Cover
Cover | 9 Months Ended |
Dec. 31, 2021shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 31, 2021 |
Document Transition Report | false |
Entity File Number | 1-13252 |
Entity Registrant Name | McKESSON CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 94-3207296 |
Entity Address, Address Line One | 6555 State Hwy 161 |
Entity Address, City or Town | Irving |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75039 |
City Area Code | 972 |
Local Phone Number | 446-4800 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 149,798,378 |
Entity Central Index Key | 0000927653 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, $0.01 par value |
Trading Symbol | MCK |
Security Exchange Name | NYSE |
1.500% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2025 |
Trading Symbol | MCK25 |
Security Exchange Name | NYSE |
1.625% Notes Due 2026 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.625% Notes due 2026 |
Trading Symbol | MCK26 |
Security Exchange Name | NYSE |
3.125% Notes Due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 3.125% Notes due 2029 |
Trading Symbol | MCK29 |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 68,614 | $ 62,599 | $ 197,864 | $ 179,086 |
Cost of sales | (65,186) | (59,448) | (188,052) | (170,235) |
Gross profit | 3,428 | 3,151 | 9,812 | 8,851 |
Selling, distribution, general, and administrative expenses | (3,105) | (2,291) | (8,006) | (6,625) |
Claims and litigation charges, net | (7) | (8,067) | (193) | (7,936) |
Goodwill impairment charges | 0 | 0 | 0 | (69) |
Restructuring, impairment, and related charges | (18) | (155) | (208) | (271) |
Total operating expenses | (3,130) | (10,513) | (8,407) | (14,901) |
Operating income (loss) | 298 | (7,362) | 1,405 | (6,050) |
Other income, net | 20 | 54 | 202 | 152 |
Loss on debt extinguishment | 0 | 0 | (191) | 0 |
Interest expense | (41) | (55) | (135) | (165) |
Income (loss) from continuing operations before income taxes | 277 | (7,363) | 1,281 | (6,063) |
Income tax benefit (expense) | (238) | 1,189 | (396) | 1,011 |
Income (loss) from continuing operations | 39 | (6,174) | 885 | (5,052) |
Loss from discontinued operations, net of tax | 0 | 0 | (3) | (1) |
Net income (loss) | 39 | (6,174) | 882 | (5,053) |
Net income attributable to noncontrolling interests | (46) | (52) | (136) | (152) |
Net income (loss) attributable to McKesson Corporation | $ (7) | $ (6,226) | $ 746 | $ (5,205) |
Diluted | ||||
Continuing operations (in usd per share) | $ (0.04) | $ (39.03) | $ 4.81 | $ (32.28) |
Discontinued operations (in usd per share) | 0 | 0 | (0.02) | (0.01) |
Total (in dollars per share) | (0.04) | (39.03) | 4.79 | (32.29) |
Basic | ||||
Continuing operations (in usd per share) | (0.04) | (39.03) | 4.87 | (32.28) |
Discontinued operations (in usd per share) | 0 | 0 | (0.02) | (0.01) |
Total (in dollars per share) | $ (0.04) | $ (39.03) | $ 4.85 | $ (32.29) |
Weighted-average common shares outstanding | ||||
Diluted (in usd per share) | 151.6 | 159.5 | 155.8 | 161.2 |
Basic (in shares) | 151.6 | 159.5 | 154 | 161.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 39 | $ (6,174) | $ 882 | $ (5,053) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | 16 | 107 | (8) | 181 |
Unrealized gains (losses) on cash flow hedges | (6) | (12) | 2 | (36) |
Changes in retirement-related benefit plans | (2) | 24 | 2 | 16 |
Other comprehensive income (loss), net of tax | 8 | 119 | (4) | 161 |
Comprehensive income (loss) | 47 | (6,055) | 878 | (4,892) |
Comprehensive income attributable to noncontrolling interests | (44) | (77) | (137) | (113) |
Comprehensive income (loss) attributable to McKesson Corporation | $ 3 | $ (6,132) | $ 741 | $ (5,005) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 2,754 | $ 6,278 |
Receivables, net | 18,355 | 19,181 |
Inventories, net | 19,024 | 19,246 |
Assets held for sale | 5,534 | 12 |
Prepaid expenses and other | 831 | 665 |
Total current assets | 46,498 | 45,382 |
Property, plant, and equipment, net | 2,064 | 2,581 |
Operating lease right-of-use assets | 1,581 | 2,100 |
Goodwill | 9,462 | 9,493 |
Intangible assets, net | 2,130 | 2,878 |
Other non-current assets | 1,973 | 2,581 |
Total assets | 63,708 | 65,015 |
Current liabilities | ||
Drafts and accounts payable | 37,183 | 38,975 |
Short-term borrowings | 372 | 0 |
Long-term Debt and Lease Obligation, Current | 438 | 742 |
Current portion of operating lease liabilities | 294 | 390 |
Liabilities held for sale | 4,833 | 9 |
Other accrued liabilities | 4,332 | 3,987 |
Total current liabilities | 47,452 | 44,103 |
Long-term debt | 5,518 | 6,406 |
Long-term deferred tax liabilities | 1,369 | 1,411 |
Long-term operating lease liabilities | 1,391 | 1,867 |
Long-term litigation liabilities | 7,153 | 8,067 |
Other non-current liabilities | 1,612 | 1,715 |
Redeemable noncontrolling interests | 0 | 1,271 |
McKesson Corporation stockholders’ deficit | ||
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 and 275 and 273 shares issued at December 31, 2021 and March 31, 2021, respectively | 2 | 2 |
Additional paid-in capital | 7,411 | 6,925 |
Retained earnings | 8,734 | 8,202 |
Accumulated other comprehensive loss | (1,655) | (1,480) |
Treasury shares, at cost, 125 and 115 shares at December 31, 2021 and March 31, 2021, respectively | (15,766) | (13,670) |
Total McKesson Corporation stockholders’ deficit | (1,274) | (21) |
Noncontrolling interests | 487 | 196 |
Total equity (deficit) | (787) | 175 |
Total liabilities, redeemable noncontrolling interests, and equity (deficit) | $ 63,708 | $ 65,015 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Mar. 31, 2021 |
McKesson Corporation stockholders’ deficit | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 275,000,000 | 273,000,000 |
Treasury stock, shares (in shares) | 125,000,000 | 115,000,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury | Noncontrolling Interests | Opening retained earnings adjustments: adoption of new accounting standard | Opening retained earnings adjustments: adoption of new accounting standardRetained Earnings | Adjusted balance, April 1 | Adjusted balance, April 1Common Stock | Adjusted balance, April 1Additional Paid-in Capital | Adjusted balance, April 1Retained Earnings | Adjusted balance, April 1Accumulated Other Comprehensive Loss | Adjusted balance, April 1Treasury | Adjusted balance, April 1Noncontrolling Interests |
Beginning balance (shares) at Mar. 31, 2020 | 272 | 272 | ||||||||||||||
Beginning balance (shares) at Mar. 31, 2020 | (110) | (110) | ||||||||||||||
Beginning balance at Mar. 31, 2020 | $ 5,309 | $ 2 | $ 6,663 | $ 13,022 | $ (1,703) | $ (12,892) | $ 217 | $ (13) | $ (13) | $ 5,296 | $ 2 | $ 6,663 | $ 13,009 | $ (1,703) | $ (12,892) | $ 217 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares under employee plans, net of forfeitures (shares) | 1 | |||||||||||||||
Issuance of shares under employee plans, net of forfeitures | 29 | 55 | $ (26) | |||||||||||||
Share-based compensation | 110 | 110 | ||||||||||||||
Payments to noncontrolling interests | (134) | (134) | ||||||||||||||
Other comprehensive income (loss) | 200 | 200 | ||||||||||||||
Net income | (5,085) | (5,205) | 120 | |||||||||||||
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 3 | 3 | ||||||||||||||
Repurchase of common stock (in shares) | (4) | |||||||||||||||
Repurchase of common stock | (500) | $ (500) | ||||||||||||||
Cash dividends declared | (203) | (203) | ||||||||||||||
Other | 7 | 16 | (6) | (3) | ||||||||||||
Ending balance (shares) at Dec. 31, 2020 | 273 | |||||||||||||||
Ending balance (shares) at Dec. 31, 2020 | (114) | |||||||||||||||
Ending balance at Dec. 31, 2020 | (277) | $ 2 | 6,847 | 7,595 | (1,503) | $ (13,418) | 200 | |||||||||
Beginning balance (shares) at Sep. 30, 2020 | 273 | |||||||||||||||
Beginning balance (shares) at Sep. 30, 2020 | (112) | |||||||||||||||
Beginning balance at Sep. 30, 2020 | 6,090 | $ 2 | 6,780 | 13,890 | (1,597) | $ (13,185) | 200 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares under employee plans, net of forfeitures | 14 | 16 | $ (2) | |||||||||||||
Share-based compensation | 51 | 51 | ||||||||||||||
Payments to noncontrolling interests | (41) | (41) | ||||||||||||||
Other comprehensive income (loss) | 94 | 94 | ||||||||||||||
Net income | (6,185) | (6,226) | 41 | |||||||||||||
Repurchase of common stock (in shares) | (2) | |||||||||||||||
Repurchase of common stock | (231) | $ (231) | ||||||||||||||
Cash dividends declared | (67) | (67) | ||||||||||||||
Other | (2) | (2) | ||||||||||||||
Ending balance (shares) at Dec. 31, 2020 | 273 | |||||||||||||||
Ending balance (shares) at Dec. 31, 2020 | (114) | |||||||||||||||
Ending balance at Dec. 31, 2020 | $ (277) | $ 2 | 6,847 | 7,595 | (1,503) | $ (13,418) | 200 | |||||||||
Beginning balance (shares) at Mar. 31, 2021 | 273 | |||||||||||||||
Beginning balance (shares) at Mar. 31, 2021 | (115) | (115) | ||||||||||||||
Beginning balance at Mar. 31, 2021 | $ 175 | $ 2 | 6,925 | 8,202 | (1,480) | $ (13,670) | 196 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares under employee plans, net of forfeitures (shares) | 2 | |||||||||||||||
Issuance of shares under employee plans, net of forfeitures | 107 | 174 | $ (67) | |||||||||||||
Share-based compensation | 112 | 112 | ||||||||||||||
Payments to noncontrolling interests | (117) | (117) | ||||||||||||||
Other comprehensive income (loss) | (7) | (5) | (2) | |||||||||||||
Net income | 874 | 746 | 128 | |||||||||||||
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 8 | 178 | (170) | |||||||||||||
Repurchase of common stock (in shares) | (10) | |||||||||||||||
Repurchase of common stock | (2,008) | 21 | $ (2,029) | |||||||||||||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | 287 | ||||||||||||||
Reclassification of recurring compensation to other accrued liabilities | (5) | (5) | ||||||||||||||
Cash dividends declared | (211) | (211) | ||||||||||||||
Other | $ (2) | 1 | (3) | |||||||||||||
Ending balance (shares) at Dec. 31, 2021 | 275 | |||||||||||||||
Ending balance (shares) at Dec. 31, 2021 | (125) | (125) | ||||||||||||||
Ending balance at Dec. 31, 2021 | $ (787) | $ 2 | 7,411 | 8,734 | (1,655) | $ (15,766) | 487 | |||||||||
Beginning balance (shares) at Sep. 30, 2021 | 275 | |||||||||||||||
Beginning balance (shares) at Sep. 30, 2021 | (122) | |||||||||||||||
Beginning balance at Sep. 30, 2021 | (87) | $ 2 | 7,311 | 8,812 | (1,665) | $ (15,031) | 484 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Issuance of shares under employee plans, net of forfeitures | 56 | 63 | $ (7) | |||||||||||||
Share-based compensation | 36 | 36 | ||||||||||||||
Payments to noncontrolling interests | (38) | (38) | ||||||||||||||
Other comprehensive income (loss) | 8 | 10 | (2) | |||||||||||||
Net income | 39 | (7) | 46 | |||||||||||||
Repurchase of common stock (in shares) | (3) | |||||||||||||||
Repurchase of common stock | (728) | $ (728) | ||||||||||||||
Reclassification of recurring compensation to other accrued liabilities | (3) | (3) | ||||||||||||||
Cash dividends declared | (72) | (72) | ||||||||||||||
Other | $ 2 | 1 | 1 | |||||||||||||
Ending balance (shares) at Dec. 31, 2021 | 275 | |||||||||||||||
Ending balance (shares) at Dec. 31, 2021 | (125) | (125) | ||||||||||||||
Ending balance at Dec. 31, 2021 | $ (787) | $ 2 | $ 7,411 | $ 8,734 | $ (1,655) | $ (15,766) | $ 487 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares | Jul. 23, 2021 | Jul. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.47 | $ 0.42 | $ 0.47 | $ 0.42 | $ 1.36 | $ 1.25 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 882 | $ (5,053) |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation | 215 | 237 |
Amortization | 383 | 429 |
Goodwill and long-lived asset impairment charges | 128 | 236 |
Deferred taxes | 12 | (1,520) |
Credits associated with last-in, first-out inventory method | (79) | (115) |
Non-cash operating lease expense | 198 | 264 |
Loss (gain) from sales of businesses and investments | (117) | 50 |
European businesses held for sale | 1,271 | 0 |
Other non-cash items | 452 | 67 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | (1,925) | 1,500 |
Inventories | (1,659) | (2,046) |
Drafts and accounts payable | 1,612 | (1,240) |
Operating lease liabilities | (276) | (291) |
Taxes | 176 | 184 |
Litigation liabilities | 146 | 8,067 |
Other | 128 | 403 |
Net cash provided by operating activities | 1,547 | 1,172 |
INVESTING ACTIVITIES | ||
Payments for property, plant, and equipment | (253) | (293) |
Capitalized software expenditures | (127) | (134) |
Acquisitions, net of cash, cash equivalents, and restricted cash acquired | (6) | (33) |
Proceeds from sales of businesses and investments, net | 197 | 325 |
Other | (83) | (75) |
Net cash used in investing activities | (272) | (210) |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings | 3,642 | 5,455 |
Repayments of short-term borrowings | (3,270) | (5,303) |
Proceeds from issuances of long-term debt | 498 | 500 |
Repayments of long-term debt | (1,646) | (1,030) |
Payments for debt extinguishments | (184) | 0 |
Common stock transactions: | ||
Issuances | 174 | 55 |
Share repurchases | (1,986) | (500) |
Dividends paid | (206) | (209) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (1,031) | (49) |
Other | (323) | (95) |
Net cash used in financing activities | (4,332) | (1,176) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 35 | (77) |
Cash, cash equivalents, and restricted cash classified within Assets held for sale | (215) | 0 |
Net decrease in cash, cash equivalents, and restricted cash | (3,237) | (291) |
Cash, cash equivalents, and restricted cash at beginning of period | 6,396 | 4,023 |
Cash, cash equivalents, and restricted cash at end of period | 3,159 | 3,732 |
Less: Restricted cash at end of period included in Prepaid expenses and other | (405) | (155) |
Cash and cash equivalents at end of period | $ 2,754 | $ 3,577 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations : McKesson Corporation (“McKesson,” or the “Company,”) is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments, and other organizations in healthcare to help provide the right medicines, medical products, and healthcare services to the right patients at the right time, safely, and cost-effectively. The Company reports its financial results in four reportable segments: U.S. Pharmaceutical, Prescription Technology Solutions (“RxTS”), Medical-Surgical Solutions, and International. Refer to Financial Note 14, “Segments of Business,” for more information. Basis of Presentation: The condensed 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 the Company’s 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” in the Condensed Consolidated Statements of Operations. All significant intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. The Company considers itself to control an entity if it is the majority owner of or has voting control over such entity. The Company also assesses control through means other than voting rights and determines which business entity is the primary beneficiary of the variable interest entity (“VIE”). The Company consolidates VIEs when it is determined that it is the primary beneficiary of the VIE. Investments in business entities in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”) of America (“GAAP”) for interim financial reporting and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and therefore do not include all information and disclosures normally included in the annual consolidated financial statements. To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these financial statements and income and expenses during the reporting period. Actual amounts may differ from these estimated amounts. The Company continues to evaluate the ongoing impacts, including the economic consequences, of the coronavirus disease 2019 (“COVID-19”) pandemic. As COVID-19 further evolves, the Company’s accounting estimates and assumptions may change over time and may change materially in future periods. In the opinion of management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows of McKesson for the interim periods presented. The results of operations for the three and nine months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the entire year. These interim financial statements should be read in conjunction with the annual audited financial statements, accounting policies, and financial notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021, previously filed with the SEC on May 12, 2021 (“2021 Annual Report”). 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. Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Adopted Accounting Pronouncements In the first quarter of 2022, the Company prospectively adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies and clarifies certain other aspects of accounting for income taxes. The adoption of this amended guidance did not have a material impact on the Company’s condensed consolidated financial statements or disclosures. |
Held for Sale
Held for Sale | 9 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale | Held for Sale In July 2021, the Company announced its intention to exit its businesses in Europe. Assets and liabilities of certain European businesses to be disposed of by sale (“disposal groups”) are classified as “held for sale” if their carrying amounts are principally expected to be recovered through a sale transaction rather than through continuing use. The classification occurs when the disposal group is available for immediate sale and the sale is probable. These criteria are generally met when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying amount or fair value less costs to sell, and long-lived assets included within the disposal group are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. Assets and liabilities that have met the classification of held for sale were $5.5 billion and $4.8 billion, respectively, at December 31, 2021 and $12 million and $9 million, respectively, at March 31, 2021. The amounts at December 31, 2021 primarily consisted of disposal groups related to the Company’s European divestiture activities, as discussed below. During the three and nine months ended December 31, 2021, the Company recorded charges totaling $879 million and $1.4 billion, respectively, primarily to remeasure the assets and liabilities of the disposal groups related to European divestiture activities discussed below to the lower of their carrying value or fair value less costs to sell. These charges were largely driven by declines in the British pound sterling and the Euro. During the three and nine months ended December 31, 2020, the Company recorded losses of $47 million and $57 million, respectively, related to the contribution of its German pharmaceutical wholesale business to the joint venture with Walgreens Boots Alliance which was completed on November 1, 2020. The Company determined that the disposal groups classified as held for sale do not meet the criteria for classification as discontinued operations and are not considered to be significant disposals based on its quantitative and qualitative evaluation. European Divestiture Activities On July 5, 2021, the Company entered into an agreement to sell certain of its businesses in the European Union (“E.U.”) located in France, Italy, Ireland, Portugal, Belgium, and Slovenia, along with its German headquarters and wound-care business, part of a shared services center in Lithuania, and its ownership stake in a joint venture in the Netherlands (“E.U. disposal group”) to the PHOENIX Group for a purchase price of €1.2 billion (or, approximately $1.4 billion) adjusted for certain items, including cash, net debt and working capital adjustments, and reduced by the value of the noncontrolling interest held by minority shareholders of McKesson Europe AG (“McKesson Europe”) at the transaction closing date. The transaction is anticipated to close within the first half of fiscal year 2023, pursuant to the satisfaction of customary closing conditions, including receipt of regulatory approvals, as applicable. As of December 31, 2021, the E.U. disposal group, consisting of $3.1 billion of assets and $2.3 billion of liabilities primarily within the Company’s International segment, was classified as “Assets held for sale” and “Liabilities held for sale,” respectively, in the Condensed Consolidated Balance Sheet. During the three and nine months ended December 31, 2021, the Company recorded charges totaling $26 million and $517 million, respectively, to remeasure the E.U. disposal group to the lower of its carrying value or fair value less costs to sell. These charges also included impairments of individual assets, such as certain internal-use software that will not be utilized in the future, prior to adjusting the E.U. disposal group as a whole. The remeasurement adjustment includes net losses of $230 million related to the accumulated other comprehensive income balances associated with the E.U. disposal group, driven by declines in the Euro. The charges were recorded within “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. The Company’s measurement of the fair value of the E.U. disposal group was based on the total consideration expected to be received by the Company as outlined in the transaction agreement. Certain components of the total consideration included fair value measurements that fall within Level 3 of the fair value hierarchy. The total assets and liabilities of the E.U. disposal group that have met the classification of held for sale in the Company’s Condensed Consolidated Balance Sheet are as follows: (In millions) December 31, 2021 Assets Current assets Receivables, net $ 1,346 Inventories, net 913 Prepaid expenses and other 75 Property, plant, and equipment, net 296 Operating lease right-of-use assets 221 Intangible assets, net 274 Other non-current assets 348 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1) (387) Total assets held for sale $ 3,086 Liabilities Current liabilities Drafts and accounts payable $ 1,433 Current portion of long-term debt 5 Current portion of operating lease liabilities 32 Other accrued liabilities 440 Long-term debt 12 Long-term deferred tax liabilities 47 Long-term operating lease liabilities 187 Other non-current liabilities 165 Total liabilities held for sale $ 2,321 (1) Excludes charges related to the impairment of individual assets, which are primarily comprised of a $113 million impairment of internally developed software recorded directly against the gross value of the assets impacted. On November 1, 2021, the Company announced an agreement to sell its retail and distribution businesses in the United Kingdom (“U.K. disposal group”) to Aurelius Elephant Limited for a purchase price of £325 million (or, approximately $440 million), subject to certain adjustments. As of December 31, 2021, the U.K. disposal group, consisting of $1.9 billion of assets and $2.3 billion of liabilities primarily within the Company’s International segment, was classified as “Assets held for sale” and “Liabilities held for sale,” respectively, in the Condensed Consolidated Balance Sheet. The transaction is expected to close in the fourth quarter of 2022. During the three and nine months ended December 31, 2021, the Company recorded charges totaling $823 million to remeasure the U.K. disposal group to the lower of its carrying value or fair value less costs to sell. The remeasurement adjustment includes a $731 million loss related to the accumulated other comprehensive income balances associated with the U.K. disposal group, driven by declines in the British pound sterling. The charges were recorded within “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. The Company’s measurement of the fair value of the U.K. disposal group was based on the total consideration expected to be received by the Company as outlined in the transaction agreement. Certain components of the total consideration included fair value measurements that fall within Level 3 of the fair value hierarchy. The total assets and liabilities of the U.K. disposal group that have met the classification of held for sale in the Company’s Condensed Consolidated Balance Sheet are as follows: (In millions) December 31, 2021 Assets Current assets Cash and cash equivalents $ 206 Receivables, net 1,212 Inventories, net 698 Prepaid expenses and other 76 Property, plant, and equipment, net 91 Operating lease right-of-use assets 259 Intangible assets, net 120 Other non-current assets 78 Remeasurement of assets of businesses held for sale to fair value less costs to sell (822) Total assets held for sale $ 1,918 Liabilities Current liabilities Drafts and accounts payable $ 1,756 Current portion of operating lease liabilities 51 Other accrued liabilities 141 Long-term operating lease liabilities 269 Other non-current liabilities 57 Total liabilities held for sale $ 2,274 On December 20, 2021, the Company announced an agreement with Quadrifolia Management GmbH for a management-led buyout of its Austrian business for a purchase price of €226 million (or, approximately $257 million), subject to certain adjustments. At December 31, 2021, the net assets of the Austrian business of $290 million, primarily within the Company’s International segment, were classified as “Assets held for sale” and “Liabilities held for sale” in the Condensed Consolidated Balance Sheet. The transaction closed on January 31, 2022. In the three and nine months ended December 31, 2021, the Company recognized a loss of $30 million to remeasure the assets and liabilities of the business to the lower of its carrying value or fair value less costs to sell. The charge was recorded within “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. |
