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68
McKESSON CORPORATION
FINANCIAL NOTES (Continued)
During the last three years, we also completed a number of other smaller acquisitions within both of our operating
segments. Financial results for our business acquisitions have been included in our consolidated financial statements since
their respective acquisition dates. Purchase prices for our business acquisitions have been allocated based on estimated fair
values at the date of acquisition.
We incurred the following acquisition expenses and related adjustments:
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 is 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
Acquisition expenses and related adjustments incurred in 2013 were primarily related to our acquisition of PSS World
Medical and our gain on business combination from our acquisition of the remaining 50% ownership interest in our corporate
headquarters building. 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.
Goodwill recognized for our business acquisitions is generally not expected to be deductible for tax purposes. However,
if we acquire the assets of a company, the goodwill may be deductible for tax purposes. The pro forma results of operations
for our business acquisitions and the results of operations for these acquisitions since the acquisition date have not been
presented because the effects were not material to the consolidated financial statements on either an individual or an aggregate
basis.