Segments of Business (Tables)

3 Months Ended

Jun. 30, 2023

Schedule of financial information relating to reportable operating segments and reconciliations to the condensed consolidated totals

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


	Three Months Ended June 30,
(In millions)		2023		2022
Segment revenues (1)
U.S. Pharmaceutical		$	67,160	$	56,947
Prescription Technology Solutions		1,244		1,066
Medical-Surgical Solutions		2,611		2,592
International		3,468		6,549
Total revenues		$	74,483	$	67,154

Segment operating profit (loss) (2)
U.S. Pharmaceutical (3)		$	827	$	696
Prescription Technology Solutions (4)		231		144
Medical-Surgical Solutions		227		256
International (5)		57		(6)
Subtotal		1,342		1,090
Corporate expenses, net (6)		(204)		(39)

Interest expense		(47)		(45)
Income from continuing operations before income taxes		$	1,091	$	1,006

(1)Revenues from services on a disaggregated basis represent approximately 1% of the U.S. Pharmaceutical segment’s total revenues, less than 37% of the RxTS segment’s total revenues, less than 1% of the Medical-Surgical Solutions segment’s total revenues, and less than 1% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are derived in the U.S.

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

(3)The Company’s U.S. Pharmaceutical segment’s operating profit includes the following:

•cash receipts for the Company’s share of antitrust legal settlements of $118 million for the three months ended June 30, 2023; and

•a charge of $32 million and a credit of $13 million related to the last-in, first-out (“LIFO”) method of accounting for inventories for the three months ended June 30, 2023 and 2022, respectively.

(4)The Company’s RxTS segment’s operating profit for the three months ended June 30, 2023 includes a fair value adjustment gain of $28 million, which reduced the Company’s contingent consideration liability related to the RxSS acquisition, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.”

(5)The Company’s International segment’s operating loss for the three months ended June 30, 2022 includes charges of $94 million to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.”

(6)Corporate expenses, net includes the following:

•restructuring charges of $40 million for the three months ended June 30, 2023 for restructuring initiatives as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;” and

•a gain of $106 million for the three months ended June 30, 2022 primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.”