Restructuring, Impairment, and
Restructuring, Impairment, and Related Charges | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Related Charges | Restructuring, Impairment, and Related ChargesThe Company recorded restructuring, impairment, and related charges of $18 million and $208 million during the three and nine months ended December 31, 2021, respectively, and $155 million and $271 million during the three and nine months ended December 31, 2020, respectively. These charges are included in “Restructuring, impairment, and related charges” in the Condensed Consolidated Statements of Operations. In addition, charges related to restructuring initiatives were included in “Cost of sales” in the Condensed Consolidated Statement of Operations and were not material for the nine months ended December 31, 2020. Restructuring Initiatives During the first quarter of 2022, the Company approved an initiative to increase operational efficiencies and flexibility by transitioning to a partial remote work model for certain employees. This initiative primarily includes the rationalization of the Company’s office space in North America. Where it determines to cease using office space, the Company plans to exit the portion of the facility no longer used. It also may retain and repurpose certain other office locations. The Company expects to incur total charges of approximately $140 million to $180 million for this initiative, consisting primarily of exit related costs, accelerated depreciation and amortization of long-lived assets, and asset impairments. The Company recorded charges of $5 million and $115 million, respectively, in the three and nine months ended December 31, 2021. Charges primarily relate to lease right-of-use and other long-lived asset impairments, lease exit costs, and accelerated depreciation and amortization. This initiative is anticipated to be substantially complete in 2022 after which immaterial charges will continue to be incurred through the termination date of certain leases. During the first quarter of 2021, the Company committed to an initiative within the United Kingdom (“U.K.”), which is included in the Company’s International segment, to further drive operational changes in technologies and business processes, efficiencies, and cost savings. The initiative included reducing the number of retail pharmacy stores, decommissioning obsolete technologies and processes, reorganizing and consolidating certain business operations, and related headcount reductions. Charges incurred for this initiative were not material for the three and nine months ended December 31, 2021 and were $9 million and $50 million for the three and nine months ended December 31, 2020, respectively, primarily related to asset impairments and accelerated depreciation expense as well as employee severance and other employee-related costs. This initiative was substantially complete in the third quarter of 2022, and remaining costs the Company expects to record under this initiative are not material. Restructuring, impairment, and related charges during the three and nine months ended December 31, 2021 consisted of the following: Three Months Ended December 31, 2021 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ — $ — $ — $ — $ 1 $ 1 Exit and other-related costs (1) 3 — 1 6 6 16 Asset impairments and accelerated depreciation — — — (1) 2 1 Total $ 3 $ — $ 1 $ 5 $ 9 $ 18 (1) Exit and other-related costs primarily consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Nine Months Ended December 31, 2021 (In millions) U.S. Pharmaceutical (1) Prescription Technology Solutions (1) Medical-Surgical Solutions (1) International (2) Corporate (1) Total Severance and employee-related costs, net $ 2 $ (1) $ 1 $ 10 $ 2 $ 14 Exit and other-related costs (3) 7 2 3 21 33 66 Asset impairments and accelerated depreciation 16 17 5 35 55 128 Total $ 25 $ 18 $ 9 $ 66 $ 90 $ 208 (1) Costs primarily relate to the transition to the partial remote work model described above. (2) Primarily represents costs related to optimization programs in Canada as well as the transition to a partial remote work model and the U.K. operating model and cost optimization efforts both described above. (3) Exit and other-related costs primarily consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Restructuring, impairment, and related charges during the three and nine months ended December 31, 2020 consisted of the following: Three Months Ended December 31, 2020 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Corporate (2) Total Severance and employee-related costs, net $ 3 $ — $ (3) $ 2 $ 7 $ 9 Exit and other-related costs (3) 3 — 1 5 6 15 Asset impairments and accelerated depreciation — — — 9 7 16 Total $ 6 $ — $ (2) $ 16 $ 20 $ 40 (1) Primarily represents costs associated with the U.K. operating model and cost optimization efforts described above. (2) Primarily represents costs associated with an operating model and cost optimization initiative and with the relocation of the Company’s corporate headquarters. Both of these initiatives were substantially completed in the year ended March 31, 2021. (3) Exit and other-related costs primarily include project consulting fees. Nine Months Ended December 31, 2020 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Corporate (2) Total Severance and employee-related costs, net $ 10 $ — $ — $ 22 $ 31 $ 63 Exit and other-related costs (3) 8 — 3 12 20 43 Asset impairments and accelerated depreciation — — 1 40 9 50 Total $ 18 $ — $ 4 $ 74 $ 60 $ 156 (1) Primarily represents costs associated with the U.K. operating model and cost optimization efforts described above, and an operating model and cost optimization initiative which was substantially completed in the year ended March 31, 2021. (2) Primarily represents costs associated with an operating model and cost optimization initiative and with the relocation of the Company’s corporate headquarters. Both of these initiatives were substantially completed in the year ended March 31, 2021. (3) Exit and other-related costs primarily include project consulting fees. The following table summarizes the activity related to the restructuring liabilities associated with the Company’s restructuring initiatives for the nine months ended December 31, 2021: (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Balance, March 31, 2021 (1) $ 19 $ 4 $ 3 $ 66 $ 59 $ 151 Restructuring, impairment, and related charges 25 18 9 66 90 208 Non-cash charges (16) (17) (5) (35) (55) (128) Cash payments (15) (1) (5) (22) (26) (69) Other — — — (11) (7) (18) Balance, December 31, 2021 (2) $ 13 $ 4 $ 2 $ 64 $ 61 $ 144 (1) As of March 31, 2021, the total reserve balance was $151 million, of which $99 million was recorded in “Other accrued liabilities” and $52 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. (2) As of December 31, 2021, the total reserve balance was $144 million, of which $52 million was recorded in “Other accrued liabilities,” $44 million was recorded in “Liabilities held for sale,” and $48 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. Long-Lived Asset Impairments During the third quarter of 2021, the Company recognized charges of $115 million to impair certain long-lived assets within the Company’s International segment. These charges primarily related to long-lived assets associated with the Company’s retail pharmacy businesses in Canada and Europe and were due to declines in estimated future cash flows partially driven by a revised outlook regarding the impacts of COVID-19. The Company used both an income approach (a discounted cash flow (“DCF”) method) and a market approach to estimate the fair value of the long-lived assets. The fair value of the long-lived assets is considered a Level 3 fair value measurement due to the significance of unobservable inputs developed using company specific information. Refer to Financial Note 11, “Fair Value Measurements,” for more information on nonrecurring fair value measurements. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three months ended December 31, 2021 and 2020, the Company recorded income tax expense of $238 million and an income tax benefit of $1.2 billion, respectively. During the nine months ended December 31, 2021 and 2020, the Company recorded income tax expense of $396 million and an income tax benefit of $1.0 billion, respectively. The Company’s reported income tax expense rate was 85.9% and an income tax benefit rate of 16.1% for the three months ended December 31, 2021 and 2020, respectively, and an income tax expense rate of 30.9% and an income tax benefit rate of 16.7% for the nine months ended December 31, 2021 and 2020, respectively. Fluctuations in the Company’s reported income tax rates are primarily due to non-cash charges related to remeasuring the value of its E.U. and U.K disposal groups held for sale to the lower of its carrying value or fair value less costs to sell, changes in the mix of earnings between various taxing jurisdictions, and discrete items recognized in the quarters. During the nine months ended December 31, 2021, the Company recorded non-cash pre-tax charges of $517 million primarily to remeasure the E.U. disposal group to the lower of its carrying value or fair value less costs to sell, and, during the three and nine months ended December 31, 2021, the Company recorded non-cash pre-tax charges of $853 million to remeasure the U.K. disposal group and the Austrian business to the lower of carrying value or fair value less costs to sell, as described in Financial Note 2, “Held for Sale.” The Company’s reported income tax rates for the three and nine months ended December 31, 2021 were unfavorably impacted by the non-deductible nature of the majority of these charges for income tax purposes. The Company’s reported income tax rates for the nine months ended December 31, 2021 and 2020 were impacted by the charges for opioid-related claims of $193 million ($160 million after-tax) and $8.1 billion ($6.7 billion after-tax), respectively, as described further in Financial Note 12, “Commitments and Contingent Liabilities.” During the third quarter of 2022, the Company recognized a net discrete tax benefit of $42 million primarily related to a decrease in the income recognized pursuant to the global intangible low-tax income (“GILTI”) regime in its 2021 U.S. Federal income tax return and the statute of limitation expirations in various taxing jurisdictions. During the nine months ended December 31, 2020, the Company sold intellectual property between wholly-owned legal entities within McKesson that are based in different tax jurisdictions. The transferor entity recognized a gain on the sale of assets which was not subject to income tax in its local jurisdiction; such gain was eliminated upon consolidation. The acquiring entity of the intellectual property is entitled to amortize the purchase price of the assets for tax purposes. In accordance with ASU 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory,” a discrete tax benefit of $105 million was recognized with a corresponding increase to a deferred tax asset for the temporary difference arising from the buyer’s excess tax basis. As of December 31, 2021, the Company had $1.6 billion of unrecognized tax benefits, of which $1.3 billion would reduce income tax expense and the effective tax rate if recognized. During the nine months ended December 31, 2021, the Company recognized a net discrete tax benefit of $115 million related to statute of limitation expirations in various taxing jurisdictions. During the next twelve months, the Company does not anticipate any material reduction in its unrecognized tax benefits. However, this may change as the Company continues to have ongoing negotiations with various taxing authorities throughout the year. The unrecognized tax benefit may also increase or decrease due to future developments in opioid-related litigation and claims, as discussed in Financial Note 12, “Commitments and Contingent Liabilities.” The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions, and various foreign jurisdictions. The Internal Revenue Service (“IRS”) is currently examining the Company’s U.S. corporation income tax returns for 2018 and 2019. The Company is generally subject to audit by taxing authorities in various U.S. states and in foreign jurisdictions for fiscal years 2013 through the current fiscal year. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Noncontrolling Interests | 9 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests The Company’s redeemable noncontrolling interests primarily related to its 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. As a result, the Company recorded a total attribution of net income to the noncontrolling shareholders of McKesson Europe of $8 million during the three months ended June 30, 2021, and $11 million and $32 million during the three and nine months ended December 31, 2020, respectively. All amounts were recorded in “Net income attributable to noncontrolling interests” in the Company’s Condensed Consolidated Statements of Operations and the corresponding liability balance was recorded in “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheets. Under the Domination Agreement, the noncontrolling shareholders of McKesson Europe had a right to put (“Put Right”) their noncontrolling shares at €22.99 per share, increased annually for interest in the amount of five percentage points above a base rate published by the German Bundesbank semi-annually, less any compensation amount or guaranteed dividend already paid by McKesson with respect to the relevant time period (“Put Amount”). Subsequent to the Domination Agreement’s registration, certain noncontrolling shareholders of McKesson Europe initiated appraisal proceedings (“Appraisal Proceedings”) with the Stuttgart Regional Court (the “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 was paid as specified in the Domination Agreement. On September 19, 2018, the Court ruled that the Put Amount shall be increased by €0.51 resulting in an adjusted Put Amount of €23.50. The annual recurring compensation amount and/or the guaranteed dividend remained unadjusted. Noncontrolling shareholders of McKesson Europe appealed this decision. McKesson Europe Holdings GmbH & Co. KGaA also appealed the decision. On April 12, 2021, the Company received notice that the Stuttgart Court of Appeals ruled that the Put Amount shall remain €22.99, thereby rejecting the lower court’s increase, and the recurring compensation remained at €0.83 per share. During the nine months ended December 31, 2021 and 2020, the Company paid $1.0 billion and $49 million, respectively, to purchase 34.5 million and 1.8 million shares, respectively, of McKesson Europe through exercises of the Put Right by the noncontrolling shareholders. This decreased the carrying value of the noncontrolling interests by $983 million and $49 million, respectively, for the nine months ended December 31, 2021 and 2020, and the Company recorded the associated effect of the increase in the Company’s ownership interest of $178 million and $3 million, respectively, as an increase to McKesson stockholders’ additional paid-in capital. The Put Right expired on June 15, 2021, at which point the remaining shares owned by the minority shareholders, with a carrying value of $287 million, were transferred from “Redeemable noncontrolling interests” to “Noncontrolling interests” in the Condensed Consolidated Balance Sheet. The redeemable noncontrolling interest was adjusted each period for the proportion of other comprehensive income, primarily due to changes in foreign currency exchange rates, attributable to the noncontrolling shareholders. Prior to expiration of the Put Right, the balance of the redeemable noncontrolling interests was reported as the greater of its carrying value or its maximum redemption value at each reporting date. At March 31, 2021, the carrying value of $1.3 billion exceeded the maximum redemption value of $1.2 billion and the Company owned approximately 78% of McKesson Europe’s outstanding common shares. Noncontrolling Interests Noncontrolling interests represent third-party equity interests in the Company’s consolidated entities primarily related to ClarusONE Sourcing Services LLP and Vantage Oncology Holdings, LLC. As discussed above, after June 15, 2021 noncontrolling interests also represent minority shareholder equity interests in McKesson Europe. At December 31, 2021, the Company owned approximately 95%, of McKesson Europe’s outstanding common shares. The Company’s noncontrolling interest in McKesson Europe will be included in the sale of the E.U. disposal group, as discussed in Financial Note 2, “Held for Sale.” The Company allocated $46 million and $128 million of net income to noncontrolling interests during the three and nine months ended December 31, 2021, respectively, and $41 million and $120 million during the three and nine months ended December 31, 2020, respectively. Changes in redeemable noncontrolling interests and noncontrolling interests for the three and nine months ended December 31, 2021 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, September 30, 2021 $ 484 $ — Net income attributable to noncontrolling interests 46 — Other comprehensive loss (2) — Reclassification of recurring compensation to other accrued liabilities (3) — Payments to noncontrolling interests (38) — Balance, December 31, 2021 $ 487 $ — (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2021 $ 196 $ 1,271 Net income attributable to noncontrolling interests 128 8 Other comprehensive income (loss) (2) 3 Reclassification of recurring compensation to other accrued liabilities (5) (8) Payments to noncontrolling interests (117) — Exercises of Put Right — (983) Reclassification of McKesson Europe redeemable noncontrolling interests 287 (287) Other — (4) Balance, December 31, 2021 $ 487 $ — Changes in redeemable noncontrolling interests and noncontrolling interests for the three and nine months ended December 31, 2020 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, September 30, 2020 $ 200 $ 1,265 Net income attributable to noncontrolling interests 41 11 Other comprehensive income — 25 Reclassification of recurring compensation to other accrued liabilities — (11) Payments to noncontrolling interests (41) — Other — 2 Balance, December 31, 2020 $ 200 $ 1,292 (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2020 $ 217 $ 1,402 Net income attributable to noncontrolling interests 120 32 Other comprehensive loss — (65) Reclassification of recurring compensation to other accrued liabilities — (32) Payments to noncontrolling interests (134) — Exercises of Put Right — (49) Other (3) 4 Balance, December 31, 2020 $ 200 $ 1,292 |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common ShareBasic earnings (loss) per common share are computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings (loss) per common share is similar to that of basic earnings (loss) per common share, except that the former reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units. Diluted loss per common share for the three months ended December 31, 2021 and the three and nine months ended December 31, 2020 was calculated by excluding potentially dilutive securities from the denominator of the share computation due to their anti-dilutive effects. Less than 1 million of potentially dilutive securities for the nine months ended December 31, 2021 were excluded from the computation of diluted earnings per common share as they were anti-dilutive. The computations for basic and diluted earnings or loss per common share are as follows: Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share amounts) 2021 2020 2021 2020 Income (loss) from continuing operations $ 39 $ (6,174) $ 885 $ (5,052) Net income attributable to noncontrolling interests (46) (52) (136) (152) Income (loss) from continuing operations attributable to McKesson Corporation (7) (6,226) 749 (5,204) Loss from discontinued operations, net of tax — — (3) (1) Net income (loss) attributable to McKesson Corporation $ (7) $ (6,226) $ 746 $ (5,205) Weighted-average common shares outstanding: Basic 151.6 159.5 154.0 161.2 Effect of dilutive securities: Stock options — — 0.2 — Restricted stock units (1) — — 1.6 — Diluted 151.6 159.5 155.8 161.2 Earnings (loss) per common share attributable to McKesson: (2) Diluted Continuing operations $ (0.04) $ (39.03) $ 4.81 $ (32.28) Discontinued operations — — (0.02) (0.01) Total $ (0.04) $ (39.03) $ 4.79 $ (32.29) Basic Continuing operations $ (0.04) $ (39.03) $ 4.87 $ (32.28) Discontinued operations — — (0.02) (0.01) Total $ (0.04) $ (39.03) $ 4.85 $ (32.29) (1) Includes dilutive effect from restricted stock units, performance-based restricted stock units, and performance-based stock units. (2) Certain computations may reflect rounding adjustments. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 9 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net In the second quarter of 2021, the Company implemented a new segment reporting structure which prompted changes in multiple reporting units across the Company. As a result, goodwill included in the impacted reporting units was reallocated using a relative fair value approach and assessed for impairment before and after the reallocation. The Company recorded a goodwill impairment charge of $69 million in the nine months ended December 31, 2020 as the estimated fair value of the Europe Retail Pharmacy reporting unit was lower than its reassigned carrying value based on changes in the composition of this reporting unit within the International segment. This impairment charge is included in “Goodwill impairment charges” in the Condensed Consolidated Statement of Operations. The Company evaluates goodwill for impairment on an annual basis as of October 1, and at an interim date, if indicators of potential impairment exist. The annual impairment testing performed for 2022 and 2021 did not indicate any impairment of goodwill. Changes in the carrying amount of goodwill were as follows: (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Total Balance, March 31, 2021 $ 3,963 $ 1,542 $ 2,453 $ 1,535 $ 9,493 Goodwill acquired — — — 5 5 Foreign currency translation adjustments, net (21) — — (15) (36) Balance, December 31, 2021 $ 3,942 $ 1,542 $ 2,453 $ 1,525 $ 9,462 (1) Remaining goodwill for this segment primarily relates to the McKesson Canada reporting unit. Information regarding intangible assets is as follows: December 31, 2021 March 31, 2021 (Dollars in millions) Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 12 $ 2,842 $ (1,718) $ 1,124 $ 3,739 $ (2,269) $ 1,470 Service agreements 9 1,083 (558) 525 1,081 (513) 568 Pharmacy licenses — — — — 497 (244) 253 Trademarks and trade names 12 816 (371) 445 925 (394) 531 Technology 2 128 (113) 15 150 (122) 28 Other 8 192 (171) 21 254 (226) 28 Total $ 5,061 $ (2,931) $ 2,130 (1) $ 6,646 $ (3,768) $ 2,878 (1) Excludes net intangible assets of approximately $452 million related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” This amount was included under the caption “Assets held for sale” in the Condensed Consolidated Balance Sheet as of December 31, 2021. Amortization of these assets ceased upon classification as Assets held for sale in the second and third quarters of 2022. Amortization expense of intangible assets was $80 million and $262 million during the three and nine months ended December 31, 2021, respectively, and $108 million and $320 million during the three and nine months ended December 31, 2020, respectively. Estimated amortization expense of these assets is as follows: $70 million, $226 million, $215 million, $209 million, and $177 million for the remainder of 2022 and each of the succeeding years through 2026, respectively, and $1.2 billion thereafter. All intangible assets were subject to amortization as of December 31, 2021 and March 31, 2021. |
