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Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended
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Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Schedule of changes in the carrying amount of goodwill |
(In millions, except rates) |  |  |  |  |  |  |  |  |
Quarter Ended |  | Reporting Unit |  | Segment |  | Discount Rate |  | Terminal Growth Rate |  | Goodwill Impairment | (1)
June 2018 |  | PD |  | European Pharmaceutical Solutions |  | 8.0 | % |  | 1.25 | % |  | $ | 238 |  | (2)
June 2018 |  | RP |  | European Pharmaceutical Solutions |  | 8.5 | % |  | 1.25 | % |  | 251 |  | (3)
June 2018 |  | PD |  | European Pharmaceutical Solutions |  | 8.0 | % |  | 1.25 | % |  | 81 |  | (3)
March 2019 |  | RP |  | European Pharmaceutical Solutions |  | 10.0 | % |  | 1.25 | % |  | 465 |  | (4)
March 2019 |  | PD |  | European Pharmaceutical Solutions |  | 9.0 | % |  | 1.25 | % |  | 741 |  | (4)
|  |  |  | Total |  |  |  |  |  | $ | 1,776 |  |
(1) | Represents pre-tax and after-tax amounts, except for an aggregate $20 million of tax charges related to the March 2019 Retail Pharmacy impairment. Total goodwill impairment for 2019 also includes $21 million related to the Company’s Rexall Health business within Other recorded in the third quarter of 2019.
(2) | Prior to implementing its new segment reporting structure in the first quarter of 2019, the Company’s European operations were considered a single reporting unit. Following the change in reportable segments, its European Pharmaceutical Solutions segment was divided into two distinct reporting units, Retail Pharmacy (“RP”), formerly Consumer Solutions, and Pharmaceutical Distribution (“PD”), formerly Pharmacy Solutions, for the purposes of goodwill impairment testing. This change required performance of a goodwill impairment test for these two new reporting units which resulted in a goodwill impairment charge as PD’s estimated fair value was lower than its reassigned carrying value.
(3) | Both RP and PD projected a decline in the estimated future cash flows primarily triggered by additional U.K. government actions which were announced on June 29, 2018. An interim goodwill impairment test for these reporting units identified that their carrying values exceeded their estimated fair value and resulted in an impairment charge.
(4) | As a result of the annual goodwill impairment test, the carrying values of the PD and RP reporting units exceeded their estimated fair value which required the Company to record impairment charges for the reporting units. These additional impairments were primarily due to declines in the reporting units’ estimated future cash flows and the selection of higher discount rates. The declines in estimated future cash flows were primarily attributed to additional government reimbursement reductions and competitive pressures within the U.K. The risk of successfully achieving certain business initiatives was the primary factor in the use of a higher discount rate. As of March 31, 2019 the entire remaining goodwill balances of both reporting units were impaired.
Fiscal 2018
(In millions, except rates) |  |  |  |  |  |  |  |  |
Quarter Ended |  | Reporting Unit |  | Segment (3) |  | Discount Rate |  | Terminal Growth Rate |  | Goodwill Impairment | (1)
September 2017 |  | McKesson Europe (2) |  | European Pharmaceutical Solutions |  | 7.5 | % |  | 1.25 | % |  | $ | 350 |  | (4)
March 2018 |  | McKesson Europe |  | European Pharmaceutical Solutions |  | 8.0 | % |  | 1.25 | % |  | 933 |  | (5)
March 2018 |  | Rexall |  | Other |  | 10.0 | % |  | 2.00 | % |  | 455 |  | (6)
|  |  |  | Total |  |  |  |  |  | $ | 1,738 |  |
(1) | Represents pre-tax and after-tax amounts.
(2) | This reporting unit was divided into two reporting units in the first quarter of 2019 upon a change in segment reporting structure. See above for more information.
(3) | The impairment charges recorded in 2018 were attributable to the former McKesson Distribution Solutions segment. The segment reporting structure which included McKesson Distribution Solutions was reorganized in the first quarter of 2019. The segments presented above for 2018 reflect the revised segment reporting structure.
