
	Three Months Ended December 31,				Nine Months Ended December 31,
(In millions)	2022		2021		2022		2021
Segment revenues (1)
U.S. Pharmaceutical	$	61,934	$	55,041	$	178,940	$	158,471
Prescription Technology Solutions	1,121		1,031		3,205		2,844
Medical-Surgical Solutions	2,986		3,082		8,421		8,734
International	4,449		9,460		17,235		27,815
Total revenues	$	70,490	$	68,614	$	207,801	$	197,864

Segment operating profit (loss) (2)
U.S. Pharmaceutical (3)	$	850	$	744	$	2,442	$	2,186
Prescription Technology Solutions	136		129		400		361
Medical-Surgical Solutions (4)	328		308		883		679
International (5)	136		(668)		93		(761)
Subtotal	1,450		513		3,818		2,465
Corporate expenses, net (6)	67		(195)		49		(858)
Loss on debt extinguishment (7)	—		—		—		(191)
Interest expense	(69)		(41)		(169)		(135)
Income from continuing operations before income taxes	$	1,448	$	277	$	3,698	$	1,281

(1)Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 36% 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 derived in the U.S.

•cash receipts for the Company’s share of antitrust legal settlements of $129 million for the three and nine months ended December 31, 2022 and $46 million for the nine months ended December 31, 2021;

•a charge of $5 million and a credit of $33 million related to the last-in, first-out (“LIFO”) method of accounting for inventories for the three months ended December 31, 2022 and 2021, respectively, and credits of $31 million and $79 million for the nine months ended December 31, 2022 and 2021, respectively; and

•a gain of $142 million for the nine months ended December 31, 2022 related to the exit of one of the Company’s investments in equity securities in July 2022 for proceeds of $179 million, which is reflected within “Other income, net” in the Company’s Condensed Consolidated Statements of Operations.

(4)The Company’s Medical-Surgical Solutions segment’s operating profit for the nine months ended December 31, 2021 includes $164 million of inventory charges on certain personal protective equipment and other related products.

•charges of $3 million and $240 million for the three and nine months ended December 31, 2022, respectively, and charges of $58 million and $400 million for the three and nine months ended December 31, 2021, respectively, to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell and, in fiscal 2022, 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, “Business Acquisitions and Divestitures;”

•charges of $787 million for the three and nine months ended December 31, 2021 to remeasure the assets and liabilities of the U.K. disposal group to fair value less costs to sell, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures;” and

•a gain of $59 million for the nine months ended December 31, 2021 related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business.

•credits of $34 million and $306 million for the three and nine months ended December 31, 2022, respectively, and credits of $32 million and charges of $117 million for the three and nine months ended December 31, 2021, respectively, 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, “Business Acquisitions and Divestitures;”

•a gain of $126 million for the three and nine months ended December 31, 2022 related to a cash payment received for the early termination of a tax receivable agreement (“TRA”) exercised by Change Healthcare Inc. (“Change”) in October 2022 and was recorded within “Other income, net” in the Condensed Consolidated Statements of Operations. The Company was a party to a TRA entered into as part of the formation of the joint venture with Change, from which McKesson has since exited. The TRA generally required Change to pay McKesson 85% of the net cash tax savings realized, or deemed to be realized, by Change resulting from the amortization allocated to Change by the joint venture. In October 2022, Change exercised its right pursuant to the TRA to terminate the agreement;

•a gain of $97 million for the three and nine months ended December 31, 2022 from the termination of fixed interest rate swaps accounted for as cash flow hedges, as discussed in more detail in Financial Note 10, “Hedging Activities;”

•charges of $193 million for the nine months ended December 31, 2021, related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities;”

•charges of $9 million and $33 million for the three months ended December 31, 2022 and 2021, respectively, and charges of $37 million and $104 million for the nine months ended December 31, 2022 and 2021, respectively, of opioid-related costs, primarily litigation expenses;

•restructuring charges of $90 million for the nine months ended December 31, 2021 primarily due to the transition to a partial remote work model for certain employees; and

•net losses of $24 million and net gains of $104 million for the nine months ended December 31, 2022 and 2021, respectively, associated with certain of the Company’s equity investments.

(7)Loss on debt extinguishment for the nine months ended December 31, 2021 consists of a charge of $191 million 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.”