Segments of Business (Tables)

6 Months Ended

Sep. 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 September 30,				Six Months Ended September 30,
(In millions)	2021		2020		2021		2020
Segment revenues (1)
U.S. Pharmaceutical	$	53,411	$	48,067	$	103,430	$	92,737
Prescription Technology Solutions	932		668		1,813		1,324
Medical-Surgical Solutions	3,124		2,533		5,652		4,334
International	9,109		9,540		18,355		18,092

Total revenues	$	66,576	$	60,808	$	129,250	$	116,487

Segment operating profit (loss) (2)
U.S. Pharmaceutical (3)	$	760	$	623	$	1,442	$	1,236
Prescription Technology Solutions	128		88		232		156
Medical-Surgical Solutions (4)	296		187		371		276
International (5)	(146)		(45)		(93)		(42)

Subtotal	1,038		853		1,952		1,626
Corporate expenses, net (6)	(360)		(148)		(663)		(216)
Loss on debt extinguishment (7)	(191)		—		(191)		—
Interest expense	(45)		(50)		(94)		(110)
Income from continuing operations before income taxes	$	442	$	655	$	1,004	$	1,300

(1)Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 40% of the RxTS segment’s total revenues, less than 3% of the Medical-Surgical Solutions segment’s total revenues, and less than 8% 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 (loss) 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 and six months ended September 30, 2021 includes $23 million and $46 million, respectively, and for the three and six months ended September 30, 2020 includes $52 million and $104 million, respectively, of credits related to the last-in, first-out (“LIFO”) method of accounting for inventories. The three and six months ended September 30, 2021 includes $34 million and $46 million, respectively, of cash receipts for the Company’s share of antitrust legal settlements. The three and six months ended September 30, 2020 also includes a charge of $50 million recorded in connection with the Company’s estimated liability under the State of New York’s Opioid Stewardship Act, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.”

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

(5)The Company’s International segment’s operating loss for the three and six months ended September 30, 2021 includes charges of $342 million to remeasure assets and liabilities of the E.U. disposal group to the lower of carrying value or fair value less costs to sell and to impair certain assets, including internal-use software that will not be utilized in the future, as discussed in more detail in Financial Note 2, “Held for Sale.” The three and six months ended September 30, 2021 includes a gain of $59 million related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. Operating loss for the three and six months ended September 30, 2020 includes restructuring, impairment, and related charges of $35 million and $58 million, respectively, primarily associated with the closure of retail pharmacy stores within the U.K. business, as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges,” and a goodwill impairment charge of $69 million related to one of the Company’s reporting units in Europe, as discussed in more detail in Financial Note 7, “Goodwill and Intangible Assets, Net.”

(6)Corporate expenses, net for the three and six months ended September 30, 2021 includes charges of $149 million primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in more detail in Financial Note 2, “Held for Sale.” Corporate expenses, net for the three and six months ended September 30, 2021 includes charges of $112 million and $186 million, respectively, related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” The three and six months ended September 30, 2021 includes $36 million and $71 million, respectively, and the three and six months ended September 30, 2020 includes $41 million and $84 million, respectively, of opioid-related costs, primarily litigation expenses. Corporate expenses, net for the six months ended September 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. Corporate expenses, net, for the three and six months ended September 30, 2021 includes $97 million and $104 million, respectively, and for the three and six months ended September 30, 2020 includes $49 million and $59 million, respectively, of net gains associated with certain of the Company’s equity investments.

(7)Loss on debt extinguishment for the three and six months ended September 30, 2021 consists of a charge of $191 million on debt extinguishment related to the Company’s July 2021 tender offer to redeem a portion of its existing debt, as discussed in more detail in Financial Note 8, “Debt and Financing Activities.”