Stockholders’ Equity

Each share of the Company’s outstanding common stock is permitted one vote on proposals presented to stockholders and is entitled to share equally in any dividends declared by the Company’s Board of Directors (the “Board”).

In July 2017, the Company’s quarterly dividend was raised from $0.28 to $0.34 per common share for dividends declared on or after such date by the Board. Dividends were $1.30 per share in 2018, $1.12 per share in 2017 and $1.08 per share in 2016. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future earnings, financial condition, capital requirements and other factors.

Share Repurchase Plans

Stock repurchases may be made from time-to-time in open market transactions, privately negotiated transactions, through accelerated share repurchase (“ASR”) programs, or by any combination of such methods. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including our stock price, corporate and regulatory requirements, restrictions under our debt obligations and other market and economic conditions.

Information regarding the share repurchase activity over the last three years is as follows:



	Share Repurchases ⁽¹⁾
(In millions, except price per share data)		Total Number of Shares Purchased ^{(2) (4)}	Average Price Paid Per Share			Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs
Balance, March 31, 2015						$	—
Shares repurchase plans authorized
May 2015						500
October 2015						2,000
Shares repurchased		8.7	$	173.64		(1,504		)
Balance, March 31, 2016						$	996
Shares repurchase plans authorized
October 2016						4,000
Shares repurchased		15.5	$	141.16		(2,250		)
Balance, March 31, 2017						$	2,746
Shares repurchased		10.5	$	151.06	⁽³⁾	(1,650		)
Balance, March 31, 2018						$	1,096


(1)	This table does not include shares tendered to satisfy the exercise price in connection with cashless exercises of employee stock options or shares tendered to satisfy tax withholding obligations in connection with employee equity awards.


(2)	All of the shares purchased were part of the publicly announced programs.


(3)	The average price paid per share computation includes the initial share settlement of 2.5 million shares from the March 2018 ASR program, of which the actual average price of shares will be determined at the termination of the program.


(4)	The number of shares purchased reflects rounding adjustments.

During the last three years, our share repurchases were transacted through both open market transactions and ASR programs with third party financial institutions.

In May and October 2015, the Board authorized the repurchase of up to $500 million and $2 billion of the Company’s common stock.

In 2016, we repurchased 4.5 million of the Company’s shares for $854 million through open market transactions at an average price per share of $192.27. In February 2016, we entered into an ASR program with a third-party financial institution to repurchase $650 million of the Company’s common stock. The ASR program was completed during the fourth quarter of 2016 and we repurchased 4.2 million shares at an average price per share of $154.04. During 2016, we completed the May 2015 share repurchase authorization. At March 31, 2016, $1.0 billion remained available for future authorized repurchases of the Company’s common stock under the October 2015 authorization.

In 2016, we retired 115.5 million or $7.8 billion of the Company’s treasury shares previously repurchased. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. In accordance with our accounting policy, we allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings. Accordingly, our retained earnings and additional paid-in capital were reduced by $6.4 billion and $1.5 billion during 2016.

In October 2016, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock.

In 2017, we repurchased 14.1 million of the Company’s shares for $2.0 billion through open market transactions at an average price per share of $140.96. In March 2017, we entered into an ASR program with a third-party financial institution to repurchase $250 million of the Company’s common stock. As of March 31, 2017, we had received 1.4 million shares under this program. This ASR program was completed in April 2017 and we received 0.3 million additional shares. The total number of shares repurchased under this ASR program was 1.7 million shares at an average price per share of $143.19. During 2017, we completed the October 2015 share repurchase authorization. The total authorization outstanding for repurchases of the Company’s common stock was $2.7 billion at March 31, 2017.

In 2018, we repurchased 3.5 million of the Company’s shares for $500 million through open market transactions at an average price per share of $144.43. In June 2017, August 2017 and March 2018, we entered into three separate ASR programs with third-party financial institutions to repurchase $250 million, $400 million and $500 million of the Company’s common stock. As of March 31, 2018, we completed and received a total of 1.5 million shares under the June 2017 ASR program and a total of 2.7 million shares under the August 2017 ASR program. In addition, we received 2.5 million shares representing the initial number of shares due in March 2018 and an additional 0.5 million shares in April 2018 under the March 2018 ASR program. The total number of shares to be ultimately repurchased by the Company under the March 2018 ASR program will be determined at the completion of the program based on the average daily volume-weighted average price of the Company’s common stock during this program, less a discount. The program is anticipated to be completed during the first quarter of 2019. The total authorization outstanding for repurchase of the Company’s common stock was $1.1 billion at March 31, 2018.

