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”).

The Company currently pays quarterly dividends of $0.34 per common share. In July 2018, the Company’s quarterly dividend was raised from $0.34 to $0.39 per common share for dividends declared on or after such date by the Board. 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.

In March 2018 we entered into an ASR program with a third-party financial institution to repurchase $500 million of the Company’s common stock. We received 2.5 million shares in March 2018 and an additional 1.0 million shares in the first quarter of 2019. The March 2018 ASR program was completed at an average price per share of $143.66 during the first quarter of 2019.

In May 2018, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock.

In the first quarter of 2019, we repurchased 2.0 million of the Company’s shares for $297 million through open market transactions at an average price per share of $147.92.

The total authorization outstanding for repurchases of the Company’s common stock was $4.8 billion at June 30, 2018.

Other Comprehensive Income (Loss)

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



	Quarter Ended June 30,
(In millions)	2018			2017
Foreign currency translation adjustments ⁽¹⁾
Foreign currency translation adjustments arising during period, net of income tax benefit of nil and nil ^{(2) (3)}	$	(273	)	$	382
Reclassified to income statement, net of income tax expense of nil and nil	—			—
	(273		)	382

Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of ($51) and $44 ⁽⁴⁾	144			(70		)
Reclassified to income statement, net of income tax expense of nil and nil	—			—
	144			(70		)
Unrealized gains on cash flow hedges
Unrealized gains on cash flow hedges arising during period, net of income tax expense of nil and nil	—			14
Reclassified to income statement, net of income tax expense of nil and nil	—			—
	—			14
Changes in retirement-related benefit plans ⁽⁵⁾
Net actuarial loss and prior service cost arising during the period, net of income tax benefit of nil and nil	—			—
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of nil and nil ⁽⁶⁾	1			1
Foreign currency translation adjustments and other, net of income tax expense of nil and nil	7			(6		)
Reclassified to income statement, net of income tax expense of nil and nil	—			—
	8			(5		)

Other comprehensive income (loss), net of tax	$	(121	)	$	321


(1)	Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiary, McKesson Europe, into the Company’s reporting currency, U.S. dollars, during the first quarters of 2019 and 2018.

(2)

During the first quarter of 2019, the net foreign currency translation losses were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2018 to June 30, 2018. During the first quarter of 2018, the net foreign currency translation gains were primarily due to the strengthening of the Euro and British pound sterling against the U.S. dollar from April 1, 2017 to June 30, 2017.


(3)	The first quarter of 2019 includes net foreign currency translation losses of $39 million attributable to redeemable noncontrolling interests. The first quarter of 2018 includes net foreign currency translation gains of $115 million attributable to redeemable noncontrolling interests.

(4)

The first quarter of 2019 includes foreign currency gains of $161 million on the net investment hedges from the €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and gains of $34 million on the net investment hedges from the cross-currency swaps. The first quarter of 2018 includes foreign currency losses of $114 million on the net investment hedges from the €1.20 billion Euro-denominated notes and £450 million British pound sterling-denominated notes.


(5)	The first quarters of 2019 and 2018 include net actuarial losses of $2 million and $1 million attributable to redeemable noncontrolling interests.


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

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in our accumulated other comprehensive income (loss), net of tax, by component for the first quarter of 2019 is 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, 2018	$	(1,258	)	$	(188	)	$	(61	)	$	(210	)	$	(1,717	)

Other comprehensive income (loss) before reclassifications	(273		)	144			—			8			(121		)
Amounts reclassified to earnings	—			—			—			—			—
Other comprehensive income (loss)	(273		)	144			—			8			(121		)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(39		)	—			—			2			(37		)
Other comprehensive income (loss) attributable to McKesson	(234		)	144			—			6			(84		)
Balance at June 30, 2018	$	(1,492	)	$	(44	)	$	(61	)	$	(204	)	$	(1,801	)