McKesson 2008 Annual Report Download - page 111

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
104
Financial information relating to the reportable operating segments is presented below:
Years Ended March 31,
(In millions) 2008 2007 2006
Revenues
Distribution Solutions (1)
U.S. pharmaceutical direct distribution & services $ 60,436 $ 54,127 $ 51,730
U.S. pharmaceutical sales to customers’ warehouses 27,668 27,555 25,462
Subtotal 88,104 81,682 77,192
Canada pharmaceutical distribution & services 8,106 6,692 5,910
Medical-Surgical distribution & services 2,509 2,364 2,037
Total Distribution Solutions 98,719 90,738 85,139
Technology Solutions
Services 2,240 1,537 1,217
Software and software systems 591 536 476
Hardware 153 166 151
Total Technology Solutions 2,984 2,239 1,844
Total $ 101,703 $ 92,977 $ 86,983
Operating profit (2)
Distribution Solutions (3) (4) $ 1,483 $ 1,395 $ 1,250
Technology Solutions 319 206 187
Total 1,802 1,601 1,437
Corporate (208) (211) (127)
Securities Litigation charge (credit) 5 6 (45)
Interest Expense (142) (99) (94)
Income from continuing operations before income taxes $ 1,457 $ 1,297 $ 1,171
Depreciation and amortization (5)
Distribution Solutions $ 144 $ 126 $ 117
Technology Solutions 180 123 105
Corporate 47 46 40
Total $ 371 $ 295 $ 262
Expenditures for long-lived assets (6)
Distribution Solutions $ 96 $ 57 $ 87
Technology Solutions 54 42 24
Corporate 45 27 55
Total $ 195 $ 126 $ 166
Segment assets, at year end
Distribution Solutions $ 18,382 $ 16,429 $ 14,869
Technology Solutions 3,797 3,642 1,738
Total 22,179 20,071 16,607
Corporate
Cash and cash equivalents 1,362 1,954 2,139
Other 1,062 1,918 2,215
Total $ 24,603 $ 23,943 $ 20,961
(1) Revenues derived from services represent less than 1% of this segment’ s 2008, 2007 and 2006 revenues.
(2) Includes $21 million, $23 million and $20 million of net earnings from equity investments in 2008, 2007 and 2006.
(3) Operating profit for 2008, 2007 and 2006 includes $14 million, $10 million and $95 million representing our share of
settlements of antitrust class action lawsuits brought against certain drug manufacturers. These settlements were recorded as
reductions to cost of sales within our consolidated statements of operations in our Distribution Solutions segment.
(4) Operating profit for 2007 includes an $11 million credit to income due to an adjustment to a legal reserve and for 2006,
includes a $15 million credit to income due to a recovery of a previously reserved customer account.
(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.