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Segment Information
3 Months Ended
Jun. 30, 2016
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 June 30,
(In millions)
2016
 
2015
Revenues
 
 
 
Distribution Solutions (1)
 
 
 
North America pharmaceutical distribution and services
$
41,211

 
$
39,532

International pharmaceutical distribution and services
6,330

 
5,838

Medical-Surgical distribution and services
1,468

 
1,440

Total Distribution Solutions
49,009

 
46,810

 
 
 
 
Technology Solutions - products and services
724

 
736

Total Revenues
$
49,733

 
$
47,546

 
 
 
 
Operating profit
 
 
 
Distribution Solutions (2)
$
928

 
$
910

Technology Solutions (3)
168

 
158

Total
1,096

 
1,068

Corporate Expenses, Net
(105
)
 
(124
)
Interest Expense
(79
)
 
(89
)
Income from Continuing Operations Before Income Taxes
$
912

 
$
855

(1)
Revenues derived from services represent less than 2% of this segment’s total revenues.
(2)
Distribution Solutions operating profit for the first quarters of 2017 and 2016 include $47 million and $91 million in pre-tax charges related to our last-in, first-out (“LIFO”) method of accounting for inventories. LIFO expense was less in 2017 primarily due to lower full year expectations for price increases. Additionally, the first quarters of 2017 and 2016 include $142 million and $59 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits against drug manufacturers.
(3)
Technology Solutions operating profit for the first quarter of 2016 includes a pre-tax gain of $51 million recognized from the sale of our nurse triage business.