Debt and Financing Activities
Debt and Financing Activities | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Activities | Debt and Financing Activities Long-term debt consisted of the following: (In millions) December 31, 2021 March 31, 2021 U.S. Dollar notes (1) (2) 2.70% Notes due December 15, 2022 $ 400 $ 400 2.85% Notes due March 15, 2023 360 400 3.80% Notes due March 15, 2024 918 1,100 0.90% Notes due December 3, 2025 500 500 1.30% Notes due August 15, 2026 498 — 7.65% Debentures due March 1, 2027 150 167 3.95% Notes due February 16, 2028 343 600 4.75% Notes due May 30, 2029 196 400 6.00% Notes due March 1, 2041 217 282 4.88% Notes due March 15, 2044 255 411 Foreign currency notes (1) (3) 0.63% Euro Notes due August 17, 2021 — 704 1.50% Euro Notes due November 17, 2025 680 700 1.63% Euro Notes due October 30, 2026 568 587 3.13% Sterling Notes due February 17, 2029 618 627 Lease and other obligations (4) 253 270 Total debt 5,956 7,148 Less: Current portion 438 742 Total long-term debt $ 5,518 $ 6,406 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semi-annually. (3) Interest on these foreign currency notes is payable annually. (4) Excludes current and long-term debt of approximately $5 million and $12 million, respectively, as of December 31, 2021 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were included under the caption “Liabilities held for sale” in the Condensed Consolidated Balance Sheet as of December 31, 2021. Long-Term Debt The Company’s long-term debt includes both U.S. dollar and foreign currency-denominated borrowings. Debt outstanding totaled $6.0 billion and $7.1 billion at December 31, 2021 and March 31, 2021, respectively, of which $438 million and $742 million, respectively, was included under the caption “Current portion of long-term debt” within the Company’s Condensed Consolidated Balance Sheets. On August 12, 2021, the Company completed a public offering of 1.30% Notes due August 15, 2026 (the “2026 Notes”) in a principal amount of $500 million. Interest on the 2026 Notes is payable semi-annually on February 15th and August 15th of each year, commencing on February 15, 2022. Proceeds received from this note issuance, net of discounts and offering expenses, were $495 million. The Company utilized the net proceeds from this note for general corporate purposes. The 2026 Notes, which constitutes a “Series,” are an unsecured and unsubordinated obligation of the Company and rank equally with all of the Company’s existing, and from time-to-time, future unsecured and unsubordinated indebtedness outstanding. The 2026 Notes are governed by materially similar indentures and officers’ certificates as those of other Series issued by the Company. Upon required notice to holders of notes with fixed interest rates, the Company may redeem those notes at any time prior to maturity, in whole or in part, for cash at redemption prices. 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 Inc., Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services within a specified period, an offer must be made to purchase the 2026 Notes from the holders at a price equal to 101% of the then outstanding principal amount of the 2026 Notes, plus accrued and unpaid interest to, but not including, the date of repurchase. The indenture and the related officers’ certificate for the 2026 Note, subject to the exceptions and in compliance with the conditions as applicable, specify that the Company may not consolidate, merge or sell all or substantially all of its assets, incur liens, or enter into sale-leaseback transactions exceeding specific terms, without lenders’ consent. The indentures also contain customary events of default provisions. On July 17, 2021, the Company redeemed its 0.63% €600 million (or, approximately $709 million) total principal Euro-denominated notes, originally due on August 17, 2021, prior to maturity. The notes were redeemed at par value using cash on hand. Tender Offer On July 23, 2021, the Company completed a cash tender offer for a portion of its existing outstanding (i) 2.85% Notes due 2023, (ii) 3.80% Notes due 2024, (iii) 7.65% Debentures due 2027, (iv) 3.95% Notes due 2028, (v) 4.75% Notes due 2029, (vi) 6.00% Notes due 2041, and (vii) 4.88% Notes due 2044 (collectively referred to herein as the “Tender Offer Notes”). In connection with the tender offer, the Company paid an aggregate consideration of $1.1 billion to redeem $922 million principal amount of the notes at a redemption price equal to 100% of the principal amount and premiums of $182 million, plus accrued and unpaid interest of $14 million. The redemption of the Tender Offer Notes was accounted for as a debt extinguishment. As a result of the redemption, the Company incurred a pre-tax loss on debt extinguishment of $191 million in the nine months ended December 31, 2021, which included premiums of $182 million as well as the write-off of unamortized debt issuance costs and transaction fees incurred totaling $9 million. Revolving Credit Facilities The Company has a Credit Agreement, dated as of September 25, 2019 (the “2020 Credit Facility”), that provides a syndicated $4.0 billion five-year senior unsecured credit facility with a $3.6 billion aggregate sublimit of availability in Canadian dollars, British pound sterling, and Euro. Borrowings under the 2020 Credit Facility bear interest based upon the London Interbank Offered Rate (“LIBOR”), Canadian Dealer Offered Rate for credit extensions denominated in Canadian dollars, a prime rate, or alternative overnight rates as applicable, plus agreed margins. The 2020 Credit Facility matures in September 2024 and had no borrowings during the three and nine months ended December 31, 2021 and 2020 and no amounts outstanding as of December 31, 2021 and March 31, 2021. On March 31, 2021, the Company entered into Amendment No. 2 to the 2020 Credit Facility, which superseded Amendment No. 1, dated as of February 1, 2021. The 2020 Credit Facility, as amended, contains various customary investment grade covenants, including a financial covenant which obligates the Company to maintain a maximum Total Debt to Consolidated EBITDA ratio, as defined in the amended credit agreement. If the Company does not comply with these covenants, its ability to use the 2020 Credit Facility may be suspended and repayment of any outstanding balances under the 2020 Credit Facility may be required. At December 31, 2021, the Company was in compliance with all covenants. The Company also maintains bilateral credit facilities primarily denominated in Euro with a committed amount of $7 million and an uncommitted amount of $114 million as of December 31, 2021. Borrowings and repayments were not material during the three and nine months ended December 31, 2021 and 2020. Amounts outstanding under these credit lines were not material as of December 31, 2021 and March 31, 2021. Commercial Paper The Company maintains a commercial paper program to support its working capital requirements and for other general corporate purposes. Under the program, the Company can issue up to $4.0 billion in outstanding commercial paper notes. During the nine months ended December 31, 2021, the Company borrowed $3.6 billion and repaid $3.3 billion under the program. During the nine months ended December 31, 2020, the Company borrowed $5.5 billion and repaid $5.3 billion under the program. At December 31, 2021 there were $372 million commercial paper notes outstanding at a weighted average interest rate of 0.29%. At March 31, 2021, there were no commercial paper notes outstanding. |
Pension Benefits
Pension Benefits | 9 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension Benefits | Pension Benefits The net periodic expense for defined benefit pension plans was approximately $2 million and $4 million for the three and nine months ended December 31, 2021, respectively, and $4 million and $17 million for the three and nine months ended December 31, 2020, respectively. Cash contributions to these plans were $18 million and $35 million for the three and nine months ended December 31, 2021, respectively, and $8 million and $19 million for the three and nine months ended December 31, 2020, respectively. The cash contributions for the three and nine months ended December 31, 2021 included a $17 million payment to a U.K. pension plan. 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 on a straight-line basis over the average remaining future service periods and expected life expectancy. As part of the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale,” pension assets of $52 million and pension liabilities of $148 million were included under the captions “Assets held for sale” and “Liabilities held for sale,” respectively, in the Condensed Consolidated Balance Sheet as of December 31, 2021. |
Hedging Activities
Hedging Activities | 9 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities | Hedging Activities In the normal course of business, the Company is exposed to interest rate and foreign currency exchange rate fluctuations. At times, the Company limits these risks through the use of derivatives such as cross-currency swaps, foreign currency forward contracts, and interest rate swaps. In accordance with the Company’s policy, derivatives are only used for hedging purposes. It does not use derivatives for trading or speculative purposes. Foreign Currency Exchange Risk The Company conducts its business worldwide in U.S. dollars and the functional currencies of its foreign subsidiaries, including Euro, British pound sterling, and Canadian dollars. Changes in foreign currency exchange rates could have a material adverse impact on the Company’s financial results that are reported in U.S. dollars. The Company is also exposed to foreign currency exchange rate risk related to its foreign subsidiaries, including intercompany loans denominated in non-functional currencies. The Company has 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 and other obligations denominated in non-functional currencies. These programs reduce but do not entirely eliminate foreign currency exchange rate risk. Non-Derivative Instruments Designated as Hedges At December 31, 2021 and March 31, 2021, the Company had €1.1 billion and €1.7 billion, respectively, of Euro-denominated notes designated as non-derivative net investment hedges. These hedges are utilized to hedge portions of the Company’s 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 in “Accumulated other comprehensive loss” in the Condensed Consolidated Statements of Stockholders’ Equity (Deficit) where they offset foreign currency translation gains and losses recorded on the Company’s 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. Gains or losses from net investment hedges recorded within Other comprehensive income were gains of $23 million and $34 million during the three and nine months ended December 31, 2021, respectively, and losses of $84 million and $201 million during the three and nine months ended December 31, 2020, respectively. There was no ineffectiveness in non-derivative net investment hedges during the three and nine months ended December 31, 2021 and 2020. Derivatives Designated as Hedges At December 31, 2021 and March 31, 2021, the Company had cross-currency swaps designated as net investment hedges with a total gross notional amount of $500 million Canadian dollars. Under the terms of the cross-currency swap contracts, the Company agrees 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 the Company’s net investments denominated in Canadian dollars 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 loss” in the Condensed Consolidated Statements of Stockholders’ Equity (Deficit) where they offset foreign currency translation gains and losses recorded on the Company’s net investments denominated in Canadian dollars. To the extent cross-currency swaps designated as hedges are ineffective, changes in carrying value attributable to the change in spot rates are recorded in earnings. There was no ineffectiveness in the Company’s net investment hedges for the three and nine months ended December 31, 2021 and 2020. The remaining cross-currency swaps will mature in November 2024. Gains or losses from the Company’s cross-currency swaps designated as net investment hedges recorded in Other comprehensive income were losses of $2 million and gains of $3 million during the three and nine months ended December 31, 2021, respectively, and losses of $45 million and $108 million during the three and nine months ended December 31, 2020, respectively. There was no ineffectiveness in the Company’s cross-currency swap hedges for the three and nine months ended December 31, 2021 and 2020. The Company is a party to a number of cross-currency swaps designated as fair value hedges with total notional amounts of £450 million British pound sterling. Under the terms of the cross-currency swap contracts, the Company agreed with third parties to exchange fixed interest payments in British pound sterling for floating interest payments in U.S. dollars based on three-month LIBOR plus a spread. These swaps are utilized to hedge the changes in the fair value of the underlying £450 million British pound sterling notes resulting from changes in benchmark interest rates and foreign exchange rates. The changes in the fair value of these derivatives, which are designated as fair value hedges, and the offsetting changes in the fair value of the hedged notes are recorded in earnings. Gains from these fair value hedges recorded in earnings were largely offset by the losses recorded in earnings related to these notes. The swaps will mature in February 2023. From time to time, the Company also enters into cross-currency swaps to hedge intercompany loans denominated in non-functional currencies. For cross-currency swap transactions, the Company agrees 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 December 31, 2021 and March 31, 2021, the Company had cross-currency swaps with total gross notional amounts of approximately $1.8 billion and $2.6 billion, respectively, which are designated as cash flow hedges. These swaps will mature between December 2022 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 loss 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. On April 27, 2020, the Company entered into forward starting interest rate swaps designated as cash flow hedges, with combined notional amounts of $500 million and €600 million, to hedge the variability of future benchmark interest rates on planned bond issuances. Under the terms of the forward interest rate swap contracts, the Company agreed with third parties to pay fixed interest payments for the $500 million swaps for floating interest payments in U.S. dollars based on three-month LIBOR and to pay fixed interest payments for floating interest payments in Euros based on six-month Euro Interbank Offered Rate (“EURIBOR”) for the €600 million swaps. The $500 million swaps were terminated upon the issuance of the 2025 Notes in November 2020. The settlement loss on the swaps was not material and is being amortized on a straight-line basis as interest expense over the five-year life of the 2025 Notes. The €600 million swaps were terminated in the second quarter of 2022 and the loss on termination of the swaps recorded in interest expense was not material for the nine months ended December 31, 2021. Refer to Financial Note 8, “Debt and Financing Activities,” for more information. From September 20, 2021 to November 4, 2021, the Company entered into forward starting interest rate swaps designated as cash flow hedges, with a combined notional amount of $500 million, to hedge the variability of future benchmark interest rates on a planned bond issuance. Under the terms of the forward interest rate swap contracts, the Company agreed with third parties to pay fixed interest payments for the $500 million swaps for floating interest payments in U.S. dollars based on three-month LIBOR. Gains or losses from cash flow hedges recorded in Other comprehensive income were losses of $8 million and gains of $3 million during the three and nine months ended December 31, 2021 and losses of $14 million and $42 million during the three and nine months ended December 31, 2020, respectively. Gains or losses reclassified from Accumulated other comprehensive income and recorded in “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations were not material in the three and nine months ended December 31, 2021 and 2020. There was no ineffectiveness in the Company’s cash flow hedges for the three and nine months ended December 31, 2021 and 2020. 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 fair value included in earnings. The Company had a number of forward contracts to hedge the Euro against cash flows denominated in British pound sterling and other European currencies. At December 31, 2021 and March 31, 2021, the total gross notional amounts of these contracts were $5 million and $39 million, respectively. These contracts matured between October 2021 and January 2022 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 in “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. Changes in the fair values were not material in the three and nine months ended December 31, 2021 and 2020. Gains or losses from these contracts are largely offset by changes in the value of the underlying intercompany obligations. Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet December 31, 2021 March 31, 2021 Fair Value of U.S. Dollar Notional Fair Value of U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Cross-currency swaps (current) Prepaid expenses and other/Other accrued liabilities $ 1 $ 28 $ 570 $ 4 $ 47 $ 826 Cross-currency swaps (non-current) Other non-current assets/liabilities 66 56 2,205 72 92 2,663 Forward starting interest rate swaps (current) Other accrued liabilities — — — — 7 704 Forward starting interest rate swaps (non-current) Other non-current assets/liabilities 2 2 500 — — — Total $ 69 $ 86 $ 76 $ 146 Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ — $ — $ — $ 29 Foreign exchange contracts (current) Other accrued liabilities — — 5 — 1 10 Total $ — $ — $ — $ 1 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain assets and liabilities at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures . The fair value hierarchy consists of three levels of inputs that may be used to measure fair value as follows: Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - significant other observable market-based inputs. Level 3 - significant unobservable inputs for which little or no market data exists and requires considerable assumptions that are significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis Cash and cash equivalents at December 31, 2021 and March 31, 2021 included investments in money market funds of $1.1 billion and $1.6 billion, respectively, which are reported at fair value. The fair value of money market funds was determined 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 the Company’s marketable securities were not material at December 31, 2021 and March 31, 2021. Fair values of the Company’s interest rate swaps, foreign currency forward contracts, and cross-currency swaps were determined using observable inputs from available market information, including quoted interest rates, 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 10, “Hedging Activities,” for fair value and other information on the Company’s derivatives including interest rate swaps, forward foreign currency contracts, and cross-currency swaps. The Company holds investments in equity securities of U.S. growth stage companies that address both current and emerging business challenges in the healthcare industry and which had carrying values of $358 million and $269 million, respectively, at December 31, 2021 and March 31, 2021. These investments primarily consist of equity securities without readily determinable fair values and are included in “Other non-current assets” in the Condensed Consolidated Balance Sheets. During the nine months ended December 31, 2021 and 2020, certain of the Company’s investments in equity securities without readily determinable fair values experienced transactions which resulted in changes in the observable price of those securities. Additionally, during the nine months ended December 31, 2020, certain of the Company’s investments in equity securities were converted into shares of public common stock through initial public offerings and an acquisition. Net gains related to the Company’s investments in these equity securities, primarily representing unrealized gains on the securities discussed above, were $104 million for the nine months ended December 31, 2021 and $28 million and $87 million for the three and nine months ended December 31, 2020, respectively. These net gains were recorded in “Other income, net,” in the Condensed Consolidated Statements of Operations. The carrying value of publicly traded investments was determined using quoted prices for identical investments in active markets and are considered to be Level 1 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis In addition to assets and liabilities that are measured at fair value on a recurring basis, the Company’s assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. At December 31, 2021, the assets and liabilities associated with the disposal groups in Europe held for sale were measured at the lower of carrying value or fair value less costs to sell, as discussed in more detail in Financial Note 2, “Held for Sale." At December 31, 2021 and 2020, assets measured at fair value on a nonrecurring basis included long-lived assets associated with the Company’s restructuring initiatives as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges.” Assets measured at fair value on a nonrecurring basis as of December 31, 2020 included long-lived assets in the Company’s International segment and goodwill of the Company’s Europe Retail Pharmacy reporting unit within the International segment. Refer to Financial Note 7, “Goodwill and Intangible Assets, Net,” for more information. At March 31, 2021, assets measured at fair value on a nonrecurring basis included long-lived assets of the Company’s International segment and goodwill of the Company’s Europe Retail Pharmacy reporting unit within the International segment. The aforementioned investments in equity securities of U.S. growth stage companies include the carrying value of investments without readily determinable fair values, which were determined using a measurement alternative and are recorded at cost less impairment, plus or minus any changes in observable price from orderly transactions of the same or similar security of the same issuer. 