XML 80 R25.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Stockholders' Equity | 9 Months Ended
--- | ---
Dec. 31, 2019
Equity [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. 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. In May 2019, the Company entered into an ASR program with a third-party financial institution to repurchase $600 million of the Company’s common stock. McKesson repurchased a total of 4.7 million shares at an average price per share of $127.68 during the first quarter of 2020. During the first quarter of 2020, McKesson repurchased 0.7 million of its shares for $84 million through open market transactions at an average price per share of $128.64. During the second quarter of 2020, McKesson repurchased 5.2 million of its shares for $750 million through open market transactions at an average price per share of $144.28. During the third quarter of 2020, McKesson repurchased 3.4 million of its shares for $500 million through open market transactions at an average price per share of $148.39. The total authorization outstanding for repurchases of the Company’s common stock was $1.5 billion at December 31, 2019. 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:
| Three Months Ended December 31, |  | Nine Months Ended December 31,
(In millions) | 2019 |  | 2018 |  | 2019 |  | 2018
Foreign currency translation adjustments (1) |  |  |  |  |  |  |
Foreign currency translation adjustments arising during period, net of income tax benefit of nil, nil, nil and nil (2) (3) | $ | 101 |  |  | $ | (188 | ) |  | $ | 57 |  |  | $ | (456 | )
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil | — |  |  | — |  |  | — |  |  | — |
| 101 |  |  | (188 | ) |  | 57 |  |  | (456 | )
Unrealized gains (losses) on net investment hedges |  |  |  |  |  |  |
Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of $21, ($27), $1 and ($85)(4) | (58 | ) |  | 75 |  |  | (2 | ) |  | 240 |
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil | — |  |  | — |  |  | — |  |  | — |
| (58 | ) |  | 75 |  |  | (2 | ) |  | 240 |
Unrealized gains on cash flow hedges |  |  |  |  |  |  |
Unrealized gains on cash flow hedges arising during period, net of income tax (expense) benefit of $3, ($5), ($7) and ($5) | 8 |  |  | 35 |  |  | 33 |  |  | 37 |
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil | — |  |  | — |  |  | — |  |  | — |
| 8 |  |  | 35 |  |  | 33 |  |  | 37 |
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, nil, $1 and nil | — |  |  | — |  |  | (3 | ) |  | — |
Amortization of actuarial (gain) loss, prior service cost and transition obligation, net of income tax (expense) benefit of nil, $1, nil and ($1) (6) | (2 | ) |  | 1 |  |  | — |  |  | 5 |
Foreign currency translation adjustments and other, net of income tax expense of nil, nil, nil and nil | (6 | ) |  | 2 |  |  | 1 |  |  | 10 |
Reclassified to income statement, net of income tax expense of $3, nil, $35 and nil (7) | 8 |  |  | — |  |  | 98 |  |  | — |
| — |  |  | 3 |  |  | 96 |  |  | 15 |
Other comprehensive income (loss), net of tax | $ | 51 |  |  | $ | (75 | ) |  | $ | 184 |  |  | $ | (164 | )
(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, during the three and nine months ended December 31, 2019 and 2018.
(2) | During the three and nine months ended December 31, 2019, the net foreign currency translation gains were primarily due to the strengthening of the Euro and Canadian dollar against the U.S. dollar, partially offset by weakening of the British pound sterling from April 1, 2019 to December 31, 2019. During the three and nine months ended December 31, 2018, the net foreign currency translation losses were primarily due to the weakening of the Euro, the British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2018 to December 31, 2018.
(3) | The three and nine months ended December 31, 2019 include net foreign currency translation gains of $12 million and losses of $1 million and the three and nine months ended December 31, 2018 include net foreign currency translation losses of $11 million and $57 million attributable to redeemable noncontrolling interests.
(4) | The three and nine months ended December 31, 2019 include foreign currency losses of $59 million and gains of $8 million on the net investment hedges from the €1.70 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and losses of $20 million and $11 million on the net investment hedges from the cross-currency swaps. The three and nine months ended December 31, 2018 include foreign currency gains of $39 million and $223 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 $63 million and $102 million on the net investment hedges from cross-currency swaps.
(5) | The three and nine months ended December 31, 2019 include net actuarial losses of $2 million and $1 million and the three and nine months ended December 31, 2018 include net actuarial gains of nil and $2 million which are attributable to redeemable noncontrolling interests.
