McKesson 2014 Annual Report Download - page 76

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
73
We incurred the following acquisition expenses and related adjustments:
Years Ended March 31,
(In millions) 2014 2013 2012
Cost of Sales $ 3 $ — $ —
Operating Expenses
Transaction closing expenses 39 16 3
Restructuring, severance and relocation 43 30 3
Other integration related expenses 73 25 20
Gain on business combination — (81) —
Total 155 (10) 26
Other Income, Net 14 — —
Interest Expense - bridge loan fees 46 11 —
Total Acquisition Expenses and Related Adjustments $ 218 $ 1 $ 26
The acquisition expenses and related adjustments by segment is as follows:
Years Ended March 31,
(In millions) 2014 2013 2012
Cost of Sales - Technology Solutions $ 3 $ — $ —
Operating Expenses
Distribution Solutions 119 47 24
Technology Solutions 15 7 1
Corporate 21 (64) 1
Total 155 (10) 26
Corporate - Other Income, Net 14 — —
Corporate - Interest Expense 46 11 —
Total Acquisition Expenses and Related Adjustments $ 218 $ 1 $ 26
Acquisition expenses and related adjustments incurred in 2014 were primarily related to our acquisition of Celesio and the
integration of PSS World Medical. Related expenses for 2013 primarily pertained 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, and for 2012 were primarily incurred to integrate a 2011 acquisition. Additional acquisition-related expenses are expected
to be incurred as we integrate our acquired 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. For all acquisitions other than Celesio, 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.
3. Discontinued Operations
In 2014, we committed to a plan to sell our International Technology and our Hospital Automation businesses from our
Technology Solutions segment and certain businesses from our Distribution Solutions segment. The results of operations and
cash flows for these businesses are classified as discontinued operations for the years ended March 31, 2014, 2013 and 2012 in
our consolidated financial statements.