Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 30, 2018 | Sep. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | McKESSON CORPORATION | ||
Entity Central Index Key | 927,653 | ||
Entity Tax Identification Number | 943,207,296 | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 32 | ||
Entity Common Stock, Shares Outstanding | 202,050,986 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | $ 208,357 | $ 198,533 | $ 190,884 |
Cost of Sales | (197,173) | (187,262) | (179,468) |
Gross Profit | 11,184 | 11,271 | 11,416 |
Operating Expenses | |||
Selling, distribution and administrative expenses | (8,138) | (7,460) | (7,379) |
Research and development | (125) | (341) | (392) |
Goodwill impairment charges | (1,738) | (290) | 0 |
Restructuring and asset impairment charges | (567) | (18) | (203) |
Total Operating Expenses | (10,422) | (4,162) | (7,871) |
Operating Income | 762 | 7,109 | 3,545 |
Other Income, Net | 130 | 90 | 58 |
Loss on Debt Extinguishment | (122) | 0 | 0 |
Interest Expense | (283) | (308) | (353) |
Income from Continuing Operations Before Income Taxes | 239 | 6,891 | 3,250 |
Income Tax Benefit (Expense) | 53 | (1,614) | (908) |
Income from Continuing Operations | 292 | 5,277 | 2,342 |
Income (Loss) from Discontinued Operations, Net of Tax | 5 | (124) | (32) |
Net Income | 297 | 5,153 | 2,310 |
Net Income Attributable to Noncontrolling Interests | (230) | (83) | (52) |
Net Income Attributable to McKesson Corporation | $ 67 | $ 5,070 | $ 2,258 |
Diluted | |||
Continuing operations (in dollars per share) | $ 0.30 | $ 23.28 | $ 9.84 |
Discontinued operations (in dollars per share) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | 0.32 | 22.73 | 9.70 |
Basic | |||
Continuing operations (in dollars per share) | 0.30 | 23.50 | 9.96 |
Discontinued operations (in dollars per share) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | $ 0.32 | $ 22.95 | $ 9.82 |
Weighted Average Common Shares | |||
Diluted (in shares) | 209 | 223 | 233 |
Basic (in shares) | 208 | 221 | 230 |
EIS, Zee Medical and Nurse Triage Businesses | |||
Operating Expenses | |||
Gains from sales of businesses | $ 109 | $ 0 | $ 103 |
Healthcare Technology Net Asset Exchange | |||
Operating Expenses | |||
Gains from sales of businesses | 37 | 3,947 | 0 |
Change Healthcare | |||
Operating Expenses | |||
Loss from Equity Method Investment in Change Healthcare | $ (248) | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 297 | $ 5,153 | $ 2,310 |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustments arising during the period | 624 | (632) | 113 |
Unrealized gains (losses) on cash flow hedges arising during the period | (30) | (19) | 9 |
Retirement-related benefit plans | 15 | (8) | 50 |
Other Comprehensive Income (Loss), Net of Tax | 609 | (659) | 172 |
Comprehensive Income | 906 | 4,494 | 2,482 |
Comprehensive (Income) Attributable to Noncontrolling Interests | (415) | (4) | (72) |
Comprehensive Income Attributable to McKesson Corporation | $ 491 | $ 4,490 | $ 2,410 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 2,672 | $ 2,783 |
Receivables, net | 17,711 | 18,215 |
Inventories, net | 16,310 | 15,278 |
Prepaid expenses and other | 443 | 672 |
Total Current Assets | 37,136 | 36,948 |
Property, Plant and Equipment, Net | 2,464 | 2,292 |
Goodwill | 10,924 | 10,586 |
Intangible Assets, Net | 4,102 | 3,665 |
Equity Method Investment in Change Healthcare | 3,728 | 4,063 |
Other Noncurrent Assets | 2,027 | 3,415 |
Total Assets | 60,381 | 60,969 |
Current Liabilities | ||
Drafts and accounts payable | 32,177 | 31,022 |
Short-term borrowings | 0 | 183 |
Deferred revenue | 63 | 346 |
Current portion of long-term debt | 1,129 | 1,057 |
Other accrued liabilities | 3,316 | 3,004 |
Total Current Liabilities | 36,685 | 35,612 |
Long-Term Debt | 6,751 | 7,305 |
Long-Term Deferred Tax Liabilities | 2,804 | 3,678 |
Other Noncurrent Liabilities | 2,625 | 1,774 |
Commitments and Contingent Liabilities | ||
Redeemable Noncontrolling Interests | 1,459 | 1,327 |
McKesson Corporation Stockholders’ Equity | ||
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 800 shares authorized at March 31, 2018 and 2017, 275 and 273 shares issued at March 31, 2018 and 2017 | 3 | 3 |
Additional Paid-in Capital | 6,188 | 6,028 |
Retained Earnings | 12,986 | 13,189 |
Accumulated Other Comprehensive Loss | (1,717) | (2,141) |
Other | (1) | (2) |
Treasury Stock, at Cost, 73 and 62 shares at March 31, 2018 and 2017 | (7,655) | (5,982) |
Total McKesson Corporation Stockholders’ Equity | 9,804 | 11,095 |
Noncontrolling Interests | 253 | 178 |
Total Equity | 10,057 | 11,273 |
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ 60,381 | $ 60,969 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Mar. 31, 2017 |
McKesson Corporation Stockholders’ Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 800,000,000 | 800,000,000 |
Common stock issued (shares) | 275,000,000 | 273,000,000 |
Treasury stock (shares) | 73,000,000 | 62,000,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Other Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury | Noncontrolling Interests |
Beginning balance, common stock (in shares) at Mar. 31, 2015 | 384 | |||||||
Beginning balance at Mar. 31, 2015 | $ 8,085 | $ 4 | $ 6,968 | $ (7) | $ 12,705 | $ (1,713) | $ (9,956) | $ 84 |
Beginning balance, treasury common stock (shares) at Mar. 31, 2015 | (152) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 3 | 1 | ||||||
Issuance of shares under employee plans | 14 | 123 | $ (109) | |||||
Share-based compensation | 130 | 130 | ||||||
Tax benefit related to issuance of shares under employee plans | 117 | 117 | ||||||
Other comprehensive income (loss) | 152 | 152 | ||||||
Net income | 2,266 | 2,258 | 8 | |||||
Repurchase of common stock (in shares) | (9) | |||||||
Repurchase of common stock | (1,504) | $ (1,504) | ||||||
Retirement of common stock (in shares) | 116 | 116 | ||||||
Retirement of common stock | $ (1) | (1,493) | (6,354) | $ 7,848 | ||||
Cash dividends declared | (249) | (249) | ||||||
Other | (3) | 5 | (8) | |||||
Ending balance common stock (in shares) at Mar. 31, 2016 | 271 | |||||||
Ending balance at Mar. 31, 2016 | 9,008 | $ 3 | 5,845 | (2) | 8,360 | (1,561) | $ (3,721) | 84 |
Ending balance, treasury common stock (shares) at Mar. 31, 2016 | (46) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 3 | |||||||
Issuance of shares under employee plans | 64 | 125 | $ (61) | |||||
Share-based compensation | 110 | 110 | ||||||
Tax benefit related to issuance of shares under employee plans | 7 | 7 | ||||||
Acquisition of Vantage | 89 | 89 | ||||||
Other comprehensive income (loss) | (580) | (580) | ||||||
Net income | 5,109 | 5,070 | 39 | |||||
Repurchase of common stock (in shares) | (16) | |||||||
Repurchase of common stock | (2,250) | (50) | $ (2,200) | |||||
Cash dividends declared | (249) | (249) | ||||||
Other (in shares) | (1) | |||||||
Other | (35) | (2) | 0 | 1 | (34) | |||
Ending balance common stock (in shares) at Mar. 31, 2017 | 273 | |||||||
Ending balance at Mar. 31, 2017 | $ 11,273 | $ 3 | 6,028 | (2) | 13,189 | (2,141) | $ (5,982) | 178 |
Ending balance, treasury common stock (shares) at Mar. 31, 2017 | (62) | (62) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 2 | |||||||
Issuance of shares under employee plans | $ 67 | 126 | $ (59) | |||||
Share-based compensation | 67 | $ 67 | ||||||
Payments to noncontrolling interests | (98) | (98) | ||||||
Other comprehensive income (loss) | 424 | 424 | ||||||
Net income | 254 | 67 | 187 | |||||
Repurchase of common stock (in shares) | (36) | (11) | ||||||
Repurchase of common stock | (1,650) | $ (1,614) | ||||||
Exercise of put right by noncontrolling shareholders of McKesson Europe | 3 | $ 3 | ||||||
Cash dividends declared | (270) | (270) | ||||||
Other (in shares) | ||||||||
Other | (13) | 1 | (14) | |||||
Ending balance common stock (in shares) at Mar. 31, 2018 | 275 | |||||||
Ending balance at Mar. 31, 2018 | $ 10,057 | $ 3 | $ 6,188 | $ (1) | $ 12,986 | $ (1,717) | $ (7,655) | $ 253 |
Ending balance, treasury common stock (shares) at Mar. 31, 2018 | (73) | (73) |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 1.30 | $ 1.12 | $ 1.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Activities | |||
Net income | $ 297 | $ 5,153 | $ 2,310 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation | 303 | 324 | 281 |
Amortization | 648 | 586 | 604 |
Goodwill and other asset impairment charges | 2,217 | 290 | 8 |
Deferred taxes | (868) | 882 | 64 |
Share-based compensation expense | 69 | 115 | 123 |
Charges (credits) associated with last-in-first-out inventory method | (99) | (7) | 244 |
Loss (gain) from sales of businesses and equity investments | (169) | 94 | (103) |
Other non-cash items | (2) | 88 | 108 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | 1,175 | (762) | (1,957) |
Inventories | (458) | 320 | (1,251) |
Drafts and accounts payable | 271 | 2,070 | 3,302 |
Deferred revenue | (143) | (87) | (120) |
Taxes | 671 | 146 | (78) |
Settlement payment | 0 | (150) | 0 |
Other | 222 | (371) | 137 |
Net cash provided by operating activities | 4,345 | 4,744 | 3,672 |
Investing Activities | |||
Payments for property, plant and equipment | (405) | (404) | (488) |
Capitalized software expenditures | (175) | (158) | (189) |
Acquisitions, net of cash and cash equivalents acquired | (2,893) | (4,237) | (40) |
Restricted cash for acquisitions | 1,469 | (506) | (939) |
Other | (18) | 75 | (111) |
Net cash used in investing activities | (1,522) | (3,796) | (1,557) |
Financing Activities | |||
Proceeds from short-term borrowings | 20,542 | 8,294 | 1,561 |
Repayments of short-term borrowings | (20,725) | (8,124) | (1,688) |
Proceeds from issuances of long-term debt | 1,522 | 1,824 | 0 |
Repayments of long-term debt | (2,287) | (1,601) | (1,598) |
Payments for debt extinguishments | (112) | 0 | 0 |
Common stock transactions: | |||
Issuances | 132 | 120 | 123 |
Share repurchases, including shares surrendered for tax withholding | (1,709) | (2,311) | (1,612) |
Dividends paid | (262) | (253) | (244) |
Other | (185) | (18) | 5 |
Net cash used in financing activities | (3,084) | (2,069) | (3,453) |
Effect of exchange rate changes on cash and cash equivalents | 150 | (144) | 45 |
Net decrease in cash and cash equivalents | (111) | (1,265) | (1,293) |
Cash and cash equivalents at beginning of year | 2,783 | 4,048 | 5,341 |
Cash and cash equivalents at end of year | 2,672 | 2,783 | 4,048 |
Cash paid for: | |||
Interest | 298 | 315 | 337 |
Income taxes, net of refunds | 144 | 587 | 923 |
EIS, Zee Medical and Nurse Triage Businesses | |||
Adjustments to reconcile to net cash provided by operating activities: | |||
Gain on Healthcare Technology Net Asset Exchange, net | (109) | 0 | (103) |
Investing Activities | |||
Proceeds from sale of businesses and other assets, net | 374 | 206 | 210 |
Healthcare Technology Net Asset Exchange | |||
Adjustments to reconcile to net cash provided by operating activities: | |||
Gain on Healthcare Technology Net Asset Exchange, net | (37) | (3,947) | 0 |
Investing Activities | |||
Proceeds from sale of businesses and other assets, net | 126 | 1,228 | 0 |
Change Healthcare | |||
Adjustments to reconcile to net cash provided by operating activities: | |||
Loss from equity method investment in Change Healthcare | $ 248 | $ 0 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations : McKesson Corporation (“McKesson,” the “Company,” the “Registrant” or “we” and other similar pronouns) delivers a comprehensive offering of pharmaceuticals and medical supplies and provides services to help our customers improve the efficiency and effectiveness of their healthcare operations. We managed our business through two reportable segments, McKesson Distribution Solutions and McKesson Technology Solutions, as further described in Financial Note 28, “Segments of Business.” Basis of Presentation: The consolidated financial statements and accompanying notes are prepared in accordance with U. S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of McKesson include the financial statements of all wholly-owned subsidiaries and majority-owned or controlled companies. For those consolidated subsidiaries where our ownership is less than 100% , the portion of the net income or loss allocable to the noncontrolling interests is reported as “Net Income Attributable to Noncontrolling Interests” on the consolidated statements of operations. Intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. We consider ourselves to control an entity if we are the majority owner of or have voting control over such entity. We also assess control through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business entity is the primary beneficiary of the VIE. We consolidate VIEs when it is determined that we are the primary beneficiary of the VIE. Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. Reclassifications : Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates : The preparation of financial statements in conformity with U.S. GAAP requires that we make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual amounts could differ from those estimated amounts. Cash and Cash Equivalents : All highly liquid debt and money market instruments purchased with original maturity of three months or less at the date of acquisition are included in cash and cash equivalents. Cash equivalents are carried at fair value. Cash equivalents are primarily invested in AAA rated prime and U.S. government money market funds denominated in U.S. dollars, overnight repurchase agreements collateralized by U.S. government securities, Canadian government securities and/or securities that are guaranteed or sponsored by the U.S. government and an AAA rated prime money market fund denominated in British pound sterling. The remaining cash and cash equivalents are deposited with several financial institutions. Deposits may exceed the amounts insured by the Federal Deposit Insurance Corporation in the U.S. and similar deposit insurance programs in other jurisdictions. We mitigate the risk of our short-term investment portfolio by depositing funds with reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Prepaid expenses and other” and “Other Noncurrent Assets” in the consolidated balance sheets. At March 31, 2018, our restricted cash balance was nil . At March 31, 2017, our restricted cash balance was $1.5 billion , which primarily represents cash paid into the escrow accounts for our acquisitions that closed in the first quarter of 2018. Marketable Securities Available-for-Sale : Our marketable securities, which are available-for-sale, are carried at fair value and are included within “Prepaid expenses and other” in the consolidated balance sheets. The unrealized gains and losses, net of the related tax effect, computed in marking these securities to market have been reported within stockholders’ equity. At March 31, 2018 and 2017 , marketable securities were not material. In determining whether an other-than-temporary decline in market value has occurred, we consider the duration that, and extent to which, the fair value of the investment is below its cost, the financial condition and future prospects of the issuer or underlying collateral of a security, and our intent and ability to retain the security in order to allow for an anticipated recovery in fair value. Other-than-temporary declines in fair value from amortized cost for available-for-sale equity securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income, net, in the period in which the loss occurs. Equity Method Investments: Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. We evaluate our equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” for further information relating to our equity method investment in Change Healthcare, LLC (“Change Healthcare”). Concentrations of Credit Risk and Receivables: Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our Distribution Solutions segment. During 2018 , sales to our ten largest customers, including group purchasing organizations (“GPOs”) accounted for approximately 51.7% of our total consolidated revenues. Sales to our largest customer, CVS Health (“CVS”), accounted for approximately 19.9% of our total consolidated revenues. At March 31, 2018 , trade accounts receivable from our ten largest customers were approximately 24.9% of total trade accounts receivable. Accounts receivable from CVS were approximately 16.4% of total trade accounts receivable. As a result, our sales and credit concentration is significant. We also have agreements with GPOs, each of which functions as a purchasing agent on behalf of member hospitals, pharmacies and other healthcare providers, as well as with government entities and agencies. The accounts receivables balances are with individual members of the GPOs, and therefore no significant concentration of credit risk exists. A default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers in the institutional, retail and healthcare provider sectors, which can be affected by a downturn in the economy and changes in reimbursement policies. This credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers. An allowance is recorded in our consolidated financial statements for these estimated amounts. Financing Receivables: We assess and monitor credit risk associated with financing receivables, primarily lease and notes receivables, through regular review of our collection experience in determining our allowance for loan losses. On an ongoing basis, we also evaluate credit quality of our financing receivables utilizing aging of receivables and write-offs, as well as considering existing economic conditions, to determine if an allowance is required. Financing receivables are derecognized if legal title to them has been transferred and all related risks and rewards incidental to ownership have passed to the buyer. As of March 31, 2018 and 2017 , financing receivables and the related allowance were not material to our consolidated financial statements. Inventories: Prior to 2018, we reported inventories at the lower of cost or market (“LCM”). Effective in the first quarter of 2018, we report inventories at the lower of cost or net realizable value, except for inventories determined using the last-in, first-out (“LIFO”) method. Inventories for our Distribution Solutions segment consist of merchandise held for resale. For our Distribution Solutions segment, the majority of the cost of domestic inventories is determined using the LIFO method. The majority of the cost of inventories held in foreign locations is based on weighted average purchase prices using the first-in, first-out method (“FIFO”). Rebates, cash discounts, and other incentives received from vendors are recognized within cost of sales upon the sale of the related inventory. The LIFO method was used to value approximately 63% and 70% of our inventories at March 31, 2018 and 2017 . If we had used the FIFO method of inventory valuation, inventories would have been approximately $906 million and $1,005 million higher than the amounts reported at March 31, 2018 and 2017 . These amounts are equivalent to our LIFO reserves. Our LIFO valuation amount includes both pharmaceutical and non-pharmaceutical products. We recognized LIFO credits of $99 million and $7 million in 2018 and 2017 and net LIFO charges of $244 million in 2016 in cost of sales within our consolidated statements of operations. A LIFO charge is recognized when the net effect of price increases on pharmaceutical and non-pharmaceutical products held in inventory exceeds the impact of price declines, including the effect of branded pharmaceutical products that have lost market exclusivity. A LIFO credit is recognized when the net effect of price declines exceeds the impact of price increases on pharmaceutical and non-pharmaceutical products held in inventory. We believe that the average inventory costing method provides a reasonable estimation of the current cost of replacing inventory (i.e., “market”). As such, our LIFO inventory is valued at the lower of LIFO cost or market. As of March 31, 2018 and 2017, inventories at LIFO did not exceed market. Shipping and Handling Costs: We include costs to pack and deliver inventory to our customers in selling, distribution and administrative expenses. Shipping and handling costs of $914 million , $814 million , and $789 million were included in our selling, distribution and administrative expenses in 2018, 2017 and 2016. Property, Plant and Equipment: We state our property, plant and equipment (“PPE”) at cost and depreciate them under the straight-line method at rates designed to distribute the cost of PPE over estimated service lives ranging from one to thirty years. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. Goodwill: Goodwill is tested for impairment on an annual basis in the fourth quarter or more frequently if indicators of potential impairment exist. Impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or a component, one level below our Distribution Solutions and Technology Solutions operating segments, for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The goodwill testing requires us to compare the estimated fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit is lower than its estimated fair value, no further evaluation is required. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded for that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we use a combination of the market approach and the income approach. Under the market approach, we estimate fair value by comparing the business to similar businesses or guideline companies whose securities are actively traded in public markets. Under the income approach, we use a discounted cash flow (“DCF”) model in which cash flows anticipated over future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate expected rate of return. The fair value estimates in the goodwill impairment analysis are highly sensitive to the discount rates used in the expected cash flows attributable to the reporting units. The discount rates are the weighted average cost of capital measuring the reporting unit’s cost of debt and equity financing weighted by the percentage of debt and percentage of equity in a company’s target capital. Other estimates inherent in both the market and income approaches include long-term growth rates, projected revenues, earnings and cash flow forecasts for the reporting units. In addition, we compare the aggregate of the reporting units’ fair value to the Company’s market capitalization as a further corroboration of the fair values. Goodwill testing requires a complex series of assumptions and judgments by management in projecting future operating results, selecting guideline companies for comparisons and assessing risks. The use of alternative assumptions and estimates could affect the fair values and change the impairment determinations. Intangible Assets: Currently all of our intangible assets are subject to amortization and are amortized based on the pattern of their economic consumption or on a straight-line basis over their estimated useful lives, ranging from one to 38 years. We review intangible assets for impairment at an asset group level whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its estimated fair market value. Capitalized Software Held for Internal Use: We capitalize costs of software held for internal use during the application development stage of a project and amortize those costs over their estimated useful lives ranging from one to ten years. As of March 31, 2018 and 2017 , capitalized software held for internal use was $425 million and $455 million , net of accumulated amortization of $1,182 million and $1,177 million , and was included in other assets in the consolidated balance sheets. Insurance Programs: Under our insurance programs, we seek to obtain coverage for catastrophic exposures as well as those risks required to be insured by law or contract. It is our policy to retain a significant portion of certain losses primarily related to workers’ compensation and comprehensive general, product and vehicle liability. Provisions for losses expected under these programs are recorded based on our estimate of the aggregate liability for claims incurred as well as for claims incurred but not yet reported. Such estimates utilize certain actuarial assumptions followed in the insurance industry. Revenue Recognition: Distribution Solutions Revenues for our Distribution Solutions segment are recognized when persuasive evidence of an arrangement exists, product is delivered and title passes to the customer or when services have been rendered and there are no further obligations to the customer, the price is fixed or determinable, and collection of the amounts are reasonably assured. Revenues for our Distribution Solutions segment include large volume sales of pharmaceuticals primarily to a limited number of large customers who warehouse their own products. We order bulk product from the manufacturer, receive and process the product primarily through our central distribution facilities and deliver the bulk product (generally in the same form as received from the manufacturer) directly to our customers’ warehouses. We also record revenues for direct store deliveries of shipments from the manufacturer to our customers. We assume the primary liability to the manufacturer for these products. Revenues are recorded gross when we are the primary party obligated in the transaction, take title to and possession of the inventory, are subject to inventory risk, have latitude in establishing prices, assume the risk of loss for collection from customers as well as delivery or return of the product, are responsible for fulfillment and other customer service requirements, or the transactions have several but not all of these indicators. Revenues are recorded net of sales returns, allowances, rebates and other incentives. Our sales return policy generally allows customers to return products only if they can be resold for value or returned to suppliers for credit. Sales returns are accrued based on estimates at the time of sale to the customer. Sales returns from customers were approximately $3.1 billion in 2018 , 2017 and 2016 . We collect taxes from customers and remit to governmental authorities. We report all revenues net of taxes assessed by governmental authorities. This segment also provides software as a service (“SaaS”) and claims processing. Revenues for SaaS-based subscription and transaction processing fees are recognized ratably over the contract terms. Technology Solutions Revenues for our Technology Solutions segment are generated primarily by licensing software and software systems consisting of software, hardware and maintenance support, providing SaaS or SaaS-based solutions, outsourcing and professional services. Revenue for this segment is recognized as follows: Software systems are marketed under information systems agreements as well as service agreements. Perpetual software arrangements are recognized at the time of delivery or under the percentage-of-completion method if the arrangements require significant production, modification or customization of the software. Contracts accounted for under the percentage-of-completion method are generally measured based on the ratio of labor hours incurred to date to total estimated labor hours to be incurred. Changes in estimates to complete and revisions in overall profit estimates on these contracts are charged to earnings in the period in which they are determined. We accrue for contract losses if and when the current estimate of total contract costs exceeds total contract revenue. Revenue from time-based software license agreements is recognized ratably over the term of the agreement. Software implementation fees are recognized as the work is performed or under the percentage-of-completion method. Maintenance and support agreements are marketed under annual or multi-year agreements and are recognized ratably over the period covered by the agreements. Hardware revenues are generally recognized upon delivery. SaaS-based subscription, content and transaction processing fees are generally marketed under annual and multi-year agreements and are recognized ratably over the contracted terms beginning on the service start date for fixed fee arrangements and recognized as transactions are performed beginning on the service start date for per-transaction fee arrangements. Remote processing service fees are recognized monthly as the service is performed. Outsourcing service revenues are recognized as the service is performed. We also offer certain products on an application service provider basis, making our software functionality available on a remote hosting basis from our data centers. The data centers provide system and administrative support, as well as hosting services. Revenue on products sold on an application service provider basis is recognized on a monthly basis over the term of the contract beginning on the service start date of products hosted. This segment engages in multiple-element arrangements, which may contain any combination of software, hardware, implementation, SaaS-based offerings, consulting services or maintenance services. For multiple-element arrangements that do not include software, revenue is allocated to the separate elements based on their relative selling price and recognized in accordance with the revenue recognition criteria applicable to each element. Relative selling price is determined based on vendor-specific objective evidence (“VSOE”) of selling price if available, third-party evidence (“TPE”), if VSOE of selling price is not available, or estimated selling price (“ESP”) if neither VSOE of selling price nor TPE is available. For multiple-element arrangements accounted for in accordance with specific software accounting guidance when some elements are delivered prior to others in an arrangement and VSOE of fair value exists for the undelivered elements, revenue for the delivered elements is recognized upon delivery of such items. The segment establishes VSOE for hardware and implementation and consulting services based on the price charged when sold separately, and for maintenance services, based on renewal rates offered to customers. Revenue for the software element is recognized under the residual method only when fair value has been established for all of the undelivered elements in an arrangement. If fair value cannot be established for any undelivered element, all of the arrangement’s revenue is deferred until the delivery of the last element or until the fair value of the undelivered element is determinable. For multiple-element arrangements with both software and nonsoftware elements, arrangement consideration is allocated between the software elements as a whole and nonsoftware elements. The segment then further allocates consideration to the individual elements within the software group, and revenue is recognized for all elements under the applicable accounting guidance and our policies described above. Supplier Incentives: Fees for services and other incentives received from suppliers, relating to the purchase or distribution of inventory, are generally reported as a reduction to cost of sales. We consider these fees and other incentives to represent product discounts and as a result, the amounts are recognized within cost of sales upon the sale of the related inventory. Supplier Reserves: We establish reserves against amounts due from suppliers relating to various fees for services and price and rebate incentives, including deductions taken against payments otherwise due to them. These reserve estimates are established based on judgment after considering the status of current outstanding claims, historical experience with the suppliers, the specific incentive programs and any other pertinent information available. We evaluate the amounts due from suppliers on a continual basis and adjust the reserve estimates when appropriate based on changes in facts and circumstances. Adjustments to supplier reserves are generally included within cost of sales. The ultimate outcome of any outstanding claims may be different than our estimate. As of March 31, 2018 and 2017 , supplier reserves were $227 million and $201 million . All of the supplier reserves at March 31, 2018 and 2017 pertain to our Distribution Solutions segment. Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or the tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon effective settlement. Deferred taxes are not provided on undistributed earnings of our foreign operations that are considered to be permanently reinvested. Foreign Currency Translation: The reporting currency of the Company and its subsidiaries is the U.S. dollar. Our foreign subsidiaries generally consider their local currency to be their functional currency. Foreign currency-denominated assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at period-end exchange rates, revenues and expenses are translated at average exchange rates during the corresponding period and stockholders’ equity accounts are primarily translated at historical exchange rates. Foreign currency translation adjustments are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in the consolidated statements of operations and were not material to our consolidated results of operations in 2018 , 2017 or 2016 . We release cumulative translation adjustments from stockholders’ equity into net income as a gain or loss only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. We also release all or a pro rata portion of the cumulative translation adjustments into net income upon the sale of an equity method investment that is a foreign entity. Derivative Financial Instruments: Derivative financial instruments are used principally in the management of foreign currency exchange and interest rate exposures and are recorded on the consolidated balance sheets at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized as a charge or credit to earnings. We use foreign currency-denominated notes and cross-currency swaps to hedge a portion of our net investment in our foreign subsidiaries. We use cash flow hedges primarily to reduce the effects of foreign currency exchange rate risk related to intercompany loans denominated in non-functional currencies. If the financial instrument is designated as a cash flow hedge or net investment hedge, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of operations when the hedged item affects earnings. We evaluate hedge effectiveness at the inception and on an ongoing basis, and ineffective portions of changes in the fair value of cash flow hedges and net investment hedges are recognized as a charge or credit to earnings. In the fourth quarter of 2018, we adopted amended guidance for derivatives and hedging which eliminates the existing requirement to recognize periodic hedge ineffectiveness in earnings for cash flow hedges and net investment hedges that are highly effective. The adoption had no material impact on our financial statements as there was no ineffectiveness recognized on our cash flow hedges or net investment hedges prior to adoption. Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change included in earnings. Comprehensive Income: Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Our other comprehensive income primarily consists of foreign currency translation adjustments from those subsidiaries where the local currency is the functional currency including gains and losses on net investment hedges, unrealized gains and losses on cash flow hedges, as well as unrealized gains and losses on retirement-related benefit plans. Noncontrolling Interests and Redeemable Noncontrolling Interests: Noncontrolling interests represent the portion of profit or loss, net assets and comprehensive income that is not allocable to McKesson Corporation. In 2018, 2017 and 2016, net income attributable to noncontrolling interests included recurring compensation that McKesson is obligated to pay to the noncontrolling shareholders of McKesson Europe AG (“McKesson Europe”), formerly known as Celesio AG, under the domination and profit and loss transfer agreement. In 2018 and 2017, net income attributable to noncontrolling interests also included third-party equity interests in our consolidated entities including Vantage Oncology Holdings, LLC (“Vantage”) and ClarusONE Sourcing Services LLP (“ClarusONE”), which was established between McKesson and Walmart, Inc in 2017. Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on our consolidated balance sheets. Refer to Financial Note 11, “Redeemable Noncontrolling Interests and Noncontrolling Interests,” for more information. Share-Based Compensation: We account for all share-based compensation transactions using a fair-value based measurement method. The share-based compensation expense, for the portion of the awards that is ultimately expected to vest, is recognized on a straight-line basis over the requisite service period. The share-based compensation expense recognized has been classified in the consolidated statements of operations or capitalized on the consolidated balance sheets in the same manner as cash compensation paid to our employees. Loss Contingencies: We are subject to various claims, including claims with customers and vendors, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate the loss or a range of possible loss. When a material loss is probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. Disclosure is also provided when it is reasonably possible that a material loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or a range of the loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Such factors bear directly on whether it |
Healthcare Technology Net Asset
Healthcare Technology Net Asset Exchange | 12 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Healthcare Technology Net Asset Exchange | Healthcare Technology Net Asset Exchange On March 1, 2017, we contributed the majority of our McKesson Technology Solutions businesses (“Core MTS Business”) to the newly formed joint venture, Change Healthcare, under the terms of a contribution agreement previously entered into between McKesson and Change Healthcare Holdings, Inc. (“Change”) and others including shareholders of Change. We retained our RelayHealth Pharmacy (“RHP”) and Enterprise Information Solutions (“EIS”) businesses. The EIS business was subsequently sold to a third party in the third quarter of 2018. In exchange for the contribution, we own 70% of the joint venture with the remaining equity ownership held by shareholders of Change. The joint venture is jointly governed by us and shareholders of Change. Gain from Healthcare Technology Net Asset Exchange We accounted for this transaction as a sale of the Core MTS Business and a subsequent purchase of a 70% interest in the newly formed joint venture. Accordingly, in the fourth quarter of 2017, we deconsolidated the Core MTS Business and recorded a pre-tax gain of $3,947 million (after-tax gain of $3,018 million ). The pre-tax gain was calculated based on the difference between the fair value of our 70% equity interest in the joint venture, less the carrying amount of the contributed Core MTS Business’ net assets of $1,132 million and $1,258 million of promissory notes, a $136 million noncurrent liability associated with a tax receivable agreement (as described below) and transaction and other related expenses. The $1,258 million of promissory notes were subsequently repaid in cash from proceeds of Change Healthcare’s long term debt issuance. Additionally, in the first quarter of 2018, we recorded a pre-tax gain of $37 million (after-tax gain of $22 million ) in operating expenses upon the finalization of net working capital and other adjustments. During the second quarter of 2018, we received $126 million in cash from Change Healthcare representing the final settlement of the net working capital and other adjustments. Equity Method Investment in Change Healthcare Our investment in the joint venture is accounted for using the equity method of accounting on a one-month reporting lag. In 2018, we recorded our proportionate share of loss from Change Healthcare of $248 million , which included transaction and integration expenses incurred by the joint venture and fair value adjustments including incremental intangible assets amortization associated with basis differences, partially offset by a provisional tax benefit of $76 million recognized by Change Healthcare primarily due to a reduction in the future applicable tax rate related to the December 2017 enactment of the 2017 Tax Act. This amount was recorded under the caption, “Loss from Equity Method Investment in Change Healthcare,” in our consolidated statement of operations. At March 31, 2018 and 2017, our carrying value in our investment was $3,728 million and $4,063 million , which exceeded our proportionate share of the joint venture’s book value of net assets by approximately $4,472 million and $4,762 million , primarily reflecting equity method intangible assets, goodwill and other fair value adjustments. Related Party Transactions In connection with the transaction, McKesson, Change Healthcare and certain shareholders of Change entered into various ancillary agreements, including transition services agreements (“TSA”), a transaction and advisory fee agreement (“Advisory Agreement”), a tax receivable agreement (“TRA”) and certain other commercial agreements. Pursuant to the TRA, McKesson may be required to make certain payments or may be entitled to receive certain payments related to the cash tax savings attributable to the utilization of certain tax attributes, including certain amortizable tax basis in software contributed by McKesson to Change Healthcare. No such payments were required to be made or received for 2017 and 2018. At March 31, 2018 and 2017, we had $90 million and $136 million of noncurrent liability payable to shareholders of Change associated with the TRA. During 2018, we recorded a credit of $46 million in operating expense to reduce this liability to $90 million reflecting a reduction in future applicable tax rate related to the 2017 Tax Act. The TRA liability remained at $90 million at March 31, 2018. The amount of liability is determined based on certain estimates and could become payable in periods after a disposition of our investment in Change Healthcare. The total fees charged by us to the joint venture for various transition services under the TSA were $91 million in 2018 and were not material in 2017. Transition services fees are included within operating expenses in our consolidated statements of operations. In 2018 and 2017, we did not earn material transaction and advisory fees under the Advisory Agreement. Revenues recognized and expenses incurred under commercial arrangements with Change Healthcare were not material during 2018 and 2017. At March 31, 2018 and 2017, receivables due from the joint venture were not material. |
Goodwill Impairment Charges
Goodwill Impairment Charges | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment Charges | Goodwill Impairment Charges We recorded non-cash pre-tax goodwill impairment charges of $1,738 million within the Distribution Solutions segment in 2018 and $290 million within the Technology Solutions segment in 2017. The charges were recorded under the caption, “Goodwill Impairment Charges” in the accompanying consolidated statements of operations. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. We evaluate goodwill for impairment on an annual basis as of January 1 each year and at an interim date, if indicators of potential impairment exist. The fair value of the reporting unit was determined using a combination of an income approach based on a DCF model and a market approach based on guideline public companies’ revenues and earnings before interest, tax, depreciation and amortization multiples. Fair value estimates result from a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions that have been deemed reasonable by management as of the measurement date. Any changes in key assumptions, including failure to improve operations of certain retail pharmacy stores, additional government reimbursement reductions, deterioration in the financial market, an increase in interest rates or an increase in the cost of equity financing by market participants within the industry, or other unanticipated events and circumstances, may affect such estimates. Fair value assessments of the reporting unit are considered a Level 3 measurement due to the significance of unobservable inputs developed using company specific information. Fiscal 2018 McKesson Europe In 2018, we recorded total non-cash pre-tax and after-tax charges of $1,283 million to impair the carrying value of goodwill for our McKesson Europe reporting unit within our Distribution Solutions segment, as further described below. There were no tax benefits associated with these goodwill impairment charges. At March 31, 2018, this reporting unit had a remaining goodwill balance of $1,851 million . During the second quarter of 2018, our McKesson Europe reporting unit had a decline in its estimated future cash flows, primarily in our United Kingdom (“U.K.”) retail business, driven by significant government reimbursement reductions affecting retail pharmacy economics across the U.K. market. Accordingly, we performed an interim one-step goodwill impairment test under the amended goodwill guidance for this reporting unit prior to our annual impairment test. As a result of the interim impairment test, the estimated fair value of this reporting unit was determined to be lower than the carrying value and we recorded a non-cash goodwill impairment charge (pre-tax and after-tax) of $350 million . The discount rate and terminal growth rate used in our 2018 second quarter impairment testing were 7.5% and 1.25% compared to 7.0% and 1.5% in our 2017 annual impairment test. Additionally, as a result of the 2018 annual impairment test, we determined that the carrying value of the McKesson Europe reporting unit further exceeded its estimated fair value and recognized a non-cash goodwill impairment charge (pre-tax and after-tax) of $933 million in the fourth quarter of 2018. This reporting unit had a further decline in its estimated future cash flows driven by weakening script growth outlook in our U.K. business and by a more competitive environment in France during the fourth quarter of 2018. The discount rate and terminal growth rate used in our 2018 annual impairment testing were 8.0% and 1.25% . Rexall Health As a result of the 2018 annual impairment test, we determined that the carrying value of our Rexall Health reporting unit within our Distribution Solutions segment exceeded its estimated fair value and recognized a non-cash goodwill impairment charge (pre-tax and after-tax) of $455 million in the fourth quarter of 2018. 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 can only be partially mitigated through the business’ cost saving efforts. The discount rate and terminal growth rate used in our impairment testing for this reporting unit were 10.0% and 2.0% . At March 31, 2018, the Rexall Health reporting unit had no remaining goodwill related to our acquisition of Rexall Health. Other risks, expenses and future developments that we were unable to anticipate as of the testing dates in 2018 may require us to further revise the future projected cash flows, which could adversely affect the fair value of our reporting units in future periods. As a result, we may be required to record additional impairment charges. Also, refer to Financial Note 4, “Restructuring and Asset Impairment Charges,” for more information. Fiscal 2017 Enterprise Information Solutions In conjunction with the 2017 Healthcare Technology Net Asset Exchange, we evaluated strategic options for our EIS business, which was a reporting unit within our Technology Solutions segment. In the second quarter of 2017, we recorded a non-cash pre-tax charge of $290 million ( $282 million after-tax) to impair the carrying value of this reporting unit’s goodwill. The impairment primarily resulted from a decline in estimated cash flows. The amount of goodwill impairment for the EIS business was determined under the former accounting guidance on goodwill impairment testing, and computed as the excess of the carrying value of the reporting unit’s goodwill over its implied fair value of its goodwill. The charge was recorded under the caption, “Goodwill Impairment Charges,” in the accompanying consolidated statements of operations. Most of the goodwill impairment for this reporting unit was not deductible for income tax purposes. Refer to Financial Note 5, “Divestitures” for more information on the sale of the EIS business. Refer to Financial Note 21, “Fair Value Measurements,” for more information on this nonrecurring fair value measurement. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges We recorded pre-tax restructuring and asset impairment charges of $567 million in 2018 primarily within the Distribution Solutions segment, $18 million in 2017 and $203 million in 2016 within the Distribution Solutions segment, Technology Solutions segment and Corporate. These charges were recorded under the caption, “Restructuring and asset impairment charges” in the accompanying consolidated statements of operations. Fiscal 2018 McKesson Europe In 2018, we recorded total non-cash pre-tax asset impairment charges of $446 million ( $410 million after-tax) and pre-tax restructuring charges of $74 million ( $67 million after-tax) primarily representing employee severance and lease exit costs for our McKesson Europe business, as further discussed below. In the second quarter of 2018, we recorded non-cash pre-tax charges of $189 million ( $157 million after-tax) to impair the carrying value of certain intangible assets (primarily pharmacy licenses) and store assets (primarily fixtures). The impairment was primarily driven by our U.K. retail business due to the previously discussed decline in estimated future cash flows which resulted from significant government reimbursement reductions in the U.K. In the fourth quarter of 2018, we recorded non-cash pre-tax charges of $257 million ( $253 million after-tax) to impair the carrying value of certain intangible assets (primarily customer relationships) and capitalized software assets due to further declines in estimated future cash flows in our European business. We utilized an income approach (DCF method) or a combination of an income approach and a market approach for estimating the fair value of long-lived assets. The fair value of the intangible assets is considered a Level 3 fair value measurement due to the significance of unobservable inputs developed using company specific information. On September 29, 2017, we committed to a restructuring plan, which primarily consists of the closures of underperforming retail stores in the U.K. and a reduction in workforce. The plan is expected to be substantially implemented prior to the first half of 2019. As part of this plan, we recorded pre-tax restructuring charges of $74 million ( $67 million after-tax) in operating expenses during 2018 primarily representing employee severance and lease exit costs. We made $10 million of cash payments, primarily related to employee severance. The reserve balance as of March 31, 2018 includes $42 million recorded in other accrued liabilities in our consolidated balance sheets. We expect to record total pre-tax restructuring charges of approximately $90 million to $130 million for our McKesson Europe business, of which $74 million of pre-tax charges were recorded to date. Estimated remaining restructuring charges primarily consist of lease termination and other exit costs. Rexall Health In the fourth quarter of 2018, we recorded non-cash pre-tax and after-tax charges of $33 million to impair the carrying value of certain intangible assets (primarily customer relationships). 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 can only be partially mitigated through the business’ cost saving efforts. We utilized an income approach (DCF method) for estimating the fair value of long-lived assets. The fair value of the intangible assets is considered a Level 3 fair value measurement due to the significance of unobservable inputs developed using company specific information. Fiscal 2016 Cost Alignment Plan On March 14, 2016, we committed to a restructuring plan to lower our operating costs (the “Cost Alignment Plan”). The Cost Alignment Plan primarily consists of a reduction in workforce, and business process initiatives that will be substantially implemented prior to the end of 2019. Business process initiatives primarily include plans to reduce operating costs of our distribution and pharmacy operations, administrative support functions, and technology platforms, as well as the disposal and abandonment of certain non-core businesses. As a result of the Cost Alignment Plan, we expect to record total pre-tax charges of approximately $250 million to $270 million , of which $256 million of pre-tax charges were recorded to date. The remaining charges under this program primarily consist of exit-related costs and accelerated depreciation and amortization related to our Distribution Solutions segment. We recorded restructuring charges of $13 million in 2018 and $14 million in 2017 including asset impairment and accelerated depreciation and amortization, which were primarily recorded within operating expenses within our Distribution Solutions segment. We recorded restructuring charges of $229 million primarily related to severance and employee-related costs, in which restructuring charges of $26 million were recorded in cost of sales and $203 million were recorded in operating expenses in 2016. Restructuring charges for our Cost Alignment Plan for the year ended March 31, 2016 consisted of the following: (In millions) Distribution Solutions Technology Solutions Corporate Total Severance and employee-related costs, net (1) $ 147 $ 44 $ 16 $ 207 Exit-related costs 3 1 1 5 Asset impairments and accelerated depreciation and amortization (2) 11 6 — 17 Total $ 161 $ 51 $ 17 $ 229 Cost of Sales $ 5 $ 21 $ — $ 26 Operating Expenses 156 30 17 203 Total $ 161 $ 51 $ 17 $ 229 (1) Severance and employee-related costs, net, include charges of $117 million and $90 million , for a total of $207 million , for a reduction in workforce and business process initiatives. (2) Asset impairments and accelerated depreciation and amortization charges primarily include impairments for capitalized software projects and software licenses due to abandonments. The following table summarizes the activity related to the restructuring liabilities associated with the Cost Alignment Plan for the years ended March 31, 2018 and 2017: (In millions) Distribution Solutions Technology Solutions Corporate Total Balance, March 31, 2016 $ 156 $ 45 $ 21 $ 222 Net restructuring charges recognized 19 (10 ) 5 14 Non-cash charges (10 ) — 1 (9 ) Cash payments (67 ) (20 ) (19 ) (106 ) Other (8 ) (5 ) (2 ) (15 ) Balance, March 31, 2017 (1) $ 90 $ 10 $ 6 $ 106 Net restructuring charges recognized 13 — — 13 Non-cash charges — — — — Cash payments (36 ) (4 ) (5 ) (45 ) Other (3 ) (6 ) 4 (5 ) Balance, March 31, 2018 (2) $ 64 $ — $ 5 $ 69 (1) The reserve balance as of March 31, 2017 includes $71 million recorded in other accrued liabilities and $35 million recorded in other noncurrent liabilities on our consolidated balance sheet. (2) The reserve balance as of March 31, 2018 includes $39 million recorded in other accrued liabilities and $30 million recorded in other noncurrent liabilities on our consolidated balance sheet. |
