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Segment Information | 6 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segment Information | Segment Information 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. Financial information relating to our reportable operating segments and reconciliations to the condensed consolidated totals is as follows:
| Quarter Ended September 30, |  | Six Months Ended September 30,
(In millions) | 2017 |  | 2016 |  | 2017 |  | 2016
Revenues |  |  |  |  |  |  |
Distribution Solutions (1) |  |  |  |  |  |  |
North America pharmaceutical distribution and services | $ | 43,508 |  |  | $ | 41,375 |  |  | $ | 86,524 |  |  | $ | 82,586 |
International pharmaceutical distribution and services | 6,773 |  |  | 6,271 |  |  | 13,155 |  |  | 12,601 |
Medical-Surgical distribution and services | 1,660 |  |  | 1,631 |  |  | 3,193 |  |  | 3,099 |
Total Distribution Solutions | 51,941 |  |  | 49,277 |  |  | 102,872 |  |  | 98,286 |
Technology Solutions - products and services (2) | 120 |  |  | 680 |  |  | 240 |  |  | 1,404 |
Total Revenues | $ | 52,061 |  |  | $ | 49,957 |  |  | $ | 103,112 |  |  | $ | 99,690 |
Operating profit |  |  |  |  |  |  |
Distribution Solutions (3) (4) | $ | 388 |  |  | $ | 851 |  |  | $ | 1,101 |  |  | $ | 1,779 |
Technology Solutions (5) (6) | (33 | ) |  | (174 | ) |  | (111 | ) |  | (6 | )
Total | 355 |  |  | 677 |  |  | 990 |  |  | 1,773 |
Corporate Expenses, Net | (108 | ) |  | (74 | ) |  | (217 | ) |  | (179 | )
Interest Expense | (69 | ) |  | (78 | ) |  | (137 | ) |  | (157 | )
Income from Continuing Operations Before Income Taxes | $ | 178 |  |  | $ | 525 |  |  | $ | 636 |  |  | $ | 1,437 |
(1) | Revenues derived from services represent less than 2% of this segment’s total revenues.
(2) | 2018 revenues for the Technology Solutions segment only include the results of our EIS business. Effective April 1, 2017, our RHP business was transitioned from the Technology Solutions segment to the Distribution Solutions segment. The second quarter and first six months of 2017 included the majority of our Core MTS Business which was contributed to Change Healthcare on March 1, 2017.
(3) | Distribution Solutions operating profit for the second quarter and first six months of 2018 include pre-tax credits of $29 million and $3 million, and for the second quarter and first six months of 2017 include pre-tax credits of $43 million and pre-tax charges of $4 million related to our LIFO method of accounting for inventories. LIFO credits for the second quarters of 2018 and 2017 reflected the reversals of the LIFO expenses recorded in the first quarters of 2018 and 2017 due to a change in estimates relating to full year expectations for net price increases. LIFO credits for the first half of 2018 were primarily due to lower full year expectations for net price increases. Additionally, the first six months of 2017 included $142 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits against drug manufacturers.
(4) | Operating profit for our Distribution Solutions segment for the second quarter and first six months of 2018 includes a pre-tax gain of $43 million recognized from the sale of an equity investment. Additionally, the second quarter and first six months of 2018 for our Distribution Solutions segment include a pre-tax non-cash charge of $236 million primarily related to the impairment of certain long-lived assets and employee severance for our U.K. retail businesses, as well as a non-cash pre-tax goodwill impairment charge of $350 million for the McKesson Europe reporting unit.
(5) | Operating profit for our Technology Solutions segment for the second quarter and first six months of 2018 includes our EIS business and our proportionate share of loss from Change Healthcare of $61 million and $181 million. Additionally, operating profit for the first six months of 2018 includes a pre-tax gain of $37 million from the Healthcare Technology Net Asset Exchange related to the final net working capital and other adjustments.
(6) | The second quarter and first six months of 2017 include a non-cash pre-tax goodwill impairment charge of $290 million for the EIS reporting unit within our Technology Solutions segment.

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- 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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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