Segment Information

6 Months Ended

Sep. 30, 2013

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)	2013			2012			2013			2012
Revenues
Distribution Solutions (1)
Direct distribution & services	$	23,729		$	20,938		$	46,761		$	42,239
Sales to customers’ warehouses	4,340			4,806			8,788			10,153
Total U.S. pharmaceutical distribution & services	28,069			25,744			55,549			52,392
Canada pharmaceutical distribution & services	2,633			2,409			5,199			4,926
Medical-Surgical distribution & services	1,467			873			2,824			1,668
Total Distribution Solutions	32,169			29,026			63,572			58,986
Technology Solutions
Services	656			585			1,317			1,179
Software	108			119			231			237
Hardware	21			25			42			52
Total Technology Solutions	785			729			1,590			1,468
Total Revenues	$	32,954		$	29,755		$	65,162		$	60,454
Operating profit
Distribution Solutions (2) (3) (4)	$	685		$	621		$	1,304		$	1,121
Technology Solutions	113			92			232			182
Total	798			713			1,536			1,303
Corporate Expenses, Net (5)	(110		)	(97		)	(195		)	(103		)
Interest Expense	(59		)	(55		)	(118		)	(111		)
Income Before Income Taxes from Continuing Operations	$	629		$	561		$	1,223		$	1,089

(1) Revenues derived from services represent less than 2% of this segment’s total revenues.

(2) Operating profit for the second quarters of 2014 and 2013 includes AWP litigation charges of $35 million and $44 million and for the first six months of 2014 and 2013 includes AWP litigation charges of $50 million and $60 million, which were recorded in operating expenses.

(3) Operating profit for the second quarter and first six months of 2014 includes last-in-first-out (“LIFO”) charges of $44 million and for the second quarter and first six months of 2013 includes LIFO charges of $3 million, which were recorded in cost of sales.

(4) Operating profit for the first six months of 2014 includes the receipt of $7 million and for the second quarter and first six months of 2013 $19 million representing our share of settlements of antitrust class action lawsuits brought against drug manufacturers, which was recorded as a reduction to cost of sales.

(5) Corporate expenses for the first six months of 2013 are net of an $81 million pre-tax gain on business combination related to the acquisition of the remaining 50% ownership interest in our corporate headquarters building.