McKesson Corporation (NYSE: MCK) today reported that revenues for the
third quarter ended December 31, 2012 were $31.2 billion, up 1% compared
to $30.8 billion a year ago. On the basis of U.S. generally accepted
accounting principles (“GAAP”), third-quarter earnings per diluted share
was $1.24 compared to $1.20 a year ago.
Third-quarter Adjusted Earnings per diluted share was $1.41, up 1%
compared to $1.40 a year ago.
For the first nine months of the fiscal year, McKesson generated cash
from operations of $276 million, and ended the quarter with cash and
cash equivalents of $2.7 billion. During the first nine months of the
fiscal year, the company paid $147 million in dividends, had internal
capital spending of $268 million and spent $577 million on acquisitions.
The company also repurchased $360 million of its common stock during the
third quarter.
Distribution Solutions revenues were up 1% in the third quarter, driven
mainly by growth in our U.S. pharmaceutical direct distribution and
services business and growth in our Medical-Surgical distribution
business.
Canadian revenues, on a constant currency basis, increased 3% for the
third quarter. Including the favorable currency impact of 3%, Canadian
revenues increased 6% for the third quarter.
Medical-Surgical distribution and services revenues were up 15% for the
third quarter, driven by market growth, new customers, acquisitions and
one additional sales day.
In the third quarter, Distribution Solutions GAAP operating profit was
$525 million and GAAP operating margin was 1.73%. Third-quarter adjusted
operating profit was $569 million and the adjusted operating margin was
1.87%. Distribution Solutions third-quarter segment results include a
$40 million pre-tax charge related to a legal dispute in our Canadian
business.
Technology Solutions revenues were flat in the third quarter compared to
the prior year. GAAP operating profit was $79 million for the third
quarter and GAAP operating margin was 9.56%. Adjusted operating profit
was $98 million for the third quarter and adjusted operating margin was
11.86%. Technology Solutions third-quarter segment results were impacted
by revenue deferral in our international business.
“Our full year view of the operating performance in our Distribution
Solutions segment is now better than our original expectations, and our
full year view of the operating performance in the primary businesses in
Technology Solution remains unchanged,” said John H. Hammergren,
chairman and chief executive officer. “This operating strength is offset
by the charge in our Canadian business and revenue deferral in our
international technology business, and as a result we are updating our
previous outlook for the fiscal year and now expect Adjusted Earnings
per diluted share of $7.10 to $7.30 for the fiscal year ending March 31,
2013.”
Fiscal Year 2013 Outlook
McKesson expects Adjusted Earnings per diluted share of $7.10 to $7.30
for the fiscal year ending March 31, 2013, which excludes the following
GAAP items:
-
Amortization of acquisition-related intangible assets of approximately
55 cents per diluted share in Fiscal 2013.
-
Acquisition expenses and related adjustments expected to add
approximately 13 cents per diluted share, including the impact of the
$81 million pre-tax gain on business combination related to the
acquisition of the remaining 50% ownership in McKesson’s corporate
headquarters building completed during the first quarter.
-
Litigation reserve adjustments of approximately 15 cents per diluted
share.
Adjusted Earnings
McKesson separately reports financial results on the basis of Adjusted
Earnings. Adjusted Earnings is a non-GAAP financial measure defined as
GAAP income from continuing operations, excluding amortization of
acquisition-related intangible assets, acquisition expenses and related
adjustments, and certain litigation reserve adjustments. A
reconciliation of McKesson’s financial results determined in accordance
with GAAP to Adjusted Earnings is provided in Schedules 2, 3 and 4 of
the financial statement tables included with this release.
Risk Factors
Except for historical information contained in this press release,
matters discussed may constitute “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended, that involve risks and
uncertainties that could cause actual results to differ materially from
those projected, anticipated or implied. These statements may be
identified by their use of forward-looking terminology such as
“believes”, “expects”, “anticipates”, “may”, “will”, “should”, “seeks”,
“approximately”, “intends”, “plans”, “estimates” or the negative of
these words or other comparable terminology. The discussion of financial
trends, strategy, plans or intentions may also include forward-looking
statements. It is not possible to predict or identify all such risks and
uncertainties; however, the most significant of these risks and
uncertainties are described in the company’s Form 10-K, Form 10-Q and
Form 8-K reports filed with the Securities and Exchange Commission and
include, but are not limited to: material adverse resolution of pending
legal proceedings; changes in the U.S. healthcare industry and
regulatory environment; changes in the Canadian healthcare industry and
regulatory environment; competition; substantial defaults in payment or
a material reduction in purchases by, or the loss of, a large customer
or group purchasing organization; the loss of government contracts as a
result of compliance or funding challenges; public health issues in the
U.S. or abroad; implementation delay, malfunction, failure or breach of
internal information systems; the adequacy of insurance to cover
property loss or liability claims; the company’s failure to attract and
retain customers for its software products and solutions due to
integration and implementation challenges, or due to an inability to
keep pace with technological advances; the company’s proprietary
products and services may not be adequately protected, and its products
and solutions may be found to infringe on the rights of others; system
errors or failure of our technology products and solutions to conform to
specifications; disaster or other event causing interruption of customer
access to data residing in our service centers; the delay or extension
of our sales or implementation cycles for external software products;
changes in circumstances that could impair our goodwill or intangible
assets; foreign currency fluctuations or disruptions to our foreign
operations; new or revised tax legislation or challenges to our tax
positions; the company’s ability to successfully identify, consummate
and integrate strategic acquisitions; general economic conditions,
including changes in the financial markets that may affect the
availability and cost of credit to the company, its customers or
suppliers; and changes in accounting principles generally accepted in
the United States of America. The reader should not place undue reliance
on forward-looking statements, which speak only as of the date they are
first made. Except to the extent required by law, the company undertakes
no obligation to publicly release the result of any revisions to these
forward-looking statements to reflect events or circumstances after the
date hereof, or to reflect the occurrence of unanticipated events.
The company has scheduled a conference call for 5:00 PM ET. The dial-in
number for individuals wishing to participate on the call is
719-234-7317. Erin Lampert, vice president, Investor Relations, is the
leader of the call, and the password to join the call is ‘McKesson’. A
replay of this conference call will be available for five calendar days.
The dial-in number for individuals wishing to listen to the replay is
888-203-1112 and the pass code is 8164902. A webcast of the conference
call will also be available live and archived on the company’s Investor
Relations website at www.mckesson.com/investors.
Shareholders are encouraged to review SEC filings and more information
about McKesson, which are located on the company’s website.
About McKesson
McKesson Corporation, currently ranked 14th on the FORTUNE 500, is a
healthcare services and information technology company dedicated to
making the business of healthcare run better. We partner with payers,
hospitals, physician offices, pharmacies, pharmaceutical companies and
others across the spectrum of care to build healthier organizations that
deliver better care to patients in every setting. McKesson helps its
customers improve their financial, operational, and clinical performance
with solutions that include pharmaceutical and medical-surgical supply
management, healthcare information technology, and business and clinical
services. For more information, visit http://www.mckesson.com.