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. There were no other liabilities measured at fair value on a nonrecurring basis at December 31, 2021 and March 31, 2021. Other Fair Value Disclosures At December 31, 2021 and March 31, 2021, 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 Company determines the fair value of commercial paper using quoted prices in active markets for identical instruments, which are considered Level 1 inputs under the fair value measurements and disclosure guidance. The Company’s long-term debt is recorded at amortized cost. The carrying value and fair value of the Company’s long-term debt was as follows: December 31, 2021 March 31, 2021 (In millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 5,956 $ 6,376 $ 7,148 $ 7,785 The estimated fair value of the Company’s 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. Restricted Cash Restricted cash, included within “Prepaid expenses and other” in the Company’s Condensed Consolidated Balance Sheets as of December 31, 2021, primarily consists of $354 million held in escrow related to the initial payment under the proposed settlement agreement for opioid-related claims of governmental entities, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” Additionally, restricted cash as of December 31, 2021 and March 31, 2021 includes funds temporarily held on behalf of unaffiliated medical practice groups related to their COVID-19 business continuity borrowings. These amounts have been designated as restricted cash due to contractual provisions requiring their segregation from all other funds until utilized by the medical practices for a limited list of qualified activities and corresponding deposit liabilities associated with these funds have been recorded by the Company within “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheets as of December 31, 2021 and March 31, 2021. 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. The Company considered a market approach as well as an income approach using a DCF model to determine the fair value of reporting units. Long-lived Assets The Company measures certain long-lived and intangible assets at fair value on a nonrecurring basis when events occur that indicate an asset group may not be recoverable. If the carrying amount of an asset group is not recoverable, an impairment charge is recorded to reduce the carrying amount by the excess over its fair value. The Company utilizes multiple approaches including the DCF model and market approaches for estimating the fair value of intangible assets. The future cash flows used in the analysis are based on internal cash flow projections from its 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. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities In addition to commitments and obligations incurred in the ordinary course of business, the Company is subject to a variety of claims and legal proceedings, including claims from customers and vendors, pending and potential legal actions for damages, governmental investigations, and other matters. The Company and its affiliates are parties to the legal claims and proceedings described below and in Financial Note 19 to the Company’s 2021 Annual Report , which disclosure is incorporated in this footnote by this reference. The Company is vigorously defending itself against those claims and in those proceedings. Significant developments in those matters are described below. If the Company is unsuccessful in defending, or if it determines to settle, any of these matters, it may be required to pay substantial sums, be subject to injunction and/or be forced to change how it operates its business, which could have a material adverse impact on its financial position or results of operations. Unless otherwise stated, the Company is unable to reasonably estimate the loss or a range of possible loss for the matters described below. Often, the Company is unable to determine that a loss is probable, or to reasonably estimate the amount of loss or a range of loss, for a claim because of the limited information available and the potential effects of future events and decisions by third parties, such as courts and regulators, that will determine the ultimate resolution of the claim. Many of the matters described are at preliminary stages, raise novel theories of liability, or seek an indeterminate amount of damages. It is not uncommon for claims to remain unresolved over many years. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and whether it can make a reasonable estimate of the loss or range of loss. When the Company determines that a loss from a claim is probable and reasonably estimable, it records a liability for an estimated amount. The Company also provides disclosure when it is reasonably possible that a loss may be incurred or when it is reasonably possible that the amount of a loss will exceed its recorded liability. Amounts included within “Claims and litigation charges, net” in the Condensed Consolidated Statement of Operations consist of estimated loss contingencies related to opioid-related litigation matters. I. Litigation and Claims Involving Distribution of Controlled Substances The Company and its affiliates are defendants in many cases asserting claims related to distribution of controlled substances. They are named as defendants along with other pharmaceutical wholesale distributors, pharmaceutical manufacturers, and retail pharmacy chains. The plaintiffs in these actions include state attorneys general, county and municipal governments, tribal nations, hospitals, health and welfare funds, third-party payors, and individuals. These actions have been filed in state and federal courts throughout the U.S., and in Puerto Rico and Canada. They seek monetary damages and other forms of relief based on a variety of causes of action, including negligence, public nuisance, unjust enrichment, and civil conspiracy, as well as alleging violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), state and federal controlled substances laws, and other statutes. Since December 5, 2017, nearly all such cases pending in federal district courts have been transferred for consolidated pre-trial proceedings to a multi-district litigation (“MDL”) in the United States District Court for the Northern District of Ohio captioned In re: National Prescription Opiate Litigation , Case No. 17-md-2804. At present, there are approximately 2,800 cases under the jurisdiction of the MDL court. The Company is also named in approximately 350 similar state court cases pending in 40 states plus Puerto Rico, along with 4 cases in Canada. These include actions filed by 23 state attorneys general, and some by or on behalf of individuals, including wrongful death lawsuits, and putative class action lawsuits brought on behalf of children with neonatal abstinence syndrome due to alleged exposure to opioids in utero. Trial dates have been set in several of these state court cases. For example, trial in the case brought by the Washington attorney general began on November 15, 2021. Trial in the case brought by the Alabama attorney general was postponed until April 18, 2022, and the parties continue to engage in settlement negotiations. On July 21, 2021, the Company and the two other national pharmaceutical distributors announced that they had negotiated a comprehensive proposed settlement agreement which, if all conditions are satisfied, would result in the settlement of a substantial majority of opioid lawsuits filed by state and local governmental entities. If the proposed settlement agreement and settlement process leads to final settlement, the three distributors would pay up to approximately $21 billion over 18 years, with up to $7.9 billion to be paid by the Company for its 38.1% portion; a minimum of 85% of such payments must be used by state and local governmental entities to remediate the opioid epidemic. Most of the remaining percentage relates to plaintiffs’ attorneys’ fees and costs, and would be payable over a shorter time period. The proposed agreement would also establish a clearinghouse that would consolidate controlled-substance distribution data from the three largest U.S. distributors, which will be available to the settling states to use as part of their anti-diversion efforts. The proposed agreement only addresses the claims of U.S. state attorneys general and political subdivisions in participating states. The West Virginia subdivisions and Native American tribes are not part of this settlement process. The proposed agreement is subject to contingencies and will not become effective unless the Company determines that a sufficient number of states and political subdivisions, including those that have not sued, have agreed to be bound by the agreement (or otherwise had their claims foreclosed). On September 4, 2021, the Company announced that 42 of 49 eligible states had affirmatively signed on to the proposed agreement. Since that time, the attorneys general of Georgia, Nevada, New Mexico, and Rhode Island have announced that they will join, bringing the state total to 46 out of 49 eligible states, all 5 U.S. territories, and Washington, DC. The attorneys general of Alabama, Oklahoma, and Washington have not joined the proposed settlement. Beginning on September 4, 2021, each participating state offered its political subdivisions, including those that have not sued, the opportunity to participate in the settlement. That period concluded on January 26, 2022. Under the agreement, the participating states have until February 7, 2022 to determine whether there is sufficient participation in the settlement by political subdivisions to proceed to implementation. After the conclusion of this period, the Company will have until February 25, 2022 to determine whether a sufficient number of states and political subdivisions have joined for the settlement to proceed to implementation. The exact amount that would be due under the proposed agreement depends on several factors, including the participation rate of states and political subdivisions, the extent to which states take action to foreclose opioid lawsuits by political subdivisions, and the extent to which political subdivisions in settling states file additional opioid lawsuits against the Company after the proposed agreement becomes effective. The proposed agreement contemplates that if certain governmental entities do not agree to a settlement under the framework, but the distributors nonetheless conclude that there is sufficient participation to warrant the settlement, there would be a corresponding reduction in the amount due from the Company to account for the unresolved claims of the governmental entities that do not participate. Those non-participating governmental entities could continue to pursue their claims against the Company and other defendants. Consistent with the terms of the proposed agreement, the Company placed its first annual payment of approximately $354 million, into escrow on September 30, 2021. Those escrow amounts were presented as restricted cash within “Prepaid expenses and other” in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2021. On January 25, 2022, the Company placed approximately $19 million into escrow to reflect the participation of Georgia, New Mexico, and Nevada. The amounts placed into escrow exclude the proportionate allocation under the proposed settlement for each non-participating state and would be disbursed when and if the proposed agreement becomes effective. Subsequent annual payments would be due on July 15 of each year. On July 20, 2021, the Company announced that it and the two other national pharmaceutical distributors had agreed to pay up to $1.2 billion, of which the Company’s portion would be 38.1% (or, approximately $450 million), in a settlement with the State of New York and its participating subdivisions, including Nassau and Suffolk Counties, to resolve opioid-related claims. This settlement was negotiated in connection with the broad proposed settlement described above, but provides assurance that New York and its participating subdivisions will receive a settlement amount consistent with their allocations under the broad settlement framework, as well as certain attorneys’ fees and costs. If the broad settlement is finalized, New York and its participating subdivisions will become part of that broader agreement. On September 28, 2021, the Company and the two other national pharmaceutical distributors reached an agreement with the state of Ohio and its participating subdivisions and agreed to pay $881 million, of which the Company’s portion would be 38.1% (or, approximately $336 million), to resolve opioid-related claims. This settlement was negotiated in connection with the broad proposed settlement described above, but provides assurance that Ohio and its participating subdivisions will receive a settlement amount consistent with their allocations under the broad settlement framework, as well as certain attorneys’ fees and costs. If the broad settlement is finalized, Ohio and its participating subdivisions will become part of that broader agreement. On January 24, 2022, the Company and two other national pharmaceutical distributors reached an agreement with the state of Rhode Island and its participating subdivisions and agreed to pay approximately $91 million, of which the Company’s portion would be 38.1% (or, approximately $35 million), plus certain attorneys’ fees and costs, to resolve opioid-related claims. This settlement was negotiated in connection with the broad proposed settlement described above, but provides assurance that Rhode Island and its participating subdivisions will receive a settlement amount consistent with their allocations under the broad settlement framework, as well as certain attorneys’ fees and costs. If the broad settlement is finalized, Rhode Island and its participating subdivisions will become part of that broader agreement. On January 28, 2022, the Company and two other national pharmaceutical distributors reached an agreement with the state of Florida and its participating subdivisions and agreed to pay approximately $1.4 billion, of which the Company’s portion would be 38.1% (or, approximately $530 million), to resolve opioid-related claims. This settlement was negotiated in connection with the broad proposed settlement described above, but provides assurance that Florida and its participating subdivisions will receive a settlement amount consistent with their allocations under the broad settlement framework. If the broad settlement is finalized, Florida and its participating subdivisions will become part of that broader agreement. On September 28, 2021, the Company announced that it and the two other national distributors had reached an agreement with the Cherokee Nation to pay approximately $75 million over 6.5 years to resolve opioid-related claims, of which the Company’s portion would be 38.1% (or, approximately $29 million). The Company has also negotiated a broad resolution of opioid-related claims brought by Native American tribes. Under the proposed agreement, which has been endorsed by the leadership committee of counsel representing the tribes, the Company and the two other national distributors would pay the Native American tribes other than the Cherokee Nation approximately $440 million over 6 years, of which the Company’s portion would be 38.1% (or, approximately $167 million). This broad resolution is contingent on the participation of a substantial majority of the Native American tribes that have brought opioid-related claims against the Company. With respect to the West Virginia subdivisions, trial in the case of Cabell County and City of Huntington, occurred in the U.S. District Court for the Southern District of West Virginia, and concluded on July 28, 2021. The outcome of that trial is pending. The claims of certain other West Virginia subdivisions are pending in the federal MDL and before the state Mass Litigation Panel. On September 30, 2021, the Mass Litigation Panel issued an order scheduling a liability-only trial on the public nuisance claims of certain political subdivisions against the Company and the two other national pharmaceutical distributors for July 5, 2022. The Company believes that a broad settlement of opioid claims by governmental entities is probable, and that the loss related thereto can be reasonably estimated. The Company recorded a charge of $8.1 billion ($6.8 billion after-tax) in the fiscal year ended March 31, 2021 related to its share of the global settlement as well as claims of West Virginia municipalities and the Native American tribes. In connection with the matters described above, the Company recorded additional charges of $193 million ($160 million after-tax) in the nine months ended December 31, 2021 within “Claims and litigation charges, net” in the Condensed Consolidated Statements of Operations, in connection with the proposed settlement agreement and other opioid related settlement accruals. The Company’s estimated accrued liability for opioid-related claims of governmental entities is as follows as of December 31, 2021: (In millions) December 31, 2021 Current litigation liabilities (1) $ 1,060 Long-term litigation liabilities 7,153 Total litigation liabilities $ 8,213 (1) This amount, recorded in “Other accrued liabilities” in the Condensed Consolidated Balance Sheet, is the amount estimated to be paid prior to December 31, 2022. If a broad settlement is not reached under the proposed agreement, litigation will continue. The Company continues to prepare for trial in these pending matters, and believes that it has valid defenses to the claims pending against it, and it intends to vigorously defend against all such claims if acceptable settlement terms are not achieved. Although the vast majority of opioid claims have been brought by governmental entities in the U.S., the Company is also a defendant in cases brought in the U.S. by private plaintiffs, such as hospitals, health and welfare funds, third-party payors, and individuals, as well as four cases brought in Canada (three by governmental or tribal entities and one by an individual). These claims, and those of private entities generally, are not included in the settlement framework for governmental entities, or in the charges recorded by the Company, described above. The Company believes it has valid legal defenses in these matters and intends to mount a vigorous defense. One such case brought by a group of individual plaintiffs in Glynn County, Georgia Superior Court seeks to recover for damages allegedly arising from their family members’ abuse of prescription opioids. Poppell v. Cardinal Health, Inc. et al. , CE19-00472. Trial in that case is scheduled to begin on March 21, 2022. The Company has not concluded a loss is probable in any of these matters; nor is the amount of any loss reasonably estimable. Because of the many uncertainties associated with any potential settlement arrangement or other resolution of all of these opioid-related litigation matters, the Company is not able to reasonably estimate the upper or lower ends of the range of ultimate possible loss for all opioid-related litigation matters. An adverse judgment or negotiated resolution in any of these matters could have a material adverse impact on the Company’s financial position, cash flows or liquidity, or results of operations. II. Other Litigation and Claims 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 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. On December 30, 2017, four investment funds, which had allegedly entered into swap transactions regarding shares in Celesio AG that would have enabled them to decide whether to accept McKesson Europe Holdings’s takeover offer in its acquisition of Celesio AG, filed a complaint, Davidson Kempner International (BVI) Ltd. et al. v. McKesson Europe Holdings GmbH & Co. KGaA , No.16 O 475/17. The complaints allege 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 May 11, 2018, the court in Polygon dismissed the claims against McKesson Europe. Plaintiffs appealed this ruling and, on December 19, 2018, the Higher Regional Court (Oberlandesgericht) of Stuttgart confirmed the full dismissal of the Polygon matter. On November 23, 2021, the Federal Court of Justice (Bundesgerichtshof) rejected the Polygon plaintiffs’ further appeal. On March 15, 2019, the lower court in Davidson similarly dismissed the case. Plaintiffs appealed this ruling and, on October 9, 2019, the Higher Regional Court (Oberlandesgericht) of Stuttgart confirmed the full dismissal of the Davidson matter. On November 23, 2021, the Federal Court of Justice (Bundesgerichtshof) rejected the Davidson plaintiffs’ further appeal. On April 16, 2013, the Company’s 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 September 30, 2013, the court granted the United States’ motion to dismiss the claims pled against Amgen. On September 17, 2018, the court granted USON’s motion to dismiss the claims pled against it, with leave to amend. On November 16, 2018, the relators filed a fourth amended complaint; that complaint was dismissed with prejudice on December 1, 2021. III. 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. Such subpoenas and requests 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 of claims against the Company. The Company responds to these requests in the ordinary course of business. On November 21, 2016, the Belgian Competition Authority carried out inspections at the premises of several Belgian wholesalers, including Belmedis SA, which was subsequently acquired by the Company. Pharma Belgium NV was also part of the investigation. On April 23, 2021, the Company received correspondence from the Belgian Competition Authority seeking civil penalties. The Company was fully reserved related to this matter for the third quarter of 2022, and the outcome will have no significant impact to the financial statements. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders' Equity (Deficit) 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”). On July 23, 2021, the Company raised its quarterly dividend from $0.42 to $0.47 per common share for dividends declared on or after such date by the Board. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements, and other factors. Share Repurchase Plans Stock repurchases may be made from time to time in open market transactions, privately negotiated transactions, through accelerated share repurchase (“ASR”) programs, or by combinations of such methods, any of which may use pre-arranged trading plans that are designed to meet the requirements of Rule 10b5-1(c) of the Securities Exchange Act of 1934. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations, and other market and economic conditions. In May 2021, the Company entered into an ASR program with a third-party financial institution to repurchase $1.0 billion of the Company’s common stock. The total number of shares repurchased under this ASR program was 5.2 million shares at an average price per share of $193.22. The Company received 4.3 million shares as the initial share settlement, and in August 2021 the Company received an additional 0.9 million shares upon the completion of this ASR program. During the three months ended December 31, 2021, the Company repurchased 3.3 million of the Company’s shares for $728 million through open market transactions at an average price per share of $223.89, of which $30 million was accrued at December 31, 2021 within “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheet for share repurchases executed in late December and settled in early January. Additionally, during the three months ended September 30, 2021, the Company repurchased 1.4 million of the Company’s shares for $280 million through open market transactions at an average price per share of $203.20. There were no open market share repurchases during the three months ended June 30, 2021. On December 8, 2021, the Company announced that the Board approved an increase of $4.0 billion in the authorization for repurchase of McKesson’s common stock. The total remaining authorization outstanding for repurchases of the Company’s common stock at December 31, 2021 was $4.8 billion. During the three months ended December 31, 2020, the Company repurchased 1.5 million of the Company’s shares for $231 million through open market transactions at an average price per share of $151.12. During the three months ended September 30, 2020, the Company repurchased 1.8 million of the Company’s shares for $269 million through open market transactions at an average price per share of $151.23. There were no share repurchases during the three months ended June 30, 2020. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the Company’s Accumulated other comprehensive income (loss), including noncontrolling interests and redeemable noncontrolling interests, by components for the three and nine months ended December 31, 2021 and 2020 are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) Other comprehensive income (loss) before reclassifications — 16 ⁽²⁾ (6) (1) 9 Amounts reclassified to income statement — — — (1) (1) Other comprehensive income (loss) — 16 (6) (2) 8 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (2) — — — (2) Other comprehensive income (loss) attributable to McKesson 2 16 (6) (2) 10 Balance at December 31, 2021 $ (1,555) $ (9) $ 15 $ (106) $ (1,655) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the three months ended December 31, 2021 include gains of $23 million related to net investment hedges from Euro-denominated notes and losses of $2 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $5 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2021 $ (1,361) $ (36) $ 13 $ (96) $ (1,480) Other comprehensive income (loss) before reclassifications (47) 21 ⁽²⁾ (3) 5 (24) Amounts reclassified to income statement 18 — 5 (3) 20 Other comprehensive income (loss) (29) 21 2 2 (4) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 7 (6) — — 1 Other comprehensive income (loss) attributable to McKesson (36) 27 2 2 (5) Exercise of put right by noncontrolling shareholders of McKesson Europe AG (158) — — (12) (170) Balance at December 31, 2021 $ (1,555) $ (9) $ 15 $ (106) $ (1,655) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the nine months ended December 31, 2021 include gains of $34 million related to net investment hedges from Euro-denominated notes and gains of $3 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $10 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at September 30, 2020 $ (1,512) $ 6 $ 25 $ (116) $ (1,597) Other comprehensive income (loss) before reclassifications 156 (96) ⁽²⁾ (12) 2 50 Amounts reclassified to income statement 47 — — 22 69 Other comprehensive income (loss) 203 (96) (12) 24 119 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 20 — — 5 25 Other comprehensive income (loss) attributable to McKesson 183 (96) (12) 19 94 Balance at December 31, 2020 $ (1,329) $ (90) $ 13 $ (97) $ (1,503) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the three months ended December 31, 2020 include losses of $84 million related to net investment hedges from Euro-denominated notes and losses of $45 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax benefit of $33 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2020 $ (1,780) $ 138 $ 49 $ (110) $ (1,703) Other comprehensive income (loss) before reclassifications 363 (229) ⁽²⁾ (36) (8) 90 Amounts reclassified to income statement 47 — — 24 71 Other comprehensive income (loss) 410 (229) (36) 16 161 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (41) (1) — 3 (39) Other comprehensive income (loss) attributable to McKesson 451 (228) (36) 13 200 Balance at December 31, 2020 $ (1,329) $ (90) $ 13 $ (97) $ (1,503) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the nine months ended December 31, 2020 include losses of $201 million related to net investment hedges from Euro-denominated notes and losses of $108 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax benefit of $80 million. |
Segments of Business
Segments of Business | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments of Business | Segments of Business The Company reports its financial results in four reportable segments: U.S. Pharmaceutical, RxTS, Medical-Surgical Solutions, and International. The organizational structure also includes Corporate, which consists of income and expenses associated with administrative functions and projects, and the results of certain investments. 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. The Company evaluates the performance of its operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes. Assets by operating segment are not reviewed by management for the purpose of assessing performance or allocating resources. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices. In addition, the segment sells financial, operational, and clinical solutions to pharmacies (retail, hospital, alternate site) and provides consulting, outsourcing, technological, and other services. The RxTS segment unifies the solutions and services of CoverMyMeds, RelayHealth, RxCrossroads, and McKesson Prescription Automation to serve biopharma and life sciences partners and patients. By combining automation and expert navigation of the healthcare ecosystem, RxTS connects pharmacies, providers, payers, and biopharma to address patients’ medication access, adherence, and affordability challenges to help people get the medicine they need to live healthier lives. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital reference labs, and home health care agencies. This segment offers more than 275,000 national brand medical-surgical products as well as McKesson’s own line of products through a network of distribution centers within the United States. The International segment includes the Company’s operations in Europe and Canada, bringing together non-U.S.-based drug distribution services, specialty pharmacy, retail, and infusion care services. The Company’s operations in Europe provide distribution and services to wholesale, institutional, and retail customers in 12 European countries where it owns, partners, or franchises with retail pharmacies and operates through two businesses: Pharmaceutical Distribution and Retail Pharmacy. The Company’s Canada operations deliver vital medicines, supplies, and information technology services throughout Canada and includes Rexall Health retail pharmacies. In the second quarter of 2022, the Company entered into an agreement to sell the E.U. disposal group and in the third quarter of 2022, the Company announced agreements to sell the U.K. disposal group and its Austrian business. Refer to Financial Note 2, “Held for Sale,” for more information. Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals is as follows: Three Months Ended December 31, Nine Months Ended December 31, (In millions) 2021 2020 2021 2020 Segment revenues (1) U.S. Pharmaceutical $ 55,041 $ 49,495 $ 158,471 $ 142,232 Prescription Technology Solutions 1,031 777 2,844 2,101 Medical-Surgical Solutions 3,082 3,054 8,734 7,388 International 9,460 9,273 27,815 27,365 Total revenues $ 68,614 $ 62,599 $ 197,864 $ 179,086 Segment operating profit (loss) (2) U.S. Pharmaceutical (3) $ 744 $ 635 $ 2,186 $ 1,871 Prescription Technology Solutions 129 114 361 270 Medical-Surgical Solutions (4) 308 260 679 536 International (5) (668) (71) (761) (113) Subtotal 513 938 2,465 2,564 Corporate expenses, net (6) (195) (8,246) (858) (8,462) Loss on debt extinguishment (7) — — (191) — Interest expense (41) (55) (135) (165) Income (loss) from continuing operations before income taxes $ 277 $ (7,363) $ 1,281 $ (6,063) (1) Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 40% of the RxTS segment’s total revenues, less than 4% of the Medical-Surgical Solutions segment’s total revenues, and less than 8% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are domestic. (2) Segment operating profit (loss) includes gross profit, net of total operating expenses, as well as other income, net, for the Company’s reportable segments. (3) The Company’s U.S. Pharmaceutical segment’s operating profit for the three and nine months ended December 31, 2021 includes $33 million and $79 million, respectively, and for the three and nine months ended December 31, 2020 includes $11 million and $115 million, respectively, of credits related to the last-in, first-out (“LIFO”) method of accounting for inventories. The nine months ended December 31, 2021 includes $46 million of cash receipts for the Company’s share of antitrust legal settlements. The nine months ended December 31, 2020 includes a charge of $50 million recorded in connection with the Company’s estimated liability under the State of New York’s Opioid Stewardship Act. (4) The Company’s Medical-Surgical Solutions segment’s operating profit for the nine months ended December 31, 2021 includes $164 million, and for the three and nine months ended December 31, 2020 includes $35 million and $49 million, respectively, of inventory charges on certain personal protective equipment and other related products. (5) The Company’s International segment’s operating loss for the three and nine months ended December 31, 2021 includes charges of $787 million to remeasure assets and liabilities of the U.K. disposal group to the lower of carrying value or fair value less costs to sell, as discussed in more detail in Financial Note 2, “Held for Sale.” The three and nine months ended December 31, 2021 includes charges of $58 million and $400 million to remeasure assets and liabilities of the E.U. disposal group to the lower of carrying value or fair value less costs to sell and to impair certain assets, including internal-use software that will not be utilized in the future, as discussed in more detail in Financial Note 2, “Held for Sale.” The nine months ended December 31, 2021 also includes a gain of $59 million related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. Operating loss for the three and nine months ended December 31, 2020 includes restructuring, impairment, and related charges of $131 million and $189 million, respectively, driven largely by long-lived asset impairment charges of $115 million primarily related to retail pharmacy businesses in Canada and Europe as well as costs associated with the closure of retail pharmacy stores within the U.K. business, as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges,” and a second quarter goodwill impairment charge of $69 million related to one of the Company’s reporting units in Europe, as discussed in more detail in Financial Note 7, “Goodwill and Intangible Assets, Net.” The three and nine months ended December 31, 2020 also includes charges of $47 million and $57 million, respectively, to remeasure to the lower of carrying value or fair value less costs to sell the assets and liabilities of the Company’s German pharmaceutical wholesale business which was contributed to a joint venture. (6) Corporate expenses, net for the three and nine months ended December 31, 2021 includes credits of $32 million and charges of $117 million primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in more detail in Financial Note 2, “Held for Sale.” Corporate expenses, net for the nine months ended December 31, 2021 also includes charges of $193 million related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” The three and nine months ended December 31, 2021 includes $33 million and $104 million, respectively, and the three and nine months ended December 31, 2020 includes $34 million and $118 million, respectively, of opioid-related costs, primarily litigation expenses. Corporate expenses, net for the three and nine months ended December 31, 2020 includes a charge of $8.1 billion related to the estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12 , “Commitments and Contingent Liabilities.” The nine months ended December 31, 2020 also includes a net gain of $131 million recorded in connection with insurance proceeds received during the first quarter of 2021 from the settlement of the shareholder derivative action related to the Company’s controlled substances monitoring program. Corporate expenses, net, for the nine months ended December 31, 2021 includes $104 million and for the three and nine months ended December 31, 2020 includes $30 million and $89 million, respectively, of net gains associated with certain of the Company’s equity investments. (7) Loss on debt extinguishment for the nine months ended December 31, 2021 consists of a charge of $191 million on debt extinguishment related to the Company’s July 2021 tender offer to redeem a portion of its existing debt, as discussed in more detail in Financial Note 8, “Debt and Financing Activities.” |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The condensed 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 the Company’s 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” in the Condensed Consolidated Statements of Operations. All significant intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. The Company considers itself to control an entity if it is the majority owner of or has voting control over such entity. The Company also assesses control through means other than voting rights and determines which business entity is the primary beneficiary of the variable interest entity (“VIE”). The Company consolidates VIEs when it is determined that it is the primary beneficiary of the VIE. Investments in business entities in which the Company does not have control but has the ability to exercise significant influence over operating and financial policies are accounted for using the equity method. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S.”) of America (“GAAP”) for interim financial reporting and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and therefore do not include all information and disclosures normally included in the annual consolidated financial statements. |
Use of Estimates | To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these financial statements and income and expenses during the reporting period. Actual amounts may differ from these estimated amounts. The Company continues to evaluate the ongoing impacts, including the economic consequences, of the coronavirus disease 2019 (“COVID-19”) pandemic. As COVID-19 further evolves, the Company’s accounting estimates and assumptions may change over time and may change materially in future periods. In the opinion of management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows of McKesson for the interim periods presented. |
Results of Operations | The results of operations for the three and nine months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the entire year. These interim financial statements should be read in conjunction with the annual audited financial statements, accounting policies, and financial notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2021, previously filed with the SEC on May 12, 2021 (“2021 Annual Report”). |
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. |
Reclassification | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In the first quarter of 2022, the Company prospectively adopted Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies and clarifies certain other aspects of accounting for income taxes. The adoption of this amended guidance did not have a material impact on the Company’s condensed consolidated financial statements or disclosures. |
Held for Sale | Assets and liabilities of certain European businesses to be disposed of by sale (“disposal groups”) are classified as “held for sale” if their carrying amounts are principally expected to be recovered through a sale transaction rather than through continuing use. The classification occurs when the disposal group is available for immediate sale and the sale is probable. These criteria are generally met when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying amount or fair value less costs to sell, and long-lived assets included within the disposal group are not depreciated or amortized. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. |
Commitments and Contingencies | In addition to commitments and obligations incurred in the ordinary course of business, the Company is subject to a variety of claims and legal proceedings, including claims from customers and vendors, pending and potential legal actions for damages, governmental investigations, and other matters. The Company and its affiliates are parties to the legal claims and proceedings described below and in Financial Note 19 to the Company’s 2021 Annual Report , which disclosure is incorporated in this footnote by this reference. The Company is vigorously defending itself against those claims and in those proceedings. Significant developments in those matters are described below. If the Company is unsuccessful in defending, or if it determines to settle, any of these matters, it may be required to pay substantial sums, be subject to injunction and/or be forced to change how it operates its business, which could have a material adverse impact on its financial position or results of operations. Unless otherwise stated, the Company is unable to reasonably estimate the loss or a range of possible loss for the matters described below. Often, the Company is unable to determine that a loss is probable, or to reasonably estimate the amount of loss or a range of loss, for a claim because of the limited information available and the potential effects of future events and decisions by third parties, such as courts and regulators, that will determine the ultimate resolution of the claim. Many of the matters described are at preliminary stages, raise novel theories of liability, or seek an indeterminate amount of damages. It is not uncommon for claims to remain unresolved over many years. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and whether it can make a reasonable estimate of the loss or range of loss. When the Company determines that a loss from a claim is probable and reasonably estimable, it records a liability for an estimated amount. The Company also provides disclosure when it is reasonably possible that a loss may be incurred or when it is reasonably possible that the amount of a loss will exceed its recorded liability. Amounts included within “Claims and litigation charges, net” in the Condensed Consolidated Statement of Operations consist of estimated loss contingencies related to opioid-related litigation matters. |
Held for Sale (Tables)
Held for Sale (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | The total assets and liabilities of the E.U. disposal group that have met the classification of held for sale in the Company’s Condensed Consolidated Balance Sheet are as follows: (In millions) December 31, 2021 Assets Current assets Receivables, net $ 1,346 Inventories, net 913 Prepaid expenses and other 75 Property, plant, and equipment, net 296 Operating lease right-of-use assets 221 Intangible assets, net 274 Other non-current assets 348 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1) (387) Total assets held for sale $ 3,086 Liabilities Current liabilities Drafts and accounts payable $ 1,433 Current portion of long-term debt 5 Current portion of operating lease liabilities 32 Other accrued liabilities 440 Long-term debt 12 Long-term deferred tax liabilities 47 Long-term operating lease liabilities 187 Other non-current liabilities 165 Total liabilities held for sale $ 2,321 (1) Excludes charges related to the impairment of individual assets, which are primarily comprised of a $113 million impairment of internally developed software recorded directly against the gross value of the assets impacted. The total assets and liabilities of the U.K. disposal group that have met the classification of held for sale in the Company’s Condensed Consolidated Balance Sheet are as follows: (In millions) December 31, 2021 Assets Current assets Cash and cash equivalents $ 206 Receivables, net 1,212 Inventories, net 698 Prepaid expenses and other 76 Property, plant, and equipment, net 91 Operating lease right-of-use assets 259 Intangible assets, net 120 Other non-current assets 78 Remeasurement of assets of businesses held for sale to fair value less costs to sell (822) Total assets held for sale $ 1,918 Liabilities Current liabilities Drafts and accounts payable $ 1,756 Current portion of operating lease liabilities 51 Other accrued liabilities 141 Long-term operating lease liabilities 269 Other non-current liabilities 57 Total liabilities held for sale $ 2,274 |
Restructuring, Impairment, an_2
