Cover
Cover | 6 Months Ended |
Sep. 30, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
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 | 141,793,480 |
Entity Central Index Key | 0000927653 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Document Period End Date | Sep. 30, 2022 |
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 | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 70,157 | $ 66,576 | $ 137,311 | $ 129,250 |
Cost of sales | (67,062) | (63,224) | (131,193) | (122,866) |
Gross profit | 3,095 | 3,352 | 6,118 | 6,384 |
Selling, distribution, general, and administrative expenses | (1,950) | (2,669) | (3,909) | (4,901) |
Claims and litigation charges, net | 9 | (112) | 4 | (186) |
Restructuring, Settlement and Impairment Provisions | (30) | (32) | (53) | (190) |
Total operating expenses | (1,971) | (2,813) | (3,958) | (5,277) |
Operating income | 1,124 | 539 | 2,160 | 1,107 |
Other income, net | 175 | 139 | 190 | 182 |
Loss on debt extinguishment | 0 | (191) | 0 | (191) |
Interest expense | (55) | (45) | (100) | (94) |
Income from continuing operations before income taxes | 1,244 | 442 | 2,250 | 1,004 |
Income tax expense | (271) | (132) | (470) | (158) |
Income from continuing operations | 973 | 310 | 1,780 | 846 |
Loss from discontinued operations, net of tax | (6) | 0 | (4) | (3) |
Net income | 967 | 310 | 1,776 | 843 |
Net income attributable to noncontrolling interests | (41) | (43) | (82) | (90) |
Net income attributable to McKesson Corporation | $ 926 | $ 267 | $ 1,694 | $ 753 |
Diluted | ||||
Continuing operations (in usd per share) | $ 6.46 | $ 1.71 | $ 11.71 | $ 4.82 |
Discontinued operations (in usd per share) | (0.04) | 0 | (0.03) | (0.02) |
Total (in dollars per share) | 6.42 | 1.71 | 11.68 | 4.80 |
Basic | ||||
Continuing operations (in usd per share) | 6.51 | 1.73 | 11.81 | 4.87 |
Discontinued operations (in usd per share) | (0.04) | 0 | (0.02) | (0.02) |
Total (in dollars per share) | $ 6.47 | $ 1.73 | $ 11.79 | $ 4.85 |
Weighted-average common shares outstanding | ||||
Diluted (in usd per share) | 144.1 | 155.8 | 145 | 156.9 |
Basic (in shares) | 143.1 | 154.1 | 143.7 | 155.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 967 | $ 310 | $ 1,776 | $ 843 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments | (192) | (48) | 390 | (24) |
Unrealized gains on cash flow hedges | 18 | 8 | 36 | 8 |
Changes in retirement-related benefit plans | 2 | 2 | 38 | 4 |
Other comprehensive income (loss), net of tax | (172) | (38) | 464 | (12) |
Comprehensive income | 795 | 272 | 2,240 | 831 |
Comprehensive income attributable to noncontrolling interests | (35) | (43) | (126) | (93) |
Comprehensive income attributable to McKesson Corporation | $ 760 | $ 229 | $ 2,114 | $ 738 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 2,916 | $ 3,532 |
Receivables, net | 20,109 | 18,583 |
Inventories, net | 19,876 | 18,702 |
Assets held for sale | 2,825 | 4,516 |
Prepaid expenses and other | 722 | 898 |
Total current assets | 46,448 | 46,231 |
Property, plant, and equipment, net | 2,071 | 2,092 |
Operating lease right-of-use assets | 1,548 | 1,548 |
Goodwill | 9,239 | 9,451 |
Intangible assets, net | 1,872 | 2,059 |
Other non-current assets | 1,903 | 1,917 |
Total assets | 63,081 | 63,298 |
Current liabilities | ||
Drafts and accounts payable | 41,003 | 38,086 |
Current portion of long-term debt | 800 | 799 |
Current portion of operating lease liabilities | 284 | 297 |
Liabilities held for sale | 1,991 | 4,741 |
Other accrued liabilities | 4,279 | 4,543 |
Total current liabilities | 48,357 | 48,466 |
Long-term debt | 4,813 | 5,080 |
Long-term deferred tax liabilities | 1,660 | 1,418 |
Long-term operating lease liabilities | 1,315 | 1,366 |
Long-term litigation liabilities | 6,644 | 7,220 |
Other non-current liabilities | 1,541 | 1,540 |
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, 277 and 275 shares issued at September 30, 2022 and March 31, 2022, respectively | 3 | 2 |
Additional paid-in capital | 7,609 | 7,275 |
Retained earnings | 10,579 | 9,030 |
Accumulated other comprehensive loss | (1,114) | (1,534) |
Treasury shares, at cost, 135 and 130 shares at September 30, 2022 and March 31, 2022, respectively | (18,844) | (17,045) |
Total McKesson Corporation stockholders’ deficit | (1,767) | (2,272) |
Noncontrolling interests | 518 | 480 |
Total deficit | (1,249) | (1,792) |
Total liabilities and deficit | $ 63,081 | $ 63,298 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Mar. 31, 2022 |
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) | 277,000,000 | 275,000,000 |
Treasury stock, shares (in shares) | 135,000,000 | 130,000,000 |
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 |
Beginning balance (in shares) at Mar. 31, 2021 | 273 | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | (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 (in shares) | 2 | ||||||
Issuance of shares under employee plans, net of forfeitures | 51 | 111 | (60) | ||||
Share-based compensation | 76 | 76 | |||||
Repurchase of common stock | (1,280) | 21 | $ (1,301) | ||||
Repurchase of common stock (in shares) | (7) | ||||||
Net income | 835 | 753 | 82 | ||||
Other comprehensive income (loss) | (15) | (15) | |||||
Cash dividends declared | (139) | (139) | |||||
Payments to noncontrolling interests | (79) | (79) | |||||
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 8 | 178 | (170) | ||||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | 287 | |||||
Reclassification of recurring compensation to other accrued liabilities | (2) | (2) | |||||
Other | (4) | (4) | |||||
Ending balance (in shares) at Sep. 30, 2021 | 275 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | (122) | ||||||
Ending balance at Sep. 30, 2021 | (87) | $ 2 | 7,311 | 8,812 | (1,665) | $ (15,031) | 484 |
Beginning balance (in shares) at Jun. 30, 2021 | 274 | ||||||
Beginning balance (in shares) at Jun. 30, 2021 | (119) | ||||||
Beginning balance at Jun. 30, 2021 | (45) | $ 2 | 7,057 | 8,618 | (1,627) | $ (14,579) | 484 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under employee plans, net of forfeitures (in shares) | 1 | ||||||
Issuance of shares under employee plans, net of forfeitures | 39 | 40 | (1) | ||||
Share-based compensation | 43 | 43 | |||||
Repurchase of common stock | (280) | 171 | $ (451) | ||||
Repurchase of common stock (in shares) | (3) | ||||||
Net income | 310 | 267 | 43 | ||||
Other comprehensive income (loss) | (38) | (38) | |||||
Cash dividends declared | (74) | (74) | |||||
Payments to noncontrolling interests | (40) | (40) | |||||
Reclassification of recurring compensation to other accrued liabilities | (2) | (2) | |||||
Other | 0 | 1 | (1) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 275 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | (122) | ||||||
Ending balance at Sep. 30, 2021 | (87) | $ 2 | 7,311 | 8,812 | (1,665) | $ (15,031) | 484 |
Beginning balance (in shares) at Mar. 31, 2022 | 275 | ||||||
Beginning balance (in shares) at Mar. 31, 2022 | (130) | ||||||
Beginning balance at Mar. 31, 2022 | (1,792) | $ 2 | 7,275 | 9,030 | (1,534) | $ (17,045) | 480 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under employee plans, net of forfeitures (in shares) | 2 | ||||||
Issuance of shares under employee plans, net of forfeitures | (26) | $ 1 | 127 | (154) | |||
Share-based compensation | 86 | 86 | |||||
Repurchase of common stock | (1,524) | 121 | $ (1,645) | ||||
Repurchase of common stock (in shares) | (5) | ||||||
Net income | 1,776 | 1,694 | 82 | ||||
Other comprehensive income (loss) | 464 | 420 | 44 | ||||
Cash dividends declared | (145) | (145) | |||||
Payments to noncontrolling interests | (77) | (77) | |||||
Reclassification of recurring compensation to other accrued liabilities | (4) | (4) | |||||
Other | (7) | (7) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 277 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | (135) | ||||||
Ending balance at Sep. 30, 2022 | (1,249) | $ 3 | 7,609 | 10,579 | (1,114) | $ (18,844) | 518 |
Beginning balance (in shares) at Jun. 30, 2022 | 277 | ||||||
Beginning balance (in shares) at Jun. 30, 2022 | (133) | ||||||
Beginning balance at Jun. 30, 2022 | (1,472) | $ 3 | 7,350 | 9,732 | (948) | $ (18,141) | 532 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under employee plans, net of forfeitures | 34 | 36 | (2) | ||||
Share-based compensation | 46 | 46 | |||||
Repurchase of common stock | (524) | 177 | $ (701) | ||||
Repurchase of common stock (in shares) | (2) | ||||||
Net income | 967 | 926 | 41 | ||||
Other comprehensive income (loss) | (172) | (166) | (6) | ||||
Cash dividends declared | (78) | (78) | |||||
Payments to noncontrolling interests | (41) | (41) | |||||
Reclassification of recurring compensation to other accrued liabilities | (2) | (2) | |||||
Other | (7) | (1) | (6) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 277 | ||||||
Ending balance (in shares) at Sep. 30, 2022 | (135) | ||||||
Ending balance at Sep. 30, 2022 | $ (1,249) | $ 3 | $ 7,609 | $ 10,579 | $ (1,114) | $ (18,844) | $ 518 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared per common share (in dollars per share) | $ 0.54 | $ 0.54 | $ 0.47 | $ 0.47 | $ 1.01 | $ 0.89 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
OPERATING ACTIVITIES | ||
Net income | $ 1,776 | $ 843 |
Adjustments to reconcile to net cash provided by operating activities: | ||
Depreciation | 124 | 148 |
Amortization | 175 | 265 |
Long-lived asset impairment charges | 11 | 127 |
Deferred taxes | 170 | (18) |
Credits associated with last-in, first-out inventory method | (36) | (46) |
Non-cash operating lease expense | 126 | 152 |
Gain from sales of businesses and investments | (148) | (101) |
European businesses held for sale | (35) | 470 |
Other non-cash items | 157 | 381 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | (1,883) | (2,311) |
Inventories | (1,453) | (1,164) |
Drafts and accounts payable | 2,292 | 1,431 |
Operating lease liabilities | (174) | (186) |
Taxes | 82 | 40 |
Litigation liabilities | (915) | 151 |
Other | (103) | (12) |