(6) | Pre-tax amount reclassified into cost of sales and operating expenses in the Company’s condensed consolidated statements of operations. The related tax expense was reclassified into income tax expense in the Company’s condensed consolidated statements of operations.
(7) | The nine months ended December 31, 2019 primarily reflects a reclassification of losses in the second quarter of 2020 upon the termination of the Plan from accumulated other comprehensive loss to other income (expense), net in the Company’s condensed consolidated statement of operations.
Accumulated Other Comprehensive Income (Loss) Information regarding changes in the Company’s accumulated other comprehensive income (loss), net of tax, by component, for the three and nine months ended December 31, 2019 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 September 30, 2019 | $ | (1,659 | ) |  | $ | 109 |  |  | $ | (12 | ) |  | $ | (142 | ) |  | $ | (1,704 | )
Other comprehensive income (loss) before reclassifications | 101 |  |  | (58 | ) |  | 8 |  |  | (6 | ) |  | 45 |
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 6 |  |  | 6 |
Other comprehensive income (loss) | 101 |  |  | (58 | ) |  | 8 |  |  | — |  |  | 51 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 12 |  |  | — |  |  | — |  |  | (2 | ) |  | 10 |
Other comprehensive income (loss) attributable to McKesson | 89 |  |  | (58 | ) |  | 8 |  |  | 2 |  |  | 41 |
Balance at December 31, 2019 | $ | (1,570 | ) |  | $ | 51 |  |  | $ | (4 | ) |  | $ | (140 | ) |  | $ | (1,663 | )
| 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, 2019 | $ | (1,628 | ) |  | $ | 53 |  |  | $ | (37 | ) |  | $ | (237 | ) |  | $ | (1,849 | )
Other comprehensive income (loss) before reclassifications | 57 |  |  | (2 | ) |  | 33 |  |  | (2 | ) |  | 86 |
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 98 |  |  | 98 |
Other comprehensive income (loss) | 57 |  |  | (2 | ) |  | 33 |  |  | 96 |  |  | 184 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (1 | ) |  | — |  |  | — |  |  | (1 | ) |  | (2 | )
Other comprehensive income (loss) attributable to McKesson | 58 |  |  | (2 | ) |  | 33 |  |  | 97 |  |  | 186 |
Balance at December 31, 2019 | $ | (1,570 | ) |  | $ | 51 |  |  | $ | (4 | ) |  | $ | (140 | ) |  | $ | (1,663 | )
Information regarding changes in the Company’s accumulated other comprehensive income (loss), net of tax, by component for the three and nine months ended December 31, 2018 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 September 30, 2018 | $ | (1,480 | ) |  | $ | (23 | ) |  | $ | (59 | ) |  | $ | (200 | ) |  | $ | (1,762 | )
Other comprehensive income (loss) before reclassifications | (188 | ) |  | 75 |  |  | 35 |  |  | 2 |  |  | (76 | )
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Other comprehensive income (loss) | (188 | ) |  | 75 |  |  | 35 |  |  | 3 |  |  | (75 | )
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (11 | ) |  | — |  |  | — |  |  | — |  |  | (11 | )
Other comprehensive income (loss) attributable to McKesson | (177 | ) |  | 75 |  |  | 35 |  |  | 3 |  |  | (64 | )
Balance at December 31, 2018 | $ | (1,657 | ) |  | $ | 52 |  |  | $ | (24 | ) |  | $ | (197 | ) |  | $ | (1,826 | )
| 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 | (456 | ) |  | 240 |  |  | 37 |  |  | 10 |  |  | (169 | )
Amounts reclassified to earnings and other | — |  |  | — |  |  | — |  |  | 5 |  |  | 5 |
Other comprehensive income (loss) | (456 | ) |  | 240 |  |  | 37 |  |  | 15 |  |  | (164 | )
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (57 | ) |  | — |  |  | — |  |  | 2 |  |  | (55 | )
Other comprehensive income (loss) attributable to McKesson | (399 | ) |  | 240 |  |  | 37 |  |  | 13 |  |  | (109 | )
Balance at December 31, 2018 | $ | (1,657 | ) |  | $ | 52 |  |  | $ | (24 | ) |  | $ | (197 | ) |  | $ | (1,826 | )

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration