Segment Information

9 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

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 December 31,						Nine Months Ended December 31,
(In millions)	2014			2013			2014			2013
Revenues
Distribution Solutions (1)
North America pharmaceutical distribution and services	$	37,398		$	32,060		$	106,850		$	92,808
International pharmaceutical distribution and services	7,288			—			22,207			—
Medical-Surgical distribution & services	1,564			1,462			4,471			4,286
Total Distribution Solutions	46,250			33,522			133,528			97,094
Technology Solutions - products and services	755			814			2,293			2,466
Total Revenues	$	47,005		$	34,336		$	135,821		$	99,560
Operating profit
Distribution Solutions (2) (3) (4)	$	785		$	552		$	2,326		$	1,856
Technology Solutions (5) (6)	111			47			304			294
Total	896			599			2,630			2,150
Corporate Expenses, Net (7)	(103		)	(112		)	(317		)	(307		)
Interest Expense	(97		)	(69		)	(297		)	(187		)
Income from Continuing Operations Before Income Taxes	$	696		$	418		$	2,016		$	1,656

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

(2) Operating profit for the third quarter and first nine months of 2014 includes AWP litigation charges of $18 million and $68 million, which were recorded in operating expenses.

(3) Operating profit for the third quarter and first nine months of 2015 includes last-in-first-out (“LIFO”) inventory charges of $95 million and $287 million. Operating profit for the third quarter and first nine months of 2014 includes LIFO inventory charges of $142 million and $186 million. The charges were all recorded in cost of sales.

(4) Operating profit for the third quarter and first nine months of 2015 includes $51 million and $151 million of acquisition-related expenses, and $16 million and $38 million for the third quarter and first nine months of 2014.

(5) Operating profit for the first nine months of 2015 includes a charge of $34 million related to the retained workforce business within our International Technology business.

(6) Operating profit for the third quarter of 2014 includes product alignment charges, integration-related expenses and severance charges totaling $57 million, of which $34 million was recorded in cost of sales and $23 million was recorded in operating expenses. Operating profit for the first nine months of 2014 includes product alignment charges, integration-related expenses and severance charges totaling $60 million, of which $34 million was recorded in cost of sales and $26 million was recorded in operating expenses.

(7) Corporate expenses, net, for the third quarter and first nine months of 2015 include $1 million and $11 million of acquisition-related expenses and $25 million and $26 million for the third quarter and first nine months of 2014.