(4) | The reporting unit projected a decline in its estimated future cash flows primarily triggered by government reimbursement reductions in its retail business in the U.K. Accordingly, the Company performed an interim one-step goodwill impairment test prior to its annual impairment test. As a result, the Company determined that the carrying value of this reporting unit exceeded its estimated fair value and recorded a goodwill impairment charge.
(5) | As a result of the Company’s annual impairment test, it was determined that the carrying value of the reporting unit further exceeded its estimated fair value and recorded a goodwill impairment charge. This reporting unit had a further decline in its estimated future cash flows driven by weakening script growth outlook in the Company’s U.K. business and by a more competitive environment in France.
(6) As a result of the Company’s annual impairment test, it was determined that the carrying value of the reporting unit exceeded its estimated fair value and recorded a goodwill impairment charge. The impairment was the result of a decline in estimated future cash flows primarily driven by significant generics reimbursement reductions across Canada and minimum wage increases in multiple provinces which could only be partially mitigated through the business’ cost saving efforts. As of March 31, 2018, the entire remaining goodwill balance related to the Company’s acquisition of Rexall Health was impaired. Changes in the carrying amount of goodwill were as follows:
(In millions) | U.S. Pharmaceutical and Specialty Solutions |  | European Pharmaceutical Solutions |  | Medical-Surgical Solutions |  | Other |  | Total
Balance, March 31, 2018 | $ | 4,110 |  |  | $ | 1,850 |  |  | $ | 2,070 |  |  | $ | 2,894 |  |  | $ | 10,924 |
Goodwill acquired | 17 |  |  | 52 |  |  | 360 |  |  | 13 |  |  | 442 |
Acquisition accounting, transfers and other adjustments | 13 |  |  | (5 | ) |  | 21 |  |  | 6 |  |  | 35 |
Impairment charges | — |  |  | (1,776 | ) |  | — |  |  | (21 | ) |  | (1,797 | )
Foreign currency translation adjustments, net | (62 | ) |  | (121 | ) |  | — |  |  | (63 | ) |  | (246 | )
Balance, March 31, 2019 | 4,078 |  |  | — |  |  | 2,451 |  |  | 2,829 |  |  | 9,358 |
Goodwill acquired | — |  |  | 62 |  |  | — |  |  | 14 |  |  | 76 |
Acquisition accounting, transfers and other adjustments | 1 |  |  | 4 |  |  | 7 |  |  | — |  |  | 12 |
Other changes/disposals | (1 | ) |  | — |  |  | (5 | ) |  | — |  |  | (6 | )
Impairment charges | — |  |  | — |  |  | — |  |  | (2 | ) |  | (2 | )
Foreign currency translation adjustments, net | (11 | ) |  | (3 | ) |  | — |  |  | (64 | ) |  | (78 | )
Balance, March 31, 2020 | $ | 4,067 |  |  | $ | 63 |  |  | $ | 2,453 |  |  | $ | 2,777 |  |  | $ | 9,360 |
Schedule of information regarding intangible assets | Information regarding intangible assets is as follows:
| March 31, 2020 |  | March 31, 2019
(Dollars in millions) | Weighted Average Remaining Amortization Period (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships | 11 |  | $ | 3,650 |  |  | $ | (1,950 | ) |  | $ | 1,700 |  |  | $ | 3,818 |  |  | $ | (1,801 | ) |  | $ | 2,017 |
Service agreements | 10 |  | 994 |  |  | (480 | ) |  | 514 |  |  | 1,017 |  |  | (430 | ) |  | 587 |
Pharmacy licenses | 26 |  | 492 |  |  | (232 | ) |  | 260 |  |  | 513 |  |  | (209 | ) |  | 304 |
Trademarks and trade names | 13 |  | 808 |  |  | (242 | ) |  | 566 |  |  | 887 |  |  | (232 | ) |  | 655 |
Technology | 3 |  | 175 |  |  | (111 | ) |  | 64 |  |  | 141 |  |  | (94 | ) |  | 47 |
Other | 5 |  | 273 |  |  | (221 | ) |  | 52 |  |  | 288 |  |  | (209 | ) |  | 79 |
Total |  |  | $ | 6,392 |  |  | $ | (3,236 | ) |  | $ | 3,156 |  |  | $ | 6,664 |  |  | $ | (2,975 | ) |  | $ | 3,689 |

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