McKesson 2008 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2008 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 119

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
103
The Distribution Solutions segment distributes ethical and proprietary drugs, medical-surgical supplies and
equipment, and health and beauty care products throughout North America. We have combined two of our former
segments known as our Pharmaceutical Solutions and Medical-Surgical Solutions segments into this new segment,
which reflects the increasing synergies the Company seeks through combined activities and best-practice process
improvements. This segment also provides specialty pharmaceutical solutions for biotech and pharmaceutical
manufacturers, sells pharmacy software and provides consulting, outsourcing and other services. This segment
includes a 49% interest in Nadro, S.A. de C.V. (“Nadro”), the leading pharmaceutical distributor in Mexico and a
39% interest in Parata, which sells automated pharmaceutical dispensing systems to retail pharmacies.
The Technology Solutions segment (formerly known as our Provider Technologies segment) delivers
enterprise-wide clinical, patient care, financial, supply chain, strategic management software solutions, pharmacy
automation for hospitals, as well as connectivity, outsourcing and other services, to healthcare organizations. We
have added our Payor group of businesses, which includes our InterQual® and clinical auditing and compliance
software businesses, and our disease and medical management programs to this segment. The change to move our
Payor group to this segment from our former Pharmaceutical Solutions segment reflects our decision to more closely
align this business with the strategy of our Technology Solutions segment, that is to create value by promoting
connectivity, economic alignment and transparency of information between payors and providers. The segment’ s
customers include hospitals, physicians, homecare providers, retail pharmacies and payors from North America, the
United Kingdom, Ireland, other European countries, Australia, New Zealand and Israel.
Revenues for our Technology Solutions segment are classified in one of three categories: services, software and
software systems and hardware. Service revenues primarily include fees associated with installing our software and
software systems, as well as revenues associated with software maintenance and support, remote processing, disease
and medical management, and other outsourcing and professional services. Software and software systems revenues
primarily include revenues from licensing our software and software systems, including the segment’ s clinical
auditing and compliance and InterQual® businesses.
Our Corporate segment includes expenses associated with Corporate functions and projects, certain employee
benefits and the results of certain joint venture investments. Corporate expenses are allocated to the operating
segments to the extent that these items can be directly attributable to the segment.