McKesson 2014 Annual Report Download - page 114

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
111
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 2014
Revenues $ 32,208 $ 32,954 $ 34,306 $ 38,141
Gross profit (1) 1,920 2,009 1,840 2,540
Income after income taxes
Continuing operations (1) (2) $ 420 $ 416 $ 156 $ 362
Discontinued operations (3) 4(12)(92) 4
Net income 424 404 64 366
Net loss attributable to noncontrolling interests (4) — — — 5
Net income attributable to McKesson $ 424 $ 404 $ 64 $ 371
Earnings (loss) per common share attributable
to McKesson (5)
Diluted
Continuing operations $ 1.81 $ 1.79 0.67 $ 1.56
Discontinued operations 0.02 (0.05)(0.39) 0.02
Total $ 1.83 $ 1.74 $ 0.28 $ 1.58
Basic
Continuing operations $ 1.84 $ 1.82 0.68 $ 1.59
Discontinued operations 0.02 (0.06)(0.40) 0.02
Total $ 1.86 $ 1.76 $ 0.28 $ 1.61
(1) Financial results for the second, third and fourth quarters of 2014 includes pre-tax charges in our Distribution Solutions segment related to our LIFO method
of accounting for inventories of $44 million, $142 million and $125 million, which were recorded in cost of sales. Fourth quarter 2014 also includes a
$50 million pre-tax charge to cost of sales within our Distribution Solutions segment representing the reversal of a step-up to fair value of Celesio’s inventory
at the date of acquisition. Our after-tax portion of this charge (after allocation to noncontrolling interests), was $28 million.
(2) Financial results for the third quarter of 2014 include an income tax charge of $122 million relating to a litigation with the Canadian Revenue Agency.
(3) Financial results for the third quarter of 2014, include an $80 million of after-tax impairment charge related to our International Technology Business.
(4) Primarily represents the noncontrolling shareholders’ portion of net loss from Celesio.
(5) Certain computations may reflect rounding adjustments.