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Segment Information
 3 Months Ended
Jun. 30, 2017
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)
2017
 
2016
Revenues
 
 
 
Distribution Solutions (1)
 
 
 
North America pharmaceutical distribution and services
$
43,016

 
$
41,211

International pharmaceutical distribution and services
6,382

 
6,330

Medical-Surgical distribution and services
1,533

 
1,468

Total Distribution Solutions
50,931

 
49,009

 
 
 
 
Technology Solutions - products and services (2) 
120

 
724

Total Revenues
$
51,051

 
$
49,733

 
 
 
 
Operating profit
 
 
 
Distribution Solutions (3)
$
713

 
$
928

Technology Solutions (4)
(78
)
 
168

Total
635

 
1,096

Corporate Expenses, Net
(109
)
 
(105
)
Interest Expense
(68
)
 
(79
)
Income from Continuing Operations Before Income Taxes
$
458

 
$
912

(1)
Revenues derived from services represent less than 2% of this segment’s total revenues.
(2)
2018 revenues for the Technology Solutions segment include the results of our EIS business. Effective April 1, 2017, our RHP business was transitioned from the Technology Solutions segment to the Distribution Solutions segment. The first quarter of 2017 included the majority of our Core MTS Business which was contributed to Change Healthcare on March 1, 2017.
(3)
Distribution Solutions operating profit for the first quarters of 2018 and 2017 include $26 million and $47 million in pre-tax charges related to our last-in, first-out (“LIFO”) method of accounting for inventories. LIFO expense was less in 2018 primarily due to the lower full year expectations for net price increases compared to the same period a year ago. Additionally, the first quarter of 2017 includes $142 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits against drug manufacturers.
(4)
Operating profit for our Technology Solutions segment for the first quarter of 2018 includes our EIS business, our proportionate share of loss from Change Healthcare of $120 million and a pre-tax gain of $37 million from the Healthcare Technology Net Asset Exchange related to the final net working capital and other adjustments.