XML 53 R35.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Segments of Business | 12 Months Ended
--- | ---
Mar. 31, 2016
Segment Reporting [Abstract] |
Segments of Business | Segments of Business We report our operations in two operating segments: McKesson Distribution Solutions and McKesson Technology Solutions. The factors for determining the reportable segments included the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments on a number of measures, including operating profit before interest expense, income taxes and results from discontinued operations. The Distribution Solutions segment distributes branded and generic pharmaceutical drugs and other healthcare-related products worldwide and provides medical-surgical supply distribution, equipment, logistics and other services to healthcare providers within the United States. This segment provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. It also provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and clinical trial access to our network of oncology physicians. Additionally, this segment operates retail pharmacies in Europe and supports independent pharmacy networks within North America. It also sells financial, operational and clinical solutions to pharmacies (retail, hospital, alternate site) and provides consulting, outsourcing and other services. The McKesson Technology Solutions segment delivers enterprise-wide clinical, patient care, financial, supply chain, strategic management software solutions, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations. Corporate includes expenses associated with Corporate functions and projects and the results of certain investments. Corporate expenses are allocated to the operating segments to the extent that these items can be directly attributable to the segment. Financial information relating to our reportable operating segments and reconciliations to the consolidated totals is as follows:
| Years Ended March 31,
(In millions) | 2016 |  | 2015 |  | 2014
Revenues |  |  |  |  |
Distribution Solutions (1) |  |  |  |  |
North America pharmaceutical distribution and services | $ | 158,469 |  |  | $ | 143,711 |  |  | $ | 123,929 |
International pharmaceutical distribution and services | 23,497 |  |  | 26,358 |  |  | 4,485 |
Medical-Surgical distribution and services | 6,033 |  |  | 5,907 |  |  | 5,648 |
Total Distribution Solutions | 187,999 |  |  | 175,976 |  |  | 134,062 |
Technology Solutions - products and services | 2,885 |  |  | 3,069 |  |  | 3,330 |
Total Revenues | $ | 190,884 |  |  | $ | 179,045 |  |  | $ | 137,392 |
Operating profit |  |  |  |  |
Distribution Solutions (2) (4) | $ | 3,553 |  |  | $ | 3,047 |  |  | $ | 2,472 |
Technology Solutions (3) (4) | 519 |  |  | 438 |  |  | 448 |
Total | 4,072 |  |  | 3,485 |  |  | 2,920 |
Corporate Expenses, Net (4) | (469 | ) |  | (454 | ) |  | (449 | )
Interest Expense | (353 | ) |  | (374 | ) |  | (300 | )
Income From Continuing Operations Before Income Taxes | $ | 3,250 |  |  | $ | 2,657 |  |  | $ | 2,171 |
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.
Segment assets and property, plant and equipment, net by geographic areas were as follows:
| March 31,
(In millions) | 2016 |  | 2015
Segment assets |  |  |
Distribution Solutions | $ | 47,088 |  |  | $ | 43,982 |
Technology Solutions | 3,072 |  |  | 3,281 |
Total | 50,160 |  |  | 47,263 |
Corporate |  |  |
Cash and cash equivalents | 4,048 |  |  | 5,341 |
Other | 2,355 |  |  | 1,266 |
Total | $ | 56,563 |  |  | $ | 53,870 |
Property, plant and equipment, net |  |  |  |  |
United States | $ | 1,500 |  |  | $ | 1,273 |
Foreign | 778 |  |  | 772 |
Total | $ | 2,278 |  |  | $ | 2,045 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration