McKesson 2006 Annual Report Download - page 92

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Financial information relating to the reportable operating segments is presented below:
Years Ended March 31,
(In millions) 2006 2005 2004
Revenues
Pharmaceutical Solutions (1) $83,409 $75,923 $65,197
Medical-Surgical Solutions 3,099 2,895 2,811
Provider Technologies Software and software systems 322 246 218
Services 1,069 936 868
Hardware 151 120 116
Total Provider Technologies 1,542 1,302 1,202
Total $88,050 $80,120 $69,210
O
p
eratin
g
p
rofit
Pharmaceutical Solutions (2) (3) $1,211 $1,071 $ 975
Medical-Surgical Solutions 70 102 107
Provider Technologies 143 107 127
Total 1,424 1,280 1,209
Corporate (4) (127) (207) (183)
Securities Litigation charges (45) (1,200)
—
Interest Expense (94) (118) (120)
Income (loss) from continuing operations before income taxes $1,158 $ (245) $ 906
De
p
reciation and amortization (5)
Pharmaceutical Solutions $111 $ 108 $96
Medical-Surgical Solutions 26 27 24
Provider Technologies 89 80 84
Corporate 40 34 26
Total $266 $ 249 $230
Ex
p
enditures for lon
g
-lived assets (6)
Pharmaceutical Solutions $83 $ 62 $41
Medical-Surgical Solutions 7 7 9
Provider Technologies 22 19 20
Corporate 55 48 42
Total $167 $ 136 $112
Se
g
ment assets, at
y
ear end
Pharmaceutical Solutions $13,753 $13,115 $12,011
Medical-Surgical Solutions 1,609 1,636 1,539
Provider Technologies 1,593 1,459 1,413
Total 16,955 16,210 14,963
Corporate Cash and cash equivalents 2,142 1,800 708
Other 1,878 765 569
Total $20,975 $18,775 $16,240
(1) In addition to the distribution of pharmaceutical and healthcare products, our Pharmaceutical Solutions segment includes the manufacture
and sale of automated pharmaceutical dispensing systems for retail pharmacies, disease management and patient and other services for
payors, and software, and consulting and outsourcing to pharmacies. Revenues from these products and services were not a material
component of segment revenues in 2006, 2005 and 2004. In addition, revenues derived from services represent less than 1% of this
segmen
t
’s 2006, 2005 and 2004 revenues.
(2) Includes $20 million, $13 million and $7 million of earnings from equity investments in 2006, 2005 and 2004.
(3) Operating profit for 2006, 2005 and 2004 includes $95 million, $41 million and $22 million representing our share of settlements of
antitrust class action lawsuits brought against certain drug manufactures. These settlements were recorded as reductions to cost of sales
within our consolidated statements of operations in our Pharmaceutical Solutions segment.
(4) Corporate expenses in 2004 included approximately $13 million of gains on the sales of surplus properties.
(5) Includes amortization of intangibles, capitalized software held for sale and capitalized software for internal use.
(6) Long-lived assets consist of property, plant and equipment.