Item 6. Selected Financial Data.

7K characters. Original on sec.gov · Markdown

Item 6. Selected Financial Data.

FIVE-YEAR HIGHLIGHTS



	As of and for the Years Ended March 31,
(In millions, except per share data and ratios)		2017			2016			2015			2014			2013
Operating Results
Revenues		$	198,533		$	190,884		$	179,045		$	137,392		$	122,196
Percent change		4.0		%	6.6		%	30.3		%	12.4		%	(0.2		)%
Gross profit		$	11,271		$	11,416		$	11,411		$	8,352		$	6,881
Income from continuing operations before income taxes (2)		6,891			3,250			2,657			2,171			1,950
Income (loss) after income taxes
Continuing operations (2)		5,277			2,342			1,842			1,414			1,363
Discontinued operations		(124		)	(32		)	(299		)	(156		)	(25		)
Net income		5,153			2,310			1,543			1,258			1,338
Net (income) loss attributable to noncontrolling interests (1)		(83		)	(52		)	(67		)	5			—
Net income attributable to McKesson Corporation (2)		5,070			2,258			1,476			1,263			1,338

Financial Position
Working capital		$	1,336		$	3,366		$	3,173		$	3,221		$	1,813
Days sales outstanding for: (3)
Customer receivables		27			28			26			29			26
Inventories		30			32			31			33			33
Drafts and accounts payable		61			59			54			54			51
Total assets		$	60,969		$	56,523		$	53,870		$	51,759		$	34,786
Total debt, including capital lease obligations		8,545			8,114			9,844			10,594			4,873
Total McKesson stockholders’ equity (4)		11,095			8,924			8,001			8,522			7,070
Payments for property, plant and equipment		404			488			376			278			241
Acquisitions, net of cash and cash equivalents acquired		4,237			40			170			4,634			1,873

Common Share Information
Common shares outstanding at year-end		211			225			232			231			227
Shares on which earnings per common share were based
Diluted		223			233			235			233			239
Basic		221			230			232			229			235
Diluted earnings (loss) per common share attributable to McKesson Corporation (5)
Continuing operations		$	23.28		$	9.84		$	7.54		$	6.08		$	5.69
Discontinued operations		(0.55		)	(0.14		)	(1.27		)	(0.67		)	(0.10		)
Total		22.73			9.70			6.27			5.41			5.59
Cash dividends declared		249			249			226			214			192
Cash dividends declared per common share		1.12			1.08			0.96			0.92			0.80
Book value per common share (5) (6)		52.58			39.66			34.49			36.89			31.15
Market value per common share - year-end		148.26			157.25			226.20			176.57			107.96

Supplemental Data
Debt to capital ratio (7)		39.2		%	43.6		%	50.3		%	55.4		%	40.6		%
Average McKesson stockholders’ equity (8)		$	9,282		$	8,688		$	8,703		$	7,803		$	7,294
Return on McKesson stockholders’ equity (9)		54.6		%	26.0		%	17.0		%	16.2		%	18.3		%

Footnotes to Five-Year Highlights:


(1)	2016 and 2015 primarily reflect guaranteed dividends and annual recurring compensation that McKesson became obligated to pay to the noncontrolling shareholders of Celesio AG upon the effectiveness of the Domination Agreement in December 2014. 2017 also includes net income attributable to third-party equity interests in our consolidated entities including Vantage and ClarusOne Sourcing Services LLC, which was established between McKesson and Wal-Mart Stores, Inc.

(1)

2016 and 2015 primarily reflect guaranteed dividends and annual recurring compensation that McKesson became obligated to pay to the noncontrolling shareholders of Celesio AG upon the effectiveness of the Domination Agreement in December 2014. 2017 also includes net income attributable to third-party equity interests in our consolidated entities including Vantage and ClarusOne Sourcing Services LLC, which was established between McKesson and Wal-Mart Stores, Inc.


(2)	2017 includes a pre-tax gain of $3,947 million ($3,018 million after-tax) from the deconsolidation of our Core MTS Business in connection with Healthcare Technology Net Asset Exchange.


(3)	Based on year-end balances and sales or cost of sales for the last 90 days of the year.


(4)	Excludes noncontrolling and redeemable noncontrolling interests.


(5)	Certain computations may reflect rounding adjustments.


(6)	Represents McKesson stockholders’ equity divided by year-end common shares outstanding.


(7)	Ratio is computed as total debt divided by the sum of total debt and McKesson stockholders’ equity excluding accumulated other comprehensive income (loss).


(8)	Represents a five-quarter average of McKesson stockholders’ equity.


(9)	Ratio is computed as net income attributable to McKesson Corporation for the last four quarters, divided by a five-quarter average of McKesson stockholders’ equity.

McKESSON CORPORATION

FINANCIAL REVIEW

Previous: Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. · Next: Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.