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Segments of Business
 9 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segments of Business Segments of Business
The Company reports its financial results in four reportable segments: U.S. Pharmaceutical, RxTS, Medical-Surgical Solutions, and International. The organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, and the results of certain investments. 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. The Company evaluates the performance of its 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.
The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate site) and provides consulting, outsourcing, technological, and other services.
The RxTS segment unifies the solutions and services of CoverMyMeds, RelayHealth, RxCrossroads, and McKesson Prescription Automation to serve biopharma and life sciences partners and patients. By combining automation and expert navigation of the healthcare ecosystem, RxTS connects pharmacies, providers, payers, and biopharma to address patients’ medication access, adherence, and affordability challenges to help people get the medicine they need to live healthier lives.
The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. This segment offers more than 275,000 national brand medical-surgical products as well as McKesson’s own line of products through a network of distribution centers within the United States.
The International segment includes the Company’s operations in Europe and Canada, bringing together non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services. The Company’s operations in Europe provide distribution and services to wholesale, institutional, and retail customers in 12 European countries where it owns, partners, or franchises with retail pharmacies and operates through two businesses: Pharmaceutical Distribution and Retail Pharmacy. The Company’s Canada operations deliver vital medicines, supplies, and information technology services throughout Canada and includes Rexall Health retail pharmacies. In the second quarter of 2022, the Company entered into an agreement to sell the E.U. disposal group and in the third quarter of 2022, the Company announced agreements to sell the U.K. disposal group and its Austrian business. Refer to Financial Note 2, “Held for Sale,” for more information.
Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals is as follows:
 Three Months Ended December 31, Nine Months Ended December 31,
(In millions)2021202020212020
Segment revenues (1)
U.S. Pharmaceutical$55,041 $49,495 $158,471 $142,232 
Prescription Technology Solutions1,031 777 2,844 2,101 
Medical-Surgical Solutions3,082 3,054 8,734 7,388 
International9,460 9,273 27,815 27,365 
Total revenues$68,614 $62,599 $197,864 $179,086 
Segment operating profit (loss) (2)
U.S. Pharmaceutical (3)
$744 $635 $2,186 $1,871 
Prescription Technology Solutions129 114 361 270 
Medical-Surgical Solutions (4)
308 260 679 536 
International (5)
(668)(71)(761)(113)
Subtotal513 938 2,465 2,564 
Corporate expenses, net (6)
(195)(8,246)(858)(8,462)
Loss on debt extinguishment (7)
— — (191)— 
Interest expense(41)(55)(135)(165)
Income (loss) from continuing operations before income taxes$277 $(7,363)$1,281 $(6,063)
(1)Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 40% of the RxTS segment’s total revenues, less than 4% of the Medical-Surgical Solutions segment’s total revenues, and less than 8% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are domestic.
(2)Segment operating profit (loss) includes gross profit, net of total operating expenses, as well as other income, net, for the Company’s reportable segments.
(3)The Company’s U.S. Pharmaceutical segment’s operating profit for the three and nine months ended December 31, 2021 includes $33 million and $79 million, respectively, and for the three and nine months ended December 31, 2020 includes $11 million and $115 million, respectively, of credits related to the last-in, first-out (“LIFO”) method of accounting for inventories. The nine months ended December 31, 2021 includes $46 million of cash receipts for the Company’s share of antitrust legal settlements. The nine months ended December 31, 2020 includes a charge of $50 million recorded in connection with the Company’s estimated liability under the State of New York’s Opioid Stewardship Act.
(4)The Company’s Medical-Surgical Solutions segment’s operating profit for the nine months ended December 31, 2021 includes $164 million, and for the three and nine months ended December 31, 2020 includes $35 million and $49 million, respectively, of inventory charges on certain personal protective equipment and other related products.
(5)The Company’s International segment’s operating loss for the three and nine months ended December 31, 2021 includes charges of $787 million to remeasure assets and liabilities of the U.K. disposal group to the lower of carrying value or fair value less costs to sell, as discussed in more detail in Financial Note 2, “Held for Sale.” The three and nine months ended December 31, 2021 includes charges of $58 million and $400 million to remeasure assets and liabilities of the E.U. disposal group to the lower of carrying value or fair value less costs to sell and to impair certain assets, including internal-use software that will not be utilized in the future, as discussed in more detail in Financial Note 2, “Held for Sale.” The nine months ended December 31, 2021 also includes a gain of $59 million related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. Operating loss for the three and nine months ended December 31, 2020 includes restructuring, impairment, and related charges of $131 million and $189 million, respectively, driven largely by long-lived asset impairment charges of $115 million primarily related to retail pharmacy businesses in Canada and Europe as well as costs associated with the closure of retail pharmacy stores within the U.K. business, as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges,” and a second quarter goodwill impairment charge of $69 million related to one of the Company’s reporting units in Europe, as discussed in more detail in Financial Note 7, “Goodwill and Intangible Assets, Net.” The three and nine months ended December 31, 2020 also includes charges of $47 million and $57 million, respectively, to remeasure to the lower of carrying value or fair value less costs to sell the assets and liabilities of the Company’s German pharmaceutical wholesale business which was contributed to a joint venture.
(6)Corporate expenses, net for the three and nine months ended December 31, 2021 includes credits of $32 million and charges of $117 million primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in more detail in Financial Note 2, “Held for Sale.” Corporate expenses, net for the nine months ended December 31, 2021 also includes charges of $193 million related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” The three and nine months ended December 31, 2021 includes $33 million and $104 million, respectively, and the three and nine months ended December 31, 2020 includes $34 million and $118 million, respectively, of opioid-related costs, primarily litigation expenses. Corporate expenses, net for the three and nine months ended December 31, 2020 includes a charge of $8.1 billion related to the estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” The nine months ended December 31, 2020 also includes a net gain of $131 million recorded in connection with insurance proceeds received during the first quarter of 2021 from the settlement of the shareholder derivative action related to the Company’s controlled substances monitoring program. Corporate expenses, net, for the nine months ended December 31, 2021 includes $104 million and for the three and nine months ended December 31, 2020 includes $30 million and $89 million, respectively, of net gains associated with certain of the Company’s equity investments.
(7)Loss on debt extinguishment for the nine months ended December 31, 2021 consists of a charge of $191 million on debt extinguishment related to the Company’s July 2021 tender offer to redeem a portion of its existing debt, as discussed in more detail in Financial Note 8, “Debt and Financing Activities.”