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Segments of Business | 6 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Segments of Business | Segments of Business We report our financial results in three reportable segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions and Medical-Surgical Solutions. All remaining operating segments and business activities that are not significant enough to require separate reportable segment disclosure are included in Other. 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 revenues and operating profit before interest expense and income taxes. Assets by operating segment are not reviewed by management for the purpose of assessing performance or allocating resources. Our U.S. Pharmaceutical and Specialty Solutions segment distributes pharmaceutical and other healthcare-related products and also provides pharmaceutical solutions to life sciences companies in the United States. Our European Pharmaceutical Solutions segment provides distribution and services to wholesale, institutional and retail customers and serves patients and consumers in 13 European countries through our own pharmacies and participating pharmacies that operate under brand partnership and franchise arrangements. Our Medical-Surgical Solutions segment distributes medical-surgical supplies and provides logistics and other services to healthcare providers in the United States. Other primarily consists of the following:
• | McKesson Canada which distributes pharmaceutical and medical products and operates Rexall Health retail pharmacies;
• | McKesson Prescription Technology Solutions which provides innovative technologies that support retail pharmacies; and
• | Our investment in Change Healthcare JV
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) | 2019 |  | 2018 |  | 2019 |  | 2018
Revenues |  |  |  |  |  |  |
U.S. Pharmaceutical and Specialty Solutions (1) | $ | 45,979 |  |  | $ | 41,610 |  |  | $ | 90,144 |  |  | $ | 82,587 |
European Pharmaceutical Solutions (1) | 6,598 |  |  | 6,639 |  |  | 13,308 |  |  | 13,574 |
Medical-Surgical Solutions (1) | 2,056 |  |  | 1,948 |  |  | 3,959 |  |  | 3,651 |
Other | 2,983 |  |  | 2,878 |  |  | 5,933 |  |  | 5,870 |
Total Revenues | $ | 57,616 |  |  | $ | 53,075 |  |  | $ | 113,344 |  |  | $ | 105,682 |
Operating profit (loss) (2) |  |  |  |  |  |  |
U.S. Pharmaceutical and Specialty Solutions (3) | $ | 639 |  |  | $ | 610 |  |  | $ | 1,218 |  |  | $ | 1,153 |
European Pharmaceutical Solutions (4) | 1 |  |  | 10 |  |  | 6 |  |  | (550 | )
Medical-Surgical Solutions | 129 |  |  | 105 |  |  | 254 |  |  | 198 |
Other (5) (6) | (1,311 | ) |  | 95 |  |  | (1,170 | ) |  | 209 |
Total | (542 | ) |  | 820 |  |  | 308 |  |  | 1,010 |
Corporate Expenses, Net (7) | (364 | ) |  | (167 | ) |  | (539 | ) |  | (290 | )
Interest Expense | (64 | ) |  | (66 | ) |  | (120 | ) |  | (127 | )
Income (Loss) from Continuing Operations Before Income Taxes | $ | (970 | ) |  | $ | 587 |  |  | $ | (351 | ) |  | $ | 593 |
Revenues, net by geographic area |  |  |  |  |  |  |
United States | $ | 48,292 |  |  | $ | 43,774 |  |  | $ | 94,614 |  |  | $ | 86,664 |
Foreign | 9,324 |  |  | 9,301 |  |  | 18,730 |  |  | 19,018 |
Total Revenues | $ | 57,616 |  |  | $ | 53,075 |  |  | $ | 113,344 |  |  | $ | 105,682 |
(1) | Revenues derived from services represent less than 1% of our U.S. Pharmaceutical and Specialty Solutions segment’s total revenues, less than 10% of our European Pharmaceutical Solutions segment’s total revenues and less than 2% of our Medical-Surgical Solutions segment’s total revenues.
(2) | Segment operating profit (loss) includes gross profit, net of operating expenses, as well as other income (expense), net, for our operating segments.
(3) | Our U.S. Pharmaceutical and Specialty Solutions segment’s operating profit for the second quarter and first six months of 2020 includes $33 million and $48 million, and for the second quarter and first six months of 2019 includes $22 million and $43 million pre-tax credits related to our last-in, first-out (“LIFO”) method of accounting for inventories. Operating profit for the first six months of 2019 also includes $35 million of cash receipts for our share of antitrust legal settlements.
(4) | European Pharmaceutical Solutions segment’s operating profit for the first six months of 2019 includes non-cash goodwill impairment charges of $570 million (pre-tax and after-tax).
(5) | Operating profit (loss) for Other for the second quarter and first six months of 2019 includes pre-tax restructuring, impairment and related charges of $42 million and $80 million primarily associated with the closure of retail pharmacy stores within our Canadian business. The first six months of 2019 include escrow settlement gain of $97 million (pre-tax and after-tax) representing certain indemnity and other claims related to our 2017 third quarter acquisition of Rexall Health.
(6) | Operating profit (loss) for Other for the second quarter and first six months of 2020 includes pre-tax impairment charge of $1,157 million and a pre-tax dilution loss of $246 million associated with our investment in Change Healthcare JV. Operating profit (loss) for Other for the second quarter and first six months of 2019 includes a pre-tax credit of $90 million representing the derecognition of the TRA liability payable to the shareholders of Change Healthcare Inc. Operating profit (loss) for Other also includes our proportionate share of loss from Change Healthcare JV of $51 million and $47 million for the second quarter and first six months of 2020 and $56 million and $112 million for the second quarter and first six months of 2019.
(7) Corporate expenses, net, for the second quarter and first six months of 2020 include pre-tax settlement charges of $105 million and $122 million from the termination of our defined benefit pension plan and a settlement charge of $82 million (pre-tax and after-tax) related to opioid claims. The second quarter and first six months of 2020 includes $36 million and $72 million, and for the second quarter and first six months of 2019 includes $43 million and $59 million pre-tax charges of opioid-related costs, primarily litigation expenses.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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