McKesson 2016 Annual Report Download - page 131

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Years Ended March 31,
(In millions) 2016 2015 2014
Depreciation and amortization (5)
Distribution Solutions $ 669 $ 750 $ 446
Technology Solutions 107 156 169
Corporate 109 111 120
Total $ 885 $ 1,017 $ 735
Expenditures for long-lived assets (6)
Distribution Solutions $ 306 $ 301 $ 179
Technology Solutions 15 27 47
Corporate 167 48 52
Total $ 488 $ 376 $ 278
Revenues, net by geographic area (7)
United States $158,255 $142,810 $122,426
Foreign 32,629 36,235 14,966
Total $190,884 $179,045 $137,392
(1) Revenues derived from services represent less than 2% of this segment’s total revenues.
(2) Distribution Solutions operating profit for the year ended March 31, 2016, 2015, and 2014 include
$244 million, $337 million, and $311 million in pre-tax charges related to our last-in, first-out (“LIFO”)
method of accounting for inventories. LIFO expense was less in 2016 primarily due to lower net price
increases. For the year ended March 31, 2016 includes $76 million of net cash proceeds representing our
share of net settlements of antitrust class action lawsuits as well as a pre-tax gain of $52 million recognized
from the sale of our ZEE Medical business.
(3) Technology Solutions operating profit for the year ended March 31, 2016 includes a pre-tax gain of
$51 million recognized from the sale of our nurse triage business, and for year ended March 31, 2015
includes a non-cash pre-tax charge of $34 million related to the retained workforce business within our
International Technology business.
(4) During the fourth quarter of 2016, the Company approved the Cost Alignment Plan to reduce its operating
expenses and recorded pre-tax restructuring charges of $229 million. Pre-tax charges were recorded as
follows: $161 million, $51 million and $17 million within our Distribution Solutions segment, Technology
Solutions segment and Corporate.
(5) Amounts primarily include amortization of acquired intangible assets purchased in connection with business
acquisitions, capitalized software held for sale and capitalized software for internal use.
(6) Long-lived assets consist of property, plant and equipment.
(7) Net revenues were attributed to geographic areas based on the customers’ shipment locations.
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