Segments of Business (Tables)

12 Months Ended

Mar. 31, 2020

Financial information relating to the Company’s reportable operating segments and reconciliations to the consolidated totals is as follows:



	Years Ended March 31,
(In millions)	2020			2019			2018
Revenues
U.S. Pharmaceutical and Specialty Solutions ⁽¹⁾	$	183,341		$	167,763		$	162,587
European Pharmaceutical Solutions ⁽¹⁾	27,390			27,242			27,320
Medical-Surgical Solutions ⁽¹⁾	8,305			7,618			6,611
Other	12,015			11,696			11,839
Total Revenues	$	231,051		$	214,319		$	208,357

Operating profit (loss) ⁽²⁾
U.S. Pharmaceutical and Specialty Solutions ⁽³⁾	$	2,767		$	2,697		$	2,535
European Pharmaceutical Solutions ⁽⁴⁾	(261		)	(1,978		)	(1,681		)
Medical-Surgical Solutions	499			455			461
Other ^{(5) (6) (7) (8)}	(595		)	394			(107		)
Total	2,410			1,568			1,208
Corporate Expenses, Net ⁽⁹⁾	(1,017		)	(694		)	(564		)
Loss on Debt Extinguishment	—			—			(122		)
Interest Expense	(249		)	(264		)	(283		)
Income from Continuing Operations Before Income Taxes	$	1,144		$	610		$	239

Depreciation and amortization ⁽¹⁰⁾
U.S. Pharmaceutical and Specialty Solutions	$	228		$	238		$	210
European Pharmaceutical Solutions	235			257			296
Medical-Surgical Solutions	136			118			97
Other	187			214			237
Corporate	136			122			111
Total	$	922		$	949		$	951

Expenditures for long-lived assets ⁽¹¹⁾
U.S. Pharmaceutical and Specialty Solutions	$	94		$	88		$	126
European Pharmaceutical Solutions	95			85			104
Medical-Surgical Solutions	36			110			34
Other	61			68			42
Corporate	76			75			99
Total	$	362		$	426		$	405

Revenues, net by geographic area
United States	$	192,709		$	176,296		$	169,943
Foreign	38,342			38,023			38,414
Total Revenues	$	231,051		$	214,319		$	208,357


(1)	Revenues from services represent less than 1% of the Company’s U.S. Pharmaceutical and Specialty Solutions segment’s total revenues, less than 10% of the Company’s European Pharmaceutical Solutions segment’s total revenues and less than 2% of the Company’s Medical-Surgical Solutions segment’s total revenues.


(2)	Segment operating profit (loss) includes gross profit, net of operating expenses, as well as other income (expense), net, for the Company’s operating segments.

(3)

The Company’s U.S. Pharmaceutical and Specialty Solutions segment’s operating profit for 2020, 2019 and 2018 includes pre-tax credits of $252 million, $210 million and $99 million ($186 million, $156 million and $64 million after-tax) related to the LIFO method of accounting for inventories. Operating profit for 2020, 2019 and 2018 also includes $22 million, $202 million and $144 million of cash receipts for the Company’s share of antitrust legal settlements. In addition, operating profit for 2019 includes a pre-tax charge of $61 million ($45 million after-tax) related to a customer bankruptcy and 2018 includes a pre-tax gain of $43 million ($26 million after-tax) from the sale of an equity investment.

(4)

European Pharmaceutical Solutions segment’s operating loss for 2020 includes a charge of $275 million (pre-tax and after-tax) to remeasure to fair value the assets and liabilities of the Company’s German wholesale business to be contributed to a joint venture, and for 2020, 2019 and 2018 also includes pre-tax long-lived asset impairment charges of $82 million, $210 million and $446 million ($66 million, $172 million and $410 million after-tax). Operating loss for 2019 and 2018 includes pre-tax goodwill impairment charges of $1.8 billion and $1.3 billion (pre-tax and after-tax).


(5)	Operating loss for Other for 2020 includes a pre-tax impairment charge of $1.2 billion ($864 million after-tax) and a pre-tax dilution loss of $246 million ($184 million after-tax) associated with the Company’s investment in the Change Healthcare JV, along with an estimated gain of $414 million (pre-tax and after-tax) related to the split-off of the Change Healthcare JV.

(6)

Operating profit (loss) for Other for 2020, 2019 and 2018 includes pre-tax goodwill and long-lived asset impairment charges of $32 million, $56 million and $488 million (pre-tax and after-tax) recognized for the Company’s Rexall Health retail business. The 2019 operating profit for Other also includes a pre-tax gain from an escrow settlement of $97 million (pre-tax and after-tax) representing certain indemnity and other claims related to the Company’s 2017 acquisition of Rexall Health. In addition, operating profit for 2019 includes pre-tax restructuring and asset impairment charges of $91 million ($86 million after-tax), primarily associated with lease and other exit-related costs and a pre-tax gain of $56 million ($41 million after-tax) recognized from the sale of an equity investment.


(7)	Operating profit for Other for 2019 includes a pre-tax credit of $90 million ($66 million after-tax) for the derecognition of the TRA liability payable to the shareholders of Change. Operating profit (loss) for Other also includes the Company’s proportionate share of loss from the Change Healthcare JV of $119 million, $194 million and $248 million for 2020, 2019 and 2018.


(8)	Operating loss for Other for 2018 includes a pre-tax gain of $109 million ($30 million after-tax) from the sale of the Company’s EIS business and a pre-tax credit of $46 million ($30 million after-tax) representing a reduction in its TRA liability.

(9)

Corporate expenses, net, for 2020 include pre-tax settlement charges of $122 million ($90 million after-tax) for the termination of the Company’s defined benefit pension plan and a settlement charge of $82 million ($61 million after-tax) related to opioid claims. Corporate expenses, net, for 2019 include pre-tax restructuring and asset impairment charges of $94 million ($70 million after-tax) primarily associated with employee severance and other exit-related costs.


(10)	Amounts primarily consist of amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use.

(11)

Long-lived assets consist of property, plant and equipment.

Schedule of segment assets and property, plant and equipment, net by geographic areas

Segment assets and property, plant and equipment, net by geographic areas were as follows:



	March 31,
(In millions)	2020		2019
Segment assets
U.S. Pharmaceutical and Specialty Solutions	$	34,927	$	32,310
European Pharmaceutical Solutions	9,499		7,829
Medical-Surgical Solutions	5,395		5,260
Other	7,944		11,006
Corporate	3,482		3,267
Total	$	61,247	$	59,672

Property, plant and equipment, net
United States	$	1,642	$	1,698
Foreign	723		850
Total	$	2,365	$	2,548