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Segment Information
 6 Months Ended
Sep. 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 September 30,
 
Six Months Ended September 30,
(In millions)
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
Distribution Solutions (1)
 
 
 
 
 
 
 
North America pharmaceutical distribution and services
$
43,508

 
$
41,375

 
$
86,524

 
$
82,586

International pharmaceutical distribution and services
6,773

 
6,271

 
13,155

 
12,601

Medical-Surgical distribution and services
1,660

 
1,631

 
3,193

 
3,099

Total Distribution Solutions
51,941

 
49,277

 
102,872

 
98,286

 
 
 
 
 
 
 
 
Technology Solutions - products and services (2) 
120

 
680

 
240

 
1,404

Total Revenues
$
52,061

 
$
49,957

 
$
103,112

 
$
99,690

 
 
 
 
 
 
 
 
Operating profit
 
 
 
 
 
 
 
Distribution Solutions (3) (4)
$
388

 
$
851

 
$
1,101

 
$
1,779

Technology Solutions (5) (6)
(33
)
 
(174
)
 
(111
)
 
(6
)
Total
355

 
677

 
990

 
1,773

Corporate Expenses, Net
(108
)
 
(74
)
 
(217
)
 
(179
)
Interest Expense
(69
)
 
(78
)
 
(137
)
 
(157
)
Income from Continuing Operations Before Income Taxes
$
178

 
$
525

 
$
636

 
$
1,437

(1)
Revenues derived from services represent less than 2% of this segment’s total revenues.
(2)
2018 revenues for the Technology Solutions segment only 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 second quarter and first six months 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 second quarter and first six months of 2018 include pre-tax credits of $29 million and $3 million, and for the second quarter and first six months of 2017 include pre-tax credits of $43 million and pre-tax charges of $4 million related to our LIFO method of accounting for inventories. LIFO credits for the second quarters of 2018 and 2017 reflected the reversals of the LIFO expenses recorded in the first quarters of 2018 and 2017 due to a change in estimates relating to full year expectations for net price increases. LIFO credits for the first half of 2018 were primarily due to lower full year expectations for net price increases. Additionally, the first six months of 2017 included $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 Distribution Solutions segment for the second quarter and first six months of 2018 includes a pre-tax gain of $43 million recognized from the sale of an equity investment. Additionally, the second quarter and first six months of 2018 for our Distribution Solutions segment include a pre-tax non-cash charge of $236 million primarily related to the impairment of certain long-lived assets and employee severance for our U.K. retail businesses, as well as a non-cash pre-tax goodwill impairment charge of $350 million for the McKesson Europe reporting unit.
(5)
Operating profit for our Technology Solutions segment for the second quarter and first six months of 2018 includes our EIS business and our proportionate share of loss from Change Healthcare of $61 million and $181 million. Additionally, operating profit for the first six months of 2018 includes a pre-tax gain of $37 million from the Healthcare Technology Net Asset Exchange related to the final net working capital and other adjustments.
(6)
The second quarter and first six months of 2017 include a non-cash pre-tax goodwill impairment charge of $290 million for the EIS reporting unit within our Technology Solutions segment.