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Segments of Business
 12 Months Ended
Mar. 31, 2017
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.
Our Distribution Solutions segment distributes branded and generic pharmaceutical drugs and other healthcare-related products internationally and provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and clinical trial access to our network of oncology physicians. It also provides medical-surgical supply distribution, logistics and other services to healthcare providers within the United States. Additionally, this segment operates retail pharmacy chains in Europe and Canada, and supports independent pharmacy networks within North America and Europe. It also supplies integrated pharmacy management systems, automated dispensing systems and related services to retail, outpatient, central fill, specialty and mail order pharmacies.
On March 1, 2017, upon the closing of Healthcare Technology Net Asset Exchange, we contributed the majority of our McKesson Technology Solutions businesses to the newly formed joint venture, Change Healthcare. We retained our RelayHealth Pharmacy and EIS businesses. Accordingly, beginning March 31, 2017, Technology Solutions segment provides clinical, financial and supply chain management solutions to healthcare organizations and includes our equity method investment in Change Healthcare.  Prior to March 1, 2017, this segment also delivered enterprise-wide clinical, patient care and strategic management technology solutions, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations.  Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” for additional information about Change Healthcare.
Corporate includes expenses associated with Corporate functions and projects, and the results of certain investments. Corporate expenses are allocated to operating segments to the extent that these items are directly attributable.
Financial information relating to our reportable operating segments and reconciliations to the consolidated totals is as follows:
 
Years Ended March 31,
(In millions)
2017
 
2016
 
2015
Revenues
 
 
 
 
 
Distribution Solutions (1)
 
 
 
 
 
North America pharmaceutical distribution and services
$
164,832

 
$
158,469

 
$
143,711

International pharmaceutical distribution and services
24,847

 
23,497

 
26,358

Medical-Surgical distribution and services
6,244

 
6,033

 
5,907

Total Distribution Solutions
195,923

 
187,999

 
175,976

 
 
 
 
 
 
Technology Solutions - products and services
2,610

 
2,885

 
3,069

Total Revenues
$
198,533

 
$
190,884

 
$
179,045

 
 
 
 
 
 
Operating profit
 
 
 
 
 
Distribution Solutions (2) (5)
$
3,361

 
$
3,553

 
$
3,047

Technology Solutions (3) (4) (5)
4,215

 
$
519

 
$
438

Total
7,576

 
4,072

 
3,485

Corporate Expenses, Net (5)
(377
)
 
$
(469
)
 
$
(454
)
Interest Expense
(308
)
 
$
(353
)
 
$
(374
)
Income From Continuing Operations Before Income Taxes
$
6,891

 
$
3,250

 
$
2,657

 
 
 
 
 
 
Depreciation and amortization (6)
 
 
 
 
 
Distribution Solutions
$
735

 
$
669

 
$
750

Technology Solutions
65

 
107

 
156

Corporate
110

 
109

 
111

Total
$
910

 
$
885

 
$
1,017

 
 
 
 
 
 
Expenditures for long-lived assets (7)
 
 
 
 
 
Distribution Solutions
$
276

 
$
306

 
$
301

Technology Solutions
30

 
15

 
27

Corporate
98

 
167

 
48

Total
$
404

 
$
488

 
$
376

 
 
 
 
 
 
Revenues, net by geographic area (8)
 
 
 
 
 
United States
$
164,428

 
$
158,255

 
$
142,810

Foreign
34,105

 
32,629

 
36,235

Total
$
198,533

 
$
190,884

 
$
179,045


(1)
Revenues derived from services represent less than 2% of this segment’s total revenues.
(2)
Distribution Solutions segment operating profit for 2016 includes a pre-tax gain of $52 million recognized from the sale of our ZEE Medical business. Operating profit for 2017 and 2016 includes $144 million and $76 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits.
(3)
Technology Solutions segment operating profit for 2017 includes a pre-tax gain of $3,947 million recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses.
(4)
Technology Solutions segment operating profit for 2017 includes a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit. Operating profit for 2016 includes a pre-tax gain of $51 million recognized from the sale of our nurse triage business.
(5)
In 2016, the Company implemented the Cost Alignment Plan to reduce its operating expenses and recorded pre-tax restructuring charges of $229 million in 2016. Pre-tax charges for 2016 were recorded as follows: $161 million, $51 million and $17 million within our Distribution Solutions segment, Technology Solutions segment and Corporate.
(6)
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.
(7)
Long-lived assets consist of property, plant and equipment.
(8)
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)
2017
 
2016
Segment assets
 
 
 
Distribution Solutions
$
52,322

 
$
47,088

Technology Solutions
4,995

 
3,072

Corporate
3,652

 
6,363

Total
$
60,969

 
$
56,523

 
 
 
 
Property, plant and equipment, net


 


United States
$
1,383

 
$
1,500

Foreign
909

 
778

Total
$
2,292

 
$
2,278


Assets by operating segment are not reviewed by management for purpose of assessing performance or allocating resources.