EXHIBIT 99.4 File No. 001-13252 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the plan year ended March 31, 1999 OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) 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: McKesson HBOC, Inc. Profit Sharing Investment Plan, formerly the HBO & Company Profit Sharing and Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: McKesson HBOC, Inc. McKesson Plaza One Post Street San Francisco, CA 94104 (415) 983-8300 HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Financial Statements with Supplementary Schedules March 31, 1999 and December 31, 1998 Independent Auditors' Report ---------------------------- Administrative Committee HBO & Company Profit Sharing and Savings Plan We have audited the accompanying statement of net assets available for benefits of HBO & Company Profit Sharing and Savings Plan as of March 31, 1999, and the related statement of changes in net assets available for benefits for the three months then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audit. The statement of net assets available for benefits as of December 31, 1998 was audited by Snyder, Camp, Stewart & Co., LLP, who merged with Crisp Hughes Evans LLP in June 1999, and whose report dated June 7, 1999 expressed an unqualified opinion on those statements. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of HBO & Company Profit Sharing and Savings Plan as of March 31, 1999, and the changes in net assets available for benefits for the three months then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Securities and Exchange Commission and the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Atlanta, Georgia October 8, 1999 HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Statements of Net Assets Available for Benefits March 31, 1999 and December 31, 1998 March 31, December 31, 1999 1998 ------------ ------------ Assets: Investments, at fair value: HBO & Company Common Stock Fund $ - $ 87,974,789 McKesson HBOC, Inc. Common Stock Fund 73,157,676 - Fidelity Magellan Fund 53,687,858 47,569,294 Fidelity Growth and Income Fund 53,756,909 49,911,771 Fidelity Retirement Money Market Fund 10,379,420 9,838,027 Fidelity Asset Manager Fund 7,344,403 7,078,608 Fidelity Managed Income Fund 3,099,562 2,917,735 Fidelity Intermediate Bond Fund 4,038,081 3,781,383 Fidelity International Growth and Income Fund 2,668,437 2,778,598 Fidelity Blue Chip Growth Fund 22,898,342 19,543,406 Fidelity Equity Income II Fund 12,793,647 11,525,386 Janus Balanced Fund 2,119,500 936,587 Templeton Foreign A Fund 1,196,080 835,527 ------------ ------------ Total investments 247,139,915 244,691,111 Contributions receivable from employer 1,652,030 562,078 Contributions receivable from participants 2,303,798 1,276,770 Loans receivable from participants 3,167,430 3,066,897 Accrued investment income 67,762 61,332 ------------ ------------ Total assets 254,330,935 249,658,188 Liabilities - - ------------ ------------ Net assets available for benefits $254,330,935 $249,658,188 ============ ============ See accompanying notes to financial statements. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits For the Three Months Ended March 31, 1999 Additions to net assets attributed to: Investment income $ 562,336 Unrealized depreciation in fair value of investments (9,500,069) Realized gain on sale of investments 2,641,331 ------------ Net decrease from investment activities (6,296,402) Contributions: Employer 3,205,294 Participants 11,593,734 Interest income on loans to participants 61,816 ------------ Total additions 8,564,442 Deductions from net assets attributed to: Benefits paid directly to participants (3,887,720) Administrative fees (3,975) ------------ Net increase 4,672,747 Net assets available for benefits: Beginning of period 249,658,188 ------------ End of period $254,330,935 ============ See accompanying notes to financial statements. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements March 31, 1999 and December 31, 1998 (1) Description of Plan ------------------- The following description of HBO & Company Profit Sharing and Savings Plan (the "Plan") provides only general information. The Plan document should be referred to for a more complete description of the Plan's provisions. The Plan is a defined contribution plan which covers all employees of HBO & Company and HBO & Company of Georgia (jointly referred to herein as the "Company") who have completed six months of service (12 months for pre-1995 plan years) and have attained age 21 as of a Plan entry date. The Plan's entry dates are January 1, April 1, July 1, and October 1. Each eligible employee can elect to defer a percentage of pretax compensation, as defined, of from one to a maximum of fifteen percent and may contribute such amounts to the Plan. Such deferral elections must be made in whole percentages. If necessary, the salary deferral contributions allowed by a participant will be reduced by the Plan's Administrative Committee so that such contributions do not cause the Plan to be discriminatory or exceed the limitations of the Internal Revenue Code. The Company may also contribute to the Plan at the election of the Board of Directors through matching contributions and/or discretionary contributions. Each participant's share of Company discretionary contributions is related to the participant's compensation, as defined. Company contributions may not exceed the maximum allowable as a deduction as defined by the Internal Revenue Code. During 1999, the Company contributed $.75 for each $1 contributed by employees; however, this Company matching contribution was only applicable for employee contributions of up to 4% of pretax compensation. No Company discretionary contributions were authorized for the three months ended March 31, 1999. Participants are 100% vested in their pretax compensation contributions and earnings thereon at all times. Company matching and discretionary contributions credited to a participant's account and earnings thereon vest on a graded basis. A participant becomes 20% vested in his/her Company account after one year of service and an additional 20% becomes vested in each of the following four years until a participant fully vests after five years of service (effective January 1, 1995). Prior to January 1, 1995, a participant became 20% vested in his/her Company account after three years of service and an additional 20% vested in each of the following four years until a participant fully vests after seven years of service. Further, a participant is automatically 100% vested without regard to years of service in the event of termination due to death, disability, or attainment of age 65. Allocation of Plan earnings/losses is based on a participant's account balance in the respective fund. Forfeitures of terminated participants' nonvested accounts are allocated among the remaining Plan participants at the end of the Plan year as if the forfeitures are additional matching contributions, as designated by the Administrative Committee. At March 31, 1999, forfeited nonvested accounts amounted to $1,501,878. These accounts may be used to reduce future employer contributions. Participants have the option to direct the investment of their accounts among eleven investment funds: the Fidelity Retirement Money Market Fund, the Fidelity Managed Income Fund, the Fidelity Intermediate Bond Fund, the Fidelity Growth and Income Fund, the Fidelity Magellan Fund, the Fidelity Asset Manager Fund, the Fidelity Blue Chip Growth Fund, the Fidelity Equity Income II Fund , the Janus Balanced Fund, the Templeton Foreign A Fund, and the McKesson HBOC, Inc. Common Stock Fund. On July 1, 1998 contributions to the Fidelity International Growth and Income Fund were discontinued. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued March 31, 1999 and December 31, 1998 (1) Description of Plan, Continued ------------------------------ Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range up to 5 years, except that loan terms for the purchase of a primary residence are at the discretion of the Administrative Committee. The loans are secured by the balance in the participant's account and bear interest at a rate determined by the Administrative Committee. Principal and interest is paid ratably through monthly payroll deductions. Upon termination, participants under age 65 with account balances totaling more than $5,000 may elect to (1) delay the distribution of accounts or (2) receive vested benefits generally in a lump sum distribution. The full value of benefits (regardless of amount) are payable upon normal or postponed retirement or to beneficiaries upon death of the participant. Participants with