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Stockholders' Equity | 12 Months Ended
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Mar. 31, 2020
Stockholders' Equity Note [Abstract] |
Stockholders' Equity | 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 2019, the Company’s quarterly dividend was raised from $0.39 to $0.41 per common share for dividends declared on or after such date by the Board. Dividends were $1.62 per share in 2020, $1.51 per share in 2019 and $1.30 per share in 2018. 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 the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s 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) (3) |  | Average Price Paid Per Share |  | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs
Balance, March 31, 2017 |  |  |  |  |  | $ | 2,746 |
Shares repurchased |  | 10.5 |  |  | $ | 151.06 |  |  | (1,650 | )
Balance, March 31, 2018 |  |  |  |  |  | 1,096 |
Shares repurchase plans authorized |  |  |  |  |  |
May 2018 |  |  |  |  |  | 4,000 |
Shares repurchased |  | 13.5 |  |  | $ | 130.72 |  |  | (1,627 | )
Balance, March 31, 2019 |  |  |  |  |  | 3,469 |
Shares repurchased |  | 13.9 |  |  | $ | 138.94 |  |  | (1,934 | )
Balance, March 31, 2020 |  |  |  |  |  | $ | 1,535 |
(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. It also excludes shares related to the Company’s Split-off of the Change Healthcare JV as described below.
(2) | All of the shares purchased were part of the publicly announced programs.
(3) | The number of shares purchased reflects rounding adjustments.
During the last three years, the Company’s share repurchases were transacted through both open market transactions and ASR programs with third party financial institutions. In 2018, the Company 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, the Company 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, it 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, the Company received 2.5 million shares representing the initial number of shares due 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. 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 increased to $5.1 billion. During 2019, the Company repurchased 10.4 million of the Company’s shares for $1.4 billion through open market transactions at an average price per share of $132.14. In December 2018, the Company entered into an ASR program with a third-party financial institution to repurchase $250 million of the Company’s common stock. The total number of shares repurchased under this ASR program was 2.1 million shares at an average price per share of $117.98. The total authorization outstanding for repurchase of the Company’s common stock was $3.5 billion at March 31, 2019. In 2019, the Company retired 5.0 million or $542 million of its treasury shares previously repurchased. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. In accordance with the Company’s accounting policy, it allocates any excess of share repurchase price over par value between additional paid-in capital and retained earnings. Accordingly, its retained earnings and additional paid-in capital were reduced by $472 million and $70 million during 2019. In 2020, the Company repurchased 9.2 million of the Company’s shares for $1.3 billion through open market transactions at an average price per share of $144.68. During 2020, the Company entered into an ASR program with a third-party financial institution to repurchase $600 million of the Company’s common stock. The total number of shares repurchased under this ASR program was 4.7 million shares at an average price per share of $127.68. The total authorization outstanding for repurchase of the Company’s common stock was $1.5 billion at March 31, 2020. On March 9, 2020, the Company completed the Split-off of its interest in the Change Healthcare JV. In connection with the Split-off, the Company distributed all 176.0 million outstanding shares of SpinCo common stock, which held all of the Company’s interests in the Change Healthcare JV, to participating holders of the Company’s common stock in exchange for 15.4 million shares of McKesson stock, which are now held as treasury stock on the Company’s consolidated balance sheet. Following consummation of the exchange offer, on March 10, 2020, SpinCo merged with and into Change Healthcare, Inc. with each share of SpinCo common stock converted into one share of Change Healthcare, Inc. common stock, par value $0.001 per share, with cash being paid in lieu of fractional shares of Change common stock. See Note 2 , “Investment in Change Healthcare Joint Venture,” for more information. 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) | 2020 |  | 2019 |  | 2018
Foreign currency translation adjustments:(1) |  |  |  |  |
Foreign currency translation adjustments arising during period, net of income tax expense of nil, nil and nil (2) (3) | $ | (151 | ) |  | $ | (431 | ) |  | $ | 804 |