Divestitures
Divestitures | 12 Months Ended |
Mar. 31, 2018 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Divestitures | Divestitures Fiscal 2018 Enterprise Information Solutions On August 1, 2017, we entered into an agreement with a third party to sell our EIS business for $185 million , subject to adjustments for net debt and working capital. On October 2, 2017, the transaction closed upon satisfaction of all closing conditions including the termination of the waiting period under U.S. antitrust laws. We received net cash proceeds of $169 million after $16 million of assumed net debt by the third party. We recognized a pre-tax gain of $109 million (after-tax gain of $30 million ) upon the disposition of this business in the third quarter of 2018 within operating expenses in our Technology Solutions segment. Equity Investment On July 18, 2017, we completed the sale of an equity method investment in our Distribution Solutions segment to a third party for total cash proceeds of $42 million and recognized a pre-tax gain of $43 million ( $26 million after-tax) within other income, net, in the second quarter of 2018. Fiscal 2017 There were no material divestitures in 2017. Fiscal 2016 During the second quarter of 2016, we sold our ZEE Medical business within our Distribution Solutions segment for total proceeds of $134 million and recorded a pre-tax gain of $52 million ( $29 million after-tax) from this sale. During the first quarter of 2016, we sold our nurse triage business within our Technology Solutions segment for net sale proceeds of $84 million and recorded a pre-tax gain of $51 million ( $38 million after-tax) from the sale. These divestitures did not meet the criteria to be reported as discontinued operations since they did not constitute a significant strategic business shift. Accordingly, pre-tax gains from 2018 and 2016 divestitures were recorded within continuing operations of our consolidated statements of operations. Pre- and after-tax income of divested businesses were not material for 2018 and 2016. Discontinued Operations On May 31, 2016, we completed the sale of our Brazilian pharmaceutical distribution business and recognized an after-tax loss of $113 million within discontinued operations in the first quarter of 2017 primarily for the settlement of certain indemnification matters as well as the release of the cumulative translation losses. We made a payment of approximately $100 million related to the sale of this business. The results of discontinued operations for the years ended March 31, 2018, 2017 and 2016 were not material except for the loss recognized upon the disposition of our Brazilian business in 2017. As of March 31, 2018 and 2017, the carrying amounts of total assets and liabilities of discontinued operations were not material. |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 2018 Acquisitions RxCrossroads On January 2, 2018, we completed our acquisition of RxCrossroads for the net purchase consideration of $724 million , which was funded from cash on hand. RxCrossroads is headquartered in Louisville, Kentucky and provides tailored services to pharmaceutical and biotechnology manufacturers. This acquisition will enhance our existing commercialization solutions for manufacturers of branded, specialty, generic and biosimilar drugs. The financial results of the acquired business are included in our North America pharmaceutical distribution and services business within our Distribution Solutions segment since the acquisition date. The provisional fair value of assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $133 million and $43 million . Approximately $368 million of the preliminary purchase price allocation has been assigned to goodwill, which reflects the expected future benefits of certain synergies and intangible assets that do not qualify for separate recognition. The preliminary purchase price allocation included acquired identifiable intangibles of $262 million primarily representing customer relationships and trade names with a weighted average life of 18 years. Amounts of assets and liabilities recognized as of the acquisition date are provisional and subject to change within the measurement period as our fair value assessments are finalized. CoverMyMeds LLC (“CMM”) On April 3, 2017, we completed our acquisition of CMM for the net purchase consideration of $1.3 billion , which was funded from cash on hand. The cash consideration was initially paid into an escrow account prior to our 2017 fiscal year end, and was included in “Other Noncurrent Assets” within our consolidated balance sheet at March 31, 2017. CMM is headquartered in Columbus, Ohio and provides electronic prior authorization solutions to pharmacies, providers, payers, and pharmaceutical manufacturers. The financial results of CMM are included in our North America pharmaceutical distribution and services business within our Distribution Solutions segment since the acquisition date. Pursuant to the agreement, McKesson may pay up to an additional $160 million of contingent consideration based on CMM’s financial performance for 2018 and 2019. As a result, we recorded a liability for this remaining contingent consideration at its estimated fair value of $113 million as of the acquisition date on our consolidated balance sheet. The contingent consideration was estimated using a Monte Carlo simulation, which utilized Level 3 inputs under the fair value measurement and disclosure guidance, including estimated financial forecasts. The contingent liability is re-measured at fair value at each reporting date until the liability is extinguished with changes in fair value being recorded in our consolidated statements of operations. As of March 31, 2018, the contingent consideration liability was $124 million . The initial fair value of this contingent consideration was a non-cash investing activity. In May 2018, we made a cash payment of $68 million representing the contingent consideration for 2018. The fair value of assets acquired and liabilities assumed of CMM as of the acquisition date were finalized upon completion of the measurement period. As of March 31, 2018, the final amounts of fair value recognized for the assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $53 million and $8 million . Approximately $870 million of the final purchase price allocation has been assigned to goodwill, which reflects the expected future benefits of certain synergies and intangible assets that do not qualify for separate recognition. The final purchase price allocation included acquired identifiable intangibles of $487 million primarily representing customer relationships with a weighted average life of 17 years. Other During 2018, we also completed our acquisitions of intraFUSION, Inc. (“intraFUSION”), BDI Pharma, LLC (“BDI”) and Uniprix Group (“Uniprix”) for net cash consideration of $485 million , which was funded from cash on hand. intraFUSION is a healthcare management company based in Houston, Texas and provides services to physician office infusion centers. BDI is a plasma distributor headquartered in Columbia, South Carolina. We acquired the Uniprix banner which serves more than 300 independent pharmacies in Quebec, Canada. The adjusted provisional fair value of assets acquired and liabilities assumed for these acquisitions as of the acquisition date, excluding goodwill and intangibles, were $292 million and $154 million . Approximately $240 million of the adjusted preliminary purchase price allocation has been assigned to goodwill, which reflects the expected future benefits of certain synergies and intangible assets that do not qualify for separate recognition. Included in the adjusted preliminary purchase price allocation for these acquisitions are acquired identifiable intangibles of $118 million primarily representing customer relationships. Amounts recognized as of the acquisition date are provisional and subject to change within the measurement period until our fair value assessments are finalized. The financial results of intraFUSION, BDI and Uniprix are included within our Distribution Solutions segment since the acquisition dates. The fair value of acquired intangibles from these acquisitions was primarily determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 inputs. 2017 Acquisitions In 2017, we completed our acquisitions of Rexall Health, a division of the Katz Group Canada Inc., Vantage, Biologics, Inc. (“Biologics”) and UDG Healthcare Plc (“UDG”), as further discussed below. Rexall Health On December 28, 2016, we completed our acquisition of Rexall Health which operates approximately 450 retail pharmacies in Canada, primarily in Ontario and Western Canada. The net cash purchase consideration of $2.9 billion Canadian dollars (or, approximately $2.1 billion ) was funded from cash on hand. As part of the transaction, McKesson agreed to divest 27 local stores that the Competition Bureau of Canada (the “Bureau”) identified during its review of the transaction. During 2018, we completed the sales of all 27 stores and received net cash proceeds of $116 million Canadian dollars (or, approximately $94 million ) from a third-party buyer. We also received $147 million Canadian dollars (or, approximately $119 million ) in cash from the third-party seller of Rexall Health as the settlement of the post-closing purchase price adjustment related to these store divestitures. No gain or loss was recognized from the sales of these stores. On May 23, 2018, as the result of resolving certain indemnity and other claims, $126 million Canadian dollars (or, approximately $ 98 million ) including accrued interest, was released to us from an escrow account. The receipt of this cash will be recorded as a settlement gain within operating expenses in our consolidated financial statements during the first quarter of 2019. The financial results of Rexall Health are included in our North America pharmaceutical distribution and services business within our Distribution Solutions segment since the acquisition date. The fair value measurements of assets acquired and liabilities assumed of Rexall Health as of the acquisition date were finalized upon completion of the measurement period. At December 31, 2017, the final amounts of fair value recognized for the assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $560 million and $210 million . Approximately $948 million of the final purchase price allocation was assigned to goodwill, which primarily reflects the expected future benefits of certain synergies and intangible assets that do not qualify for separate recognition. The final purchase price allocation included acquired identifiable intangibles of $872 million , net of intangibles classified as held for sale, primarily representing trade names with a weighted average life of 19 years and customer relationships with a weighted average life of 19 years. Vantage & Biologics On April 1, 2016, we acquired Vantage, which is headquartered in Manhattan Beach, California. Vantage provides comprehensive oncology management services, including radiation oncology, medical oncology, and other integrated cancer care services, through over 51 cancer treatment facilities in 13 states. The net purchase consideration of $515 million was funded from cash on hand. On April 1, 2016, we also acquired Biologics for a net purchase consideration of $692 million , which was funded from cash on hand. Biologics is one of the largest independent oncology-focused specialty pharmacies in the U.S., and is headquartered in Cary, North Carolina. Financial results for these acquisitions since the acquisition date are included in our consolidated statements of operations within our North America pharmaceutical distribution and services business, which is part of our Distribution Solutions segment. These acquisitions collectively enhance our specialty pharmaceutical distribution scale and oncology-focused pharmacy offerings, provide solutions for manufacturers and payers, and expand the scope of our community-based oncology and practice management services. The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for these two acquisitions as of the acquisition date as well as adjustments made during the measurement period: (In millions) Amounts Previously Recognized as of Acquisition Date (Provisional) (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date Receivables $ 106 $ (5 ) $ 101 Other current assets, net of cash and cash equivalents acquired 19 — 19 Goodwill 1,219 (87 ) 1,132 Intangible assets 136 79 215 Other long-term assets 76 54 130 Current liabilities (117 ) (15 ) (132 ) Other long-term liabilities (80 ) (89 ) (169 ) Fair value of net assets, less cash and cash equivalents 1,359 (63 ) 1,296 Less: Noncontrolling Interests (152 ) 63 (89 ) Net assets acquired, net of cash and cash equivalents $ 1,207 $ — $ 1,207 (1) As reported on Form 10-Q for the quarter ended June 30, 2016. At March 31, 2017, approximately $558 million and $574 million of the final purchase price allocations for Vantage and Biologics have been assigned to goodwill, which primarily reflects the expected future benefits of synergies upon integrating the businesses. Goodwill represents the excess of the purchase price and the fair value of noncontrolling interests over the fair value of the acquired net assets. The final purchase price allocation included acquired identifiable intangibles of $22 million and $193 million for Vantage and Biologics. Acquired intangibles for Vantage primarily consist of $13 million of non-competition agreements with a weighted average life of 4 years, and for Biologics primarily consist of $170 million of trade names with a weighted average life of 9 years. The final fair value of Vantage’s noncontrolling interests as of the acquisition date was approximately $89 million , which represents the portion of net assets of Vantage’s consolidated entities that is not allocable to McKesson. UDG In the first quarter of 2017, we completed our acquisition of the pharmaceutical distribution businesses of UDG based in Ireland and the U.K. with a net purchase consideration of €380 million (or, approximately $431 million ), which was funded with cash on hand. The acquired UDG businesses primarily provide pharmaceutical and other healthcare products to retail and hospital pharmacies. The acquisition of UDG expands our offerings and strengthens our market position in Ireland and the U.K. Financial results for UDG since the acquisition date are included in our results of operations within our International pharmaceutical distribution and services business, which is part of our Distribution Solutions segment. The fair value measurements of assets acquired and liabilities assumed of UDG as of the acquisition date were finalized upon completion of the measurement period. At March 31, 2017, the final amounts of fair value recognized for the assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $469 million and $340 million . Included in the final purchase price allocation are acquired identifiable intangibles of $120 million primarily comprised of customer relationships with a weighted average life of 10 years. At March 31, 2017, $181 million of the final purchase price allocation has been assigned to goodwill. Goodwill reflects the expected future benefits of synergies upon integrating the businesses. The net effect of the cumulative adjustments was an increase in goodwill of approximately $16 million from the provisional amounts as previously reported at June 30, 2016. The fair value of acquired intangibles was primarily determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate. These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance. Other Acquisitions During the three years presented, we also completed a number of other acquisitions within both of our operating segments. Financial results for our business acquisitions have been included in our consolidated financial statements since their respective acquisition dates. Purchase prices for our business acquisitions have been allocated based on estimated fair values at the date of acquisition. Goodwill recognized for our business acquisitions is generally not expected to be deductible for tax purposes. However, if we acquire the assets of a company, the goodwill may be deductible for tax purposes. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Divestitures Fiscal 2018 Enterprise Information Solutions On August 1, 2017, we entered into an agreement with a third party to sell our EIS business for $185 million , subject to adjustments for net debt and working capital. On October 2, 2017, the transaction closed upon satisfaction of all closing conditions including the termination of the waiting period under U.S. antitrust laws. We received net cash proceeds of $169 million after $16 million of assumed net debt by the third party. We recognized a pre-tax gain of $109 million (after-tax gain of $30 million ) upon the disposition of this business in the third quarter of 2018 within operating expenses in our Technology Solutions segment. Equity Investment On July 18, 2017, we completed the sale of an equity method investment in our Distribution Solutions segment to a third party for total cash proceeds of $42 million and recognized a pre-tax gain of $43 million ( $26 million after-tax) within other income, net, in the second quarter of 2018. Fiscal 2017 There were no material divestitures in 2017. Fiscal 2016 During the second quarter of 2016, we sold our ZEE Medical business within our Distribution Solutions segment for total proceeds of $134 million and recorded a pre-tax gain of $52 million ( $29 million after-tax) from this sale. During the first quarter of 2016, we sold our nurse triage business within our Technology Solutions segment for net sale proceeds of $84 million and recorded a pre-tax gain of $51 million ( $38 million after-tax) from the sale. These divestitures did not meet the criteria to be reported as discontinued operations since they did not constitute a significant strategic business shift. Accordingly, pre-tax gains from 2018 and 2016 divestitures were recorded within continuing operations of our consolidated statements of operations. Pre- and after-tax income of divested businesses were not material for 2018 and 2016. Discontinued Operations On May 31, 2016, we completed the sale of our Brazilian pharmaceutical distribution business and recognized an after-tax loss of $113 million within discontinued operations in the first quarter of 2017 primarily for the settlement of certain indemnification matters as well as the release of the cumulative translation losses. We made a payment of approximately $100 million related to the sale of this business. The results of discontinued operations for the years ended March 31, 2018, 2017 and 2016 were not material except for the loss recognized upon the disposition of our Brazilian business in 2017. As of March 31, 2018 and 2017, the carrying amounts of total assets and liabilities of discontinued operations were not material. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We provide share-based compensation to our employees, officers and non-employee directors, including stock options, an employee stock purchase plan (“ESPP”), restricted stock units (“RSUs”), performance-based restricted stock units (“PeRSUs”) and total shareholder return units (“TSRUs”) (collectively, “share-based awards”). Most of our share-based awards are granted in the first quarter of each fiscal year. Compensation expense for the share-based awards is recognized for the portion of awards ultimately expected to vest. We estimate the number of share-based awards that will ultimately vest primarily based on historical experience. The estimated forfeiture rate established upon grant is re-assessed throughout the requisite service period and is adjusted when actual forfeitures occur. The actual forfeitures in future reporting periods could be higher or lower than current estimates. The compensation expense recognized has been classified in the consolidated statements of operations or capitalized in the consolidated balance sheets in the same manner as cash compensation paid to our employees. There were no material share-based compensation expenses capitalized as part of the cost of an asset in 2018 , 2017 and 2016 . Impact on Net Income The components of share-based compensation expense and related tax benefits are as follows: Years Ended March 31, (In millions) 2018 2017 2016 Restricted stock unit awards (1) $ 46 $ 79 $ 88 Stock options 14 24 22 Employee stock purchase plan 9 12 13 Share-based compensation expense (2) 69 115 123 Tax benefit for share-based compensation expense (3) (28 ) (92 ) (41 ) Share-based compensation expense, net of tax $ 41 $ 23 $ 82 (1) Includes compensation expense recognized for RSUs, PeRSUs and TSRUs. Our TSRUs were awarded beginning in 2015. (2) 2016 includes non-cash credits of $14 million representing the reversal of previously recognized share-based compensation expense, which was recorded due to employee terminations associated with the March 2016 Cost Alignment Plan. (3) Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of pre-tax compensation expense is not tax-deductible. Income tax expense for 2018 and 2017 included discrete income tax benefits of $8 million and $54 million related to the adoption of the amended accounting guidance on share-based compensation. Stock Plans In July 2013, our stockholders approved the 2013 Stock Plan to replace the 2005 Stock Plan. These stock plans provide our employees, officers and non-employee directors the opportunity to receive equity-based, long-term incentives in the form of stock options, restricted stock, RSUs, PeRSUs, TSRUs and other share-based awards. The 2013 Stock Plan reserves 30 million shares plus the remaining number of shares reserved but unused under the 2005 Stock Plan. As of March 31, 2018 , 28 million shares remain available for future grant under the 2013 Stock Plan. Stock Options Stock options are granted with an exercise price at no less than the fair market value and those options granted under the stock plans generally have a contractual term of seven years and follow a four year vesting schedule. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period and is based on the grant-date fair value for the portion of the awards that is ultimately expected to vest. We use the Black-Scholes options-pricing model to estimate the fair value of our stock options. Once the fair value of an employee stock option is determined, current accounting practices do not permit it to be changed, even if the estimates used are different from actual. The options-pricing model requires the use of various estimates and assumptions as follows: • Expected stock price volatility is based on a combination of historical volatility of our common stock and implied market volatility. We believe that this market-based input provides a reasonable estimate of our future stock price movements and is consistent with employee stock option valuation considerations. • Expected dividend yield is based on historical experience and investors’ current expectations. • The risk-free interest rate for periods within the expected life of the option is based on the constant maturity U.S. Treasury rate in effect at the time of grant. • Expected life of the options is based primarily on historical employee stock option exercises and other behavior data and reflects the impact of changes in contractual life of current option grants compared to our historical grants. Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: Years Ended March 31, 2018 2017 2016 Expected stock price volatility 25% 21% 21% Expected dividend yield 0.8% 0.7% 0.4% Risk-free interest rate 1.7% 1.1% 1.4% Expected life (in years) 4.5 4 4 The following is a summary of stock options outstanding at March 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at Year End (In millions) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Exercisable at Year End (In millions) Weighted- Average Exercise Price $ 76.55 – $ 158.24 1 2 $ 108.17 1 $ 106.05 158.25 – 239.93 2 4 190.18 1 199.13 3 2 The following table summarizes stock option activity during 2018 : (In millions, except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) Outstanding, March 31, 2017 4 $ 145.76 4 $ 97 Granted 1 157.45 Cancelled (1) 180.79 Exercised (1) 86.95 Outstanding, March 31, 2018 3 $ 161.27 4 $ 36 Vested and expected to vest (1) 3 $ 160.28 4 $ 35 Vested and exercisable, March 31, 2018 2 147.76 2 35 (1) The number of options expected to vest takes into account an estimate of expected forfeitures. (2) The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options. The following table provides data related to stock option activity: Years Ended March 31, (In millions, except per share data) 2018 2017 2016 Weighted-average grant date fair value per stock option $ 34.24 $ 32.19 $ 44.04 Aggregate intrinsic value on exercise $ 60 $ 97 $ 107 Cash received upon exercise $ 77 $ 54 $ 47 Tax benefits realized related to exercise $ 22 $ 38 $ 42 Total fair value of stock options vested $ 20 $ 18 $ 18 Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax $ 15 $ 21 $ 20 Weighted-average period in years over which stock option compensation cost is expected to be recognized 2 2 2 Restricted Stock Unit Awards RSUs, which entitle the holder to receive at the end of a vesting term a specified number of shares of the Company’s common stock, are accounted for at fair value at the date of grant. Total compensation expense for RSUs under our stock plans is determined by the product of the number of shares that are expected to vest and the grant date market price of the Company’s common stock. The Compensation Committee determines the vesting terms at the time of grant. These awards generally vest in three to four years. We recognize compensation expense for RSUs on a straight-line basis over the requisite service period. Non-employee directors receive an annual grant of RSUs, which vest immediately and are expensed upon grant. The director may elect to receive the underlying shares immediately or defer receipt of the shares if they meet director stock ownership guidelines. The shares will be automatically deferred for those directors who do not meet the director stock ownership guidelines. At March 31, 2018 , approximately 117,000 RSUs for our directors are vested. PeRSUs are RSUs for which the number of RSUs awarded is conditional upon the attainment of one or more performance objectives over a specified period. Each year, the Compensation Committee approves the target number of PeRSUs representing the base number of awards that could be granted if performance goals are attained. PeRSUs are accounted for as variable awards until the performance goals are reached at which time the grant date is established. Total compensation expense for PeRSUs is determined by the product of the number of shares eligible to be awarded and expected to vest, and the market price of the Company’s common stock, commencing at the inception of the requisite service period. During the performance period, the compensation expense for PeRSUs is re-computed using the market price and the performance modifier at the end of a reporting period. At the end of the performance period, if the goals are attained, the awards are granted and classified as RSUs and accounted for on that basis. We recognize compensation expense for these awards on a straight-line basis over the requisite aggregate service period of generally four years. TSRUs replaced PeRSUs for our executive officers beginning in 2015. The number of vested TSRUs is assessed at the end of a three -year performance period and is conditioned upon attainment of a total shareholder return metric relative to a peer group of companies. We use the Monte Carlo simulation model to measure the fair value of TSRUs. TSRUs have a requisite service period of approximately three years. Expense is attributed to the requisite service period on a straight-line basis based on the fair value of the TSRUs. For TSRUs that are designated as equity awards, the fair value is measured at the grant date. For TSRUs that are eligible for cash settlement and designated as liability awards, we remeasure the fair value at the end of each reporting period and also adjust a corresponding liability on our balance sheet for changes in fair value. The weighted-average assumptions used to estimate the fair value of TSRUs are as follows: Years Ended March 31, 2018 2017 2016 Expected stock price volatility 29% 23% 18% Expected dividend yield 0.8% 0.7% 0.4% Risk-free interest rate 1.5% 1.1% 0.9% Expected life (in years) 3 3 3 The following table summarizes activity for restricted stock unit awards (RSUs, PeRSUs, and TSRUs) during 2018 : (In millions, except per share data) Shares Weighted- Average Grant Date Fair Value Per Share Nonvested, March 31, 2017 2 $ 188.54 Granted 1 159.49 Vested (1) 172.02 Nonvested, March 31, 2018 2 $ 176.74 The following table provides data related to restricted stock unit award activity: Years Ended March 31, (In millions) 2018 2017 2016 Total fair value of shares vested $ 156 $ 109 $ 104 Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax $ 97 $ 99 $ 144 Weighted-average period in years over which restricted stock unit award cost is expected to be recognized 2 2 2 ESPP The Company has an ESPP under which 21 million shares have been authorized for issuance. The ESPP allows eligible employees to purchase shares of our common stock through payroll deductions. The deductions occur over three -month purchase periods and the shares are then purchased at 85% of the market price at the end of each purchase period. Employees are allowed to terminate their participation in the ESPP at any time during the purchase period prior to the purchase of the shares. The 15% discount provided to employees on these shares is included in compensation expense. The shares related to funds outstanding at the end of a quarter are included in the calculation of diluted weighted average shares outstanding. These amounts have not been significant for all the years presented. We recognize costs for employer matching contributions as ESPP expense over the relevant purchase period. Shares issued under the ESPP were not material in 2018 , 2017 , and 2016. At March 31, 2018 , 3 million shares remain available for issuance. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, Net | Other Income, Net Years Ended March 31, (In millions) 2018 2017 2016 Interest income $ 48 $ 29 $ 18 Equity in earnings, net (1) 32 30 15 Gain from sale of equity method investment (2) 43 — — Other, net (1) 7 31 25 Total $ 130 $ 90 $ 58 (1) Primarily recorded within our Distribution Solutions segment. (2) Amount represented a pre-tax gain from the sale of an equity method investment from our Distribution Solutions segment to a third party during the second quarter of 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Years Ended March 31, (In millions) 2018 2017 2016 Income from continuing operations before income taxes U.S. $ 1,175 $ 5,772 $ 2,319 Foreign (936 ) 1,119 931 Total income from continuing operations before income taxes $ 239 $ 6,891 $ 3,250 Income tax expense related to continuing operations consists of the following: Years Ended March 31, (In millions) 2018 2017 2016 Current Federal $ 577 $ 524 $ 658 State 33 86 96 Foreign 205 122 90 Total current 815 732 844 Deferred Federal (767 ) 767 95 State 17 164 42 Foreign (118 ) (49 ) (73 ) Total deferred (868 ) 882 64 Income tax (benefit) expense $ (53 ) $ 1,614 $ 908 During 2018, income tax benefit was $53 million and during 2017 and 2016 income tax expenses were $1,614 million and $908 million related to continuing operations. Our reported income tax benefit rate was 22.2% in 2018 and income tax expense rates were 23.4% , and 27.9% in 2017 and 2016. Fluctuations in our reported income tax rates are primarily due to change in tax laws, including the recently enacted 2017 Tax Act, the impact of nondeductible impairment charges, and varying proportions of income attributable to foreign countries that have income tax rates different from the U.S. rate. The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 31.6% for 2018 and 35% for 2017 and 2016 to the income before income taxes is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Income tax expense at federal statutory rate $ 75 $ 2,411 $ 1,137 State income taxes net of federal tax benefit 50 153 92 Tax effect of foreign operations (146 ) (326 ) (295 ) Unrecognized tax benefits and settlements 454 57 (14 ) Non-deductible goodwill 585 106 — Share-based compensation (8 ) (54 ) — Net tax benefit on intellectual property transfer (178 ) (137 ) — Rate differential on gain from Change Healthcare Net Asset Exchange — (587 ) — Remeasurement of U.S. deferred taxes (1,324 ) — — Transition tax on foreign earnings 457 — — Other, net (1) (18 ) (9 ) (12 ) Income tax (benefit) expense $ (53 ) $ 1,614 $ 908 (1) Our 2018 effective tax rate was impacted by other favorable U.S. federal permanent differences including research and development credits of $11 million . In 2018, as a result of the 2017 Tax Act, we recognized a provisional tax benefit of $1,324 million due to the re-measurement of certain deferred taxes to the lower U.S. federal tax rate and a provisional tax expense of $457 million for the one-time tax imposed on certain accumulated earnings and profits (“E&P”) of our foreign subsidiaries. Our reported income tax benefit rate for 2018 was unfavorably impacted by non-cash pre-tax charges of $1,738 million to impair the carrying value of goodwill related to our McKesson Europe and Rexall Health reporting units within our Distribution Solutions segment, given that no tax benefit was recognized for these charges. Our reported income tax expense rate for 2017 was unfavorably impacted by the non-cash pre-tax charge of $290 million to impair the carrying value of goodwill related to our EIS business within our Technology Solutions segment, given that the majority of this charge was not deductible for income tax purposes. Refer to Financial Note 3, “Goodwill Impairment Charges,” for more information. On December 19, 2016, we sold various software relating to our Technology Solutions business between wholly owned legal entities within the McKesson group that are based in different tax jurisdictions. The transferor entity recognized a gain on the sale of assets that was not subject to income tax in its local jurisdiction; such gain was eliminated upon consolidation. A McKesson entity based in the U.S. was the recipient of the software and is entitled to amortize the fair value of the assets for book and tax purposes. The tax benefit associated with the amortization of these assets is being recognized over the tax lives of the assets. As a result, we recognized a net tax benefit of $178 million and $137 million in 2018 and 2017. On March 1, 2017, we contributed assets to Change Healthcare as described in Financial Note 2, “Healthcare Technology Net Asset Exchange”. While this transaction was predominantly structured as a tax free asset contribution for U.S. federal income tax purposes under Section 721(a) of the Internal Revenue Code, we recorded tax expense of $929 million on the gain. The tax expense was primarily driven by the recognition of a deferred tax liability on the excess book over tax basis in our equity investment in Change Healthcare. In March 2016, amended guidance was issued for employee share-based payment awards. Under the amended guidance, all windfalls and shortfalls related to employee share-based compensation arrangements are recognized within income tax expense. We elected to early adopt this amended guidance in the first quarter of 2017. The primary impact of the adoption was the recognition of excess tax benefits in the income statement on a prospective basis, rather than APIC. As a result, we recognized a net tax benefit of $8 million and $54 million in 2018 and 2017. In 2016, we recognized a $19 million tax benefit due to a reduction in our deferred tax liabilities as a result of enacted tax law changes in certain foreign jurisdictions and a $25 million tax benefit associated with the U.S. Tax Court’s decision in Altera Corp. v. Commissioner related to the treatment of share-based compensation expense in an intercompany cost-sharing agreement. Deferred tax balances consisted of the following: March 31, (In millions) 2018 2017 Assets Receivable allowances $ 58 $ 124 Compensation and benefit related accruals 345 593 Net operating loss and credit carryforwards 811 594 Long-term contractual obligations 59 107 Other 279 241 Subtotal 1,552 1,659 Less: valuation allowance (751 ) (503 ) Total assets 801 1,156 Liabilities Inventory valuation and other assets (1,869 ) (2,818 ) Fixed assets and systems development costs (158 ) (224 ) Intangibles (644 ) (921 ) Change Healthcare Equity Investment (814 ) (773 ) Other (71 ) (70 ) Total liabilities (3,556 ) (4,806 ) Net deferred tax liability $ (2,755 ) $ (3,650 ) Long-term deferred tax asset 49 28 Long-term deferred tax liability (2,804 ) (3,678 ) Net deferred tax liability $ (2,755 ) $ (3,650 ) We assess the available positive and negative evidence to determine whether deferred tax assets are more likely than not to be realized. As a result of this assessment, valuation allowances have been recorded on certain deferred tax assets in various tax jurisdictions. The valuation allowance was approximately $751 million and $503 million in 2018 and 2017. The increase of $248 million in valuation allowances in the current year relate primarily to net operating and capital losses incurred in certain tax jurisdictions for which no tax benefit was recognized. We have federal, state and foreign net operating loss carryforwards of $111 million , $2,787 million and $1,806 million . Federal and state net operating losses will expire at various dates from 2019 through 2039. Substantially all our foreign net operating losses have indefinite lives. In addition, we have foreign capital loss carryforwards of $756 million with indefinite lives. The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years: Years Ended March 31, (In millions) 2018 2017 2016 Unrecognized tax benefits at beginning of period $ 486 $ 555 $ 616 Additions based on tax positions related to prior years 47 7 116 Reductions based on tax positions related to prior years (124 ) (67 ) (62 ) Additions based on tax positions related to current year 778 105 28 Reductions based on settlements (7 ) (113 ) (141 ) Reductions based on the lapse of the applicable statutes of limitations — — (6 ) Exchange rate fluctuations 3 (1 ) 4 Unrecognized tax benefits at end of period $ 1,183 $ 486 $ 555 As of March 31, 2018 , we had $1,183 million of unrecognized tax benefits, of which $1,042 million would reduce income tax expense and the effective tax rate, if recognized. The increase in unrecognized tax benefits in 2018 compared to 2017 is primarily attributable to provisional amounts relating to the application of certain provisions of the 2017 Tax Act, partially offset by a decrease in unrecognized tax benefit due to the resolution of the Internal Revenue Services (“IRS”) relating to the fiscal years 2010 through 2012. During the next twelve months, we do not expect any material reduction in our unrecognized tax benefits. However, this may change as we continue to have ongoing negotiations with various taxing authorities throughout the year. We report interest and penalties on income taxes as income tax expense. We recognized income tax benefits of $1 million and $6 million in 2018 and 2017 and income tax expense of $12 million in 2016, related to interest and penalties in our consolidated statements of operations. The income tax benefit for interest and penalties recognized in 2018 and 2017 was primarily due to concluding certain tax authority examinations and lapses of statutes of limitations. As of March 31, 2018 and 2017, we had accrued $37 million and $45 million cumulatively in interest and penalties on unrecognized tax benefits. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. During the third quarter of 2018, we signed the Revenue Agent’s Report from the U.S. IRS relating to their audit of the fiscal years 2010 through 2012 and recorded a $39 million tax benefit due to the favorable resolution of various uncertain tax positions for those years. During the first quarter of 2017, we reached an agreement with the IRS to settle all outstanding issues relating to the fiscal years 2007 through 2009 without a material impact to our provision for income taxes. We are subject to audit by the IRS for fiscal years 2013 through the current fiscal year. We are generally subject to audit by taxing authorities in various U.S. states and in foreign jurisdictions for fiscal years 2010 through the current fiscal year. On December 22, 2017, the U.S. government enacted comprehensive new tax legislation under the Tax Cuts and Jobs Act. The 2017 Tax Act makes broad and complex changes to the U.S. tax code that affect our fiscal year 2018 in multiple ways, including but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; and (2) requiring companies to pay a one-time tax on certain unrepatriated earnings of foreign subsidiaries. The 2017 Tax Act also establishes new tax provisions that will affect our fiscal year 2019, including, but not limited to, (1) eliminating the corporate alternative minimum tax; (2) creating the base erosion anti-abuse tax (“BEAT”); (3) establishing new limitations on deductible interest expense and certain executive compensation; (4) creating a new provision designed to tax global intangible low-tax income (“GILTI”); (5) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; and (6) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. On December 22, 2017, the SEC staff issued guidance on income tax accounting for the 2017 Tax Act, which was further incorporated into the U.S. GAAP guidance on income taxes in the fourth quarter of 2018. Refer to Financial Note 1, “Significant Accounting Policies - Recently Adopted Accounting Pronouncements.” Regarding the new GILTI tax rules, which apply to fiscal years beginning after December 31, 2017, we are allowed to make an accounting policy election to either (1) treat taxes due on future GILTI inclusions in U.S. taxable income as a current-period expense when incurred or (2) reflect such portion of the future GILTI inclusions in U.S. taxable income that relate to existing basis differences in the company’s current measurement of deferred taxes. Our analysis of the new GILTI rules and how they may impact us is incomplete. Accordingly, we have not made a policy election regarding the treatment of the GILTI tax. We will finalize our evaluation of the GILTI tax rules during the measurement period. Although our accounting for the impact of the 2017 Tax Act is incomplete, we have made reasonable estimates and recorded provisional amounts as follows: Reduction of U.S. federal corporate tax rate: The 2017 Tax Act reduces the corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. U.S. tax law stipulates that our fiscal year 2018 is subject to a blended tax rate of 31.6 percent , which is based on the pro rata number of days in the fiscal year before and after the effective date. For the fiscal year 2019, the tax rate will be 21 percent. As a result, we have remeasured certain deferred tax assets and deferred tax liabilities and recorded a provisional net tax benefit of $1,324 million , mainly driven by a decrease in our deferred tax liabilities for inventories and investments. During the fourth quarter of 2018, this provisional tax benefit increased by $68 million mainly due to changes to the state effect of adjustments made to federal temporary differences. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, it may be affected by, among other items, changes to estimates the Company has made to calculate our existing temporary differences. Deemed Repatriation Transition Tax (“Transition Tax”): The 2017 Tax Act imposes a tax on certain accumulated E&P of our foreign subsidiaries. We were able to make a reasonable estimate of the impact of the new tax and recorded a provisional tax expense of $457 million . During the fourth quarter of 2018, this provisional tax expense increased by $23 million mainly due to changes in estimated amounts of post-1986 E&P of the relevant subsidiaries as well as the amount of non-U.S. income taxes paid on such earnings. This estimate may change as we gather additional information to more precisely compute the amount of tax. Prior to the 2017 Tax Act, undistributed earnings of our foreign operations totaling $5,854 million were considered indefinitely reinvested. While the Company has accrued the 2017 Tax Act’s new tax on these earnings, we were unable to determine a reasonable estimate of the remaining tax liability, if any, for its remaining outside basis differences or assess how the 2017 Tax Act will impact the Company's existing assertion of indefinite reinvestment. As such, no change has been made with respect to this assertion for the year ended March 31, 2018. The Company will complete its analysis of the impact of the 2017 Tax Act on our indefinite reinvestment assertion and record amounts, such as foreign withholding taxes and state income taxes, if necessary, during the measurement period. Our accounting for the income tax effects of the 2017 Tax Act will be completed during the measurement period and we will record any necessary adjustments in the period such adjustments are identified. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Noncontrolling Interests | 12 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests Our redeemable noncontrolling interests relate to our consolidated subsidiary, 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 and a one-time guaranteed dividend for calendar year 2014 of €0.83 per share reduced accordingly for any dividend paid by McKesson Europe in relation to that year. As a result, during 2018, 2017 and 2016, we recorded a total attribution of net income to the noncontrolling shareholders of McKesson Europe of $43 million , $44 million and $44 million . All amounts were recorded in our consolidated statements of operations within the caption, “Net Income Attributable to Noncontrolling Interests,” and the corresponding liability balance was recorded within other accrued liabilities on our 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 5 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 2018, we paid $50 million to purchase 1.9 million shares of McKesson Europe through the exercises of the Put Right by the noncontrolling shareholders, which decreased the carrying value of redeemable noncontrolling interests by $53 million . The balance of 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. At March 31, 2018 and 2017, the carrying value of redeemable noncontrolling interests of $1.46 billion and $1.33 billion exceeded the maximum redemption value of $1.35 billion and $1.21 billion . At March 31, 2018 and 2017, we owned approximately 77% and 76% of McKesson Europe’s outstanding common shares. Appraisal Proceedings Subsequent to the Domination Agreement’s registration, certain noncontrolling shareholders of McKesson Europe initiated appraisal proceedings (“Appraisal Proceedings”) with the Stuttgart Regional Court to challenge the adequacy of the Put Amount, annual recurring compensation amount, and/or the guaranteed dividend. During the pendency of the Appraisal proceedings, such amount will be paid as specified currently in the Domination Agreement. If any such Appraisal Proceedings result in an adjustment, we would be required to make certain additional payments for any shortfall to all McKesson Europe noncontrolling shareholders who previously received the Put Amount, compensation amount or guaranteed dividend. Noncontrolling Interests Noncontrolling interests represent third-party equity interests in our consolidated entities primarily related to ClarusONE and Vantage, which were $253 million and $178 million at March 31, 2018 and 2017 on our consolidated balance sheets. During 2018, 2017 and 2016, we allocated a total of $187 million , $39 million and $8 million of net income to noncontrolling interests. Changes in redeemable noncontrolling interests and noncontrolling interests for the years ended March 31, 2018 and 2017 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2016 $ 84 $ 1,406 Net income attributable to noncontrolling interests 39 44 Other comprehensive loss — (78 ) Reclassification of recurring compensation to other accrued liabilities — (44 ) Purchases of noncontrolling interests (1) 89 — Other (34 ) (1 ) Balance, March 31, 2017 $ 178 $ 1,327 Net income attributable to noncontrolling interests 187 43 Other comprehensive income — 185 Reclassification of recurring compensation to other accrued liabilities — (43 ) Payments to noncontrolling interests (98 ) — Exercises of Put Right — (53 ) Other (14 ) — Balance, March 31, 2018 $ 253 $ 1,459 (1) Represents the fair value of noncontrolling interests we purchased related to our 2016 acquisition of Vantage. Refer to Financial Note 6, “Business Combinations,” for more information. The effect of changes in our ownership interests related to redeemable noncontrolling interests on our equity of $3 million resulting from exercises of Put Right was recorded as a net increase to McKesson’s stockholders’ paid-in capital during 2018. Changes from net income attributable to McKesson and transfers from redeemable noncontrolling interests were $70 million during 2018. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed similar to basic earnings per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. The computations for basic and diluted earnings per common share are as follows: Years Ended March 31, (In millions, except per share amounts) 2018 2017 2016 Income from continuing operations $ 292 $ 5,277 $ 2,342 Net income attributable to noncontrolling interests (230 ) (83 ) (52 ) Income from continuing operations attributable to McKesson 62 5,194 2,290 Income (Loss) from discontinued operations, net of tax 5 (124 ) (32 ) Net income attributable to McKesson $ 67 $ 5,070 $ 2,258 Weighted average common shares outstanding: Basic 208 221 230 Effect of dilutive securities: Options to purchase common stock — 1 1 Restricted stock units 1 1 2 Diluted 209 223 233 Earnings (loss) per common share attributable to McKesson: (1) Diluted Continuing operations $ 0.30 $ 23.28 $ 9.84 Discontinued operations 0.02 (0.55 ) (0.14 ) Total $ 0.32 $ 22.73 $ 9.70 Basic Continuing operations $ 0.30 $ 23.50 $ 9.96 Discontinued operations 0.02 (0.55 ) (0.14 ) Total $ 0.32 $ 22.95 $ 9.82 (1) Certain computations may reflect rounding adjustments. Potentially dilutive securities include outstanding stock options, restricted stock units and performance-based and other restricted stock units. Approximately 2 million of potentially dilutive securities were excluded from the computations of diluted net earnings per common share in 2018 , 2017 and 2016 , as they were anti-dilutive. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Mar. 31, 2018 | |
