Segment Information

9 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

14. 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						Nine Months Ended
		December 31,						December 31,
(In millions)		2011			2010			2011			2010
Revenues
Distribution Solutions (1)
Direct distribution & services	$	21,585		$	19,408		$	63,484		$	57,094
Sales to customers' warehouses		5,198			4,731			14,998			14,133
Total U.S. pharmaceutical distribution & services		26,783			24,139			78,482			71,227
Canada pharmaceutical distribution & services		2,473			2,574			7,739			7,485
Medical-Surgical distribution & services		760			744			2,364			2,200
Total Distribution Solutions		30,016			27,457			88,585			80,912
Technology Solutions
Services (2)		643			629			1,916			1,828
Software & software systems		152			135			449			408
Hardware		28			26			85			83
Total Technology Solutions		823			790			2,450			2,319
Total	$	30,839		$	28,247		$	91,035		$	83,231
Operating profit
Distribution Solutions (3)	$	510		$	289		$	1,462		$	1,285
Technology Solutions (2) (4) (5)		69			106			277			184
Total		579			395			1,739			1,469
Corporate		(89	)		(81	)		(285	)		(252	)
Interest Expense		(64	)		(53	)		(192	)		(140	)
Income from Continuing Operations Before Income
Taxes	$	426		$	261		$	1,262		$	1,077

(1	)	Revenues derived from services represent less than 2% of this segment's total revenues for the quarters and nine months ended December 31, 2011 and 2010.
(2	)	Revenues and operating profit for the quarter and nine months ended December 31, 2010 include the recognition of $23 million of revenue for a disease management contract for which the related expenses were previously recognized as incurred.
(3	)	Operating profit includes AWP litigation charges of $27 million and $145 million for the quarter and nine months ended December 31, 2011 and $189 million and $213 million for the quarter and nine months ended December 31, 2010, which were recorded in operating expenses. Operating profit for the nine months ended December 31, 2010 includes the receipt of $51 million representing our share of a settlement of an antitrust class action lawsuit brought against a drug manufacturer, which was recorded as a reduction to cost of sales.
(4	)	Operating profit for the quarter and nine months ended December 31, 2011 includes charges of $42 million for a product alignment plan, of which $26 million and $16 million were recorded in cost of sales and operating expenses.
(5	)	Operating profit for the nine months ended December 31, 2010 includes a $72 million asset impairment charge for capitalized software held for sale, which was recorded in cost of sales.