balances totaling less than $5,000 or on total or permanent disability receive a lump sum distribution of vested benefits. Under a provision of the Plan, the Company, through actions of its Board of Directors, reserves the right to terminate the Plan. If the Plan is terminated, each participant becomes fully vested as of the termination date. (2) Summary of Significant Accounting Policies ------------------------------------------ The accounting records of the Plan are maintained on the accrual basis. Common stock and investment funds held for investment by the Plan are stated at quoted market values from independent published sources. Loans receivable from participants are stated at cost which approximates fair value. The change in the difference between current value and the cost of the investments is reflected in the statement of changes in net assets available for benefits as unrealized appreciation (depreciation) in fair value of investments. Realized gain (loss) on sale of investments is the difference between the proceeds received and the average cost of investments sold. Benefits are recorded when paid. The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. (3) Administration -------------- The Company's Employee Benefits Administrative Committee (the "Administrative Committee") is the Plan administrator. Fidelity Management Trust Company is the Trustee, with custodial responsibility for the Plan's assets. The Plan is liable for all administrative expenses not paid by the Company. At the direction of the Administrative Committee, the Plan's administrative expenses for the three months ended March 31, 1999, except for certain investment fees, were paid by the Company. (4) Income Tax Status ----------------- The Plan is intended to be qualified under the Internal Revenue Code (the "IRC"). A favorable ruling was obtained from the IRS as to the tax-exempt status of the Plan in May 1997. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued March 31, 1999 and December 31, 1998 (5) Transactions with Parties-In-Interest ------------------------------------- During the three months ended March 31, 1999, the Plan purchased 19,516 shares of the Common Stock of HBO & Company, the Plan Sponsor, for $610,675, and sold 25,019 shares of the Common Stock of HBO & Company for $779,456 in accordance with the terms of the Plan. During the three months ended March 31, 1999, the Plan purchased 51,372 shares of the Common Stock of McKesson HBOC, Inc., the Plan sponsor subsequent to the merger of HBO & Company and McKesson Corporation, for $3,389,196, and sold 75,530 shares of the Common Stock of McKesson HBOC, Inc. for $4,984,525 in accordance with the terms of the Plan. In January, 1999, in conjunction with the merger of HBO & Company and McKesson Corporation, 3,061,102 shares of the Common Stock of HBO & Company, valued at $94,128,887 were exchanged for 1,132,608 shares of the Common Stock of McKesson HBOC, Inc. (6) Investments ----------- During the three months ended March 31, 1999, the Plan's investments (including investments bought and sold as well as held during the year) appreciated (depreciated) in fair value as follows: Net Appreciation (Depreciation) Fair Value in Fair Value at End During Period of Period ------------- --------- Three months ended March 31, 1999: Fair value as determined by quoted market price: HBO & Company Common Stock Fund $ 6,322,879 - McKesson HBOC, Inc. Common Stock Fund (19,375,882) 73,157,676 Fidelity Magellan Fund 3,609,244 53,687,858 Fidelity Growth and Income Fund 912,505 53,756,909 Fidelity Retirement Money Market Fund - 10,379,420 Fidelity Asset Manager Fund 62,600 7,344,403 Fidelity Managed Income Fund - 3,099,562 Fidelity Intermediate Bond Fund (41,367) 4,038,081 Fidelity International Growth and Income Fund 83,441 2,668,437 Fidelity Blue Chip Growth Fund 1,180,864 22,898,342 Fidelity Equity Income II Fund 220,709 12,793,647 Janus Balanced Fund 97,636 2,119,500 Templeton Foreign A Fund 68,633 1,196,080 ------------ ----------- $ (6,858,738) 247,139,915 ============ =========== The current value of the McKesson HBOC, Inc. Common Stock Fund, Fidelity Magellan Fund, Fidelity Growth and Income Fund, Fidelity Blue Chip Growth Fund, and Fidelity Equity Income II Fund held for investment at March 31, 1999 was $73,157,676, $53,687,858, $53,756,909, $22,898,342 and $12,793,647, respectively, each of which represented an investment greater than 5% of the Plan's net assets. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued March 31, 1999 and December 31, 1998 (6) Investments, Continued ---------------------- The current value of the HBO & Company Common Stock Fund, Fidelity Magellan Fund, Fidelity Growth and Income Fund and Fidelity Blue Chip Growth Fund held for investment at December 31, 1998 was $87,974,789, $47,569,294, $49,911,771, and $19,543,406, respectively, each of which represented an investment greater than 5% of the Plan's net assets. The realized gain on the sale of investments during the three months ended March 31, 1999 was determined as follows: Aggregate proceeds $ 106,788,079 Aggregate cost (104,146,748) -------------- Realized gain $ 2,641,331 ============== During the three months ended March 31, 1999, the balance of unrealized appreciation (depreciation) in the fair value of investments changed as follows: Balance, December 31, 1998 $ 86,568,174 Current unrealized depreciation of investments, net of realized gains (losses) (9,500,069) --------------- Balance, March 31, 1999 $ 77,068,105 =============== (7) Sale of Company and Merger of Plan ---------------------------------- In January, 1999 the Company merged with McKesson Corporation and a decision was made to merge the profit sharing plans of both Companies. The plans were merged effective April 1, 1999 forming the McKesson HBOC, Inc. Profit Sharing Investment Plan. In conjunction with the merger, several amendments were made to Plan provisions, including a change to Company matching contributions consisting entirely of Company common stock and a change in Plan eligibility requirements. (8) Excess Contributions -------------------- Excess deferral contributions were made during the short plan year ended March 31, 1999. These contributions, totaling $1,374,038, will be distributed during the next plan year as benefit distributions to certain active participants as required to satisfy the relevant nondiscrimination provisions of the Plan. (9) Subsequent Event ---------------- Subsequent to March 31, 1999, the Plan's investment in the common stock of McKesson HBOC, Inc. had a significant decline in market value. (10) Investment Funds ---------------- The Plan provides for separate investment funds for participants as described in note 1 to the financial statements. The following pages summarize the net assets available for benefits for each fund as of March 31, 1999 and December 31, 1998 and the changes in net assets available for benefits for each fund for the three months ended March 31, 1999. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Net Assets Available for Benefits by Investment Program HBO & McKesson Fidelity Fidelity Fidelity Fidelity Company HBOC Fidelity Growth & Retirement Asset Managed Common Common Magellan Income Money Mkt Manager Income Stock Stock Fund Fund Fund Fund Fund ----- ----- ---- ---- ---- ---- ---- March 31, 1999 - -------------- Assets: Investments at fair value $ - 73,157,676 53,687,858 53,756,909 10,379,420 7,344,403 3,099,562 Contributions receivable from employer company - 1,652,030 - - - - - Contributions receivable from participants - 370,249 440,105 459,259 112,937 77,930 24,887 Loans receivable from participants - 39,952 680,485 1,095,142 542,666 351,909 126,797 Accrued investment income - 67,762 - - - - - ----------- ---------- ---------- ---------- ---------- --------- --------- Total assets - 75,287,669 54,808,448 55,311,310 11,035,023 7,774,242 3,251,246 ----------- ---------- ---------- ---------- ---------- --------- --------- Liabilities - - - - - - - ----------- ---------- ---------- ---------- ---------- --------- --------- Net assets available for benefits $ - 75,287,669 54,808,448 55,311,310 11,035,023 7,774,242 3,251,246 =========== ========== ========== ========== ========== ========= ========= December 31, 1998 - ----------------- Assets: Investments at fair value $87,974,789 - 47,569,294 49,911,771 9,838,027 7,078,608 2,917,735 Contributions receivable from employer company 119,012 - 102,362 109,905 39,204 20,254 8,715 Contributions receivable from participants 251,273 - 231,916 260,624 67,797 50,755 18,958 Loans receivable from participants 69,831 - 610,242 1,088,987 618,142 334,402 110,641 Accrued investment income 61,332 - - - - - - ----------- ---------- ---------- ---------- ---------- --------- --------- Total Assets 88,476,237 - 48,513,814 51,371,287 10,563,170 7,484,019 3,056,049 ----------- ---------- ---------- ---------- ---------- --------- --------- Liabilities - - - - - - - ----------- ---------- ---------- ---------- ---------- --------- --------- Net assets available for benefits $88,476,237 - 48,513,814 51,371,287 10,563,170 7,484,019 3,056,049 =========== ========== ========== ========== ========== ========= ========= Fidelity Fidelity Int'l Fidelity Fidelity Intermediate Growth Blue Chip Equity Janus Templeton Bond & Income Growth Income II Balanced Foreign A Fund Fund Fund Fund Fund Fund Total ---- ---- ---- ---- ---- ---- ----- March 31, 1999 - -------------- Assets: Investments at fair value 4,038,081 2,668,437 22,898,342 12,793,647 2,119,500 1,196,080 247,139,915 Contributions receivable from employer company - - - - - - 1,652,030 Contributions receivable from participants 61,846 - 417,188 177,372 95,977 66,048 2,303,798 Loans receivable from participants 179,879 7,478 72,983 83,147 4,287 (17,295) 3,167,430 Accrued investment income - - - - - - 67,762 --------- --------- ---------- ---------- --------- --------- ----------- Total assets 4,279,806 2,675,915 23,388,513 13,054,166 2,219,764 1,244,833 254,330,935 --------- --------- ---------- ---------- --------- --------- ----------- Liabilities - - - - - - - --------- --------- ---------- ---------- --------- --------- ----------- Net assets available for benefits 4,279,806 2,675,915 23,388,513 13,054,166 2,219,764 1,244,833 254,330,935 ========= ========= ========== ========== ========= ========= =========== December 31, 1998 - ----------------- Assets: Investments at fair value 3,781,383 2,778,598 19,543,406 11,525,386 936,587 835,527 244,691,111 Contributions receivable from employer company 15,431 - 79,572 42,392 10,492 14,739 562,078 Contributions receivable from participants 37,268 - 193,394 103,118 27,427 34,240 1,276,770 Loans receivable from participants 156,559 6,411 34,652 56,171 (18,019) (1,122) 3,066,897 Accrued investment income - - - - - - 61,332 --------- --------- ---------- ---------- --------- --------- ----------- Total Assets 3,990,641 2,785,009 19,851,024 11,727,067 956,487 883,384 249,658,188 --------- --------- ---------- ---------- --------- --------- ----------- Liabilities - - - - - - - --------- --------- ---------- ---------- --------- --------- ----------- Net assets available for benefits 3,990,641 2,785,009 19,851,024 11,727,067 956,487 883,384 249,658,188 ========= ========= ========== ========== ========= ========= =========== HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Changes in Net Assets Available for Benefits by Investment Program For the Three Months Ended March 31, 1999 Fidelity HBO & McKesson Fidelity Fidelity Retirement Fidelity Fidelity Company HBOC Magellan Growth & Money Mkt. Asset Managed Common Stock Common Stock Fund Income Fund Fund Manager Fund Income Fund ------------ ------------ ------------ ------------ ------------ ------------ ------------ Additions to net assets attributed to: Investment income $ (19) 67,762 - 101,624 119,129 62,028 40,250 Unrealized appreciation (depreciation) in fair value of investments 5,947,303 (20,683,662) 3,272,691 506,006 - 48,228 - Realized gain (loss) on sale of investments 375,576 1,307,780 336,553 406,499 - 14,372 - ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) from investment activities 6,322,860 (19,308,120) 3,609,244 1,014,129 119,129 124,628 40,250 Contributions: Employer - 1,951,964 291,361 309,570 116,755 55,105 20,640 Participants 136,841 2,141,551 2,094,232 2,272,853 560,660 406,766 122,784 Interest income on loans to participants 6,202 11,778 11,846 12,197 4,792 1,831 436 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total additions 6,465,903 (15,202,827) 6,006,683 3,608,749 801,336 588,330 184,110 Deductions from net assets attributed to: Benefits expense (321,122) (1,086,216) (627,491) (807,421) (240,369) (123,572) (119,036) Administrative expense - - (825) (1,050) (525) (150) (75) Interfund transfers (94,621,018) 91,576,712 916,267 1,139,745 (88,589) (174,385) 130,198 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (88,476,237) 75,287,669 6,294,634 3,940,023 471,853 290,223 195,197 Net assets available for benefits: Beginning