Net cash provided by operating activities | 166 | 170 |
INVESTING ACTIVITIES | ||
Payments for property, plant, and equipment | (157) | (186) |
Capitalized software expenditures | (65) | (93) |
Acquisitions, net of cash, cash equivalents, and restricted cash acquired | (23) | (4) |
Proceeds from sales of businesses and investments, net | 496 | 179 |
Other | (135) | (53) |
Net cash provided by (used in) investing activities | 116 | (157) |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings | 100 | 3,020 |
Repayments of short-term borrowings | (100) | (3,020) |
Proceeds from issuances of long-term debt | 0 | 498 |
Repayments of long-term debt | (4) | (1,636) |
Payments for debt extinguishments | 0 | (184) |
Common stock transactions: | ||
Issuances | 127 | 111 |
Share repurchases | (1,484) | (1,272) |
Dividends paid | (139) | (134) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 0 | (1,031) |
Other | (253) | (246) |
Net cash used in financing activities | (1,753) | (3,894) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 24 | 18 |
Change in cash, cash equivalents, and restricted cash classified within Assets held for sale | 470 | 0 |
Net decrease in cash, cash equivalents, and restricted cash | (977) | (3,863) |
Cash, cash equivalents, and restricted cash at beginning of period | 3,935 | 6,396 |
Cash, cash equivalents, and restricted cash at end of period | 2,958 | 2,533 |
Less: Restricted cash at end of period included in Prepaid expenses and other | (42) | (382) |
Cash and cash equivalents at end of period | $ 2,916 | $ 2,151 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations : McKesson Corporation (“McKesson,” or the “Company,”) is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere. McKesson partners with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver insights, products, and services to help make quality care more accessible and affordable. 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 additional information. Basis of Presentation: The condensed consolidated financial statements and accompanying notes are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“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. 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 can exercise significant influence over operating and financial policies are accounted for using the equity method. Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. Reclassifications: Certain prior period amounts have been reclassified to conform to the current year presentation. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires the Company to 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 could differ from those estimated amounts. The Company continues to evaluate the ongoing impacts, including the economic consequences, of the pandemic caused by the SARS-CoV-2 coronavirus (“COVID-19”), and therefore 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 results of operations, financial position, and cash flows of McKesson for the interim periods presented. The results of operations for the three and six months ended September 30, 2022 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, 2022, previously filed with the SEC on May 9, 2022 (“2022 Annual Report”). On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the “IR Act”). Among other provisions, the IR Act includes a 15% corporate minimum tax, a 1% excise tax on certain repurchases of an entity’s own common stock after December 31, 2022, and various drug pricing reforms. Based on its preliminary assessment, the Company does not currently expect the IR Act to have a material impact on its results of operations, financial position, or cash flows in the foreseeable future; however, the Company will continue to evaluate the full impact of these legislative changes. Recently Adopted Accounting Pronouncements There were no adopted accounting standards during the first half of fiscal 2023 that had a material impact to the Company’s results of operations, financial position, cash flows, or notes to the financial statements upon their adoption. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions , which clarifies the guidance when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of the equity security, and requires additional disclosure requirements. ASU 2022-03 is effective for the Company on a prospective basis for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect that this guidance will have a material impact on its consolidated financial statements or related disclosures. |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 6 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Acquisitions and Divestitures | Business Acquisitions and Divestitures Acquisitions Rx Savings Solutions, LLC On November 1, 2022, the Company completed its acquisition of Rx Savings Solutions, LLC (“RxSS”), a privately-owned company headquartered in Overland Park, Kansas, to expand on connecting biopharma and payer services to patients. RxSS is a prescription price transparency and benefit insight company that offers affordability and adherence solutions to health plans and employers. The purchase consideration included a payment of approximately $600 million made upon closing and a maximum of $275 million of contingent consideration based on RxSS’ financial performance through calendar year 2025. The financial results of RxSS will be included in the Company’s RxTS segment as of the acquisition date in the third quarter of fiscal 2023. The transaction will be accounted for as a business combination and the analysis to assign fair values to the assets acquired and liabilities assumed is currently underway. Oncology Research Business On October 31, 2022, the Company completed a transaction with HCA Healthcare, Inc. (“HCA”) to form an oncology research business, combining McKesson’s U.S. Oncology Research (“USOR”) and HCA’s Sarah Cannon Research Institute (“SCRI”), to advance cancer care and increase access to oncology clinical research. McKesson owns a 51% controlling interest in the combined business, and the financial results will be consolidated by the Company and reported within its U.S. Pharmaceutical segment as of the acquisition date in the third quarter of fiscal 2023. Transaction consideration included the transfer of full ownership interest in USOR to the combined business and $173 million of cash paid to HCA. The transaction will be accounted for as a business combination and the analysis to assign fair values to the assets acquired, liabilities assumed, and noncontrolling interest is currently underway. Separately, on October 31, 2022, McKesson acquired Genospace, SCRI’s personalized medicine platform. Genospace is a leading innovator in precision medicine and clinical trial matching and will enhance McKesson’s oncology data and analytics capabilities. The acquisition of Genospace will be accounted for as a business combination and its financial results will be included in the U.S. Pharmaceutical segment as of the acquisition date in the third quarter of 2023. The analysis to assign fair values to the assets acquired and liabilities assumed is currently underway. Divestitures In July 2021, the Company announced its intention to exit its businesses in Europe resulting in classification of certain assets and liabilities as held for sale. Assets and liabilities of $2.8 billion and $2.0 billion, respectively, at September 30, 2022, and $4.5 billion and $4.7 billion, respectively, at March 31, 2022, met the criteria for classification as held for sale, primarily consisting of disposal groups related to the Company’s European divestiture activities discussed below. The decrease in assets and liabilities held for sale during fiscal 2023 was driven by the divestiture of the Company’s U.K. disposal group in April 2022, as discussed in more detail below. Assets and liabilities 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. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was classified as held for sale. The Company determined that the disposal groups classified as held for sale do not meet the criteria for classification as discontinued operations. 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 $1.2 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 closed on October 31, 2022, and the Company received net cash proceeds of $892 million after the adjustments listed above. As of September 30, 2022 and March 31, 2022, the E.U. disposal group within the Company’s International segment, was classified as “Assets held for sale” and “Liabilities held for sale,” respectively, in the Condensed Consolidated Balance Sheets. During the three and six months ended September 30, 2022, the Company recorded a gain of $23 million and $35 million, respectively, and during the three and six months ended September 30, 2021, recorded charges totaling $491 million to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell. The fiscal 2022 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 in the three and six months ended September 30, 2021 included a $226 million loss related to the accumulated other comprehensive income balances associated with the E.U. disposal group. These amounts 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 Sheets are as follows: (In millions) September 30, 2022 March 31, 2022 Assets Current assets Receivables, net $ 1,175 $ 1,322 Inventories, net 810 809 Prepaid expenses and other 68 72 Property, plant, and equipment, net 278 304 Operating lease right-of-use assets 206 224 Intangible assets, net 236 267 Other non-current assets 297 328 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1) (245) (302) Total assets held for sale $ 2,825 $ 3,024 Liabilities Current liabilities Drafts and accounts payable $ 1,258 $ 1,826 Current portion of long-term debt 4 4 Current portion of operating lease liabilities 28 33 Other accrued liabilities 360 473 Long-term debt 10 11 Long-term deferred tax liabilities 64 55 Long-term operating lease liabilities 153 180 Other non-current liabilities 114 138 Total liabilities held for sale $ 1,991 $ 2,720 (1) Excludes charges in fiscal 