McKesson 2016 Annual Report Download - page 133

Download and view the complete annual report

Please find page 133 of the 2016 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 156

  • 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
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
(1) Gross profit for the first, second, third and fourth quarters of 2016 included pre-tax charges related to our
last-in-first-out (“LIFO”) method of accounting for inventories of $91 million, $91 million, $33 million and
$29 million.
(2) Gross profit for the first and third quarters of 2016 included $59 million and $17 million of cash proceeds
representing our share of net settlements of antitrust class action lawsuits against drug manufacturers.
(3) Financial results for the fourth quarter of 2016 include pre-tax restructuring charges of $229 million within
our continuing operations. Charges were recorded as follows: $26 million in cost of sales and $203 million
in operating expenses.
(4) Financial results for the first quarter of 2016 include an after-tax gain of $38 million from the sale of our
nurse triage business, and for the second quarter of 2016 include an after-tax gain of $29 million from the
sale of ZEE Medical business.
(5) Certain computations may reflect rounding adjustments.
(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 McKesson $ 403 $ 469 $ 472 $ 132
Earnings per common share attributable to McKesson (4)
Diluted
Continued 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) Gross profit for the first, second, third and fourth quarters of 2015 included pre-tax charges related to our
LIFO method of accounting for inventories of $98 million, $94 million, $95 million and $50 million.
(2) Financial results for the fourth quarter of 2015 included a non-cash after-tax charge of $150 million related
to the settlement of controlled substance distribution claims.
(3) Discontinued operations for the fourth quarter of 2015 included $235 million non-cash after-tax impairment
charges related to our Brazilian pharmaceutical distribution business.
(4) Certain computations may reflect rounding adjustments.
127