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Schedule 1
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McKESSON CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP
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(unaudited)
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(in millions, except per share amounts)
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Quarter Ended December 31,
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Nine Months Ended December 31,
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2012
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2011
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Change
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2012
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2011
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Change
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Revenues
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$
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31,187
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$
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30,839
|
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1
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%
|
|
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$
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91,835
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|
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$
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91,035
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1
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%
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Cost of sales (1) (3) |
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(29,519
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)
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(29,273
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)
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1
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(86,847
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)
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(86,313
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)
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1
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Gross profit
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1,668
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|
|
1,566
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7
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|
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|
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4,988
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|
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4,722
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|
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6
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|
|
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|
|
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|
|
|
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|
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|
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|
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Operating expenses (2) (3) |
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|
|
|
(1,183
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)
|
|
|
(1,047
|
)
|
|
13
|
|
|
|
|
|
(3,334
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)
|
|
|
(3,135
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)
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6
|
|
|
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Litigation charges (4) |
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-
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(27
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)
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-
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(60
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)
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(145
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)
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(59
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)
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Gain on business combination (5) |
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|
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-
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-
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-
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81
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-
|
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|
-
|
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|
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Total operating expenses
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(1,183
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)
|
|
|
(1,074
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)
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|
10
|
|
|
|
|
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(3,313
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)
|
|
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(3,280
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)
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|
1
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating income
|
|
|
|
|
485
|
|
|
|
492
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|
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(1
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)
|
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|
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1,675
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|
|
|
1,442
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|
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16
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|
|
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Other income (expense), net
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10
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(2
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)
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-
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|
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28
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|
|
|
12
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|
|
133
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|
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Interest expense
|
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(59
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)
|
|
|
(64
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)
|
|
(8
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)
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|
|
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(170
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)
|
|
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(192
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)
|
|
(11
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)
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|
|
|
|
|
|
|
|
|
|
|
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Income before income taxes
|
|
|
|
436
|
|
|
|
426
|
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|
2
|
|
|
|
|
|
1,533
|
|
|
|
1,262
|
|
|
21
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Income tax expense
|
|
|
|
|
(138
|
)
|
|
|
(126
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)
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|
10
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(454
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)
|
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(380
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)
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19
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|
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Net income
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$
|
298
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$
|
300
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(1
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)
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$
|
1,079
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$
|
882
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|
22
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Earnings per common share (6) |
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Diluted
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$
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1.24
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$
|
1.20
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|
3
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|
%
|
|
|
$
|
4.49
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|
|
$
|
3.51
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|
28
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|
%
|
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Basic
|
|
|
|
$
|
1.27
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$
|
1.22
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|
|
4
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|
%
|
|
|
$
|
4.58
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|
$
|
3.57
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|
28
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|
%
|
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|
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|
|
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Weighted average common shares
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|
|
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|
|
|
|
|
|
|
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|
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Diluted
|
|
|
|
|
240
|
|
|
|
251
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|
(4
|
)
|
%
|
|
|
|
240
|
|
|
|
252
|
|
|
(5
|
)
|
%
|
|
Basic
|
|
|
|
|
235
|
|
|
|
246
|
|
|
(4
|
)
|
|
|
|
|
236
|
|
|
|
247
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) |
|
Cost of sales for the third quarter and first nine months of fiscal
year 2013 includes the receipt of $8 million and $27 million in our
Distribution Solutions segment representing our share of settlements
of antitrust class action lawsuits brought against drug
manufacturers.
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(2) |
|
Distribution Solutions segment operating expenses for the third
quarter and first nine months of fiscal year 2013 include a $40
million charge for a legal dispute in our Canadian business.
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(3) |
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Technology Solutions segment results for the third quarter and first
nine months of fiscal year 2012 include product alignment charges of
$42 million, of which $26 million was recorded in cost of sales and
$16 million was recorded in operating expenses.
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(4) |
|
Represent charges for the Average Wholesale Price ("AWP") litigation.
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(5) |
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For the first nine months of fiscal year 2013, operating expenses
include an $81 million pre-tax ($51 million after-tax) gain on
business combination related to the acquisition of the remaining 50%
ownership interest in our corporate headquarters building.
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(6) |
|
Certain computations may reflect rounding adjustments.
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Schedule 2A
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|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS
(NON-GAAP)
|
|
(unaudited)
|
|
(in millions, except per share amounts)
|
|
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|
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|
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|
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Change
|
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Quarter Ended December 31, 2012
|
|
Vs. Prior Quarter
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Amortization
of Acquisition-
Related
Intangibles
|
|
Acquisition
Expenses and
Related
Adjustments
|
|
Litigation
Reserve
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
As
Reported
(GAAP)
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
31,187
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
31,187
|
|
|
1
|
|
%
|
1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
|
$
|
1,668
|
|
|
$
|
3
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,671
|
|
|
7
|
|
|
6
|
|
|
|
Operating expenses (2) |
|
|
|
|
(1,183
|
)
|
|
|
50
|
|
|
|
10
|
|
|
|
-
|
|
|
|
(1,123
|
)
|
|
10
|
|
|
13
|
|
|
|
Other income (expense), net
|
|
|
|
|
10
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
|
Interest expense
|
|
|
|
|
(59
|
)
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
(58
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
|
Income before income taxes
|
|
|
|
|
436
|
|
|
|
53
|
|
|
|
11
|
|
|
|
-
|
|
|
|
500
|
|
|
2
|
|
|
(2
|
)
|
|
|
Income tax expense
|
|
|
|
|
(138
|
)
|
|
|
(20
|
)
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(160
|
)
|
|
10
|
|
|
1
|
|
|
|
Net Income
|
|
|
|
$
|
298
|
|
|
$
|
33
|
|
|
$
|
9
|
|
|
$
|
-
|
|
|
$
|
340
|
|
|
(1
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share (4) |
|
|
|
$
|
1.24
|
|
|
$
|
0.14
|
|
|
$
|
0.03
|
|
|
$
|
-
|
|
|
$
|
1.41
|
|
|
3
|
|
%
|
1
|
|
%
|
|
Diluted weighted average common shares
|
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
(4
|
)
|
%
|
(4
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Amortization
of Acquisition-
Related
Intangibles
|
|
Acquisition
Expenses and
Related
Adjustments
|
|
Litigation
Reserve
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
30,839
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
30,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (3) |
|
|
|
$
|
1,566
|
|
|
$
|
5
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,571
|
|
|
|
|
|
|
|
Operating expenses (3) |
|
|
|
|
(1,074
|
)
|
|
|
44
|
|
|
|
8
|
|
|
|
27
|
|
|
|
(995
|
)
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(64
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64
|
)
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
426
|
|
|
|
49
|
|
|
|
8
|
|
|
|
27
|
|
|
|
510
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
(126
|
)
|
|
|
(18
|
)
|
|
|
(3
|
)
|
|
|
(12
|
)
|
|
|
(159
|
)
|
|
|
|
|
|
|
Net Income
|
|
|
|
$
|
300
|
|
|
$
|
31
|
|
|
$
|
5
|
|
|
$
|
15
|
|
|
$
|
351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share (4) |
|
|
|
$
|
1.20
|
|
|
$
|
0.12
|
|
|
$
|
0.02
|
|
|
$
|
0.06
|
|
|
$
|
1.40
|
|
|
|
|
|
|
|
Diluted weighted average common shares
|
|
|
|
|
251
|
|
|
|
251
|
|
|
|
251
|
|
|
|
251
|
|
|
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Gross profit for the third quarter of fiscal year 2013 includes the
receipt of $8 million in our Distribution Solutions segment
representing our share of settlements of antitrust class action
lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Distribution Solutions segment operating expenses for the third
quarter of fiscal year 2013 include a $40 million charge for a legal
dispute in our Canadian business.
