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Quarterly Financial Information (Unaudited)
 12 Months Ended
Mar. 31, 2015
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
The quarterly results of operations are not necessarily indicative of the results that may be expected for the entire year. Selected quarterly financial information for the last two years is as follows:
(In millions, except per share amounts)
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Fiscal 2015
 
 
 
 
 
 
 
Revenues
$
43,476

 
$
44,160

 
$
46,484

 
$
44,925

Gross profit (1)
2,732

 
2,864

 
2,898

 
2,917

Income after income taxes
 
 
 
 
 
 
 
Continuing operations (1) (2)
$
419

 
$
491

 
$
521

 
$
411

Discontinued operations (3)
(8
)
 
(14
)
 
(10
)
 
(267
)
Net income
411

 
477

 
511

 
144

Net income attributable to noncontrolling interests (4)
(8
)
 
(8
)
 
(39
)
 
(12
)
Net income attributable to McKesson
$
403

 
$
469

 
$
472

 
$
132

Earnings (loss) per common share attributable
to McKesson (5)
 
 
 
 
 
 
 
Diluted
 
 
 
 
 
 
 
Continuing operations
$
1.76

 
$
2.05

 
$
2.04

 
$
1.69

Discontinued operations
(0.04
)
 
(0.06
)
 
(0.04
)
 
(1.13
)
Total
$
1.72

 
$
1.99

 
$
2.00

 
$
0.56

Basic
 
 
 
 
 
 
 
Continuing operations
$
1.79

 
$
2.08

 
$
2.07

 
$
1.72

Discontinued operations
(0.04
)
 
(0.06
)
 
(0.04
)
 
(1.15
)
Total
$
1.75

 
$
2.02

 
$
2.03

 
$
0.57


(1)
Financial results for the first, second, third and fourth quarters of 2015 include pre-tax charges in our Distribution Solutions segment related to our last-in-first-out (“LIFO”) method of accounting for inventories of $98 million, $94 million, $95 million and $50 million, which were recorded in cost of sales.
(2)
Fourth quarter of 2015 includes a non-cash after-tax charge of $150 million related to the settlement of controlled substance distribution claims.
(3)
Fourth quarter of 2015 includes $235 million non-cash after-tax impairment charges related to our Brazilian pharmaceutical distribution business.
(4)
Primarily reflects the guaranteed dividends of $50 million for the first nine months of 2015 and the recurring compensation of $12 million for the fourth quarter of 2015. McKesson is obligated to pay these amounts to the noncontrolling shareholders of Celesio under the Domination Agreement which became effective in December 2014.
(5)
Certain computations may reflect rounding adjustments.
(In millions, except per share amounts)
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Fiscal 2014
 
 
 
 
 
 
 
Revenues
$
32,239

 
$
32,985

 
$
34,336

 
$
37,832

Gross profit (1)
1,930

 
2,021

 
1,850

 
2,551

Income after income taxes
 
 
 
 
 
 
 
Continuing operations (1) (2)
$
428

 
$
423

 
$
164

 
$
399

Discontinued operations (3)
(4
)
 
(19
)
 
(99
)
 
(34
)
Net income
424

 
404

 
65

 
365

Net loss attributable to noncontrolling interests (4)
—

 
—

 
—

 
5

Net income attributable to McKesson
$
424

 
$
404

 
$
65

 
$
370

Earnings per common share attributable
to McKesson (5)
 
 
 
 
 
 
 
Diluted
 
 
 
 
 
 
 
Continued operations
$
1.84

 
$
1.82

 
$
0.70

 
$
1.72

Discontinued operations
(0.01
)
 
(0.08
)
 
(0.42
)
 
(0.14
)
Total
$
1.83

 
$
1.74

 
$
0.28

 
$
1.58

Basic
 
 
 
 
 
 
 
Continuing operations
$
1.88

 
$
1.85

 
$
0.71

 
1.76

Discontinued operations
(0.02
)
 
(0.09
)
 
(0.43
)
 
(0.15
)
Total
$
1.86

 
$
1.76

 
$
0.28

 
$
1.61


(1)
Financial results for the second, third and fourth quarters of 2014 include pre-tax charges in our Distribution Solutions segment related to our LIFO method of accounting for inventories of $44 million, $142 million and $125 million, which were recorded in cost of sales. The fourth quarter of 2014 also includes a $40 million pre-tax charge to cost of sales within our Distribution Solutions segment representing the reversal of a step-up to fair value of Celesio’s inventory at the date of acquisition. Our after-tax portion of this charge from continuing operations (after allocation to noncontrolling interests) was $21 million.
(2)
Financial results for the third quarter of 2014 include an income tax charge of $122 million relating to our litigation with the Canadian Revenue Agency.
(3)
Financial results for the third quarter of 2014 include an $80 million after-tax impairment charge related to our International Technology Business, which was sold in part during the second quarter of 2015.
(4)
Primarily represents the noncontrolling shareholders’ portion of net loss from Celesio.
(5)
Certain computations may reflect rounding adjustments.