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Redeemable Noncontrolling Interests and Noncontrolling Interests | 6 Months Ended
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Sep. 30, 2020
Noncontrolling Interest [Abstract] |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests The Company’s redeemable noncontrolling interests primarily relate to its consolidated subsidiary, McKesson Europe AG (“McKesson Europe”). Under the December 2014 domination and profit and loss transfer agreement (the “Domination Agreement”), the noncontrolling shareholders of McKesson Europe are entitled to receive an annual recurring compensation amount of €0.83 per share. As a result, the Company recorded a total attribution of net income to the noncontrolling shareholders of McKesson Europe of $10 million and $21 million during the three and six months ended September 30, 2020, respectively, and $11 million and $22 million during the three and six months ended September 30, 2019, respectively. All amounts were recorded in Net income attributable to noncontrolling interests in the Company’s Condensed Consolidated Statements of Operations and the corresponding liability balance was recorded in Other accrued liabilities in the Company’s Condensed Consolidated Balance Sheets. Under the Domination Agreement, the noncontrolling shareholders of McKesson Europe have a right to put (“Put Right”) their noncontrolling shares at €22.99 per share, increased annually for interest in the amount of five percentage points above a base rate published by the German Bundesbank semi-annually, less any compensation amount or guaranteed dividend already paid by McKesson with respect to the relevant time period (“Put Amount”). The exercise of the Put Right will reduce the balance of redeemable noncontrolling interests. During the six months ended September 30, 2020, the Company paid $49 million to purchase 1.8 million shares of McKesson Europe through exercises of the Put Right by the noncontrolling shareholders. This decreased the carrying value of the noncontrolling interests by $49 million, and the associated effect of the increase in the Company’s ownership interest on its equity of $3 million was recorded as a net increase to McKesson’s stockholders paid-in capital during 2021. During the three months ended September 30, 2020 and the three and six months ended September 30, 2019, there were no material exercises of the Put Right. The balance of the associated liability for Redeemable noncontrolling interests is reported as the greater of its carrying value or its maximum redemption value at each reporting date. The redemption value is the Put Amount adjusted for exchange rate fluctuations each period. The Redeemable noncontrolling interest is also adjusted each period for the proportion of other comprehensive income, primarily due to changes in foreign currency exchange rates, attributable to the noncontrolling shareholders. At September 30, 2020 and March 31, 2020, the carrying value of redeemable noncontrolling interests of $1.3 billion and $1.4 billion, respectively, exceeded the maximum redemption value of $1.2 billion. At September 30, 2020 and March 31, 2020, the Company owned approximately 78% and 77%, respectively, of McKesson Europe’s outstanding common shares. Noncontrolling Interests Noncontrolling interests represent third-party equity interests in the Company’s consolidated entities primarily related to ClarusONE Sourcing Services LLP, Vantage Oncology Holdings, LLC, and McKesson Europe, which were $200 million and $217 million at September 30, 2020 and March 31, 2020, respectively, in the Company’s Condensed Consolidated Balance Sheets. The Company allocated a total of $40 million and $79 million of net income to noncontrolling interests during the three and six months ended September 30, 2020, respectively, and $42 million and $85 million during the three and six months ended September 30, 2019, respectively. Changes in redeemable noncontrolling interests and noncontrolling interests for the three and six months ended September 30, 2020 were as follows:
(In millions) |  | Noncontrolling Interests |  | Redeemable Noncontrolling Interests
Balance, June 30, 2020 |  | $ | 207 |  |  | $ | 1,414 |
Net income attributable to noncontrolling interests |  | 40 |  |  | 10 |
Other comprehensive loss |  | — |  |  | (151) |
Reclassification of recurring compensation to other accrued liabilities |  | — |  |  | (10) |
Payments to noncontrolling interests |  | (50) |  |  | — |
Other |  | 3 |  |  | 2 |
Balance, September 30, 2020 |  | $ | 200 |  |  | $ | 1,265 |
(In millions) |  | Noncontrolling Interests |  | Redeemable Noncontrolling Interests
Balance, March 31, 2020 |  | $ | 217 |  |  | $ | 1,402 |
Net income attributable to noncontrolling interests |  | 79 |  |  | 21 |
Other comprehensive loss |  | — |  |  | (90) |
Reclassification of recurring compensation to other accrued liabilities |  | — |  |  | (21) |
Payments to noncontrolling interests |  | (93) |  |  | — |
Exercises of Put Right |  | — |  |  | (49) |
Other |  | (3) |  |  | 2 |
Balance, September 30, 2020 |  | $ | 200 |  |  | $ | 1,265 |
Changes in redeemable noncontrolling interests and noncontrolling interests for the three and six months ended September 30, 2019 were as follows:
(In millions) |  | Noncontrolling Interests |  | Redeemable Noncontrolling Interests
Balance, June 30, 2019 |  | $ | 194 |  |  | $ | 1,399 |
Net income attributable to noncontrolling interests |  | 42 |  |  | 11 |
Other comprehensive loss |  | — |  |  | (18) |
Reclassification of recurring compensation to other accrued liabilities |  | — |  |  | (11) |
Payments to noncontrolling interests |  | (37) |  |  | — |
Other |  | 11 |  |  | 3 |
Balance, September 30, 2019 |  | $ | 210 |  |  | $ | 1,384 |
(In millions) |  | Noncontrolling Interests |  | Redeemable Noncontrolling Interests
Balance, March 31, 2019 |  | $ | 193 |  |  | $ | 1,393 |
Net income attributable to noncontrolling interests |  | 85 |  |  | 22 |
Other comprehensive loss |  | — |  |  | (12) |
Reclassification of recurring compensation to other accrued liabilities |  | — |  |  | (22) |
Payments to noncontrolling interests |  | (76) |  |  | — |
Other |  | 8 |  |  | 3 |
Balance, September 30, 2019 |  | $ | 210 |  |  | $ | 1,384 |

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- Definition The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
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- References No definition available. + Details
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