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McKESSON CORPORATION
FINANCIAL NOTES (Concluded)
105
22. Quarterly Financial Information (Unaudited)
(In millions, except per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter Year
Fiscal 2010
Revenues $ 26,657 $ 27,130 $ 28,272 $ 26,643 $ 108,702
Gross profit 1,303 1,335 1,455 1,583 5,676
Net income (1) 288 301 326 348 1,263
Earnings per common share (1)
Diluted 1.06 1.11 1.19 1.26 4.62
Basic 1.07 1.13 1.21 1.29 4.70
Fiscal 2009
Revenues $ 26,704 $ 26,574 $ 27,130 $ 26,224 $ 106,632
Gross profit 1,268 1,302 1,343 1,465 5,378
Net income (2)(3)(4)(5) 235 327 (20) 281 823
Earnings per common share (2)(3)(4)(5)
Diluted 0.83 1.17 (0.07) 1.01 2.95
Basic 0.85 1.19 (0.07) 1.03 2.99
(1) Financial results for the third quarter and full year 2010 include a $17 million pre-tax gain ($14 million after-tax) on sale of
our 50% interest in MLS.
(2) Financial results for the second quarter and full year 2009 include a $24 million pre-tax gain ($14 million after-tax) on sale
of our 42% interest in Verispan.
(3) Financial results for the second and fourth quarters and full year 2009 include $67 million, $22 million and $89 million of
income tax credits related to the recognition of previously unrecognized tax benefits and related interest expense as a result
of the lapsing of the statutes of limitations.
(4) Financial results for the third quarter and full year 2009 include a $493 million pre-tax charge ($311 million after-tax)
associated with the AWP litigation.
(5) Financial results for the fourth quarter and full year 2009 include a $63 million pre-tax impairment charge ($60 million
after-tax) associated with two equity-held investments.
23. Subsequent Events
In April 2010, our Technology Solutions segment entered into a definitive agreement to sell its wholly-owned
subsidiary, McKesson Asia Pacific Pty Limited, a provider of phone and web-based healthcare services in Australia
and New Zealand. This agreement is the result of an unsolicited purchase offer. The divestiture is subject to
regulatory approval. Upon completion of the sale, any gain will be reported as “discontinued operations” in our
consolidated financial statements.
On May 4, 2010, we received $51 million cash proceeds representing our share of a settlement of an antitrust
class action lawsuit. This will be recorded as a reduction of cost of sales in our consolidated statement of operations
in the first quarter of 2011.