McKesson 2015 Annual Report Download - page 39

Download and view the complete annual report

Please find page 39 of the 2015 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

McKESSON CORPORATION
FINANCIAL REVIEW
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
GENERAL
Management’s discussion and analysis of financial condition and results of operations, referred to as the
Financial Review, is intended to assist the reader in the understanding and assessment of significant changes and
trends related to the results of operations and financial position of the Company together with its subsidiaries.
This discussion and analysis should be read in conjunction with the consolidated financial statements and
accompanying financial notes in Item 8 of Part II of this Annual Report on Form 10-K. The Company’s fiscal
year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall
mean the Company’s fiscal year.
Certain statements in this report constitute forward-looking statements. See Item 1—Business—Forward-
Looking Statements in Part I of this Annual Report on Form 10-K for additional factors relating to these
statements; also see Item 1A—Risk Factors in Part I of this Annual Report on Form 10-K for a list of certain risk
factors applicable to our business, financial condition and results of operations.
We conduct our business through two operating segments: McKesson Distribution Solutions and McKesson
Technology Solutions. See Financial Note 26, “Segments of Business,” to the consolidated financial statements
appearing in this Annual Report on Form 10-K for a description of these segments.
RESULTS OF OPERATIONS
Overview:
(Dollars in millions, except per share data)
Years Ended March 31, Change
2015 2014 2013 2015 2014
Revenues $179,045 $137,392 $122,196 30% 12%
Gross Profit $ 11,411 $ 8,352 $ 6,881 37% 21%
Operating Expenses $ 8,443 $ 5,913 $ 4,534 43% 30%
Income from Continuing Operations Before Income
Taxes $ 2,657 $ 2,171 $ 1,950 22% 11%
Income Tax Expense (815) (757) (587) 8 29
Income from Continuing Operations 1,842 1,414 1,363 30 4
Loss from Discontinued Operations, Net of Tax (299) (156) (25) 92 524
Net Income 1,543 1,258 1,338 23 (6)
Net Loss (Income) Attributable to Noncontrolling
Interests (67) 5 — — —
Net Income Attributable to McKesson Corporation $ 1,476 $ 1,263 $ 1,338 17% (6)%
Diluted Earnings (Loss) Per Common Share
Attributable to McKesson Corporation
Continuing Operations $ 7.54 $ 6.08 $ 5.69 24% 7%
Discontinued Operations (1.27) (0.67) (0.10) 90 570
Total $ 6.27 $ 5.41 $ 5.59 16% (3)%
Weighted Average Diluted Common Shares 235 233 239 1% (3)%
34