Reclassified to income statement, net of income tax expense of nil, nil and nil | — |  |  | — |  |  | — |
| (151 | ) |  | (431 | ) |  | 804 |
Unrealized gains (losses) on net investment hedges (4) |  |  |  |  |
Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of ($30), ($71), and $95 | 85 |  |  | 241 |  |  | (180 | )
Reclassified to income statement, net of income tax expense of nil, nil and nil | — |  |  | — |  |  | — |
| 85 |  |  | 241 |  |  | (180 | )
Unrealized gains (losses) on cash flow hedges: |  |  |  |  |
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax (expense) benefit of ($12), ($4), and $9 | 86 |  |  | 24 |  |  | (30 | )
Reclassified to income statement, net of income tax expense of nil, nil and nil | — |  |  | — |  |  | — |
| 86 |  |  | 24 |  |  | (30 | )
Changes in retirement-related benefit plans: |  |  |  |  |
Net actuarial gain (loss) and prior service credit (cost) arising during the period, net of income tax (expense) benefit of ($8), $5, and ($2) (5) | 27 |  |  | (51 | ) |  | 25 |
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax (expense) benefit of $1, nil, and ($2) (6) | 2 |  |  | 9 |  |  | 5 |
Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil | 6 |  |  | 10 |  |  | (15 | )
Reclassified to income statement, net of income tax expense of ($33), nil and nil (7) | 94 |  |  | — |  |  | — |
| 129 |  |  | (32 | ) |  | 15 |
Other Comprehensive Income (Loss), net of tax | $ | 149 |  |  | $ | (198 | ) |  | $ | 609 |
(1) | Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of the Company’s foreign subsidiary McKesson Europe into the Company’s reporting currency, U.S. dollars.
(2) | The 2020 net foreign currency translation losses of $151 million were primarily due to the weakening of the Euro and Canadian dollar against the U.S. dollar, partially offset by the strengthening of the British pound sterling from April 1, 2019 to March 31, 2020. The 2019 net foreign currency translation losses of $431 million were primarily due to the weakening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2018 to March 31, 2019. 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.
(3) | 2020 and 2018 include net foreign currency translation gains of $1 million and $189 million and 2019 includes net foreign currency translation losses of $61 million attributable to noncontrolling and redeemable noncontrolling interests.
(4) | 2020, 2019 and 2018 include foreign currency gains of $39 million and $259 million and losses of $268 million on the net investment hedges from the Euro and British pound sterling-denominated notes. 2020, 2019 and 2018 also include foreign currency gains of $76 million and $53 million and losses of $7 million on the net investment hedges from the cross-currency swaps.
(5) | The 2020 net actuarial gain of $2 million and 2019 and 2018 net actuarial losses of $5 million and $4 million were attributable to noncontrolling and redeemable noncontrolling interests.
(6) | 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.
(7) | Primarily reflects a reclassification of losses in 2020 upon the termination of the Plan from accumulated other comprehensive loss to other income (expense), net in the Company’s consolidated statement of operations.
Accumulated Other Comprehensive Income (Loss) Information regarding changes in the Company’s accumulated other comprehensive income (loss) by component are as follows:
| Foreign Currency Translation Adjustments |  |  |  |  |  |
(In millions) | Foreign Currency Translation Adjustments, Net of Tax |  | Unrealized Gains (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 | (431 | ) |  | 241 |  |  | 24 |  |  | (41 | ) |  | (207 | )
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 9 |  |  | 9 |
Other comprehensive income (loss) | (431 | ) |  | 241 |  |  | 24 |  |  | (32 | ) |  | (198 | )
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (61 | ) |  | — |  |  | — |  |  | (5 | ) |  | (66 | )
Other comprehensive income (loss) attributable to McKesson | (370 | ) |  | 241 |  |  | 24 |  |  | (27 | ) |  | (132 | )
Balance at March 31, 2019 | (1,628 | ) |  | 53 |  |  | (37 | ) |  | (237 | ) |  | (1,849 | )
Other comprehensive income (loss) before reclassifications | (151 | ) |  | 85 |  |  | 86 |  |  | 33 |  |  | 53 |
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 96 |  |  | 96 |
Other comprehensive income (loss) | (151 | ) |  | 85 |  |  | 86 |  |  | 129 |  |  | 149 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 1 |  |  | — |  |  | — |  |  | 2 |  |  | 3 |
Other comprehensive income (loss) attributable to McKesson | (152 | ) |  | 85 |  |  | 86 |  |  | 127 |  |  | 146 |
Balance at March 31, 2020 | $ | (1,780 | ) |  | $ | 138 |  |  | $ | 49 |  |  | $ | (110 | ) |  | $ | (1,703 | )

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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