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Segments of Business
 12 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segments of Business Segments of Business
The Company reports its financial results in four operating and reportable segments: U.S. Pharmaceutical, RxTS, Medical-Surgical Solutions, and International. The organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, and the results of certain investments and operations. The factors for determining the segments include the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. The Company evaluates the performance of its operating segments on a number of measures, including revenues and operating profit (loss) before interest expense and income taxes.
The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The CODM uses operating profit (loss) before interest expense and income taxes to assess performance and allocate resources for each reportable segment during the Company’s annual long-term planning process and through quarterly operating reviews focused on each segment’s results compared to the budget and rolling forecast. The CODM is regularly provided with budgeted or forecasted expense information for the segment and also uses consolidated expense information. Assets by segment are not a measure used to assess the performance of the Company by the CODM and thus are not reported in our disclosures.

The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products in the U.S. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate sites) and provides consulting, outsourcing, technological, and other services.
The RxTS segment helps solve medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. RxTS serves our biopharma and life sciences partners, delivering innovative solutions that help people get the medicine they need to live healthier lives. RxTS offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, and dispensing support services, in addition to third-party logistics and wholesale distribution support designed to benefit stakeholders.
The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. This segment offers national brand medical-surgical products as well as McKesson’s own line of high-quality products through a network of distribution centers in the U.S.
The International segment includes the Company’s operations in Canada and Norway, bringing together non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services. The Company’s Canadian operations deliver medicines, supplies, and information technology solutions throughout Canada and included Rexall Health retail pharmacies. The Company’s Norwegian operations provide distribution and services to wholesale and retail customers in Norway where it owns, partners, or franchises with retail pharmacies. During fiscal 2025, the Company completed the previously announced transaction to sell the Canadian retail disposal group. During fiscal 2023, the Company completed the divestitures of the U.K. disposal group in April 2022, and the E.U. disposal group in October 2022. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more information related to these divestitures.
Financial information relating to the Company’s reportable operating segments and reconciliations to the consolidated totals was as follows:
 Years Ended March 31,
(In millions)202520242023
Segment revenues (1)
U.S. Pharmaceutical$327,717 $278,739 $240,616 
Prescription Technology Solutions5,216 4,769 4,387 
Medical-Surgical Solutions11,386 11,313 11,110 
International14,721 14,130 20,598 
Corporate11 — — 
Total revenues$359,051 $308,951 $276,711 
Other segment expense, net (2)
U.S. Pharmaceutical (3)
$323,715 $275,953 $237,410 
Prescription Technology Solutions (4)
4,341 3,934 3,821 
Medical-Surgical Solutions (5)
10,613 10,361 9,993 
International (6)
14,934 13,811 20,462 
Total other expense, net$353,603 $304,059 $271,686 
Segment operating profit (loss)
U.S. Pharmaceutical$4,002 $2,786 $3,206 
Prescription Technology Solutions875 835 566 
Medical-Surgical Solutions773 952 1,117 
International(213)319 136 
Subtotal5,437 4,892 5,025 
Corporate expenses, net (7)
(813)(851)(147)
Interest expense(265)(252)(248)
Income from continuing operations before income taxes$4,359 $3,789 $4,630 
Segment depreciation and amortization (8)
U.S. Pharmaceutical$231 $229 $212 
Prescription Technology Solutions86 84 77 
Medical-Surgical Solutions 93 84 80 
International86 117 115 
Corporate140 121 124 
Total depreciation and amortization$636 $635 $608 
Segment expenditures for long-lived assets (9)
U.S. Pharmaceutical$241 $193 $154 
Prescription Technology Solutions11 31 35 
Medical-Surgical Solutions163 159 117 
International107 75 79 
Corporate337 229 173 
Total expenditures for long-lived assets$859 $687 $558 
(1)Revenues from services on a disaggregated basis represent approximately 1% of the U.S. Pharmaceutical segment’s total revenues, less than 39% of the RxTS segment’s total revenues, less than 1% of the Medical-Surgical Solutions segment’s total revenues, and less than 1% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are domestic.
(2)Other segment expense, net includes cost of sales, total operating expenses, as well as other income, net, for the Company’s reportable segments.
