McKesson 2014 Annual Report Download - page 111

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
108
Accumulated Other Comprehensive Income (Loss)
Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows:
(In millions)
Foreign
Currency
Translation
Adjustments,
Net of Tax
Unrealized
Losses on Cash
Flow Hedges,
Net of Tax
Unrealized Net
Loss and Other
Components of
Benefit Plans,
Net of Tax
Total
Accumulated
Other
Comprehensive
Income (Loss)
Balance at March 31, 2012 $ 188 $ (5) $ (178) $ 5
Other comprehensive loss before
reclassifications (52) — (18)(70)
Other comprehensive loss (52) — (18)(70)
Balance at March 31, 2013 $ 136 $ (5) $ (196) $ (65)
Other comprehensive income (loss) before
reclassifications (12)(6) 35 17
Amounts reclassified to earnings 44 — 1 45
Other comprehensive income (loss) 32 (6) 36 62
Balance at March 31, 2014 $ 168 $ (11) $ (160) $ (3)
24. Related Party Balances and Transactions
In April 2012, we purchased the remaining ownership interest in our corporate headquarters building which was previously
accounted for as an equity method investment. As a result, there was no annual rental expense paid in 2014 and 2013. We incurred
$10 million in 2012 of annual rental expense paid to this equity-held investment.
25. Segments of Business
We report our operations in two operating segments: McKesson Distribution Solutions and McKesson Technology Solutions.
The factors for determining the reportable segments included the manner in which management evaluates the performance of the
Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments
on a number of measures, including operating profit before interest expense, income taxes and results from discontinued operations.
The McKesson Distribution Solutions segment distributes ethical and proprietary drugs and equipment and health and beauty
care products throughout North America and internationally. This segment includes our International pharmaceutical distribution
and services business which reflects the results of operations from our acquisition of Celesio in February 2014. This segment also
provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, and practice management, technology,
clinical support and business solutions to oncology and other specialty practices operating in the community setting. This segment
also provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers through a network
of distribution centers within the U.S. In addition, this segment sells financial, operational and clinical solutions for pharmacies
(retail, hospital, alternate site) and provides consulting, outsourcing and other services. In September 2013, we sold our 49%
interest in Nadro, S.A. de C.V. (“Nadro”), a pharmaceutical distributor in Mexico. Prior to the sale, financial results for Nadro
were included in this segment.
The McKesson Technology Solutions segment includes McKesson Health Solutions, which includes our InterQual® clinical
criteria solution, claims payment solutions and network performance tools. This segment also delivers enterprise-wide clinical,
patient care, financial, supply chain, strategic management software solutions, as well as connectivity, outsourcing and other
services, including remote hosting and managed services, to healthcare organizations. This segment’s customers include hospitals,
physicians, homecare providers, retail pharmacies and payers primarily from North America.
Corporate includes expenses associated with Corporate functions and projects and the results of certain equity investments.
Corporate expenses are allocated to the operating segments to the extent that these items can be directly attributable to the segment.