of period 88,476,237 - 48,513,814 51,371,287 10,563,170 7,484,019 3,056,049 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of period $ - 75,287,669 54,808,448 55,311,310 11,035,023 7,774,242 3,251,246 ============ ============ ============ ============ ============ ============ ============ Fidelity Fidelity Fidelity Fidelity Int'l Fidelity Equity Janus Templeton Intermediate Growth & Blue Chip Income II Balanced Foreign A Bond Fund Income Fund Growth Fund Fund Fund Fund Total ------------ ------------ ------------ ------------ ------------ ------------ ------------ Additions to net assets attributed to: Investment income 56,681 - - 105,865 9,016 - 562,336 Unrealized appreciation (depreciation) in fair value of investments (41,850) 70,243 1,047,542 171,183 91,163 71,084 (9,500,069) Realized gain (loss) on sale of investments 483 13,198 133,322 49,526 6,473 (2,451) 2,641,331 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) from investment activities 15,314 83,441 1,180,864 326,574 106,652 68,633 (6,296,402) Contributions: Employer 37,368 - 233,583 107,199 34,983 46,766 3,205,294 Participants 335,639 3,471 1,890,904 925,600 414,542 287,891 11,593,734 Interest income on loans to participants 1,929 - 6,379 2,753 625 1,048 61,816 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total additions 390,250 86,912 3,311,730 1,362,126 556,802 404,338 8,564,442 Deductions from net assets attributed to: Benefits expense (52,575) (65,836) (332,124) (91,984) (9,473) (10,501) (3,887,720) Administrative expense (225) - (450) (600) - (75) (3,975) Interfund transfers (48,285) (130,170) 558,333 57,557 715,948 (32,313) - ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) 289,165 (109,094) 3,537,489 1,327,099 1,263,277 361,449 4,672,747 Net assets available for benefits: Beginning of period 3,990,641 2,785,009 19,851,024 11,727,067 956,487 883,384 249,658,188 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of period 4,279,806 2,675,915 23,388,513 13,054,166 2,219,764 1,244,833 254,330,935 ============ ============ ============ ============ ============ ============ ============ SUPPLEMENTARY INFORMATION HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN FEI # 37-0986839 - Plan #001 Item 27a - Schedule of Assets Held for Investment Purposes March 31, 1999 -------------- (a) Identity of (e) Current Party Involved (b) Identity of Issue (c) Description (d) Cost Value -------------- ----------------- ----------- ---- ----- Fidelity Investments Shares - -------------------- ------ Fidelity Magellan Fund 413,779 $ 35,287,642 53,687,858 Fidelity Growth & Income Fund 1,152,592 37,070,827 53,756,909 Fidelity Retirement Money Market Fund 10,379,420 10,379,420 10,379,420 Fidelity Asset Manager Fund 418,723 7,125,451 7,344,403 Fidelity Managed Income Fund 3,099,562 3,099,562 3,099,562 Fidelity Intermediate Bond Fund 397,449 4,052,677 4,038,081 Fidelity International Growth & Income Fund 123,768 2,475,548 2,668,437 Fidelity Blue Chip Growth Fund 429,854 17,062,828 22,898,342 Fidelity Equity Income II Fund 418,914 11,153,482 12,793,647 Janus Investments Shares - ----------------- ------ Janus Janus Balanced Fund 101,073 1,929,345 2,119,500 Templeton Investments Shares - --------------------- ------ Templeton Templeton Foreign A Fund 134,240 1,159,366 1,196,080 ------------ ------------ 130,796,148 173,982,239 Company Stock Fund Shares - ------------------ ------ * McKesson HBOC, Inc. Common Stock 1,108,450 39,275,662 73,157,676 Interest -------- Participant Loans Participant Loans 7-13% - 3,167,430 - ----------------- ------------ ------------ Total investments held $170,071,810 250,307,345 ============ ============ * Party in interest. * See independent auditors' report. Consent of Independent Auditors We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-39034) pertaining to the HBO & Company Profit Sharing and Savings Plan of our report dated October 8, 1999, with respect to the financial statements and schedules of the HBO & Company Profit Sharing and Savings Plan included in this Annual Report (Form 11-K) for the three months ended March 31, 1999. Atlanta, Georgia October 11, 1999 SIGNATURES ---------- THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. McKesson HBOC, Inc. Profit Sharing Investment Plan By: /s/ Ivan D. Meyerson ------------------------ Ivan D. Meyerson DATE: October 12, 1999