLON STABLE VALUE FUND:
Fidelity Management Trust Company (STIF) 100-31-TPMZ			13,949,367			1.00% interest rate					13,949,367
Natixis Financial Products, Inc. 975-25 (5 Year CMS-19)			2,007,269			2.12% interest rate					2,057,195
Mellon Stable Value Fund			608,248			3.73% interest rate					588,246
Bank of America, N.A. 03-051			16,405,367			4.81% interest rate					16,239,586
Metropolitan GAC 31937			2,510,137			4.44% interest rate					2,554,306
Natixis (formerly IXIS) Financial Products, Inc. WR 1075-01			19,759,588			4.75% interest rate					18,399,808
State Street Bank SSB1 107074			21,806,000			4.80% interest rate					20,341,694
State Street Bank SSB2 107075			13,169,024			4.88% interest rate					12,434,524
Pacific Life G-27306.01			41,801,172			3.98% interest rate					38,860,583
Rabobank Nederland MCK080301			7,981,060			4.13% interest rate					8,102,903
											133,528,212
FIDLEITY BROKERAGELINK			18,043,241				18,656,085				13,359,457
* FID DIVERSIFIED INTL			63,677,705				1,941,236				36,825,255
PIMCO TOT RETURN ADM			18,568,950				1,779,526				18,026,601
TMPL FOREIGN SM CO A			471,300				27,445				195,682
ABF BALANCED INV			929,139				71,367				620,182
ABF LARGE CAP VAL INV			3,461,198				173,064				1,962,542
ABF INTL EQUITY INV			424,096				21,057				218,998
MUTUAL GBL DISCOVERY A			4,482,030				159,935				3,500,968
BARON GROWTH			11,792,182				268,736				7,667,038
BARON ASSET FUND			1,262,291				22,459				716,008
UBS GLOBAL EQ Y			8,850				728				5,601
MSIF CAPITAL GRTH P			182,415				9,992				123,696
CALV NEWVIS SM CP A			69,518				4,381				41,356
CALVERT SIF BALNCD A			163,304				5,689				111,333
CALVERT SIF BOND A			491,565				31,810				445,340
CALVERT SIF:EQUITY A			21,787				679				14,543
CALVERT CAP ACC A			15,929				734				11,621
FMA SMALL COMPANY INV			847,036				45,324				505,368
LOOMIS SM CAP VAL R			808,281				32,061				470,331
ARIEL FUND			4,343,807				97,444				1,929,388
ARIEL APPRECIATION			3,011,050				77,831				1,494,355
NB CORE BOND INV			270,676				27,618				244,971
FKLN SMMIDCAP GRTH A			3,443,870				87,272				1,733,226
TEMPLETON FOREIGN A			9,086,890				1,016,187				4,156,207
MUTUAL SHARES CL A			4,089,032				174,600				2,390,276
MANAGERS SPECIAL EQ			126,511				1,856				50,438