|
|
|
|
|
|
(3) |
|
Technology Solutions segment results for the third quarter of fiscal
year 2012 include product alignment charges of $42 million, of which
$26 million was recorded in cost of sales and $16 million was
recorded in operating expenses.
|
|
|
|
|
|
(4) |
|
Certain computations may reflect rounding adjustments.
|
|
|
|
|
|
Adjusted Earnings (Non-GAAP) Financial Information
|
|
|
|
Adjusted Earnings represents income from continuing operations,
excluding the effects of the following items from the Company’s GAAP
financial results, including the related income tax effects:
|
|
|
|
Amortization of acquisition-related
intangibles - Amortization expense of acquired intangible
assets purchased in connection with acquisitions by the Company.
|
|
|
|
Acquisition expenses and related adjustments
- Transaction and integration expenses that are directly related
to acquisitions by the Company. Examples include transaction
closing costs, professional service fees, restructuring or
severance charges, retention payments, employee relocation
expenses, facility or other exit-related expenses, recoveries of
acquisition-related expenses or post-closing expenses, bridge loan
fees, and gains or losses on business combinations.
|
|
|
|
Litigation reserve adjustments -
Adjustments to the Company’s reserves, including accrued interest,
for estimated probable losses for its Average Wholesale Price and
Securities Litigation matters, as such terms were defined in the
Company’s Annual Reports on Form 10-K for the fiscal years ended
March 31, 2012 and 2009.
|
|
|
|
Income taxes on Adjusted Earnings are calculated in accordance with
Accounting Standards Codification 740, “Income Taxes,” which is the
same accounting principles used by the Company when presenting its
GAAP financial results.
|
|
|
|
The Company believes the presentation of non-GAAP measures such as
Adjusted Earnings provides useful supplemental information to
investors with regard to its core operating performance, as well as
assists with the comparison of its past financial performance to the
Company’s future financial results. Moreover, the Company believes
that the presentation of Adjusted Earnings assists investors’
ability to compare its financial results to those of other companies
in the same industry. However, the Company's Adjusted Earnings
measure may be defined and calculated differently by other companies
in the same industry.
|
|
|
|
The Company internally uses non-GAAP financial measures such as
Adjusted Earnings in connection with its own financial planning and
reporting processes. Specifically, Adjusted Earnings serves as one
of the measures management utilizes when allocating resources,
deploying capital and assessing business performance and employee
incentive compensation. Nonetheless, non-GAAP financial results and
related measures disclosed by the Company should not be considered a
substitute for, nor superior to, financial results and measures as
determined or calculated in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP OPERATING RESULTS TO ADJUSTED EARNINGS
(NON-GAAP)
|
|
(unaudited)
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
|
|
|
Nine Months Ended December 31, 2012
|
|
Vs. Prior Period
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Amortization
of Acquisition-
Related
Intangibles
|
|
Acquisition
Expenses and
Related
Adjustments
|
|
Litigation
Reserve
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
As
Reported
(GAAP)
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
91,835
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
91,835
|
|
|
1
|
|
%
|
1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) |
|
|
|
$
|
4,988
|
|
|
$
|
11
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4,999
|
|
|
6
|
|
|
6
|
|
|
|
Operating expenses (2) (3) |
|
|
|
|
(3,313
|
)
|
|
|
141
|
|
|
|
(66
|
)
|
|
|
60
|
|
|
|
(3,178
|
)
|
|
1
|
|
|
7
|
|
|
|
Other income, net
|
|
|
|
|
28
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
28
|
|
|
133
|
|
|
133
|
|
|
|
Interest expense
|
|
|
|
|
(170
|
)
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
(169
|
)
|
|
(11
|
)
|
|
(12
|
)
|
|
|
Income before income taxes
|
|
|
|
|
1,533
|
|
|
|
152
|
|
|
|
(65
|
)
|
|
|
60
|
|
|
|
1,680
|
|
|
21
|
|
|
6
|
|
|
|
Income tax expense
|
|
|
|
|
(454
|
)
|
|
|
(57
|
)
|
|
|
27
|
|
|
|
(23
|
)
|
|
|
(507
|
)
|
|
19
|
|
|
2
|
|
|
|
Net Income
|
|
|
|
$
|
1,079
|
|
|
$
|
95
|
|
|
$
|
(38
|
)
|
|
$
|
37
|
|
|
$
|
1,173
|
|
|
22
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share (5) |
|
|
|
$
|
4.49
|
|
|
$
|
0.40
|
|
|
$
|
(0.16
|
)
|
|
$
|
0.15
|
|
|
$
|
4.88
|
|
|
28
|
|
%
|
13
|
|
%
|
|
Diluted weighted average common shares
|
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
|
240
|
|
|
(5
|
)
|
%
|
(5
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Amortization
of Acquisition-
Related
Intangibles
|
|
Acquisition
Expenses and
Related
Adjustments
|
|
Litigation
Reserve
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
91,035
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
91,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (4) |
|
|
|
$
|
4,722
|
|
|
$
|
16
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4,738
|
|
|
|
|
|
|
|
Operating expenses (4) |
|
|
|
|
(3,280
|
)
|
|
|
131
|
|
|
|
26
|
|
|
|
145
|
|
|
|
(2,978
|
)
|
|
|
|
|
|
|
Other income, net
|
|
|
|
|
12
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(192
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(192
|
)
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
1,262
|
|
|
|
147
|
|
|
|
26
|
|
|
|
145
|
|
|
|
1,580
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
(380
|
)
|
|
|
(56
|
)
|
|
|
(9
|
)
|
|
|
(53
|
)
|
|
|
(498
|
)
|
|
|
|
|
|
|
Net Income
|
|
|
|
$
|
882
|
|
|
$
|
91
|
|
|
$
|
17
|
|
|
$
|
92
|
|
|
$
|
1,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share (5) |
|
|
|
$
|
3.51
|
|
|
$
|
0.36
|
|
|
$
|
0.06
|
|
|
$
|
0.37
|
|
|
$
|
4.30
|
|
|
|
|
|
|
|
Diluted weighted average common shares
|
|
|
|
|
252
|
|
|
|
252
|
|
|
|
252
|
|
|
|
252
|
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Gross profit for the first nine months of fiscal year 2013 includes
the receipt of $27 million in our Distribution Solutions segment
representing our share of settlements of antitrust class action
lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Distribution Solutions segment operating expenses for the first nine
months of fiscal year 2013 include a $40 million charge for a legal
dispute in our Canadian business.
|
|
|
|
|
|
(3) |
|
For the first nine months of fiscal year 2013, operating expenses,
as reported under GAAP, include an $81 million pre-tax ($51 million
after-tax) gain on business combination related to the acquisition
of the remaining 50% ownership interest in our corporate
headquarters building.
|
|
|
|
|
|
(4) |
|
Technology Solutions segment results for the first nine months of
fiscal year 2012 include product alignment charges of $42 million,
of which $26 million was recorded in cost of sales and $16 million
was recorded in operating expenses.
|
|
|
|
|
|
(5) |
|
Certain computations may reflect rounding adjustments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED
EARNINGS (NON-GAAP)
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2012
|
|
|
Quarter Ended December 31, 2011
|
|
|
Change
|
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
As Reported
(GAAP)
|
|
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
As
Reported
(GAAP)
|
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct distribution & services
|
|
|
|
$
|
22,386
|
|
|
$
|
-
|
|
|
$
|
22,386
|
|
|
|
$
|
21,585
|
|
|
$
|
-
|
|
|
$
|
21,585
|
|
|
|
4
|
|
%
|
|
4
|
|
%
|
|
Sales to customers' warehouses
|
|
|
|
|
4,468
|
|
|
|
-
|
|
|
|
4,468
|
|
|
|
|
5,198
|
|
|
|
-
|
|
|
|
5,198
|
|
|
|
(14
|
)
|
|
|
(14
|
)
|
|
|
Total U.S. pharmaceutical distribution & services
|
|
|
|
|
26,854
|
|
|
|
-
|
|
|
|
26,854
|
|
|
|
|
26,783
|
|
|
|
-
|
|
|
|
26,783
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Canada pharmaceutical distribution & services
|
|
|
|
|
2,633
|
|
|
|
-
|
|
|
|
2,633
|
|
|
|
|
2,473
|
|
|
|
-
|
|
|
|
2,473
|
|
|
|
6
|
|
|
|
6
|
|
|
|
Medical-Surgical distribution & services
|
|
|
|
|
874
|
|
|
|
-
|
|
|
|
874
|
|
|
|
|
760
|
|
|
|
-
|
|
|
|
760
|
|
|
|
15
|
|
|
|
15
|
|
|
|
Total Distribution Solutions
|
|
|
|
|
30,361
|
|
|
|
-
|
|
|
|
30,361
|
|
|
|
|
30,016
|
|
|
|
-
|
|
|
|
30,016
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
661
|
|
|
|
-
|
|
|
|
661
|
|
|
|
|
643
|
|
|
|
-
|
|
|
|
643
|
|
|
|
3
|
|
|
|
3
|
|
|
|
Software & software systems
|
|
|
|
|
145
|
|
|
|
-
|
|
|
|
145
|
|
|
|
|
152
|
|
|
|
-
|
|
|
|
152
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
Hardware
|
|
|
|
|
20
|
|
|
|
-
|
|
|
|
20
|
|
|
|
|
28
|
|
|
|
-
|
|
|
|
28
|
|
|
|
(29
|
)
|
|
|
(29
|
)
|
|
|
Total Technology Solutions
|
|
|
|
|
826
|
|
|
|
-
|
|
|
|
826
|
|
|
|
|
823
|
|
|
|
-
|
|
|
|
823
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Revenues
|
|
|
|
$
|
31,187
|
|
|
$
|
-
|
|
|
$
|
31,187
|
|
|
|
$
|
30,839
|
|
|
$
|
-
|
|
|
$
|
30,839
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) |
|
|
|
$
|
1,287
|
|
|
$
|
-
|
|
|
$
|
1,287
|
|
|
|
$
|
1,201
|
|
|
$
|
-
|
|
|
$
|
1,201
|
|
|
|
7
|
|
|
|
7
|
|
|
|
Technology Solutions (2) |
|
|
|
|
381
|
|
|
|
3
|
|
|
|
384
|
|
|
|
|
365
|
|
|
|
5
|
|
|
|
370
|
|
|
|
4
|
|
|
|
4
|
|
|
|
Gross profit
|
|
|
|
$
|
1,668
|
|
|
$
|
3
|
|
|
$
|
1,671
|
|
|
|
$
|
1,566
|
|
|
$
|
5
|
|
|
$
|
1,571
|
|
|
|
7
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (3) (4) |
|
|
|
$
|
(769
|
)
|
|
$
|
44
|
|
|
$
|
(725
|
)
|
|
|
$
|
(690
|
)
|
|
$
|
62
|
|
|
$
|
(628
|
)
|
|
|
11
|
|
|
|
15
|
|
|
|
Technology Solutions (2) |
|
|
|
|
(302
|
)
|
|
|
16
|
|
|
|
(286
|
)
|
|
|
|
(297
|
)
|
|
|
15
|
|
|
|
(282
|
)
|
|
|
2
|
|
|
|
1
|
|
|
|
Corporate
|
|
|
|
|
(112
|
)
|
|
|
-
|
|
|
|
(112
|
)
|
|
|
|
(87
|
)
|
|
|
2
|
|
|
|
(85
|
)
|
|
|
29
|
|
|
|
32
|
|
|
|
Operating expenses
|
|
|
|
$
|
(1,183
|
)
|
|
$
|
60
|
|
|
$
|
(1,123
|
)
|
|
|
$
|
(1,074
|
)
|
|
$
|
79
|
|
|
$
|
(995
|
)
|
|
|
10
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions
|
|
|
|
$
|
7
|
|
|
$
|
-
|
|
|
$
|
7
|
|
|
|
$
|
(1
|
)
|
|
$
|
-
|
|
|
$
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Technology Solutions
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Corporate
|
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Other income (expense), net
|
|
|
|
$
|
10
|
|
|
$
|
-
|
|
|
$
|
10
|
|
|
|
$
|
(2
|
)
|
|
$
|
-
|
|
|
$
|
(2
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) (3) (4) |
|
|
|
$
|
525
|
|
|
$
|
44
|
|
|
$
|
569
|
|
|
|
$
|
510
|
|
|
$
|
62
|
|
|
$
|
572
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
Technology Solutions (2) |
|
|
|
|
79
|
|
|
|
19
|
|
|
|
98
|
|
|
|
|
69
|
|
|
|
20
|
|
|
|
89
|
|
|
|
14
|
|
|
|
10
|
|
|
|
Operating profit
|
|
|
|
|
604
|
|
|
|
63
|
|
|
|
667
|
|
|
|
|
579
|
|
|
|
82
|
|
|
|
661
|
|
|
|
4
|
|
|
|
1
|
|
|
|
Corporate
|
|
|
|
|
(109
|
)
|
|
|
-
|
|
|
|
(109
|
)
|
|
|
|
(89
|
)
|
|
|
2
|
|
|
|
(87
|
)
|
|
|
22
|
|
|
|
25
|
|
|
|
Income before interest expense and income taxes
|
|
|
|
$
|
495
|
|
|
$
|
63
|
|
|
$
|
558
|
|
|
|
$
|
490
|
|
|
$
|
84
|
|
|
$
|
574
|
|
|
|
1
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit as a % of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) (3) (4) |
|
|
|
|
1.73
|
|
%
|
|
|
|
|
1.87
|
|
%
|
|
|
1.70
|
|
%
|
|
|
|
|
1.91
|
|
%
|
|
3
|
|
bp
|
|
(4
|
)
|
bp
|
|
Technology Solutions (2) |
|
|
|
|
9.56
|
|
|
|
|
|
|
|
11.86
|
|
|
|
|
8.38
|
|
|
|
|
|
|
10.81
|
|
|
|
118
|
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Results for the third quarter of fiscal year 2013 include the
receipt of $8 million representing our share of settlements of
antitrust class action lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Results for the third quarter of fiscal year 2012 include product
alignment charges of $42 million, of which $26 million was recorded
in cost of sales and $16 million was recorded in operating expenses.