Receivables, Net, Current [Abstract] | |
Receivables, Net | Receivables, Net March 31, (In millions) 2018 2017 Customer accounts $ 14,349 $ 14,602 Other 3,578 3,893 Total 17,927 18,495 Allowances (216 ) (280 ) Net $ 17,711 $ 18,215 Other receivables primarily include amounts due from suppliers. The allowances are primarily for estimated uncollectible accounts. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net March 31, (In millions) 2018 2017 Land $ 187 $ 166 Building, machinery, equipment and other 3,746 3,637 Total property, plant and equipment 3,933 3,803 Accumulated depreciation (1,469 ) (1,511 ) Property, plant and equipment, net $ 2,464 $ 2,292 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows: (In millions) Distribution Solutions Technology Solutions Total Balance, March 31, 2016 $ 7,987 $ 1,799 $ 9,786 Goodwill acquired 2,836 22 2,858 Acquisition accounting, transfers and other adjustments (146 ) 1 (145 ) Goodwill impairment — (290 ) (290 ) Amount reclassified to assets held for sale (165 ) — (165 ) Goodwill disposed (1) (30 ) (1,078 ) (1,108 ) Foreign currency translation adjustments, net (350 ) — (350 ) Balance, March 31, 2017 $ 10,132 $ 454 $ 10,586 Goodwill acquired 1,707 — 1,707 Acquisition accounting, transfers and other adjustments (2) 369 (330 ) 39 Goodwill impairment (3) (1,738 ) — (1,738 ) Goodwill disposed (1) (48 ) (124 ) (172 ) Amount reclassified to assets held for sale (2 ) — (2 ) Foreign currency translation adjustments, net 504 — 504 Balance, March 31, 2018 $ 10,924 $ — $ 10,924 (1) 2017 Technology Solutions segment amount represents goodwill disposal associated with Healthcare Technology Net Asset Exchange transaction. Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” for more information. 2018 Technology Solutions segment amount represents goodwill disposal associated with the sale of our EIS business. Refer to Financial Note 5, “Divestitures” for more information. (2) Effective April 1, 2017, our RHP business was transferred from the Technology Solutions segment to the Distribution Solutions segment. (3) In 2018, goodwill impairment charges from our international businesses were translated at average exchange rates during the corresponding period and accumulated goodwill impairment losses described below were translated at year-end exchange rates. As of March 31, 2018 , accumulated goodwill impairment loss was $1,755 million primarily in our Distribution Solutions segment. As of March 31, 2017, the accumulated goodwill impairment loss was $290 million primarily in our Technology Solutions segment. Refer to Financial Note 3, “Goodwill Impairment Charges,” for more information on the impairment charges recorded in 2018 and 2017. Information regarding intangible assets is as follows: March 31, 2018 March 31, 2017 (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 12 $ 3,619 $ (1,550 ) $ 2,069 $ 2,893 $ (1,295 ) $ 1,598 Service agreements 12 1,037 (386 ) 651 1,009 (316 ) 693 Pharmacy licenses 26 684 (196 ) 488 741 (150 ) 591 Trademarks and trade names 14 932 (187 ) 745 845 (124 ) 721 Technology 4 147 (84 ) 63 69 (64 ) 5 Other 4 262 (176 ) 86 201 (144 ) 57 Total $ 6,681 $ (2,579 ) $ 4,102 $ 5,758 $ (2,093 ) $ 3,665 Amortization expense of intangible assets was $503 million , $444 million and $431 million for 2018 , 2017 and 2016 . Estimated annual amortization expense of intangible assets is as follows: $440 million , $422 million , $405 million , $373 million and $262 million for 2019 through 2023 , and $2,200 million thereafter. All intangible assets were subject to amortization as of March 31, 2018 and 2017 . Refer to Financial Note 4, “Restructuring and Asset Impairment Charges,” for more information on intangible asset impairment charges recorded in 2018. |
Debt and Financing Activities
Debt and Financing Activities | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Activities | Debt and Financing Activities Long-term debt consisted of the following: March 31, (In millions) 2018 2017 U.S. Dollar notes (1) (2) 1.40% Notes due March 15, 2018 $ — $ 500 7.50% Notes due February 15, 2019 — 350 2.28% Notes due March 15, 2019 1,100 1,100 4.75% Notes due March 1, 2021 323 599 2.70% Notes due December 15, 2022 400 400 2.85% Notes due March 15, 2023 400 400 3.80% Notes due March 15, 2024 1,100 1,100 7.65% Debentures due March 1, 2027 167 175 3.95% Notes due February 16, 2028 600 — 6.00% Notes due March 1, 2041 282 493 4.88% Notes due March 15, 2044 411 800 Foreign currency notes (1) (3) 4.50% Euro Bonds due April 26, 2017 — 533 Floating Rate Euro Notes due February 12, 2020 (4) 337 — 0.63% Euro Notes due August 17, 2021 695 638 1.50% Euro Notes due November 17, 2025 691 635 1.63% Euro Notes due October 30, 2026 669 — 3.13% Sterling Notes due February 17, 2029 630 564 Lease and other obligations 75 75 Total debt 7,880 8,362 Less: Current portion 1,129 1,057 Total long-term debt $ 6,751 $ 7,305 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semiannually. (3) Interest on these foreign bonds and notes is payable annually, except the 2020 Floating Rate Euro Notes. (4) Interest on these notes is payable quarterly. Long-Term Debt Our long-term debt includes both U.S. dollar and foreign currency-denominated borrowings. At March 31, 2018 and March 31, 2017, $7,880 million and $8,362 million of total debt were outstanding, of which $1,129 million and $1,057 million were included under the caption “Current portion of long-term debt” within our consolidated balance sheets. Fiscal 2018 On February 12, 2018, we completed a public offering of Euro-denominated floating rate notes due February 12, 2020 (the “2020 Floating Rate Euro Notes”) in an aggregate principal amount of €250 million and 1.63% Euro-denominated notes due October 30, 2026 (the “2026 Euro Notes”) in an aggregate principal amount of €500 million . On February 16, 2018, we completed a public offering of 3.95% notes due February 16, 2028 (the “2028 USD Notes”) in an aggregate principal amount of $600 million . The 2020 Floating Rate Euro Notes bear an interest at a rate equal to the three-month Euro Interbank Offered Rate plus 0.15% . Interest on the 2020 Floating Rate Euro Notes is payable on February 12, May 12, August 12 and November 12 of each year, commencing on May 12, 2018. Interest on the 2026 Euro Notes is payable on October 30 of each year, commencing on October 30, 2018. Interest on the 2028 USD Notes is payable on February 16 and August 16 of each year, commencing on August 16, 2018. We utilized the net proceeds from these notes of $1.5 billion , net of discounts and offering expenses, to finance the purchase of certain outstanding notes and for working capital and general corporate purposes. Fiscal 2017 On February 17, 2017, we completed a public offering of 0.63% Euro-denominated notes due August 17, 2021 (the “2021 Euro Notes”) in an aggregate principal amount of €600 million , 1.50% Euro-denominated notes due November 17, 2025 (the “2025 Euro Notes”) in an aggregate principal amount of €600 million and 3.13% British pound sterling-denominated notes due February 17, 2029 (the “2029 Sterling Notes”) in an aggregate principal amount of £450 million . Interest on the 2021 Euro Notes is payable on August 17 th of each year. Interest on the 2025 Euro Notes is payable on November 17 th of each year. Interest on the 2029 Sterling Notes is payable on February 17 th of each year. We utilized the net proceeds from these notes of $1.8 billion , net of discounts and offering expenses for general corporate purposes including the repayments of long-term debt. Each note, which constitutes a “Series”, is an unsecured and unsubordinated obligation of the Company and ranks equally with all of the Company’s existing and, from time-to-time, future unsecured and unsubordinated indebtedness outstanding. Each Series is governed by materially similar indentures and officers’ certificates. Upon required notice to holders of notes with fixed interest rates, we may redeem those notes at any time prior to maturity, in whole or in part, for cash at redemption prices that may include a make-whole premium plus accrued and unpaid interest, as specified in the indenture and officers’ certificate relating to that Series. The 2020 Floating Rate Euro Notes are not redeemable at our option. In the event of the occurrence of both (1) a change of control of the Company and (2) a downgrade of a Series below an investment grade rating by each of Fitch Ratings, Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services within a specified period, an offer must be made to purchase that Series from the holders at a price equal to 101% of the then outstanding principal amount of that Series, plus accrued and unpaid interest to, but not including, the date of repurchase. The indenture and the related officers’ certificate for each Series, subject to the exceptions and in compliance with the conditions as applicable, specify that we may not consolidate, merge or sell all or substantially all of our assets, incur liens, or enter into sale-leaseback transactions exceeding specific terms, without lenders’ consent. The indentures also contain customary events of default provisions. Tender Offers and Early Repayments On February 7, 2018, we commenced cash tender offers for a portion of our existing outstanding (i) 7.50% Notes due 2019, (ii) 4.75% Notes due 2021, (iii) 7.65% Debentures due 2027, (iv) 6.00% Notes due 2041 and (v) 4.88% Notes due 2044 (collectively referred to herein as the “Tender Offer Notes”). In connection with the tender offers and an additional repurchase, we paid an aggregate consideration of $1.05 billion to redeem $936 million principal amount of the notes at a redemption price equal to 100% of the principal amount and premiums of $99 million , plus accrued and unpaid interest of $20 million . The redemption of the Tender Offer Notes was accounted for as a debt extinguishment. As a result of the redemption, we incurred a pre-tax loss on debt extinguishment of $109 million ( $70 million after-tax), which included premiums of $99 million and the write-off of unamortized debt issuance costs of $10 million . On March 26, 2018, we paid an aggregate consideration of $317 million to redeem $302 million principal amount of the 7.500% Notes due 2019 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest of $2 million , and the applicable redemption premium of $13 million pursuant to the terms of the indentures. As a result of the redemption, we incurred a pre-tax loss on debt extinguishment of $13 million ( $8 million after-tax), which primarily represented the premiums. Repayments at maturity In 2018, we repaid at maturity our €500 million Euro-denominated bond due April 26, 2017 and our $500 million 1.40% notes due March 15, 2018. In 2017, we repaid at maturity our €350 million Euro-denominated bond (or, approximately $385 million ) due October 18, 2016, our $500 million 5.70% notes due March 1, 2017 and our $700 million 1.29% notes due March 10, 2017. In 2016, we repaid at maturity our $400 million floating rate notes due September 10, 2015, our $500 million 0.95% notes due December 4, 2015, our $600 million 3.25% notes due March 1, 2016 and a term loan balance of $93 million . Other Information Scheduled principal payments of long-term debt are $1,129 million in 2019 , $353 million in 2020 , $337 million in 2021 , $634 million in 2022 , $403 million in 2023 and $5,024 million thereafter. Revolving Credit Facilities We have a syndicated $3.5 billion five-year senior unsecured revolving credit facility (the “Global Facility”), which has a $3.15 billion aggregate sublimit of availability in Canadian dollars, British pound sterling and Euros. The Global Facility matures on October 22, 2020. Borrowings under the Global Facility bear interest based upon the London Interbank Offered Rate, Canadian Dealer Offered Rate for credit extensions denominated in Canadian Dollars, a prime rate, or alternative overnight rates as applicable, plus agreed margins. The Global Facility contains a financial covenant which obligates the Company to maintain a debt to capital ratio of no greater than 65% and other customary investment grade covenants. If we do not comply with these covenants, our ability to use the Global Facility may be suspended and repayment of any outstanding balances under the Global Facility may be required. At March 31, 2018, we were in compliance with all covenants. There were no borrowings under this facility during 2018, 2017 and 2016, and no borrowings outstanding as of March 31, 2018 and 2017. We also maintain bilateral credit lines primarily denominated in Euros with a total committed and uncommitted balance of $242 million as of March 31, 2018. Borrowings and repayments were not material in 2018 and 2017. During 2016, we borrowed $641 million and repaid $635 million under these credit lines primarily related to short‑term borrowings. These credit lines have interest rates ranging from 0.2% to 6% . As of March 31, 2018, borrowings outstanding under these credit lines were not material. Commercial Paper We maintain a commercial paper program to support our working capital requirements and for other general corporate purposes. Under the program, the Company can issue up to $3.5 billion in outstanding commercial paper notes. During 2018 and 2017, we borrowed $20,542 million and $8,283 million and repaid $20,725 million and $8,100 million under the program. During 2016, there were no material commercial paper issuances. At March 31, 2018, there were no commercial paper notes outstanding. At March 31, 2017, we had $183 million commercial paper notes outstanding with a weighted average interest rate of 1.20% . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities We evaluate our ownership, contractual and other interests in entities to determine if they are VIEs, if we have a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve management judgment and the use of estimates and assumptions based on available historical information, among other factors. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. Consolidated Variable Interest Entities We consolidate VIEs when we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE and, as a result, are considered the primary beneficiary of the VIE. We consolidate certain single-lessee leasing entities where we, as the lessee, have the majority risk of the leased assets due to our minimum lease payment obligations to these leasing entities. As a result of absorbing this risk, the leases provide us with the power to direct the operations of the leased properties and the obligation to absorb losses or the right to receive benefits of the entity. Consolidated VIEs do not have a material impact on our consolidated statements of operations and cash flows. Total assets and liabilities included in our consolidated balance sheets for these VIEs were $819 million and $92 million at March 31, 2018 and $821 million and $149 million at March 31, 2017. Investments in Unconsolidated Variable Interest Entities We are involved with VIEs which we do not consolidate because we do not have the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiary of the entities. Our relationships include equity method investments and lending, leasing, contractual or other relationships with the VIEs. Our most significant relationships are with oncology and other specialty practices. Under these practice arrangements, we generally own or lease all of the real estate and equipment used by the affiliated practices and manage the practices’ administrative functions. We also have relationships with certain pharmacies in Europe with whom we may provide financing, have equity ownership and/or a supply agreement whereby we supply the vast majority of the pharmacies’ purchases. Our maximum exposure to loss (regardless of probability) as a result of all unconsolidated VIEs was $1.1 billion at March 31, 2018 and 2017 , which primarily represents the value of intangible assets related to service agreements, equity investments and lease and loan receivables. This amount excludes the customer loan guarantees discussed in Financial Note 23, “Financial Guarantees and Warranties.” We believe there is no material loss exposure on these assets or from these relationships. |
Pension Benefits
Pension Benefits | 12 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension Benefits | Pension Benefits We maintain a number of qualified and nonqualified defined benefit pension plans and defined contribution plans for eligible employees. Defined Benefit Pension Plans Eligible U.S. employees who were employed by the Company as of December 31, 1995 are covered under the Company-sponsored defined benefit retirement plan. In 1997, the plan was amended to freeze all plan benefits as of December 31, 1996. Benefits for the defined benefit retirement plan are based primarily on age of employees at date of retirement, years of creditable service and the average of the highest 60 months of pay during the 15 years prior to the plan freeze date. We also have defined benefit pension plans for eligible employees outside of the U.S., as well as an unfunded nonqualified supplemental defined benefit plan for certain U.S. executives. Our non-U.S. defined benefit pension plans cover eligible employees located predominantly in Norway, United Kingdom, Germany, and Canada. Benefits for these plans are based primarily on each employee’s final salary, with annual adjustments for inflation. The obligations in Norway are largely related to the state-regulated pension plan which is managed by the Norwegian Public Service Pension Fund (“SPK”). According to the terms of the SPK, the plan assets of state regulated plans in Norway must correspond very closely to the pension obligation calculated using the principles codified in Norwegian law. The shortfall may not exceed 1% of the obligation. If the shortfall exceeds this threshold, it must be remedied within two years. In the United Kingdom, we have subsidiaries that participate in a joint pension plan. This plan is largely funded by contractual trust arrangements that hold Company assets that may only be used to pay pension obligations. The Trustee Board decides on the minimum contribution to the plan in association with selected employees of the entity. A valuation is performed at regular intervals in order to determine the amount of the contribution and to ensure that the minimum contribution is made. The pension obligation in Germany is unfunded with the exception of the contractual trust arrangement used to fund pensions of McKesson Europe’s Management Board. Defined benefit plan assets and obligations are measured as of the Company’s fiscal year-end. The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 3 $ 5 $ 4 $ 15 $ 15 $ 20 Interest cost on projected benefit obligation 14 13 18 22 23 24 Expected return on assets (19 ) (15 ) (19 ) (26 ) (26 ) (30 ) Amortization of unrecognized actuarial loss and prior service costs 6 11 42 5 4 3 Curtailment/settlement loss (gain) 2 — 2 1 (2 ) — Net periodic pension expense $ 6 $ 14 $ 47 $ 17 $ 14 $ 17 The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service period of active employees. Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2018 2017 Change in benefit obligations Benefit obligation at beginning of period (1) $ 513 $ 535 $ 943 $ 899 Service cost 3 5 15 15 Interest cost 14 13 22 23 Actuarial loss (gain) 1 (11 ) (15 ) 98 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Amendments — — (2 ) — Acquisitions — — — 37 Foreign exchange impact and other — — 115 (94 ) Benefit obligation at end of period (1) $ 485 $ 513 $ 1,035 $ 943 Change in plan assets Fair value of plan assets at beginning of period $ 293 $ 262 $ 623 $ 607 Actual return on plan assets 35 22 21 76 Employer and participant contributions 53 38 17 16 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Acquisitions — — — 35 Foreign exchange impact and other — — 69 (76 ) Fair value of plan assets at end of period $ 335 $ 293 $ 687 $ 623 Funded status at end of period $ (150 ) $ (220 ) $ (348 ) $ (320 ) Amounts recognized on the balance sheet Assets $ 10 $ — $ 19 $ 4 Current liabilities (39 ) (17 ) (7 ) (7 ) Long-term liabilities (121 ) (203 ) (360 ) (317 ) Total $ (150 ) $ (220 ) $ (348 ) $ (320 ) (1) The benefit obligation is the projected benefit obligation. The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans with an accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Projected benefit obligation $ 485 $ 513 $ 1,035 $ 943 Accumulated benefit obligation 485 513 990 902 Fair value of plan assets 335 293 687 623 Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Net actuarial loss $ 134 $ 157 $ 162 $ 160 Prior service credit — — (5 ) (3 ) Total $ 134 $ 157 $ 157 $ 157 Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Net actuarial loss (gain) $ (15 ) $ (17 ) $ 9 $ (11 ) $ 47 $ (38 ) Prior service credit — — — (2 ) — (5 ) Amortization of: Net actuarial loss (8 ) (11 ) (44 ) (6 ) (4 ) (5 ) Prior service credit (cost) — — — — 2 2 Foreign exchange impact and other — — — 19 (10 ) (1 ) Total recognized in other comprehensive loss (income) $ (23 ) $ (28 ) $ (35 ) $ — $ 35 $ (47 ) We expect to amortize $9 million of actuarial loss for the pension plans from stockholders’ equity to pension expense in 2019 . The comparable 2018 amount was $14 million of actuarial loss. Projected benefit obligations related to our unfunded U.S. plans were $160 million and $176 million at March 31, 2018 and 2017 . Pension obligations for our unfunded plans are based on the recommendations of independent actuaries. Projected benefit obligations relating to our unfunded non-U.S. plans were $297 million and $276 million at March 31, 2018 and 2017. Funding obligations for our non-U.S. plans vary based on the laws of each non-U.S. jurisdiction. Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows: $97 million , $184 million , $65 million , $70 million and $67 million for 2019 to 2023 and $339 million for 2024 through 2028 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our pension plans are $55 million for 2019 . Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2018 2017 2016 2018 2017 2016 Net periodic pension expense Discount rates 3.55 % 3.40 % 3.36 % 2.34 % 2.72 % 2.36 % Rate of increase in compensation 4.00 4.00 4.00 2.72 2.76 2.80 Expected long-term rate of return on plan assets 6.25 6.25 6.75 4.03 4.51 4.87 Benefit obligation Discount rates 3.69 % 3.39 % 3.27 % 2.35 % 2.35 % 2.84 % Rate of increase in compensation N/A (1) 4.00 4.00 2.59 3.18 2.98 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. Our defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of our plans. For March 31, 2018 , our U.S. defined benefit liabilities are valued using a weighted average discount rate of 3.69% , which represents an increase of 30 basis points from our 2017 weighted-average discount rate of 3.39% . Our non-U.S. defined benefit pension plan liabilities are valued using a weighted-average discount rate of 2.35% , which represents no change from 2017 . Plan Assets Investment Strategy : The overall objective for U. S. pension plan assets is to generate long-term investment returns consistent with capital preservation and prudent investment practices, with a diversification of asset types and investment strategies. Periodic adjustments are made to provide liquidity for benefit payments and to rebalance plan assets to their target allocations. The target allocations for U.S. plan assets at March 31, 2018 and 2017 are 26% and 50% equity investments, 70% and 45% fixed income investments including cash and cash equivalents and 4% and 5% real estate. Equity investments include common stock, preferred stock, and equity commingled funds. Fixed income investments include corporate bonds, government securities, mortgage-backed securities, asset-backed securities, other directly held fixed income investments, and fixed income commingled funds. The real estate investments are in a commingled real estate fund. For both U.S. and non-U.S. plan assets, the investment strategies are subject to local regulations and the asset/liability profiles of the plans in each individual country. Plan assets of the non-U.S. plans are broadly invested in a manner appropriate to the nature and duration of the expected future retirement benefits payable under the plans. Plan assets are primarily invested in high-quality corporate and government bond funds and equity securities. Assets are properly diversified to avoid excessive reliance on any particular asset, issuer or group of undertakings so as to avoid accumulations of risk in the portfolio as a whole. We develop the expected long-term rate of return assumption based on the projected performance of the asset classes in which plan assets are invested. The target asset allocation was determined based on the liability and risk tolerance characteristics of the plans and at times may be adjusted to achieve overall investment objectives. Fair Value Measurements: The following tables represent our pension plan assets as of March 31, 2018 and 2017 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 U.S. Plans Non-U.S. Plans March 31, 2017 March 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 $ — $ — $ 8 $ 2 $ — $ — $ 2 Equity securities: Common and preferred stock 17 — — 17 — — — — Equity commingled funds — — — — 13 40 — 53 Fixed income securities: Government securities — 27 — 27 24 68 — 92 Corporate bonds — 12 — 12 69 120 10 199 Mortgage-backed securities — 10 — 10 — — — — Asset-backed securities and other — 19 — 19 — — — — Fixed income commingled funds — — — — 20 29 — 49 Other: Real estate funds — — — — 2 — 6 8 Total $ 25 $ 68 $ — $ 93 $ 130 $ 257 $ 16 $ 403 Assets held at NAV practical expedient (1) Equity commingled funds 131 94 Fixed income commingled funds 59 53 Real estate funds 10 13 Other — 60 Total plan assets $ 293 $ 623 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. Cash and cash equivalents - Cash and cash equivalents include short-term investment funds that maintain daily liquidity and aim to have constant unit values of $1.00 . The funds invest in short-term fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and high credit quality. Directly held cash and cash equivalents are classified as Level 1 investments. Cash and cash equivalents include money market funds and other commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 investments. Common and preferred stock - This investment class consists of common and preferred shares issued by U.S. and non-U.S. corporations. Common shares are traded actively on exchanges and price quotes are readily available. Preferred shares may not be actively traded. Holdings of common shares are generally classified as Level 1 investments. Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets; these are classified as Level 1 or Level 2 investments. Fixed income securities - Government securities consist of bonds and debentures issued by central governments or federal agencies; corporate bonds consist of bonds and debentures issued by corporations; mortgage-backed securities consist of debt obligations secured by a mortgage or pool of mortgages; and asset-backed securities primarily consist of debt obligations secured by an asset or pool of assets other than mortgages. Inputs to the valuation methodology include quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Multiple prices and price types are obtained from pricing vendors whenever possible, enabling cross-provider price validations. Fixed income securities are generally classified as Level 1 or Level 2 investments. Fixed income commingled funds - Some fixed income investments are held in exchange traded or commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 or 2 investments. Real estate funds - The value of the real estate funds is reported by the fund manager and is based on a valuation of the underlying properties. Inputs used in the valuation include items such as cost, discounted future cash flows, independent appraisals and market based comparable data. The real estate funds are classified as Level 1, 2, or 3 investments. Other - At March 31, 2018 and 2017 , this includes $38 million and $37 million of plan asset value relating to the SPK. In principle, the SPK is organized as a pay-as-you-go system guaranteed by the Norwegian government as it holds no Company-owned assets to back the pension liabilities. The Company pays a pension premium used to fund the plan, which is paid directly to the Norwegian government who establishes an account for each participating employer to keep track of the financial status of the plan, including managing the contributions and the payments. Further, the investment return credited to this account is determined annually by the SPK based on the performance of long-term government bonds. The activity attributable to Level 3 plan assets was insignificant in the years ended March 31, 2018 and 2017. Multiemployer Plans The Company contributes to a number of multiemployer pension plans under the terms of collective-bargaining agreements that cover union-represented employees in the U.S. In 2017, we also contributed to the Pensjonsordningen for Apoteketaten (“POA”), a mandatory multiemployer pension scheme for our pharmacy employees in Norway, managed by the association of Norwegian Pharmacies. The risks of participating in these multiemployer plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Actions taken by other participating employers may lead to adverse changes in the financial condition of a multiemployer benefit plan and our withdrawal liability and contributions may increase. Contributions and amounts accrued for U.S. Plans were not material for the years ended March 31, 2018, 2017, and 2016. Contributions to the POA for non-U.S. Plans exceeding 5% of total plan contributions were $16 million , $18 million and $23 million in 2018, 2017 and 2016. Based on actuarial calculations, we estimate the funded status for our non-U.S. Plans to be approximately 75% as of March 31, 2018 . No amounts were accrued for liability associated with the POA as we have no intention to withdraw from the plan. Defined Contribution Plans We have a contributory retirement savings plan (“RSP”) for U.S. eligible employees. Eligible employees may contribute to the RSP up to 75% of their eligible compensation on a pre-tax or post-tax basis not to exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay contributed and 50% for the next 2% of pay contributed. The Company also may make an additional annual matching contribution for each plan year to enable participants to receive a full match based on their annual contribution. The Company also contributed to non-U.S. plans that are available in certain countries. Contribution expenses for the RSP and non-U.S. plans were $82 million , $98 million and $99 million for the years ended March 31, 2018 , 2017 , and 2016 . Postretirement Benefits We maintain a number of postretirement benefits, primarily consisting of healthcare and life insurance (“welfare”) benefits, for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. We also provide postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal year-end. The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 4 Amortization of unrecognized actuarial gain and prior service credit (6 ) (1 ) — Net periodic postretirement (credit) expense $ (3 ) $ 2 $ 5 Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2018 2017 Benefit obligation at beginning of period $ 82 $ 98 Service cost 1 1 Interest cost 2 2 Actuarial gain (1 ) (13 ) Benefit payments (6 ) (6 ) Benefit obligation at end of period $ 78 $ 82 The components of the amount recognized in accumulated other comprehensive income for the Company’s other postretirement benefits at March 31, 2018 and 2017 were net actuarial gains of $8 million and $11 million and net prior service credits of $11 million and $14 million . Other changes in benefit obligations recognized in other comprehensive income were net actuarial gains of $3 million and $14 million in 2018 and 2017 and net prior service credits of $3 million and $3 million in 2018 and 2017 . We estimate that the amortization of the actuarial income from stockholders’ equity to other postretirement gain in 2019 will be $5 million . Comparable 2018 amount was an expense of $6 million . Other postretirement benefits are funded as claims are paid. Expected benefit payments for our postretirement welfare benefit plans are as follows: $8 million , $7 million , $7 million , $7 million and $7 million for 2019 to 2023 and $28 million cumulatively for 2024 through 2028 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our postretirement welfare benefit plans are $8 million for 2019 . Weighted-average discount rates used to estimate postretirement welfare benefit expenses were 3.83% , 3.68% and 3.59% for 2018 , 2017 and 2016 . Weighted-average discount rates for the actuarial present value of benefit obligations were 3.92% , 3.82% and 3.68% for 2018 , 2017 and 2016 . Actuarial gain or loss for the postretirement welfare benefit plan is amortized to income or expense over a three -year period. The assumed healthcare cost trends used in measuring the accumulated postretirement benefit obligation were 3.00% for 2018 and 2017 . For 2018 , 2017 and 2016 , a one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not have a material impact on the postretirement benefit obligations. Pursuant to various collective bargaining agreements, we contribute to multiemployer health and welfare plans that cover union-represented employees. Our liability is limited to the contractual dollar obligations set forth by the collective bargaining agreements. Contributions to the plans and amounts accrued were not material for the years ended March 31, 2018 , 2017 , and 2016 . |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Postretirement Benefits | Pension Benefits We maintain a number of qualified and nonqualified defined benefit pension plans and defined contribution plans for eligible employees. Defined Benefit Pension Plans Eligible U.S. employees who were employed by the Company as of December 31, 1995 are covered under the Company-sponsored defined benefit retirement plan. In 1997, the plan was amended to freeze all plan benefits as of December 31, 1996. Benefits for the defined benefit retirement plan are based primarily on age of employees at date of retirement, years of creditable service and the average of the highest 60 months of pay during the 15 years prior to the plan freeze date. We also have defined benefit pension plans for eligible employees outside of the U.S., as well as an unfunded nonqualified supplemental defined benefit plan for certain U.S. executives. Our non-U.S. defined benefit pension plans cover eligible employees located predominantly in Norway, United Kingdom, Germany, and Canada. Benefits for these plans are based primarily on each employee’s final salary, with annual adjustments for inflation. The obligations in Norway are largely related to the state-regulated pension plan which is managed by the Norwegian Public Service Pension Fund (“SPK”). According to the terms of the SPK, the plan assets of state regulated plans in Norway must correspond very closely to the pension obligation calculated using the principles codified in Norwegian law. The shortfall may not exceed 1% of the obligation. If the shortfall exceeds this threshold, it must be remedied within two years. In the United Kingdom, we have subsidiaries that participate in a joint pension plan. This plan is largely funded by contractual trust arrangements that hold Company assets that may only be used to pay pension obligations. The Trustee Board decides on the minimum contribution to the plan in association with selected employees of the entity. A valuation is performed at regular intervals in order to determine the amount of the contribution and to ensure that the minimum contribution is made. The pension obligation in Germany is unfunded with the exception of the contractual trust arrangement used to fund pensions of McKesson Europe’s Management Board. Defined benefit plan assets and obligations are measured as of the Company’s fiscal year-end. The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 3 $ 5 $ 4 $ 15 $ 15 $ 20 Interest cost on projected benefit obligation 14 13 18 22 23 24 Expected return on assets (19 ) (15 ) (19 ) (26 ) (26 ) (30 ) Amortization of unrecognized actuarial loss and prior service costs 6 11 42 5 4 3 Curtailment/settlement loss (gain) 2 — 2 1 (2 ) — Net periodic pension expense $ 6 $ 14 $ 47 $ 17 $ 14 $ 17 The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service period of active employees. Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2018 2017 Change in benefit obligations Benefit obligation at beginning of period (1) $ 513 $ 535 $ 943 $ 899 Service cost 3 5 15 15 Interest cost 14 13 22 23 Actuarial loss (gain) 1 (11 ) (15 ) 98 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Amendments — — (2 ) — Acquisitions — — — 37 Foreign exchange impact and other — — 115 (94 ) Benefit obligation at end of period (1) $ 485 $ 513 $ 1,035 $ 943 Change in plan assets Fair value of plan assets at beginning of period $ 293 $ 262 $ 623 $ 607 Actual return on plan assets 35 22 21 76 Employer and participant contributions 53 38 17 16 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Acquisitions — — — 35 Foreign exchange impact and other — — 69 (76 ) Fair value of plan assets at end of period $ 335 $ 293 $ 687 $ 623 Funded status at end of period $ (150 ) $ (220 ) $ (348 ) $ (320 ) Amounts recognized on the balance sheet Assets $ 10 $ — $ 19 $ 4 Current liabilities (39 ) (17 ) (7 ) (7 ) Long-term liabilities (121 ) (203 ) (360 ) (317 ) Total $ (150 ) $ (220 ) $ (348 ) $ (320 ) (1) The benefit obligation is the projected benefit obligation. The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans with an accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Projected benefit obligation $ 485 $ 513 $ 1,035 $ 943 Accumulated benefit obligation 485 513 990 902 Fair value of plan assets 335 293 687 623 Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Net actuarial loss $ 134 $ 157 $ 162 $ 160 Prior service credit — — (5 ) (3 ) Total $ 134 $ 157 $ 157 $ 157 Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Net actuarial loss (gain) $ (15 ) $ (17 ) $ 9 $ (11 ) $ 47 $ (38 ) Prior service credit — — — (2 ) — (5 ) Amortization of: Net actuarial loss (8 ) (11 ) (44 ) (6 ) (4 ) (5 ) Prior service credit (cost) — — — — 2 2 Foreign exchange impact and other — — — 19 (10 ) (1 ) Total recognized in other comprehensive loss (income) $ (23 ) $ (28 ) $ (35 ) $ — $ 35 $ (47 ) We expect to amortize $9 million of actuarial loss for the pension plans from stockholders’ equity to pension expense in 2019 . The comparable 2018 amount was $14 million of actuarial loss. Projected benefit obligations related to our unfunded U.S. plans were $160 million and $176 million at March 31, 2018 and 2017 . Pension obligations for our unfunded plans are based on the recommendations of independent actuaries. Projected benefit obligations relating to our unfunded non-U.S. plans were $297 million and $276 million at March 31, 2018 and 2017. Funding obligations for our non-U.S. plans vary based on the laws of each non-U.S. jurisdiction. Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows: $97 million , $184 million , $65 million , $70 million and $67 million for 2019 to 2023 and $339 million for 2024 through 2028 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our pension plans are $55 million for 2019 . Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2018 2017 2016 2018 2017 2016 Net periodic pension expense Discount rates 3.55 % 3.40 % 3.36 % 2.34 % 2.72 % 2.36 % Rate of increase in compensation 4.00 4.00 4.00 2.72 2.76 2.80 Expected long-term rate of return on plan assets 6.25 6.25 6.75 4.03 4.51 4.87 Benefit obligation Discount rates 3.69 % 3.39 % 3.27 % 2.35 % 2.35 % 2.84 % Rate of increase in compensation N/A (1) 4.00 4.00 2.59 3.18 2.98 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. Our defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of our plans. For March 31, 2018 , our U.S. defined benefit liabilities are valued using a weighted average discount rate of 3.69% , which represents an increase of 30 basis points from our 2017 weighted-average discount rate of 3.39% . Our non-U.S. defined benefit pension plan liabilities are valued using a weighted-average discount rate of 2.35% , which represents no change from 2017 . Plan Assets Investment Strategy : The overall objective for U. S. pension plan assets is to generate long-term investment returns consistent with capital preservation and prudent investment practices, with a diversification of asset types and investment strategies. Periodic adjustments are made to provide liquidity for benefit payments and to rebalance plan assets to their target allocations. The target allocations for U.S. plan assets at March 31, 2018 and 2017 are 26% and 50% equity investments, 70% and 45% fixed income investments including cash and cash equivalents and 4% and 5% real estate. Equity investments include common stock, preferred stock, and equity commingled funds. Fixed income investments include corporate bonds, government securities, mortgage-backed securities, asset-backed securities, other directly held fixed income investments, and fixed income commingled funds. The real estate investments are in a commingled real estate fund. For both U.S. and non-U.S. plan assets, the investment strategies are subject to local regulations and the asset/liability profiles of the plans in each individual country. Plan assets of the non-U.S. plans are broadly invested in a manner appropriate to the nature and duration of the expected future retirement benefits payable under the plans. Plan assets are primarily invested in high-quality corporate and government bond funds and equity securities. Assets are properly diversified to avoid excessive reliance on any particular asset, issuer or group of undertakings so as to avoid accumulations of risk in the portfolio as a whole. We develop the expected long-term rate of return assumption based on the projected performance of the asset classes in which plan assets are invested. The target asset allocation was determined based on the liability and risk tolerance characteristics of the plans and at times may be adjusted to achieve overall investment objectives. Fair Value Measurements: The following tables represent our pension plan assets as of March 31, 2018 and 2017 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 U.S. Plans Non-U.S. Plans March 31, 2017 March 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 $ — $ — $ 8 $ 2 $ — $ — $ 2 Equity securities: Common and preferred stock 17 — — 17 — — — — Equity commingled funds — — — — 13 40 — 53 Fixed income securities: Government securities — 27 — 27 24 68 — 92 Corporate bonds — 12 — 12 69 120 10 199 Mortgage-backed securities — 10 — 10 — — — — Asset-backed securities and other — 19 — 19 — — — — Fixed income commingled funds — — — — 20 29 — 49 Other: Real estate funds — — — — 2 — 6 8 Total $ 25 $ 68 $ — $ 93 $ 130 $ 257 $ 16 $ 403 Assets held at NAV practical expedient (1) Equity commingled funds 131 94 Fixed income commingled funds 59 53 Real estate funds 10 13 Other — 60 Total plan assets $ 293 $ 623 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. Cash and cash equivalents - Cash and cash equivalents include short-term investment funds that maintain daily liquidity and aim to have constant unit values of $1.00 . The funds invest in short-term fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and high credit quality. Directly held cash and cash equivalents are classified as Level 1 investments. Cash and cash equivalents include money market funds and other commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 investments. Common and preferred stock - This investment class consists of common and preferred shares issued by U.S. and non-U.S. corporations. Common shares are traded actively on exchanges and price quotes are readily available. Preferred shares may not be actively traded. Holdings of common shares are generally classified as Level 1 investments. Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets; these are classified as Level 1 or Level 2 investments. Fixed income securities - Government securities consist of bonds and debentures issued by central governments or federal agencies; corporate bonds consist of bonds and debentures issued by corporations; mortgage-backed securities consist of debt obligations secured by a mortgage or pool of mortgages; and asset-backed securities primarily consist of debt obligations secured by an asset or pool of assets other than mortgages. Inputs to the valuation methodology include quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Multiple prices and price types are obtained from pricing vendors whenever possible, enabling cross-provider price validations. Fixed income securities are generally classified as Level 1 or Level 2 investments. Fixed income commingled funds - Some fixed income investments are held in exchange traded or commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 or 2 investments. Real estate funds - The value of the real estate funds is reported by the fund manager and is based on a valuation of the underlying properties. Inputs used in the valuation include items such as cost, discounted future cash flows, independent appraisals and market based comparable data. The real estate funds are classified as Level 1, 2, or 3 investments. Other - At March 31, 2018 and 2017 , this includes $38 million and $37 million of plan asset value relating to the SPK. In principle, the SPK is organized as a pay-as-you-go system guaranteed by the Norwegian government as it holds no Company-owned assets to back the pension liabilities. The Company pays a pension premium used to fund the plan, which is paid directly to the Norwegian government who establishes an account for each participating employer to keep track of the financial status of the plan, including managing the contributions and the payments. Further, the investment return credited to this account is determined annually by the SPK based on the performance of long-term government bonds. The activity attributable to Level 3 plan assets was insignificant in the years ended March 31, 2018 and 2017. Multiemployer Plans The Company contributes to a number of multiemployer pension plans under the terms of collective-bargaining agreements that cover union-represented employees in the U.S. In 2017, we also contributed to the Pensjonsordningen for Apoteketaten (“POA”), a mandatory multiemployer pension scheme for our pharmacy employees in Norway, managed by the association of Norwegian Pharmacies. The risks of participating in these multiemployer plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Actions taken by other participating employers may lead to adverse changes in the financial condition of a multiemployer benefit plan and our withdrawal liability and contributions may increase. Contributions and amounts accrued for U.S. Plans were not material for the years ended March 31, 2018, 2017, and 2016. Contributions to the POA for non-U.S. Plans exceeding 5% of total plan contributions were $16 million , $18 million and $23 million in 2018, 2017 and 2016. Based on actuarial calculations, we estimate the funded status for our non-U.S. Plans to be approximately 75% as of March 31, 2018 . No amounts were accrued for liability associated with the POA as we have no intention to withdraw from the plan. Defined Contribution Plans We have a contributory retirement savings plan (“RSP”) for U.S. eligible employees. Eligible employees may contribute to the RSP up to 75% of their eligible compensation on a pre-tax or post-tax basis not to exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay contributed and 50% for the next 2% of pay contributed. The Company also may make an additional annual matching contribution for each plan year to enable participants to receive a full match based on their annual contribution. The Company also contributed to non-U.S. plans that are available in certain countries. Contribution expenses for the RSP and non-U.S. plans were $82 million , $98 million and $99 million for the years ended March 31, 2018 , 2017 , and 2016 . Postretirement Benefits We maintain a number of postretirement benefits, primarily consisting of healthcare and life insurance (“welfare”) benefits, for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. We also provide postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal year-end. The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 4 Amortization of unrecognized actuarial gain and prior service credit (6 ) (1 ) — Net periodic postretirement (credit) expense $ (3 ) $ 2 $ 5 Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2018 2017 Benefit obligation at beginning of period $ 82 $ 98 Service cost 1 1 Interest cost 2 2 Actuarial gain (1 ) (13 ) Benefit payments (6 ) (6 ) Benefit obligation at end of period $ 78 $ 82 The components of the amount recognized in accumulated other comprehensive income for the Company’s other postretirement benefits at March 31, 2018 and 2017 were net actuarial gains of $8 million and $11 million and net prior service credits of $11 million and $14 million . Other changes in benefit obligations recognized in other comprehensive income were net actuarial gains of $3 million and $14 million in 2018 and 2017 and net prior service credits of $3 million and $3 million in 2018 and 2017 . We estimate that the amortization of the actuarial income from stockholders’ equity to other postretirement gain in 2019 will be $5 million . Comparable 2018 amount was an expense of $6 million . Other postretirement benefits are funded as claims are paid. Expected benefit payments for our postretirement welfare benefit plans are as follows: $8 million , $7 million , $7 million , $7 million and $7 million for 2019 to 2023 and $28 million cumulatively for 2024 through 2028 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our postretirement welfare benefit plans are $8 million for 2019 . Weighted-average discount rates used to estimate postretirement welfare benefit expenses were 3.83% , 3.68% and 3.59% for 2018 , 2017 and 2016 . Weighted-average discount rates for the actuarial present value of benefit obligations were 3.92% , 3.82% and 3.68% for 2018 , 2017 and 2016 . Actuarial gain or loss for the postretirement welfare benefit plan is amortized to income or expense over a three -year period. The assumed healthcare cost trends used in measuring the accumulated postretirement benefit obligation were 3.00% for 2018 and 2017 . For 2018 , 2017 and 2016 , a one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not have a material impact on the postretirement benefit obligations. Pursuant to various collective bargaining agreements, we contribute to multiemployer health and welfare plans that cover union-represented employees. Our liability is limited to the contractual dollar obligations set forth by the collective bargaining agreements. Contributions to the plans and amounts accrued were not material for the years ended March 31, 2018 , 2017 , and 2016 . |
Hedging Activities
Hedging Activities | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities | Hedging Activities In the normal course of business, we are exposed to interest rate and foreign currency exchange rate fluctuations. At times, we limit these risks through the use of derivatives such as interest rate swaps, cross-currency swaps and foreign currency forward contracts. In accordance with our policy, derivatives are only used for hedging purposes. We do not use derivatives for trading or speculative purposes. Foreign currency exchange risk We conduct our business worldwide in U.S. dollars and the functional currencies of our foreign subsidiaries, including Euro, British pound sterling and Canadian dollars. Changes in foreign currency exchange rates could have a material adverse impact on our financial results that are reported in U.S. dollars. We are also exposed to foreign currency exchange rate risk related to our foreign subsidiaries, including intercompany loans denominated in non-functional currencies. We have certain foreign currency exchange rate risk programs that use foreign currency forward contracts and cross-currency swaps. These forward contracts and cross-currency swaps are generally used to offset the potential income statement effects from intercompany loans denominated in non-functional currencies. These programs reduce but do not entirely eliminate foreign currency exchange rate risk. At March 31, 2018, we had €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes designated as non-derivative net investment hedges which hedge portions of our net investments in non-U.S. subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. For all notes that are designated as net investment hedges and meet effectiveness requirements, the changes in carrying value of the notes attributable to the change in spot rates are recorded in foreign currency translation adjustments within Accumulated Other Comprehensive Income in the statement of stockholders’ equity where they offset foreign currency translation gains and losses recorded on our net investments. To the extent foreign currency denominated notes designated as net investment hedges are ineffective, changes in carrying value attributable to the change in spot rates are recorded in earnings. Losses from net investment hedges recorded in other comprehensive income were $268 million and $13 million for the years ended March 31, 2018 and 2017. There was no ineffectiveness in our net investment hedges for the years ended March 31, 2018 and 2017. Derivatives Designated as Hedges In March 2018, we entered into cross-currency swap contracts with total gross notional amounts of £432 million , which are designated as net investment hedges. Under the terms of the cross-currency swap contracts, we agree with third parties to exchange fixed interest payments in one currency for fixed interest payments in another currency at specified intervals and to exchange principal in one currency for principal in another currency, calculated by reference to agreed-upon notional amounts. These swaps are utilized to hedge portions of our net investments denominated in British pound sterling against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The changes in the fair value of these derivatives attributable to the changes in spot currency exchange rates and differences between spot and forward interest rates are recorded in Accumulated Other Comprehensive Income in the statement of stockholders’ equity where they offset foreign currency translation gains and losses recorded on our net investments denominated in British pound sterling. Losses from these net investment hedges recorded in other comprehensive income were $7 million for the year ended March 31, 2018. These cross-currency swaps will mature between February 2022 and February 2024. At March 31, 2018 and 2017 , we had forward contracts to hedge the U.S. dollar against cash flows denominated in Canadian dollars with total gross notional amounts of $162 million and $243 million , which were designated as cash flow hedges. These contracts will mature between March 2019 and March 2020 . From time to time, we enter into cross-currency swaps to hedge intercompany loans denominated in non-functional currencies. For our cross-currency swap transactions, we agree with third parties to exchange fixed interest payments in one currency for fixed interest payments in another currency at specified intervals and to exchange principal in one currency for principal in another currency, calculated by reference to agreed-upon notional amounts. These cross-currency swaps are designed to reduce the income statement effects arising from fluctuations in foreign exchange rates and have been designated as cash flow hedges. At March 31, 2018 and March 31, 2017, we had cross-currency swaps with total gross notional amounts of approximately $3,412 million and $2,663 million , which are designated as cash flow hedges. These swaps will mature between July 2018 and January 2024. For forward contracts and cross-currency swaps that are designated as cash flow hedges, the effective portion of changes in the fair value of the hedges is recorded in Accumulated Other Comprehensive Income and reclassified into earnings in the same period in which the hedged transaction affects earnings. Changes in fair values representing hedge ineffectiveness are recognized in current earnings. Losses of $30 million and $19 million in 2018 and 2017 and gains of $9 million in 2016 were recorded in other comprehensive income from cash flow hedges. Gains or losses reclassified from Accumulated Other Comprehensive Income and recorded in operating expenses in the consolidated statements of operations were not material in 2018, 2017 and 2016. There was no ineffectiveness in our cash flow hedges for the years ended March 31, 2018, 2017 and 2016. Derivatives Not Designated as Hedges Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change in value included in earnings. At March 31, 2017, we had a forward contract to primarily hedge the U.S. dollar against cash flows denominated in Canadian dollars with a total gross notional amount of $173 million . This contract matured in April 2017 and was not designated for hedge accounting. Gains or losses from this contract were not material for the year ended March 31, 2017. We also have a number of forward contracts to hedge the Euro against cash flows denominated primarily in British pound sterling and other European currencies. At March 31, 2018 and 2017 , the total gross notional amounts of these contracts were $29 million and $62 million . These contracts will mature through December 2018 and none of these contracts were designated for hedge accounting. Changes in the fair values for contracts not designated as hedges are recorded directly into earnings and accordingly, net gains of nil , $5 million and $60 million in 2018, 2017 and 2016, were recorded within operating expenses. Gains or losses from these contracts are largely offset by changes in the value of the underlying intercompany foreign currency loans. Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet Caption March 31, 2018 March 31, 2017 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ 15 $ — $ 81 $ 17 $ — $ 81 Foreign exchange contracts (non-current) Other Noncurrent Assets 14 — 81 32 — 162 Cross-currency swaps (current) Prepaid expenses and other/ Other Accrued Liabilities — 7 504 17 — 174 Cross-currency swaps (non-current) Other Noncurrent Assets/Liabilities — 222 3,508 90 — 2,489 Total $ 29 $ 229 $ 156 $ — Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ 13 $ 1 $ — $ 198 Foreign exchange contracts (current) Other accrued liabilities — — 16 — — 37 Total $ — $ — $ 1 $ — Refer to Financial Note 21, “Fair Value Measurements,” for more information on these recurring fair value measurements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a three-level hierarchy that prioritizes the inputs used in determining fair value by their reliability and preferred use, as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 - Valuations based on quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on inputs that are both significant to the fair value measurement and unobservable. At March 31, 2018 and 2017 , the carrying amounts of cash, certain cash equivalents, restricted cash, marketable securities, receivables, drafts and accounts payable, short-term borrowings and other current liabilities approximated their estimated fair values because of the short maturity of these financial instruments. The fair value of our commercial paper was determined using quoted prices in active markets for identical liabilities, which are considered to be Level 1 inputs. Our long-term debt is carried at amortized cost. The carrying amounts and estimated fair values of these liabilities were $7.9 billion and $8.1 billion at March 31, 2018 and $8.4 billion and $8.7 billion at March 31, 2017 . The estimated fair value of our long-term debt was determined using quoted market prices in a less active market and other observable inputs from available market information, which are considered to be Level 2 inputs, and may not be representative of actual values that could have been realized or that will be realized in the future. Assets Measured at Fair Value on a Recurring Basis Cash and cash equivalents included investments in money market funds of $799 million and $478 million at March 31, 2018 and 2017. The fair value of the money market funds was determined by using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs under the fair value measurements and disclosure guidance. The carrying value of all other cash equivalents approximates their fair value due to their relatively short-term nature. Fair values for our marketable securities were not material at March 31, 2018 and 2017 . Fair values of our forward foreign currency contracts were determined using observable inputs from available market information. Fair values of our cross-currency swaps were determined using quoted foreign currency exchange rates and other observable inputs from available market information. These inputs are considered Level 2 under the fair value measurements and disclosure guidance, and may not be representative of actual values that could have been realized or that will be realized in the future. Refer to Financial Note 20, “Hedging Activities,” for fair value and other information on our foreign currency derivatives including forward foreign currency contracts and cross-currency swaps. There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended March 31, 2018 and 2017 . Assets Measured at Fair Value on a Nonrecurring Basis At March 31, 2018, assets measured at fair value on a nonrecurring basis consisted of goodwil, intangible and other long-lived assets for our McKesson Europe and Rexall Health reporting units within our Distribution Solutions segment. At March 31, 2017, assets measured at fair value on a nonrecurring basis primarily consisted of our equity method investment in Change Healthcare (Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange,”) and goodwill for our EIS reporting unit within our Technology Solutions segment. Goodwill Fair value assessments of the reporting unit and the reporting unit's net assets, which are performed for goodwill impairment tests, are considered a Level 3 measurement due to the significance of unobservable inputs developed using company specific information. We considered a market approach as well as an income approach using the DCF model to determine the fair value of the reporting unit. Refer to Financial Note 3, “Goodwill Impairment Charges,” for more information regarding goodwill impairment charges recorded for these reporting units during 2018 and 2017. Intangible and Other Long-Lived Assets We measure certain intangible and other long-lived assets at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. An impairment charge is recorded when the cost of the asset exceeds its fair value and this condition is determined to be other-than-temporary. As discussed in Financial Note 4, “Restructuring and Asset Impairment Charges,” we recorded non-cash pre-tax charges of $479 million ( $443 million after-tax) during 2018 to impair the carrying values of certain long-lived assets including intangible assets and capitalized software assets. We utilized an income approach (DCF method) or a combination of an income approach and a market approach for estimating the fair value of intangible assets. The future cash flows used in the analysis are based on internal cash flow projections based on our long-range plans and include significant assumptions by management. Accordingly, the fair value assessment of the long-lived assets is considered a Level 3 fair value measurement. Liabilities Measured at Fair Value on a Nonrecurring Basis At March 31, 2018, we remeasured the contingent consideration liability related to our acquisition of CMM at fair value on a nonrecurring basis. Refer to Financial Note 6, “Business Combinations,” for more information on the fair value of the contingent consideration liability. There were no liabilities measured at fair value on a nonrecurring basis at March 31, 2017. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Mar. 31, 2018 | |
Leases, Operating [Abstract] | |
Lease Obligations | Lease Obligations We lease facilities and equipment almost solely under operating leases. At March 31, 2018 , future minimum lease payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year for years ending March 31 are: (In millions) Noncancelable Operating Leases 2019 $ 502 2020 443 2021 383 2022 333 2023 277 Thereafter 1,134 Total minimum lease payments (1) $ 3,072 (1) Amount includes future minimum lease payments for the sale-leaseback transaction of $62 million . Minimum lease payments have not been reduced by minimum sublease income of $147 million due under future noncancelable subleases. Rent expense under operating leases was $568 million , $474 million and $433 million in 2018 , 2017 and 2016 . Rent expense increased in 2018 due to our December 2017 acquisition of Rexall Health. We recognize rent expense on a straight-line basis over the term of the lease, taking into account, when applicable, lessor incentives for tenant improvements, periods where no rent payment is required and escalations in rent payments over the term of the lease. Deferred rent is recognized for the difference between the rent expense recognized on a straight-line basis and the payments made per the terms of the lease. Remaining terms for facilities leases generally range from one to sixteen years, while remaining terms for equipment leases range from one to seven years. Most real property leases contain renewal options (generally for five -year increments) and provisions requiring us to pay property taxes and operating expenses in excess of base period amounts. Sublease rental income was not material for 2018 , 2017 and 2016 . |
Financial Guarantees and Warran
Financial Guarantees and Warranties | 12 Months Ended |
Mar. 31, 2018 | |
Financial Guarantees And Warranties [Abstract] | |
Financial Guarantees And Warranties | Financial Guarantees and Warranties Financial Guarantees We have agreements with certain of our customers’ financial institutions, mainly in Canada and Europe, under which we have guaranteed the repurchase of our customers’ inventory or our customers’ debt in the event these customers are unable to meet their obligations to those financial institutions. For our inventory repurchase agreements, among other requirements, inventories must be in resalable condition and any repurchase would be at a discount. The inventory repurchase agreements mostly relate to certain Canadian customers and generally range from one to two years. Customers’ debt guarantees range from one to twelve years and are primarily provided to facilitate financing for certain customers. The majority of our customers’ debt guarantees are secured by certain assets of the customer. At March 31, 2018 , the maximum amounts of inventory repurchase guarantees and customers’ debt guarantees were $234 million and $104 million , of which we have not accrued any material amounts. The expirations of these financial guarantees are as follows: $178 million , $18 million , $7 million , $10 million and $18 million from 2019 through 2023 and $107 million thereafter. At March 31, 2018 , our banks and insurance companies have issued $259 million of standby letters of credit and surety bonds, which were issued on our behalf mostly related to our customer contracts and in order to meet the security requirements for statutory licenses and permits, court and fiduciary obligations and our workers’ compensation and automotive liability programs. Our software license agreements generally include certain provisions for indemnifying customers against liabilities if our software products infringe a third party’s intellectual property rights. To date, we have not incurred any material costs as a result of such indemnification agreements and have not accrued any liabilities related to such obligations. In conjunction with certain transactions, primarily divestitures, we may provide routine indemnification agreements (such as retention of previously existing environmental, tax and employee liabilities) whose terms vary in duration and often are not explicitly defined. Where appropriate, obligations for such indemnifications are recorded as liabilities. Because the amounts of these indemnification obligations often are not explicitly stated, the overall maximum amount of these commitments cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have historically not made material payments as a result of these indemnification provisions. Warranties In the normal course of business, we provide certain warranties and indemnification protection for our products and services. For example, we provide warranties that the pharmaceutical and medical-surgical products we distribute are in compliance with the U.S. Food, Drug and Cosmetic Act and other applicable laws and regulations. We have received the same warranties from our suppliers, which customarily are the manufacturers of the products. In addition, we have indemnity obligations to our customers for these products, which have also been provided to us from our suppliers, either through express agreement or by operation of law. We also provide warranties regarding the performance of software and products we sell. Our liability under these warranties is to bring the product into compliance with previously agreed upon specifications. For software products, this may result in additional project costs, which are reflected in our estimates used for the percentage-of-completion method of accounting for software installation services within these contracts. In addition, most of our customers who purchase our software and automation products also purchase annual maintenance agreements. Revenues from these maintenance agreements are recognized on a straight-line basis over the contract period and the cost of servicing product warranties is charged to expense when claims become estimable. Accrued warranty costs were not material to the consolidated balance sheets. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities In addition to commitments and obligations in the ordinary course of business, we are subject to various claims, including claims with customers and vendors, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. As described below, many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate a range of possible loss. When a loss is probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. Disclosure is also provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the potential loss or range of loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Such factors bear directly on whether it is possible to reasonably estimate a range of potential loss and boundaries of high and low estimates. We are party to the legal proceedings described below. Unless otherwise stated, we are currently unable to estimate a range of reasonably possible losses for the unresolved proceedings described below. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our financial position or results of operations. I. Litigation and Claims On September 7, 2007, McKesson Specialty Arizona Inc. was served with a complaint filed in the New York Supreme Court, New York County by PSKW, LLC, alleging that McKesson Specialty Arizona misappropriated trade secrets and confidential information in launching its LoyaltyScript® program, PSKW, LLC v. McKesson Specialty Arizona Inc., Index No. 602921/07 . PSKW later amended its complaint twice to add additional, but related claims. On March 9, 2017, the court entered judgment after trial in McKesson Specialty Arizona’s favor on all claims. On April 6, 2017, PSKW appealed the trial court’s judgment. The appeal was dismissed on March 27, 2018. On April 16, 2013, the Company’s wholly-owned subsidiary, U.S. Oncology, Inc. (“USON”), was served with a third amended qui tam complaint filed in the United States District Court for the Eastern District of New York by two relators, purportedly on behalf of the United States, 21 states and the District of Columbia, against USON and five other defendants, alleging that USON solicited and received illegal “kickbacks” from Amgen in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Piacentile v. Amgen Inc., et al. , CV 04-3983 (SJ). Previously, the United States declined to intervene in the case as to all allegations and defendants except for Amgen. On February 5, 2013, the United States filed a motion to dismiss the claims pled against Amgen. On September 30, 2013, the court granted the United States’ motion to dismiss. On April 4, 2014, USON filed a motion to dismiss the claims pled against it. The court has not yet ruled on USON’s motion. On May 17, 2013, the Company was served with a complaint filed in the United States District Court for the Northern District of California by True Health Chiropractic Inc., alleging that McKesson sent unsolicited marketing faxes in violation of the Telephone Consumer Protection Act of 1991 (“TCPA”), as amended by the Junk Fax Protection Act of 2005 or JFPA, True Health Chiropractic Inc., et al. v. McKesson Corporation, et al., CV-13-02219 (HG). True Health Chiropractic later amended its complaint, adding McLaughlin Chiropractic Associates as an additional named plaintiff and McKesson Technologies Inc. as a defendant. On August 22, 2016, the court denied plaintiffs’ motion for class certification. On November 18, 2016, plaintiffs were granted leave to appeal that ruling to the United States Court of Appeals for the Ninth Circuit. Oral argument was heard on the appeal, which has been fully briefed, on October 17, 2017. Separately, in the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”), certain third parties challenged the Federal Communications Commission’s (“FCC”) authority to require opt-out language on solicited faxes. Simultaneously, other third parties challenged the FCC’s authority to grant waivers, like those granted to the Company, of opt-out language requirements on solicited faxes. On March 31, 2017, the D.C. Circuit vacated the FCC order requiring opt-out language on solicited faxes and dismissed as moot the challenge relating to waivers. On February 20, 2018, the United States Supreme Court denied a petition for certiorari seeking review of the D.C. Circuit’s ruling. On December 29, 2017, two investment funds holding shares in Celesio AG filed a complaint against McKesson Europe Holdings (formerly known as “Dragonfly GmbH & Co KGaA”), a wholly-owned subsidiary of the Company, in a German court in Stuttgart, Germany, Polygon European Equity Opportunity Master Fund et al. v. McKesson Europe Holdings GmbH & Co. KGaA, No. 18 O 455/17 (the “Polygon” matter). The complaint alleges that the public tender offer document published by McKesson Europe in its acquisition of Celesio AG incorrectly stated that McKesson Europe’s acquisition of convertible bonds would not be treated as a relevant acquisition of shares for the purposes of triggering minimum pricing considerations under Section 4 of the German Takeover Offer Ordinance. On December 30, 2017, four additional investment funds which allegedly entered into swap transactions regarding shares in Celesio AG that would have enabled them to decide whether to accept the takeover offer filed a substantively identical claim, Davidson Kempner International (BVI) Ltd. et al. v. McKesson Europe Holdings GmbH & Co. KGaA, No.16 O 475/17 (the “Davidson” matter). On March 9, 2018, McKesson Europe filed its statement of defense in the Polygon matter. On May 11, 2018, the court in the Polygon matter dismissed the claims against McKesson Europe. McKesson Europe filed its statement of defense in the Davidson matter on April 12, 2018. On June 17, 2014, U.S. Oncology Specialty, LP (“USOS”) was served with a fifth amended qui tam complaint filed in July 2008 in the United States District Court for the Eastern District of New York by a relator against USOS, among others, alleging that USOS solicited and received illegal “kickbacks” from Amgen in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Hanks v. Amgen, Inc., et al. , CV-08-03096 (SJ). Previously, the United States declined to intervene in the case as to all allegations and defendants except for Amgen. On August 1, 2014, USOS filed a motion to dismiss the claims pled against it and the hearing occurred on October 7, 2014. The court has not yet ruled on USOS’s motion. On January 26, 2016, the Company was served with an amended complaint filed in the Circuit Court of Boone County, West Virginia, by the State of West Virginia, including the Attorney General of West Virginia, alleging that since 2007, the Company has oversupplied controlled substances to West Virginia and failed to report suspicious orders of controlled substances in violation of the West Virginia Controlled Substances Act, the West Virginia Consumer and Protection Act, as well as common law claims for negligence, public nuisance and unjust enrichment, and seeking injunctive relief, monetary damages and civil penalties, all in unspecified amounts, State of West Virginia ex rel. Morrisey v. McKesson Corporation , Civil Action No.: 16-C-1. Following removal to the United States District Court for the Southern District of West Virginia (Civil Action No.: 2:16-cv-01772), the court remanded the matter to state court in January 2017. On July 7, 2017, the Company again removed the matter to the United States District Court for the Southern District of West Virginia (Civil Action No. 2:16-cv-03555.) On February 15, 2018, the court remanded the matter to state court. The trial of the matter is scheduled to begin on April 30, 2019. The Company’s motion for judgment on the pleadings is fully briefed. On May 2, 2017, the Company was served with a complaint filed in the District Court of the Cherokee Nation by the Cherokee Nation against the Company and five other defendants, alleging that the defendants oversupplied controlled substances to the Cherokee Nation in violation of the Cherokee National Unfair and Deceptive Practices Act, as well as common law claims for nuisance, negligence, unjust enrichment and civil conspiracy, and seeking injunctive relief, civil penalties, compensatory damages, restitution, punitive damages, and attorneys’ fees and costs, all in unspecified amounts, Cherokee Nation v. AmerisourceBergen, et al ., CV-2017-203. On June 8, 2017, the Company and the other defendants in this action filed suit in the United States District Court for the Northern District of Oklahoma, seeking a declaratory judgment that the Cherokee Nation District Court has no jurisdiction over the claims asserted by the Cherokee Nation in its suit, McKesson Corporation, et al. v. Todd Hembree, et al. , No.4:17-cv-00323. On January 9, 2018, the court granted the motion for preliminary injunction enjoining the defendants from taking any action in the case pending in the tribal court. On January 19, 2018, the Cherokee Nation refiled its suit against the Company and the five other original defendants in the district court of Sequoyah County, Oklahoma, The Cherokee Nation v. McKesson Corporation, et al. , Case no. CT-2081-11. On February 26, 2018, the Company and the other defendants removed this case to the United States District Court for the Eastern District of Oklahoma (Case No. 6:18-cv-00056). On March 1, 2018, the Cherokee Nation filed a motion to remand the matter to state court. The Company is also a defendant in many cases alleging claims related to the distribution of controlled substances to pharmacies, often together with other pharmaceutical wholesale distributors and pharmaceutical manufacturers and retail pharmacy chains named as defendants. The plaintiffs in these actions include state attorneys general, county and city municipalities, hospitals, Indian tribes, pension funds, and third-party payors. The Company has been served with 394 complaints filed in state and federal courts in Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin and Wyoming. Since December 5, 2017, nearly all the cases pending in federal district courts have been transferred to a multi-district litigation proceeding in the United States District Court for the Northern District of Ohio captions In re: National Prescription Opiate Litigation, Case No. 17-md-28-04. On April 11, 2018, the court issued a case management order setting forth a briefing schedule to resolve legal issues across several bellwether states and a discovery schedule and March 9, 2019 trial date for three Ohio cases, The County of Summit, Ohio v. Purdue Pharma L.P., et al. , Case No. 18-OP-45090 (N.D. Ohio); The County of Cuyahoga v. Purdue Pharma, L.P., et al. , Case No. 17-OP-45004 (N.D. Ohio); and City of Cleveland v. AmerisourceBergen Drug Corp., et al. , Case No. 18-OP-4532 (N.D. Ohio.) On April 3, 2017, Eli Inzlicht, a purported shareholder, filed a shareholder derivative complaint in the United States District Court for the Northern District of California against certain officers and directors of the Company and the Company as a nominal defendant, alleging violations of fiduciary duties relating to the Company’s previously disclosed agreement with the Drug Enforcement Administration (“DEA”) and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances, and seeking restitution and disgorgement of all profits, benefits and other compensation obtained by the defendants from the Company and attorneys’ fees, all in unspecified amounts, Inzlicht v. McKesson Corporation, et.al., No. 5:17-cv-01850. On July 26, 2017, Vladimir Gusinsky, as trustee for the Vladimir Gusinsky Living Trust, a purported shareholder, filed a shareholder derivative complaint in the same court based on similar allegations, Vladimir Gusinsky, as Trustee for the Vladimir Gusinsky Living Trust v. McKesson Corporation, et.al. , No. 5:17-cv-4248. On October 9, 2017, the court consolidated the two matters, In re McKesson Corporation Derivative Litigation , No. 4:17-cv-1850. On January 5, 2018, the defendants moved to dismiss the consolidated suit. On May 14, 2018, the court denied in part and granted in part the motions to dismiss. On October 17, 2017, Chaile Steinberg, a purported shareholder, filed a shareholder derivative complaint in the Delaware Court of Chancery against certain officers and directors of the Company and the Company as a nominal defendant, alleging violations of fiduciary duties relating to the Company’s previously disclosed agreement with the DEA and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances, and seeking damages and disgorgement of all profits, benefits and other compensation obtained by the defendants from the Company and attorneys’ fees, all in unspecified amounts, Steinberg v. McKesson Corporation, et.al. , No. 2017-0736. Three similar suits were thereafter filed by purported shareholders in the Court of Chancery of the State of Delaware, including Police & Fire Ret. Sys. of the City of Detroit v. McKesson Corporation, et al. , No. 2017-0803, Amalgamated Bank v. McKesson Corporation, et al. , No. 2017-0881, and Greene v. McKesson Corporation, et al. , No. 2018-0042. The court ordered that all four actions be consolidated, and the plaintiffs designated the complaint in the Steinberg action as the operative complaint. The consolidated matter is captioned In re McKesson Corporation Stockholder Derivative Litigation , No. 2017-0736. The defendants filed a motion to dismiss the complaint on January 18, 2018, and a hearing on that motion took place on March 7, 2018. On March 5, 2018, Rxc Acquisition Company (d/b/a RxCrossroads) was served with a qui tam complaint filed in July 2017 in the United States District Court for the Southern District of Illinois by a relator against Rxc Acquisition Company, among others, alleging that UCB, Inc., provided illegal “kickbacks” to providers, including nurse educator services and reimbursement assistance services provided through Rxc Acquisition Company, in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes. United States ex rel. CIMZNHCA, LLC v. UCB, Inc., et al. , No. 17-cv-00765. The complaint seeks treble damages, civil penalties, and further relief, all in unspecified amounts. The United States and the states named in the complaint have declined to intervene in the suit. The response of Rxc Acquisition Company is due on May 25, 2018. On April 3, 2018, a second amended qui tam complaint was filed in the United States District Court for the Eastern District of New York by a relator, purportedly on behalf of the United States, 30 states, the District of Columbia, and two cities against McKesson Corporation, McKesson Specialty Care Distribution Corporation, McKesson Specialty Distribution LLC, McKesson Specialty Care Distribution Joint Venture, L.P., Oncology Therapeutics Network Corporation, Oncology Therapeutics Network Joint Venture, L.P., US Oncology, Inc. and US Oncology Specialty, L.P., alleging that from 2001 through 2010 the defendants repackaged and sold single-dose syringes of oncology medications in a manner that violated the federal False Claims Act and various state and local false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Omni Healthcare Inc. v. McKesson Corporation, et al. , 12-CV-06440 (NG). On April 16, 2018, the United States filed a notice declining to intervene in the case. On May 9, 2018, the states filed a notice also declining to intervene in the case. II. Government Subpoenas and Investigations From time to time, the Company receives subpoenas or requests for information from various government agencies. The Company generally responds to such subpoenas and requests in a cooperative, thorough and timely manner. These responses sometimes require time and effort and can result in considerable costs being incurred by the Company. For example, in May 2017, the Company was served with a Civil Investigative Demand by the U.S. Attorney’s Office for the Eastern District of New York relating to the certification it obtained for a software product under the U.S. Department of Health and Human Services’ Electronic Health Record Incentive Program. Also in May 2017, the Company received a request for information from the U.S. Attorney’s Office for the Eastern District of Pennsylvania relating to the use of a Company pharmacy management software system to process partially-filled prescriptions. In September 2017, the Company received a request for information and documents from a group of approximately 40 state attorneys general related to an investigation into the factors contributing to the increasing number of opioid-related hospitalizations and deaths in the United States. The Company has also received civil investigative demands, subpoenas or requests for information from several other state attorneys general on the same issues. The Company is currently responding to these requests. Such subpoenas and requests also can lead to the assertion of claims or the commencement of civil or criminal legal proceedings against the Company and other members of the health care industry, as well as to settlements. In 2015, the Company recorded a pre-tax charge of $150 million relating to the Company’s previously disclosed agreement with the DEA and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances. In January 2017, the Company finalized the settlements and paid $150 million in cash. III. Environmental Matters Primarily as a result of the operation of the Company’s former chemical businesses, which were fully divested by 1987, the Company is involved in various matters pursuant to environmental laws and regulations. The Company has received claims and demands from governmental agencies relating to investigative and remedial actions purportedly required to address environmental conditions alleged to exist at five sites where it, or entities acquired by it, formerly conducted operations and the Company, by administrative order or otherwise, has agreed to take certain actions at those sites, including soil and groundwater remediation. Based on a determination by the Company’s environmental staff, in consultation with outside environmental specialists and counsel, the current estimate of the Company’s probable loss associated with the remediation costs for these five sites is $9.5 million , net of amounts anticipated from third parties. The $9.5 million is expected to be paid out between April 2018 and March 2048 . The Company’s estimated probable loss for these environmental matters has been entirely accrued for in the accompanying consolidated balance sheets. In addition, the Company has been designated as a Potentially Responsible Party (“PRP”) under the Superfund law for environmental assessment and cleanup costs as the result of its alleged disposal of hazardous substances at 14 sites. With respect to these sites, numerous other PRPs have similarly been designated and while the current state of the law potentially imposes joint and several liability upon PRPs, as a practical matter, costs of these sites are typically shared with other PRPs. At one of these sites, the United States Environmental Protection Agency has selected a preferred remedy with an estimated cost of approximately $1.38 billion . It is not certain at this point in time what proportion of this estimated liability will be borne by the Company or by the numerous other PRPs. Accordingly, the Company’s estimated probable loss at those 14 sites is approximately $21.6 million , which has been entirely accrued for in the accompanying consolidated balance sheets. However, it is possible that the ultimate costs of these matters may exceed or be less than the reserves. IV. Value Added Tax Assessments We operate in various countries outside the United States which collect value added taxes (“VAT”). The determination of the manner in which a VAT applies to our foreign operations is subject to varying interpretations arising from the complex nature of the tax laws. We have received assessments for VAT which are in various stages of appeal. We disagree with these assessments and believe that we have strong legal arguments to defend our tax positions. Certain VAT assessments relate to years covered by an indemnification agreement. Due to the complex nature of the tax laws, it is not possible to estimate the outcome of these matters. However, based on currently available information, we believe the ultimate outcome of these matters will not have a material adverse effect on our financial position, cash flows or results of operations. V. Other Matters The Company is involved in various other litigation, governmental proceedings and claims, not described above, that arise in the normal course of business. While it is not possible to determine the ultimate outcome or the duration of such litigation, governmental proceedings or claims, the Company believes, based on current knowledge and the advice of counsel, that such litigation, proceedings and claims will not have a material impact on the Company’s financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2018 | |
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 2017, the Company’s quarterly dividend was raised from $0.28 to $0.34 per common share for dividends declared on or after such date by the Board. Dividends were $1.30 per share in 2018 , $1.12 per share in 2017 and $1.08 per share in 2016 . 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 our stock price, corporate and regulatory requirements, restrictions under our 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) (4) Average Price Paid Per Share Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs Balance, March 31, 2015 $ — Shares repurchase plans authorized May 2015 500 October 2015 2,000 Shares repurchased 8.7 $ 173.64 (1,504 ) Balance, March 31, 2016 $ 996 Shares repurchase plans authorized October 2016 4,000 Shares repurchased 15.5 $ 141.16 (2,250 ) Balance, March 31, 2017 $ 2,746 Shares repurchased 10.5 $ 151.06 (3) (1,650 ) Balance, March 31, 2018 $ 1,096 (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. (2) All of the shares purchased were part of the publicly announced programs. (3) The average price paid per share computation includes the initial share settlement of 2.5 million shares from the March 2018 ASR program, of which the actual average price of shares will be determined at the termination of the program. (4) The number of shares purchased reflects rounding adjustments. During the last three years, our share repurchases were transacted through both open market transactions and ASR programs with third party financial institutions. In May and October 2015, the Board authorized the repurchase of up to $500 million and $2 billion of the Company’s common stock. In 2016, we repurchased 4.5 million of the Company’s shares for $854 million through open market transactions at an average price per share of $192.27 . In February 2016, we entered into an ASR program with a third-party financial institution to repurchase $650 million of the Company’s common stock. The ASR program was completed during the fourth quarter of 2016 and we repurchased 4.2 million shares at an average price per share of $154.04 . During 2016, we completed the May 2015 share repurchase authorization. At March 31, 2016, $1.0 billion remained available for future authorized repurchases of the Company’s common stock under the October 2015 authorization. In 2016, we retired 115.5 million or $7.8 billion of the Company’s treasury shares previously repurchased. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. In accordance with our accounting policy, we allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings. Accordingly, our retained earnings and additional paid-in capital were reduced by $6.4 billion and $1.5 billion during 2016. In October 2016, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock. In 2017, we repurchased 14.1 million of the Company’s shares for $2.0 billion through open market transactions at an average price per share of $140.96 . In March 2017, we entered into an ASR program with a third-party financial institution to repurchase $250 million of the Company’s common stock. As of March 31, 2017, we had received 1.4 million shares under this program. This ASR program was completed in April 2017 and we received 0.3 million additional shares. The total number of shares repurchased under this ASR program was 1.7 million shares at an average price per share of $143.19 . During 2017, we completed the October 2015 share repurchase authorization. The total authorization outstanding for repurchases of the Company’s common stock was $2.7 billion at March 31, 2017. In 2018, we 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, we 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, we 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, we received 2.5 million shares representing the initial number of shares due in March 2018 and an additional 0.5 million shares in April 2018 under the March 2018 ASR program. The total number of shares to be ultimately repurchased by the Company under the March 2018 ASR program will be determined at the completion of the program based on the average daily volume-weighted average price of the Company’s common stock during this program, less a discount. The program is anticipated to be completed 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 was increased to $5.1 billion . 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) 2018 2017 2016 Foreign currency translation adjustments: (1) Foreign currency translation adjustments arising during period, net of income tax expense (benefit) of nil, ($1) and ($23) (2) (3) $ 804 $ (644 ) $ 113 Reclassified to income statement, net of income tax expense of nil, nil and nil (4) — 20 — 804 (624 ) 113 Unrealized gains (losses) on net investment hedges (5) Unrealized gains (losses) on net investment hedges arising during period, net of income tax benefit of $95, $5 and nil (180 ) (8 ) — Reclassified to income statement, net of income tax expense of nil, nil and nil — — — (180 ) (8 ) — Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) on cash flow hedges arising during period, net of income tax benefit of $9, nil and nil (30 ) (19 ) 6 Reclassified to income statement, net of income tax expense of nil, nil and nil — — 3 (30 ) (19 ) 9 Changes in retirement-related benefit plans: Net actuarial gain (loss) and prior service credit (cost) arising during period, net of income tax expense (benefit) of $2, $4 and $13 (6) 25 (20 ) 23 Amortization of actuarial gain (loss), prior service cost and transition obligation, net of income tax expense (benefit) of $2, $4 and $18 (7) 5 9 30 Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil (15 ) 3 (3 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 15 (8 ) 50 Other Comprehensive Income (Loss), net of tax $ 609 $ (659 ) $ 172 (1) Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries into the Company’s reporting currency, U.S. dollars. (2) 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. The 2017 net foreign currency translation losses of $644 million were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2016 to March 31, 2017. (3) 2018 includes net foreign currency translation gains of $189 million and 2017 includes net foreign currency translation losses of $74 million attributable to noncontrolling and redeemable noncontrolling interests. (4) These net foreign currency losses were reclassified from accumulated other comprehensive income (loss) to discontinued operations within our consolidated statement of operations due to the sale of our Brazilian pharmaceutical distribution business. (5) 2018 and 2017 include foreign currency losses of $268 million and $13 million on the net investment hedges from the Euro and British pound sterling-denominated notes. (6) The net actuarial losses of $4 million and $5 million were attributable to noncontrolling and redeemable noncontrolling interests in 2018 and 2017. (7) 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. Accumulated Other Comprehensive Income (Loss) Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax Unrealized 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, 2016 $ (1,323 ) $ — $ (12 ) $ (226 ) $ (1,561 ) Other comprehensive income (loss) before reclassifications (644 ) (8 ) (19 ) (17 ) (688 ) Amounts reclassified to earnings 20 — — 9 29 Other comprehensive income (loss) $ (624 ) $ (8 ) $ (19 ) $ (8 ) $ (659 ) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (74 ) — — (5 ) (79 ) Other comprehensive income (loss) attributable to McKesson $ (550 ) $ (8 ) $ (19 ) $ (3 ) $ (580 ) Balance at March 31, 2017 $ (1,873 ) $ (8 ) $ (31 ) $ (229 ) $ (2,141 ) Other comprehensive income (loss) before reclassifications 804 (180 ) (30 ) 10 604 Amounts reclassified to earnings and other — — — 5 5 Other comprehensive income (loss) $ 804 $ (180 ) $ (30 ) $ 15 $ 609 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 189 — — (4 ) 185 Other comprehensive income (loss) attributable to McKesson $ 615 $ (180 ) $ (30 ) $ 19 $ 424 Balance at March 31, 2018 $ (1,258 ) $ (188 ) $ (61 ) $ (210 ) $ (1,717 ) |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | Related Party Balances and Transactions During the fourth quarter of 2018, a public benefit California foundation (“Foundation”) was established to provide opioid education to patients, caregivers, and providers, address policy issues, and increase patient access to life-saving treatments. Certain officers of the Company also serve as directors and officers of the Foundation. In March 2018, we made a pledge to the Foundation and incurred a pre-tax charitable contribution expense of $100 million ( $64 million after-tax) for 2018, which was recorded under the caption, “Selling, distribution and administrative expenses,” in the accompanying consolidated statement of operations. The Company had a pledge payable balance of $100 million to the Foundation as of March 31, 2018, which was included under the caption, “Other accrued liabilities,” in our consolidated balance sheet. The pledge is binding and enforceable and is expected to be paid in the first quarter of 2019. McKesson Europe has investments in pharmacies located across Europe that are accounted for under the equity method. McKesson Europe maintains distribution arrangements with these pharmacies for the sale of related goods and services under which revenues of $154 million , $112 million , and $112 million are included in our consolidated statements of operations for the years ended March 31, 2018 , 2017 and 2016 and receivables of $15 million and $12 million are included in our consolidated balance sheets as of March 31, 2018 and 2017 . Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange,” for information regarding related party balances and transactions with Change Healthcare. |
