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33
McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
Acquisition expenses and related adjustments, which include transaction and integration expenses that are directly related
to acquisitions by the Company and gains and losses related to business combinations were $2 million, $31 million and $52
million in 2013, 2012 and 2011. Expenses for 2013 primarily consist of charges incurred to acquire and integrate PSS World
Medical; these expenses were almost fully offset by an $81 million gain on business combination. Expenses for 2012 and
2011 were primarily incurred to acquire and integrate US Oncology. Additional acquisition-related expenses are expected to
be incurred as we integrate our businesses.
Years Ended March 31,
(In millions) 2013 2012 2011
Operating Expenses
Transaction closing expenses $ 16 $ 3 $ 22
Restructuring, severance and relocation 31 6 9
Other integration related expenses 25 22 12
Gain on business combination (81)
—
—
Total (9) 31 43
Other Income: reimbursement of post-acquisition interest expense
from former US Oncology shareholders
—
—
(16)
Interest Expense: bridge loan fees 11
—
25
Total Acquisition Expenses and Related Adjustments $ 2 $ 31 $ 52
The acquisition expenses and related adjustments by segment were as follows:
Years Ended March 31,
(In millions) 2013 2012 2011
Operating Expenses
Distribution Solutions $ 47 $ 24 $ 41
Technology Solutions 8 6
—
Corporate (64) 1 2
Total (9) 31 43
Corporate - Other Income
—
—
(16)
Corporate - Interest Expense 11
—
25
Total Acquisition Expenses and Related Adjustments $ 2 $ 31 $ 52
Amortization expense of acquired intangible assets purchased in connection with acquisitions was as follows:
Years Ended March 31,
(In millions) 2013 2012 2011
Cost of Sales
Distribution Solutions $ 2 $ 1 $
—
Technology Solutions 14 19 16
Total 16 20 16
Operating Expenses
Distribution Solutions 146 120 70
Technology Solutions 52 51 46
Corporate 1
—
—
Total 199 171 116
Total Acquisition-related Amortization $ 215 $ 191 $ 132
Increases in our amortization expense of acquired intangible assets primarily reflect our recent business acquisitions.
Additionally, certain intangible assets associated with a 2007 acquisition were fully amortized in 2012.