|
|
|
|
|
|
(3) |
|
Results for the third quarter of fiscal year 2013 include a $40
million charge for a legal dispute in our Canadian business.
|
|
|
|
|
|
(4) |
|
For the third quarter of fiscal year 2012, results, as reported
under GAAP, include an AWP litigation charge of $27 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 3B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED
EARNINGS (NON-GAAP)
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2012
|
|
|
Nine Months Ended December 31, 2011
|
|
|
Change
|
|
|
|
|
|
|
As Reported
(GAAP)
|
|
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
As Reported
(GAAP)
|
|
Adjustments
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
As
Reported
(GAAP)
|
|
Adjusted
Earnings
(Non-GAAP)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct distribution & services
|
|
|
|
$
|
64,625
|
|
|
$
|
-
|
|
|
$
|
64,625
|
|
|
|
$
|
63,484
|
|
|
$
|
-
|
|
|
$
|
63,484
|
|
|
|
2
|
|
%
|
2
|
|
%
|
|
Sales to customers' warehouses
|
|
|
|
|
14,621
|
|
|
|
-
|
|
|
|
14,621
|
|
|
|
|
14,998
|
|
|
|
-
|
|
|
|
14,998
|
|
|
|
(3
|
)
|
|
(3
|
)
|
|
|
Total U.S. pharmaceutical distribution & services
|
|
|
|
|
79,246
|
|
|
|
-
|
|
|
|
79,246
|
|
|
|
|
78,482
|
|
|
|
-
|
|
|
|
78,482
|
|
|
|
1
|
|
|
1
|
|
|
|
Canada pharmaceutical distribution & services
|
|
|
|
|
7,559
|
|
|
|
-
|
|
|
|
7,559
|
|
|
|
|
7,739
|
|
|
|
-
|
|
|
|
7,739
|
|
|
|
(2
|
)
|
|
(2
|
)
|
|
|
Medical-Surgical distribution & services
|
|
|
|
|
2,542
|
|
|
|
-
|
|
|
|
2,542
|
|
|
|
|
2,364
|
|
|
|
-
|
|
|
|
2,364
|
|
|
|
8
|
|
|
8
|
|
|
|
Total Distribution Solutions
|
|
|
|
|
89,347
|
|
|
|
-
|
|
|
|
89,347
|
|
|
|
|
88,585
|
|
|
|
-
|
|
|
|
88,585
|
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
|
|
|
1,983
|
|
|
|
-
|
|
|
|
1,983
|
|
|
|
|
1,916
|
|
|
|
-
|
|
|
|
1,916
|
|
|
|
3
|
|
|
3
|
|
|
|
Software & software systems
|
|
|
|
|
432
|
|
|
|
-
|
|
|
|
432
|
|
|
|
|
449
|
|
|
|
-
|
|
|
|
449
|
|
|
|
(4
|
)
|
|
(4
|
)
|
|
|
Hardware
|
|
|
|
|
73
|
|
|
|
-
|
|
|
|
73
|
|
|
|
|
85
|
|
|
|
-
|
|
|
|
85
|
|
|
|
(14
|
)
|
|
(14
|
)
|
|
|
Total Technology Solutions
|
|
|
|
|
2,488
|
|
|
|
-
|
|
|
|
2,488
|
|
|
|
|
2,450
|
|
|
|
-
|
|
|
|
2,450
|
|
|
|
2
|
|
|
2
|
|
|
|
Revenues
|
|
|
|
$
|
91,835
|
|
|
$
|
-
|
|
|
$
|
91,835
|
|
|
|
$
|
91,035
|
|
|
$
|
-
|
|
|
$
|
91,035
|
|
|
|
1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) |
|
|
|
$
|
3,841
|
|
|
$
|
2
|
|
|
$
|
3,843
|
|
|
|
$
|
3,590
|
|
|
$
|
1
|
|
|
$
|
3,591
|
|
|
|
7
|
|
|
7
|
|
|
|
Technology Solutions (2) |
|
|
|
|
1,147
|
|
|
|
9
|
|
|
|
1,156
|
|
|
|
|
1,132
|
|
|
|
15
|
|
|
|
1,147
|
|
|
|
1
|
|
|
1
|
|
|
|
Gross profit
|
|
|
|
$
|
4,988
|
|
|
$
|
11
|
|
|
$
|
4,999
|
|
|
|
$
|
4,722
|
|
|
$
|
16
|
|
|
$
|
4,738
|
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (3) (4) |
|
|
|
$
|
(2,212
|
)
|
|
$
|
173
|
|
|
$
|
(2,039
|
)
|
|
|
$
|
(2,136
|
)
|
|
$
|
258
|
|
|
$
|
(1,878
|
)
|
|
|
4
|
|
|
9
|
|
|
|
Technology Solutions (2) |
|
|
|
|
(881
|
)
|
|
|
43
|
|
|
|
(838
|
)
|
|
|
|
(857
|
)
|
|
|
42
|
|
|
|
(815
|
)
|
|
|
3
|
|
|
3
|
|
|
|
Corporate (5) |
|
|
|
|
(220
|
)
|
|
|
(81
|
)
|
|
|
(301
|
)
|
|
|
|
(287
|
)
|
|
|
2
|
|
|
|
(285
|
)
|
|
|
(23
|
)
|
|
6
|
|
|
|
Operating expenses
|
|
|
|
$
|
(3,313
|
)
|
|
$
|
135
|
|
|
$
|
(3,178
|
)
|
|
|
$
|
(3,280
|
)
|
|
$
|
302
|
|
|
$
|
(2,978
|
)
|
|
|
1
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME, NET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions
|
|
|
|
$
|
17
|
|
|
$
|
-
|
|
|
$
|
17
|
|
|
|
$
|
8
|
|
|
$
|
-
|
|
|
$
|
8
|
|
|
|
113
|
|
|
113
|
|
|
|
Technology Solutions
|
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
50
|
|
|
50
|
|
|
|
Corporate
|
|
|
|
|
8
|
|
|
|
-
|
|
|
|
8
|
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
300
|
|
|
300
|
|
|
|
Other income, net
|
|
|
|
$
|
28
|
|
|
$
|
-
|
|
|
$
|
28
|
|
|
|
$
|
12
|
|
|
$
|
-
|
|
|
$
|
12
|
|
|
|
133
|
|
|
133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) (3) (4) |
|
|
|
$
|
1,646
|
|
|
$
|
175
|
|
|
$
|
1,821
|
|
|
|
$
|
1,462
|
|
|
$
|
259
|
|
|
$
|
1,721
|
|
|
|
13
|
|
|
6
|
|
|
|
Technology Solutions (2) |
|
|
|
|
269
|
|
|
|
52
|
|
|
|
321
|
|
|
|
|
277
|
|
|
|
57
|
|
|
|
334
|
|
|
|
(3
|
)
|
|
(4
|
)
|
|
|
Operating profit
|
|
|
|
|
1,915
|
|
|
|
227
|
|
|
|
2,142
|
|
|
|
|
1,739
|
|
|
|
316
|
|
|
|
2,055
|
|
|
|
10
|
|
|
4
|
|
|
|
Corporate
|
|
|
|
|
(212
|
)
|
|
|
(81
|
)
|
|
|
(293
|
)
|
|
|
|
(285
|
)
|
|
|
2
|
|
|
|
(283
|
)
|
|
|
(26
|
)
|
|
4
|
|
|
|
Income before interest expense and income taxes
|
|
|
|
$
|
1,703
|
|
|
$
|
146
|
|
|
$
|
1,849
|
|
|
|
$
|
1,454
|
|
|
$
|
318
|
|
|
$
|
1,772
|
|
|
|
17
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit as a % of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution Solutions (1) (3) (4) |
|
|
|
|
1.84
|
|
%
|
|
|
|
|
2.04
|
|
%
|
|
|
1.65
|
|
%
|
|
|
|
|
1.94
|
|
%
|
|
19
|
|
bp
|
10
|
|
bp
|
|
Technology Solutions (2) |