Sale-Leaseback
Sale-Leaseback | 12 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Sale-Leaseback | Sale-Leaseback During the fourth quarter of 2017, we completed a sale-leaseback transaction for our corporate headquarters building in San Francisco, California. The transaction resulted in net cash proceeds of $223 million and a pre-tax gain of $15 million , which represents the amount of total gain in excess of the present value of the minimum lease payments. Additionally, we deferred a pre-tax gain of $48 million ; such gain will be amortized on a straight-line basis over the lease term as a reduction to selling, distribution, and administrative expense in the accompanying consolidated statements of operations. Refer to Financial Note 22, “Lease Obligations,” for the future minimum lease payments associated with this sale-leaseback. |
Segments of Business
Segments of Business | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segments of Business | Segments of Business We report our operations in two reportable segments for 2018, 2017 and 2016: McKesson Distribution Solutions and McKesson Technology Solutions. The factors for determining the reportable segments included the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments using a number of measures, including operating profit before interest expense, income taxes and results from discontinued operations. Our Distribution Solutions segment distributes brand, generic, specialty, biosimilar and OTC pharmaceutical drugs and other healthcare-related products internationally and provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices. This segment also provides specialty pharmaceutical solutions for pharmaceutical manufacturers including offering multiple distribution channels and clinical trial access to our network of oncology physicians. It also provides medical-surgical supply distribution, logistics and other services to healthcare providers within the United States. Additionally, this segment operates retail pharmacy chains in Europe and Canada, and supports independent pharmacy networks within North America and Europe. It also supplies integrated pharmacy management systems, automated dispensing systems and related services to retail, outpatient, central fill, specialty and mail order pharmacies. Prior to March 2017, our McKesson Technology Solutions (“MTS”) segment delivered enterprise-wide clinical, patient care, financial, supply chain, strategic management software solutions, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations. On March 1, 2017, upon the closing of Healthcare Technology Net Asset Exchange, we contributed the majority of our MTS businesses to the newly formed joint venture, Change Healthcare. We retained our RHP and EIS businesses. Effective April 1, 2017, our RHP business was transitioned to the Distributions Solution segment. The EIS business was sold to a third party during 2018. Accordingly, the MTS segment only included our equity method investment in Change Healthcare at the end of 2018. Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” and Financial Note 5, “Divestitures,” for additional information about Change Healthcare and the sale of our EIS business. Corporate includes expenses associated with Corporate functions and projects, and the results of certain investments. Corporate expenses are allocated to operating segments to the extent that these items are directly attributable. Financial information relating to our reportable segments and reconciliations to the consolidated totals is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Revenues Distribution Solutions (1) North America pharmaceutical distribution and services $ 174,186 $ 164,832 $ 158,469 International pharmaceutical distribution and services 27,320 24,847 23,497 Medical-Surgical distribution and services 6,611 6,244 6,033 Total Distribution Solutions 208,117 195,923 187,999 Technology Solutions - products and services 240 2,610 2,885 Total Revenues $ 208,357 $ 198,533 $ 190,884 Operating profit Distribution Solutions (2) (3) $ 1,231 $ 3,361 $ 3,553 Technology Solutions (4) (23 ) $ 4,215 $ 519 Total 1,208 7,576 4,072 Corporate Expenses, Net (5) (564 ) $ (377 ) $ (469 ) Loss on Debt Extinguishment (122 ) — $ — Interest Expense (283 ) $ (308 ) $ (353 ) Income From Continuing Operations Before Income Taxes $ 239 $ 6,891 $ 3,250 Depreciation and amortization (6) Distribution Solutions $ 831 $ 735 $ 669 Technology Solutions 9 65 107 Corporate 111 110 109 Total $ 951 $ 910 $ 885 Expenditures for long-lived assets (7) Distribution Solutions $ 306 $ 276 $ 306 Technology Solutions — 30 15 Corporate 99 98 167 Total $ 405 $ 404 $ 488 Revenues, net by geographic area (8) United States $ 169,943 $ 164,428 $ 158,255 Foreign 38,414 34,105 32,629 Total $ 208,357 $ 198,533 $ 190,884 (1) Revenues derived from services represent less than 2% of this segment’s total revenues. (2) Distribution Solutions segment’s operating profit for 2018 includes non-cash pre-tax goodwill impairment charges of $1,283 million for our McKesson Europe reporting unit and $455 million for our Rexall Health reporting unit. This segment’s operating profit for 2018 also includes non-cash pre-tax asset impairment charges of $446 million and pre-tax restructuring charges of $74 million for our McKesson Europe business. Operating profit for 2017 and 2016 includes $144 million and $76 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits, and for 2016 also includes a pre-tax gain of $52 million recognized from the sale of our ZEE Medical business. (3) Distribution Solutions segment’s operating profit for 2018 and 2017 includes pre-tax credits of $99 million and $7 million and for 2016 a pre-tax charge of $244 million related to our LIFO method of accounting for inventories. LIFO credits were higher in 2018 compared to 2017 due to higher net effect of price declines, partially offset by lower inventory level. LIFO expense was recognized in 2016 primarily due to net effects of price increases. (4) Technology Solutions segment’s operating profit for 2018 includes a pre-tax gain of $109 million from the 2018 third quarter sale of our EIS business. Operating profit for 2017 includes a pre-tax gain of $3,947 million recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses and a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit. Operating profit for 2016 includes a pre-tax gain of $51 million recognized from the sale of our nurse triage business. (5) In 2016, the Company implemented the Cost Alignment Plan to reduce its operating expenses and recorded pre-tax restructuring charges of $229 million . Pre-tax charges for 2016 were recorded as follows: $161 million , $51 million and $17 million within our Distribution Solutions segment, Technology Solutions segment and Corporate. (6) Amounts primarily include amortization of acquired intangible assets purchased in connection with business acquisitions, capitalized software held for sale and capitalized software for internal use. (7) Long-lived assets consist of property, plant and equipment. (8) Net revenues were attributed to geographic areas based on the customers’ shipment locations. Segment assets and property, plant and equipment, net by geographic areas were as follows: March 31, (In millions) 2018 2017 Segment assets Distribution Solutions $ 53,915 $ 52,322 Technology Solutions 3,735 4,995 Corporate 2,731 3,652 Total $ 60,381 $ 60,969 Property, plant and equipment, net United States $ 1,529 $ 1,383 Foreign 935 909 Total $ 2,464 $ 2,292 Assets by operating segment are not reviewed by management for the purpose of assessing performance or allocating resources. As previously disclosed in our Quarterly Reports on Form 10-Q for the quarters ended September 30, 2017 and December 31, 2017, the executive who was our segment manager of the Distribution Solutions segment retired from the Company in January 2018. As a result, the Company’s chief operating decision maker (“CODM”) evaluated our management and operating structure. In connection with the completion of this evaluation in the first quarter of 2019, our operating structure is realigned, and we will report our financial results in three reportable segments on a retrospective basis commencing in the first quarter of 2019, as follows: • U.S. Pharmaceutical and Specialty Solutions; • European Pharmaceutical Solutions; and • Medical-Surgical Solutions. All remaining operating segments and business activities that are not significant enough to require separate reportable segment disclosure will be included in Other. Other will primarily consist of McKesson Canada, McKesson Prescription Technology Solutions and our equity method investment in Change Healthcare. The segment changes reflect how our CODM allocates resources and assesses performance commencing in the first quarter of 2019. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The quarterly results of operations are not necessarily indicative of the results that may be expected for the entire year. Selected quarterly financial information for the last two years is as follows: (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Revenues $ 51,051 $ 52,061 $ 53,617 $ 51,628 Gross profit (1) 2,560 2,834 2,715 3,075 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) $ 363 $ 56 $ 960 $ (1,087 ) Discontinued operations 2 — 1 2 Net income (loss) $ 365 $ 56 $ 961 $ (1,085 ) Net income (loss) attributable to McKesson $ 309 $ 1 $ 903 $ (1,146 ) Earnings (loss) per common share attributable to McKesson (6) Diluted (7) Continuing operations $ 1.44 $ 0.01 $ 4.32 $ (5.58 ) Discontinued operations 0.01 — 0.01 — Total $ 1.45 $ 0.01 $ 4.33 $ (5.58 ) Basic Continuing operations $ 1.46 $ 0.01 $ 4.34 $ (5.58 ) Discontinued operations — — 0.01 — Total $ 1.46 $ 0.01 $ 4.35 $ (5.58 ) (1) Gross profit for the first, second, third and fourth quarters of 2018 includes pre-tax charge of $26 million , pre-tax credits of $29 million , $2 million and $94 million related to our last-in-first-out (“LIFO”) method of accounting for inventories. (2) Financial results for the second and fourth quarter of 2018 include non-cash goodwill impairment charges (pre-tax and after-tax) of $350 million and $933 million for our McKesson Europe reporting unit. In addition, financial results for the fourth quarter of 2018 include a non-cash goodwill impairment charge of $455 million for our Rexall Health reporting unit. These charges were recorded within our Distribution Solutions segment. (3) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax asset impairment charges of $189 million and $257 million for our McKesson Europe business. (4) Financial results for the third quarter of 2018 include a pre-tax gain of $109 million from the sale of our EIS business. (5) Financial results for the first, second, third and fourth quarters of 2018 include our proportionate share of loss from Change Healthcare of $120 million , $61 million , $90 million and income of $23 million . (6) Certain computations may reflect rounding adjustments. (7) As a result of our reported net loss for the fourth quarter of 2018, potentially dilutive securities were excluded from the 2018 fourth quarter per share computations due to their antidilutive effect. (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Revenues $ 49,733 $ 49,957 $ 50,130 $ 48,713 Gross profit (1) (2) (3) 2,907 2,756 2,812 2,796 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) $ 673 $ 325 $ 649 $ 3,630 Discontinued operations (113 ) (1 ) (3 ) (7 ) Net income $ 560 $ 324 $ 646 $ 3,623 Net income attributable to McKesson $ 542 $ 307 $ 633 $ 3,588 Earnings (loss) per common share attributable to McKesson (5) Diluted Continuing operations $ 2.88 $ 1.35 $ 2.86 $ 16.79 Discontinued operations (0.50 ) (0.01 ) (0.01 ) (0.03 ) Total $ 2.38 $ 1.34 $ 2.85 $ 16.76 Basic Continuing operations $ 2.91 $ 1.36 $ 2.89 $ 16.95 Discontinued operations (0.50 ) — (0.02 ) (0.03 ) Total $ 2.41 $ 1.36 $ 2.87 $ 16.92 (1) Gross profit for the first, second, third and fourth quarters of 2017 includes pre-tax charge of $47 million , pre-tax credits of $43 million , $155 million and pre-tax charge of $144 million related to our LIFO method of accounting for inventories. (2) Gross profit for the first and third quarters of 2017 includes $142 million and $2 million of cash proceeds representing our share of net settlements of antitrust class action lawsuits. (3) Financial results for the fourth quarter of 2017 include a pre-tax gain of $3,947 million ( $3,018 million after-tax) recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses. (4) Financial results for the second quarter of 2017 include a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit within our Technology Solutions segment. (5) Certain computations may reflect rounding adjustments. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 25, 2018, the Company announced a multi-year strategic growth initiative. As part of the preliminary phase of this initiative, in April 2018, we committed to a restructuring plan to optimize our operating model and cost structure which will be substantially implemented by the end of 2019. We expect to record total after-tax charges of approximately $150 million to $210 million during 2019. The charges under this plan primarily consist of employee severance, exit-related costs and other charges. On April 25, 2018, we entered into a definitive agreement to purchase Medical Specialties Distributors LLC (“MSD”) for $800 million , which will be funded from cash on hand. MSD is a leading national distributor of infusion and medical-surgical supplies as well as provider of biomedical services to alternate site and home health providers. The acquisition is subject to regulatory approval and expected to close during the first half of 2019. Upon closing, the financial results of MSD will be included in our consolidated statements of operations within our Medical-Surgical Solutions business. On May 23, 2018, the Company’s Board of Directors approved the termination of our frozen U.S. defined benefit pension plan (“Plan”). The distribution of plan assets pursuant to the termination will not be made until the plan termination satisfies all regulatory requirements, which is expected to be completed by the second half of 2020. Plan participants will receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The plan termination is expected to result in a one-time expense primarily representing pension settlement, which will be determined based on prevailing market conditions, the actual lump sum distributions and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate timing nor the amount of such settlement charges. As of March 31, 2018, this defined benefit pension plan had an accumulated comprehensive loss of approximately $120 million . |
SUPPLEMENTARY CONSOLIDATED FINA
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2018 | |
Valuation and Qualifying Accounts [Abstract] | |
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS | SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS For the Years Ended March 31, 2018 , 2017 and 2016 (In millions) Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (3) Deductions From Allowance Accounts (1) Balance at End of Year (2) Year Ended March 31, 2018 Allowances for doubtful accounts $ 243 $ 44 $ 13 $ (113 ) $ 187 Other allowances 42 — (3 ) — 39 $ 285 $ 44 $ 10 $ (113 ) $ 226 Year Ended March 31, 2017 Allowances for doubtful accounts $ 212 $ 93 $ 7 $ (69 ) $ 243 Other allowances 41 — 2 (1 ) 42 $ 253 $ 93 $ 9 $ (70 ) $ 285 Year Ended March 31, 2016 Allowances for doubtful accounts $ 141 $ 113 $ 2 $ (44 ) $ 212 Other allowances 33 — (3 ) 11 41 $ 174 $ 113 $ (1 ) $ (33 ) $ 253 2018 2017 2016 (1) Deductions: Written off $ (113 ) $ (70 ) $ (33 ) Credited to other accounts — — — Total $ (113 ) $ (70 ) $ (33 ) (2) Amounts shown as deductions from current and non-current receivables $ 226 $ 285 $ 253 (3) Primarily represents reclassifications from other balance sheet accounts. |
Significant Accounting Polici40
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The consolidated financial statements and accompanying notes are prepared in accordance with U. S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of McKesson include the financial statements of all wholly-owned subsidiaries and majority-owned or controlled companies. For those consolidated subsidiaries where our ownership is less than 100% , the portion of the net income or loss allocable to the noncontrolling interests is reported as “Net Income Attributable to Noncontrolling Interests” on the consolidated statements of operations. Intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. We consider ourselves to control an entity if we are the majority owner of or have voting control over such entity. We also assess control through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business entity is the primary beneficiary of the VIE. We consolidate VIEs when it is determined that we are the primary beneficiary of the VIE. |
Fiscal Period | Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. |
Reclassifications | Reclassifications : Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates : The preparation of financial statements in conformity with U.S. GAAP requires that we make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual amounts could differ from those estimated amounts. |
Cash and Cash Equivalents | Cash and Cash Equivalents : All highly liquid debt and money market instruments purchased with original maturity of three months or less at the date of acquisition are included in cash and cash equivalents. Cash equivalents are carried at fair value. Cash equivalents are primarily invested in AAA rated prime and U.S. government money market funds denominated in U.S. dollars, overnight repurchase agreements collateralized by U.S. government securities, Canadian government securities and/or securities that are guaranteed or sponsored by the U.S. government and an AAA rated prime money market fund denominated in British pound sterling. The remaining cash and cash equivalents are deposited with several financial institutions. Deposits may exceed the amounts insured by the Federal Deposit Insurance Corporation in the U.S. and similar deposit insurance programs in other jurisdictions. We mitigate the risk of our short-term investment portfolio by depositing funds with reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. |
Restricted Cash | Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Prepaid expenses and other” and “Other Noncurrent Assets” in the consolidated balance sheets. |
Marketable Securities Available-for-Sale | Marketable Securities Available-for-Sale : Our marketable securities, which are available-for-sale, are carried at fair value and are included within “Prepaid expenses and other” in the consolidated balance sheets. The unrealized gains and losses, net of the related tax effect, computed in marking these securities to market have been reported within stockholders’ equity. At March 31, 2018 and 2017 , marketable securities were not material. In determining whether an other-than-temporary decline in market value has occurred, we consider the duration that, and extent to which, the fair value of the investment is below its cost, the financial condition and future prospects of the issuer or underlying collateral of a security, and our intent and ability to retain the security in order to allow for an anticipated recovery in fair value. Other-than-temporary declines in fair value from amortized cost for available-for-sale equity securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income, net, in the period in which the loss occurs. |
Equity Method Investments | Equity Method Investments: Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. We evaluate our equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” for further information relating to our equity method investment in Change Healthcare, LLC (“Change Healthcare”). |
Concentrations of Credit Risk and Receivables | Concentrations of Credit Risk and Receivables: Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our Distribution Solutions segment. During 2018 , sales to our ten largest customers, including group purchasing organizations (“GPOs”) accounted for approximately 51.7% of our total consolidated revenues. Sales to our largest customer, CVS Health (“CVS”), accounted for approximately 19.9% of our total consolidated revenues. At March 31, 2018 , trade accounts receivable from our ten largest customers were approximately 24.9% of total trade accounts receivable. Accounts receivable from CVS were approximately 16.4% of total trade accounts receivable. As a result, our sales and credit concentration is significant. We also have agreements with GPOs, each of which functions as a purchasing agent on behalf of member hospitals, pharmacies and other healthcare providers, as well as with government entities and agencies. The accounts receivables balances are with individual members of the GPOs, and therefore no significant concentration of credit risk exists. A default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers in the institutional, retail and healthcare provider sectors, which can be affected by a downturn in the economy and changes in reimbursement policies. This credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers. An allowance is recorded in our consolidated financial statements for these estimated amounts. |
Financing Receivables | Financing Receivables: We assess and monitor credit risk associated with financing receivables, primarily lease and notes receivables, through regular review of our collection experience in determining our allowance for loan losses. On an ongoing basis, we also evaluate credit quality of our financing receivables utilizing aging of receivables and write-offs, as well as considering existing economic conditions, to determine if an allowance is required. Financing receivables are derecognized if legal title to them has been transferred and all related risks and rewards incidental to ownership have passed to the buyer. |
Inventories | Inventories: Prior to 2018, we reported inventories at the lower of cost or market (“LCM”). Effective in the first quarter of 2018, we report inventories at the lower of cost or net realizable value, except for inventories determined using the last-in, first-out (“LIFO”) method. Inventories for our Distribution Solutions segment consist of merchandise held for resale. For our Distribution Solutions segment, the majority of the cost of domestic inventories is determined using the LIFO method. The majority of the cost of inventories held in foreign locations is based on weighted average purchase prices using the first-in, first-out method (“FIFO”). Rebates, cash discounts, and other incentives received from vendors are recognized within cost of sales upon the sale of the related inventory. The LIFO method was used to value approximately 63% and 70% of our inventories at March 31, 2018 and 2017 . If we had used the FIFO method of inventory valuation, inventories would have been approximately $906 million and $1,005 million higher than the amounts reported at March 31, 2018 and 2017 . These amounts are equivalent to our LIFO reserves. Our LIFO valuation amount includes both pharmaceutical and non-pharmaceutical products. We recognized LIFO credits of $99 million and $7 million in 2018 and 2017 and net LIFO charges of $244 million in 2016 in cost of sales within our consolidated statements of operations. A LIFO charge is recognized when the net effect of price increases on pharmaceutical and non-pharmaceutical products held in inventory exceeds the impact of price declines, including the effect of branded pharmaceutical products that have lost market exclusivity. A LIFO credit is recognized when the net effect of price declines exceeds the impact of price increases on pharmaceutical and non-pharmaceutical products held in inventory. We believe that the average inventory costing method provides a reasonable estimation of the current cost of replacing inventory (i.e., “market”). As such, our LIFO inventory is valued at the lower of LIFO cost or market. |
Shipping and Handling Costs | Shipping and Handling Costs: We include costs to pack and deliver inventory to our customers in selling, distribution and administrative expenses. |
Property, Plant and Equipment | Property, Plant and Equipment: We state our property, plant and equipment (“PPE”) at cost and depreciate them under the straight-line method at rates designed to distribute the cost of PPE over estimated service lives ranging from one to thirty years. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. |
Goodwill | Goodwill: Goodwill is tested for impairment on an annual basis in the fourth quarter or more frequently if indicators of potential impairment exist. Impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or a component, one level below our Distribution Solutions and Technology Solutions operating segments, for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The goodwill testing requires us to compare the estimated fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit is lower than its estimated fair value, no further evaluation is required. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded for that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we use a combination of the market approach and the income approach. Under the market approach, we estimate fair value by comparing the business to similar businesses or guideline companies whose securities are actively traded in public markets. Under the income approach, we use a discounted cash flow (“DCF”) model in which cash flows anticipated over future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate expected rate of return. The fair value estimates in the goodwill impairment analysis are highly sensitive to the discount rates used in the expected cash flows attributable to the reporting units. The discount rates are the weighted average cost of capital measuring the reporting unit’s cost of debt and equity financing weighted by the percentage of debt and percentage of equity in a company’s target capital. Other estimates inherent in both the market and income approaches include long-term growth rates, projected revenues, earnings and cash flow forecasts for the reporting units. In addition, we compare the aggregate of the reporting units’ fair value to the Company’s market capitalization as a further corroboration of the fair values. Goodwill testing requires a complex series of assumptions and judgments by management in projecting future operating results, selecting guideline companies for comparisons and assessing risks. The use of alternative assumptions and estimates could affect the fair values and change the impairment determinations. |
Intangible Assets | Intangible Assets: Currently all of our intangible assets are subject to amortization and are amortized based on the pattern of their economic consumption or on a straight-line basis over their estimated useful lives, ranging from one to 38 years. We review intangible assets for impairment at an asset group level whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its estimated fair market value. |
Capitalized Software Held for Internal Use | Capitalized Software Held for Internal Use: We capitalize costs of software held for internal use during the application development stage of a project and amortize those costs over their estimated useful lives ranging from one to ten years. |
Insurance Programs | Insurance Programs: Under our insurance programs, we seek to obtain coverage for catastrophic exposures as well as those risks required to be insured by law or contract. It is our policy to retain a significant portion of certain losses primarily related to workers’ compensation and comprehensive general, product and vehicle liability. Provisions for losses expected under these programs are recorded based on our estimate of the aggregate liability for claims incurred as well as for claims incurred but not yet reported. Such estimates utilize certain actuarial assumptions followed in the insurance industry. |
Revenue Recognition | Revenue Recognition: Distribution Solutions Revenues for our Distribution Solutions segment are recognized when persuasive evidence of an arrangement exists, product is delivered and title passes to the customer or when services have been rendered and there are no further obligations to the customer, the price is fixed or determinable, and collection of the amounts are reasonably assured. Revenues for our Distribution Solutions segment include large volume sales of pharmaceuticals primarily to a limited number of large customers who warehouse their own products. We order bulk product from the manufacturer, receive and process the product primarily through our central distribution facilities and deliver the bulk product (generally in the same form as received from the manufacturer) directly to our customers’ warehouses. We also record revenues for direct store deliveries of shipments from the manufacturer to our customers. We assume the primary liability to the manufacturer for these products. Revenues are recorded gross when we are the primary party obligated in the transaction, take title to and possession of the inventory, are subject to inventory risk, have latitude in establishing prices, assume the risk of loss for collection from customers as well as delivery or return of the product, are responsible for fulfillment and other customer service requirements, or the transactions have several but not all of these indicators. Revenues are recorded net of sales returns, allowances, rebates and other incentives. Our sales return policy generally allows customers to return products only if they can be resold for value or returned to suppliers for credit. Sales returns are accrued based on estimates at the time of sale to the customer. Sales returns from customers were approximately $3.1 billion in 2018 , 2017 and 2016 . We collect taxes from customers and remit to governmental authorities. We report all revenues net of taxes assessed by governmental authorities. This segment also provides software as a service (“SaaS”) and claims processing. Revenues for SaaS-based subscription and transaction processing fees are recognized ratably over the contract terms. Technology Solutions Revenues for our Technology Solutions segment are generated primarily by licensing software and software systems consisting of software, hardware and maintenance support, providing SaaS or SaaS-based solutions, outsourcing and professional services. Revenue for this segment is recognized as follows: Software systems are marketed under information systems agreements as well as service agreements. Perpetual software arrangements are recognized at the time of delivery or under the percentage-of-completion method if the arrangements require significant production, modification or customization of the software. Contracts accounted for under the percentage-of-completion method are generally measured based on the ratio of labor hours incurred to date to total estimated labor hours to be incurred. Changes in estimates to complete and revisions in overall profit estimates on these contracts are charged to earnings in the period in which they are determined. We accrue for contract losses if and when the current estimate of total contract costs exceeds total contract revenue. Revenue from time-based software license agreements is recognized ratably over the term of the agreement. Software implementation fees are recognized as the work is performed or under the percentage-of-completion method. Maintenance and support agreements are marketed under annual or multi-year agreements and are recognized ratably over the period covered by the agreements. Hardware revenues are generally recognized upon delivery. SaaS-based subscription, content and transaction processing fees are generally marketed under annual and multi-year agreements and are recognized ratably over the contracted terms beginning on the service start date for fixed fee arrangements and recognized as transactions are performed beginning on the service start date for per-transaction fee arrangements. Remote processing service fees are recognized monthly as the service is performed. Outsourcing service revenues are recognized as the service is performed. We also offer certain products on an application service provider basis, making our software functionality available on a remote hosting basis from our data centers. The data centers provide system and administrative support, as well as hosting services. Revenue on products sold on an application service provider basis is recognized on a monthly basis over the term of the contract beginning on the service start date of products hosted. This segment engages in multiple-element arrangements, which may contain any combination of software, hardware, implementation, SaaS-based offerings, consulting services or maintenance services. For multiple-element arrangements that do not include software, revenue is allocated to the separate elements based on their relative selling price and recognized in accordance with the revenue recognition criteria applicable to each element. Relative selling price is determined based on vendor-specific objective evidence (“VSOE”) of selling price if available, third-party evidence (“TPE”), if VSOE of selling price is not available, or estimated selling price (“ESP”) if neither VSOE of selling price nor TPE is available. For multiple-element arrangements accounted for in accordance with specific software accounting guidance when some elements are delivered prior to others in an arrangement and VSOE of fair value exists for the undelivered elements, revenue for the delivered elements is recognized upon delivery of such items. The segment establishes VSOE for hardware and implementation and consulting services based on the price charged when sold separately, and for maintenance services, based on renewal rates offered to customers. Revenue for the software element is recognized under the residual method only when fair value has been established for all of the undelivered elements in an arrangement. If fair value cannot be established for any undelivered element, all of the arrangement’s revenue is deferred until the delivery of the last element or until the fair value of the undelivered element is determinable. For multiple-element arrangements with both software and nonsoftware elements, arrangement consideration is allocated between the software elements as a whole and nonsoftware elements. The segment then further allocates consideration to the individual elements within the software group, and revenue is recognized for all elements under the applicable accounting guidance and our policies described above. |
Supplier Incentives | Supplier Incentives: Fees for services and other incentives received from suppliers, relating to the purchase or distribution of inventory, are generally reported as a reduction to cost of sales. We consider these fees and other incentives to represent product discounts and as a result, the amounts are recognized within cost of sales upon the sale of the related inventory. |
Supplier Reserves | Supplier Reserves: We establish reserves against amounts due from suppliers relating to various fees for services and price and rebate incentives, including deductions taken against payments otherwise due to them. These reserve estimates are established based on judgment after considering the status of current outstanding claims, historical experience with the suppliers, the specific incentive programs and any other pertinent information available. We evaluate the amounts due from suppliers on a continual basis and adjust the reserve estimates when appropriate based on changes in facts and circumstances. Adjustments to supplier reserves are generally included within cost of sales. The ultimate outcome of any outstanding claims may be different than our estimate. |
Income Taxes | Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or the tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon effective settlement. Deferred taxes are not provided on undistributed earnings of our foreign operations that are considered to be permanently reinvested. |
Foreign Currency Translation | Foreign Currency Translation: The reporting currency of the Company and its subsidiaries is the U.S. dollar. Our foreign subsidiaries generally consider their local currency to be their functional currency. Foreign currency-denominated assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at period-end exchange rates, revenues and expenses are translated at average exchange rates during the corresponding period and stockholders’ equity accounts are primarily translated at historical exchange rates. Foreign currency translation adjustments are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in the consolidated statements of operations and were not material to our consolidated results of operations in 2018 , 2017 or 2016 . We release cumulative translation adjustments from stockholders’ equity into net income as a gain or loss only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. We also release all or a pro rata portion of the cumulative translation adjustments into net income upon the sale of an equity method investment that is a foreign entity. |
Derivative Financial Instruments | Derivative Financial Instruments: Derivative financial instruments are used principally in the management of foreign currency exchange and interest rate exposures and are recorded on the consolidated balance sheets at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized as a charge or credit to earnings. We use foreign currency-denominated notes and cross-currency swaps to hedge a portion of our net investment in our foreign subsidiaries. We use cash flow hedges primarily to reduce the effects of foreign currency exchange rate risk related to intercompany loans denominated in non-functional currencies. If the financial instrument is designated as a cash flow hedge or net investment hedge, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of operations when the hedged item affects earnings. We evaluate hedge effectiveness at the inception and on an ongoing basis, and ineffective portions of changes in the fair value of cash flow hedges and net investment hedges are recognized as a charge or credit to earnings. In the fourth quarter of 2018, we adopted amended guidance for derivatives and hedging which eliminates the existing requirement to recognize periodic hedge ineffectiveness in earnings for cash flow hedges and net investment hedges that are highly effective. The adoption had no material impact on our financial statements as there was no ineffectiveness recognized on our cash flow hedges or net investment hedges prior to adoption. Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change included in earnings. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. Our other comprehensive income primarily consists of foreign currency translation adjustments from those subsidiaries where the local currency is the functional currency including gains and losses on net investment hedges, unrealized gains and losses on cash flow hedges, as well as unrealized gains and losses on retirement-related benefit plans. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests: Noncontrolling interests represent the portion of profit or loss, net assets and comprehensive income that is not allocable to McKesson Corporation. In 2018, 2017 and 2016, net income attributable to noncontrolling interests included recurring compensation that McKesson is obligated to pay to the noncontrolling shareholders of McKesson Europe AG (“McKesson Europe”), formerly known as Celesio AG, under the domination and profit and loss transfer agreement. In 2018 and 2017, net income attributable to noncontrolling interests also included third-party equity interests in our consolidated entities including Vantage Oncology Holdings, LLC (“Vantage”) and ClarusONE Sourcing Services LLP (“ClarusONE”), which was established between McKesson and Walmart, Inc in 2017. Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on our consolidated balance sheets. Refer to Financial Note 11, “Redeemable Noncontrolling Interests and Noncontrolling Interests,” for more information. |
Share-Based Compensation | Share-Based Compensation: We account for all share-based compensation transactions using a fair-value based measurement method. The share-based compensation expense, for the portion of the awards that is ultimately expected to vest, is recognized on a straight-line basis over the requisite service period. The share-based compensation expense recognized has been classified in the consolidated statements of operations or capitalized on the consolidated balance sheets in the same manner as cash compensation paid to our employees. |
Loss Contingencies | Loss Contingencies: We are subject to various claims, including claims with customers and vendors, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate the loss or a range of possible loss. When a material loss is probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. Disclosure is also provided when it is reasonably possible that a material loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or a range of the loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Such factors bear directly on whether it is possible to reasonably estimate a range of potential loss and boundaries of a high and low estimate. |
Restructuring Charges | Restructuring Charges : Employee severance costs are generally recognized when payments are probable and amounts are estimable. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. |
Business Combinations | Business Combinations: We account for acquired businesses using the acquisition method of accounting, which requires that once control of a business is obtained, 100% of the assets acquired and liabilities assumed, including amounts attributable to noncontrolling interests, be recorded at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses and related integration and restructuring costs are expensed as incurred. Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use the income method. This method starts with a forecast of all of the expected future net cash flows for each asset. These cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. Some of the more significant estimates and assumptions inherent in the income method or other methods include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows and the assessment of the asset’s life cycle and the competitive trends impacting the asset, including consideration of any technical, legal, regulatory, or economic barriers to entry. Determining the useful life of an intangible asset also requires judgment as different types of intangible assets will have different useful lives and certain assets may even be considered to have indefinite useful lives. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Income Taxes: In the fourth quarter of 2018, we adopted amended guidance as issued by SEC staff in December 2017 which provides clarification for entities that may not have completed their accounting in the period of enactment for the income tax effects of the 2017 Tax Cut and Jobs Act ("2017 Tax Act"), which for us was the third quarter of 2018. The amended guidance provides a provisional one-year measurement period for entities to finalize their accounting for the income tax effects. Under the amended guidance, we are required to reflect the income tax effects in the enactment period of those aspects of the 2017 Tax Act for which the accounting is complete. We are required to record a provisional estimate in our consolidated financial statements if the accounting for certain aspects of the 2017 Tax Act are incomplete provided that the effects are reasonably determinable. Such provisional amounts are subject to further adjustments during the measurement period until the accounting for the income tax effects is finalized. If the effects of the 2017 Tax Act are not reasonably determinable, we would continue to apply the accounting guidance that was in effect immediately before the 2017 Tax Act’s enactment date until the provisional amounts become reasonably estimable. The SEC staff guidance also requires additional disclosures when the accounting related to the 2017 Tax Act is not complete. Refer to Financial Note 10, “Income Taxes,” for more information regarding the impact of this amended guidance on our consolidated financial statements. Derivatives and Hedging: In the fourth quarter of 2018, we elected to early adopt amended guidance for derivatives and hedging on a modified retrospective basis. The amended guidance was issued to improve the accounting for hedging activities and to better align an entity’s risk management activities and financial reporting for hedging relationships. The amended guidance, among other provisions, eliminates the existing requirement to recognize periodic hedge ineffectiveness in earnings for cash flow hedges and net investment hedges that are highly effective and requires that all items that affect earnings be classified in the same income statement line as the hedged item. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Goodwill Impairment Testing: In the second quarter of 2018, we elected to adopt amended guidance which simplifies goodwill impairment testing by eliminating the second step of the impairment test. The amended guidance requires an impairment charge to be recognized for the amount by which the carrying amount of a reporting unit exceeds its fair value under a one-step impairment test. Refer to Financial Note 3, “Goodwill Impairment Charges” for more information. Investments: In the first quarter of 2018, we adopted amended guidance for the equity method of accounting. The amended guidance simplifies the transition to the equity method of accounting. This standard eliminates the requirement that when an existing cost method investment qualifies for use of the equity method, an investor must restate its historical financial statements, as if the equity method had been used during all previous periods. Additionally, at the point an investment qualifies for the equity method, any unrealized gain or loss in accumulated other comprehensive income (loss) will be recognized through earnings. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Derivatives and Hedging: In the first quarter of 2018, we adopted amended guidance for derivative instrument novations. The amendments clarify that a novation, a change in the counterparty, to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided all other hedge accounting criteria continue to be met. The adoption of this amended guidance did not have an effect on our consolidated financial statements. Consolidation: In the first quarter of 2018, we adopted amended guidance for VIEs. The amended guidance requires a single decision maker of a VIE to consider indirect economic interests in the entity held through related parties that are under common control on a proportionate basis when determining whether it is the primary beneficiary of that VIE. This amendment does not change the existing characteristics of a primary beneficiary. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Inventories: In the first quarter of 2018, we adopted amended guidance for the subsequent measurement of inventory. The amended guidance requires entities to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The requirement replaced the lower of cost or market evaluation previously applied. Accounting guidance is unchanged for inventory measured using the LIFO or the retail method. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Share-Based Payments : In the first quarter of 2017, we adopted amended guidance for employee share-based payment awards. Under the amended guidance, all excess tax benefits (“windfalls”) and deficiencies (“shortfalls”) related to employee share-based compensation arrangements are recognized within income tax expense. Under the previous guidance, windfalls were recognized in additional paid-in capital (“APIC”) and shortfalls were only recognized to the extent they exceeded the pool of windfall tax benefits. The amended guidance also requires excess tax benefits to be classified as an operating activity in the statement of cash flows, rather than a financing activity. The primary impact of the adoption was the recognition of excess tax benefits in the income statement on a prospective basis, rather than APIC. As a result, discrete tax benefits of $54 million were recognized in income tax expense in 2017. We also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of 2017. None of the other provisions in this amended guidance had a material impact on our consolidated financial statements. Business Combinations: In the first quarter of 2017, we adopted amended guidance for an acquirer’s accounting for measurement-period adjustments. The amended guidance eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively and instead requires that measurement-period adjustments be recognized during the period in which it determines the adjustment. In addition, the amended guidance requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Fair Value Measurement: In the first quarter of 2017, we adopted amended fair value guidance on a retrospective basis. This amended guidance limits disclosures and removes the requirement to categorize investments within the fair value hierarchy if the fair value of the investment is measured using the net asset value (“NAV”) per share practical expedient. The amended guidance primarily affected our fiscal 2017 annual disclosures related to our pension benefits. Refer to Financial Note 18, “Pension Benefits,” for more information regarding the impact of this amended guidance on our pension benefits. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Fees Paid in a Cloud Computing Arrangement : In the first quarter of 2017, we adopted amended guidance for a customer’s accounting for fees paid in a cloud computing arrangement. The amended guidance requires customers to determine whether or not an arrangement contains a software license element. If the arrangement contains a software license element, the related fees paid should be accounted for as an acquisition of a software license. If the arrangement does not contain a software license, it is accounted for as a service contract. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Debt Issuance Costs : In the first quarter of 2017, we adopted amended guidance for the balance sheet presentation of debt issuance costs on a retrospective basis. The amended guidance requires debt issuance costs related to a recognized debt liability to be reported on the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amended guidance. In August 2015, a clarification was added to this amended guidance that debt issuance costs related to line-of-credit arrangements can continue to be deferred and presented as an asset on the balance sheet. Upon adoption, unamortized debt issuance costs of $40 million were reclassified primarily from other noncurrent assets to long-term debt at March 31, 2016. Consolidation: In the first quarter of 2017, we adopted amended guidance for consolidating legal entities in which a reporting entity holds a variable interest. The amended guidance modifies the evaluation of whether limited partnerships and similar legal entities are VIEs and changes the consolidation analysis of reporting entities that are involved with VIEs that have fee arrangements and related party relationships. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Discontinued Operations: In the first quarter of 2016, we adopted amended guidance for reporting of discontinued operations and disclosures of disposals of components. The amended guidance revises the criteria for disposals to qualify as discontinued operations and permits significant continuing involvement and continuing cash flows with the discontinued operation. In addition, the amended guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. Refer to Financial Note 7, “Discontinued Operations,” for more information regarding the impact of this amended guidance on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Accumulated Other Comprehensive Income: In February 2018, amended guidance was issued to address a narrow-scope financial reporting issue that arose as a consequence of the 2017 Tax Act. Existing guidance requires that deferred tax liabilities and assets be adjusted for a change in tax laws with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income rather in net income, such as amounts related to benefit plans and hedging activity. As a result, the tax effects of items within accumulated other comprehensive income do not reflect the appropriate tax rate. This difference is referred to as stranded tax effects. The amended guidance allows for a reclassification of only those amounts related to the 2017 Tax Act to retained earnings thereby eliminating the stranded tax effects. The amended guidance also requires certain disclosures about stranded tax effects. The amended guidance is effective for us beginning in the first quarter of 2020 on a prospective or retrospective basis. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Share-Based Payments: In May 2017, amended guidance was issued for employee share-based payment awards. This amendment provides guidance on which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the amended guidance, we are required to account for the effects of a modification if the fair value, the vesting conditions or the classification (as an equity instrument or a liability instrument) of the modified award change from that of the original award immediately before the modification. The amended guidance is effective for us commencing in the first quarter of 2019 on a prospective basis. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Premium Amortization of Purchased Callable Debt Securities: In March 2017, amended guidance was issued to shorten the amortization period for certain callable debt securities held at a premium. The amended guidance requires the premium of callable debt securities to be amortized to the earliest call date but does not require an accounting change for securities held at a discount as they would still be amortized to maturity. The amended guidance is effective for us on a modified retrospective basis commencing in the first quarter of 2020. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Compensation - Retirement Benefits : In March 2017, amended guidance was issued which requires us to report the service cost component of defined benefit pension plans and other postretirement plans in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net benefit cost are required to be presented in the statements of operations separately from the service cost component outside of operating income. This amended guidance is effective for us in the first quarter of 2019 on a retrospective basis. Early adoption is permitted. We expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. This amended guidance is expected to only result in a change in presentation of other components of net benefit costs on our consolidated statement of operations (a reclassification from operating income to other income, net). Derecognition of Nonfinancial Assets: In February 2017, amended guidance was issued that defines the term “in substance nonfinancial asset” as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the asset that is promised is concentrated in nonfinancial assets. The scope of this amendment includes nonfinancial assets transferred within a legal entity including a parent entity’s transfer of nonfinancial assets by transferring ownership interests in consolidated subsidiaries. The amendment excludes all businesses and nonprofit activities from its scope and therefore all entities, with limited exceptions, are required to account for the derecognition of a business or nonprofit activity in accordance with the consolidation guidance once this amended guidance becomes effective. We are required to apply this amended guidance at the same time we apply the amended revenue guidance in the first quarter of 2019. It allows for either full retrospective or modified retrospective adoption. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Business Combinations: In January 2017, amended guidance was issued to clarify the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amended guidance provides a practical screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amended guidance requires that to be considered a business, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The amended guidance is effective for us commencing in the first quarter of 2019 on a prospective basis. Early adoption is permitted in certain circumstances. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Restricted Cash: In November 2016, amended guidance was issued that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. Transfers between cash and cash equivalents and restricted cash or restricted cash equivalents are not reported as cash flow activities in the statement of cash flows. The amended guidance is effective for us commencing in the first quarter of 2019 on a retrospective basis. Early adoption is permitted. We expect the adoption of this amended guidance to have no effect on our consolidated statements of operations, comprehensive income or our consolidated balance sheets. This amended guidance is expected to only result in a change in presentation of restricted cash and restricted cash equivalents on our consolidated statement of cash flows. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, amended guidance was issued to require entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amended guidance is effective for us commencing in the first quarter of 2019 on a modified retrospective basis. Upon adoption of this amended guidance in the first quarter of 2019, we anticipate recording approximately $130 million to $160 million of deferred tax assets with a corresponding cumulative-effect increase to the beginning balance of retained earnings in our consolidated financial statements for the tax consequences relating to an intra-entity transfer of certain software. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments: In August 2016, amended guidance was issued to provide clarification on cash flow classification related to eight specific issues including contingent consideration payments made after a business combination and distributions received from equity method investees. The amended guidance is effective for us commencing in the first quarter of 2019 on a retrospective basis. Early adoption is permitted. We intend to make policy elections within the amended standard that are consistent with our current classification. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Financial Instruments - Credit Losses: In June 2016, amended guidance was issued, which will change the impairment model for most financial assets and require additional disclosures. The amended guidance requires financial assets that are measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of financial assets. The amended guidance also requires us to consider historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount in estimating credit losses. The amended guidance becomes effective for us commencing in the first quarter of 2021 and will be applied through a cumulative-effect adjustment to the beginning retained earnings in the year of adoption. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Leases: In February 2016, amended guidance was issued for lease arrangements. The amended guidance will require lessees to recognize assets and liabilities on the balance sheet for all leases with terms longer than 12 months and provide enhanced disclosures on key information of leasing arrangements. The amended guidance is effective for us commencing in the first quarter of 2020. Early adoption is permitted. We plan to adopt the amended guidance on the effective date and expect that the adoption of the amended lease guidance will materially affect our consolidated balance sheet and will require certain changes to our systems and processes. Financial Instruments: In January 2016, amended guidance was issued that requires equity investments to be measured at fair value with changes in fair value recognized in net income and enhanced disclosures about those investments. This guidance also simplifies the impairment assessments of equity investments without readily determinable fair value. The investments that are accounted for under the equity method of accounting or result in consolidation of the investee are excluded from the scope of this amended guidance. The amended guidance will become effective for us commencing in the first quarter of 2019 and will be applied through a cumulative-effect adjustment. Early adoption is not permitted except for certain provisions. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Revenue Recognition: In May 2014, amended guidance was issued for recognizing revenue from contracts with customers. Under the amended guidance, revenues will be recognized when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled for that good or service. The amended guidance also requires additional quantitative and qualitative disclosures. Additional amendments were also issued subsequently, including clarifications on principal versus agent considerations, performance obligations, and certain scope improvements and practical expedients. The amended guidance is effective for us commencing in the first quarter of 2019. We will adopt this amended guidance on a modified retrospective basis in our first quarter of 2019. Our equity method investee, Change Healthcare, will adopt the amended guidance in our first quarter of 2020. Change Healthcare is currently evaluating the adoption impact. We continue to make progress on our evaluation of the adoption impact including a review of the amended guidance as compared to our current accounting policies and customer contract reviews. We substantially completed our assessment during the fourth quarter of 2018. Our revenue is primarily generated from sales of pharmaceutical products, which will continue to be recognized when goods are transferred to the customer. We have substantially similar performance obligations under the amended guidance as compared with deliverables and units of account currently being recognized. Accordingly, we generally anticipate that the timing of recognition of distribution revenue will be substantially unchanged under the amended guidance. Upon adoption of this amended guidance, we expect to recognize an immaterial adjustment to retained earnings reflecting the cumulative impact for estimated variable consideration, subject to the constraint. |
Restructuring and Asset Impai41
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of details for charges recorded | Restructuring charges for our Cost Alignment Plan for the year ended March 31, 2016 consisted of the following: (In millions) Distribution Solutions Technology Solutions Corporate Total Severance and employee-related costs, net (1) $ 147 $ 44 $ 16 $ 207 Exit-related costs 3 1 1 5 Asset impairments and accelerated depreciation and amortization (2) 11 6 — 17 Total $ 161 $ 51 $ 17 $ 229 Cost of Sales $ 5 $ 21 $ — $ 26 Operating Expenses 156 30 17 203 Total $ 161 $ 51 $ 17 $ 229 (1) Severance and employee-related costs, net, include charges of $117 million and $90 million , for a total of $207 million , for a reduction in workforce and business process initiatives. (2) Asset impairments and accelerated depreciation and amortization charges primarily include impairments for capitalized software projects and software licenses due to abandonments. |
Summary of activity related to the restructuring liabilities | The following table summarizes the activity related to the restructuring liabilities associated with the Cost Alignment Plan for the years ended March 31, 2018 and 2017: (In millions) Distribution Solutions Technology Solutions Corporate Total Balance, March 31, 2016 $ 156 $ 45 $ 21 $ 222 Net restructuring charges recognized 19 (10 ) 5 14 Non-cash charges (10 ) — 1 (9 ) Cash payments (67 ) (20 ) (19 ) (106 ) Other (8 ) (5 ) (2 ) (15 ) Balance, March 31, 2017 (1) $ 90 $ 10 $ 6 $ 106 Net restructuring charges recognized 13 — — 13 Non-cash charges — — — — Cash payments (36 ) (4 ) (5 ) (45 ) Other (3 ) (6 ) 4 (5 ) Balance, March 31, 2018 (2) $ 64 $ — $ 5 $ 69 (1) The reserve balance as of March 31, 2017 includes $71 million recorded in other accrued liabilities and $35 million recorded in other noncurrent liabilities on our consolidated balance sheet. (2) The reserve balance as of March 31, 2018 includes $39 million recorded in other accrued liabilities and $30 million recorded in other noncurrent liabilities on our consolidated balance sheet. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Fair Values Recognized of Assets and Liabilities Assumed | The following table summarizes the final amounts of the fair values recognized for the assets acquired and liabilities assumed for these two acquisitions as of the acquisition date as well as adjustments made during the measurement period: (In millions) Amounts Previously Recognized as of Acquisition Date (Provisional) (1) Measurement Period Adjustments Amounts Recognized as of Acquisition Date Receivables $ 106 $ (5 ) $ 101 Other current assets, net of cash and cash equivalents acquired 19 — 19 Goodwill 1,219 (87 ) 1,132 Intangible assets 136 79 215 Other long-term assets 76 54 130 Current liabilities (117 ) (15 ) (132 ) Other long-term liabilities (80 ) (89 ) (169 ) Fair value of net assets, less cash and cash equivalents 1,359 (63 ) 1,296 Less: Noncontrolling Interests (152 ) 63 (89 ) Net assets acquired, net of cash and cash equivalents $ 1,207 $ — $ 1,207 (1) As reported on Form 10-Q for the quarter ended June 30, 2016. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of components of share-based compensation expense and related tax benefits | The components of share-based compensation expense and related tax benefits are as follows: Years Ended March 31, (In millions) 2018 2017 2016 Restricted stock unit awards (1) $ 46 $ 79 $ 88 Stock options 14 24 22 Employee stock purchase plan 9 12 13 Share-based compensation expense (2) 69 115 123 Tax benefit for share-based compensation expense (3) (28 ) (92 ) (41 ) Share-based compensation expense, net of tax $ 41 $ 23 $ 82 (1) Includes compensation expense recognized for RSUs, PeRSUs and TSRUs. Our TSRUs were awarded beginning in 2015. (2) 2016 includes non-cash credits of $14 million representing the reversal of previously recognized share-based compensation expense, which was recorded due to employee terminations associated with the March 2016 Cost Alignment Plan. (3) Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of pre-tax compensation expense is not tax-deductible. Income tax expense for 2018 and 2017 included discrete income tax benefits of $8 million and $54 million related to the adoption of the amended accounting guidance on share-based compensation. |
Schedule of weighted-average assumptions used to estimate the fair value | The weighted-average assumptions used to estimate the fair value of TSRUs are as follows: Years Ended March 31, 2018 2017 2016 Expected stock price volatility 29% 23% 18% Expected dividend yield 0.8% 0.7% 0.4% Risk-free interest rate 1.5% 1.1% 0.9% Expected life (in years) 3 3 3 Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: Years Ended March 31, 2018 2017 2016 Expected stock price volatility 25% 21% 21% Expected dividend yield 0.8% 0.7% 0.4% Risk-free interest rate 1.7% 1.1% 1.4% Expected life (in years) 4.5 4 4 |
Summary of options outstanding | The following is a summary of stock options outstanding at March 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at Year End (In millions) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Exercisable at Year End (In millions) Weighted- Average Exercise Price $ 76.55 – $ 158.24 1 2 $ 108.17 1 $ 106.05 158.25 – 239.93 2 4 190.18 1 199.13 3 2 |
Summary of stock option activity | The following table summarizes stock option activity during 2018 : (In millions, except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) Outstanding, March 31, 2017 4 $ 145.76 4 $ 97 Granted 1 157.45 Cancelled (1) 180.79 Exercised (1) 86.95 Outstanding, March 31, 2018 3 $ 161.27 4 $ 36 Vested and expected to vest (1) 3 $ 160.28 4 $ 35 Vested and exercisable, March 31, 2018 2 147.76 2 35 (1) The number of options expected to vest takes into account an estimate of expected forfeitures. (2) The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options. |
Summary of data related to stock option activity | The following table provides data related to stock option activity: Years Ended March 31, (In millions, except per share data) 2018 2017 2016 Weighted-average grant date fair value per stock option $ 34.24 $ 32.19 $ 44.04 Aggregate intrinsic value on exercise $ 60 $ 97 $ 107 Cash received upon exercise $ 77 $ 54 $ 47 Tax benefits realized related to exercise $ 22 $ 38 $ 42 Total fair value of stock options vested $ 20 $ 18 $ 18 Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax $ 15 $ 21 $ 20 Weighted-average period in years over which stock option compensation cost is expected to be recognized 2 2 2 |
Summary of restricted stock unit award activity | The following table summarizes activity for restricted stock unit awards (RSUs, PeRSUs, and TSRUs) during 2018 : (In millions, except per share data) Shares Weighted- Average Grant Date Fair Value Per Share Nonvested, March 31, 2017 2 $ 188.54 Granted 1 159.49 Vested (1) 172.02 Nonvested, March 31, 2018 2 $ 176.74 |
Schedule of data related to restricted stock unit award activity | The following table provides data related to restricted stock unit award activity: Years Ended March 31, (In millions) 2018 2017 2016 Total fair value of shares vested $ 156 $ 109 $ 104 Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax $ 97 $ 99 $ 144 Weighted-average period in years over which restricted stock unit award cost is expected to be recognized 2 2 2 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of other income, net | Years Ended March 31, (In millions) 2018 2017 2016 Interest income $ 48 $ 29 $ 18 Equity in earnings, net (1) 32 30 15 Gain from sale of equity method investment (2) 43 — — Other, net (1) 7 31 25 Total $ 130 $ 90 $ 58 (1) Primarily recorded within our Distribution Solutions segment. (2) Amount represented a pre-tax gain from the sale of an equity method investment from our Distribution Solutions segment to a third party during the second quarter of 2018. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes | Years Ended March 31, (In millions) 2018 2017 2016 Income from continuing operations before income taxes U.S. $ 1,175 $ 5,772 $ 2,319 Foreign (936 ) 1,119 931 Total income from continuing operations before income taxes $ 239 $ 6,891 $ 3,250 |
Schedule of income tax expense related to continuing operations | Income tax expense related to continuing operations consists of the following: Years Ended March 31, (In millions) 2018 2017 2016 Current Federal $ 577 $ 524 $ 658 State 33 86 96 Foreign 205 122 90 Total current 815 732 844 Deferred Federal (767 ) 767 95 State 17 164 42 Foreign (118 ) (49 ) (73 ) Total deferred (868 ) 882 64 Income tax (benefit) expense $ (53 ) $ 1,614 $ 908 |
Schedule of reconciliation between effective tax rate on income from continuing operations and statutory tax rate | The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 31.6% for 2018 and 35% for 2017 and 2016 to the income before income taxes is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Income tax expense at federal statutory rate $ 75 $ 2,411 $ 1,137 State income taxes net of federal tax benefit 50 153 92 Tax effect of foreign operations (146 ) (326 ) (295 ) Unrecognized tax benefits and settlements 454 57 (14 ) Non-deductible goodwill 585 106 — Share-based compensation (8 ) (54 ) — Net tax benefit on intellectual property transfer (178 ) (137 ) — Rate differential on gain from Change Healthcare Net Asset Exchange — (587 ) — Remeasurement of U.S. deferred taxes (1,324 ) — — Transition tax on foreign earnings 457 — — Other, net (1) (18 ) (9 ) (12 ) Income tax (benefit) expense $ (53 ) $ 1,614 $ 908 (1) Our 2018 effective tax rate was impacted by other favorable U.S. federal permanent differences including research and development credits of $11 million . |
Schedule of deferred tax balances | Deferred tax balances consisted of the following: March 31, (In millions) 2018 2017 Assets Receivable allowances $ 58 $ 124 Compensation and benefit related accruals 345 593 Net operating loss and credit carryforwards 811 594 Long-term contractual obligations 59 107 Other 279 241 Subtotal 1,552 1,659 Less: valuation allowance (751 ) (503 ) Total assets 801 1,156 Liabilities Inventory valuation and other assets (1,869 ) (2,818 ) Fixed assets and systems development costs (158 ) (224 ) Intangibles (644 ) (921 ) Change Healthcare Equity Investment (814 ) (773 ) Other (71 ) (70 ) Total liabilities (3,556 ) (4,806 ) Net deferred tax liability $ (2,755 ) $ (3,650 ) Long-term deferred tax asset 49 28 Long-term deferred tax liability (2,804 ) (3,678 ) Net deferred tax liability $ (2,755 ) $ (3,650 ) |
Schedule of gross unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years: Years Ended March 31, (In millions) 2018 2017 2016 Unrecognized tax benefits at beginning of period $ 486 $ 555 $ 616 Additions based on tax positions related to prior years 47 7 116 Reductions based on tax positions related to prior years (124 ) (67 ) (62 ) Additions based on tax positions related to current year 778 105 28 Reductions based on settlements (7 ) (113 ) (141 ) Reductions based on the lapse of the applicable statutes of limitations — — (6 ) Exchange rate fluctuations 3 (1 ) 4 Unrecognized tax benefits at end of period $ 1,183 $ 486 $ 555 |
Redeemable Noncontrolling Int46
Redeemable Noncontrolling Interests and Noncontrolling Interests (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Changes in Noncontrolling Interest | Changes in redeemable noncontrolling interests and noncontrolling interests for the years ended March 31, 2018 and 2017 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2016 $ 84 $ 1,406 Net income attributable to noncontrolling interests 39 44 Other comprehensive loss — (78 ) Reclassification of recurring compensation to other accrued liabilities — (44 ) Purchases of noncontrolling interests (1) 89 — Other (34 ) (1 ) Balance, March 31, 2017 $ 178 $ 1,327 Net income attributable to noncontrolling interests 187 43 Other comprehensive income — 185 Reclassification of recurring compensation to other accrued liabilities — (43 ) Payments to noncontrolling interests (98 ) — Exercises of Put Right — (53 ) Other (14 ) — Balance, March 31, 2018 $ 253 $ 1,459 (1) Represents the fair value of noncontrolling interests we purchased related to our 2016 acquisition of Vantage. Refer to Financial Note 6, “Business Combinations,” for more information. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | The computations for basic and diluted earnings per common share are as follows: Years Ended March 31, (In millions, except per share amounts) 2018 2017 2016 Income from continuing operations $ 292 $ 5,277 $ 2,342 Net income attributable to noncontrolling interests (230 ) (83 ) (52 ) Income from continuing operations attributable to McKesson 62 5,194 2,290 Income (Loss) from discontinued operations, net of tax 5 (124 ) (32 ) Net income attributable to McKesson $ 67 $ 5,070 $ 2,258 Weighted average common shares outstanding: Basic 208 221 230 Effect of dilutive securities: Options to purchase common stock — 1 1 Restricted stock units 1 1 2 Diluted 209 223 233 Earnings (loss) per common share attributable to McKesson: (1) Diluted Continuing operations $ 0.30 $ 23.28 $ 9.84 Discontinued operations 0.02 (0.55 ) (0.14 ) Total $ 0.32 $ 22.73 $ 9.70 Basic Continuing operations $ 0.30 $ 23.50 $ 9.96 Discontinued operations 0.02 (0.55 ) (0.14 ) Total $ 0.32 $ 22.95 $ 9.82 (1) Certain computations may reflect rounding adjustments. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Receivables, Net, Current [Abstract] | |
Schedule of receivables | March 31, (In millions) 2018 2017 Customer accounts $ 14,349 $ 14,602 Other 3,578 3,893 Total 17,927 18,495 Allowances (216 ) (280 ) Net $ 17,711 $ 18,215 |
Property, Plant and Equipment49
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property, plant and equipment, net | March 31, (In millions) 2018 2017 Land $ 187 $ 166 Building, machinery, equipment and other 3,746 3,637 Total property, plant and equipment 3,933 3,803 Accumulated depreciation (1,469 ) (1,511 ) Property, plant and equipment, net $ 2,464 $ 2,292 |
Goodwill and Intangible Asset50
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows: (In millions) Distribution Solutions Technology Solutions Total Balance, March 31, 2016 $ 7,987 $ 1,799 $ 9,786 Goodwill acquired 2,836 22 2,858 Acquisition accounting, transfers and other adjustments (146 ) 1 (145 ) Goodwill impairment — (290 ) (290 ) Amount reclassified to assets held for sale (165 ) — (165 ) Goodwill disposed (1) (30 ) (1,078 ) (1,108 ) Foreign currency translation adjustments, net (350 ) — (350 ) Balance, March 31, 2017 $ 10,132 $ 454 $ 10,586 Goodwill acquired 1,707 — 1,707 Acquisition accounting, transfers and other adjustments (2) 369 (330 ) 39 Goodwill impairment (3) (1,738 ) — (1,738 ) Goodwill disposed (1) (48 ) (124 ) (172 ) Amount reclassified to assets held for sale (2 ) — (2 ) Foreign currency translation adjustments, net 504 — 504 Balance, March 31, 2018 $ 10,924 $ — $ 10,924 (1) 2017 Technology Solutions segment amount represents goodwill disposal associated with Healthcare Technology Net Asset Exchange transaction. Refer to Financial Note 2, “Healthcare Technology Net Asset Exchange” for more information. 2018 Technology Solutions segment amount represents goodwill disposal associated with the sale of our EIS business. Refer to Financial Note 5, “Divestitures” for more information. (2) Effective April 1, 2017, our RHP business was transferred from the Technology Solutions segment to the Distribution Solutions segment. (3) In 2018, goodwill impairment charges from our international businesses were translated at average exchange rates during the corresponding period and accumulated goodwill impairment losses described below were translated at year-end exchange rates. |
Schedule of information regarding intangible assets | Information regarding intangible assets is as follows: March 31, 2018 March 31, 2017 (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 12 $ 3,619 $ (1,550 ) $ 2,069 $ 2,893 $ (1,295 ) $ 1,598 Service agreements 12 1,037 (386 ) 651 1,009 (316 ) 693 Pharmacy licenses 26 684 (196 ) 488 741 (150 ) 591 Trademarks and trade names 14 932 (187 ) 745 845 (124 ) 721 Technology 4 147 (84 ) 63 69 (64 ) 5 Other 4 262 (176 ) 86 201 (144 ) 57 Total $ 6,681 $ (2,579 ) $ 4,102 $ 5,758 $ (2,093 ) $ 3,665 |
Debt and Financing Activities (
Debt and Financing Activities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: March 31, (In millions) 2018 2017 U.S. Dollar notes (1) (2) 1.40% Notes due March 15, 2018 $ — $ 500 7.50% Notes due February 15, 2019 — 350 2.28% Notes due March 15, 2019 1,100 1,100 4.75% Notes due March 1, 2021 323 599 2.70% Notes due December 15, 2022 400 400 2.85% Notes due March 15, 2023 400 400 3.80% Notes due March 15, 2024 1,100 1,100 7.65% Debentures due March 1, 2027 167 175 3.95% Notes due February 16, 2028 600 — 6.00% Notes due March 1, 2041 282 493 4.88% Notes due March 15, 2044 411 800 Foreign currency notes (1) (3) 4.50% Euro Bonds due April 26, 2017 — 533 Floating Rate Euro Notes due February 12, 2020 (4) 337 — 0.63% Euro Notes due August 17, 2021 695 638 1.50% Euro Notes due November 17, 2025 691 635 1.63% Euro Notes due October 30, 2026 669 — 3.13% Sterling Notes due February 17, 2029 630 564 Lease and other obligations 75 75 Total debt 7,880 8,362 Less: Current portion 1,129 1,057 Total long-term debt $ 6,751 $ 7,305 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semiannually. (3) Interest on these foreign bonds and notes is payable annually, except the 2020 Floating Rate Euro Notes. (4) Interest on these notes is payable quarterly. |
Pension Benefits (Tables)
Pension Benefits (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic expense for pension plans | The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 3 $ 5 $ 4 $ 15 $ 15 $ 20 Interest cost on projected benefit obligation 14 13 18 22 23 24 Expected return on assets (19 ) (15 ) (19 ) (26 ) (26 ) (30 ) Amortization of unrecognized actuarial loss and prior service costs 6 11 42 5 4 3 Curtailment/settlement loss (gain) 2 — 2 1 (2 ) — Net periodic pension expense $ 6 $ 14 $ 47 $ 17 $ 14 $ 17 The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 4 Amortization of unrecognized actuarial gain and prior service credit (6 ) (1 ) — Net periodic postretirement (credit) expense $ (3 ) $ 2 $ 5 |
Schedule of changes in benefit obligations and plan assets for pension plans | Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2018 2017 Change in benefit obligations Benefit obligation at beginning of period (1) $ 513 $ 535 $ 943 $ 899 Service cost 3 5 15 15 Interest cost 14 13 22 23 Actuarial loss (gain) 1 (11 ) (15 ) 98 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Amendments — — (2 ) — Acquisitions — — — 37 Foreign exchange impact and other — — 115 (94 ) Benefit obligation at end of period (1) $ 485 $ 513 $ 1,035 $ 943 Change in plan assets Fair value of plan assets at beginning of period $ 293 $ 262 $ 623 $ 607 Actual return on plan assets 35 22 21 76 Employer and participant contributions 53 38 17 16 Benefits paid (44 ) (26 ) (42 ) (34 ) Expenses paid (2 ) (3 ) (1 ) (1 ) Acquisitions — — — 35 Foreign exchange impact and other — — 69 (76 ) Fair value of plan assets at end of period $ 335 $ 293 $ 687 $ 623 Funded status at end of period $ (150 ) $ (220 ) $ (348 ) $ (320 ) Amounts recognized on the balance sheet Assets $ 10 $ — $ 19 $ 4 Current liabilities (39 ) (17 ) (7 ) (7 ) Long-term liabilities (121 ) (203 ) (360 ) (317 ) Total $ (150 ) $ (220 ) $ (348 ) $ (320 ) (1) The benefit obligation is the projected benefit obligation. |
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans | The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans with an accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Projected benefit obligation $ 485 $ 513 $ 1,035 $ 943 Accumulated benefit obligation 485 513 990 902 Fair value of plan assets 335 293 687 623 |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2018 2017 2018 2017 Net actuarial loss $ 134 $ 157 $ 162 $ 160 Prior service credit — — (5 ) (3 ) Total $ 134 $ 157 $ 157 $ 157 |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Net actuarial loss (gain) $ (15 ) $ (17 ) $ 9 $ (11 ) $ 47 $ (38 ) Prior service credit — — — (2 ) — (5 ) Amortization of: Net actuarial loss (8 ) (11 ) (44 ) (6 ) (4 ) (5 ) Prior service credit (cost) — — — — 2 2 Foreign exchange impact and other — — — 19 (10 ) (1 ) Total recognized in other comprehensive loss (income) $ (23 ) $ (28 ) $ (35 ) $ — $ 35 $ (47 ) |
Schedule of weighted-average assumptions used to estimate net periodic pension expense and actuarial present value of benefit obligations | Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2018 2017 2016 2018 2017 2016 Net periodic pension expense Discount rates 3.55 % 3.40 % 3.36 % 2.34 % 2.72 % 2.36 % Rate of increase in compensation 4.00 4.00 4.00 2.72 2.76 2.80 Expected long-term rate of return on plan assets 6.25 6.25 6.75 4.03 4.51 4.87 Benefit obligation Discount rates 3.69 % 3.39 % 3.27 % 2.35 % 2.35 % 2.84 % Rate of increase in compensation N/A (1) 4.00 4.00 2.59 3.18 2.98 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. |
Summary of pension plan assets using fair value hierarchy by asset class | The following tables represent our pension plan assets as of March 31, 2018 and 2017 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 U.S. Plans Non-U.S. Plans March 31, 2017 March 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 $ — $ — $ 8 $ 2 $ — $ — $ 2 Equity securities: Common and preferred stock 17 — — 17 — — — — Equity commingled funds — — — — 13 40 — 53 Fixed income securities: Government securities — 27 — 27 24 68 — 92 Corporate bonds — 12 — 12 69 120 10 199 Mortgage-backed securities — 10 — 10 — — — — Asset-backed securities and other — 19 — 19 — — — — Fixed income commingled funds — — — — 20 29 — 49 Other: Real estate funds — — — — 2 — 6 8 Total $ 25 $ 68 $ — $ 93 $ 130 $ 257 $ 16 $ 403 Assets held at NAV practical expedient (1) Equity commingled funds 131 94 Fixed income commingled funds 59 53 Real estate funds 10 13 Other — 60 Total plan assets $ 293 $ 623 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic (credit) expense for postretirement welfare benefits | The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2018 2017 2016 2018 2017 2016 Service cost - benefits earned during the year $ 3 $ 5 $ 4 $ 15 $ 15 $ 20 Interest cost on projected benefit obligation 14 13 18 22 23 24 Expected return on assets (19 ) (15 ) (19 ) (26 ) (26 ) (30 ) Amortization of unrecognized actuarial loss and prior service costs 6 11 42 5 4 3 Curtailment/settlement loss (gain) 2 — 2 1 (2 ) — Net periodic pension expense $ 6 $ 14 $ 47 $ 17 $ 14 $ 17 The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 4 Amortization of unrecognized actuarial gain and prior service credit (6 ) (1 ) — Net periodic postretirement (credit) expense $ (3 ) $ 2 $ 5 |
Schedule of changes in benefit obligations for postretirement welfare plans | Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2018 2017 Benefit obligation at beginning of period $ 82 $ 98 Service cost 1 1 Interest cost 2 2 Actuarial gain (1 ) (13 ) Benefit payments (6 ) (6 ) Benefit obligation at end of period $ 78 $ 82 |
Hedging Activities (Tables)
Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information regarding fair value of derivatives on a gross basis | Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet Caption March 31, 2018 March 31, 2017 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ 15 $ — $ 81 $ 17 $ — $ 81 Foreign exchange contracts (non-current) Other Noncurrent Assets 14 — 81 32 — 162 Cross-currency swaps (current) Prepaid expenses and other/ Other Accrued Liabilities — 7 504 17 — 174 Cross-currency swaps (non-current) Other Noncurrent Assets/Liabilities — 222 3,508 90 — 2,489 Total $ 29 $ 229 $ 156 $ — Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ 13 $ 1 $ — $ 198 Foreign exchange contracts (current) Other accrued liabilities — — 16 — — 37 Total $ — $ — $ 1 $ — |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Leases, Operating [Abstract] | |
Schedule of future minimum rental payments for operating leases | At March 31, 2018 , future minimum lease payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year for years ending March 31 are: (In millions) Noncancelable Operating Leases 2019 $ 502 2020 443 2021 383 2022 333 2023 277 Thereafter 1,134 Total minimum lease payments (1) $ 3,072 (1) Amount includes future minimum lease payments for the sale-leaseback transaction of $62 million . Minimum lease payments have not been reduced by minimum sublease income of $147 million due under future noncancelable subleases. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of shares repurchased over last three years | 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) (4) Average Price Paid Per Share Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs Balance, March 31, 2015 $ — Shares repurchase plans authorized May 2015 500 October 2015 2,000 Shares repurchased 8.7 $ 173.64 (1,504 ) Balance, March 31, 2016 $ 996 Shares repurchase plans authorized October 2016 4,000 Shares repurchased 15.5 $ 141.16 (2,250 ) Balance, March 31, 2017 $ 2,746 Shares repurchased 10.5 $ 151.06 (3) (1,650 ) Balance, March 31, 2018 $ 1,096 (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. (2) All of the shares purchased were part of the publicly announced programs. (3) The average price paid per share computation includes the initial share settlement of 2.5 million shares from the March 2018 ASR program, of which the actual average price of shares will be determined at the termination of the program. (4) The number of shares purchased reflects rounding adjustments. |
Schedule of 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) 2018 2017 2016 Foreign currency translation adjustments: (1) Foreign currency translation adjustments arising during period, net of income tax expense (benefit) of nil, ($1) and ($23) (2) (3) $ 804 $ (644 ) $ 113 Reclassified to income statement, net of income tax expense of nil, nil and nil (4) — 20 — 804 (624 ) 113 Unrealized gains (losses) on net investment hedges (5) Unrealized gains (losses) on net investment hedges arising during period, net of income tax benefit of $95, $5 and nil (180 ) (8 ) — Reclassified to income statement, net of income tax expense of nil, nil and nil — — — (180 ) (8 ) — Unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) on cash flow hedges arising during period, net of income tax benefit of $9, nil and nil (30 ) (19 ) 6 Reclassified to income statement, net of income tax expense of nil, nil and nil — — 3 (30 ) (19 ) 9 Changes in retirement-related benefit plans: Net actuarial gain (loss) and prior service credit (cost) arising during period, net of income tax expense (benefit) of $2, $4 and $13 (6) 25 (20 ) 23 Amortization of actuarial gain (loss), prior service cost and transition obligation, net of income tax expense (benefit) of $2, $4 and $18 (7) 5 9 30 Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil (15 ) 3 (3 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 15 (8 ) 50 Other Comprehensive Income (Loss), net of tax $ 609 $ (659 ) $ 172 (1) Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries into the Company’s reporting currency, U.S. dollars. (2) 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. The 2017 net foreign currency translation losses of $644 million were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2016 to March 31, 2017. (3) 2018 includes net foreign currency translation gains of $189 million and 2017 includes net foreign currency translation losses of $74 million attributable to noncontrolling and redeemable noncontrolling interests. (4) These net foreign currency losses were reclassified from accumulated other comprehensive income (loss) to discontinued operations within our consolidated statement of operations due to the sale of our Brazilian pharmaceutical distribution business. (5) 2018 and 2017 include foreign currency losses of $268 million and $13 million on the net investment hedges from the Euro and British pound sterling-denominated notes. (6) The net actuarial losses of $4 million and $5 million were attributable to noncontrolling and redeemable noncontrolling interests in 2018 and 2017. (7) 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. |
Schedule of accumulated other comprehensive income (loss) | Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax Unrealized 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, 2016 $ (1,323 ) $ — $ (12 ) $ (226 ) $ (1,561 ) Other comprehensive income (loss) before reclassifications (644 ) (8 ) (19 ) (17 ) (688 ) Amounts reclassified to earnings 20 — — 9 29 Other comprehensive income (loss) $ (624 ) $ (8 ) $ (19 ) $ (8 ) $ (659 ) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (74 ) — — (5 ) (79 ) Other comprehensive income (loss) attributable to McKesson $ (550 ) $ (8 ) $ (19 ) $ (3 ) $ (580 ) Balance at March 31, 2017 $ (1,873 ) $ (8 ) $ (31 ) $ (229 ) $ (2,141 ) Other comprehensive income (loss) before reclassifications 804 (180 ) (30 ) 10 604 Amounts reclassified to earnings and other — — — 5 5 Other comprehensive income (loss) $ 804 $ (180 ) $ (30 ) $ 15 $ 609 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 189 — — (4 ) 185 Other comprehensive income (loss) attributable to McKesson $ 615 $ (180 ) $ (30 ) $ 19 $ 424 Balance at March 31, 2018 $ (1,258 ) $ (188 ) $ (61 ) $ (210 ) $ (1,717 ) |
Segments of Business (Tables)
Segments of Business (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Financial information relating to our reportable segments and reconciliations to the consolidated totals is as follows: Years Ended March 31, (In millions) 2018 2017 2016 Revenues Distribution Solutions (1) North America pharmaceutical distribution and services $ 174,186 $ 164,832 $ 158,469 International pharmaceutical distribution and services 27,320 24,847 23,497 Medical-Surgical distribution and services 6,611 6,244 6,033 Total Distribution Solutions 208,117 195,923 187,999 Technology Solutions - products and services 240 2,610 2,885 Total Revenues $ 208,357 $ 198,533 $ 190,884 Operating profit Distribution Solutions (2) (3) $ 1,231 $ 3,361 $ 3,553 Technology Solutions (4) (23 ) $ 4,215 $ 519 Total 1,208 7,576 4,072 Corporate Expenses, Net (5) (564 ) $ (377 ) $ (469 ) Loss on Debt Extinguishment (122 ) — $ — Interest Expense (283 ) $ (308 ) $ (353 ) Income From Continuing Operations Before Income Taxes $ 239 $ 6,891 $ 3,250 Depreciation and amortization (6) Distribution Solutions $ 831 $ 735 $ 669 Technology Solutions 9 65 107 Corporate 111 110 109 Total $ 951 $ 910 $ 885 Expenditures for long-lived assets (7) Distribution Solutions $ 306 $ 276 $ 306 Technology Solutions — 30 15 Corporate 99 98 167 Total $ 405 $ 404 $ 488 Revenues, net by geographic area (8) United States $ 169,943 $ 164,428 $ 158,255 Foreign 38,414 34,105 32,629 Total $ 208,357 $ 198,533 $ 190,884 (1) Revenues derived from services represent less than 2% of this segment’s total revenues. (2) Distribution Solutions segment’s operating profit for 2018 includes non-cash pre-tax goodwill impairment charges of $1,283 million for our McKesson Europe reporting unit and $455 million for our Rexall Health reporting unit. This segment’s operating profit for 2018 also includes non-cash pre-tax asset impairment charges of $446 million and pre-tax restructuring charges of $74 million for our McKesson Europe business. Operating profit for 2017 and 2016 includes $144 million and $76 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits, and for 2016 also includes a pre-tax gain of $52 million recognized from the sale of our ZEE Medical business. (3) Distribution Solutions segment’s operating profit for 2018 and 2017 includes pre-tax credits of $99 million and $7 million and for 2016 a pre-tax charge of $244 million related to our LIFO method of accounting for inventories. LIFO credits were higher in 2018 compared to 2017 due to higher net effect of price declines, partially offset by lower inventory level. LIFO expense was recognized in 2016 primarily due to net effects of price increases. (4) Technology Solutions segment’s operating profit for 2018 includes a pre-tax gain of $109 million from the 2018 third quarter sale of our EIS business. Operating profit for 2017 includes a pre-tax gain of $3,947 million recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses and a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit. Operating profit for 2016 includes a pre-tax gain of $51 million recognized from the sale of our nurse triage business. (5) In 2016, the Company implemented the Cost Alignment Plan to reduce its operating expenses and recorded pre-tax restructuring charges of $229 million . Pre-tax charges for 2016 were recorded as follows: $161 million , $51 million and $17 million within our Distribution Solutions segment, Technology Solutions segment and Corporate. (6) Amounts primarily include amortization of acquired intangible assets purchased in connection with business acquisitions, capitalized software held for sale and capitalized software for internal use. (7) Long-lived assets consist of property, plant and equipment. (8) Net revenues were attributed to geographic areas based on the customers’ shipment locations. |
Schedule of segment assets and property, plant and equipment, net by geographic areas | Segment assets and property, plant and equipment, net by geographic areas were as follows: March 31, (In millions) 2018 2017 Segment assets Distribution Solutions $ 53,915 $ 52,322 Technology Solutions 3,735 4,995 Corporate 2,731 3,652 Total $ 60,381 $ 60,969 Property, plant and equipment, net United States $ 1,529 $ 1,383 Foreign 935 909 Total $ 2,464 $ 2,292 |
Quarterly Financial Informati58
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The quarterly results of operations are not necessarily indicative of the results that may be expected for the entire year. Selected quarterly financial information for the last two years is as follows: (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Revenues $ 51,051 $ 52,061 $ 53,617 $ 51,628 Gross profit (1) 2,560 2,834 2,715 3,075 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) $ 363 $ 56 $ 960 $ (1,087 ) Discontinued operations 2 — 1 2 Net income (loss) $ 365 $ 56 $ 961 $ (1,085 ) Net income (loss) attributable to McKesson $ 309 $ 1 $ 903 $ (1,146 ) Earnings (loss) per common share attributable to McKesson (6) Diluted (7) Continuing operations $ 1.44 $ 0.01 $ 4.32 $ (5.58 ) Discontinued operations 0.01 — 0.01 — Total $ 1.45 $ 0.01 $ 4.33 $ (5.58 ) Basic Continuing operations $ 1.46 $ 0.01 $ 4.34 $ (5.58 ) Discontinued operations — — 0.01 — Total $ 1.46 $ 0.01 $ 4.35 $ (5.58 ) (1) Gross profit for the first, second, third and fourth quarters of 2018 includes pre-tax charge of $26 million , pre-tax credits of $29 million , $2 million and $94 million related to our last-in-first-out (“LIFO”) method of accounting for inventories. (2) Financial results for the second and fourth quarter of 2018 include non-cash goodwill impairment charges (pre-tax and after-tax) of $350 million and $933 million for our McKesson Europe reporting unit. In addition, financial results for the fourth quarter of 2018 include a non-cash goodwill impairment charge of $455 million for our Rexall Health reporting unit. These charges were recorded within our Distribution Solutions segment. (3) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax asset impairment charges of $189 million and $257 million for our McKesson Europe business. (4) Financial results for the third quarter of 2018 include a pre-tax gain of $109 million from the sale of our EIS business. (5) Financial results for the first, second, third and fourth quarters of 2018 include our proportionate share of loss from Change Healthcare of $120 million , $61 million , $90 million and income of $23 million . (6) Certain computations may reflect rounding adjustments. (7) As a result of our reported net loss for the fourth quarter of 2018, potentially dilutive securities were excluded from the 2018 fourth quarter per share computations due to their antidilutive effect. (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2017 Revenues $ 49,733 $ 49,957 $ 50,130 $ 48,713 Gross profit (1) (2) (3) 2,907 2,756 2,812 2,796 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) $ 673 $ 325 $ 649 $ 3,630 Discontinued operations (113 ) (1 ) (3 ) (7 ) Net income $ 560 $ 324 $ 646 $ 3,623 Net income attributable to McKesson $ 542 $ 307 $ 633 $ 3,588 Earnings (loss) per common share attributable to McKesson (5) Diluted Continuing operations $ 2.88 $ 1.35 $ 2.86 $ 16.79 Discontinued operations (0.50 ) (0.01 ) (0.01 ) (0.03 ) Total $ 2.38 $ 1.34 $ 2.85 $ 16.76 Basic Continuing operations $ 2.91 $ 1.36 $ 2.89 $ 16.95 Discontinued operations (0.50 ) — (0.02 ) (0.03 ) Total $ 2.41 $ 1.36 $ 2.87 $ 16.92 (1) Gross profit for the first, second, third and fourth quarters of 2017 includes pre-tax charge of $47 million , pre-tax credits of $43 million , $155 million and pre-tax charge of $144 million related to our LIFO method of accounting for inventories. (2) Gross profit for the first and third quarters of 2017 includes $142 million and $2 million of cash proceeds representing our share of net settlements of antitrust class action lawsuits. (3) Financial results for the fourth quarter of 2017 include a pre-tax gain of $3,947 million ( $3,018 million after-tax) recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses. (4) Financial results for the second quarter of 2017 include a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit within our Technology Solutions segment. (5) Certain computations may reflect rounding adjustments. |
Significant Accounting Polici59
Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)segment | Mar. 31, 2018USD ($)customersegment | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 2 | |||
Restricted cash balance | $ 0 | $ 1,500,000,000 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
LIFO inventory (percentage) | 63.00% | 70.00% | ||
LIFO reserve | $ 906,000,000 | $ 1,005,000,000 | ||
Charges (credits) associated with last-in-first-out inventory method | 99,000,000 | 7,000,000 | $ (244,000,000) | |
Capitalized software held for internal use, net | 425,000,000 | 455,000,000 | ||
Capitalized software held for internal use, accumulated amortization | 1,182,000,000 | 1,177,000,000 | ||
Sales returns from customers | 3,100,000,000 | 3,100,000,000 | 3,100,000,000 | |
Supplier reserves | 227,000,000 | 201,000,000 | ||
Discrete tax benefits | $ 8,000,000 | 54,000,000 | 0 | |
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 1 year | |||
Intangible assets, useful life | 1 year | |||
Capitalized software held for internal use, useful life | 1 year | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life | 30 years | |||
Intangible assets, useful life | 38 years | |||
Capitalized software held for internal use, useful life | 10 years | |||
