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McKESSON CORPORATION
RECAST CONDENSED CONSOLIDATED OPERATING INFORMATION BY BUSINESS SEGMENT
(unaudited)
(in millions)
FY03
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Q1 Q2 Q3 Q4 FY
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REVENUES
Pharmaceutical Solutions
U.S. Health Care $ 8,333.0 $ 8,459.9 $ 9,000.2 $ 9,009.8 $ 34,802.9
Canada 819.4 817.6 886.3 899.7 3,423.0
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Total Direct Revenues 9,152.4 9,277.5 9,886.5 9,909.5 38,225.9
U.S. Health Care sales to customers' warehouses 3,497.1 3,408.3 4,007.1 3,920.4 14,832.9
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Total Pharmaceutical Solutions 12,649.5 12,685.8 13,893.6 13,829.9 53,058.8
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Medical-Surgical Solutions 708.3 709.9 716.7 708.0 2,842.9
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Provider Technologies
Software and Software Systems 49.2 62.9 69.9 106.7 288.7
Services 197.2 206.0 213.5 212.7 829.4
Hardware 19.0 25.7 27.3 29.0 101.0
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Total Provider Technologies 265.4 294.6 310.7 348.4 1,219.1
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Revenues $ 13,623.2 $ 13,690.3 $ 14,921.0 $ 14,886.3 $ 57,120.8
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GROSS PROFIT
Pharmaceutical Solutions $ 477.7 $ 459.7 $ 468.1 $ 550.8 $ 1,956.3
Medical-Surgical Solutions 147.8 145.0 146.3 149.9 589.0
Provider Technologies 125.3 134.6 113.2 184.1 557.2
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Gross profit $ 750.8 $ 739.3 $ 727.6 $ 884.8 $ 3,102.5
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OPERATING EXPENSES
Pharmaceutical Solutions $ 265.3 $ 241.2 $ 249.2 $ 265.5 $ 1,021.2
Medical-Surgical Solutions 126.3 128.4 126.3 130.9 511.9
Provider Technologies 114.4 112.4 102.6 144.1 473.5
Corporate 39.5 36.6 38.8 48.0 162.9
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Operating expenses $ 545.5 $ 518.6 $ 516.9 $ 588.5 $ 2,169.5
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OTHER INCOME
Pharmaceutical Solutions $ 7.5 $ 3.0 $ 14.1 $ 7.0 $ 31.6
Medical-Surgical Solutions 0.1 0.2 1.3 0.7 2.3
Provider Technologies 3.3 4.3 8.8 1.5 17.9
Corporate (0.9) (3.4) (0.1) (0.9) (5.3)
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Other income $ 10.0 $ 4.1 $ 24.1 $ 8.3 $ 46.5
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OPERATING PROFIT
Pharmaceutical Solutions $ 219.9 $ 221.5 $ 233.0 $ 292.3 $ 966.7
Medical-Surgical Solutions 21.6 16.8 21.3 19.7 79.4
Provider Technologies 14.2 26.5 19.4 41.5 101.6
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Operating profit 255.7 264.8 273.7 353.5 1,147.7
Corporate (40.4) (40.0) (38.9) (48.9) (168.2)
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Income from continuing operations before
interest expense and income taxes $ 215.3 $ 224.8 $ 234.8 $ 304.6 $ 979.5
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STATISTICS
Operating profit as a % of revenues
Pharmaceutical Solutions 1.74% 1.75% 1.68% 2.11% 1.82%
Pharmaceutical Solutions, excl. sales to
customers' warehouses 2.40% 2.39% 2.36% 2.95% 2.53%
Medical-Surgical Solutions 3.05% 2.37% 2.97% 2.78% 2.79%
Provider Technologies 5.35% 9.00% 6.24% 11.91% 8.33%
FY04
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Q1 Q2 Q3 Q4 FY
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REVENUES
Pharmaceutical Solutions
U.S. Health Care $ 9,335.0 $ 9,655.0 $ 10,197.4 $ 10,224.7 $ 39,412.1
Canada 1,044.0 1,070.0 1,199.6 1,145.3 4,458.9
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Total Direct Revenues 10,379.0 10,725.0 11,397.0 11,370.0 43,871.0
U.S. Health Care sales to customers' warehouses 5,164.4 5,057.6 5,827.1 5,573.0 21,622.1
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Total Pharmaceutical Solutions 15,543.4 15,782.6 17,224.1 16,943.0 65,493.1
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Medical-Surgical Solutions 710.1 716.1 714.0 670.3 2,810.5
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Provider Technologies
Software and Software Systems 45.6 67.5 46.6 58.5 218.2
Services 204.3 216.6 220.7 226.7 868.3
Hardware 20.8 27.3 26.5 41.4 116.0
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Total Provider Technologies 270.7 311.4 293.8 326.6 1,202.5
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Revenues $ 16,524.2 $ 16,810.1 $ 18,231.9 $ 17,939.9 $ 69,506.1
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GROSS PROFIT
Pharmaceutical Solutions $ 518.2 $ 508.9 $ 480.9 $ 568.9 $ 2,076.9
Medical-Surgical Solutions 146.0 151.3 153.2 153.4 603.9
Provider Technologies 122.3 151.5 121.4 172.2 567.4
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Gross profit $ 786.5 $ 811.7 $ 755.5 $ 894.5 $ 3,248.2
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OPERATING EXPENSES
Pharmaceutical Solutions $ 259.1 $ 294.0 $ 281.2 $ 285.0 $ 1,119.3
Medical-Surgical Solutions 121.4 126.6 127.8 125.4 501.2
Provider Technologies 119.7 118.5 121.1 91.4 450.7
Corporate 34.7 45.5 40.9 72.5 193.6
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Operating expenses $ 534.9 $ 584.6 $ 571.0 $ 574.3 $ 2,264.8
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OTHER INCOME
Pharmaceutical Solutions $ 5.9 $ 6.8 $ 5.7 $ 4.1 $ 22.5
Medical-Surgical Solutions 1.2 0.6 0.5 1.4 3.7
Provider Technologies 2.1 4.2 2.3 2.9 11.5
Corporate 2.7 3.5 1.2 3.1 10.5
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Other income $ 11.9 $ 15.1 $ 9.7 $ 11.5 $ 48.2
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OPERATING PROFIT
Pharmaceutical Solutions $ 265.0 $ 221.7 $ 205.4 $ 288.0 $ 980.1
Medical-Surgical Solutions 25.8 25.3 25.9 29.4 106.4
Provider Technologies 4.7 37.2 2.6 83.7 128.2
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Operating profit 295.5 284.2 233.9 401.1 1,214.7
Corporate (32.0) (42.0) (39.7) (69.4) (183.1)
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Income from continuing operations before
interest expense and income taxes $ 263.5 $ 242.2 $ 194.2 $ 331.7 $ 1,031.6
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STATISTICS
Operating profit as a % of revenues
Pharmaceutical Solutions 1.70% 1.40% 1.19% 1.70% 1.50%
Pharmaceutical Solutions, excl. sales to
customers' warehouses 2.55% 2.07% 1.80% 2.53% 2.23%
Medical-Surgical Solutions 3.63% 3.53% 3.63% 4.39% 3.79%
Provider Technologies 1.74% 11.95% 0.88% 25.63% 10.66%