2022 related to the impairment of individual assets, including a $113 million impairment of internally developed software recorded directly against the gross value of the assets impacted. On April 6, 2022, the Company completed the previously announced sale of its retail and distribution businesses in the United Kingdom (“U.K. disposal group”) to Aurelius Elephant Limited for a purchase price of £110 million (or, approximately $144 million), including certain adjustments. As part of the transaction, the Company divested net assets of $615 million and released $731 million of accumulated other comprehensive loss, within the International segment, and the buyer assumed and repaid a note payable to the Company of approximately $118 million. Following the completion of the transaction on April 6, 2022, there were no assets or liabilities of the U.K. disposal group classified as held for sale in the Company’s Condensed Consolidated Balance Sheets. The total assets and liabilities of the U.K. disposal group that met the classification of held for sale in the Company’s Condensed Consolidated Balance Sheet at March 31, 2022 were as follows: (In millions) March 31, 2022 Assets Current assets Cash and cash equivalents $ 531 Receivables, net 931 Inventories, net 563 Prepaid expenses and other 50 Property, plant, and equipment, net 91 Operating lease right-of-use assets 270 Intangible assets, net 117 Other non-current assets 88 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1,159) Total assets held for sale $ 1,482 Liabilities Current liabilities Drafts and accounts payable $ 1,593 Current portion of operating lease liabilities 50 Other accrued liabilities 59 Long-term deferred tax liabilities 16 Long-term operating lease liabilities 262 Other non-current liabilities 38 Total liabilities held for sale $ 2,018 Other For the periods presented, the Company also completed de minimis acquisitions and divestitures within its operating segments. Financial results for the Company’s business acquisitions have been included in its consolidated financial statements as of their respective acquisition dates. Purchase prices for business acquisitions have been allocated based on estimated fair values at the respective acquisition dates. |
Restructuring, Impairment, and
Restructuring, Impairment, and Related Charges, Net | 6 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Related Charges | Restructuring, Impairment, and Related Charges, NetThe Company recorded restructuring, impairment, and related charges, net of $30 million and $32 million for the three months ended September 30, 2022 and 2021, respectively, and $53 million and $190 million for the six months ended September 30, 2022 and 2021, respectively. These charges were included in “Restructuring, impairment, and related charges, net” in the Condensed Consolidated Statements of Operations. Restructuring Initiatives During the first quarter of fiscal 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 included the rationalization of the Company’s office space in North America. Where the Company ceased using office space, it exited the portion of the facility no longer used. It also retained and repurposed certain other office locations. The Company recorded charges of $15 million and $110 million for the three and six months ended September 30, 2021, respectively, primarily related to lease right-of-use and other long-lived asset impairments, lease exit costs, and accelerated depreciation and amortization. This initiative was substantially complete in fiscal 2022 and remaining costs the Company recorded and expects to record under this initiative are not material. Restructuring, impairment, and related charges, net, for the three months ended September 30, 2022 and 2021 consisted of the following: Three Months Ended September 30, 2022 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ — $ — $ — $ 2 $ (5) $ (3) Exit and other-related costs (1) — 1 1 6 14 22 Asset impairments and accelerated depreciation 3 6 — 1 1 11 Total $ 3 $ 7 $ 1 $ 9 $ 10 $ 30 (1) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Three Months Ended September 30, 2021 (In millions) U.S. Pharmaceutical (1) Prescription Technology Solutions Medical-Surgical Solutions International Corporate (1) Total Severance and employee-related costs, net $ — $ (1) $ 1 $ (2) $ 1 $ (1) Exit and other-related costs (2) 2 1 — 1 6 10 Asset impairments and accelerated depreciation 8 — 1 2 12 23 Total $ 10 $ — $ 2 $ 1 $ 19 $ 32 (1) Includes costs related to the transition to a partial remote work model described above. (2) Exit and other-related costs 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, net, for the six months ended September 30, 2022 and 2021 consisted of the following: Six Months Ended September 30, 2022 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ 3 $ — $ — $ 2 $ (6) $ (1) Exit and other-related costs (1) 1 3 2 8 29 43 Asset impairments and accelerated depreciation 3 11 — 1 (4) 11 Total $ 7 $ 14 $ 2 $ 11 $ 19 $ 53 (1) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Six Months Ended September 30, 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 $ 1 $ 13 Exit and other-related costs (3) 4 2 2 15 27 50 Asset impairments and accelerated depreciation 16 17 5 36 53 127 Total $ 22 $ 18 $ 8 $ 61 $ 81 $ 190 (1) Includes costs related to the transition to a partial remote work model described above. (2) Includes costs related to the transition to a partial remote work model described above, U.K. operating model and cost optimization efforts, and costs for optimization programs in Canada. (3) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the six months ended September 30, 2022: (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Balance, March 31, 2022 (1) $ 11 $ 3 $ 1 $ 56 $ 59 $ 130 Restructuring, impairment, and related charges, net 7 14 2 11 19 53 Non-cash charges (3) (11) — (1) 4 (11) Cash payments (3) (3) (2) (6) (25) (39) Other (2) (1) — — (24) 1 (24) Balance, September 30, 2022 (3) $ 11 $ 3 $ 1 $ 36 $ 58 $ 109 (1) As of March 31, 2022, the total reserve balance was $130 million, of which $58 million was recorded in “Other accrued liabilities,” $36 million was recorded in “Liabilities held for sale,” and $36 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. (2) Other primarily includes cumulative translation adjustments and transfers to certain other liabilities. For the Company’s International segment, other also includes a reduction of the liability related to the sale of the U.K. disposal group in April 2022, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” (3) As of September 30, 2022, the total reserve balance was $109 million, of which $60 million was recorded in “Other accrued liabilities,” $22 million was recorded in “Liabilities held for sale,” and $27 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense related to continuing operations was as follows: Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2022 2021 2022 2021 Income tax expense $ 271 $ 132 $ 470 $ 158 Reported income tax rate 21.8 % 29.9 % 20.9 % 15.7 % Fluctuations in the Company’s reported income tax rates were primarily due to non-cash charges related to remeasuring the value of the E.U. disposal group in the second quarter of fiscal 2022, changes in the mix of earnings between various taxing jurisdictions, and discrete benefits recognized in the quarters. During the three months ended September 30, 2022 and 2021, the Company recognized a net discrete tax benefit primarily related to increased tax credits of $16 million and a decrease in the global intangible low-tax income (“GILTI”) of $55 million, respectively. During the six months ended September 30, 2022, the Company recognized a net discrete tax benefit primarily related to the tax impact of share-based compensation of $53 million. During the six months ended September 30, 2021, the Company also recognized a net discrete tax benefit primarily related to statute of limitation expirations of $97 million in various taxing jurisdictions. During the second quarter of fiscal 2022, the Company recorded non-cash pre-tax charges totaling $491 million primarily to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell, as described in Financial Note 2, “Business Acquisitions and Divestitures.” The Company’s reported income tax rates for the three and six months ended September 30, 2021 were unfavorably impacted by this due to the non-deductible nature of the majority of these charges for income tax purposes. As of September 30, 2022, the Company had $1.5 billion of unrecognized tax benefits, of which $1.3 billion would reduce income tax expense and the effective tax rate if recognized. During the next twelve months, it is reasonably possible that our unrecognized tax benefits may decrease by as much as $150 million to $180 million due to settlements of tax examinations and statute of limitation expirations based on the information currently available. However, this may change as the Company continues to have ongoing discussions with various taxing authorities throughout the year, and if the ultimate resolution of unrecognized tax benefits differs from this estimated range, the Company will record any additional income tax expense or benefit as necessary in the appropriate period. 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 2014 through the current fiscal year. The Company is a party to a certain tax receivable agreement (“TRA”) entered into as part of the formation of the joint venture with Change Healthcare Inc. (“Change”), from which McKesson has since exited. The TRA generally requires Change to pay McKesson 85% of the net cash tax savings realized, or deemed to be realized, by Change resulting from the amortization allocated to Change by the joint venture. In October 2022, Change exercised its right pursuant to the TRA to terminate the agreement. The Company received $126 million in the third quarter of fiscal 2023 due to early termination of the TRA, which will result in a gain within “Other income, net” in the Condensed Consolidated Statements of Operations. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Noncontrolling Interests | 6 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests The Company’s previously recognized 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 six months ended September 30, 2021. This amount was recorded in “Net income attributable to noncontrolling interests” in the Company’s Condensed Consolidated Statement of Operations and the corresponding liability balance was recorded in “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheet. 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”). During the six months ended September 30, 2021, the Company paid $1.0 billion to purchase 34.5 million shares of McKesson Europe through exercises of the Put Right by the noncontrolling shareholders. This decreased the carrying value of the redeemable noncontrolling interests by $983 million for the six months ended September 30, 2021, and the Company recorded the associated effect of the increase in the Company’s ownership interest of $178 million 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. 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. The Company’s noncontrolling interest in McKesson Europe, with a carrying value of $382 million at September 30, 2022, was included in the sale of the E.U. disposal group, as discussed in Financial Note 2, “Business Acquisitions and Divestitures.” The Company allocated $41 million and $43 million of net income to noncontrolling interests during the three months ended September 30, 2022 and 2021, respectively, and $82 million during each of the six months ended September 30, 2022 and 2021, which was recorded in “Net income attributable to noncontrolling interests” in the Company’s Condensed Consolidated Statements of Operations. Changes in noncontrolling interests for the three and six months ended September 30, 2022 were as follows: (In millions) Noncontrolling Interests Balance, June 30, 2022 $ 532 Net income attributable to noncontrolling interests 41 Other comprehensive loss (6) Payments to noncontrolling interests (41) Reclassification of recurring compensation to other accrued liabilities (2) Other (6) Balance, September 30, 2022 $ 518 (In millions) Noncontrolling Interests Balance, March 31, 2022 $ 480 Net income attributable to noncontrolling interests 82 Other comprehensive income 44 Payments to noncontrolling interests (77) Reclassification of recurring compensation to other accrued liabilities (4) Other (7) Balance, September 30, 2022 $ 518 Changes in redeemable noncontrolling interests and noncontrolling interests for the three and six months ended September 30, 2021 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, June 30, 2021 $ 484 $ 7 Net income attributable to noncontrolling interests 43 — Payments to noncontrolling interests (40) — Reclassification of recurring compensation to other accrued liabilities (2) — Other (1) (7) Balance, September 30, 2021 $ 484 $ — (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2021 $ 196 $ 1,271 Net income attributable to noncontrolling interests 82 8 Other comprehensive income — 3 Payments to noncontrolling interests (79) — Reclassification of recurring compensation to other accrued liabilities (2) (8) Exercises of Put Right — (983) Reclassification of McKesson Europe redeemable noncontrolling interests 287 (287) Other — (4) Balance, September 30, 2021 $ 484 $ — |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 6 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common ShareBasic earnings per common share are computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The computation of diluted earnings per common share is similar to that of basic earnings 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 restricted stock units. Less than 1 million potentially dilutive securities for each of the three and six months ended September 30, 2022 and 2021 were excluded from the computation of diluted earnings per common share as they were anti-dilutive. The computations for basic and diluted earnings per common share are as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions, except per share amounts) 2022 2021 2022 2021 Income from continuing operations $ 973 $ 310 $ 1,780 $ 846 Net income attributable to noncontrolling interests (41) (43) (82) (90) Income from continuing operations attributable to McKesson Corporation 932 267 1,698 756 Loss from discontinued operations, net of tax (6) — (4) (3) Net income attributable to McKesson Corporation $ 926 $ 267 $ 1,694 $ 753 Weighted-average common shares outstanding: Basic 143.1 154.1 143.7 155.1 Effect of dilutive securities: Stock options 0.2 0.2 0.3 0.2 Restricted stock units (1) 0.8 1.5 1.0 1.6 Diluted 144.1 155.8 145.0 156.9 Earnings (loss) per common share attributable to McKesson Corporation: (2) Diluted Continuing operations $ 6.46 $ 1.71 $ 11.71 $ 4.82 Discontinued operations (0.04) — (0.03) (0.02) Total $ 6.42 $ 1.71 $ 11.68 $ 4.80 Basic Continuing operations $ 6.51 $ 1.73 $ 11.81 $ 4.87 Discontinued operations (0.04) — (0.02) (0.02) Total $ 6.47 $ 1.73 $ 11.79 $ 4.85 (1) Includes dilutive effect from restricted stock units and performance-based stock units. (2) Certain computations may reflect rounding adjustments. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net The Company evaluates goodwill for impairment on an annual basis and at an interim date, if indicators of potential impairment exist. The Company voluntarily changed its annual goodwill impairment testing date from October 1 st to April 1 st to align with a change in timing of the Company’s annual long-term planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied prospectively from April 1, 2022 as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight. This change was not material to the Company’s consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charge. The annual impairment testing performed as of April 1, 2022 did not indicate an 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 Total Balance, March 31, 2022 $ 3,923 $ 1,542 $ 2,453 $ 1,533 $ 9,451 Goodwill acquired 11 — — 1 12 Foreign currency translation adjustments, net (72) — — (150) (222) Other adjustments (2) — — — (2) Balance, September 30, 2022 $ 3,860 $ 1,542 $ 2,453 $ 1,384 $ 9,239 Information regarding intangible assets is as follows: September 30, 2022 March 31, 2022 (Dollars in millions) Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 12 $ 2,710 $ (1,703) $ 1,007 $ 2,777 $ (1,691) $ 1,086 Service agreements 9 1,063 (591) 472 1,085 (573) 512 Trademarks and trade names 11 765 (402) 363 819 (386) 433 Technology 3 132 (120) 12 128 (116) 12 Other 9 190 (172) 18 187 (171) 16 Total $ 4,860 $ (2,988) $ 1,872 $ 4,996 $ (2,937) $ 2,059 Amortization expense of intangible assets was $57 million and $84 million for the three months ended September 30, 2022 and 2021, respectively, and $113 million and $182 million for the six months ended September 30, 2022 and 2021, respectively. Estimated amortization expense of these assets is as follows: $108 million, $208 million, $202 million, $170 million, and $164 million for the remainder of fiscal 2023 and each of the succeeding years through fiscal 2027, respectively, and $1.0 billion thereafter. All intangible assets were subject to amortization as of September 30, 2022 and March 31, 2022. Amortization of intangible assets of the E.U. disposal group classified as held for sale ceased in the second quarter of fiscal 2022. |
Debt and Financing Activities
Debt and Financing Activities | 6 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Activities | Debt and Financing Activities Long-term debt consisted of the following: (In millions) September 30, 2022 March 31, 2022 U.S. Dollar notes (1) (2) 2.70% Notes due December 15, 2022 $ 400 $ 400 2.85% Notes due March 15, 2023 360 360 3.80% Notes due March 15, 2024 918 918 0.90% Notes due December 3, 2025 500 500 1.30% Notes due August 15, 2026 498 498 7.65% Debentures due March 1, 2027 150 150 3.95% Notes due February 16, 2028 343 343 4.75% Notes due May 30, 2029 196 196 6.00% Notes due March 1, 2041 217 217 4.88% Notes due March 15, 2044 255 255 Foreign currency notes (1) (3) 1.50% Euro Notes due November 17, 2025 586 662 1.63% Euro Notes due October 30, 2026 490 554 3.13% Sterling Notes due February 17, 2029 503 582 Lease and other obligations 197 244 Total debt 5,613 5,879 Less: Current portion 800 799 Total long-term debt $ 4,813 $ 5,080 (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. Long-Term Debt The Company’s long-term debt includes both U.S. dollar and foreign currency-denominated borrowings. Debt outstanding totaled $5.6 billion and $5.9 billion at September 30, 2022 and March 31, 2022, respectively, of which $800 million and $799 million, was included under the caption “Current portion of long-term debt” within the Company’s Condensed Consolidated Balance Sheets at September 30, 2022 and March 31, 2022, respectively. 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, 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, as amended (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 upon margins. The 2020 Credit Facility matures in September 2024 and had no borrowings during the six months ended September 30, 2022 and 2021 and no amounts outstanding as of September 30, 2022 and March 31, 2022. The 2020 Credit Facility 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 September 30, 2022, the Company was in compliance with all covenants. The Company also maintains bilateral credit facilities primarily denominated in Euros with no committed amount and an uncommitted amount of $99 million as of September 30, 2022. Borrowings and repayments were not material during the six months ended September 30, 2022 and 2021. Amounts outstanding under these credit lines were not material as of September 30, 2022 and March 31, 2022. 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 six months ended September 30, 2022, the Company borrowed $100 million and repaid $100 million under the program. During the six months ended September 30, 2021, the Company borrowed $3.0 billion and repaid $3.0 billion under the program. At September 30, 2022 and March 31, 2022, there were no commercial paper notes outstanding. |
Pension Benefits
Pension Benefits | 6 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pension Benefits | Pension Benefits The net periodic expense for defined benefit pension plans was not material for each of the three and six months ended September 30, 2022 and 2021. Cash contributions to these plans were $2 million and $5 million for the three and six months ended September 30, 2022, respectively, and $3 million and $17 million for the three and six months ended September 30, 2021, respectively. 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 estimated life expectancy. As part of the European divestiture activities discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures,” pension liabilities of $74 million and $85 million as of September 30, 2022 and March 31, 2022, respectively, were included under the caption “Liabilities held for sale,” in the Condensed Consolidated Balance Sheets as part of the E.U. disposal group. During the first quarter of fiscal 2023, the Company derecognized pension assets of $49 million and released $30 million of accumulated other comprehensive loss related to the sale of its U.K. disposal group. The pension assets were included within “Assets held for sale” in the Condensed Consolidated Balance Sheet as of March 31, 2022. |
Hedging Activities
Hedging Activities | 3 Months Ended |
Sep. 30, 2022 | |
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 as described below. In accordance with the Company’s policy, derivatives are only used for hedging purposes. It does not use derivatives for trading or speculative purposes. The Company uses different counterparties for its derivative contracts to minimize the exposure to credit risk but does not anticipate non-performance by these parties. 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. Subsequent to the completion of the U.K. divestiture in April 2022 as discussed in Financial Note 2, “Business Acquisitions and Divestitures,” the Company’s foreign currency exchange rate risk is limited to the Euro and Canadian dollar. Non-Derivative Instruments Designated as Hedges At September 30, 2022 and March 31, 2022, the Company had €1.1 billion 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 as 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. In connection with the sale of the U.K. disposal group in April 2022, the Company reclassified $26 million of gains from accumulated other comprehensive loss and recorded in “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations for the six months ended September 30, 2022. This amount related to the Company’s £450 million British pound sterling-denominated notes, which were previously accounted for as net investment hedges until de-designated in fiscal 2020, and was included in the fiscal 2022 calculation of charges to remeasure the assets and liabilities to fair value less costs to sell. Foreign currency gains (losses) from non-derivative instruments included in other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Non-derivatives designated as net investment hedges: (1) Euro-denominated notes $ 75 $ 33 $ 139 $ 11 (1) There was no ineffectiveness in these hedges for the three and six months ended September 30, 2022 and 2021. Derivative Instruments At September 30, 2022 and March 31, 2022, the notional amounts of the Company’s outstanding derivatives were as follows: September 30, 2022 March 31, 2022 (In millions) Currency Maturity Date Notional Derivatives designated as net investment hedges: (1) Cross-currency swaps (2) CAD Nov-24 $ 500 $ 500 Derivatives designated as fair value hedges: (1) Cross-currency swaps (3) GBP Feb-23 £ 450 £ 450 Floating interest rate swaps (4) USD Aug-27 to Sep-29 $ 750 $ — Derivatives designated as cash flow hedges: (1) Cross-currency swaps (2) CAD Jul-22 to Jan-24 $ 1,532 $ 1,678 Fixed interest rate swaps (5) USD Mar-23 $ 500 $ 500 (1) There was no ineffectiveness in these hedges for the three and six months ended September 30, 2022 and 2021. (2) The Company agreed 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. (3) 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. (4) The Company entered into fixed-to-floating interest rate swaps to hedge the changes in fair value caused by fluctuations in the benchmark interest rates. (5) The Company entered into agreements with financial institutions to lock into the fixed benchmark interest rates for future bond issuance. Net Investment Hedges The Company uses cross-currency swaps 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 and 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. Fair Value Hedges The Company uses cross-currency swaps to hedge the changes in the fair value of British pound sterling notes resulting from changes in benchmark interest rates and foreign exchange rates. The changes in the fair value of these derivatives and the offsetting changes in the fair value of the hedged notes are recorded in earnings. Gains from the changes in the Company’s fair value hedges recorded in earnings were largely offset by the losses recorded in earnings on the hedged item. During the three and six months ended September 30, 2022, the Company entered into floating interest rate swaps to convert $570 million and $750 million, respectively, of its fixed rate debt to floating interest rate in order to hedge the changes in fair value caused by fluctuations in the benchmark interest rate. The changes in the fair value of these derivatives are recorded in “Interest expense” in the Condensed Consolidated Statements of Operations. Cash Flow Hedges From time to time, the Company enters into cross-currency swaps to hedge intercompany loans denominated in non-functional currencies to reduce the income statement effects arising from fluctuations in foreign currency rates and also enters into forward contracts to hedge the variability future benchmark interest rates on planned bond issuances. The effective portion of changes in the fair value of these 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. Gains or losses reclassified from accumulated other comprehensive loss and recorded in “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations were not material for the three and six months ended September 30, 2022 and 2021. 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. From time to time, the Company enters into forward contracts to hedge the Euro against cash flows denominated in British pound sterling and other European currencies. 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 for the three and six months ended September 30, 2021 and the Company did not have any outstanding derivative instruments not designated as hedges during fiscal 2023. Gains or losses from these contracts are largely offset by changes in the value of the underlying intercompany obligations. Other Information on Derivative Instruments Gains (losses) of derivatives included in other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Derivatives designated as net investment hedges: Cross-currency swaps $ 21 $ 10 $ 33 $ 5 Derivatives designated as cash flow hedges: Cross-currency swaps $ (3) $ 1 $ (5) $ (1) Fixed interest rate swaps 28 10 55 12 Information regarding the fair value of derivatives on a gross basis were as follows: Balance Sheet September 30, 2022 March 31, 2022 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 $ 43 $ 62 $ 1,417 $ 30 $ 39 $ 1,537 Cross-currency swaps (non-current) Other non-current assets/liabilities 26 — 679 — 36 679 Fixed interest rate swaps (current) Prepaid expenses and other 85 — 500 31 — 500 Floating interest rate swaps (non-current) Other non-current liabilities — 34 750 — — — Total $ 154 $ 96 $ 61 $ 75 Refer to Financial Note 11, "Fair Value Measurements," for more information on these recurring fair value measurements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and March 31, 2022 included investments in money market funds of $772 million and $981 million, 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. The Company’s marketable securities were not material at September 30, 2022 and March 31, 2022. Fair values of the Company’s interest rate swaps, cross-currency swaps, and foreign currency forward contracts 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, cross-currency swaps, and foreign currency forward contracts. 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 $252 million and $346 million at September 30, 2022 and March 31, 2022, respectively. 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 six months ended September 30, 2022, the Company recognized impairment charges and realized gains on the exit of certain investments. During the three months ended September 30, 2021, certain of the Company’s investments in equity securities without readily determinable fair values were remeasured to fair value based on transactions which resulted in changes in the observable price of those securities. Net gains (losses) related to the Company’s investments in these equity securities were $(3) million and $97 million for the three months ended September 30, 2022 and 2021, respectively, and $(25) million and $104 million for the six months ended September 30, 2022 and 2021, respectively. These amounts were recorded in “Other income, net” in the Condensed Consolidated Statements of Operations. The carrying value of publicly-traded investments, which was not material for the periods presented, 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 September 30, 2022 and March 31, 2022, the assets and liabilities associated with the disposal groups in Europe classified as 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, “Business Acquisitions and Divestitures." At March 31, 2022, assets measured at fair value on a nonrecurring basis also included certain long-lived assets within the International segment related to the Company’s previous operations in Denmark and its retail pharmacy businesses in Canada. 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. The inputs related to changes in observable price 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. Inputs related to impairments of investments are generally considered Level 3 fair value measurements due to their inherently unobservable nature based on significant assumptions by management and use of company-specific information. There were no other material assets or liabilities measured at fair value on a nonrecurring basis at September 30, 2022 and March 31, 2022. Other Fair Value Disclosures At September 30, 2022 and March 31, 2022, 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-term 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: September 30, 2022 March 31, 2022 (In millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 5,613 $ 5,321 $ 5,879 $ 5,999 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 primarily consists of $35 million and $395 million as of September 30, 2022 and March 31, 2022, respectively, held in escrow related to obligations under settlement agreements for opioid-related claims of governmental entities, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities.” 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 each reporting unit. 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 long-lived assets is considered a Level 3 fair value measurement. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Sep. 30, 2022 | |
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 18 to the Company’s 2022 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 Statements 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 have been sued as defendants in many cases asserting claims related to distribution of controlled substances. They have been named as defendants along with other pharmaceutical wholesale distributors, pharmaceutical manufacturers, and retail pharmacy chains. The plaintiffs in these actions have included state attorneys general, county and municipal governments, school districts, 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. The Company and two other national pharmaceutical distributors (collectively “Distributors”) settled with 46 of 49 eligible states and their participating subdivisions, as well as the District of Columbia and all eligible territories (collectively, “Settling Governmental Entities”) effective on April 2, 2022 (“Settlement”). Under the Settlement, the Distributors will pay the Settling Governmental Entities up to approximately $19.5 billion over 18 years, with up to approximately $7.4 billion to be paid by the Company for its 38.1% portion. A minimum of 85% of the Settlement 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. Under the Settlement, the Distributors will establish a clearinghouse to consolidate their controlled-substance distribution data, which will be available to the settling U.S. states to use as part of their anti-diversion efforts. The Distributors do not admit liability or wrongdoing and do not waive any defenses pursuant to the Settlement. Consent judgments have been entered in all participating states and territories, and approximately 2,000 cases have been dismissed pursuant to the Settlement. Three eligible states, Alabama, Washington, and Oklahoma did not join the Settlement, but they have all now reached agreements with the Company. With respect to the claims of the Alabama attorney general, the Company has negotiated an agreement under which the Company will pay $141 million in ten equal annual installments and an additional approximately $33 million in attorney fees and costs to resolve the opioid-related claims of the state of Alabama and its subdivisions. On May 3, 2022, the Distributors announced an agreement with the attorney general of Washington to settle the claims of the state of Washington and its subdivisions. Under that agreement, Washington and its subdivisions would be paid up to $518 million over 18 years, of which the Company’s portion would be 38.1% (or approximately $197 million), consistent with Washington’s allocation under the comprehensive framework, as well as certain additional attorneys’ fees and costs. On June 27, 2022, an agreement was announced between the Distributors and the attorney general of Oklahoma to settle claims of the state of Oklahoma and its subdivisions. Under that agreement, Oklahoma and its subdivisions will be paid up to approximately $308 million over 18 years, of which the Company’s portion would be 38.1% (or approximately $117 million), consistent with Oklahoma’s allocation under the comprehensive framework. The Company’s loss contingency accruals for these three states and their subdivisions reflect the amounts of these agreements. The Company previously settled with the state of West Virginia, and West Virginia and its subdivisions were not eligible to participate in the comprehensive Settlement. Trial in the case of Cabell County and the City of Huntington occurred in the U.S. District Court for the Southern District of West Virginia and concluded on July 28, 2021. On July 4, 2022, the court entered judgment in defendants’ favor. On August 2, 2022, the plaintiffs filed an appeal. The claims of certain other West Virginia subdivisions were pending in the federal Multi-district Litigation and before the state Mass Litigation Panel. On July 5, 2022, the Mass Litigation Panel entered an order noting an agreement in principle between a group of plaintiffs’ attorneys representing the municipalities and the Distributors. Under the settlement agreement with the participating West Virginia municipalities, the Distributors will pay $400 million over approximately 11 years, with the Company responsible for 38.1% of the total amount (or approximately $152 million). All participating litigating subdivisions have dismissed their claims against the Company. The agreement does not include school districts or the claims of Cabell County and the City of Huntington. The Company’s loss contingency accruals for the West Virginia subdivisions are reflected in the estimated liability for the opioid-related claims as of September 30, 2022. With respect to the claims of Native American tribes, on September 28, 2021, the Company announced that the Distributors 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 an agreement to resolve opioid-related claims brought by Native American tribes. Under that agreement, which was executed on October 26, 2022, the Distributors will 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). The agreement achieves broad resolution of opioid-related claims brought against the Distributors by federally recognized Native American tribes. Under these agreements, a minimum of 85% of the settlement payments must be used by the Native American tribes to remediate the opioid epidemic. The Company’s loss-contingency accruals for the Native American tribes reflect these amounts and are reflected in the estimated liability for the opioid-related claims as of September 30, 2022. Although the Settlement terminated the substantial majority of opioid-related suits by governmental entities pending against the Company, a small number of subdivisions have opted not to participate in the settlements described above. 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. The Company’s loss contingency accruals for these subdivisions are reflected in the estimated liability for the opioid-related claims consistent with what would be allocated under the framework of the settlement. In the three and six months ended September 30, 2022, the Company paid $535 million and $910 million, respectively, associated with the Settlement and separate settlement agreements of opioid-related claims of participating states, subdivisions, and the Cherokee Nation. The Company’s estimated accrued liability for the opioid-related claims of governmental entities is as follows: (In millions) September 30, 2022 March 31, 2022 Current litigation liabilities (1) $ 703 $ 1,046 Long-term litigation liabilities 6,644 7,220 Total litigation liabilities $ 7,347 $ 8,266 (1) These amounts as of September 30, 2022 and March 31, 2022, recorded in “Other accrued liabilities” in the Condensed Consolidated Balance Sheets, are the amounts estimated to be paid within the next twelve months following each respective period end date. During the six months ended September 30, 2022, the Company paid $45 million into, and released $406 million from, escrow consistent with the terms of the opioid settlement agreements. The remaining escrow amounts, totaling $35 million, were presented as restricted cash within “Prepaid expenses and other” in our Condensed Consolidated Balance Sheet as of September 30, 2022. The Settlement created a binding obligation to release the funds from escrow upon entry of consent judgments and establishment of a settlement administrator. 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 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 was brought by a group of individual plaintiffs in Glynn County, Georgia Superior Court. These plaintiffs seek to recover for damages allegedly arising from their family members’ abuse of prescription opioids. Poppell v. Cardinal Health, Inc. et al. , CE19-00472. Although trial began in this case on July 18, 2022, the court declared a mistrial on July 22, 2022; a new trial has been set for January 23, 2023. The Company has not concluded a loss is probable in any of these matters; nor is any possible loss or range of loss reasonably estimable. Because of the many uncertainties associated with the remaining 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 12, 2018, the Company received a purported class action complaint in the United States District Court for the Northern District of California, alleging that McKesson and two of its former officers, CEO John Hammergren and CFO James Beer, violated the Securities Exchange Act of 1934 by reporting profits and revenues from 2013 until early 2017 that were false and misleading, due to an alleged undisclosed conspiracy to fix the prices of generic drugs. Evanston Police Pension Fund v. McKesson Corporation , No. 3:18-06525. The complaint seeks relief including damages, attorney fees, and costs in unspecified amounts. On February 8, 2019, the court appointed the Pension Trust Fund for Operating Engineers as the lead plaintiff. On April 10, 2019, the lead plaintiff filed an amended complaint that added insider trading allegations against defendant Hammergren. On April 8, 2021, the court granted plaintiff’s motion for class certification. On October 21, 2021, the court granted defendants’ motion for partial summary judgment and shortened the class period. On December 29, 2021, plaintiff filed an amended complaint, which defendants have moved to dismiss. In October 2022, the parties reached an agreement in principle to settle this class action lawsuit for an amount covered in full by the Company’s insurance policy. The settlement is subject to, among other things, approval by the court. This settlement does not include any admission of liability, and defendants expressly den y wrongdoing. Accordingly, the Company’s estimated probable loss, entirely offset by probable loss recovery from the Company’s insurers, is $141 million, both of which have been recognized in the Condensed Consolidated Balance Sheet as of September 30, 2022 within “Other accrued liabilities” and “Prepaid expenses and other.” On December 9, 2019, the United States District Court for the Eastern District of New York ordered the unsealing of a complaint filed by a relator, purportedly on behalf of the United States, 30 states, the District of Columbia, and two cities, against US Oncology, Inc. alleging that from 2001 through 2010 the Company repackaged and sold single-dose syringes of oncology medications in a manner that violated the federal False Claims Act and various state and local false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Omni Healthcare, Inc. v. US Oncology, Inc. , 19-cv-05125. The United States and the named states declined to intervene in the case. On July 21, 2022, US Oncology, Inc.’s motion to dismiss was granted without prejudice. Relator filed an amended complaint on August 19, 2022. The related case against other Company defendants remains pending, United States ex rel. Omni Healthcare Inc. v. McKesson Corporation, et al. , 12-CV-06440 (NG). 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. IV. Antitrust Settlements In October 2022, the Company received proceeds of $129 million related to its share of an antitrust settlement. A lawsuit was filed against a brand manufacturer alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. The Company was not a named party to the litigation but was a member of the class of those who purchased directly from the pharmaceutical manufacturer. The Company will recognize a gain in that amount within "Cost of sales" in the Condensed Consolidated Statement of Operations in the third quarter of fiscal 2023 related to the settlement. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Sep. 30, 2022 | |
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 participate equally in any dividends declared by the Company’s Board of Directors (the “Board”). In July 2022, the quarterly dividend was raised from $0.47 to $0.54 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. The ASR programs discussed below were designed to comply with Rule 10b5-1(c). In May 2022, 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 3.1 million shares at an average price per share of $321.05. The Company received 2.6 million shares as the initial share settlement, and in August 2022, the Company received an additional 0.5 million shares upon the completion of this ASR program. In February 2022, the Company entered into an ASR program with a third-party financial institution to repurchase $1.5 billion of the Company’s common stock. The total number of shares repurchased under this ASR program was 5.1 million shares at an average price per share of $295.16. The Company received 4.8 million shares as the initial share settlement during the fourth quarter of fiscal 2022, and in May 2022, the Company received an additional 0.3 million shares upon the completion of this ASR program. 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 and six months ended September 30, 2022, the Company repurchased 1.5 million of the Company’s shares of common stock for $524 million through open market transactions at an average price per share of $355.75, of which $40 million was accrued within “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheets for share repurchases that were executed in late September 2022 and settled in early October 2022. During the three and six months ended September 30, 2021, the Company repurchased 1.4 million of the Company’s shares of common stock for $280 million through open market transactions at an average price per share of $203.20, of which $16 million was accrued within “Other accrued liabilities” in the Company’s Condensed Consolidated Balance Sheets for the period ended September 30, 2021 for share repurchases that were executed in late September 2021 and settled in early October 2021. In July 2022, 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 September 30, 2022 was $5.8 billion. Accumulated Other Comprehensive Loss Information regarding changes in accumulated other comprehensive loss, including noncontrolling interests, by components for the three and six months ended September 30, 2022 are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at June 30, 2022 $ (997) $ 38 $ 45 $ (34) $ (948) Other comprehensive income (loss) before reclassifications (280) 71 ⁽²⁾ 18 2 (189) Amounts reclassified to earnings and other 17 — — — 17 Other comprehensive income (loss) (263) 71 18 2 (172) Less: amounts attributable to noncontrolling interests (6) — — — (6) Other comprehensive income (loss) attributable to McKesson (257) 71 18 2 (166) Balance at September 30, 2022 $ (1,254) $ 109 $ 63 $ (32) $ (1,114) (1) Primarily results 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 for the three months ended September 30, 2022 include gains of $75 million related to net investment hedges from Euro-denominated notes and gains of $21 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $25 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2022 $ (1,504) $ 10 $ 27 $ (67) $ (1,534) Other comprehensive income (loss) before reclassifications (456) 116 ⁽²⁾ 36 14 (290) Amounts reclassified to earnings and other (3) 747 (17) — 24 754 Other comprehensive income 291 99 36 38 464 Less: amounts attributable to noncontrolling interests 41 — — 3 44 Other comprehensive income attributable to McKesson 250 99 36 35 420 Balance at September 30, 2022 $ (1,254) $ 109 $ 63 $ (32) $ (1,114) (1) Primarily results 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 for the six months ended September 30, 2022 include gains of $139 million related to net investment hedges from Euro-denominated notes and gains of $33 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $56 million. (3) Primarily includes adjustments for amounts related to the sale of the U.K. disposal group in April 2022, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included in the fiscal 2022 calculation of charges to remeasure the assets and liabilities to fair value less costs to sell recorded within “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations. Information regarding changes in accumulated other comprehensive loss, including noncontrolling interests and redeemable noncontrolling interests, by components for the three and six months ended September 30, 2021 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 on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at June 30, 2021 $ (1,477) $ (57) $ 13 $ (106) $ (1,627) Other comprehensive income (loss) before reclassifications (81) 32 ⁽²⁾ 3 1 (45) Amounts reclassified to earnings and other 1 — 5 1 7 Other comprehensive income (loss) (80) 32 8 2 (38) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests — — — — — Other comprehensive income (loss) attributable to McKesson (80) 32 8 2 (38) Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) (1) Primarily results 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 for the three months ended September 30, 2021 include gains of $33 million related to net investment hedges from Euro-denominated notes and gains of $10 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $11 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized 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) 5 ⁽²⁾ 3 6 (33) Amounts reclassified to earnings and other 18 — 5 (2) 21 Other comprehensive income (loss) (29) 5 8 4 (12) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 9 (6) — — 3 Other comprehensive income (loss) attributable to McKesson (38) 11 8 4 (15) Exercise of put right by noncontrolling shareholders of McKesson Europe AG (158) — — (12) (170) Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) (1) Primarily results 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 for the six months ended September 30, 2021 include gains of $11 million related to net investment hedges from Euro-denominated notes and gains of $5 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $5 million. |
Segments of Business
Segments of Business | 6 Months Ended |
Sep. 30, 2022 | |