Selling, Distribution and Administrative Expenses | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Shipping and handling costs | $ 914,000,000 | 814,000,000 | 789,000,000 | |
Customer Concentration Risk | Sales Revenue, Net | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of largest customers | customer | 10 | |||
Percentage of total consolidated revenues (percent) | 51.70% | |||
Customer Concentration Risk | Sales Revenue, Net | CVS | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Percentage of total consolidated revenues (percent) | 19.90% | |||
Customer Concentration Risk | Accounts Receivable | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of largest customers | customer | 10 | |||
Percentage of total consolidated revenues (percent) | 24.90% | |||
Customer Concentration Risk | Accounts Receivable | CVS | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Percentage of total consolidated revenues (percent) | 16.40% | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Discrete tax benefits | $ 8,000,000 | $ 54,000,000 | ||
Long-term Debt | Adjustments for New Accounting Pronouncement | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Unamortized debt issuance costs reclassified | $ 40,000,000 | |||
Expected | ||||
Accounting Policies [Abstract] | ||||
Number of operating segments | segment | 3 | |||
Expected | Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Anticipated deferred tax asset | $ 130,000,000 | |||
Expected | Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Anticipated deferred tax asset | $ 160,000,000 |
Healthcare Technology Net Ass60
Healthcare Technology Net Asset Exchange (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 01, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Carrying value of equity method investments | $ 3,728 | $ 4,063 | $ 3,728 | $ 4,063 | |||||
Corporate Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Carrying value of equity method investments | 3,728 | 4,063 | 3,728 | 4,063 | |||||
Excess of carrying value over proportionate share of investment net assets | 4,472 | 4,762 | 4,472 | 4,762 | |||||
Core MTS Businesses | Corporate Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest in Joint Venture (percent) | 70.00% | ||||||||
Core MTS Businesses | Technology Solutions | Operating Segments | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Pre-tax gain on sale of business | 3,947 | 3,947 | |||||||
Gain from sale of business, after tax | 3,018 | ||||||||
Carrying value of contributed business' net assets | 1,132 | 1,132 | |||||||
Promissory notes received | $ 1,258 | 1,258 | |||||||
Transition Services Agreements (“TSA”) | Corporate Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Total fees charged under the TSA | 91 | ||||||||
Change Healthcare | Tax Receivable Agreement (“TRA”) | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Noncurrent liability | 90 | 90 | $ 136 | ||||||
Credit in operating expense | 46 | ||||||||
Change Healthcare | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Loss from equity method investment in Change Healthcare | $ (23) | $ 90 | $ 61 | $ 120 | 248 | $ 0 | $ 0 | ||
Change Healthcare | Corporate Joint Venture | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Loss from equity method investment in Change Healthcare | 248 | ||||||||
Provisional tax benefit | $ 76 | ||||||||
Change Healthcare | Core MTS Businesses | Technology Solutions | Operating Segments | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Pre-tax gain on sale of business | 37 | ||||||||
Gain from sale of business, after tax | $ 22 | ||||||||
Proceeds from Divestiture of Businesses | $ 126 |
Goodwill Impairment Charges (De
Goodwill Impairment Charges (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | $ 1,738,000,000 | $ 290,000,000 | $ 0 | ||
Goodwill | $ 10,924,000,000 | 10,924,000,000 | 10,586,000,000 | 9,786,000,000 | |
Mckesson Europe Reporting Unit | |||||
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | 1,283,000,000 | ||||
Distribution Solutions | |||||
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | 1,738,000,000 | 0 | |||
Goodwill | 10,924,000,000 | 10,924,000,000 | $ 10,132,000,000 | 7,987,000,000 | |
Distribution Solutions | Mckesson Europe Reporting Unit | |||||
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | 933,000,000 | $ 350,000,000 | |||
Goodwill | $ 1,851,000,000 | 1,851,000,000 | |||
Goodwill impairment, discount rate (percent) | 8.00% | 7.50% | 7.00% | ||
Goodwill impairment, terminal growth rate (percent) | 1.25% | 1.25% | 1.50% | ||
Distribution Solutions | Rexall Health | |||||
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | $ 455,000,000 | 455,000,000 | |||
Goodwill | 0 | $ 0 | |||
Goodwill impairment, discount rate (percent) | 10.00% | ||||
Goodwill impairment, terminal growth rate (percent) | 2.00% | ||||
Technology Solutions | |||||
Goodwill [Line Items] | |||||
Non-cash pre-tax charge | $ 0 | $ 290,000,000 | |||
Non-cash after-tax charge | 282,000,000 | ||||
Goodwill | $ 0 | $ 0 | $ 454,000,000 | $ 1,799,000,000 |
Restructuring and Asset Impai62
Restructuring and Asset Impairment Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 25 Months Ended | |||
Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and asset impairment charges | $ 567 | $ 18 | $ 203 | |||
Pre-tax charge | 13 | 14 | 229 | |||
Cash payments for restructuring | 45 | 106 | ||||
Severance and employee related costs | 207 | |||||
Reserve balance | $ 69 | 69 | 106 | 222 | $ 69 | |
Other Accrued Liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reserve balance | 39 | 39 | 71 | 39 | ||
Other Noncurrent Assets/Liabilities | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Reserve balance | 30 | 30 | 35 | 30 | ||
Intangible Asset and Store Assets Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 479 | |||||
Restructuring charges, after tax | 443 | |||||
Reduction in Workforce | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and employee related costs | 117 | |||||
Business Process Initiatives | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Severance and employee related costs | 90 | |||||
Fiscal 2018 McKesson Europe Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charges recorded to-date | 74 | |||||
Reserve balance | 42 | 42 | 42 | |||
Fiscal 2018 McKesson Europe Plan | Severance and Lease Exit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 74 | |||||
Restructuring charges, after tax | 67 | |||||
Fiscal 2018 McKesson Europe Plan | Intangible Asset and Store Assets Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 257 | $ 189 | 446 | |||
Restructuring charges, after tax | 253 | $ 157 | 410 | |||
Fiscal 2018 McKesson Europe Plan | Reduction in Workforce | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash payments for restructuring | 10 | |||||
Fiscal 2018 McKesson Europe Plan | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected total pre-tax charges | 90 | 90 | 90 | |||
Fiscal 2018 McKesson Europe Plan | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected total pre-tax charges | 130 | 130 | 130 | |||
Cost Alignment Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 13 | $ 14 | 229 | |||
Pre-tax charges recorded to-date | 256 | |||||
Cost Alignment Plan | Severance and Employee-Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 229 | |||||
Cost Alignment Plan | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected total pre-tax charges | 250 | 250 | 250 | |||
Cost Alignment Plan | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected total pre-tax charges | 270 | $ 270 | $ 270 | |||
Cost of Sales | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 26 | |||||
Cost of Sales | Cost Alignment Plan | Severance and Employee-Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 26 | |||||
Operating Expenses | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | 203 | |||||
Operating Expenses | Cost Alignment Plan | Severance and Employee-Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pre-tax charge | $ 203 | |||||
Customer relationships | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Non-cash pre-tax and after-tax impairment charges | $ 33 |
Restructuring and Asset Impai63
Restructuring and Asset Impairment Charges - Summary of Details for Charges Recorded (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance and employee-related costs, net | $ 207 | ||
Exit-related costs | 5 | ||
Asset impairments and accelerated depreciation and amortization | 17 | ||
Total | $ 13 | $ 14 | 229 |
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 26 | ||
Operating Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 203 | ||
Operating Segments | Distribution Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and employee-related costs, net | 147 | ||
Exit-related costs | 3 | ||
Asset impairments and accelerated depreciation and amortization | 11 | ||
Total | 13 | 19 | 161 |
Operating Segments | Distribution Solutions | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 5 | ||
Operating Segments | Distribution Solutions | Operating Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 156 | ||
Operating Segments | Technology Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and employee-related costs, net | 44 | ||
Exit-related costs | 1 | ||
Asset impairments and accelerated depreciation and amortization | 6 | ||
Total | 0 | (10) | 51 |
Operating Segments | Technology Solutions | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 21 | ||
Operating Segments | Technology Solutions | Operating Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 30 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and employee-related costs, net | 16 | ||
Exit-related costs | 1 | ||
Asset impairments and accelerated depreciation and amortization | 0 | ||
Total | $ 0 | $ 5 | 17 |
Corporate | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 0 | ||
Corporate | Operating Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | $ 17 |
Restructuring and Asset Impai64
Restructuring and Asset Impairment Charges - Summary of Activity Related to Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Cost Alignment Plan | |||
Beginning balance | $ 106 | $ 222 | |
Net restructuring charges recognized | 13 | 14 | $ 229 |
Non-cash charges | 0 | (9) | |
Cash Payments | (45) | (106) | |
Other | (5) | (15) | |
Ending balance | 69 | 106 | 222 |
Operating Segments | Distribution Solutions | |||
Cost Alignment Plan | |||
Beginning balance | 90 | 156 | |
Net restructuring charges recognized | 13 | 19 | 161 |
Non-cash charges | 0 | (10) | |
Cash Payments | (36) | (67) | |
Other | (3) | (8) | |
Ending balance | 64 | 90 | 156 |
Operating Segments | Technology Solutions | |||
Cost Alignment Plan | |||
Beginning balance | 10 | 45 | |
Net restructuring charges recognized | 0 | (10) | 51 |
Non-cash charges | 0 | 0 | |
Cash Payments | (4) | (20) | |
Other | (6) | (5) | |
Ending balance | 0 | 10 | 45 |
Corporate | |||
Cost Alignment Plan | |||
Beginning balance | 6 | 21 | |
Net restructuring charges recognized | 0 | 5 | 17 |
Non-cash charges | 0 | 1 | |
Cash Payments | (5) | (19) | |
Other | 4 | (2) | |
Ending balance | $ 5 | $ 6 | $ 21 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | Oct. 02, 2017 | Jul. 18, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 01, 2017 |
Discontinued Operations Disclosures | ||||||||||
Gain from sale of equity method investment, pre-tax | $ 43 | $ 0 | $ 0 | |||||||
Distribution Solutions | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Proceeds from sale of equity method investments | $ 42 | |||||||||
Gain from sale of equity method investment, pre-tax | $ 43 | |||||||||
Gain from sale of equity method investment, after tax | $ 26 | |||||||||
Distribution Solutions | ZEE Medical Business | Operating Segments | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Pre-tax gain on sale of business | $ 52 | 52 | ||||||||
Gain from sale of business, after tax | 29 | |||||||||
Proceeds from divestiture of businesses | $ 134 | |||||||||
Technology Solutions | Nurse Triage | Operating Segments | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Pre-tax gain on sale of business | $ 51 | $ 51 | ||||||||
Gain from sale of business, after tax | 38 | |||||||||
Proceeds from divestiture of businesses | $ 84 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Consideration agreed upon for sale of business | $ 185 | |||||||||
Net cash proceeds received | $ 169 | |||||||||
Assumed net debt | $ 16 | |||||||||
Pre-tax gain on sale of business | $ 109 | |||||||||
Gain from sale of business, after tax | $ 30 |
Business Combinations - Acquisi
Business Combinations - Acquisition of RxCrossroads (Details) - USD ($) $ in Millions | Jan. 02, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||
Cash purchase consideration | $ 2,893 | $ 4,237 | $ 40 | |
Goodwill | $ 10,924 | $ 10,586 | $ 9,786 | |
RxCrossroads | ||||
Business Acquisition [Line Items] | ||||
Cash purchase consideration | $ 724 | |||
Fair value of assets acquired (excluding goodwill and intangibles) | 133 | |||
Fair value of liabilities assumed | 43 | |||
Goodwill | 368 | |||
Intangible assets | $ 262 | |||
Weighted average life | 18 years |
Business Combinations - Acqui67
Business Combinations - Acquisition of CoverMyMeds (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Apr. 03, 2017 | May 24, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Purchase consideration paid in cash, net of cash acquired | $ 2,893 | $ 4,237 | $ 40 | ||||
Goodwill | $ 10,924 | 10,924 | $ 10,586 | $ 9,786 | |||
CMM | |||||||
Business Acquisition [Line Items] | |||||||
Purchase consideration paid in cash, net of cash acquired | $ 1,300 | ||||||
Fair value of assets acquired (excluding goodwill and intangibles) | 53 | 53 | |||||
Fair value of liabilities assumed | 8 | 8 | |||||
Goodwill | 870 | 870 | |||||
Expected | CMM | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 160 | ||||||
Investment Assets at Fair Value | CMM | |||||||
Business Acquisition [Line Items] | |||||||
Contingent consideration | 124 | $ 113 | 124 | ||||
Customer relationships | CMM | |||||||
Business Acquisition [Line Items] | |||||||
Acquired identifiable intangibles | $ 487 | $ 487 | |||||
Weighted average life | 17 years | ||||||
Subsequent Event | Investment Assets at Fair Value | CMM | |||||||
Business Acquisition [Line Items] | |||||||
Cash apayment for contingent consideration earned | $ 68 |
Business Combinations - Other A
Business Combinations - Other Acquisitions (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018USD ($)pharmacy | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Cash purchase consideration | $ 2,893 | $ 4,237 | $ 40 |
Goodwill | 10,924 | $ 10,586 | $ 9,786 |
intraFUSION, BDI Pharma, LLC, and Uniprix Group | |||
Business Acquisition [Line Items] | |||
Cash purchase consideration | 485 | ||
Goodwill | 240 | ||
Acquired identifiable intangibles | 118 | ||
Fair value of assets acquired (excluding goodwill and intangibles) | 292 | ||
Fair value of liabilities assumed | $ 154 | ||
CANADA | Uniprix Group | |||
Business Acquisition [Line Items] | |||
Number of Pharmacies Operated | pharmacy | 300 |
Business Combinations - Acqui69
Business Combinations - Acquisition of Rexall Health (Details) $ in Millions | May 23, 2018USD ($) | May 23, 2018CAD ($) | Dec. 31, 2017USD ($) | Dec. 28, 2016USD ($)pharmacy | Dec. 28, 2016CAD ($)pharmacy | Dec. 31, 2017USD ($) | Mar. 31, 2018USD ($)pharmacy | Mar. 31, 2018CAD ($)pharmacy | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2018CAD ($) |
Business Acquisition [Line Items] | |||||||||||
Cash purchase consideration | $ 2,893,000,000 | $ 4,237,000,000 | $ 40,000,000 | ||||||||
Gain (loss) recognized from sale of stores | 169,000,000 | (94,000,000) | 103,000,000 | ||||||||
Goodwill | $ 10,924,000,000 | $ 10,586,000,000 | $ 9,786,000,000 | ||||||||
CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of pharmacies | pharmacy | 450 | 450 | |||||||||
Cash purchase consideration | $ 2,100,000,000 | $ 2,900 | |||||||||
Number of stores sold | pharmacy | 27 | 27 | |||||||||
Gain (loss) recognized from sale of stores | $ 0 | ||||||||||
Fair value of assets acquired (excluding goodwill and intangibles) | $ 560,000,000 | 560,000,000 | |||||||||
Fair value of liabilities assumed | 210,000,000 | 210,000,000 | |||||||||
Goodwill | 948,000,000 | 948,000,000 | |||||||||
Acquired identifiable intangibles | $ 872,000,000 | $ 872,000,000 | |||||||||
Held-for-sale | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of pharmacies | pharmacy | 27 | 27 | |||||||||
Trade Names | Held-for-sale | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average life | 19 years | ||||||||||
Customer relationships | Held-for-sale | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average life | 19 years | ||||||||||
Third Party Buyer | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Consideration agreed upon for sale of business | $ 94,000,000 | $ 116 | |||||||||
Third Party Seller of Rexall Health | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from Previous Acquisition | $ 119,000,000 | $ 147 | |||||||||
Third Party Seller of Rexall Health | Subsequent Event | CANADA | Rexall Health | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from Previous Acquisition | $ 98,000,000 | $ 126 |
Business Combinations - Acqui70
Business Combinations - Acquisition of Vantage & Biologics (Details) $ in Millions | Mar. 31, 2017USD ($) | Apr. 01, 2016USD ($)cancer_treatment_facilitystate | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Cash purchase consideration | $ 2,893 | $ 4,237 | $ 40 | ||
Goodwill | $ 10,586 | $ 10,924 | 10,586 | $ 9,786 | |
Vantage | |||||
Business Acquisition [Line Items] | |||||
Number of pharmacies | cancer_treatment_facility | 51 | ||||
Number of states | state | 13 | ||||
Cash purchase consideration | $ 515 | ||||
Goodwill | 558 | 558 | |||
Acquired identifiable intangibles | 22 | 22 | |||
Fair value of noncontrolling interest | 89 | 89 | |||
Biologics | |||||
Business Acquisition [Line Items] | |||||
Cash purchase consideration | $ 692 | ||||
Goodwill | 574 | 574 | |||
Acquired identifiable intangibles | 193 | 193 | |||
Noncompete Agreements | Vantage | |||||
Business Acquisition [Line Items] | |||||
Acquired identifiable intangibles | $ 13 | 13 | |||
Weighted average life | 4 years | ||||
Trade Names | Biologics | |||||
Business Acquisition [Line Items] | |||||
Acquired identifiable intangibles | $ 170 | $ 170 | |||
Weighted average life | 9 years |
Business Combinations - Fair Va
Business Combinations - Fair Values Recognized of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 01, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 10,924 | $ 10,586 | $ 9,786 | |
Vantage & Biologics | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 101 | |||
Receivables | (5) | |||
Other current assets, net of cash and cash equivalents acquired | 19 | |||
Other current assets, net of cash and cash equivalents acquired | 0 | |||
Goodwill | 1,132 | |||
Goodwill | (87) | |||
Intangible assets | 215 | |||
Intangible assets | 79 | |||
Other long-term assets | 130 | |||
Other long-term assets | 54 | |||
Current liabilities | (132) | |||
Current liabilities | (15) | |||
Other long-term liabilities | (169) | |||
Other long-term liabilities | (89) | |||
Fair value of net assets, less cash and cash equivalents | 1,296 | |||
Fair value of net assets, less cash and cash equivalents | (63) | |||
Less: Noncontrolling Interests | (89) | |||
Less: Noncontrolling Interests | 63 | |||
Net assets acquired, net of cash and cash equivalents | 1,207 | |||
Net assets acquired, net of cash and cash equivalents | 0 | |||
Vantage & Biologics | Amounts Previously Recognized as of Acquisition Date (Provisional) | ||||
Business Acquisition [Line Items] | ||||
Receivables | 106 | |||
Other current assets, net of cash and cash equivalents acquired | 19 | |||
Goodwill | 1,219 | |||
Intangible assets | 136 | |||
Other long-term assets | 76 | |||
Current liabilities | (117) | |||
Other long-term liabilities | (80) | |||
Fair value of net assets, less cash and cash equivalents | 1,359 | |||
Less: Noncontrolling Interests | (152) | |||
Net assets acquired, net of cash and cash equivalents | $ 1,207 |
Business Combinations - Acqui72
Business Combinations - Acquisition of UDG (Details) € in Millions, $ in Millions | Mar. 31, 2017USD ($) | Apr. 01, 2016EUR (€) | Apr. 01, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Cash purchase consideration | $ 2,893 | $ 4,237 | $ 40 | |||
Goodwill | $ 10,586 | $ 10,924 | 10,586 | $ 9,786 | ||
UDG | ||||||
Business Acquisition [Line Items] | ||||||
Cash purchase consideration | € 380 | $ 431 | ||||
Fair value of assets acquired (excluding goodwill and intangibles) | 469 | 469 | ||||
Fair value of liabilities assumed | 340 | 340 | ||||
Goodwill | 181 | 181 | ||||
Increase in goodwill | 16 | |||||
Customer relationships | UDG | ||||||
Business Acquisition [Line Items] | ||||||
Acquired identifiable intangibles | $ 120 | $ 120 | ||||
Weighted average life | 10 years |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Brazil Distribution Business $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Discontinued Operations Disclosures | |
After-tax loss | $ 113 |
Payments related to sale of business | $ 100 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 69 | $ 115 | $ 123 |
Tax benefit for share-based compensation | (28) | (92) | (41) |
Share-based compensation expense, net of tax | 41 | 23 | 82 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 46 | 79 | 88 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 14 | 24 | 22 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 9 | $ 12 | $ 13 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Jul. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-cash credits | $ 14 | |||
Discrete tax benefits | $ 8 | $ 54 | $ 0 | |
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award contractual term | 7 years | |||
Stock award vesting period | 4 years | |||
RSUs | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested RSUs (in shares) | 117,000 | |||
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 3 years | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 4 years | |||
PeRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 4 years | |||
TSRUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 3 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 21,000,000 | |||
Number of shares available for grant | 3,000,000 | |||
Period over which payroll is deducted to purchase shares | 3 months | |||
Percentage of market price for share purchase | 85.00% | |||
Percentage of market price deduction for share purchases | 15.00% | |||
2013 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 30,000,000 | |||
Number of shares available for grant | 28,000,000 | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discrete tax benefits | $ 8 | $ 54 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Assumptions for Stock Options Fair Values (Details) - Stock Option | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility (percent) | 25.00% | 21.00% | 21.00% |
Expected dividend yield (percent) | 0.80% | 0.70% | 0.40% |
Risk-free interest rate (percent) | 1.70% | 1.10% | 1.40% |
Expected life (in years) | 4 years 6 months | 4 years | 4 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Options Outstanding (Details) shares in Millions | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding at Year End (in shares) | shares | 3 |
Number of Options Exercisable at Year End (in shares) | shares | 2 |
Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices lower limit (in dollars per share) | $ 76.55 |
Range of exercise prices upper limit (in dollars per share) | $ 158.24 |
Number of Options Outstanding at Year End (in shares) | shares | 1 |
Weighted- Average Remaining Contractual Life (Years) | 2 years |
Weighted- Average Exercise Price (in dollars per share) | $ 108.17 |
Number of Options Exercisable at Year End (in shares) | shares | 1 |
Weighted- Average Exercise Price (in dollars per share) | $ 106.05 |
Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices lower limit (in dollars per share) | 158.25 |
Range of exercise prices upper limit (in dollars per share) | $ 239.93 |
Number of Options Outstanding at Year End (in shares) | shares | 2 |
Weighted- Average Remaining Contractual Life (Years) | 4 years |
Weighted- Average Exercise Price (in dollars per share) | $ 190.18 |
Number of Options Exercisable at Year End (in shares) | shares | 1 |
Weighted- Average Exercise Price (in dollars per share) | $ 199.13 |
Share-Based Compensation - Sc78
Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Shares | ||
Beginning balance (in shares) | 4 | |
Granted (in shares) | 1 | |
Cancelled (in shares) | (1) | |
Exercised (in shares) | (1) | |
Ending balance (in shares) | 3 | 4 |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 145.76 | |
Granted (in dollars per share) | 157.45 | |
Cancelled (in dollars per share) | 180.79 | |
Exercised (in dollars per share) | 86.95 | |
Ending balance (in dollars per share) | $ 161.27 | $ 145.76 |
Weighted- Average Remaining Contractual Term (Years) | ||
Stock options outstanding, remaining contractual term | 4 years | 4 years |
Stock options outstanding, aggregate intrinsic value | $ 36 | $ 97 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Stock options vested and expected to vest (in shares) | 3 | |
Stock options vested and exercisable (in shares) | 2 | |
Stock options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 160.28 | |
Stock options vested and exercisable, weighted average exercise price (in dollars per share) | $ 147.76 | |
Stock options vested and expected to vest, weighted average remaining contractual term | 4 years | |
Stock options vested and exercisable, weighted average remaining contractual term | 2 years | |
Stock options vested and expected to vest, aggregate intrinsic value | $ 35 | |
Stock options vested and exercisable, aggregate intrinsic value | $ 35 |
Share-Based Compensation - Sc79
Share-Based Compensation - Schedule of Data Related to Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per stock option (in dollars per share) | $ 34.24 | $ 32.19 | $ 44.04 |
Aggregate intrinsic value on exercise | $ 60 | $ 97 | $ 107 |
Cash received upon exercise | 77 | 54 | 47 |
Tax benefits realized related to exercise | 22 | 38 | 42 |
Total fair value of stock options vested | 20 | 18 | 18 |
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax | $ 15 | $ 21 | $ 20 |
Weighted-average period in years over which stock option compensation cost is expected to be recognized | 2 years | 2 years | 2 years |
Share-Based Compensation - Sc80
Share-Based Compensation - Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of TSRUs (Details) - TSRUs | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility (percent) | 29.00% | 23.00% | 18.00% |
Expected dividend yield (percent) | 0.80% | 0.70% | 0.40% |
Risk-free interest rate (percent) | 1.50% | 1.10% | 0.90% |
Expected life (in years) | 3 years | 3 years | 3 years |
Share-Based Compensation - Sc81
Share-Based Compensation - Schedule of Restricted Stock Unit Award Activity (Details) - Restricted stock units shares in Millions | 12 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 2 |
Granted (in shares) | shares | 1 |
Vested (in shares) | shares | (1) |
Ending balance (in shares) | shares | 2 |
Weighted- Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per shares) | $ / shares | $ 188.54 |
Granted (in dollars per share) | $ / shares | 159.49 |
Vested (in dollars per share) | $ / shares | 172.02 |
Ending balance (in dollars per shares) | $ / shares | $ 176.74 |
Share-Based Compensation - Su82
Share-Based Compensation - Summary of Data Related to RSU Activity (Details) - Restricted stock units - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested | $ 156 | $ 109 | $ 104 |
Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax | $ 97 | $ 99 | $ 144 |
Weighted-average period in years over which restricted stock unit award cost is expected to be recognized | 2 years | 2 years | 2 years |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 48 | $ 29 | $ 18 | |
Gain from sale of equity method investment, pre-tax | 43 | 0 | 0 | |
Other, net | 7 | 31 | 25 | |
Total | 130 | 90 | 58 | |
Distribution Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings, net | $ 32 | $ 30 | $ 15 | |
Gain from sale of equity method investment, pre-tax | $ 43 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income from continuing operations before income taxes | |||
U.S. | $ 1,175 | $ 5,772 | $ 2,319 |
Foreign | (936) | 1,119 | 931 |
Income from Continuing Operations Before Income Taxes | $ 239 | $ 6,891 | $ 3,250 |
Income Taxes - Components Of Pr
Income Taxes - Components Of Provision For Income Taxes Related To Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Current | |||
Federal | $ 577 | $ 524 | $ 658 |
State | 33 | 86 | 96 |
Foreign | 205 | 122 | 90 |
Total current | 815 | 732 | 844 |
Deferred | |||
Federal | (767) | 767 | 95 |
State | 17 | 164 | 42 |
Foreign | (118) | (49) | (73) |
Total deferred | (868) | 882 | 64 |
Income tax (benefit) expense | $ (53) | $ 1,614 | $ 908 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Mar. 31, 2015 |
Income Tax Contingency [Line Items] | ||||||||
Income tax expense | $ (53) | $ 1,614 | $ 908 | |||||
Income tax rates (percent) | 22.20% | 23.40% | 27.90% | |||||
Statutory federal income tax rate (percent) | 31.60% | 35.00% | 35.00% | |||||
Research and development credit | $ 11 | |||||||
Transition tax on foreign earnings | 457 | $ 0 | $ 0 | |||||
Goodwill impairment charge | 1,738 | 290 | 0 | |||||
Net tax benefit on intellectual property transfer | 178 | 137 | 0 | |||||
Tax expense recognized on gain from asset exchange | $ 929 | |||||||
Tax benefit related to adoption of amended accounting guidance | 8 | 54 | 0 | |||||
Net discrete tax expense (benefit) | (19) | |||||||
Discrete tax benefit | 25 | |||||||
Valuation allowance | $ 751 | 751 | 503 | |||||
Increase in valuation allowance | 248 | |||||||
Unrecognized tax benefits | 1,183 | 1,183 | 486 | 555 | $ 616 | |||
Unrecognized tax benefits that would Impact income tax expense and the effective tax rate | 1,042 | 1,042 | ||||||
Income tax expense (benefit), before any tax effect, related to accrued interest and penalties | (1) | (6) | 12 | |||||
Accrued interest and penalties on unrecognized tax benefits | 37 | 37 | 45 | |||||
Tax benefit resulting from favorable resolution of various uncertain tax positions | $ 39 | 7 | 113 | $ 141 | ||||
Provisional net tax benefit | 68 | 1,324 | ||||||
Provisional tax expense resulting from the 2017 Tax Act | 23 | 457 | ||||||
Undistributed earnings of foreign operations | $ 5,854 | |||||||
Federal | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Federal, state and foreign net operating loss carryforwards | 111 | 111 | ||||||
State | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Federal, state and foreign net operating loss carryforwards | 2,787 | 2,787 | ||||||
Foreign Tax Authority | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Federal, state and foreign net operating loss carryforwards | 1,806 | 1,806 | ||||||
Capital loss carryforwards | $ 756 | 756 | ||||||
Technology Solutions | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Goodwill impairment charge | 0 | 290 | ||||||
New Accounting Pronouncement, Early Adoption, Effect | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Tax benefit related to adoption of amended accounting guidance | $ 8 | $ 54 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Tax Rate On Income From Continuing Operations And Statutory Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | $ 75 | $ 2,411 | $ 1,137 |
State income taxes net of federal tax benefit | 50 | 153 | 92 |
Tax effect of foreign operations | (146) | (326) | (295) |
Unrecognized tax benefits and settlements | 454 | 57 | (14) |
Non-deductible goodwill | 585 | 106 | 0 |
Share-based compensation | (8) | (54) | 0 |
Net tax benefit on intellectual property transfer | (178) | (137) | 0 |
Rate differential on gain from Change Healthcare Net Asset Exchange | 0 | (587) | 0 |
Remeasurement of U.S. deferred taxes | (1,324) | 0 | 0 |
Transition tax on foreign earnings | 457 | 0 | 0 |
Other, net | (18) | (9) | (12) |
Income tax (benefit) expense | $ (53) | $ 1,614 | $ 908 |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax Balances (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Assets | ||
Receivable allowances | $ 58 | $ 124 |
Compensation and benefit related accruals | 345 | 593 |
Net operating loss and credit carryforwards | 811 | 594 |
Long-term contractual obligations | 59 | 107 |
Other | 279 | 241 |
Subtotal | 1,552 | 1,659 |
Less: valuation allowance | (751) | (503) |
Total assets | 801 | 1,156 |
Liabilities | ||
Inventory valuation and other assets | (1,869) | (2,818) |
Fixed assets and systems development costs | (158) | (224) |
Intangibles | (644) | (921) |
Change Healthcare Equity Investment | (814) | (773) |
Other | (71) | (70) |
Total liabilities | (3,556) | (4,806) |
Net deferred tax liability | (2,755) | (3,650) |
Long-term deferred tax asset | 49 | 28 |
Long-term deferred tax liability | $ (2,804) | $ (3,678) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits at beginning of period | $ 486 | $ 555 | $ 616 | |
Additions based on tax positions related to prior years | 47 | 7 | 116 | |
Reductions based on tax positions related to prior years | (124) | (67) | (62) | |
Additions based on tax positions related to current year | 778 | 105 | 28 | |
Reductions based on settlements | $ (39) | (7) | (113) | (141) |
Reductions based on the lapse of the applicable statutes of limitations | 0 | 0 | (6) | |
Exchange rate fluctuations | 3 | (1) | 4 | |
Unrecognized tax benefits at end of period | $ 1,183 | $ 486 | $ 555 |
Redeemable Noncontrolling Int90
Redeemable Noncontrolling Interests and Noncontrolling Interests - Narrative (Details) shares in Millions | 12 Months Ended | ||||
Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2018€ / shares | Dec. 02, 2014€ / shares | |
Noncontrolling Interest [Line Items] | |||||
Carrying amount of redeemable noncontrolling interest | $ 1,459,000,000 | $ 1,327,000,000 | |||
Noncontrolling interests | 253,000,000 | 178,000,000 | |||
Net income attributable to noncontrolling interests | 230,000,000 | 83,000,000 | $ 52,000,000 | ||
Net income attributable to McKesson and transfers of interests | 70,000,000 | ||||
Redeemable Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Net income attributable to noncontrolling interests | 43,000,000 | 44,000,000 | |||
Decrease in carrying value of redeemable noncontrolling interest | 53,000,000 | ||||
Carrying amount of redeemable noncontrolling interest | 1,459,000,000 | 1,327,000,000 | 1,406,000,000 | ||
Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Decrease in carrying value of redeemable noncontrolling interest | 0 | ||||
Noncontrolling interests | 253,000,000 | 178,000,000 | 84,000,000 | ||
Net income attributable to noncontrolling interests | 187,000,000 | 39,000,000 | |||
Additional Paid-in Capital | |||||
Noncontrolling Interest [Line Items] | |||||
Effect of changes in ownership interests | 3,000,000 | ||||
McKesson Europe | |||||
Noncontrolling Interest [Line Items] | |||||
Annual recurring compensation (in euro per share) | € / shares | € 0.83 | ||||
Net income attributable to noncontrolling interests | 43,000,000 | 44,000,000 | 44,000,000 | ||
Put right (in dollars per share) | € / shares | € 22.99 | ||||
Payments to purchase shares of Mckesson Europe | $ 50,000,000 | ||||
Shares purchased (shares) | shares | 1.9 | ||||
Maximum redemption value | $ 1,347,000,000 | $ 1,210,000,000 | |||
Percentage of outstanding common shares | 77.00% | 76.00% | |||
McKesson Europe | Redeemable Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Decrease in carrying value of redeemable noncontrolling interest | $ 53,000,000 | ||||
Vantage and ClarusOne Sourcing Services LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Net income attributable to noncontrolling interests | $ 187,000,000 | $ 39,000,000 | $ 8,000,000 |
Redeemable Noncontrolling Int91
Redeemable Noncontrolling Interests and Noncontrolling Interests - Schedule of Changes in Noncontrolling Interests and Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 178 | ||
Net income attributable to noncontrolling interests | 230 | $ 83 | $ 52 |
Other comprehensive income (loss) | 185 | (79) | |
Payments to noncontrolling interests | (98) | ||
Ending balance | 253 | 178 | |
Redeemable Noncontrolling Interest, Beginning balance | 1,327 | ||
Other comprehensive income (loss) | 185 | (79) | |
Payments to noncontrolling interests | (98) | ||
Redeemable Noncontrolling Interest, Ending balance | 1,459 | 1,327 | |
Noncontrolling interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 178 | 84 | |
Net income attributable to noncontrolling interests | 187 | 39 | |
Other comprehensive income (loss) | 0 | 0 | |
Payments to noncontrolling interests | (98) | ||
Exercises of Put Right | 0 | ||
Other | (14) | (34) | |
Ending balance | 253 | 178 | 84 |
Other comprehensive income (loss) | 0 | 0 | |
Purchases of noncontrolling interests | 89 | ||
Payments to noncontrolling interests | (98) | ||
Other | (14) | (34) | |
Redeemable Noncontrolling Interest | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Other comprehensive income (loss) | 185 | (78) | |
Payments to noncontrolling interests | 0 | ||
Exercises of Put Right | (53) | ||
Other | 0 | (1) | |
Redeemable Noncontrolling Interest, Beginning balance | 1,327 | 1,406 | |
Net income attributable to noncontrolling interests | 43 | 44 | |
Other comprehensive income (loss) | 185 | (78) | |
Reclassification of recurring compensation to other accrued liabilities | (43) | (44) | |
Purchases of noncontrolling interests | 0 | ||
Payments to noncontrolling interests | 0 | ||
Other | 0 | (1) | |
Redeemable Noncontrolling Interest, Ending balance | $ 1,459 | $ 1,327 | $ 1,406 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ (1,087) | $ 960 | $ 56 | $ 363 | $ 3,630 | $ 649 | $ 325 | $ 673 | $ 292 | $ 5,277 | $ 2,342 |
Net income attributable to noncontrolling interests | (230) | (83) | (52) | ||||||||
Income from continuing operations attributable to McKesson | 62 | 5,194 | 2,290 | ||||||||
Income (Loss) from discontinued operations, net of tax | 2 | 1 | 0 | 2 | (7) | (3) | (1) | (113) | 5 | (124) | (32) |
Net Income Attributable to McKesson Corporation | $ (1,146) | $ 903 | $ 1 | $ 309 | $ 3,588 | $ 633 | $ 307 | $ 542 | $ 67 | $ 5,070 | $ 2,258 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 208 | 221 | 230 | ||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Diluted (in shares) | 209 | 223 | 233 | ||||||||
Diluted | |||||||||||
Continuing operations (in dollars per share) | $ (5.58) | $ 4.32 | $ 0.01 | $ 1.44 | $ 16.79 | $ 2.86 | $ 1.35 | $ 2.88 | $ 0.30 | $ 23.28 | $ 9.84 |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0.01 | (0.03) | (0.01) | (0.01) | (0.50) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | (5.58) | 4.33 | 0.01 | 1.45 | 16.76 | 2.85 | 1.34 | 2.38 | 0.32 | 22.73 | 9.70 |
Basic | |||||||||||
Continuing operations (in dollars per share) | (5.58) | 4.34 | 0.01 | 1.46 | 16.95 | 2.89 | 1.36 | 2.91 | 0.30 | 23.50 | 9.96 |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | (0.03) | (0.02) | 0 | (0.50) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | $ (5.58) | $ 4.35 | $ 0.01 | $ 1.46 | $ 16.92 | $ 2.87 | $ 1.36 | $ 2.41 | $ 0.32 | $ 22.95 | $ 9.82 |
Stock Option | |||||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 0 | 1 | 1 | ||||||||
Restricted stock units | |||||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 1 | 1 | 2 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive shares excluded from diluted earnings per share | 2 | 2 | 2 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Receivables, Net, Current [Abstract] | ||
Customer accounts | $ 14,349 | $ 14,602 |
Other | 3,578 | 3,893 |
Total | 17,927 | 18,495 |
Allowances | (216) | (280) |
Net | $ 17,711 | $ 18,215 |
Property, Plant and Equipment95
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 187 | $ 166 |
Building, machinery, equipment and other | 3,746 | 3,637 |
Total property, plant and equipment | 3,933 | 3,803 |
Accumulated depreciation | (1,469) | (1,511) |
Property, plant and equipment, net | $ 2,464 | $ 2,292 |
Goodwill and Intangible Asset96
Goodwill and Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 10,586 | $ 9,786 | |
Goodwill acquired | 1,707 | 2,858 | |
Acquisition accounting, transfers and other adjustments | 39 | (145) | |
Goodwill impairment | (1,738) | (290) | $ 0 |
Amount reclassified to assets held for sale | (2) | (165) | |
Goodwill disposed | (172) | (1,108) | |
Foreign currency translation adjustments, net | 504 | (350) | |
Goodwill, ending balance | 10,924 | 10,586 | 9,786 |
Distribution Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 10,132 | 7,987 | |
Goodwill acquired | 1,707 | 2,836 | |
Acquisition accounting, transfers and other adjustments | 369 | (146) | |
Goodwill impairment | (1,738) | 0 | |
Amount reclassified to assets held for sale | (2) | (165) | |
Goodwill disposed | (48) | (30) | |
Foreign currency translation adjustments, net | 504 | (350) | |
Goodwill, ending balance | 10,924 | 10,132 | 7,987 |
Technology Solutions | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 454 | 1,799 | |
Goodwill acquired | 0 | 22 | |
Acquisition accounting, transfers and other adjustments | (330) | 1 | |
Goodwill impairment | 0 | (290) | |
Amount reclassified to assets held for sale | 0 | 0 | |
Goodwill disposed | (124) | (1,078) | |
Foreign currency translation adjustments, net | 0 | 0 | |
Goodwill, ending balance | $ 0 | $ 454 | $ 1,799 |
Goodwill and Intangible Asset97
Goodwill and Intangible Assets, Net - Goodwill Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Distribution Solutions | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment loss | $ 1,755 | |
Technology Solutions | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment loss | $ 290 |
Goodwill and Intangible Asset98
Goodwill and Intangible Assets, Net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,681 | $ 5,758 |
Accumulated Amortization | (2,579) | (2,093) |
Net Carrying Amount | $ 4,102 | 3,665 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 3,619 | 2,893 |
Accumulated Amortization | (1,550) | (1,295) |
Net Carrying Amount | $ 2,069 | 1,598 |
Service agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 1,037 | 1,009 |
Accumulated Amortization | (386) | (316) |
Net Carrying Amount | $ 651 | 693 |
Pharmacy licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 26 years | |
Gross Carrying Amount | $ 684 | 741 |
Accumulated Amortization | (196) | (150) |
Net Carrying Amount | $ 488 | 591 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 14 years | |
Gross Carrying Amount | $ 932 | 845 |
Accumulated Amortization | (187) | (124) |
Net Carrying Amount | $ 745 | 721 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 4 years | |
Gross Carrying Amount | $ 147 | 69 |
Accumulated Amortization | (84) | (64) |
Net Carrying Amount | $ 63 | 5 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 4 years | |
Gross Carrying Amount | $ 262 | 201 |
Accumulated Amortization | (176) | (144) |
Net Carrying Amount | $ 86 | $ 57 |
Goodwill and Intangible Asset99
Goodwill and Intangible Assets, Net - Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 503 | $ 444 | $ 431 |
Estimated annual amortization expense, 2019 | 440 | ||
Estimated annual amortization expense, 2020 | 422 | ||
Estimated annual amortization expense, 2021 | 405 | ||
Estimated annual amortization expense, 2022 | 373 | ||
Estimated annual amortization expense, 2023 | 262 | ||
Estimated annual amortization expense, after 2023 | $ 2,200 |
Debt and Financing Activities -
Debt and Financing Activities - Schedule Of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Mar. 31, 2018 | Mar. 26, 2018 | Feb. 16, 2018 | Feb. 12, 2018 | Feb. 07, 2018 | Mar. 31, 2017 | Feb. 17, 2017 | |
Debt Instrument [Line Items] | |||||||
Total debt | $ 7,880 | $ 8,362 | |||||
Less: Current portion | (1,129) | (1,057) | |||||
Total long-term debt | 6,751 | 7,305 | |||||
Notes | 1.40% Notes due March 15, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 0 | 500 | |||||
Debt interest rate (percent) | 1.40% | ||||||
Debt maturity date | Mar. 15, 2018 | ||||||
Notes | 7.50% Notes due February 15, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 0 | 350 | |||||
Debt interest rate (percent) | 7.50% | 7.50% | 7.50% | ||||
Debt maturity date | Feb. 15, 2019 | ||||||
Notes | 2.28% Notes due March 15, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 1,100 | 1,100 | |||||
Debt interest rate (percent) | 2.28% | ||||||
Debt maturity date | Mar. 15, 2019 | ||||||
Notes | 4.75% Notes due March 1, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 323 | 599 | |||||
Debt interest rate (percent) | 4.75% | 4.75% | |||||
Debt maturity date | Mar. 1, 2021 | ||||||
Notes | 2.70% Notes due December 15, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 400 | 400 | |||||
Debt interest rate (percent) | 2.70% | ||||||
Debt maturity date | Dec. 15, 2022 | ||||||
Notes | 2.85% Notes due March 15, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 400 | 400 | |||||
Debt interest rate (percent) | 2.85% | ||||||
Debt maturity date | Mar. 15, 2023 | ||||||
Notes | 3.80% Notes due March 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 1,100 | 1,100 | |||||
Debt interest rate (percent) | 3.80% | ||||||
Debt maturity date | Mar. 15, 2024 | ||||||
Notes | 7.65% Debentures due March 1, 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 167 | 175 | |||||
Debt interest rate (percent) | 7.65% | 7.65% | |||||
Debt maturity date | Mar. 1, 2027 | ||||||
Notes | 3.95% Notes due February 16, 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 600 | 0 | |||||
Debt interest rate (percent) | 3.95% | 3.95% | |||||
Debt maturity date | Feb. 16, 2028 | ||||||
Notes | 6.00% Notes due March 1, 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 282 | 493 | |||||
Debt interest rate (percent) | 6.00% | 6.00% | |||||
Debt maturity date | Mar. 1, 2041 | ||||||
Notes | 4.88% Notes due March 15, 2044 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 411 | 800 | |||||
Debt interest rate (percent) | 4.88% | 4.88% | |||||
Debt maturity date | Mar. 15, 2044 | ||||||
Notes | 4.50% Euro Bonds due April 26, 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 0 | 533 | |||||
Debt interest rate (percent) | 4.50% | ||||||
Debt maturity date | Apr. 26, 2017 | ||||||
Notes | Floating Rate Euro Notes Due February Twelve Two Thousand and Twenty [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 337 | 0 | |||||
Notes | 0.63% Euro Notes due August 17, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 695 | 638 | |||||
Debt interest rate (percent) | 0.63% | 0.63% | |||||
Debt maturity date | Aug. 17, 2021 | ||||||
Notes | 1.50% Euro Notes due November 17, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 691 | 635 | |||||
Debt interest rate (percent) | 1.50% | 1.50% | |||||
Debt maturity date | Nov. 17, 2025 | ||||||
Notes | 1.63% Euro Notes due October 30, 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 669 | 0 | |||||
Debt interest rate (percent) | 1.63% | 1.63% | |||||
Debt maturity date | Oct. 30, 2026 | ||||||
Notes | 3.13% Sterling Notes due February 17, 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 630 | 564 | |||||
Debt interest rate (percent) | 3.13% | 3.13% | |||||
Debt maturity date | Feb. 17, 2029 | ||||||
Lease and other obligations | |||||||
Debt Instrument [Line Items] | |||||||
Total debt | $ 75 | $ 75 |
Debt and Financing Activitie101
Debt and Financing Activities - Long-Term Debt (Details) | Mar. 26, 2018USD ($) | Feb. 16, 2018USD ($) | Feb. 12, 2018EUR (€) | Feb. 07, 2018USD ($) | Feb. 17, 2017USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Feb. 17, 2017EUR (€) | Feb. 17, 2017GBP (£) | Mar. 31, 2015 |
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 7,880,000,000 | $ 8,362,000,000 | |||||||||||
Pre-tax loss on debt extinguishment | 122,000,000 | 0 | $ 0 | ||||||||||
Repayments of long-term debt | 2,287,000,000 | $ 1,601,000,000 | 1,598,000,000 | ||||||||||
Future principal payments of long-term debt in 2019 | 1,129,000,000 | ||||||||||||
Future principal payments of long-term debt in 2020 | 353,000,000 | ||||||||||||
Future principal payments of long-term debt in 2021 | 337,000,000 | ||||||||||||
Future principal payments of long-term debt in 2022 | 634,000,000 | ||||||||||||
Future principal payments of long-term debt in 2023 | 403,000,000 | ||||||||||||
Future principal payments of long-term debt, thereafter | $ 5,024,000,000 | ||||||||||||
Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Net proceeds from debt | $ 1,500,000,000 | $ 1,800,000,000 | |||||||||||
Redemption price (percent) | 101.00% | 101.00% | |||||||||||
Repayments of long-term debt | $ 93,000,000 | ||||||||||||
1.40% Notes due March 15, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt interest rate (percent) | 1.40% | ||||||||||||
Repayments of long-term debt | € | € 500,000,000 | ||||||||||||
Long-term Debt, Current Maturities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 1,129,000,000 | $ 1,057,000,000 | |||||||||||
Notes and Debentures Extinguished February 7, 2018 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate consideration of debt paid to redeem debt | $ 1,050,000,000 | ||||||||||||
Redemption price (percent) | 100.00% | ||||||||||||
Debt redeemed | $ 936,000,000 | ||||||||||||
Debt premiums | 99,000,000 | ||||||||||||
Unpaid interest | 20,000,000 | ||||||||||||
Pre-tax loss on debt extinguishment | 109,000,000 | ||||||||||||
After-tax loss on debt extinguishment | 70,000,000 | ||||||||||||
Amortization of debt premium | 99,000,000 | ||||||||||||
Write-off of debt issuance costs | $ 10,000,000 | ||||||||||||
Floating Rate Euro Notes Due February Twelve Two Thousand and Twenty [Member] | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | 337,000,000 | 0 | |||||||||||
Aggregate principal amount | € | € 250,000,000 | ||||||||||||
Basis spread on variable rate (percent) | 0.15% | ||||||||||||
1.63% Euro Notes due October 30, 2026 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 669,000,000 | 0 | |||||||||||
Aggregate principal amount | € | € 500,000,000 | ||||||||||||
Debt interest rate (percent) | 1.63% | 1.63% | |||||||||||
3.95% Notes due February 16, 2028 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 600,000,000 | 0 | |||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||||
Debt interest rate (percent) | 3.95% | 3.95% | |||||||||||
0.63% Euro Notes due August 17, 2021 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 695,000,000 | 638,000,000 | |||||||||||
Aggregate principal amount | € | € 600,000,000 | ||||||||||||
Debt interest rate (percent) | 0.63% | 0.63% | 0.63% | ||||||||||
4.00% Euro Bonds due October 18, 2016 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of long-term debt | 385,000,000 | ||||||||||||
4.00% Euro Bonds due October 18, 2016 | Notes Payable | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of long-term debt | € | € 350,000,000 | ||||||||||||
4.50% Euro Bonds due April 26, 2017 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 0 | 533,000,000 | |||||||||||
Debt interest rate (percent) | 4.50% | ||||||||||||
Repayments of long-term debt | € | € 500,000,000 | ||||||||||||
5.70% Notes due March 1, 2017 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt interest rate (percent) | 5.70% | ||||||||||||
Repayments of long-term debt | 500,000,000 | ||||||||||||
1.29% Notes Due March 10, 2017 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt interest rate (percent) | 1.29% | ||||||||||||