(3)The Company’s U.S. Pharmaceutical other segment expense, net includes the following:
•a credit of $206 million and a provision for bad debts of $725 million for the years ended March 31, 2025 and 2024, respectively, related to the bankruptcy of the Company’s customer Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”). Rite Aid filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in October 2023. The Company recognized a provision for bad debts of $725 million for the year ended March 31, 2024, which represented the uncollected trade accounts receivable from sales to Rite Aid prior to its bankruptcy petition filing. The credit in fiscal 2025 is due to the Company’s reassessment of its initial fiscal 2024 estimates of the previously reserved prepetition balance owed by Rite Aid. The amounts described above were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Consolidated Statements of Operations. Rite Aid's restructuring plan was approved by the court and the company successfully emerged from bankruptcy in August, 2024;
•cash receipts for the Company’s share of antitrust legal settlements were $444 million, $244 million, and $129 million for the years ended March 31, 2025, 2024, and 2023, respectively. These gains were recorded within “Cost of sales” in the Company’s Consolidated Statements of Operations;
•a charge of $82 million, a credit of $157 million, and a charge of $1 million for the years ended March 31, 2025, 2024, and 2023, respectively, related to the LIFO method of accounting for inventories. These amounts were recorded within “Cost of sales” in the Company’s Consolidated Statements of Operations;
•restructuring charges of $59 million for the year ended March 31, 2025 for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;”
•charges of $57 million and $74 million for the years ended March 31, 2025 and 2024, respectively, related to the estimated liability for opioid-related claims, as discussed in Financial Note 17, “Commitments and Contingent Liabilities;"
•a loss of $43 million for the year ended March 31, 2025 related to one of the Company’s equity method investments, which was recorded within “Other income, net” in the Company’s Consolidated Statement of Operations; and
•a gain of $142 million for the year ended March 31, 2023 related to the exit of one of the Company’s investments in equity securities in July 2022 for proceeds of $179 million, which is reflected within “Other income, net” in the Company’s Consolidated Statement of Operations.
(4)The Company’s RxTS other segment expense, net includes the following:
•gains of $78 million in fiscal 2024 resulting from fair value adjustments of the Company’s contingent consideration liability related to the RxSS acquisition, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;” and
•restructuring charges of $43 million in fiscal 2023 primarily for severance and employee-related costs, as well as asset impairments and accelerated depreciation. Refer to Financial Note 3, “Restructuring, Impairment, and Related Charges, Net” for further information.
(5)The Company’s Medical-Surgical Solutions other segment expense, net for the year ended March 31, 2025 includes restructuring charges of $204 million for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.”
(6)The Company’s International other segment expense, net includes the following:
•a charge of $605 million for the year ended March 31, 2025 to remeasure the assets and liabilities of the Canadian retail disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;” and
•a charge of $240 million for the year ended March 31, 2023 to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Business Acquisitions and Divestitures.”
(7)Corporate expenses, net, includes the following:
•charges of $87 million related to the termination of the U.K. pension plan;
•a charge of $62 million for the year ended March 31, 2025 related to the effect of accumulated other comprehensive loss components from the Canadian retail disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;”
•a net gain of $101 million for the year ended March 31, 2025, and net losses of $24 million and $36 million for the years ended March 31, 2024, and 2023, respectively, related to the Company’s investments in equity securities of certain U.S. growth stage companies in the healthcare industry, as discussed in Financial Note 15, “Fair Value Measurements;”
•net charges of $51 million and $73 million for the years ended March 31, 2025 and 2024, respectively, and a credit of $8 million for the year ended March 31, 2023, related to the estimated liability for opioid-related claims, as discussed in Financial Note 17, “Commitments and Contingent Liabilities;”
•restructuring charges of $68 million, $55 million, and $83 million for the years ended March 31, 2025, 2024, and 2023, respectively, for restructuring initiatives, as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;”
•charges of $14 million, $35 million, and $36 million for the years ended March 31, 2025, 2024, and 2023, respectively, for opioid-related costs, primarily litigation expenses;
•a gain of $306 million in fiscal 2023 primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures;”
•a gain of $126 million in fiscal 2023 related to a cash payment received for the early termination of a TRA exercised by Change in October 2022 and was recorded within “Other income, net” in the Consolidated Statement of Operations, as discussed in Financial Note 5, “Other Income, Net;” and
•a gain of $97 million in fiscal 2023 from the termination of certain forward-starting fixed interest rate swaps, as discussed in Financial Note 14, “Hedging Activities.”
(8)Amounts primarily consist of amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use as well as depreciation and amortization of property, plant, and equipment, net.
(9)Long-lived assets consist of property, plant, and equipment, net and capitalized software.
Long-lived assets by geographic areas were as follows:
 March 31,
(In millions)20252024
Long-lived assets (1)
United States$2,877 $2,477 
Foreign306 334 
Total long-lived assets$3,183 $2,811 
(1)Long-lived assets consist of property, plant, and equipment, net and capitalized software.