|
|
|
|
10.81
|
|
|
|
|
|
|
12.90
|
|
|
|
|
11.31
|
|
|
|
|
|
|
13.63
|
|
|
|
(50
|
)
|
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Results for the first nine months of fiscal year 2013 include the
receipt of $27 million representing our share of settlements of
antitrust class action lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Results for the first nine months of fiscal year 2012 include
product alignment charges of $42 million, of which $26 million was
recorded in cost of sales and $16 million was recorded in operating
expenses.
|
|
|
|
|
|
(3) |
|
Results for the first nine months of fiscal year 2013 include a $40
million charge for a legal dispute in our Canadian business.
|
|
|
|
|
|
(4) |
|
For the first nine months of fiscal years 2013 and 2012, results, as
reported under GAAP, include AWP litigation charges of $60 million
and $145 million.
|
|
|
|
|
|
(5) |
|
For the first nine months of fiscal year 2013, operating expenses,
as reported under GAAP, include an $81 million pre-tax gain on
business combination related to the acquisition of the remaining 50%
ownership interest in our corporate headquarters building.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED
EARNINGS (NON-GAAP) - BY ADJUSTMENT TYPE
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended December 31, 2012
|
|
|
|
Quarter Ended December 31, 2011
|
|
|
|
|
|
Distribution
Solutions
|
|
Technology
Solutions
|
|
Corporate
& Interest
Expense
|
|
Total
|
|
|
|
Distribution
Solutions
|
|
Technology
Solutions
|
|
Corporate
& Interest
Expense
|
|
Total
|
|
As Reported (GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
30,361
|
|
|
$
|
826
|
|
|
$
|
-
|
|
|
$
|
31,187
|
|
|
|
|
$
|
30,016
|
|
|
$
|
823
|
|
|
$
|
-
|
|
|
$
|
30,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) (2) |
|
|
|
$
|
1,287
|
|
|
$
|
381
|
|
|
$
|
-
|
|
|
$
|
1,668
|
|
|
|
|
$
|
1,201
|
|
|
$
|
365
|
|
|
$
|
-
|
|
|
$
|
1,566
|
|
|
Operating expenses (2) (3) |
|
|
|
|
(769
|
)
|
|
|
(302
|
)
|
|
|
(112
|
)
|
|
|
(1,183
|
)
|
|
|
|
|
(690
|
)
|
|
|
(297
|
)
|
|
|
(87
|
)
|
|
|
(1,074
|
)
|
|
Other income (expense), net
|
|
|
|
|
7
|
|
|
|
-
|
|
|
|
3
|
|
|
|
10
|
|
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Income before interest expense and income taxes
|
|
|
|
|
525
|
|
|
|
79
|
|
|
|
(109
|
)
|
|
|
495
|
|
|
|
|
|
510
|
|
|
|
69
|
|
|
|
(89
|
)
|
|
|
490
|
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(59
|
)
|
|
|
(59
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64
|
)
|
|
|
(64
|
)
|
|
Income before income taxes
|
|
|
|
$
|
525
|
|
|
$
|
79
|
|
|
$
|
(168
|
)
|
|
$
|
436
|
|
|
|
|
$
|
510
|
|
|
$
|
69
|
|
|
$
|
(153
|
)
|
|
$
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
$
|
-
|
|
|
$
|
3
|
|
|
$
|
-
|
|
|
$
|
3
|
|
|
|
|
$
|
-
|
|
|
$
|
5
|
|
|
$
|
-
|
|
|
$
|
5
|
|
|
Operating expenses
|
|
|
|
|
37
|
|
|
|
13
|
|
|
|
-
|
|
|
|
50
|
|
|
|
|
|
31
|
|
|
|
13
|
|
|
|
-
|
|
|
|
44
|
|
|
Amortization of acquisition-related intangibles
|
|
|
|
|
37
|
|
|
|
16
|
|
|
|
-
|
|
|
|
53
|
|
|
|
|
|
31
|
|
|
|
18
|
|
|
|
-
|
|
|
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
7
|
|
|
|
3
|
|
|
|
-
|
|
|
|
10
|
|
|
|
|
|
4
|
|
|
|
2
|
|
|
|
2
|
|
|
|
8
|
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Acquisition expenses and related adjustments
|
|
|
|
|
7
|
|
|
|
3
|
|
|
|
1
|
|
|
|
11
|
|
|
|
|
|
4
|
|
|
|
2
|
|
|
|
2
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - Litigation reserve adjustments
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
27
|
|
|
|
-
|
|
|
|
-
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax adjustments
|
|
|
|
$
|
44
|
|
|
$
|
19
|
|
|
$
|
1
|
|
|
$
|
64
|
|
|
|
|
$
|
62
|
|
|
$
|
20
|
|
|
$
|
2
|
|
|
$
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings (Non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
30,361
|
|
|
$
|
826
|
|
|
$
|
-
|
|
|
$
|
31,187
|
|
|
|
|
$
|
30,016
|
|
|
$
|
823
|
|
|
$
|
-
|
|
|
$
|
30,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) (2) |
|
|
|
$
|
1,287
|
|
|
$
|
384
|
|
|
$
|
-
|
|
|
$
|
1,671
|
|
|
|
|
$
|
1,201
|
|
|
$
|
370
|
|
|
$
|
-
|
|
|
$
|
1,571
|
|
|
Operating expenses (2) (3) |
|
|
|
|
(725
|
)
|
|
|
(286
|
)
|
|
|
(112
|
)
|
|
|
(1,123
|
)
|
|
|
|
|
(628
|
)
|
|
|
(282
|
)
|
|
|
(85
|
)
|
|
|
(995
|
)
|
|
Other income (expense), net
|
|
|
|
|
7
|
|
|
|
-
|
|
|
|
3
|
|
|
|
10
|
|
|
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Income before interest expense and income taxes
|
|
|
|
|
569
|
|
|
|
98
|
|
|
|
(109
|
)
|
|
|
558
|
|
|
|
|
|
572
|
|
|
|
89
|
|
|
|
(87
|
)
|
|
|
574
|
|
|
Interest income (expense), net
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(58
|
)
|
|
|
(58
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64
|
)
|
|
|
(64
|
)
|
|
Income before income taxes
|
|
|
|
$
|
569
|
|
|
$
|
98
|
|
|
$
|
(167
|
)
|
|
$
|
500
|
|
|
|
|
$
|
572
|
|
|
$
|
89
|
|
|
$
|
(151
|
)
|
|
$
|