Repayments of long-term debt | 700,000,000 | ||||||||||||
Floating Rate Notes | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of long-term debt | $ 400,000,000 | ||||||||||||
0.95% Notes Due December 4 2015 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt interest rate (percent) | 0.95% | ||||||||||||
Repayments of long-term debt | 500,000,000 | ||||||||||||
3.25% Notes Due March 1 2016 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt interest rate (percent) | 3.25% | ||||||||||||
Repayments of long-term debt | $ 600,000,000 | ||||||||||||
1.50% Euro Notes due November 17, 2025 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 691,000,000 | 635,000,000 | |||||||||||
Aggregate principal amount | € | € 600,000,000 | ||||||||||||
Debt interest rate (percent) | 1.50% | 1.50% | 1.50% | ||||||||||
3.13% Sterling Notes due February 17, 2029 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 630,000,000 | 564,000,000 | |||||||||||
Aggregate principal amount | £ | £ 450,000,000 | ||||||||||||
Debt interest rate (percent) | 3.13% | 3.13% | 3.13% | ||||||||||
7.50% Notes due February 15, 2019 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 0 | 350,000,000 | |||||||||||
Debt interest rate (percent) | 7.50% | 7.50% | 7.50% | ||||||||||
Aggregate consideration of debt paid to redeem debt | $ 317,000,000 | ||||||||||||
Redemption price (percent) | 100.00% | ||||||||||||
Debt redeemed | $ 302,000,000 | ||||||||||||
Debt premiums | 13,000,000 | ||||||||||||
Unpaid interest | 2,000,000 | ||||||||||||
Pre-tax loss on debt extinguishment | 13,000,000 | ||||||||||||
After-tax loss on debt extinguishment | $ 8,000,000 | ||||||||||||
4.75% Notes due March 1, 2021 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 323,000,000 | 599,000,000 | |||||||||||
Debt interest rate (percent) | 4.75% | 4.75% | |||||||||||
7.65% Debentures due March 1, 2027 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 167,000,000 | 175,000,000 | |||||||||||
Debt interest rate (percent) | 7.65% | 7.65% | |||||||||||
6.00% Notes due March 1, 2041 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 282,000,000 | 493,000,000 | |||||||||||
Debt interest rate (percent) | 6.00% | 6.00% | |||||||||||
4.88% Notes due March 15, 2044 | Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total debt outstanding | $ 411,000,000 | $ 800,000,000 | |||||||||||
Debt interest rate (percent) | 4.88% | 4.88% |
Debt and Financing Activitie102
Debt and Financing Activities - Revolving Credit Facilities (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Global Facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing capacity | $ 3,500,000,000 | ||
Aggregate sublimit | 3,150,000,000 | ||
Credit facility outstanding, long-term | $ 0 | $ 0 | |
Debt to capital ratio | 0.65 | ||
Amount borrowed under facility | $ 0 | $ 0 | $ 0 |
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing capacity | $ 242,000,000 | ||
Bilateral Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Amount borrowed under facility | 641,000,000 | ||
Repayments of lines of credit | $ 635,000,000 | ||
Minimum | Bilateral Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate (percent) | 0.20% | ||
Maximum | Bilateral Lines of Credit | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate (percent) | 6.00% |
Debt and Financing Activitie103
Debt and Financing Activities - Commercial Paper (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | |||
Commercial paper issuances | $ 20,542,000,000 | $ 8,283,000,000 | $ 0 |
Commercial paper repaid | 20,725,000,000 | 8,100,000,000 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing capacity (up to) | 3,500,000,000 | ||
Commercial paper outstanding | $ 0 | $ 183,000,000 | |
Weighted average interest rate (percent) | 1.20% |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||
VIE consolidated assets | $ 819 | $ 821 |
VIE consolidated liabilities | 92 | 149 |
Unconsolidated VIE maximum exposure to loss | $ 1,100 | $ 1,100 |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) | 12 Months Ended | ||
Mar. 31, 2018USD ($)$ / shares | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of eligible compensation (up to) | 75.00% | ||
Contribution expenses | $ 82,000,000 | $ 98,000,000 | $ 99,000,000 |
First Part Of Pay Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match employee contributions (as a percent) | 100.00% | ||
Employee contributions (as a percent) | 3.00% | ||
Second Part Of Pay Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match employee contributions (as a percent) | 50.00% | ||
Employee contributions (as a percent) | 2.00% | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Highest average pay period | 60 months | ||
Plan years prior to freeze date | 15 years | ||
Percentage of obligation | 1.00% | ||
Remediation period if shortfall exceeds threshold amount | 2 years | ||
Unexpected actuarial losses (as a percent) (exceeding) | 10.00% | ||
Expected amortization of actuarial loss | $ (9,000,000) | (14,000,000) | |
Expected benefit payments in 2019 | 97,000,000 | ||
Expected benefit payments in 2020 | 184,000,000 | ||
Expected benefit payments in 2021 | 65,000,000 | ||
Expected benefit payments in 2022 | 70,000,000 | ||
Expected benefit payments in 2023 | 67,000,000 | ||
Expected benefit payments in 2024 through 2028 | 339,000,000 | ||
Expected contributions in next fiscal year | $ 55,000,000 | ||
Unit value of cash and cash equivalents (in dollars per share) | $ / shares | $ 1 | ||
United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credit | $ 0 | 0 | 0 |
Actuarial loss | 8,000,000 | 11,000,000 | 44,000,000 |
Projected benefit obligation | $ 485,000,000 | $ 513,000,000 | 535,000,000 |
Discount rates | 3.69% | 3.39% | |
Increase (decrease) in basis points | 0.0030 | ||
United States | Pension Plans, Defined Benefit | Equity Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 26.00% | 50.00% | |
United States | Pension Plans, Defined Benefit | Fixed Income Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 70.00% | 45.00% | |
United States | Pension Plans, Defined Benefit | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 4.00% | 5.00% | |
United States | Unfunded plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 160,000,000 | $ 176,000,000 | |
Non-U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credit | 0 | 2,000,000 | 2,000,000 |
Actuarial loss | 6,000,000 | 4,000,000 | 5,000,000 |
Projected benefit obligation | $ 1,035,000,000 | $ 943,000,000 | 899,000,000 |
Discount rates | 2.35% | 2.35% | |
Increase (decrease) in basis points | 0 | ||
Percentage of total plan contribution (exceeding) | 5.00% | ||
Amounts of plan exceeding total plan contribution | $ 16,000,000 | $ 18,000,000 | $ 23,000,000 |
Funded status (as a percent) | 75.00% | ||
Amounts accrued for liability | $ 0 | ||
Non-U.S. Plans | Unfunded plan | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 297,000,000 | 276,000,000 | |
Norwegian Public Service Pension Fund (SPK) | Non-U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of plan asset value | $ 38,000,000 | $ 37,000,000 |
Pension Benefits - Schedule Of
Pension Benefits - Schedule Of Net Periodic Expense For Pension Plans (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 3 | $ 5 | $ 4 |
Interest cost on projected benefit obligation | 14 | 13 | 18 |
Expected return on assets | (19) | (15) | (19) |
Amortization of unrecognized actuarial loss and prior service costs | 6 | 11 | 42 |
Curtailment/settlement loss (gain) | 2 | 0 | 2 |
Net periodic expense | 6 | 14 | 47 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 15 | 15 | 20 |
Interest cost on projected benefit obligation | 22 | 23 | 24 |
Expected return on assets | (26) | (26) | (30) |
Amortization of unrecognized actuarial loss and prior service costs | 5 | 4 | 3 |
Curtailment/settlement loss (gain) | 1 | (2) | 0 |
Net periodic expense | $ 17 | $ 14 | $ 17 |
Pension Benefits - Schedule 107
Pension Benefits - Schedule Of Changes In Benefit Obligations And Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Non-U.S. Plans | |||
Change in benefit obligations | |||
Benefit obligation at beginning of period | $ 943 | $ 899 | |
Service cost | 15 | 15 | $ 20 |
Interest cost | 22 | 23 | 24 |
Actuarial loss (gain) | (15) | 98 | |
Benefits paid | (42) | (34) | |
Expenses paid | (1) | (1) | |
Amendments | (2) | 0 | |
Acquisitions | 0 | 37 | |
Foreign exchange impact and other | 115 | (94) | |
Benefit obligation at end of period | 1,035 | 943 | 899 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 623 | 607 | |
Actual return on plan assets | 21 | 76 | |
Employer and participant contributions | 17 | 16 | |
Benefits paid | (42) | (34) | |
Expenses paid | (1) | (1) | |
Acquisitions | 0 | 35 | |
Foreign exchange impact and other | 69 | (76) | |
Fair value of plan assets at end of period | 687 | 623 | 607 |
Funded status at end of period | (348) | (320) | |
Amounts recognized on the balance sheet | |||
Assets | 19 | 4 | |
Current liabilities | (7) | (7) | |
Long-term liabilities | (360) | (317) | |
Total | (348) | (320) | |
United States | |||
Change in benefit obligations | |||
Benefit obligation at beginning of period | 513 | 535 | |
Service cost | 3 | 5 | 4 |
Interest cost | 14 | 13 | 18 |
Actuarial loss (gain) | 1 | (11) | |
Benefits paid | (44) | (26) | |
Expenses paid | (2) | (3) | |
Amendments | 0 | 0 | |
Acquisitions | 0 | 0 | |
Foreign exchange impact and other | 0 | 0 | |
Benefit obligation at end of period | 485 | 513 | 535 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 293 | 262 | |
Actual return on plan assets | 35 | 22 | |
Employer and participant contributions | 53 | 38 | |
Benefits paid | (44) | (26) | |
Expenses paid | (2) | (3) | |
Acquisitions | 0 | 0 | |
Foreign exchange impact and other | 0 | 0 | |
Fair value of plan assets at end of period | 335 | 293 | $ 262 |
Funded status at end of period | (150) | (220) | |
Amounts recognized on the balance sheet | |||
Assets | 10 | 0 | |
Current liabilities | (39) | (17) | |
Long-term liabilities | (121) | (203) | |
Total | $ (150) | $ (220) |
Pension Benefits - Schedule 108
Pension Benefits - Schedule Of Projected Benefit Obligation, Accumulated Benefit Obligation And Fair Value Of Plan Assets For Pension Plans (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 485 | $ 513 | $ 535 |
Accumulated benefit obligation | 485 | 513 | |
Fair value of plan assets | 335 | 293 | 262 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 1,035 | 943 | 899 |
Accumulated benefit obligation | 990 | 902 | |
Fair value of plan assets | $ 687 | $ 623 | $ 607 |
Pension Benefits - Schedule 109
Pension Benefits - Schedule Of Amounts Recognized In Accumulated Other Comprehensive Income (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 134 | $ 157 |
Prior service credit | 0 | 0 |
Total | 134 | 157 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 162 | 160 |
Prior service credit | (5) | (3) |
Total | $ 157 | $ 157 |
Pension Benefits - Schedule 110
Pension Benefits - Schedule Of Other Changes In Accumulated Other Comprehensive Income (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ (15) | $ (17) | $ 9 |
Prior service credit | 0 | 0 | 0 |
Amortization of: | |||
Net actuarial loss | (8) | (11) | (44) |
Prior service credit (cost) | 0 | 0 | 0 |
Foreign exchange impact and other | 0 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | (23) | (28) | (35) |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | (11) | 47 | (38) |
Prior service credit | (2) | 0 | (5) |
Amortization of: | |||
Net actuarial loss | (6) | (4) | (5) |
Prior service credit (cost) | 0 | 2 | 2 |
Foreign exchange impact and other | 19 | (10) | (1) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 0 | $ 35 | $ (47) |
Pension Benefits - Schedule 111
Pension Benefits - Schedule Of Weighted-Average Assumptions Used to Estimate Net Periodic Pension Expense and Actuarial Present Value of Benefit Obligations (Details) - Pension Plans, Defined Benefit | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
United States | |||
Net periodic pension expense | |||
Discount rates | 3.55% | 3.40% | 3.36% |
Rate of increase in compensation | 4.00% | 4.00% | 4.00% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.75% |
Benefit obligation | |||
Discount rates | 3.69% | 3.39% | 3.27% |
Rate of increase in compensation | 4.00% | 4.00% | |
Non-U.S. Plans | |||
Net periodic pension expense | |||
Discount rates | 2.34% | 2.72% | 2.36% |
Rate of increase in compensation | 2.72% | 2.76% | 2.80% |
Expected long-term rate of return on plan assets | 4.03% | 4.51% | 4.87% |
Benefit obligation | |||
Discount rates | 2.35% | 2.35% | 2.84% |
Rate of increase in compensation | 2.59% | 3.18% | 2.98% |
Pension Benefits - Summary Of P
Pension Benefits - Summary Of Pension Plan Assets Using Fair Value Hierarchy By Asset Class (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 335 | $ 293 | $ 262 |
United States | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 217 | 93 | |
United States | Investment Assets at Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39 | 8 | |
United States | Investment Assets at Fair Value | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 17 | |
United States | Investment Assets at Fair Value | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 85 | 27 | |
United States | Investment Assets at Fair Value | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 12 | |
United States | Investment Assets at Fair Value | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 10 | |
United States | Investment Assets at Fair Value | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 19 | |
United States | Investment Assets at Fair Value | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 25 | |
United States | Investment Assets at Fair Value | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39 | 8 | |
United States | Investment Assets at Fair Value | Level 1 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 17 | |
United States | Investment Assets at Fair Value | Level 1 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 68 | |
United States | Investment Assets at Fair Value | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 2 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 2 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 85 | 27 | |
United States | Investment Assets at Fair Value | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 58 | 12 | |
United States | Investment Assets at Fair Value | Level 2 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7 | 10 | |
United States | Investment Assets at Fair Value | Level 2 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 19 | |
United States | Investment Assets at Fair Value | Level 2 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 2 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Investment Assets at Fair Value | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
United States | Assets held at NAV practical expedient (1) | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 131 | |
United States | Assets held at NAV practical expedient (1) | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 53 | 59 | |
United States | Assets held at NAV practical expedient (1) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 10 | |
United States | Assets held at NAV practical expedient (1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 687 | 623 | $ 607 |
Non-U.S. Plans | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 598 | 403 | |
Non-U.S. Plans | Investment Assets at Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 2 | |
Non-U.S. Plans | Investment Assets at Fair Value | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135 | 53 | |
Non-U.S. Plans | Investment Assets at Fair Value | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 118 | 92 | |
Non-U.S. Plans | Investment Assets at Fair Value | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 250 | 199 | |
Non-U.S. Plans | Investment Assets at Fair Value | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 49 | |
Non-U.S. Plans | Investment Assets at Fair Value | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 8 | |
Non-U.S. Plans | Investment Assets at Fair Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | ||
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 187 | 130 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 2 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41 | 13 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 24 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 114 | 69 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 20 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22 | ||
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 407 | 257 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 94 | 40 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 113 | 68 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 136 | 120 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 29 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 16 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Common and preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 10 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Mortgage-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Asset-backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 6 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | ||
Non-U.S. Plans | Assets held at NAV practical expedient (1) | Equity commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 94 | |
Non-U.S. Plans | Assets held at NAV practical expedient (1) | Fixed income commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 53 | |
Non-U.S. Plans | Assets held at NAV practical expedient (1) | Real estate funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 13 | |
Non-U.S. Plans | Assets held at NAV practical expedient (1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 62 | $ 60 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule Of Net Periodic Expense (Income) For Postretirement Welfare Benefits (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 2 | 2 | 4 |
Amortization of unrecognized actuarial gain and prior service credit | (6) | (1) | 0 |
Net periodic expense | $ (3) | $ 2 | $ 5 |
Postretirement Benefits - Sc114
Postretirement Benefits - Schedule Of Changes In Benefit Obligations For Postretirement Welfare Plans (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Change in benefit obligations | |||
Benefit obligation at beginning of period | $ 82 | $ 98 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 2 | 2 | 4 |
Actuarial gain | (1) | (13) | |
Benefits paid | (6) | (6) | |
Benefit obligation at end of period | $ 78 | $ 82 | $ 98 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains | $ 8 | $ 11 | |
Net prior service credits for post retirement plans | 11 | 14 | |
Net actuarial gains for changes in benefit obligations | 3 | 14 | |
Net prior service credits | 3 | $ 3 | |
Expected amortization of actuarial gain from stockholders' equity in 2018 | 5 | ||
Amortization of actuarial gain from stockholders' equity | 6 | ||
Expected benefit payments in 2019 | 8 | ||
Expected benefit payments in 2020 | 7 | ||
Expected benefit payments in 2021 | 7 | ||
Expected benefit payments in 2022 | 7 | ||
Expected benefit payments in 2023 | 7 | ||
Other postretirement plan expected future benefit payments, 2024 through 2028 | 28 | ||
Expected contributions for postretirement benefit plans in 2018 | $ 8 | ||
Weighted-average discount rates used to estimate postretirement welfare benefit expenses | 3.83% | 3.68% | 3.59% |
Weighted-average discount rates for actuarial present value of benefit obligations | 3.92% | 3.82% | 3.68% |
Amortization period | 3 years | ||
Assumed health care cost trend in measuring accumulated postretirement benefit obligation for prescription drugs (as a percent) | 3.00% | 3.00% |
Hedging Activities - Narrative
Hedging Activities - Narrative (Details) € in Millions, £ in Millions | 12 Months Ended | |||||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2018GBP (£) | |
Derivative [Line Items] | ||||||
Total debt outstanding | $ 8,362,000,000 | $ 7,880,000,000 | ||||
Losses from net investment hedges | $ 268,000,000 | 13,000,000 | ||||
(Losses) gains recorded in other comprehensive income | (30,000,000) | (19,000,000) | $ 9,000,000 | |||
Derivatives Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
(Losses) gains recorded in other comprehensive income | (30,000,000) | (19,000,000) | 9,000,000 | |||
Forward Contracts | Derivatives Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 243,000,000 | 162,000,000 | ||||
Foreign Exchange Contract | Derivatives Not Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
Net gains on derivatives | 0 | 5,000,000 | $ 60,000,000 | |||
Currency Swap | Derivatives Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 2,663,000,000 | 3,412,000,000 | ||||
Euro Denominated Notes | Notes | ||||||
Derivative [Line Items] | ||||||
Total debt outstanding | € | € 1,950 | |||||
British Pound Sterling Denominated Notes | Notes | ||||||
Derivative [Line Items] | ||||||
Total debt outstanding | £ | £ 450 | |||||
Canada, Dollars | Foreign Exchange Contract | Derivatives Not Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | 173,000,000 | |||||
United Kingdom, Pounds | Foreign Exchange Contract | Derivatives Not Designated for Hedge Accounting | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 62,000,000 | $ 29,000,000 | ||||
Net Investment Hedging | ||||||
Derivative [Line Items] | ||||||
Losses recorded in other comprehensive income | $ 7,000,000 | |||||
Net Investment Hedging | Cross Currency Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | £ | £ 432 |
Hedging Activities - Schedule o
Hedging Activities - Schedule of Information Regarding Fair Value of Derivatives on a Gross Basis (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Derivatives designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | $ 29 | $ 156 |
Fair value of derivative liability, gross fair value | 229 | 0 |
Derivatives not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 1 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Foreign Exchange Contract | Derivatives designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 15 | 17 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 81 | 81 |
Foreign Exchange Contract | Derivatives designated for hedge accounting | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 14 | 32 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 81 | 162 |
Foreign Exchange Contract | Derivatives not designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 1 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 13 | 198 |
Foreign Exchange Contract | Derivatives not designated for hedge accounting | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 0 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative liability, notional amount | 16 | 37 |
Currency Swap | Derivatives designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 17 |
Fair value of derivative liability, gross fair value | 7 | 0 |
Derivative asset, notional amount | 504 | |
Derivative liability, notional amount | 174 | |
Currency Swap | Derivatives designated for hedge accounting | Other Noncurrent Assets/Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 90 |
Fair value of derivative liability, gross fair value | 222 | 0 |
Derivative asset, notional amount | $ 3,508 | |
Derivative liability, notional amount | $ 2,489 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying amount of liabilities | $ 7,900,000,000 | $ 8,400,000,000 | |
Pre-tax charge | 13,000,000 | 14,000,000 | $ 229,000,000 |
Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value on a nonrecurring basis | 0 | ||
Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated fair value of liabilities | 8,100,000,000 | 8,700,000,000 | |
Money Market Funds | Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market funds | 799,000,000 | $ 478,000,000 | |
Intangible Asset and Store Assets Impairment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Pre-tax charge | 479,000,000 | ||
Restructuring charges, after tax | $ 443,000,000 |
Lease Obligations - Schedule Of
Lease Obligations - Schedule Of Future Minimum Rental Payments For Operating Leases (Details) $ in Millions | Mar. 31, 2018USD ($) |
Noncancelable Operating Leases | |
2,019 | $ 502 |
2,020 | 443 |
2,021 | 383 |
2,022 | 333 |
2,023 | 277 |
Thereafter | 1,134 |
Total minimum lease payments | $ 3,072 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Future minimum lease payments for sale leaseback transaction | $ 62 | ||
Minimum sublease rentals, due under future noncancelable subleases | 147 | ||
Rent expense | $ 568 | $ 474 | $ 433 |
Renewal option increments for leases | 5 years | ||
Building | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 1 year | ||
Building | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 16 years | ||
Equipment | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 1 year | ||
Equipment | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 7 years |
Financial Guarantees and War121
Financial Guarantees and Warranties (Details) | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantee obligations, expiring in 2019 | $ 178,000,000 |
Guarantee obligations, expiring in 2020 | 18,000,000 |
Guarantee obligations, expiring in 2021 | 7,000,000 |
Guarantee obligations, expiring in 2022 | 10,000,000 |
Guarantee obligations, expiring in 2023 | 18,000,000 |
Guarantee obligations, expiring after 2023 | 107,000,000 |
Guarantee Obligations Inventory Repurchase Guarantees | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure | $ 234,000,000 |
Guarantee Obligations Inventory Repurchase Guarantees | Minimum | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 1 year |
Guarantee Obligations Inventory Repurchase Guarantees | Maximum | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 2 years |
Guarantee Obligations Customers Debt | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure | $ 104,000,000 |
Guarantee Obligations Customers Debt | Minimum | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 1 year |
Guarantee Obligations Customers Debt | Maximum | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 12 years |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Letters of credit outstanding | $ 259,000,000 |
Commitments and Contingent L122
Commitments and Contingent Liabilities (Details) $ in Millions | Apr. 03, 2018statecity | Dec. 30, 2017investment_fund | Dec. 29, 2017investment_fund | May 02, 2017defendant | Apr. 16, 2013statedefendantrelator | Sep. 30, 2017state | Jan. 31, 2017USD ($) | Mar. 31, 2018USD ($)sitecomplaint | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Oct. 17, 2017complaint |
Loss Contingencies [Line Items] | ||||||||||||
Number of complaints served | complaint | 394 | |||||||||||
Payments for legal settlements | $ 0 | $ 150 | $ 0 | |||||||||
Anti-Kickback Claim | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of relators | relator | 2 | |||||||||||
Number of states filed on behalf of | state | 21 | |||||||||||
Number of additional defendants | defendant | 5 | |||||||||||
Investigation into Factors Contributing to Increase in Opioid-related Hospitalizations and Deaths | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of states filed on behalf of | state | 40 | |||||||||||
Environmental Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of sites | site | 5 | |||||||||||
Remediation costs | $ 9.5 | |||||||||||
Hazardous substance sites, number | site | 14 | |||||||||||
Estimated environmental assessment and cleanup costs | $ 1,380 | |||||||||||
Estimated loss | $ 21.6 | |||||||||||
Environmental Litigation | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Time frame of disbursements | Apr. 1, 2018 | |||||||||||
Environmental Litigation | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Time frame of disbursements | Mar. 31, 2048 | |||||||||||
Polygon European Equity Opportunity Master Fund et al. v. McKesson Europe Holdings GmbH & Co. KGaA | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs | investment_fund | 2 | |||||||||||
Davidson Kempner International (BVI) Ltd. et al. v. McKesson Europe Holdings GmbH & Co. KGaA | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of plaintiffs | investment_fund | 4 | |||||||||||
Cherokee Nation v. AmerisourceBergen, et al. | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of additional defendants | defendant | 5 | |||||||||||
In re McKesson Corporation Stockholder Derivative Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of complaints served | complaint | 4 | |||||||||||
Drug Enforcement Administration, Department of Justice and U.S. Attorneys' Investigative Claims | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation pre-tax charge | $ 150 | |||||||||||
Payments for legal settlements | $ 150 | |||||||||||
Subsequent Event | United States ex rel. Omni Healthcare Inc. v. McKesson Corporation, et al. | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of states filed on behalf of | state | 30 | |||||||||||
Number of cities filed on behalf of | city | 2 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Apr. 30, 2018shares | Mar. 31, 2018USD ($)vote | Aug. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Apr. 30, 2017shares | Mar. 31, 2017USD ($)shares | Feb. 29, 2016USD ($) | Jul. 31, 2015$ / shares | Apr. 30, 2017$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2018USD ($)vote$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | May 24, 2018USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | May 31, 2015USD ($) | Mar. 31, 2015USD ($) | |
Dividends Payable [Line Items] | ||||||||||||||||||
Number of votes | vote | 1 | 1 | ||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 1.30 | $ 1.12 | $ 1.08 | |||||||||||||||
Shares repurchase plans authorized | $ 4,000,000,000 | $ 2,000,000,000 | $ 500,000,000 | |||||||||||||||
Shares bought (in shares) | shares | 10.5 | 15.5 | 8.7 | |||||||||||||||
Shares repurchased | $ 1,650,000,000 | $ 2,250,000,000 | $ 1,504,000,000 | |||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 151.06 | $ 141.16 | $ 173.64 | |||||||||||||||
Total authorization outstanding for repurchases of common stock | $ 1,096,000,000 | $ 2,746,000,000 | $ 996,000,000 | $ 1,096,000,000 | $ 2,746,000,000 | $ 996,000,000 | $ 0 | |||||||||||
Repurchase of common stock | 1,650,000,000 | 2,250,000,000 | $ 1,504,000,000 | |||||||||||||||
Treasury stock retired (in shares) | shares | 115.5 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | 604,000,000 | (688,000,000) | ||||||||||||||||
Net foreign currency translation gains (losses) | 609,000,000 | (659,000,000) | $ 172,000,000 | |||||||||||||||
Losses from net investment hedges | $ 268,000,000 | $ 13,000,000 | ||||||||||||||||
Treasury Stock | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Repurchase of common stock (in shares) | shares | 11 | 16 | 9 | |||||||||||||||
Repurchase of common stock | $ 1,614,000,000 | $ 2,200,000,000 | $ 1,504,000,000 | |||||||||||||||
Retirement of common stock | 7,800,000,000 | |||||||||||||||||
Retained Earnings | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Retirement of common stock | 6,400,000,000 | |||||||||||||||||
Additional Paid-in Capital | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Repurchase of common stock (in shares) | shares | 36 | |||||||||||||||||
Repurchase of common stock | 50,000,000 | |||||||||||||||||
Retirement of common stock | 1,500,000,000 | |||||||||||||||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ 804,000,000 | (644,000,000) | 113,000,000 | |||||||||||||||
Net foreign currency translation gains (losses) | 804,000,000 | (624,000,000) | $ 113,000,000 | |||||||||||||||
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Net foreign currency translation gains (losses) | 189,000,000 | (74,000,000) | ||||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ (4,000,000) | $ (5,000,000) | ||||||||||||||||
Open Market Transactions | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 4.5 | |||||||||||||||||
Shares repurchased | $ 854,000,000 | |||||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 144.43 | $ 140.96 | $ 192.27 | |||||||||||||||
Repurchase of common stock (in shares) | shares | 3.5 | 14.1 | ||||||||||||||||
Repurchase of common stock | $ 500,000,000 | $ 2,000,000,000 | ||||||||||||||||
Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 0.3 | 1.4 | 1.7 | 4.2 | ||||||||||||||
Shares repurchased | $ 500,000,000 | $ 400,000,000 | $ 250,000,000 | $ 250,000,000 | $ 650,000,000 | |||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 143.19 | $ 154.04 | ||||||||||||||||
June 2017 Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 1.5 | |||||||||||||||||
August 2017 Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 2.7 | |||||||||||||||||
March 2018 ASR Program | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 2.5 | |||||||||||||||||
Minimum | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.28 | |||||||||||||||||
Maximum | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.34 | |||||||||||||||||
Subsequent Event | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares repurchase plans authorized | $ 4,000,000,000 | |||||||||||||||||
Total authorization outstanding for repurchases of common stock | $ 5,100,000,000 | |||||||||||||||||
Subsequent Event | March 2018 ASR Program | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 0.5 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | Oct. 31, 2016 | Oct. 31, 2015 | May 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||||||
Total Number of Shares Purchased (in shares) | 10.5 | 15.5 | 8.7 | |||
Average price paid per share (in dollars per share) | $ 151.06 | $ 141.16 | $ 173.64 | |||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||
Beginning balance | $ 2,746,000,000 | $ 996,000,000 | $ 0 | |||
Shares repurchase plans authorized | $ 4,000,000,000 | $ 2,000,000,000 | $ 500,000,000 | |||
Shares repurchased | (1,650,000,000) | (2,250,000,000) | (1,504,000,000) | |||
Ending balance | $ 1,096,000,000 | $ 2,746,000,000 | $ 996,000,000 |
Stockholders' Equity - Sched125
Stockholders' Equity - Schedule of Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | $ 604 | $ (688) | |
Amounts reclassified to earnings | 5 | 29 | |
Other Comprehensive Income (Loss), Net of Tax | 609 | (659) | $ 172 |
Foreign Currency Translation Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 804 | (644) | 113 |
Amounts reclassified to earnings | 0 | 20 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 804 | (624) | 113 |
Tax expense (benefit) | 0 | 1 | 23 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Losses on Net Investment Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (180) | (8) | 0 |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (180) | (8) | 0 |
Tax expense (benefit) | 95 | 5 | 0 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (30) | (19) | 6 |
Amounts reclassified to earnings | 0 | 0 | 3 |
Other Comprehensive Income (Loss), Net of Tax | (30) | (19) | 9 |
Tax expense (benefit) | 9 | 0 | 0 |
Reclassification, tax expense | 0 | 0 | 0 |
Net actuarial gain (loss) and prior service credit (cost) arising during period, net of income tax expense (benefit) of $2, $4 and $13 (6) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 25 | (20) | 23 |
Tax expense (benefit) | (2) | (4) | (13) |
Reclassification, tax expense | 2 | 4 | 18 |
Amortization of actuarial gain (loss), prior service cost and transition obligation, net of income tax expense (benefit) of $2, $4 and $18 (7) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 5 | 9 | 30 |
Changes in Retirement-Related Benefit Plans, Foreign Currency Translation Adjustments and Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (15) | 3 | (3) |
Tax expense (benefit) | 0 | 0 | 0 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ 15 | $ (8) | $ 50 |
Stockholders' Equity - Sched126
Stockholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | $ 11,273 | $ 9,008 | $ 8,085 |
Other comprehensive income (loss) before reclassifications | 604 | (688) | |
Amounts reclassified to earnings | 5 | 29 | |
Other Comprehensive Income (Loss), Net of Tax | 609 | (659) | 172 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (185) | 79 | |
Other comprehensive income (loss) attributable to McKesson | 424 | (580) | 152 |
Ending balance | 10,057 | 11,273 | 9,008 |
Foreign Currency Translation Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (1,873) | (1,323) | |
Other comprehensive income (loss) before reclassifications | 804 | (644) | 113 |
Amounts reclassified to earnings | 0 | 20 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 804 | (624) | 113 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (189) | 74 | |
Other comprehensive income (loss) attributable to McKesson | 615 | (550) | |
Ending balance | (1,258) | (1,873) | (1,323) |
Unrealized Losses on Net Investment Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (8) | 0 | |
Other comprehensive income (loss) before reclassifications | (180) | (8) | 0 |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (180) | (8) | 0 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to McKesson | (180) | (8) | |
Ending balance | (188) | (8) | 0 |
Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (31) | (12) | |
Other comprehensive income (loss) before reclassifications | (30) | (19) | 6 |
Amounts reclassified to earnings | 0 | 0 | 3 |
Other Comprehensive Income (Loss), Net of Tax | (30) | (19) | 9 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to McKesson | (30) | (19) | |
Ending balance | (61) | (31) | (12) |
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (229) | (226) | |
Other comprehensive income (loss) before reclassifications | 10 | (17) | |
Amounts reclassified to earnings | 5 | 9 | |
Other Comprehensive Income (Loss), Net of Tax | 15 | (8) | |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 4 | 5 | |
Other comprehensive income (loss) attributable to McKesson | 19 | (3) | |
Ending balance | (210) | (229) | (226) |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (2,141) | (1,561) | (1,713) |
Other comprehensive income (loss) attributable to McKesson | 424 | (580) | 152 |
Ending balance | $ (1,717) | $ (2,141) | $ (1,561) |
Related Party Balances and T127
Related Party Balances and Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Investee | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 154 | $ 112 | $ 112 | |
Accounts receivable, related parties, current | $ 15 | 15 | $ 12 | |
Selling, Distribution and Administrative Expenses | California Foundation | ||||
Related Party Transaction [Line Items] | ||||
Pre-tax charitable contribution expense | 100 | |||
After-tax charitable contribution expense | 64 | |||
Other accrued liabilities | California Foundation | ||||
Related Party Transaction [Line Items] | ||||
Pledge payable balance | $ 100 | $ 100 |
Sale-Leaseback (Details)
Sale-Leaseback (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Leases [Abstract] | |
Net cash proceeds from sale-leaseback transaction | $ 223 |
Pre-tax gain recognized on sale-leaseback transaction | 15 |
Deferred pre-tax gain on sale-leaseback transaction | $ 48 |
Segments of Business - Narrativ
Segments of Business - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2018segment | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||||
Number of operating segments | segment | 2 | |||||||||||||
Goodwill impairment charge | $ 1,738 | $ 290 | $ 0 | |||||||||||
Pre-tax charge | 13 | 14 | 229 | |||||||||||
Charges (credits) associated with last-in-first-out inventory method | (99) | (7) | 244 | |||||||||||
Corporate | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax charge | 0 | 5 | $ 17 | |||||||||||
Distribution Solutions | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | $ 1,738 | $ 0 | ||||||||||||
Distribution Solutions | Operating Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Percentage of total revenue (less than) (as a percent) | 2.00% | 2.00% | 2.00% | |||||||||||
Pre-tax charge | $ 13 | $ 19 | $ 161 | |||||||||||
Net cash proceeds | $ 2 | $ 142 | 144 | 76 | ||||||||||
Charges (credits) associated with last-in-first-out inventory method | $ (94) | $ (2) | $ (29) | $ 26 | $ 144 | $ (155) | $ (43) | $ 47 | ||||||
Distribution Solutions | Operating Segments | ZEE Medical Business | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax gain on sale of business | $ 52 | 52 | ||||||||||||
Technology Solutions | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | 0 | 290 | ||||||||||||
Technology Solutions | Operating Segments | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | $ 290 | |||||||||||||
Pre-tax charge | 0 | (10) | 51 | |||||||||||
Technology Solutions | Operating Segments | Core MTS Businesses | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax gain on sale of business | $ 3,947 | 3,947 | ||||||||||||
Technology Solutions | Operating Segments | Nurse Triage | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax gain on sale of business | $ 51 | 51 | ||||||||||||
Cost Alignment Plan | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax charge | 13 | $ 14 | $ 229 | |||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax gain on sale of business | $ 109 | |||||||||||||
Mckesson Europe Reporting Unit | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | 1,283 | |||||||||||||
Mckesson Europe Reporting Unit | Distribution Solutions | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | 933 | 350 | ||||||||||||
Rexall Health | Distribution Solutions | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charge | 455 | 455 | ||||||||||||
Intangible Asset and Store Assets Impairment | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax charge | 479 | |||||||||||||
Intangible Asset and Store Assets Impairment | Fiscal 2018 McKesson Europe Plan | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax charge | $ 257 | $ 189 | 446 | |||||||||||
Severance and Lease Exit Costs | Fiscal 2018 McKesson Europe Plan | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Pre-tax charge | $ 74 | |||||||||||||
Expected | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of operating segments | segment | 3 |
Segments of Business - Schedule
Segments of Business - Schedule Of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | |||||||||||
Total Revenues | $ 51,628 | $ 53,617 | $ 52,061 | $ 51,051 | $ 48,713 | $ 50,130 | $ 49,957 | $ 49,733 | $ 208,357 | $ 198,533 | $ 190,884 |
Operating profit | |||||||||||
Operating income | 762 | 7,109 | 3,545 | ||||||||
Loss on Debt Extinguishment | (122) | 0 | 0 | ||||||||
Interest Expense | (283) | (308) | (353) | ||||||||
Income from Continuing Operations Before Income Taxes | 239 | 6,891 | 3,250 | ||||||||
Depreciation and amortization | |||||||||||
Total | 951 | 910 | 885 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 405 | 404 | 488 | ||||||||
United States | |||||||||||
Revenues | |||||||||||
Total Revenues | 169,943 | 164,428 | 158,255 | ||||||||
Foreign | |||||||||||
Revenues | |||||||||||
Total Revenues | 38,414 | 34,105 | 32,629 | ||||||||
Operating Segments | |||||||||||
Revenues | |||||||||||
Total Revenues | 208,357 | 198,533 | 190,884 | ||||||||
Operating profit | |||||||||||
Operating income | 1,208 | 7,576 | 4,072 | ||||||||
Operating Segments | Distribution Solutions | |||||||||||
Revenues | |||||||||||
Total Revenues | 208,117 | 195,923 | 187,999 | ||||||||
Operating profit | |||||||||||
Operating income | 1,231 | 3,361 | 3,553 | ||||||||
Depreciation and amortization | |||||||||||
Total | 831 | 735 | 669 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 306 | 276 | 306 | ||||||||
Operating Segments | Distribution Solutions | Reportable Subsegments | North America pharmaceutical distribution and services | |||||||||||
Revenues | |||||||||||
Total Revenues | 174,186 | 164,832 | 158,469 | ||||||||
Operating Segments | Distribution Solutions | Reportable Subsegments | International pharmaceutical distribution and services | |||||||||||
Revenues | |||||||||||
Total Revenues | 27,320 | 24,847 | 23,497 | ||||||||
Operating Segments | Distribution Solutions | Reportable Subsegments | Medical-Surgical distribution and services | |||||||||||
Revenues | |||||||||||
Total Revenues | 6,611 | 6,244 | 6,033 | ||||||||
Operating Segments | Technology Solutions | |||||||||||
Revenues | |||||||||||
Total Revenues | 240 | 2,610 | 2,885 | ||||||||
Operating profit | |||||||||||
Operating income | (23) | 4,215 | 519 | ||||||||
Depreciation and amortization | |||||||||||
Total | 9 | 65 | 107 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 0 | 30 | 15 | ||||||||
Segment Reconciling Items | |||||||||||
Operating profit | |||||||||||
Corporate Expenses, Net | (564) | (377) | (469) | ||||||||
Corporate | |||||||||||
Depreciation and amortization | |||||||||||
Total | 111 | 110 | 109 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | $ 99 | $ 98 | $ 167 |
Segments of Business - Segment
Segments of Business - Segment Assets and Property, Plant and Equipment, Net by Geographical Area (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Mar. 31, 2017 |
Segment assets | ||
Total | $ 60,381 | $ 60,969 |
Property, plant and equipment, net | ||
Total | 2,464 | 2,292 |
United States | ||
Property, plant and equipment, net | ||
Total | 1,529 | 1,383 |
Foreign | ||
Property, plant and equipment, net | ||
Total | 935 | 909 |
Operating Segments | Distribution Solutions | ||
Segment assets | ||
Total | 53,915 | 52,322 |
Operating Segments | Technology Solutions | ||
Segment assets | ||
Total | 3,735 | 4,995 |
Corporate | ||
Segment assets | ||
Total | $ 2,731 | $ 3,652 |
Quarterly Financial Informat132
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||
Pretax charges (credits) related to last-in-first-out method of accounting for inventory | $ (99) | $ (7) | $ 244 | ||||||||
Goodwill impairment charge | 1,738 | 290 | 0 | ||||||||
Pre-tax charge | 13 | 14 | 229 | ||||||||
Distribution Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | 1,738 | 0 | |||||||||
Loss (income) from Equity Method Investment in Change Healthcare | 32 | 30 | 15 | ||||||||
Technology Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | 0 | 290 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pre-tax gain on sale of business | $ 109 | ||||||||||
Gain from sale of business, after tax | 30 | ||||||||||
Intangible Asset and Store Assets Impairment | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pre-tax charge | 479 | ||||||||||
Intangible Asset and Store Assets Impairment | Fiscal 2018 McKesson Europe Plan | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pre-tax charge | $ 257 | $ 189 | 446 | ||||||||
Mckesson Europe Reporting Unit | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | 1,283 | ||||||||||
Mckesson Europe Reporting Unit | Distribution Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | 933 | 350 | |||||||||
Rexall Health | Distribution Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | 455 | 455 | |||||||||
Operating Segments | Distribution Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pretax charges (credits) related to last-in-first-out method of accounting for inventory | (94) | (2) | (29) | $ 26 | $ 144 | $ (155) | $ (43) | $ 47 | |||
Pre-tax charge | 13 | 19 | 161 | ||||||||
Net cash proceeds | $ 2 | $ 142 | 144 | 76 | |||||||
Operating Segments | Technology Solutions | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Goodwill impairment charge | $ 290 | ||||||||||
Pre-tax charge | 0 | (10) | 51 | ||||||||
Operating Segments | Technology Solutions | Core MTS Businesses | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pre-tax gain on sale of business | 3,947 | 3,947 | |||||||||
Gain from sale of business, after tax | $ 3,018 | ||||||||||
Change Healthcare | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Loss (income) from Equity Method Investment in Change Healthcare | $ 23 | $ (90) | $ (61) | (120) | $ (248) | $ 0 | $ 0 | ||||
Change Healthcare | Operating Segments | Technology Solutions | Core MTS Businesses | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Pre-tax gain on sale of business | 37 | ||||||||||
Gain from sale of business, after tax | $ 22 |
Quarterly Financial Informat133
Quarterly Financial Information (Unaudited) - Schedule Of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 51,628 | $ 53,617 | $ 52,061 | $ 51,051 | $ 48,713 | $ 50,130 | $ 49,957 | $ 49,733 | $ 208,357 | $ 198,533 | $ 190,884 |
Gross profit | 3,075 | 2,715 | 2,834 | 2,560 | 2,796 | 2,812 | 2,756 | 2,907 | 11,184 | 11,271 | 11,416 |
Income (loss) after income taxes: | |||||||||||
Continuing operations | (1,087) | 960 | 56 | 363 | 3,630 | 649 | 325 | 673 | 292 | 5,277 | 2,342 |
Discontinued operations | 2 | 1 | 0 | 2 | (7) | (3) | (1) | (113) | 5 | (124) | (32) |
Net Income | (1,085) | 961 | 56 | 365 | 3,623 | 646 | 324 | 560 | 297 | 5,153 | 2,310 |
Net income (loss) attributable to McKesson | $ (1,146) | $ 903 | $ 1 | $ 309 | $ 3,588 | $ 633 | $ 307 | $ 542 | $ 67 | $ 5,070 | $ 2,258 |
Diluted | |||||||||||
Continuing operations (in dollars per share) | $ (5.58) | $ 4.32 | $ 0.01 | $ 1.44 | $ 16.79 | $ 2.86 | $ 1.35 | $ 2.88 | $ 0.30 | $ 23.28 | $ 9.84 |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0.01 | (0.03) | (0.01) | (0.01) | (0.50) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | (5.58) | 4.33 | 0.01 | 1.45 | 16.76 | 2.85 | 1.34 | 2.38 | 0.32 | 22.73 | 9.70 |
Basic | |||||||||||
Continuing operations (in dollars per share) | (5.58) | 4.34 | 0.01 | 1.46 | 16.95 | 2.89 | 1.36 | 2.91 | 0.30 | 23.50 | 9.96 |
Discontinued operations (in dollars per share) | 0 | 0.01 | 0 | 0 | (0.03) | (0.02) | 0 | (0.50) | 0.02 | (0.55) | (0.14) |
Total (in dollars per share) | $ (5.58) | $ 4.35 | $ 0.01 | $ 1.46 | $ 16.92 | $ 2.87 | $ 1.36 | $ 2.41 | $ 0.32 | $ 22.95 | $ 9.82 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Apr. 25, 2018 | Apr. 30, 2018 | Mar. 31, 2018 |
Minimum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Expected restructuring charges | $ 150 | ||
Maximum | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Expected restructuring charges | $ 210 | ||
Medical Specialties Distributors LLC (“MSD”) | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Purchase consideration to be paid | $ 800 | ||
United States | Pension Plans, Defined Benefit | |||
Subsequent Event [Line Items] | |||
Accumulated pension obligation | $ 120 |
SUPPLEMENTARY CONSOLIDATED F135
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 285 | $ 253 | $ 174 |
Charged to Costs and Expense | 44 | 93 | 113 |
Charged to Other Accounts | 10 | 9 | (1) |
Deductions From Allowance Accounts | (113) | (70) | (33) |
Balance at End of Year | 226 | 285 | 253 |
Allowances for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 243 | 212 | 141 |
Charged to Costs and Expense | 44 | 93 | 113 |
Charged to Other Accounts | 13 | 7 | 2 |
Deductions From Allowance Accounts | (113) | (69) | (44) |
Balance at End of Year | 187 | 243 | 212 |
Other allowances | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 42 | 41 | 33 |
Charged to Costs and Expense | 0 | 0 | 0 |
Charged to Other Accounts | (3) | 2 | (3) |
Deductions From Allowance Accounts | 0 | (1) | 11 |
Balance at End of Year | 39 | 42 | 41 |
Written off | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Deductions From Allowance Accounts | (113) | (70) | (33) |
Credited to other accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Deductions From Allowance Accounts | 0 | 0 | 0 |
Amounts shown as deductions from current and non-current receivables | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 285 | 253 | |
Balance at End of Year | $ 226 | $ 285 | $ 253 |