McKesson 2005 Annual Report Download - page 88

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
expenses are allocated to the operating segments to the extent that these items can be directly attributable to the segment.
Financial information relating to the reportable operating segments is presented below:
87
Years Ended March 31,
(In millions) 2005 2004 2003
Revenues
Pharmaceutical Solutions (1) $76,318.1 $65,493.1 $53,058.8
Medical-Surgical Solutions 2,894.7 2,810.5 2,842.9
Provider Technologies
Software and software systems 245.6 218.2 288.7
Services 936.2 868.3 829.4
Hardware 120.0 116.0 101.0
Total Provider Technologies 1,301.8 1,202.5 1,219.1
Total $80,514.6 $69,506.1 $57,120.8
O
p
eratin
g
p
rofit
Pharmaceutical Solutions (2) (3) $ 1,076.7 $ 980.1 $966.7
Medical-Surgical Solutions 102.1 106.4 79.4
Provider Technologies 106.7 128.2 101.6
Total 1,285.5 1,214.7 1,147.7
Corporate (4) (207.3) (183.1)(168.2)
Securities Litigation charge (1,200.0)
—
—
Interest Expense (118.0) (120.2)(128.1)
Income (loss) from continuing operations before income taxes $ (239.8) $ 911.4 $ 851.4
Depreciation and amortization (5)
Pharmaceutical Solutions $ 109.6 $ 98.1 $ 89.6
Medical-Surgical Solutions 26.7 23.6 22.3
Provider Technologies 80.2 84.1 69.3
Corporate 34.4 26.3 22.5
Total $ 250.9 $ 232.1 $ 203.7
Ex
p
enditures for lon
g
-lived assets (6)
Pharmaceutical Solutions $ 65.5 $ 44.0 $ 50.1
Medical-Surgical Solutions 7.4 8.9 18.2
Provider Technologies 19.4 19.7 23.0
Corporate 47.6 42.4 24.7
Total $ 139.9 $ 115.0 $ 116.0
Se
g
ment assets, at
y
ear end
Pharmaceutical Solutions $13,157.7 $12,050.5 $10,593.0
Medical-Surgical Solutions 1,636.3 1,539.2 1,519.7
Provider Technologies 1,449.7 1,402.7 1,265.4
Total 16,243.7 14,992.4 13,378.1
Corporate
Cash, cash equivalents and marketable securities 1,809.3 717.8 533.5
Other 722.0 530.0 449.5
Total $18,775.0 $16,240.2 $14,361.1
(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 2005, 2004 and 2003.
(2) Includes $13.0 million, $7.4 million and $12.2 million of earnings from equity investments in 2005, 2004 and 2003.
(3) Operating profit for 2005 and 2004 includes $41.2 million and $21.7 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. In 2006, $51.2 million has been received for another
settlement of an antitrust class action lawsuit. This additional settlement will be recorded in the first quarter of 2006.
(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.