Segment Information

6 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

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)	2012			2011			2012			2011
Revenues
Distribution Solutions (1)
Direct distribution & services	$	20,938		$	21,072		$	42,239		$	41,899
Sales to customers’ warehouses	4,806			4,909			10,153			9,800
Total U.S. pharmaceutical distribution & services	25,744			25,981			52,392			51,699
Canada pharmaceutical distribution & services	2,409			2,537			4,926			5,266
Medical-Surgical distribution & services	873			873			1,668			1,604
Total Distribution Solutions	29,026			29,391			58,986			58,569
Technology Solutions
Services	656			643			1,322			1,273
Software & software systems	142			153			287			297
Hardware	26			29			53			57
Total Technology Solutions	824			825			1,662			1,627
Total Revenues	$	29,850		$	30,216		$	60,648		$	60,196
Operating profit
Distribution Solutions (2)	$	621		$	477		$	1,121		$	952
Technology Solutions	97			108			190			208
Total	718			585			1,311			1,160
Corporate Expenses, Net (3)	(97		)	(101		)	(103		)	(196		)
Interest Expense	(55		)	(64		)	(111		)	(128		)
Income Before Income Taxes	$	566		$	420		$	1,097		$	836

⁽¹⁾  Revenues derived from services represent less than 2% of this segment’s total revenues.

⁽²⁾  For the second quarters of 2013 and 2012, operating profit includes AWP litigation charges of $44 million and $118 million, and for the first six months of 2013 and 2012, $60 million and $118 million. These charges were recorded in operating expenses. Operating profit for the second quarter and first six months of 2013 includes the receipt of $19 million representing our share of settlements of antitrust class action lawsuits brought against drug manufacturers, which was recorded as a reduction to cost of sales.

⁽³⁾  Corporate expenses for the first six months of 2013 are net of an $81 million gain on business combination.