McKesson 2015 Annual Report Download - page 126

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McKESSON CORPORATION
FINANCIAL NOTES (Concluded)
(In millions, except per share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Fiscal 2014
Revenues $32,239 $32,985 $34,336 $37,832
Gross profit (1) 1,930 2,021 1,850 2,551
Income after income taxes
Continuing operations (1) (2) $ 428 $ 423 $ 164 $ 399
Discontinued operations (3) (4) (19) (99) (34)
Net income 424 404 65 365
Net loss attributable to noncontrolling interests (4) ——— 5
Net income attributable to McKesson $ 424 $ 404 $ 65 $ 370
Earnings per common share attributable to McKesson (5)
Diluted
Continued operations $ 1.84 $ 1.82 $ 0.70 $ 1.72
Discontinued operations (0.01) (0.08) (0.42) (0.14)
Total $ 1.83 $ 1.74 $ 0.28 $ 1.58
Basic
Continuing operations $ 1.88 $ 1.85 $ 0.71 1.76
Discontinued operations (0.02) (0.09) (0.43) (0.15)
Total $ 1.86 $ 1.76 $ 0.28 $ 1.61
(1) Financial results for the second, third and fourth quarters of 2014 include 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. The fourth quarter of 2014 also includes a $40
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
from continuing operations (after allocation to noncontrolling interests) was $21 million.
(2) Financial results for the third quarter of 2014 include an income tax charge of $122 million relating to our
litigation with the Canadian Revenue Agency.
(3) Financial results for the third quarter of 2014 include an $80 million after-tax impairment charge related to
our International Technology Business, which was sold in part during the second quarter of 2015.
(4) Primarily represents the noncontrolling shareholders’ portion of net loss from Celesio.
(5) Certain computations may reflect rounding adjustments.
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