Segments of Business (Tables)

3 Months Ended

Jun. 30, 2021

Schedule of financial information relating to reportable operating segments and reconciliations to the condensed consolidated totals

Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals is as follows:


	Three Months Ended June 30,
(In millions)	2021		2020
Segment revenues (1)
U.S. Pharmaceutical	$	50,019	$	44,670
Prescription Technology Solutions	881		656
Medical-Surgical Solutions	2,528		1,801
International	9,246		8,552

Total revenues	$	62,674	$	55,679

Segment operating profit (2)
U.S. Pharmaceutical (3)	$	682	$	613
Prescription Technology Solutions	104		68
Medical-Surgical Solutions (4)	75		89
International	53		3

Subtotal	914		773
Corporate expenses, net (5)	(303)		(68)
Interest expense	(49)		(60)
Income from continuing operations before income taxes	$	562	$	645

(1)Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, approximately 35% of the RxTS segment’s total revenues, less than 2% of the Medical-Surgical Solutions segment’s total revenues, and approximately 7% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are domestic.

(2)Segment operating profit includes gross profit, net of total operating expenses, as well as other income, net, for the Company’s reportable segments.

(3)The Company’s U.S. Pharmaceutical segment’s operating profit for the three months ended June 30, 2021 and 2020 includes $23 million and $52 million, respectively, of credits related to the last-in, first-out (“LIFO”) method of accounting for inventories.

(4)The Company’s Medical-Surgical Solutions segment’s operating profit for the three months ended June 30, 2021 includes inventory charges totaling $164 million on certain personal protective equipment and other related products.

(5)Corporate expenses, net for the three months ended June 30, 2021 includes charges of $74 million related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities." Corporate expenses, net for the three months ended June 30, 2020 includes a net gain of $131 million recorded in connection with insurance proceeds received during the first quarter of 2021 from the settlement of the shareholder derivative action related to the Company’s controlled substances monitoring program.