Restructuring, Impairment, and Related Charges (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Related Costs | Restructuring, impairment, and related charges during the three and nine months ended December 31, 2021 consisted of the following: Three Months Ended December 31, 2021 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ — $ — $ — $ — $ 1 $ 1 Exit and other-related costs (1) 3 — 1 6 6 16 Asset impairments and accelerated depreciation — — — (1) 2 1 Total $ 3 $ — $ 1 $ 5 $ 9 $ 18 (1) Exit and other-related costs primarily consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Nine Months Ended December 31, 2021 (In millions) U.S. Pharmaceutical (1) Prescription Technology Solutions (1) Medical-Surgical Solutions (1) International (2) Corporate (1) Total Severance and employee-related costs, net $ 2 $ (1) $ 1 $ 10 $ 2 $ 14 Exit and other-related costs (3) 7 2 3 21 33 66 Asset impairments and accelerated depreciation 16 17 5 35 55 128 Total $ 25 $ 18 $ 9 $ 66 $ 90 $ 208 (1) Costs primarily relate to the transition to the partial remote work model described above. (2) Primarily represents costs related to optimization programs in Canada as well as the transition to a partial remote work model and the U.K. operating model and cost optimization efforts both described above. (3) Exit and other-related costs primarily consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Restructuring, impairment, and related charges during the three and nine months ended December 31, 2020 consisted of the following: Three Months Ended December 31, 2020 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Corporate (2) Total Severance and employee-related costs, net $ 3 $ — $ (3) $ 2 $ 7 $ 9 Exit and other-related costs (3) 3 — 1 5 6 15 Asset impairments and accelerated depreciation — — — 9 7 16 Total $ 6 $ — $ (2) $ 16 $ 20 $ 40 (1) Primarily represents costs associated with the U.K. operating model and cost optimization efforts described above. (2) Primarily represents costs associated with an operating model and cost optimization initiative and with the relocation of the Company’s corporate headquarters. Both of these initiatives were substantially completed in the year ended March 31, 2021. (3) Exit and other-related costs primarily include project consulting fees. Nine Months Ended December 31, 2020 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Corporate (2) Total Severance and employee-related costs, net $ 10 $ — $ — $ 22 $ 31 $ 63 Exit and other-related costs (3) 8 — 3 12 20 43 Asset impairments and accelerated depreciation — — 1 40 9 50 Total $ 18 $ — $ 4 $ 74 $ 60 $ 156 (1) Primarily represents costs associated with the U.K. operating model and cost optimization efforts described above, and an operating model and cost optimization initiative which was substantially completed in the year ended March 31, 2021. (2) Primarily represents costs associated with an operating model and cost optimization initiative and with the relocation of the Company’s corporate headquarters. Both of these initiatives were substantially completed in the year ended March 31, 2021. (3) Exit and other-related costs primarily include project consulting fees. |
Schedule of Restructuring and Asset Impairment Charges | The following table summarizes the activity related to the restructuring liabilities associated with the Company’s restructuring initiatives for the nine months ended December 31, 2021: (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Balance, March 31, 2021 (1) $ 19 $ 4 $ 3 $ 66 $ 59 $ 151 Restructuring, impairment, and related charges 25 18 9 66 90 208 Non-cash charges (16) (17) (5) (35) (55) (128) Cash payments (15) (1) (5) (22) (26) (69) Other — — — (11) (7) (18) Balance, December 31, 2021 (2) $ 13 $ 4 $ 2 $ 64 $ 61 $ 144 (1) As of March 31, 2021, the total reserve balance was $151 million, of which $99 million was recorded in “Other accrued liabilities” and $52 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. (2) As of December 31, 2021, the total reserve balance was $144 million, of which $52 million was recorded in “Other accrued liabilities,” $44 million was recorded in “Liabilities held for sale,” and $48 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests and Noncontrolling Interests (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Changes in Redeemable Noncontrolling Interests and Noncontrolling Interests | Changes in redeemable noncontrolling interests and noncontrolling interests for the three and nine months ended December 31, 2021 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, September 30, 2021 $ 484 $ — Net income attributable to noncontrolling interests 46 — Other comprehensive loss (2) — Reclassification of recurring compensation to other accrued liabilities (3) — Payments to noncontrolling interests (38) — Balance, December 31, 2021 $ 487 $ — (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2021 $ 196 $ 1,271 Net income attributable to noncontrolling interests 128 8 Other comprehensive income (loss) (2) 3 Reclassification of recurring compensation to other accrued liabilities (5) (8) Payments to noncontrolling interests (117) — Exercises of Put Right — (983) Reclassification of McKesson Europe redeemable noncontrolling interests 287 (287) Other — (4) Balance, December 31, 2021 $ 487 $ — Changes in redeemable noncontrolling interests and noncontrolling interests for the three and nine months ended December 31, 2020 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, September 30, 2020 $ 200 $ 1,265 Net income attributable to noncontrolling interests 41 11 Other comprehensive income — 25 Reclassification of recurring compensation to other accrued liabilities — (11) Payments to noncontrolling interests (41) — Other — 2 Balance, December 31, 2020 $ 200 $ 1,292 (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2020 $ 217 $ 1,402 Net income attributable to noncontrolling interests 120 32 Other comprehensive loss — (65) Reclassification of recurring compensation to other accrued liabilities — (32) Payments to noncontrolling interests (134) — Exercises of Put Right — (49) Other (3) 4 Balance, December 31, 2020 $ 200 $ 1,292 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of computations for basic and diluted earnings per common share | The computations for basic and diluted earnings or loss per common share are as follows: Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share amounts) 2021 2020 2021 2020 Income (loss) from continuing operations $ 39 $ (6,174) $ 885 $ (5,052) Net income attributable to noncontrolling interests (46) (52) (136) (152) Income (loss) from continuing operations attributable to McKesson Corporation (7) (6,226) 749 (5,204) Loss from discontinued operations, net of tax — — (3) (1) Net income (loss) attributable to McKesson Corporation $ (7) $ (6,226) $ 746 $ (5,205) Weighted-average common shares outstanding: Basic 151.6 159.5 154.0 161.2 Effect of dilutive securities: Stock options — — 0.2 — Restricted stock units (1) — — 1.6 — Diluted 151.6 159.5 155.8 161.2 Earnings (loss) per common share attributable to McKesson: (2) Diluted Continuing operations $ (0.04) $ (39.03) $ 4.81 $ (32.28) Discontinued operations — — (0.02) (0.01) Total $ (0.04) $ (39.03) $ 4.79 $ (32.29) Basic Continuing operations $ (0.04) $ (39.03) $ 4.87 $ (32.28) Discontinued operations — — (0.02) (0.01) Total $ (0.04) $ (39.03) $ 4.85 $ (32.29) (1) Includes dilutive effect from restricted stock units, performance-based restricted stock units, and performance-based stock units. (2) Certain computations may reflect rounding adjustments. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
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) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International (1) Total Balance, March 31, 2021 $ 3,963 $ 1,542 $ 2,453 $ 1,535 $ 9,493 Goodwill acquired — — — 5 5 Foreign currency translation adjustments, net (21) — — (15) (36) Balance, December 31, 2021 $ 3,942 $ 1,542 $ 2,453 $ 1,525 $ 9,462 (1) Remaining goodwill for this segment primarily relates to the McKesson Canada reporting unit. |
Schedule of information regarding intangible assets | Information regarding intangible assets is as follows: December 31, 2021 March 31, 2021 (Dollars in millions) Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 12 $ 2,842 $ (1,718) $ 1,124 $ 3,739 $ (2,269) $ 1,470 Service agreements 9 1,083 (558) 525 1,081 (513) 568 Pharmacy licenses — — — — 497 (244) 253 Trademarks and trade names 12 816 (371) 445 925 (394) 531 Technology 2 128 (113) 15 150 (122) 28 Other 8 192 (171) 21 254 (226) 28 Total $ 5,061 $ (2,931) $ 2,130 (1) $ 6,646 $ (3,768) $ 2,878 (1) Excludes net intangible assets of approximately $452 million related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” This amount was included under the caption “Assets held for sale” in the Condensed Consolidated Balance Sheet as of December 31, 2021. Amortization of these assets ceased upon classification as Assets held for sale in the second and third quarters of 2022. |
Debt and Financing Activities (
Debt and Financing Activities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: (In millions) December 31, 2021 March 31, 2021 U.S. Dollar notes (1) (2) 2.70% Notes due December 15, 2022 $ 400 $ 400 2.85% Notes due March 15, 2023 360 400 3.80% Notes due March 15, 2024 918 1,100 0.90% Notes due December 3, 2025 500 500 1.30% Notes due August 15, 2026 498 — 7.65% Debentures due March 1, 2027 150 167 3.95% Notes due February 16, 2028 343 600 4.75% Notes due May 30, 2029 196 400 6.00% Notes due March 1, 2041 217 282 4.88% Notes due March 15, 2044 255 411 Foreign currency notes (1) (3) 0.63% Euro Notes due August 17, 2021 — 704 1.50% Euro Notes due November 17, 2025 680 700 1.63% Euro Notes due October 30, 2026 568 587 3.13% Sterling Notes due February 17, 2029 618 627 Lease and other obligations (4) 253 270 Total debt 5,956 7,148 Less: Current portion 438 742 Total long-term debt $ 5,518 $ 6,406 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semi-annually. (3) Interest on these foreign currency notes is payable annually. (4) Excludes current and long-term debt of approximately $5 million and $12 million, respectively, as of December 31, 2021 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were included under the caption “Liabilities held for sale” in the Condensed Consolidated Balance Sheet as of December 31, 2021. |
Hedging Activities (Tables)
Hedging Activities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information regarding the fair value of derivatives on a gross basis | Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet December 31, 2021 March 31, 2021 Fair Value of U.S. Dollar Notional Fair Value of U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Cross-currency swaps (current) Prepaid expenses and other/Other accrued liabilities $ 1 $ 28 $ 570 $ 4 $ 47 $ 826 Cross-currency swaps (non-current) Other non-current assets/liabilities 66 56 2,205 72 92 2,663 Forward starting interest rate swaps (current) Other accrued liabilities — — — — 7 704 Forward starting interest rate swaps (non-current) Other non-current assets/liabilities 2 2 500 — — — Total $ 69 $ 86 $ 76 $ 146 Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ — $ — $ — $ 29 Foreign exchange contracts (current) Other accrued liabilities — — 5 — 1 10 Total $ — $ — $ — $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The Company’s long-term debt is recorded at amortized cost. The carrying value and fair value of the Company’s long-term debt was as follows: December 31, 2021 March 31, 2021 (In millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 5,956 $ 6,376 $ 7,148 $ 7,785 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Estimated Accrual Liability | The Company’s estimated accrued liability for opioid-related claims of governmental entities is as follows as of December 31, 2021: (In millions) December 31, 2021 Current litigation liabilities (1) $ 1,060 Long-term litigation liabilities 7,153 Total litigation liabilities $ 8,213 (1) This amount, recorded in “Other accrued liabilities” in the Condensed Consolidated Balance Sheet, is the amount estimated to be paid prior to December 31, 2022. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of information regarding changes in accumulated other comprehensive income (loss), net of tax, by component | Information regarding changes in the Company’s Accumulated other comprehensive income (loss), including noncontrolling interests and redeemable noncontrolling interests, by components for the three and nine months ended December 31, 2021 and 2020 are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) Other comprehensive income (loss) before reclassifications — 16 ⁽²⁾ (6) (1) 9 Amounts reclassified to income statement — — — (1) (1) Other comprehensive income (loss) — 16 (6) (2) 8 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (2) — — — (2) Other comprehensive income (loss) attributable to McKesson 2 16 (6) (2) 10 Balance at December 31, 2021 $ (1,555) $ (9) $ 15 $ (106) $ (1,655) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the three months ended December 31, 2021 include gains of $23 million related to net investment hedges from Euro-denominated notes and losses of $2 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $5 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2021 $ (1,361) $ (36) $ 13 $ (96) $ (1,480) Other comprehensive income (loss) before reclassifications (47) 21 ⁽²⁾ (3) 5 (24) Amounts reclassified to income statement 18 — 5 (3) 20 Other comprehensive income (loss) (29) 21 2 2 (4) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 7 (6) — — 1 Other comprehensive income (loss) attributable to McKesson (36) 27 2 2 (5) Exercise of put right by noncontrolling shareholders of McKesson Europe AG (158) — — (12) (170) Balance at December 31, 2021 $ (1,555) $ (9) $ 15 $ (106) $ (1,655) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the nine months ended December 31, 2021 include gains of $34 million related to net investment hedges from Euro-denominated notes and gains of $3 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $10 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at September 30, 2020 $ (1,512) $ 6 $ 25 $ (116) $ (1,597) Other comprehensive income (loss) before reclassifications 156 (96) ⁽²⁾ (12) 2 50 Amounts reclassified to income statement 47 — — 22 69 Other comprehensive income (loss) 203 (96) (12) 24 119 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 20 — — 5 25 Other comprehensive income (loss) attributable to McKesson 183 (96) (12) 19 94 Balance at December 31, 2020 $ (1,329) $ (90) $ 13 $ (97) $ (1,503) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the three months ended December 31, 2020 include losses of $84 million related to net investment hedges from Euro-denominated notes and losses of $45 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax benefit of $33 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains (Losses) on Cash Flow Hedges, Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2020 $ (1,780) $ 138 $ 49 $ (110) $ (1,703) Other comprehensive income (loss) before reclassifications 363 (229) ⁽²⁾ (36) (8) 90 Amounts reclassified to income statement 47 — — 24 71 Other comprehensive income (loss) 410 (229) (36) 16 161 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (41) (1) — 3 (39) Other comprehensive income (loss) attributable to McKesson 451 (228) (36) 13 200 Balance at December 31, 2020 $ (1,329) $ (90) $ 13 $ (97) $ (1,503) (1) Primarily result from the conversion of non-U.S. dollar financial statements of the Company’s operations in Europe and Canada into the Company’s reporting currency, U.S. dollars. (2) Amounts recorded in the nine months ended December 31, 2020 include losses of $201 million related to net investment hedges from Euro-denominated notes and losses of $108 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax benefit of $80 million. |
Segments of Business (Tables)
Segments of Business (Tables) | 9 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial information relating to reportable operating segments and reconciliations to the condensed consolidated totals | Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals is as follows: Three Months Ended December 31, Nine Months Ended December 31, (In millions) 2021 2020 2021 2020 Segment revenues (1) U.S. Pharmaceutical $ 55,041 $ 49,495 $ 158,471 $ 142,232 Prescription Technology Solutions 1,031 777 2,844 2,101 Medical-Surgical Solutions 3,082 3,054 8,734 7,388 International 9,460 9,273 27,815 27,365 Total revenues $ 68,614 $ 62,599 $ 197,864 $ 179,086 Segment operating profit (loss) (2) U.S. Pharmaceutical (3) $ 744 $ 635 $ 2,186 $ 1,871 Prescription Technology Solutions 129 114 361 270 Medical-Surgical Solutions (4) 308 260 679 536 International (5) (668) (71) (761) (113) Subtotal 513 938 2,465 2,564 Corporate expenses, net (6) (195) (8,246) (858) (8,462) Loss on debt extinguishment (7) — — (191) — Interest expense (41) (55) (135) (165) Income (loss) from continuing operations before income taxes $ 277 $ (7,363) $ 1,281 $ (6,063) (1) Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 40% of the RxTS segment’s total revenues, less than 4% of the Medical-Surgical Solutions segment’s total revenues, and less than 8% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are domestic. (2) Segment operating profit (loss) includes gross profit, net of total operating expenses, as well as other income, net, for the Company’s reportable segments. (3) The Company’s U.S. Pharmaceutical segment’s operating profit for the three and nine months ended December 31, 2021 includes $33 million and $79 million, respectively, and for the three and nine months ended December 31, 2020 includes $11 million and $115 million, respectively, of credits related to the last-in, first-out (“LIFO”) method of accounting for inventories. The nine months ended December 31, 2021 includes $46 million of cash receipts for the Company’s share of antitrust legal settlements. The nine months ended December 31, 2020 includes a charge of $50 million recorded in connection with the Company’s estimated liability under the State of New York’s Opioid Stewardship Act. (4) The Company’s Medical-Surgical Solutions segment’s operating profit for the nine months ended December 31, 2021 includes $164 million, and for the three and nine months ended December 31, 2020 includes $35 million and $49 million, respectively, of inventory charges on certain personal protective equipment and other related products. (5) The Company’s International segment’s operating loss for the three and nine months ended December 31, 2021 includes charges of $787 million to remeasure assets and liabilities of the U.K. disposal group to the lower of carrying value or fair value less costs to sell, as discussed in more detail in Financial Note 2, “Held for Sale.” The three and nine months ended December 31, 2021 includes charges of $58 million and $400 million to remeasure assets and liabilities of the E.U. disposal group to the lower of carrying value or fair value less costs to sell and to impair certain assets, including internal-use software that will not be utilized in the future, as discussed in more detail in Financial Note 2, “Held for Sale.” The nine months ended December 31, 2021 also includes a gain of $59 million related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. Operating loss for the three and nine months ended December 31, 2020 includes restructuring, impairment, and related charges of $131 million and $189 million, respectively, driven largely by long-lived asset impairment charges of $115 million primarily related to retail pharmacy businesses in Canada and Europe as well as costs associated with the closure of retail pharmacy stores within the U.K. business, as discussed in more detail in Financial Note 3, “Restructuring, Impairment, and Related Charges,” and a second quarter goodwill impairment charge of $69 million related to one of the Company’s reporting units in Europe, as discussed in more detail in Financial Note 7, “Goodwill and Intangible Assets, Net.” The three and nine months ended December 31, 2020 also includes charges of $47 million and $57 million, respectively, to remeasure to the lower of carrying value or fair value less costs to sell the assets and liabilities of the Company’s German pharmaceutical wholesale business which was contributed to a joint venture. (6) Corporate expenses, net for the three and nine months ended December 31, 2021 includes credits of $32 million and charges of $117 million primarily related to the effect of accumulated other comprehensive loss components from the E.U. disposal group, as discussed in more detail in Financial Note 2, “Held for Sale.” Corporate expenses, net for the nine months ended December 31, 2021 also includes charges of $193 million related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” The three and nine months ended December 31, 2021 includes $33 million and $104 million, respectively, and the three and nine months ended December 31, 2020 includes $34 million and $118 million, respectively, of opioid-related costs, primarily litigation expenses. Corporate expenses, net for the three and nine months ended December 31, 2020 includes a charge of $8.1 billion related to the estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12 , “Commitments and Contingent Liabilities.” The nine months ended December 31, 2020 also includes a net gain of $131 million recorded in connection with insurance proceeds received during the first quarter of 2021 from the settlement of the shareholder derivative action related to the Company’s controlled substances monitoring program. Corporate expenses, net, for the nine months ended December 31, 2021 includes $104 million and for the three and nine months ended December 31, 2020 includes $30 million and $89 million, respectively, of net gains associated with certain of the Company’s equity investments. (7) Loss on debt extinguishment for the nine months ended December 31, 2021 consists of a charge of $191 million on debt extinguishment related to the Company’s July 2021 tender offer to redeem a portion of its existing debt, as discussed in more detail in Financial Note 8, “Debt and Financing Activities.” |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) | 9 Months Ended |
Dec. 31, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Held for Sale - Narrative (Deta
Held for Sale - Narrative (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 20, 2021USD ($) | Dec. 20, 2021EUR (€) | Nov. 01, 2021USD ($) | Nov. 01, 2021GBP (£) | Jul. 05, 2021USD ($) | Jul. 05, 2021EUR (€) | Mar. 31, 2021USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | $ 5,534 | $ 5,534 | $ 12 | ||||||||
Liabilities held for sale | 4,833 | 4,833 | 9 | ||||||||
Charge for remeasurement to fair value | 1,271 | $ 0 | |||||||||
Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 5,500 | 5,500 | 12 | ||||||||
Liabilities held for sale | 4,800 | 4,800 | $ 9 | ||||||||
European Businesses (Disposal Group) | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Charge for remeasurement to fair value | 517 | ||||||||||
European Businesses (Disposal Group) | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Charge for remeasurement to fair value | 879 | 1,400 | |||||||||
Austrian Business Operations | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Charge for remeasurement to fair value | 30 | 30 | |||||||||
Gross purchase price | $ 257 | € 226 | |||||||||
Net assets held for sale | 290 | 290 | |||||||||
U.K. Disposal Group (Disposal Group) | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 1,900 | 1,900 | |||||||||
Liabilities held for sale | 2,300 | 2,300 | |||||||||
Charge for remeasurement to fair value | 823 | 823 | |||||||||
Gross purchase price | $ 440 | £ 325 | |||||||||
Accumulated other comprehensive loss in charge for remeasurement to fair value | 731 | 731 | |||||||||
German Pharmaceutical Wholesale Business | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Charge for remeasurement to fair value | $ 47 | $ 57 | |||||||||
E.U. Businesses (Disposal Group) | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 3,100 | 3,100 | |||||||||
Liabilities held for sale | 2,300 | 2,300 | |||||||||
Charge for remeasurement to fair value | 26 | 517 | |||||||||
Gross purchase price | $ 1,400 | € 1,200 | |||||||||
Accumulated other comprehensive loss in charge for remeasurement to fair value | $ 230 | $ 230 |
Held for Sale - Assets and Liab
Held for Sale - Assets and Liabilities Held for Sale (Details) - Held-for-sale $ in Millions | 9 Months Ended |
Dec. 31, 2021USD ($) | |
European Businesses (Disposal Group) | |
Liabilities | |
Current portion of long-term debt | $ 5 |
Long-term debt | 12 |
U.K. Disposal Group (Disposal Group) | |
Assets | |
Cash and cash equivalents | 206 |
Receivables, net | 1,212 |
Inventories, net | 698 |
Prepaid expenses and other | 76 |
Property, plant, and equipment, net | 91 |
Operating lease right-of-use assets | 259 |
Intangible assets, net | 120 |
Other non-current assets | 78 |
Remeasurement of assets of business held for sale to fair value less costs to sell | (822) |
Assets held for sale | 1,918 |
Liabilities | |