510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Gross profit for the third quarter of fiscal year 2013 includes the
receipt of $8 million in our Distribution Solutions segment
representing our share of settlements of antitrust class action
lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Technology Solutions segment results for the third quarter of fiscal
year 2012 include product alignment charges of $42 million, of which
$26 million was recorded in cost of sales and $16 million was
recorded in operating expenses.
|
|
|
|
|
|
(3) |
|
Distribution Solutions segment operating expenses for the third
quarter of fiscal year 2013 include a $40 million charge for a legal
dispute in our Canadian business.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
RECONCILIATION OF GAAP SEGMENT FINANCIAL RESULTS TO ADJUSTED
EARNINGS (NON-GAAP) - BY ADJUSTMENT TYPE
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended December 31, 2012
|
|
|
|
Nine Months Ended December 31, 2011
|
|
|
|
|
|
Distribution
Solutions
|
|
Technology
Solutions
|
|
Corporate
& Interest
Expense
|
|
Total
|
|
|
|
Distribution
Solutions
|
|
Technology
Solutions
|
|
Corporate
& Interest
Expense
|
|
Total
|
|
As Reported (GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
89,347
|
|
|
$
|
2,488
|
|
|
$
|
-
|
|
|
$
|
91,835
|
|
|
|
|
$
|
88,585
|
|
|
$
|
2,450
|
|
|
$
|
-
|
|
|
$
|
91,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) (2) |
|
|
|
$
|
3,841
|
|
|
$
|
1,147
|
|
|
$
|
-
|
|
|
$
|
4,988
|
|
|
|
|
$
|
3,590
|
|
|
$
|
1,132
|
|
|
$
|
-
|
|
|
$
|
4,722
|
|
|
Operating expenses (2) (3) (4) |
|
|
|
|
(2,212
|
)
|
|
|
(881
|
)
|
|
|
(220
|
)
|
|
|
(3,313
|
)
|
|
|
|
|
(2,136
|
)
|
|
|
(857
|
)
|
|
|
(287
|
)
|
|
|
(3,280
|
)
|
|
Other income, net
|
|
|
|
|
17
|
|
|
|
3
|
|
|
|
8
|
|
|
|
28
|
|
|
|
|
|
8
|
|
|
|
2
|
|
|
|
2
|
|
|
|
12
|
|
|
Income before interest expense and income taxes
|
|
|
|
|
1,646
|
|
|
|
269
|
|
|
|
(212
|
)
|
|
|
1,703
|
|
|
|
|
|
1,462
|
|
|
|
277
|
|
|
|
(285
|
)
|
|
|
1,454
|
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(170
|
)
|
|
|
(170
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(192
|
)
|
|
|
(192
|
)
|
|
Income before income taxes
|
|
|
|
$
|
1,646
|
|
|
$
|
269
|
|
|
$
|
(382
|
)
|
|
$
|
1,533
|
|
|
|
|
$
|
1,462
|
|
|
$
|
277
|
|
|
$
|
(477
|
)
|
|
$
|
1,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
-
|
|
|
$
|
11
|
|
|
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
-
|
|
|
$
|
16
|
|
|
Operating expenses
|
|
|
|
|
103
|
|
|
|
38
|
|
|
|
-
|
|
|
|
141
|
|
|
|
|
|
93
|
|
|
|
38
|
|
|
|
-
|
|
|
|
131
|
|
|
Amortization of acquisition-related intangibles
|
|
|
|
|
105
|
|
|
|
47
|
|
|
|
-
|
|
|
|
152
|
|
|
|
|
|
94
|
|
|
|
53
|
|
|
|
-
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
10
|
|
|
|
5
|
|
|
|
(81
|
)
|
|
|
(66
|
)
|
|
|
|
|
20
|
|
|
|
4
|
|
|
|
2
|
|
|
|
26
|
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Acquisition expenses and related adjustments
|
|
|
|
|
10
|
|
|
|
5
|
|
|
|
(80
|
)
|
|
|
(65
|
)
|
|
|
|
|
20
|
|
|
|
4
|
|
|
|
2
|
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses - Litigation reserve adjustments
|
|
|
|
|
60
|
|
|
|
-
|
|
|
|
-
|
|
|
|
60
|
|
|
|
|
|
145
|
|
|
|
-
|
|
|
|
-
|
|
|
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax adjustments
|
|
|
|
$
|
175
|
|
|
$
|
52
|
|
|
$
|
(80
|
)
|
|
$
|
147
|
|
|
|
|
$
|
259
|
|
|
$
|
57
|
|
|
$
|
2
|
|
|
$
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings (Non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
$
|
89,347
|
|
|
$
|
2,488
|
|
|
$
|
-
|
|
|
$
|
91,835
|
|
|
|
|
$
|
88,585
|
|
|
$
|
2,450
|
|
|
$
|
-
|
|
|
$
|
91,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (1) (2) |
|
|
|
$
|
3,843
|
|
|
$
|
1,156
|
|
|
$
|
-
|
|
|
$
|
4,999
|
|
|
|
|
$
|
3,591
|
|
|
$
|
1,147
|
|
|
$
|
-
|
|
|
$
|
4,738
|
|
|
Operating expenses (2) (3) |
|
|
|
|
(2,039
|
)
|
|
|
(838
|
)
|
|
|
(301
|
)
|
|
|
(3,178
|
)
|
|
|
|
|
(1,878
|
)
|
|
|
(815
|
)
|
|
|
(285
|
)
|
|
|
(2,978
|
)
|
|
Other income, net
|
|
|
|
|
17
|
|
|
|
3
|
|
|
|
8
|
|
|
|
28
|
|
|
|
|
|
8
|
|
|
|
2
|
|
|
|
2
|
|
|
|
12
|
|
|
Income before interest expense and income taxes
|
|
|
|
|
1,821
|
|
|
|
321
|
|
|
|
(293
|
)
|
|
|
1,849
|
|
|
|
|
|
1,721
|
|
|
|
334
|
|
|
|
(283
|
)
|
|
|
1,772
|
|
|
Interest expense
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(169
|
)
|
|
|
(169
|
)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(192
|
)
|
|
|
(192
|
)
|
|
Income before income taxes
|
|
|
|
$
|
1,821
|
|
|
$
|
321
|
|
|
$
|
(462
|
)
|
|
$
|
1,680
|
|
|
|
|
$
|
1,721
|
|
|
$
|
334
|
|
|
$
|
(475
|
)
|
|
$
|
1,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Gross profit for the first nine months of fiscal year 2013 includes
the receipt of $27 million in our Distribution Solutions segment
representing our share of settlements of antitrust class action
lawsuits brought against drug manufacturers.
