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Segments of Business
 3 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segments of Business Segments of Business
The Company reports its financial results in three reportable segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. All remaining operating segments and business activities that are not significant enough to require separate reportable segment disclosure are included in Other. 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. The Company evaluates the performance of its operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes. Assets by operating segment are not reviewed by management for the purpose of assessing performance or allocating resources.
The Company’s U.S. Pharmaceutical and Specialty Solutions segment distributes pharmaceutical and other healthcare-related products and also provides pharmaceutical solutions to life sciences companies in the U.S..
The Company’s European Pharmaceutical Solutions segment provides distribution and services to wholesale, institutional, and retail customers and serves patients and consumers in 13 European countries through its own pharmacies and participating pharmacies that operate under brand partnership and franchise arrangements.
The Company’s Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers in the U.S..
Other primarily consists of the following:
•McKesson Canada which distributes pharmaceutical and medical products and operates Rexall Health retail pharmacies;
•McKesson Prescription Technology Solutions which provides innovative technologies that support retail pharmacies; and
•the Company’s investment in the Change Healthcare JV, which was split-off from the Company in the fourth quarter of 2020.
Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals is as follows:
 Three Months Ended June 30,
(In millions)20202019
Revenues
U.S. Pharmaceutical and Specialty Solutions (1)
$45,062  $44,165  
European Pharmaceutical Solutions (1)
6,246  6,710  
Medical-Surgical Solutions (1)
1,801  1,903  
Other2,570  2,950  
Total revenues$55,679  $55,728  
Segment operating profit (loss) (2)
U.S. Pharmaceutical and Specialty Solutions (3)
$608  $579  
European Pharmaceutical Solutions(10) 5  
Medical-Surgical Solutions89  125  
Other98  141  
Subtotal785  850  
Corporate expenses, net (4)
(80) (175) 
Interest expense(60) (56) 
Income from continuing operations before income taxes$645  $619  
Revenues, net by geographic area
United States$47,129  $46,321  
Foreign8,550  9,407  
Total revenues
$55,679  $55,728  
(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 reportable segments and Other.
(3)The Company’s U.S. Pharmaceutical and Specialty Solutions segment’s operating profit for the three months ended June 30, 2020 and 2019 includes credits of $52 million and $15 million, respectively, related to the last-in, first-out (“LIFO”) method of accounting for inventories.
(4)Corporate expenses, net for the three months ended June 30, 2020 includes a net gain of $131 million recorded in connection with insurance proceeds received from the settlement of the shareholder derivative action related to the Company’s controlled substances monitoring program as discussed in Financial Note 13, “Commitments and Contingent Liabilities.” Corporate expenses, net for the three months ended June 30, 2019 includes net settlement gains of $25 million from the Company’s derivative contracts and a settlement charge of $17 million related to the termination of the Company’s defined benefit pension plan.
On July 1, 2020, the Company announced a change to its organizational structure to reflect the Company’s continued focus on delivering new and innovative solutions to respond to the evolving needs of the healthcare industry, customers, and patients. In connection with the completion of this change, the Company’s operating structure will be realigned commencing in the second quarter of 2021 and it will begin reporting its financial results in four reportable segments on a retrospective basis as follows:
•U.S. Pharmaceutical
•International
•Medical-Surgical Solutions
•Prescription Technology Solutions
The Company’s equity method investment in Change Healthcare, which was split-off from McKesson in the fourth quarter of 2020, will be included in Other for retrospective periods presented. The segment changes reflect how the Company’s chief operating decision maker will begin allocating resources and assessing performance commencing in the second quarter of 2021.