In May 2018, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock. The total authorization outstanding for repurchases of the Company’s common stock was increased to $5.1 billion.

Other Comprehensive Income (Loss)

Information regarding other comprehensive income (loss) including noncontrolling interests and redeemable noncontrolling interests, net of tax, by component is as follows:



	Years Ended March 31,
(In millions)	2018			2017			2016
Foreign currency translation adjustments:⁽¹⁾
Foreign currency translation adjustments arising during period, net of income tax expense (benefit) of nil, ($1) and ($23) ^{(2) (3)}	$	804		$	(644	)	$	113
Reclassified to income statement, net of income tax expense of nil, nil and nil ⁽⁴⁾	—			20			—
	804			(624		)	113
Unrealized gains (losses) on net investment hedges ⁽⁵⁾
Unrealized gains (losses) on net investment hedges arising during period, net of income tax benefit of $95, $5 and nil	(180		)	(8		)	—
Reclassified to income statement, net of income tax expense of nil, nil and nil	—			—			—
	(180		)	(8		)	—
Unrealized gains (losses) on cash flow hedges:
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax benefit of $9, nil and nil	(30		)	(19		)	6
Reclassified to income statement, net of income tax expense of nil, nil and nil	—			—			3
	(30		)	(19		)	9
Changes in retirement-related benefit plans:
Net actuarial gain (loss) and prior service credit (cost) arising during period, net of income tax expense (benefit) of $2, $4 and $13 ⁽⁶⁾	25			(20		)	23
Amortization of actuarial gain (loss), prior service cost and transition obligation, net of income tax expense (benefit) of $2, $4 and $18 ⁽⁷⁾	5			9			30
Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil	(15		)	3			(3		)
Reclassified to income statement, net of income tax expense of nil, nil and nil	—			—			—
	15			(8		)	50

Other Comprehensive Income (Loss), net of tax	$	609		$	(659	)	$	172


(1)	Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries into the Company’s reporting currency, U.S. dollars.

(2)

The 2018 net foreign currency translation gains of $804 million were primarily due to the strengthening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2017 to March 31, 2018. The 2017 net foreign currency translation losses of $644 million were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2016 to March 31, 2017.


(3)	2018 includes net foreign currency translation gains of $189 million and 2017 includes net foreign currency translation losses of $74 million attributable to noncontrolling and redeemable noncontrolling interests.


(4)	These net foreign currency losses were reclassified from accumulated other comprehensive income (loss) to discontinued operations within our consolidated statement of operations due to the sale of our Brazilian pharmaceutical distribution business.


(5)	2018 and 2017 include foreign currency losses of $268 million and $13 million on the net investment hedges from the Euro and British pound sterling-denominated notes.


(6)	The net actuarial losses of $4 million and $5 million were attributable to noncontrolling and redeemable noncontrolling interests in 2018 and 2017.


(7)	Pre-tax amount was reclassified into cost of sales and operating expenses in the consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows:



	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Losses on Net Investment Hedges, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2016	$	(1,323	)	$	—		$	(12	)	$	(226	)	$	(1,561	)
Other comprehensive income (loss) before reclassifications	(644		)	(8		)	(19		)	(17		)	(688		)
Amounts reclassified to earnings	20			—			—			9			29
Other comprehensive income (loss)	$	(624	)	$	(8	)	$	(19	)	$	(8	)	$	(659	)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(74		)	—			—			(5		)	(79		)
Other comprehensive income (loss) attributable to McKesson	$	(550	)	$	(8	)	$	(19	)	$	(3	)	$	(580	)
Balance at March 31, 2017	$	(1,873	)	$	(8	)	$	(31	)	$	(229	)	$	(2,141	)
Other comprehensive income (loss) before reclassifications	804			(180		)	(30		)	10			604
Amounts reclassified to earnings and other	—			—			—			5			5
Other comprehensive income (loss)	$	804		$	(180	)	$	(30	)	$	15		$	609
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	189			—			—			(4		)	185
Other comprehensive income (loss) attributable to McKesson	$	615		$	(180	)	$	(30	)	$	19		$	424
Balance at March 31, 2018	$	(1,258	)	$	(188	)	$	(61	)	$	(210	)	$	(1,717	)