McKesson 2012 Annual Report Download - page 38
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McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
34
PSIP expense by segment for the last three years was as follows:
Years Ended March 31,
(In millions) 2012 2011 2010
Distribution Solutions $ 22 $ 23 $ —
Technology Solutions 30 32 1
Corporate 6 4 —
PSIP expense $ 58 $ 59 $ 1
Cost of sales
(
1
)
$ 17 $ 17 $ —
Operating expenses 41 42 1
PSIP expense $ 58 $ 59 $ 1
(1) Amounts recorded to cost of sales pertain solely to our McKesson Technology Solutions segment.
Acquisition-related expenses were primarily incurred in 2012 and 2011 to acquire and integrate US Oncology.
Acquisition-related expenses are generally recorded within operating expenses. In 2011, we incurred $25 million of
bridge loan fees in connection with our acquisition of US Oncology, which were accounted as interest expense in
Corporate, and we received reimbursement of post-acquisition interest expense from former shareholders of US
Oncology of $16 million, which was accounted as other income.
Acquisition-related expenses were as follows:
Years Ended March 31,
(In millions) 2012 2011 2010
Operating Expenses:
Distribution Solutions $ 24 $ 41 $ —
Technology Solutions 6 — —
Corporate 1 2 —
Total 31 43 —
Other Income: reimbursement of post-acquisition interest
expense from former US Oncology shareholders — (16) —
Interest Expense: bridge loan fees — 25 —
Total Acquisition-related Expenses $ 31 $ 52 $ —
Amortization expense of acquired intangible assets purchased in connection with acquisitions (“acquisition-
related amortization”) increased by $59 million to $191 million in 2012 and by $11 million to $132 million in 2011
compared to same periods a year ago. The increases were primarily due to our acquisition of US Oncology.
Acquisition-related amortization was as follows:
Years Ended March 31,
(In millions) 2012 2011 2010
Cost of Sales:
Distribution Solutions $ 1 $ — $ 1
Technology Solutions 19 16 20
Total 20 16 21
Operating Expenses:
Distribution Solutions 120 70 53
Technology Solutions 51 46 47
Total 171 116 100
Total Acquisition-related Amortization $ 191 $ 132 $ 121