Business Segment Information

The Company is organized based upon the products and services it provides to its customers. The Company's operations are comprised of the Pharmaceutical Distribution Services reportable segment and other operating segments that are not significant enough to require separate reportable segment disclosure and, therefore, have been included in Other for the purpose of reportable segment presentation. Other consists of operating segments that focus on global commercialization services and animal health (MWI Animal Health). The operating segments that focus on global commercialization services include AmerisourceBergen Consulting Services and World Courier.

The following illustrates reportable and operating segment revenue for the periods indicated:



	Three months ended December 31,
(in thousands)	2018			2017
Pharmaceutical Distribution Services	$	43,744,381		$	38,937,698
Other:
MWI Animal Health	954,584			958,572
Global Commercialization Services	716,354			586,379
Total Other	1,670,938			1,544,951
Intersegment eliminations	(22,867		)	(16,317		)
Revenue	$	45,392,452		$	40,466,332

Intersegment eliminations primarily represent the elimination of certain Pharmaceutical Distribution Services reportable segment sales to MWI.

The following illustrates reportable segment operating income for the periods indicated:



	Three months ended December 31,
(in thousands)	2018			2017
Pharmaceutical Distribution Services	$	373,207		$	388,182
Other	98,934			100,275
Intersegment eliminations	(307		)	(407		)
Total segment operating income	$	471,834		$	488,050

The following reconciles total segment operating income to income before income taxes for the periods indicated:



	Three months ended December 31,
(in thousands)	2018			2017
Total segment operating income	$	471,834		$	488,050
Gain from antitrust litigation settlements	87,279			—
LIFO credit	3,029			—
PharMEDium remediation costs	(20,495		)	—
New York State Opioid Stewardship Act	22,000			—
Acquisition-related intangibles amortization	(45,152		)	(39,056		)
Employee severance, litigation, and other	(40,672		)	(30,021		)
Operating income	477,823			418,973
Other loss	3,097			324
Interest expense, net	42,170			35,864
Loss on early retirement of debt	—			23,766
Income before income taxes	$	432,556		$	359,019

Segment operating income is evaluated by the chief operating decision maker ("CODM") of the Company before gain from antitrust litigation settlements; LIFO credit; PharMEDium remediation costs; New York State Opioid Stewardship Act; acquisition-related intangibles amortization; employee severance, litigation, and other; other loss; interest expense, net; and loss on early retirement of debt. All corporate office expenses are allocated to the reportable segment level.

After FDA inspections of PharMEDium's compounding facilities, the Company voluntarily suspended production activities in December 2017 at its largest compounding facility located in Memphis, Tennessee pending execution of certain remedial measures. The Company has been in communication with the FDA and the Consumer Protection Branch of the Civil Division of the DOJ regarding its ongoing compliance efforts at PharMEDium, and representatives of the Company and PharMEDium had an initial meeting with the DOJ and the FDA in November 2018 to discuss potential resolution of ongoing matters and whether a consent decree is necessary. Based on discussions to date, the Company believes that any resolution is likely to require the entry into a consent decree. The focus of ongoing negotiations relates to the scope of any such decree, including whether it will cover PharMEDium facilities other than the Memphis, Tennessee 503B outsourcing facility. Negotiations with FDA and DOJ have been impacted by the partial shutdown of the U.S. government. The Company cannot predict when the negotiations will be completed or the timing of any consent decree or other enforcement action. The Company incurred remediation costs primarily in connection with the suspended production activities. These remediation costs are primarily classified in Cost of Goods sold in the Consolidated Statements of Operations in the three months ended December 31, 2018. Future remediation costs will also include costs related to remediation activities responsive to FDA inspectional observations generally applicable to all of PharMEDium’s 503B outsourcing facilities, including product stability studies.