McKesson 2009 Annual Report Download - page 120

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
114
Financial information relating to the reportable operating segments is presented below:
Years Ended March 31,
(In millions) 2009 2008 2007
Revenues
Distribution Solutions (1)
U.S. pharmaceutical direct distribution & services $ 66,876 $ 60,436 $ 54,127
U.S. pharmaceutical sales to customers’ warehouses 25,809 27,668 27,555
Subtotal 92,685 88,104 81,682
Canada pharmaceutical distribution & services 8,225 8,106 6,692
Medical-Surgical distribution & services 2,658 2,509 2,364
Total Distribution Solutions 103,568 98,719 90,738
Technology Solutions
Services (2) 2,337 2,240 1,537
Software and software systems 572 591 536
Hardware 155 153 166
Total Technology Solutions 3,064 2,984 2,239
Total $ 106,632 $ 101,703 $ 92,977
Operating profit (3)
Distribution Solutions (4) $ 1,158 $ 1,483 $ 1,395
Technology Solutions (2) 334 319 206
Total 1,492 1,802 1,601
Corporate (284) (208) (211)
Litigation credits - 5 6
Interest expense (144) (142) (99)
Income from continuing operations before income taxes $ 1,064 $ 1,457 $ 1,297
Depreciation and amortization (5)
Distribution Solutions $ 177 $ 144 $ 126
Technology Solutions 205 180 123
Corporate 59 47 46
Total $ 441 $ 371 $ 295
Expenditures for long-lived assets (6)
Distribution Solutions $ 83 $ 96 $ 57
Technology Solutions 43 54 42
Corporate 69 45 27
Total $ 195 $ 195 $ 126
Segment assets, at year end
Distribution Solutions $ 18,674 $ 18,382 $ 16,429
Technology Solutions 3,606 3,797 3,642
Total 22,280 22,179 20,071
Corporate
Cash and cash equivalents 2,109 1,362 1,954
Other 878 1,062 1,918
Total $ 25,267 $ 24,603 $ 23,943
(1) Revenues derived from services represent less than 1% of this segment’s total revenues for 2009, 2008 and 2007.
(2) Revenues and operating profit for 2008 for our Technology Solutions segment reflect the recognition of $21 million of
disease management deferred revenues for which expenses associated with these revenues were previously recognized as
incurred.
(3) Operating profit includes $7 million, $21 million and $23 million of net earnings from equity investments in 2009, 2008 and
2007. These earnings are primarily recorded within our Distribution Solutions segment.
(4) Operating profit includes the following pre-tax items: a $63 million charge to write-down two equity-held investments, a
$493 million charge associated with the AWP Litigation and a $24 million pre-tax gain on the sale of our 42% equity
interest in Verispan.
(5) Depreciation and amortization 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.