Drafts and accounts payable | 1,756 |
Current portion of operating lease liabilities | 51 |
Other accrued liabilities | 141 |
Long-term operating lease liabilities | 269 |
Other non-current liabilities | 57 |
Liabilities held for sale | 2,274 |
E.U. Businesses (Disposal Group) | |
Assets | |
Receivables, net | 1,346 |
Inventories, net | 913 |
Prepaid expenses and other | 75 |
Property, plant, and equipment, net | 296 |
Operating lease right-of-use assets | 221 |
Intangible assets, net | 274 |
Other non-current assets | 348 |
Remeasurement of assets of business held for sale to fair value less costs to sell | (387) |
Assets held for sale | 3,086 |
Liabilities | |
Drafts and accounts payable | 1,433 |
Current portion of long-term debt | 5 |
Current portion of operating lease liabilities | 32 |
Other accrued liabilities | 440 |
Long-term debt | 12 |
Long-term deferred tax liabilities | 47 |
Long-term operating lease liabilities | 187 |
Other non-current liabilities | 165 |
Liabilities held for sale | 2,321 |
Internally developed software | |
Liabilities | |
Impairment charge | $ 113 |
Restructuring, Impairment, an_3
Restructuring, Impairment, and Related Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment, and related charges recognized | $ 18 | $ 155 | $ 208 | $ 271 |
Restructuring, impairment, and related charges | 18 | 40 | 208 | 156 |
International (1) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment, Long-Lived Asset, Held-for-Use | 115 | 115 | ||
Restructuring, impairment, and related charges | 131 | 189 | ||
Restructuring Plan - Remote Work Transitioning | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment, and related charges | 5 | 115 | ||
Restructuring Plan - Remote Work Transitioning | Minimum | Restructuring Type, Exit Related Costs, Accelerated Depreciation, Amortization and Asset Impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges | 140 | 140 | ||
Restructuring Plan - Remote Work Transitioning | Maximum | Restructuring Type, Exit Related Costs, Accelerated Depreciation, Amortization and Asset Impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total pre-tax charges | $ 180 | $ 180 | ||
Operating Model and Cost Optimization Programs | International (1) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment, and related charges | $ 9 | $ 50 |
Restructuring, Impairment, an_4
Restructuring, Impairment, and Related Charges - Summary of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | $ 1 | $ 9 | $ 14 | $ 63 |
Exit and other-related costs | 16 | 15 | 66 | 43 |
Asset impairments and accelerated depreciation | 1 | 16 | 128 | 50 |
Total | 18 | 40 | 208 | 156 |
International (1) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 131 | 189 | ||
Operating Segments | U.S. Pharmaceutical | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | 3 | 2 | 10 |
Exit and other-related costs | 3 | 3 | 7 | 8 |
Asset impairments and accelerated depreciation | 0 | 0 | 16 | 0 |
Total | 3 | 6 | 25 | 18 |
Operating Segments | Prescription Technology Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | 0 | (1) | 0 |
Exit and other-related costs | 0 | 0 | 2 | 0 |
Asset impairments and accelerated depreciation | 0 | 0 | 17 | 0 |
Total | 0 | 0 | 18 | 0 |
Operating Segments | Medical-Surgical Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | (3) | 1 | 0 |
Exit and other-related costs | 1 | 1 | 3 | 3 |
Asset impairments and accelerated depreciation | 0 | 0 | 5 | 1 |
Total | 1 | (2) | 9 | 4 |
Operating Segments | International (1) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | 2 | 10 | 22 |
Exit and other-related costs | 6 | 5 | 21 | 12 |
Asset impairments and accelerated depreciation | (1) | 9 | 35 | 40 |
Total | 5 | 16 | 66 | 74 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 1 | 7 | 2 | 31 |
Exit and other-related costs | 6 | 6 | 33 | 20 |
Asset impairments and accelerated depreciation | 2 | 7 | 55 | 9 |
Total | $ 9 | $ 20 | $ 90 | $ 60 |
Restructuring, Impairment, an_5
Restructuring, Impairment, and Related Charges - Summary of Restructuring Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 151 | |||
Restructuring, impairment, and related charges | $ 18 | $ 40 | 208 | $ 156 |
Non-cash charges | (128) | |||
Cash payments | (69) | |||
Other | (18) | |||
Ending balance | 144 | 144 | ||
International (1) | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring, impairment, and related charges | 131 | 189 | ||
Operating Segments | U.S. Pharmaceutical | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 19 | |||
Restructuring, impairment, and related charges | 3 | 6 | 25 | 18 |
Non-cash charges | (16) | |||
Cash payments | (15) | |||
Other | 0 | |||
Ending balance | 13 | 13 | ||
Operating Segments | Prescription Technology Solutions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 4 | |||
Restructuring, impairment, and related charges | 0 | 0 | 18 | 0 |
Non-cash charges | (17) | |||
Cash payments | (1) | |||
Other | 0 | |||
Ending balance | 4 | 4 | ||
Operating Segments | Medical-Surgical Solutions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3 | |||
Restructuring, impairment, and related charges | 1 | (2) | 9 | 4 |
Non-cash charges | (5) | |||
Cash payments | (5) | |||
Other | 0 | |||
Ending balance | 2 | 2 | ||
Operating Segments | International (1) | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 66 | |||
Restructuring, impairment, and related charges | 5 | 16 | 66 | 74 |
Non-cash charges | (35) | |||
Cash payments | (22) | |||
Other | (11) | |||
Ending balance | 64 | 64 | ||
Corporate | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 59 | |||
Restructuring, impairment, and related charges | 9 | $ 20 | 90 | $ 60 |
Non-cash charges | (55) | |||
Cash payments | (26) | |||
Other | (7) | |||
Ending balance | 61 | 61 | ||
Other accrued liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 99 | |||
Ending balance | 52 | 52 | ||
Liabilities held for sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Ending balance | 44 | 44 | ||
Other accrued liabilities, noncurrent | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 52 | |||
Ending balance | $ 48 | $ 48 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) related to continuing operations | $ 238 | $ (1,189) | $ 396 | $ (1,011) | |
Reported income tax expense (benefit) rates (percent) | 85.90% | 16.10% | 30.90% | 16.70% | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Charge for remeasurement to fair value | $ 1,271 | $ 0 | |||
Discrete tax benefit recognized due to GILTI | $ 42 | ||||
Discrete tax benefit recognized due to temporary difference arising from buyer's excess tax basis | 105 | ||||
Unrecognized tax benefits | 1,600 | 1,600 | |||
Unrecognized tax benefits that would reduce income tax expense and the effective tax rate | 1,300 | 1,300 | |||
Discrete tax benefit recognized due to statute of limitation expirations | 115 | ||||
National Prescription Opioid Litigation | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Pre-tax expenses related to estimated litigation liability | 193 | $ 8,100 | |||
After-tax expenses related to estimated litigation liability | 160 | $ 6,700 | $ 6,800 | ||
European Businesses (Disposal Group) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Charge for remeasurement to fair value | 517 | ||||
European Businesses (Disposal Group) | Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Charge for remeasurement to fair value | 879 | 1,400 | |||
U.K. and Austrian Businesses (Disposal Group) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Charge for remeasurement to fair value | $ 853 | $ 853 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Noncontrolling Interests - Narrative (Details) shares in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Dec. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Sep. 30, 2021USD ($) | Apr. 12, 2021€ / shares | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 19, 2018€ / shares | Dec. 31, 2014€ / shares | |
Noncontrolling Interest [Line Items] | ||||||||||||
Put right redemption price per share (in euros per share) | € / shares | € 22.99 | € 23.50 | € 22.99 | |||||||||
Put right value, interest rate spread (as a percent) | 5.00% | |||||||||||
Increase in put amount (in Euros per share) | € / shares | € 0.51 | |||||||||||
Payments for purchase shares of McKesson Europe | $ 1,031,000,000 | $ 49,000,000 | ||||||||||
Associated increase in Company's ownership interest on its equity | 8,000,000 | 3,000,000 | ||||||||||
Reclassification of McKesson Europe redeemable noncontrolling interests | (287,000,000) | |||||||||||
Carrying value of redeemable noncontrolling interests | $ 0 | 0 | $ 1,271,000,000 | |||||||||
Net income attributable to noncontrolling interests | 46,000,000 | $ 52,000,000 | 136,000,000 | 152,000,000 | ||||||||
Redeemable Noncontrolling Interests | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Net income attributable to noncontrolling interests | 0 | 11,000,000 | 8,000,000 | 32,000,000 | ||||||||
Decrease in noncontrolling interest | 983,000,000 | 49,000,000 | ||||||||||
Reclassification of McKesson Europe redeemable noncontrolling interests | 287,000,000 | |||||||||||
Carrying value of redeemable noncontrolling interests | 0 | 1,292,000,000 | 0 | 1,292,000,000 | $ 0 | 1,271,000,000 | $ 1,265,000,000 | $ 1,402,000,000 | ||||
Additional Paid-in Capital | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Associated increase in Company's ownership interest on its equity | 178,000,000 | 3,000,000 | ||||||||||
Noncontrolling Interests | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Reclassification of McKesson Europe redeemable noncontrolling interests | (287,000,000) | |||||||||||
Net income attributable to noncontrolling interests | $ 46,000,000 | 41,000,000 | 128,000,000 | 120,000,000 | ||||||||
McKesson Europe Subsidiary | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Annual recurring dividend (in euro per share) | € / shares | € 0.83 | € 0.83 | ||||||||||
McKesson Europe Subsidiary | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Net income attributable to noncontrolling interests | $ 8,000,000 | 11,000,000 | 32,000,000 | |||||||||
Payments for purchase shares of McKesson Europe | $ 1,000,000,000 | $ 49,000,000 | ||||||||||
Shares purchased (in shares) | shares | 34.5 | 1.8 | ||||||||||
Carrying value of redeemable noncontrolling interests | 1,300,000,000 | |||||||||||
Maximum redemption value of redeemable noncontrolling interest | $ 1,200,000,000 | |||||||||||
Ownership percentage (as a percent) | 95.00% | 95.00% | 78.00% | |||||||||
Vantage and ClarusOne Sourcing Services LLC | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Net income attributable to noncontrolling interests | $ 46,000,000 | $ 41,000,000 | $ 128,000,000 | $ 120,000,000 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests and Noncontrolling Interests - Schedule of Changes in Redeemable Noncontrolling Interests and Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Noncontrolling Interests | ||||
Beginning balance | $ 196 | |||
Net income attributable to noncontrolling interests | $ 46 | $ 52 | 136 | $ 152 |
Other comprehensive income (loss) | 25 | (39) | ||
Payments to noncontrolling interests | (38) | (41) | (117) | (134) |
Ending balance | 487 | 487 | ||
Redeemable Noncontrolling Interests | ||||
Beginning balance | 1,271 | |||
Other comprehensive income (loss) | 25 | (39) | ||
Payments to noncontrolling interests | (38) | (41) | (117) | (134) |
Reclassification of McKesson Europe redeemable noncontrolling interests | 287 | |||
Ending balance | 0 | 0 | ||
Noncontrolling Interests | ||||
Noncontrolling Interests | ||||
Beginning balance | 484 | 200 | 196 | 217 |
Net income attributable to noncontrolling interests | 46 | 41 | 128 | 120 |
Other comprehensive income (loss) | (2) | 0 | (2) | 0 |
Payments to noncontrolling interests | (38) | (41) | (117) | (134) |
Other | 0 | 0 | (3) | |
Ending balance | 487 | 200 | 487 | 200 |
Redeemable Noncontrolling Interests | ||||
Other comprehensive income (loss) | (2) | 0 | (2) | 0 |
Reclassification of recurring compensation to other accrued liabilities | (3) | (5) | ||
Payments to noncontrolling interests | (38) | (41) | (117) | (134) |
Reclassification of McKesson Europe redeemable noncontrolling interests | 287 | |||
Other | 0 | 0 | (3) | |
Redeemable Noncontrolling Interests | ||||
Noncontrolling Interests | ||||
Other comprehensive income (loss) | 0 | 25 | 3 | (65) |
Payments to noncontrolling interests | 0 | 0 | 0 | 0 |
Other | 2 | (4) | 4 | |
Redeemable Noncontrolling Interests | ||||
Beginning balance | 0 | 1,265 | 1,271 | 1,402 |
Net income attributable to noncontrolling interests | 0 | 11 | 8 | 32 |
Other comprehensive income (loss) | 0 | 25 | 3 | (65) |
Reclassification of recurring compensation to other accrued liabilities | 0 | (11) | (8) | (32) |
Payments to noncontrolling interests | 0 | 0 | 0 | 0 |
Exercises of Put Right | (983) | (49) | ||
Reclassification of McKesson Europe redeemable noncontrolling interests | (287) | |||
Other | 2 | (4) | 4 | |
Ending balance | $ 0 | $ 1,292 | $ 0 | $ 1,292 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Income (loss) from continuing operations | $ 39 | $ (6,174) | $ 885 | $ (5,052) |
Net income attributable to noncontrolling interests | 46 | 52 | 136 | 152 |
Income (loss) from continuing operations attributable to McKesson Corporation | (7) | (6,226) | 749 | (5,204) |
Loss from discontinued operations, net of tax | 0 | 0 | (3) | (1) |
Net income (loss) attributable to McKesson Corporation | $ (7) | $ (6,226) | $ 746 | $ (5,205) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 151.6 | 159.5 | 154 | 161.2 |
Effect of dilutive securities: | ||||
Diluted (in shares) | 151.6 | 159.5 | 155.8 | 161.2 |
Diluted | ||||
Continuing operations (in usd per share) | $ (0.04) | $ (39.03) | $ 4.81 | $ (32.28) |
Discontinued operations (in usd per share) | 0 | 0 | (0.02) | (0.01) |
Total (in dollars per share) | (0.04) | (39.03) | 4.79 | (32.29) |
Basic | ||||
Continuing operations (in usd per share) | (0.04) | (39.03) | 4.87 | (32.28) |
Discontinued operations (in usd per share) | 0 | 0 | (0.02) | (0.01) |
Total (in dollars per share) | $ (0.04) | $ (39.03) | $ 4.85 | $ (32.29) |
Potentially dilutive securities (shares) | 1 | |||
Stock options | ||||
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 0 | 0 | 0.2 | 0 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 0 | 0 | 1.6 | 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Narrative - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 | $ 69 |
Amortization expense of intangible assets | 80 | $ 108 | 262 | 320 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||
Estimated annual amortization expense, remainder of 2022 | 70 | 70 | ||
Estimated annual amortization expense, 2023 | 226 | 226 | ||
Estimated annual amortization expense, 2024 | 215 | 215 | ||
Estimated annual amortization expense, 2025 | 209 | 209 | ||
Estimated annual amortization expense, 2026 | 177 | 177 | ||
Estimated annual amortization expense, thereafter | $ 1,200 | $ 1,200 | ||
International (1) | Retail Pharmacy Reporting Unit | ||||
Goodwill [Line Items] | ||||
Goodwill impairment charge | $ 69 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,493 |
Goodwill acquired | 5 |
Foreign currency translation adjustments, net | (36) |
Ending balance | 9,462 |
U.S. Pharmaceutical | |
Goodwill [Roll Forward] | |
Beginning balance | 3,963 |
Goodwill acquired | 0 |
Foreign currency translation adjustments, net | (21) |
Ending balance | 3,942 |
Prescription Technology Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 1,542 |
Goodwill acquired | 0 |
Foreign currency translation adjustments, net | 0 |
Ending balance | 1,542 |
Medical-Surgical Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 2,453 |
Goodwill acquired | 0 |
Foreign currency translation adjustments, net | 0 |
Ending balance | 2,453 |
International (1) | |
Goodwill [Roll Forward] | |
Beginning balance | 1,535 |
Goodwill acquired | 5 |
Foreign currency translation adjustments, net | (15) |
Ending balance | $ 1,525 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2021 | Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,061 | $ 6,646 |
Accumulated Amortization | (2,931) | (3,768) |
Net Carrying Amount | 2,130 | 2,878 |
European Assets Held for Sale | Held-for-sale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, net | $ 452 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 2,842 | 3,739 |
Accumulated Amortization | (1,718) | (2,269) |
Net Carrying Amount | $ 1,124 | 1,470 |
Service agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 9 years | |
Gross Carrying Amount | $ 1,083 | 1,081 |
Accumulated Amortization | (558) | (513) |
Net Carrying Amount | 525 | 568 |
Pharmacy licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0 | 497 |
Accumulated Amortization | 0 | (244) |
Net Carrying Amount | $ 0 | 253 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 816 | 925 |
Accumulated Amortization | (371) | (394) |
Net Carrying Amount | $ 445 | 531 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 2 years | |
Gross Carrying Amount | $ 128 | 150 |
Accumulated Amortization | (113) | (122) |
Net Carrying Amount | $ 15 | 28 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 8 years | |
Gross Carrying Amount | $ 192 | 254 |
Accumulated Amortization | (171) | (226) |
Net Carrying Amount | $ 21 | $ 28 |
Debt and Financing Activities -
Debt and Financing Activities - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Aug. 12, 2021 | Jul. 23, 2021 | Jul. 17, 2021 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||||
Lease and other obligation | $ 253 | $ 270 | |||
Total debt | 5,956 | 7,148 | |||
Less: Current portion | 438 | 742 | |||
Total long-term debt | $ 5,518 | 6,406 | |||
2.70% Notes due December 15, 2022 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 2.70% | ||||
Debt outstanding | $ 400 | 400 | |||
2.85% Notes due March 15, 2023 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 2.85% | 2.85% | |||
Debt outstanding | $ 360 | 400 | |||
3.80% Notes due March 15, 2024 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 3.80% | 3.80% | |||
Debt outstanding | $ 918 | 1,100 | |||
0.90% Notes due December 3, 2025 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 0.90% | ||||
Debt outstanding | $ 500 | 500 | |||
1.30% Notes due August 15, 2026 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 1.30% | 1.30% | |||
Debt outstanding | $ 498 | 0 | |||
7.65% Debentures due March 1, 2027 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 7.65% | 7.65% | |||
Debt outstanding | $ 150 | 167 | |||
3.95% Notes due February 16, 2028 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 3.95% | 3.95% | |||
Debt outstanding | $ 343 | 600 | |||
4.75% Notes due May 30, 2029 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 4.75% | 4.75% | |||
Debt outstanding | $ 196 | 400 | |||
6.00% Notes due March 1, 2041 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 6.00% | 6.00% | |||
Debt outstanding | $ 217 | 282 | |||
4.88% Notes due March 15, 2044 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 4.88% | 4.88% | |||
Debt outstanding | $ 255 | 411 | |||
0.63% Euro Notes due August 17, 2021 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 0.63% | 0.63% | |||
Debt outstanding | $ 0 | 704 | |||
1.50% Euro Notes due November 17, 2025 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 1.50% | ||||
Debt outstanding | $ 680 | 700 | |||
1.63% Euro Notes due October 30, 2026 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 1.63% | ||||
Debt outstanding | $ 568 | 587 | |||
3.13% Sterling Notes due February 17, 2029 | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument (percent) | 3.13% | ||||
Debt outstanding | $ 618 | $ 627 |
Debt and Financing Activities_2
Debt and Financing Activities - Long-Term Debt Narrative (Details) € in Millions | Aug. 12, 2021USD ($) | Jul. 23, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 17, 2021USD ($) | Jul. 17, 2021EUR (€) | Mar. 31, 2021USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 5,956,000,000 | $ 5,956,000,000 | $ 7,148,000,000 | ||||||
Long-term Debt and Lease Obligation, Current | 438,000,000 | 438,000,000 | $ 742,000,000 | ||||||
Payments for debt extinguishments | 184,000,000 | $ 0 | |||||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 191,000,000 | 0 | |||||
1.30% Notes due August 15, 2026 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 1.30% | 1.30% | 1.30% | ||||||
Debt principal amount | $ 500,000,000 | ||||||||
Proceeds from debt issuance | $ 495,000,000 | ||||||||
Redemption price percentage of principal (percent) | 101.00% | ||||||||
0.63% Euro Notes due August 17, 2021 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 0.63% | 0.63% | 0.63% | 0.63% | |||||
Debt principal redeemed | $ 709,000,000 | € 600 | |||||||
2.85% Notes due March 15, 2023 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 2.85% | 2.85% | 2.85% | ||||||
3.80% Notes due March 15, 2024 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 3.80% | 3.80% | 3.80% | ||||||
7.65% Debentures due March 1, 2027 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 7.65% | 7.65% | 7.65% | ||||||
3.95% Notes due February 16, 2028 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 3.95% | 3.95% | 3.95% | ||||||
4.75% Notes due May 30, 2029 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 4.75% | 4.75% | 4.75% | ||||||
6.00% Notes due March 1, 2041 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 6.00% | 6.00% | 6.00% | ||||||
4.88% Notes due March 15, 2044 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate on debt instrument (percent) | 4.88% | 4.88% | 4.88% | ||||||
Tender Offer Notes | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage of principal (percent) | 100.00% | ||||||||
Debt principal redeemed | $ 922,000,000 | ||||||||
Aggregate consideration of debt redeemed | 1,100,000,000 | ||||||||
Payments for debt extinguishments | 182,000,000 | ||||||||
Accrued unpaid interest | 14,000,000 | ||||||||
Loss on debt extinguishment | 191,000,000 | ||||||||
Debt premiums | 182,000,000 | ||||||||
Write-off of unamortized debt issuance costs and transaction fees | $ 9,000,000 | ||||||||
The 2020 Credit Facility | Unsecured Debt | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings under facility | $ 0 | $ 0 | $ 0 | $ 0 |
Debt and Financing Activities_3
Debt and Financing Activities - Revolving Credit Facilities (Details) - USD ($) | Sep. 25, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 |
Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Committed balance | $ 7,000,000 | $ 7,000,000 | ||||
Uncommitted balance | 114,000,000 | 114,000,000 | ||||
Unsecured Debt | Revolving Credit Facility | The 2020 Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Syndicated senior unsecured revolving credit facility | $ 4,000,000,000 | |||||
Syndicated senior unsecured revolving credit facility term | 5 years | |||||
Borrowings under facility | 0 | $ 0 | 0 | $ 0 | ||
Amounts outstanding under facility | $ 0 | $ 0 | $ 0 | |||
Unsecured Debt | Revolving Credit Facility | Canadian Dollar, British Pound Sterling, and Euros Sublimit | ||||||
Line of Credit Facility [Line Items] | ||||||
Syndicated senior unsecured revolving credit facility | $ 3,600,000,000 |
Debt and Financing Activities_4
Debt and Financing Activities - Commercial Paper (Details) - Commercial Paper - USD ($) | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | |||
Outstanding notes (up to) | $ 4,000,000,000 | ||
Proceeds from issuance of commercial paper | 3,600,000,000 | $ 5,500,000,000 | |
Repayments of commercial paper | 3,300,000,000 | $ 5,300,000,000 | |
Commercial paper | $ 372,000,000 | $ 0 | |
