McKesson 2015 Annual Report Download - page 125

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
27. Quarterly Financial Information (Unaudited)
The quarterly 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 2015
Revenues $43,476 $44,160 $46,484 $44,925
Gross profit (1) 2,732 2,864 2,898 2,917
Income after income taxes
Continuing operations (1) (2) $ 419 $ 491 $ 521 $ 411
Discontinued operations (3) (8) (14) (10) (267)
Net income 411 477 511 144
Net income attributable to noncontrolling interests (4) (8) (8) (39) (12)
Net income attributable to McKesson $ 403 $ 469 $ 472 $ 132
Earnings (loss) per common share attributable to McKesson (5)
Diluted
Continuing operations $ 1.76 $ 2.05 $ 2.04 $ 1.69
Discontinued operations (0.04) (0.06) (0.04) (1.13)
Total $ 1.72 $ 1.99 $ 2.00 $ 0.56
Basic
Continuing operations $ 1.79 $ 2.08 $ 2.07 $ 1.72
Discontinued operations (0.04) (0.06) (0.04) (1.15)
Total $ 1.75 $ 2.02 $ 2.03 $ 0.57
(1) Financial results for the first, second, third and fourth quarters of 2015 include pre-tax charges in our
Distribution Solutions segment related to our last-in-first-out (“LIFO”) method of accounting for inventories
of $98 million, $94 million, $95 million and $50 million, which were recorded in cost of sales.
(2) Fourth quarter of 2015 includes a non-cash after-tax charge of $150 million related to the settlement of
controlled substance distribution claims.
(3) Fourth quarter of 2015 includes $235 million non-cash after-tax impairment charges related to our Brazilian
pharmaceutical distribution business.
(4) Primarily reflects the guaranteed dividends of $50 million for the first nine months of 2015 and the
recurring compensation of $12 million for the fourth quarter of 2015. McKesson is obligated to pay these
amounts to the noncontrolling shareholders of Celesio under the Domination Agreement which became
effective in December 2014.
(5) Certain computations may reflect rounding adjustments.
120