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR)
MARCH 31, 2009

						Shares/Units/Interest
Investment/Fund Name		Cost Basis				Rate				Fair Value
MSI GLOBAL VAL EQ P			79,683				5,175				42,949
MSIF CP FX INC P			302,119				27,154				241,123
MSIF MIDCAP GRTH P			895,630				35,369				596,680
MSIF VALUE P			325,566				20,902				194,183
MSIF SM CO GRTH P			202,665				17,923				123,488
MSIF EMERGING MKTS P			2,293,756				88,227				1,151,362
NB GENESIS — INV CL			637,436				24,288				472,404
NB FOCUS TRUST			177,560				8,878				82,656
NB GENESIS — TR CL			14,988,222				322,279				8,998,033
NB PARTNERS TRUST			961,801				43,474				484,737
NB SOCIALLY RESP TR			466,444				30,034				310,251
OAKMARK SELECT I			2,302,707				74,141				1,110,631
OAKMARK FUND I			1,074,285				27,224				633,786
ALLNZ CCM CAP AP ADM			395,876				22,151				243,214
ALLNZ CCM MID CP ADM			580,592				24,529				356,166
PIM GLBBND AD UNHDGD			1,034,564				103,989				844,387
PIMCO HIGH YIELD ADM			1,417,568				157,210				1,031,297
PIMCO LOW DUR ADM			867,332				89,332				830,787
PIMCO LT US GOVT ADM			1,429,829				130,924				1,516,104
TEMPLETON DEV MKTS A			2,075,612				88,209				1,104,373
TEMPLETON GROWTH A			3,059,799				140,623				1,598,881
TMPL GLOBAL BOND A			6,872,464				612,534				6,786,882
TEMPLETON WORLD A			1,934,172				114,459				1,109,106
AIM CONSTELLATION A			181,845				6,622				101,387
CS LG CAP GRTH COM			47,196				3,007				33,343
CS MID CAP CORE COM			105,117				4,015				84,841
RS SMALL CAP GROWTH A			190,361				5,782				125,468
ARTISAN INTL			2,987,665				115,775				1,560,644
MSI INTL EQUITY P			249,005				16,688				157,703
NB GUARDIAN TRUST			339,510				28,026				196,745
DWS INTERNATIONAL S			143,154				2,527				76,493
DOMINI SOCIAL EQ INV			201,094				7,231				126,114
RAINIER SM/MID CAP			2,219,950				59,805				1,116,555
DWS GLOBAL OPPS S			273,074				6,860				135,891
AM CENT ULTRA INV			144,981				6,850				95,007
AIM GBL SM&MDCP GR A			499,488				23,143				238,369
MANAGERS BOND FUND			1,995,684				83,991				1,616,825
MGRS AMG ES LG CP GR			10,530				355				6,879
RS SMALLER CO GRTH A			135,775				6,701				68,081
TCW SELECT EQUITY N			286,129				16,829				169,295
CS LARGE CAP VALUE A			296,745				20,006				164,853
AIM BASIC VALUE A			186,425				6,371				76,323
LM VALUE TRUST FI CL			420,696				6,407				165,674
ARTISAN MID CAP INV			1,231,167				43,863				760,581
OAKMARK EQ & INC I			5,946,360				232,625				4,712,987
ROYCE LOW PR STK SER			1,596,346				105,037				887,562
WFA SMALL CAP VAL INV			729,424				25,409				433,473
VK GROWTH & INCOME A			1,227,367				63,443				772,736
LD ABBETT AFFILTD A			394,586				30,861				221,277
DWS STRATEGIC VAL A			789,157				18,436				373,325
VAN KAMPEN EQ INC A			846,584				101,487				601,819
AIM MIDCAP CORE EQ A			530,121				28,797				428,789
WEST ASSET CORE FI			230,641				22,678				195,259
BARON SMALL CAP			521,990				24,960				328,226
WFA C&B MDCP VAL INV			517,013				28,577				267,771
PIMCO REAL RTN BD AD			2,379,531				220,022				2,200,218
LMP AGGR GROWTH A			140,711				1,395				87,268
NB HIGH INC BOND INV			112,873				16,084				107,277
ALLNZ NFJ SMCPVAL AD			2,971,936				110,484				1,814,152