Weighted average interest rate (percent) | 0.29% |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension expense | $ 2 | $ 4 | $ 4 | $ 17 |
Cash contributions to the plans | $ 18 | $ 8 | $ 35 | $ 19 |
Percentage threshold of greater of projected benefit obligation or market value of assets (percent) | 10.00% | 10.00% | ||
U.K. Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contributions to the plans | $ 17 | $ 17 | ||
Held-for-sale | European Businesses (Disposal Group) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Reclassified pension liabilities | 148 | 148 | ||
Assets held for sale | $ 52 | $ 52 |
Hedging Activities - Narrative
Hedging Activities - Narrative (Details) £ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021CAD ($) | Dec. 31, 2021GBP (£) | Nov. 04, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2021CAD ($) | Apr. 27, 2020USD ($) | Apr. 27, 2020EUR (€) | |
Derivative [Line Items] | |||||||||||||
Unrealized gains (losses) on cash flow hedges | $ (6,000,000) | $ (12,000,000) | $ 2,000,000 | $ (36,000,000) | |||||||||
Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Gain (loss) from net investment hedges recorded within other comprehensive income | 23,000,000 | (84,000,000) | 34,000,000 | (201,000,000) | |||||||||
Forward contracts to hedge Euro against British Pound cash flows | Derivatives not designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional values of financial instruments | 5,000,000 | 5,000,000 | $ 39,000,000 | ||||||||||
Net Investment Hedging | Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivatives used in net investment hedge, gains (losses) gross | (2,000,000) | (45,000,000) | 3,000,000 | (108,000,000) | |||||||||
Net Investment Hedging | November 2018 Cross Currency Swaps | Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional values of financial instruments | $ 500 | $ 500 | |||||||||||
Cash Flow Hedging | Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Unrealized gains (losses) on cash flow hedges | (8,000,000) | $ (14,000,000) | 3,000,000 | $ (42,000,000) | |||||||||
Cash Flow Hedging | Cross currency swap | Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional values of financial instruments | $ 1,800,000,000 | $ 1,800,000,000 | $ 2,600,000,000 | ||||||||||
Cash Flow Hedging | Forward starting interest rate swaps | Derivatives designated for hedge accounting | |||||||||||||
Derivative [Line Items] | |||||||||||||
Notional values of financial instruments | $ 500,000,000 | $ 500,000,000 | € 600,000,000 | ||||||||||
Euro Denominated Notes | Term Loan | Net Investment Hedging | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt outstanding | € | € 1,100,000,000 | € 1,700,000,000 | |||||||||||
British Pound Sterling Denominated Notes | Term Loan | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt outstanding | £ | £ 450 | ||||||||||||
2025 Notes | Term Loan | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt instrument term | 5 years |
Hedging Activities - Derivative
Hedging Activities - Derivative Instruments Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Derivatives designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | $ 69 | $ 76 |
Fair value of derivative, liability | 86 | 146 |
Derivatives designated for hedge accounting | Cross currency swap | Prepaid expenses and other/Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 1 | 4 |
Fair value of derivative, liability | 28 | 47 |
U.S. Dollar notional amount, asset | 570 | 826 |
Derivatives designated for hedge accounting | Cross currency swap | Other non-current assets/liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 66 | 72 |
Fair value of derivative, liability | 56 | 92 |
U.S. Dollar notional amount, asset | 2,205 | 2,663 |
Derivatives designated for hedge accounting | Forward starting interest rate swaps | Other non-current assets/liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 2 | 0 |
Fair value of derivative, liability | 2 | 0 |
U.S. Dollar, notional amount, liability | 500 | 0 |
Derivatives designated for hedge accounting | Forward starting interest rate swaps | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 0 | 0 |
Fair value of derivative, liability | 0 | 7 |
U.S. Dollar, notional amount, liability | 0 | 704 |
Derivatives not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 0 | 0 |
Fair value of derivative, liability | 0 | 1 |
Derivatives not designated for hedge accounting | Foreign Exchange Contract | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 0 | 0 |
Fair value of derivative, liability | 0 | 1 |
U.S. Dollar, notional amount, liability | 5 | 10 |
Derivatives not designated for hedge accounting | Foreign Exchange Contract | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 0 | 0 |
Fair value of derivative, liability | 0 | 0 |
U.S. Dollar notional amount, asset | $ 0 | $ 29 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities | $ 358,000,000 | $ 269,000,000 | ||
Unrealized gain (loss) on equity investments | $ 28,000,000 | 104,000,000 | $ 87,000,000 | |
National Prescription Opioid Litigation | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted cash | 354,000,000 | |||
Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities measured at fair value | 0 | 0 | ||
Fair value, inputs, level 1 | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in money market funds | $ 1,100,000,000 | $ 1,600,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Long-Term Debt is Recorded at Amortized Cost (Details) - Recurring - Fair value, inputs, level 2 - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount of liabilities | $ 5,956 | $ 7,148 |
Estimated fair values of liabilities | $ 6,376 | $ 7,785 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | Jan. 28, 2022USD ($)distributor | Jan. 25, 2022USD ($) | Jan. 24, 2022USD ($)distributor | Sep. 28, 2021USD ($)distributor | Sep. 20, 2021USD ($) | Jul. 21, 2021USD ($)distributor | Jul. 20, 2021USD ($)distributor | Apr. 16, 2013staterelatordefendant | Dec. 31, 2021USD ($)casestatestateAttorney | Dec. 31, 2020USD ($) | Mar. 31, 2021USD ($) | Jan. 26, 2022territorystate | Sep. 04, 2021state | Dec. 30, 2017investmentFund | Dec. 29, 2017investmentFund |
National Prescription Opioid Litigation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Pre-tax expenses related to estimated litigation liability | $ 193 | $ 8,100 | |||||||||||||
After-tax expenses related to estimated litigation liability | 160 | $ 6,700 | $ 6,800 | ||||||||||||
Total litigation liabilities | $ 8,213 | ||||||||||||||
National Prescription Opioid Litigation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 2,800 | ||||||||||||||
Number of states in which court cases are pending | state | 42 | ||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Number of distributors | distributor | 3 | ||||||||||||||
Award payable under proposed framework | $ 7,900 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
Portion of settlement award to be used by state and local government for remediation (percent) | 85.00% | ||||||||||||||
Number of eligible states | state | 49 | ||||||||||||||
Settlement payment | $ 354 | ||||||||||||||
National Prescription Opioid Litigation | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of states in which court cases are pending | state | 46 | ||||||||||||||
Number of eligible states | state | 49 | ||||||||||||||
Number of territories that have joined the proposed settlement agreement | territory | 5 | ||||||||||||||
Settlement payment | $ 19 | ||||||||||||||
National Prescription Opioid Litigation | State of New York | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 450 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
National Prescription Opioid Litigation | State of Ohio | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 336 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
National Prescription Opioid Litigation | Cherokee Nation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 29 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
Payment term | 6 years 6 months | ||||||||||||||
National Prescription Opioid Litigation | State of Rhode Island | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 35 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
National Prescription Opioid Litigation | State of Florida | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 530 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
National Prescription Opioid Litigation | Native American Tribes Other Than Cherokee Nation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||||
Award payable under proposed framework | $ 167 | ||||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||||
Payment term | 6 years | ||||||||||||||
Polygon European Equity Opportunity Master Fund et al. v. McKesson Europe Holdings GmbH & Co. KGaA | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Number of investment funds that filed claims | investmentFund | 4 | 2 | |||||||||||||
United States ex rel. Piacentile v. Amgen Inc., et al. | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Loss Contingency Number of Relators | relator | 2 | ||||||||||||||
Loss Contingency, Number of Additional Defendants | defendant | 5 | ||||||||||||||
Loss Contingency, Number of States Filed on Behalf Of | state | 21 | ||||||||||||||
Canada | National Prescription Opioid Litigation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 4 | ||||||||||||||
Canada | National Prescription Opioid Litigation | Governmental entities | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 3 | ||||||||||||||
Canada | National Prescription Opioid Litigation | An individual | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 1 | ||||||||||||||
Three Largest U.S. Pharmaceutical Distributors | National Prescription Opioid Litigation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 21,000 | ||||||||||||||
Period over which award would be payable under proposed framework | 18 years | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | State of New York | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 1,200 | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | State of Ohio | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 881 | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | Cherokee Nation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | 75 | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | State of Rhode Island | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 91 | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | State of Florida | Subsequent Event | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 1,400 | ||||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | Native American Tribes Other Than Cherokee Nation | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Award payable under proposed framework | $ 440 | ||||||||||||||
Pending | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 350 | ||||||||||||||
Number of states in which court cases are pending | state | 40 | ||||||||||||||
Number of attorney generals that have filed claims | stateAttorney | 23 | ||||||||||||||
Pending | Canada | |||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Complaints filed against the entity | case | 4 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Estimated Accrual Liability (Details) - National Prescription Opioid Litigation $ in Millions | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Current litigation liabilities | $ 1,060 |
Long-term litigation liabilities | 7,153 |
Total litigation liabilities | $ 8,213 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Narrative (Details) | Jul. 23, 2021$ / shares | Jul. 22, 2021$ / shares | Aug. 31, 2021shares | May 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)vote$ / sharesshares | Sep. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021shares | Dec. 31, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2020shares | Dec. 31, 2021USD ($)vote$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 08, 2021USD ($) | Mar. 31, 2021USD ($) |
Accelerated Share Repurchases [Line Items] | ||||||||||||||
Number of votes per share of common stock permitted on proposals presented to stockholders (vote) | vote | 1 | 1 | ||||||||||||
Dividends declared per common share (in dollars per share) | $ / shares | $ 0.47 | $ 0.42 | $ 0.47 | $ 0.42 | $ 1.36 | $ 1.25 | ||||||||
Shares repurchased | $ 728,000,000 | $ 231,000,000 | $ 2,008,000,000 | $ 500,000,000 | ||||||||||
Authorized repurchase amount (up to) | $ 4,000,000,000 | |||||||||||||
Authorized amount available for future repurchases | 4,800,000,000 | 4,800,000,000 | ||||||||||||
Other accrued liabilities | $ 4,332,000,000 | 4,332,000,000 | $ 3,987,000,000 | |||||||||||
Accelerated Share Repurchase | ||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||
Shares repurchased | $ 1,000,000,000 | |||||||||||||
Share repurchases (in shares) | shares | 5,200,000 | |||||||||||||
Average price of shares repurchased (in usd per share) | $ / shares | $ 193.22 | |||||||||||||
Common stock repurchased (in shares) | shares | 900,000 | 4,300,000 | 0 | |||||||||||
Open Market Share Repurchase Transactions | ||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||
Average price of shares repurchased (in usd per share) | $ / shares | $ 223.89 | $ 203.20 | $ 151.12 | $ 151.23 | ||||||||||
Common stock repurchased (in shares) | shares | 3,300,000 | 1,400,000 | 0 | 1,500,000 | 1,800,000 | |||||||||
Shares repurchased | $ 728,000,000 | $ 280,000,000 | $ 231,000,000 | $ 269,000,000 | ||||||||||
Other accrued liabilities | $ 30,000,000 | $ 30,000,000 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (87) | $ 6,090 | $ 175 | $ 5,309 |
Other comprehensive income (loss) before reclassifications | 50 | 90 | ||
Amounts reclassified to income statement | 69 | 71 | ||
Other comprehensive income (loss), net of tax | 8 | 119 | (4) | 161 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 25 | (39) | ||
Other comprehensive income (loss) attributable to McKesson | 8 | 94 | (7) | 200 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 8 | 3 | ||
Ending balance | (787) | (277) | (787) | (277) |
Total Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,665) | (1,597) | (1,480) | (1,703) |
Other comprehensive income (loss) before reclassifications | 9 | (24) | ||
Amounts reclassified to income statement | (1) | 20 | ||
Other comprehensive income (loss), net of tax | 8 | (4) | ||
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (2) | 1 | ||
Other comprehensive income (loss) attributable to McKesson | 10 | 94 | (5) | 200 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (170) | |||
Ending balance | (1,655) | (1,503) | (1,655) | (1,503) |
Foreign Currency Translation Adjustments, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,557) | (1,512) | (1,361) | (1,780) |
Other comprehensive income (loss) before reclassifications | 0 | 156 | (47) | 363 |
Amounts reclassified to income statement | 0 | 47 | 18 | 47 |
Other comprehensive income (loss), net of tax | 0 | 203 | (29) | 410 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (2) | 20 | 7 | (41) |
Other comprehensive income (loss) attributable to McKesson | 2 | 183 | (36) | 451 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (158) | |||
Ending balance | (1,555) | (1,329) | (1,555) | (1,329) |
Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (25) | 6 | (36) | 138 |
Other comprehensive income (loss) before reclassifications | 16 | (96) | 21 | (229) |
Amounts reclassified to income statement | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 16 | (96) | 21 | (229) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | (6) | (1) |
Other comprehensive income (loss) attributable to McKesson | 16 | (96) | 27 | (228) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 0 | |||
Ending balance | (9) | (90) | (9) | (90) |
Other comprehensive income (loss) before reclassifications, tax | (5) | 33 | (10) | 80 |
Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax | Foreign Exchange Contract | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | 23 | (84) | 34 | (201) |
Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax | Cross Currency Contract | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications | (2) | (45) | 3 | (108) |
Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 21 | 25 | 13 | 49 |
Other comprehensive income (loss) before reclassifications | (6) | (12) | (3) | (36) |
Amounts reclassified to income statement | 0 | 0 | 5 | 0 |
Other comprehensive income (loss), net of tax | (6) | (12) | 2 | (36) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) attributable to McKesson | (6) | (12) | 2 | (36) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 0 | |||
Ending balance | 15 | 13 | 15 | 13 |
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (104) | (116) | (96) | (110) |
Other comprehensive income (loss) before reclassifications | (1) | 2 | 5 | (8) |
Amounts reclassified to income statement | (1) | 22 | (3) | 24 |
Other comprehensive income (loss), net of tax | (2) | 24 | 2 | 16 |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 5 | 0 | 3 |
Other comprehensive income (loss) attributable to McKesson | (2) | 19 | 2 | 13 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (12) | |||
Ending balance | $ (106) | $ (97) | $ (106) | $ (97) |
Segments of Business - Narrativ
Segments of Business - Narrative (Details) product in Thousands, $ in Millions | 9 Months Ended |
Dec. 31, 2021USD ($)segmentbusiness_operationproductcountry | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
International (1) | Operating Segments | Disposed of by sale | Canadian Health Benefit Claims Management and Plan Administrative Services Business | |
Segment Reporting Information [Line Items] | |
Pre-tax gain on sale of business | $ | $ 59 |
United States | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
United States | Medical-Surgical Solutions | |
Segment Reporting Information [Line Items] | |
Number of national brand medical-surgical products offered (more than) | product | 275 |
Europe | International (1) | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity segment operates | country | 12 |
Number of business operations | business_operation | 2 |
Segments of Business - Reportab
Segments of Business - Reportable operating segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Segment revenues | ||||||
Total revenues | $ 68,614 | $ 62,599 | $ 197,864 | $ 179,086 | ||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | 298 | (7,362) | 1,405 | (6,050) | ||
Corporate income (expenses), net | (195) | (8,246) | (858) | (8,462) | ||
Loss on debt extinguishment | 0 | 0 | (191) | 0 | ||
Interest expense | (41) | (55) | (135) | (165) | ||
Income (loss) from continuing operations before income taxes | 277 | (7,363) | 1,281 | (6,063) | ||
Pre-tax credits related to LIFO accounting | (79) | (115) | ||||
Charge for remeasurement to fair value | 1,271 | 0 | ||||
Restructuring, impairment, and related charges | 18 | 40 | 208 | 156 | ||
Goodwill impairment charge | 0 | 0 | 0 | 69 | ||
Net gain on settlement proceeds | (7) | (8,067) | (193) | (7,936) | ||
Notes and Debentures Extinguished February 7 2018 | Term Loan | ||||||
Segment operating profit (loss) | ||||||
Loss on debt extinguishment | (191) | |||||
European Businesses (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | 517 | |||||
National Prescription Opioid Litigation | ||||||
Segment operating profit (loss) | ||||||
Pre-tax expenses related to estimated litigation liability | 193 | $ 8,100 | ||||
Held-for-sale | U.K. Disposal Group (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | 823 | 823 | ||||
Held-for-sale | European Businesses (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | 879 | 1,400 | ||||
Held-for-sale | E.U. Businesses (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | 26 | 517 | ||||
Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | 513 | 938 | 2,465 | 2,564 | ||
Corporate | ||||||
Segment operating profit (loss) | ||||||
Restructuring, impairment, and related charges | 9 | 20 | 90 | 60 | ||
Gains associated with equity investments | 30 | 104 | 89 | |||
Corporate | National Prescription Opioid Litigation | ||||||
Segment operating profit (loss) | ||||||
Pre-tax expenses related to estimated litigation liability | 193 | |||||
Corporate | Held-for-sale | E.U. Businesses (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | (32) | 117 | ||||
National Prescription Opioid Litigation | Corporate | ||||||
Segment operating profit (loss) | ||||||
Pre-tax expenses related to estimated litigation liability | (8,100) | (8,100) | ||||
Litigation expense | 33 | 34 | 104 | 118 | ||
Shareholder Derivative Action, Insurance Proceeds | Corporate | ||||||
Segment operating profit (loss) | ||||||
Net gain on settlement proceeds | 131 | |||||
U.S. Pharmaceutical | ||||||
Segment revenues | ||||||
Total revenues | 55,041 | 49,495 | 158,471 | 142,232 | ||
U.S. Pharmaceutical | Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | 744 | 635 | $ 2,186 | 1,871 | ||
Revenue derived from services, percentage (less than) | 1.00% | |||||
Pre-tax credits related to LIFO accounting | 33 | 11 | $ 79 | 115 | ||
Restructuring, impairment, and related charges | 3 | 6 | 25 | 18 | ||
U.S. Pharmaceutical | Operating Segments | New York Opioid Tax Surcharge | ||||||
Segment operating profit (loss) | ||||||
Charge recorded related to Company's share of the litigation settlement | 50 | |||||
U.S. Pharmaceutical | Antitrust Legal Settlements | Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Company's shares of legal settlements | 46 | |||||
Prescription Technology Solutions | ||||||
Segment revenues | ||||||
Total revenues | 1,031 | 777 | 2,844 | 2,101 | ||
Prescription Technology Solutions | Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | 129 | 114 | $ 361 | 270 | ||
Revenue derived from services, percentage (less than) | 40.00% | |||||
Restructuring, impairment, and related charges | 0 | 0 | $ 18 | 0 | ||
Medical-Surgical Solutions | ||||||
Segment revenues | ||||||
Total revenues | 3,082 | 3,054 | 8,734 | 7,388 | ||
Medical-Surgical Solutions | Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | 308 | 260 | $ 679 | 536 | ||
Revenue derived from services, percentage (less than) | 4.00% | |||||
Inventory impairments and excess inventory | 35 | $ 164 | 49 | |||
Restructuring, impairment, and related charges | 1 | (2) | 9 | 4 | ||
International (1) | ||||||
Segment revenues | ||||||
Total revenues | 9,460 | 9,273 | 27,815 | 27,365 | ||
Segment operating profit (loss) | ||||||
Restructuring, impairment, and related charges | 131 | 189 | ||||
Impairment, Long-Lived Asset, Held-for-Use | 115 | 115 | ||||
International (1) | Operating Segments | ||||||
Segment operating profit (loss) | ||||||
Total operating profit (loss) | (668) | (71) | $ (761) | (113) | ||
Revenue derived from services, percentage (less than) | 8.00% | |||||
Restructuring, impairment, and related charges | 5 | 16 | $ 66 | 74 | ||
Goodwill impairment charge | $ 69 | |||||
International (1) | Operating Segments | Held-for-sale | U.K. Disposal Group (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | 787 | 787 | ||||
International (1) | Operating Segments | Held-for-sale | E.U. Businesses (Disposal Group) | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | $ 58 | 400 | ||||
International (1) | Operating Segments | Disposed of by sale | Canadian Health Benefit Claims Management and Plan Administrative Services Business | ||||||
Segment operating profit (loss) | ||||||
Pre-tax gain on sale of business | $ 59 | |||||
International (1) | Operating Segments | Contributed to Joint Venture | German Pharmaceutical Wholesale Business | ||||||
Segment operating profit (loss) | ||||||
Charge for remeasurement to fair value | $ 47 | $ 57 |