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105
McKESSON CORPORATION
FINANCIAL NOTES (Concluded)
26. Quarterly Financial Information (Unaudited)
The quarters results of operations are not necessarily indicative of the results that may be expected for the entire year.
Selected quarterly financial information for the last two years is as follows:
(In millions, except per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Fiscal 2013
Revenues $ 30,798 $ 29,850 $ 31,187 $ 30,620
Gross profit 1,600 1,720 1,668 1,996
Net income (1) (2) (3) (4) (5) 380 401 298 259
Earnings per common share (1) (2) (3) (4) (5) (8)
Diluted $ 1.58 $ 1.67 $ 1.24 $ 1.10
Basic 1.61 1.70 1.27 1.12
Fiscal 2012
Revenues $ 29,980 $ 30,216 $ 30,839 $ 31,699
Gross profit 1,509 1,647 1,566 1,845
Net income (6) (7) 286 296 300 521
Earnings per common share (6) (7) (8)
Diluted $ 1.13 $ 1.18 $ 1.20 $ 2.09
Basic 1.15 1.20 1.22 2.14
(1) Financial results for the first, second and fourth quarters of 2013 include AWP litigation charges of $16 million pre-tax ($10 million after-tax),
$44 million pre-tax ($27 million after-tax) and $12 million pre-tax ($8 million after-tax), which were recorded in operating expenses.
(2) Financial results for the first quarter of 2013 include an $81 million pre-tax ($51 million after-tax) gain on business combination, which was
recorded as a reduction to operating expenses.
(3) Financial results for the second, third and fourth quarters of 2013 include the pre-tax receipts of $19 million, $8 million and $17 million
representing our share of settlements of antitrust class action lawsuits brought against drug manufacturers, which were recorded as a reduction
to cost of sales.
(4) Financial results for the third quarter of 2013 include a $40 million pre-tax ($29 million after-tax) charge for a legal dispute in our Canadian
business which was recorded in operating expenses.
(5) Financial results for the fourth quarter of 2013 include the following pre-tax impairment charges: an equity investment of $191 million,
goodwill of $36 million, and capitalized software held for sale of $10 million.
(6) Financial results for the second, third and fourth quarters of 2012 include AWP litigation charges of $118 million pre-tax ($77 million after-
tax), $27 million pre-tax ($15 million after-tax) and $4 million pre-tax (benefit of $32 million after-tax), which were recorded in operating
expenses.
(7) Financial results for the third and fourth quarters of 2012 include product alignment pre-tax charges of $42 million and $9 million.
(8) Certain computations may reflect rounding adjustments.
27. Subsequent Event
In April 2013, we committed to a plan to sell our International Technology and our Hospital Automation businesses.
Financial results for these businesses will be reported as discontinued operations commencing in the first quarter of 2014.