|
|
|
|
|
|
(2) |
|
Technology Solutions segment results for the first nine months of
fiscal year 2012 include product alignment charges of $42 million,
of which $26 million was recorded in cost of sales and $16 million
was recorded in operating expenses.
|
|
|
|
|
|
(3) |
|
Distribution Solutions segment operating expenses for the first nine
months of fiscal year 2013 include a $40 million charge for a legal
dispute in our Canadian business.
|
|
|
|
|
|
(4) |
|
For the first nine months of fiscal year 2013, operating expenses
include an $81 million pre-tax gain on business combination related
to the acquisition of the remaining 50% ownership interest in our
corporate headquarters building.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McKESSON CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
March 31,
|
|
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
2,726
|
|
|
|
$
|
3,149
|
|
Receivables, net
|
|
|
|
|
9,962
|
|
|
|
|
9,977
|
|
Inventories, net
|
|
|
|
|
10,390
|
|
|
|
|
10,073
|
|
Prepaid expenses and other
|
|
|
|
|
361
|
|
|
|
|
404
|
|
Total Current Assets
|
|
|
|
|
23,439
|
|
|
|
|
23,603
|
|
Property, Plant and Equipment, Net
|
|
|
|
|
1,247
|
|
|
|
|
1,043
|
|
Goodwill
|
|
|
|
|
5,310
|
|
|
|
|
5,032
|
|
Intangible Assets, Net
|
|
|
|
|
1,799
|
|
|
|
|
1,750
|
|
Other Assets
|
|
|
|
|
1,638
|
|
|
|
|
1,665
|
|
Total Assets
|
|
|
|
$
|
33,433
|
|
|
|
$
|
33,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Drafts and accounts payable
|
|
|
|
$
|
15,047
|
|
|
|
$
|
16,114
|
|
Short-term borrowings
|
|
|
|
|
-
|
|
|
|
|
400
|
|
Deferred revenue
|
|
|
|
|
1,431
|
|
|
|
|
1,423
|
|
Deferred tax liabilities
|
|
|
|
|
1,519
|
|
|
|
|
1,092
|
|
Current portion of long-term debt
|
|
|
|
|
506
|
|
|
|
|
508
|
|
Other accrued liabilities
|
|
|
|
|
1,705
|
|
|
|
|
2,149
|
|
Total Current Liabilities
|
|
|
|
|
20,208
|
|
|
|
|
21,686
|
|
Long-Term Debt
|
|
|
|
|
3,973
|
|
|
|
|
3,072
|
|
Other Noncurrent Liabilities
|
|
|
|
|
1,603
|
|
|
|
|
1,504
|
|
Stockholders' Equity
|
|
|
|
|
7,649
|
|
|
|
|
6,831
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
$
|
33,433
|
|
|
|
$
|
33,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 6
|
|
|
|
|
|
|
|
|
|
|
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McKESSON CORPORATION
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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(unaudited)
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(in millions)
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Nine Months Ended December 31,
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2012
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2011
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OPERATING ACTIVITIES
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Net income
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$
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1,079
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$
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882
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Adjustments to reconcile to net cash provided by operating
activities:
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Depreciation and amortization
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428
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408
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Other deferred taxes
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499
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(15)
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Share-based compensation expense
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123
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113
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Gain on business combination
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(81)
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-
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Other non-cash items
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53
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75
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Changes in operating assets and liabilities, net of acquisitions:
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Receivables
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57
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(575)
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Inventories
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(313)
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(1,200)
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Drafts and accounts payable
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(1,081)
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1,636
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Deferred revenue
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49
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122
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Taxes
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(88)
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171
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Litigation charges
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60
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145
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Litigation settlement payments
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(470)
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(26)
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Other
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(39)
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(20)
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Net cash provided by operating activities
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276
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1,716
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INVESTING ACTIVITIES
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Property acquisitions
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(151)
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(170)
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Capitalized software expenditures
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(117)
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(137)
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Acquisitions, less cash and cash equivalents acquired
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(577)
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(204)
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Other
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61
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81
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Net cash used in investing activities
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(784)
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(430)
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FINANCING ACTIVITIES
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Proceeds from short-term borrowings
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1,125
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-
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Repayments of short-term borrowings
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(1,525)
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-
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Proceeds from issuances of long-term debt
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892
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-
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Repayments of long-term debt
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(4)
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(23)
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Common stock transactions:
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Issuances
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112
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122
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Share repurchases, including shares surrendered for tax withholding
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(413)
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(672)
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Dividends paid
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(147)
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(146)
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Other
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42
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22
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Net cash provided by (used in) financing activities
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82
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(697)
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Effect of exchange rate changes on cash and cash equivalents
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3
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(10)
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Net increase (decrease) in cash and cash equivalents
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(423)
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579
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Cash and cash equivalents at beginning of period
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3,149
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3,612
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Cash and cash equivalents at end of period
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$
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2,726
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$
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4,191
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