McKesson 2012 Annual Report Download - page 106

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
102
Financial information relating to our reportable operating segments and reconciliations to the consolidated totals
is as follows:
Years Ended March 31,
(In millions) 2012 2011 2010
Revenues
Distribution Solutions (1)
Direct distribution & services
$
85,523 $ 77,554 $ 72,210
Sales to customers’ warehouses 20,453 18,631 21,435
Total U.S. pharmaceutical distribution & services 105,976 96,185 93,645
Canada pharmaceutical distribution & services 10,303 9,784 9,072
Medical-Surgical distribution & services 3,145 2,920 2,861
Total Distribution Solutions 119,424 108,889 105,578
Technology Solutions
Services 2,594 2,483 2,439
Software & software systems 596 590 571
Hardware 120 122 114
Total Technology Solutions 3,310 3,195 3,124
Total $ 122,734 $ 112,084 $ 108,702
Operating profit
Distribution Solutions (2) $ 2,219 $ 1,897 $ 1,988
Technology Solutions (3) 364 301 385
Total 2,583 2,198 2,373
Corporate (413) (341) (342)
Litigation credit, net — — 20
Interest expense (251) (222) (187)
Income from continuing operations before income taxes $ 1,919 $ 1,635 $ 1,864
Depreciation and amortization(4) (5)
Distribution Solutions $ 225 $ 167 $ 154
Technology Solutions 209 209 212
Corporate 117 120 111
Total $ 551 $ 496 $ 477
Expenditures for long-lived assets (5) (6)
Distribution Solutions $ 175 $ 158 $ 90
Technology Solutions 22 26 31
Corporate 28 49 78
Total $ 225 $ 233 $ 199
Segment assets, at year end (5)
Distribution Solutions $ 25,374 $ 22,732 $ 19,599
Technology Solutions 3,575 3,504 3,635
Total 28,949 26,236 23,234
Corporate
Cash and cash equivalents 3,149 3,612 3,731
Other 995 1,038 1,224
Total $ 33,093 $ 30,886 $ 28,189
(1) Revenues derived from services represent less than 2% of this segment’s total revenues for 2012, 2011 and 2010.
(2) Operating profit for 2012 and 2011 includes AWP litigation charges of $149 million and $213 million, which were recorded
in operating expenses. Operating profit for 2011 includes the receipt of $51 million representing our share of a settlement of
an antitrust class action lawsuit brought against a drug manufacturer, which was recorded as a reduction to cost of sales.
(3) Operating profit for 2012 includes product alignment charges of $51 million. Operating profit for 2011 includes a $72
million asset impairment charge for capitalized software held for sale, which was recorded in cost of sales.
(4) Amounts primarily include amortization of acquired intangible assets purchased in connection with acquisitions, capitalized
software held for sale and capitalized software for internal use.
(5) Amounts have been recast for 2011 and 2010 to reflect the transfer of assets from our Distribution Solutions segment to
Corporate effective April 1, 2011.
(6) Long-lived assets consist of property, plant and equipment.