XML 69 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
6 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
We report our operations in two operating segments: McKesson Distribution Solutions and McKesson Technology Solutions. The factors for determining the reportable segments included the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments on a number of measures, including operating profit before interest expense, income taxes and results from discontinued operations.
Financial information relating to our reportable operating segments and reconciliations to the condensed consolidated totals is as follows:
 
Quarter Ended September 30,
 
Six Months Ended September 30,
(In millions)
2014
 
2013
 
2014
 
2013
Revenues
 
 
 
 
 
 
 
Distribution Solutions (1)
 
 
 
 
 
 
 
North America pharmaceutical distribution and services
$
35,148

 
$
30,702

 
$
69,452

 
$
60,748

International pharmaceutical distribution and services
7,312

 

 
14,919

 

Medical-Surgical distribution & services
1,528

 
1,467

 
2,907

 
2,824

Total Distribution Solutions
43,988

 
32,169

 
87,278

 
63,572

 
 
 
 
 
 
 
 
Technology Solutions - products and services
770

 
816

 
1,538

 
1,652

Total Revenues
$
44,758

 
$
32,985

 
$
88,816

 
$
65,224

 
 
 
 
 
 
 
 
Operating profit
 
 
 
 
 
 
 
Distribution Solutions (2) (3)
$
793

 
$
685

 
$
1,541

 
$
1,304

Technology Solutions (4)
125

 
120

 
193

 
247

Total
918

 
805

 
1,734

 
1,551

Corporate Expenses, Net (5)
(106
)
 
(110
)
 
(214
)
 
(195
)
Interest Expense
(99
)
 
(59
)
 
(200
)
 
(118
)
Income from Continuing Operations Before Income Taxes
$
713

 
$
636

 
$
1,320

 
$
1,238

(1)
Revenues derived from services represent less than 2% of this segment’s total revenues.
(2)
Operating profit for the second quarter and first six months of 2014 includes AWP litigation charges of $35 million and $50 million, which were recorded in operating expenses.
(3)
Operating profit for the second quarter and first six months of 2015 includes last-in-first-out (“LIFO”) inventory charges of $94 million and $192 million. 2014 operating profit includes LIFO inventory charges of $44 million. The charges were all recorded in cost of sales.
(4)
Operating profit for the first six months of 2015 includes a charge of $34 million related to the retained workforce business within our International Technology business.
(5)
Corporate expenses, net, include $3 million and $10 million of acquisition-related expenses for the second quarter and first six months of 2015, and $1 million for the second quarter and first six months of 2014.