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR)
MARCH 31, 2009

						Shares/Units/Interest
Investment/Fund Name		Cost Basis				Rate				Fair Value
WFA SM CO VALUE ADM			135,514				9,494				55,823
RS PARTNERS A			358,958				11,442				195,423
ALL/BERN SMMDCPVAL A			144,801				10,579				91,188
COL/ACORN SELECT Z			2,437,177				94,612				1,292,397
COL CONS HIGH YLD Z			83,074				11,692				72,956
CRM MID CAP VAL INV			2,299,087				90,773				1,597,605
ABF SM CAP VAL INV			755,238				39,063				382,035
AM CEN LG CO VAL INV			63,659				9,786				35,622
NB INTL FUND TRUST			423,285				18,108				198,459
LMP LARGE CAP GRTH A			14,000				642				10,338
ROYCE TOT RETURN SER			467,741				38,011				288,880
AM CENT VISTA INV			595,457				32,707				348,325
ROYCE OPPORTUNITY S			567,593				48,607				230,884
LD ABBETT SMCP BLD A			193,612				13,688				130,033
WFA MIDCP DSCPLD INV			351,688				19,864				246,710
RS VALUE A			297,279				12,028				170,310
ROYCE VALUE PLUS SER			3,472,409				263,017				1,956,849
VIRTUS SM-CAP COR I			51,588				3,421				32,701
VIRTUS MID-CAP VAL A			646,254				26,962				335,413
NB REGENCY TRUST			49,152				4,030				26,234
LOOMIS GROWTH A			24,844				4,058				14,772
TOUCHSTN SC SEL GR Z			11,514				1,558				7,650
WA CORE PLUS BOND FI			174,947				17,435				147,847
HARTFORD GROWTH Y			181,520				10,593				115,890
HTFD INTL CAP GRTH Y			382,594				26,936				161,347
HTFD SM CAP GROWTH Y			2,091				86				1,364
* FID FIDELITY			2,679,276				90,175				1,869,329
* FID PURITAN			2,677,759				148,197				1,848,016
* FID TREND			319,185				6,544				246,333
* FID SEL COMPUTERS			61,427				1,691				45,430
* FID SEL ELECTRONICS			51,795				1,477				36,233
* FID SEL CONS STAPLES			1,002,512				17,539				802,053
* FID VALUE STRATEGIES			425,535				15,361				190,173
* FID GINNIE MAE			5,590,908				508,985				5,761,712
* FIDELITY MAGELLAN			64,823,362				677,523				30,237,872
* FID CONTRAFUND			14,495,591				232,527				9,842,867
* FID EQUITY INCOME			5,140,568				105,127				2,812,142
* FID GROWTH COMPANY			11,134,718				160,026				7,633,220
* FIDELITY INVST GR BD			1,154,996				161,933				1,031,512
* FID GROWTH & INCOME			47,609,551				1,441,684				16,709,122
* FID SEL SOFTWARE			434,909				6,867				332,365
* FID INTERMED BOND			7,652,343				754,962				6,907,904
* FID SEL AIR TRANSPRT			68,333				1,808				32,857
* FID CAPITAL & INCOME			5,873,579				724,566				4,021,340
* FID VALUE			9,469,161				135,414				4,621,667
* FID MORTGAGE SEC			225,633				20,939				211,483
* FID SEL GOLD			4,531,537				129,574				4,419,773
* FID SEL BIOTECH			850,184				13,273				763,488
* FID SEL ENERGY SVCS			3,916,148				49,469				1,752,203
* FID SEL INSURANCE			85,380				1,594				42,960
* FID SEL RETAILING			77,374				1,948				61,471
* FIDELITY US GOVT RES			9,937,451				9,937,451				9,937,451
* FIDELITY GOVT INCOME			7,029,574				666,554				7,265,435
* FIDELITY CASH RESRVE			24,566,662				24,566,662				24,566,662
* FID SEL ENERGY			6,459,318				124,169				3,531,354
* FID SEL LEISURE			138,614				1,898				95,979
* FID SEL HEALTHCARE			1,440,821				12,606				1,007,436
* FID SEL TECHNOLOGY			512,674				8,597				362,527
* FID SEL UTILITIES			596,704				10,810				383,862

McKESSON CORPORATION PROFIT-SHARING INVESTMENT PLAN

FORM 5500, SCHEDULE H, PART IV, LINE 4i SCHEDULE OF ASSETS (HELD AT END OF YEAR)
MARCH 31, 2009

						Shares/Units/Interest
Investment/Fund Name		Cost Basis				Rate				Fair Value
* FID SEL FINANCIAL			915,407				15,394				557,586
* FID SEL DEFENSE			1,598,830				20,866				856,152
* FID SEL BROKERAGE			614,405				9,892				278,846
* FID SEL CHEMICALS			1,547,588				20,436				995,844
* FID INDEPENDENCE			3,424,394				140,485				1,823,491
* FID OTC PORTFOLIO			685,818				16,990				494,569
* FID OVERSEAS			1,231,299				30,912				660,908
* FID SEL TELECOMM			186,734				4,483				130,499
* FID SEL HOME FINANCE			144,674				7,220				64,690
* FID LEVERAGED CO STK			8,399,156				295,513				3,750,063
* FID EUROPE			1,663,878				46,960				926,516
* FID PACIFIC BASIN			809,267				30,222				367,500
* FID REAL ESTATE INVS			7,324,062				268,975				2,703,196
* FID BALANCED			13,749,717				766,693				9,614,328
* FID INTL DISCOVERY			6,791,497				217,046				4,434,244
* FID CAP APPRECIATION			4,523,932				179,237				2,593,554
* FID CONVERTIBLE SEC			2,098,679				90,075				1,243,933
* FID CANADA			10,496,667				215,569				7,038,333
* FIDELITY TELECOM & UTIL			736,688				43,652				515,097
* FID BLUE CHIP GROWTH			29,052,135				687,502				17,173,788
* FID ASSET MANAGER 50%			8,536,355				543,451				5,749,713
* FID DISCIPLINED EQTY			1,008,939				37,091				573,792
* FIDELITY LOW PR STK			15,468,959				426,597				9,086,510
* FID WORLDWIDE			769,903				43,693				483,678
* FID EQUITY INCOME II			14,444,864				654,205				7,444,858
* FID STOCK SELECTOR			609,860				24,909				389,073
* FID ASSET MGR 70%			783,845				52,797				541,166
* FIDELITY EMERG MRKTS			7,100,230				306,214				3,852,178
* FID GR STRATEGIES			2,463,865				141,950				1,622,489
* FID ASSET MGR 20%			1,371,611				111,941				1,147,395
* FID DIVIDEND GROWTH			5,129,599				191,734				2,770,558
* FID NEW MARKETS INC			5,431,316				390,747				4,587,369
* FID EXP & MULTINATL			4,045,282				194,321				2,668,027
* FID FOCUSED STOCK			222,155				22,720				180,396
* FID GLOBAL BALANCED			856,622				40,818				623,285
* FID INTL CAP APPREC			791,558				54,791				371,485
* FID SM CAP INDEPEND			1,076,677				56,440				511,908
* FID MID CAP STOCK			8,098,807				322,204				4,758,946
* FID LARGE CAP STOCK			1,025,975				66,382				625,319
* FID GROWTH DISCOVERY			1,740,602				131,774				1,050,242
* FID SMALL CAP STOCK			3,575,752				213,218				1,995,720
* FID EUROPE CAP APP			1,546,766				64,254				761,404
* FIDELITY NORDIC			2,230,976				60,268				989,605
* FID ASSET MGR 85%			972,162				81,866				651,655
* FID LATIN AMERICA			10,666,072				241,870				6,825,564
* FID JAPAN			567,133				38,774				306,317
* FID SOUTHEAST ASIA			5,972,029				178,970				3,208,933
* FID CHINA REGION			4,268,365				171,530				2,921,156
* FID SEL IT SERVICES			53,775				3,659				41,676
* FID SEL MED EQ & SYS			1,291,112				54,688				1,010,081
* FID FOUR IN ONE IDX			870,267				34,190				612,334
* FID JAPAN SMALLER CO			609,410				52,262				299,463
* FID MEGA CAP STOCK			846,455				85,216				519,817
* FID STRATEGIC INCOME			3,691,786				358,933				3,155,019
* FID FREEDOM INCOME			690,198				64,722				606,444
* FID FREEDOM 2000			194,876				16,586				163,541
* FID FREEDOM 2010			11,420,299				817,238				8,066,141
* FID FREEDOM 2020			15,515,431				1,109,932				10,455,564
* FID FREEDOM 2030			9,217,885				649,478				5,825,818