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 include the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. The Company evaluates the performance of its operating segments on a number of measures, including revenues and operating profit (loss) before interest expense and income taxes. 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 serves McKesson’s biopharma and life sciences partners and patients to address medication challenges for patients throughout their journeys. RxTS works across healthcare to connect pharmacies, providers, payers, and biopharma companies to deliver innovative access, affordability, and adherence solutions designed to benefit stakeholders and help people get the medicine they need to live healthier lives. RxTS also offers third-party logistics and wholesale distribution support across various therapeutic categories and temperature ranges to biopharma customers throughout the product lifecycle. 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 285,000 national brand medical-surgical products as well as McKesson’s own line of high-quality products through a network of distribution centers within the U.S. 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 nine European countries where it owns, partners, or franchises with retail pharmacies and operates through two businesses: Pharmaceutical Distribution and Retail Pharmacy. The Company’s Canadian operations deliver vital medicines, supplies, and information technology solutions throughout Canada and includes Rexall Health retail pharmacies. In the second quarter of fiscal 2022, the Company entered into an agreement to sell the E.U. disposal group which closed on October 31, 2022. International segment assets at September 30, 2022 were $9.6 billion, a decrease from the end of fiscal 2022 primarily due to the completed the sale of the U.K. disposal group in April 2022 and unfavorable effects of foreign currency exchange fluctuations. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” 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 September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Segment revenues (1) U.S. Pharmaceutical $ 60,059 $ 53,411 $ 117,006 $ 103,430 Prescription Technology Solutions 1,018 932 2,084 1,813 Medical-Surgical Solutions 2,843 3,124 5,435 5,652 International 6,237 9,109 12,786 18,355 Total revenues $ 70,157 $ 66,576 $ 137,311 $ 129,250 Segment operating profit (loss) (2) U.S. Pharmaceutical (3) $ 896 $ 760 $ 1,592 $ 1,442 Prescription Technology Solutions 120 128 264 232 Medical-Surgical Solutions (4) 299 296 555 371 International (5) (37) (146) (43) (93) Subtotal 1,278 1,038 2,368 1,952 Corporate expenses, net (6) 21 (360) (18) (663) Loss on debt extinguishment (7) — (191) — (191) Interest expense (55) (45) (100) (94) Income from continuing operations before income taxes $ 1,244 $ 442 $ 2,250 $ 1,004 (1) Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 37% of the RxTS segment’s total revenues, less than 3% 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 derived in the U.S. (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 includes the following: • a gain of $142 million for the three and six months ended September 30, 2022 related to the exit of one of the Company’s investments in equity securities in July 2022 for proceeds of $179 million, which is reflected within “Other income, net” in the Company’s Condensed Consolidated Statements of Operations; • credits related to the last-in, first-out (“LIFO”) method of accounting for inventories of $23 million for each of the three months ended September 30, 2022 and 2021, and $36 million and $46 million for the six months ended September 30, 2022 and 2021, respectively; and • cash receipts for the Company’s share of antitrust legal settlements of $34 million and $46 million for the three and six months ended September 30, 2021, respectively. (4) The Company’s Medical-Surgical Solutions segment’s operating profit for the six months ended September 30, 2021 includes $164 million of inventory charges on certain personal protective equipment and other related products. (5) The Company’s International segment’s operating loss includes the following: • charges of $143 million and $237 million for the three and six months ended September 30, 2022, respectively, and charges of $342 million for the three and six months ended September 30, 2021, to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell and, in fiscal 2022, 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, “Business Acquisitions and Divestitures;” and • a gain of $59 million for the three and six months ended September 30, 2021 related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. (6) Corporate expenses, net includes the following: • gains of $166 million and $272 million for the three and six months ended September 30, 2022, respectively, and charges of $149 million for the three and six months ended September 30, 2021, 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, “Business Acquisitions and Divestitures;” • charges of $112 million and $186 million for the three and six months ended September 30, 2021, respectively, related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities;” • charges of $9 million and $36 million for the three months ended September 30, 2022 and 2021, respectively, and charges of $28 million and $71 million for the six months ended September 30, 2022 and 2021, respectively, of opioid-related costs, primarily litigation expenses; • restructuring charges of $19 million and $81 million for the three and six months ended September 30, 2021, respectively, primarily due to the transition to a partial remote work model for certain employees; and • net gains (losses) of $(3) million and $97 million for three months ended September 30, 2022 and 2021, respectively, and $(25) million and $104 million for the six months ended September 30, 2022 and 2021, respectively, associated with certain of the Company’s equity investments. (7) Loss on debt extinguishment for the three and six months ended September 30, 2021 consists of a charge of $191 million 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) | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The condensed consolidated financial statements and accompanying notes are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“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. 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. |
Fiscal Period | Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. |
Reclassification | Reclassifications: Certain prior period amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires the Company to 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 could differ from those estimated amounts. The Company continues to evaluate the ongoing impacts, including the economic consequences, of the pandemic caused by the SARS-CoV-2 coronavirus (“COVID-19”), and therefore 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 results of operations, financial position, and cash flows of McKesson for the interim periods presented. |
Results of Operations | The results of operations for the three and six months ended September 30, 2022 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, 2022, previously filed with the SEC on May 9, 2022 (“2022 Annual Report”). |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements There were no adopted accounting standards during the first half of fiscal 2023 that had a material impact to the Company’s results of operations, financial position, cash flows, or notes to the financial statements upon their adoption. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
Held for Sale | Assets and liabilities 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. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was classified as held for sale. |
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 18 to the Company’s 2022 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 Statements of Operations consist of estimated loss contingencies related to opioid-related litigation matters. |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
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 Sheets are as follows: (In millions) September 30, 2022 March 31, 2022 Assets Current assets Receivables, net $ 1,175 $ 1,322 Inventories, net 810 809 Prepaid expenses and other 68 72 Property, plant, and equipment, net 278 304 Operating lease right-of-use assets 206 224 Intangible assets, net 236 267 Other non-current assets 297 328 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1) (245) (302) Total assets held for sale $ 2,825 $ 3,024 Liabilities Current liabilities Drafts and accounts payable $ 1,258 $ 1,826 Current portion of long-term debt 4 4 Current portion of operating lease liabilities 28 33 Other accrued liabilities 360 473 Long-term debt 10 11 Long-term deferred tax liabilities 64 55 Long-term operating lease liabilities 153 180 Other non-current liabilities 114 138 Total liabilities held for sale $ 1,991 $ 2,720 (1) Excludes charges in fiscal 2022 related to the impairment of individual assets, including a $113 million impairment of internally developed software recorded directly against the gross value of the assets impacted. (In millions) March 31, 2022 Assets Current assets Cash and cash equivalents $ 531 Receivables, net 931 Inventories, net 563 Prepaid expenses and other 50 Property, plant, and equipment, net 91 Operating lease right-of-use assets 270 Intangible assets, net 117 Other non-current assets 88 Remeasurement of assets of businesses held for sale to fair value less costs to sell (1,159) Total assets held for sale $ 1,482 Liabilities Current liabilities Drafts and accounts payable $ 1,593 Current portion of operating lease liabilities 50 Other accrued liabilities 59 Long-term deferred tax liabilities 16 Long-term operating lease liabilities 262 Other non-current liabilities 38 Total liabilities held for sale $ 2,018 |
Restructuring, Impairment, an_2
Restructuring, Impairment, and Related Charges, Net (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Related Costs | Restructuring, impairment, and related charges, net, for the three months ended September 30, 2022 and 2021 consisted of the following: Three Months Ended September 30, 2022 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ — $ — $ — $ 2 $ (5) $ (3) Exit and other-related costs (1) — 1 1 6 14 22 Asset impairments and accelerated depreciation 3 6 — 1 1 11 Total $ 3 $ 7 $ 1 $ 9 $ 10 $ 30 (1) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Three Months Ended September 30, 2021 (In millions) U.S. Pharmaceutical (1) Prescription Technology Solutions Medical-Surgical Solutions International Corporate (1) Total Severance and employee-related costs, net $ — $ (1) $ 1 $ (2) $ 1 $ (1) Exit and other-related costs (2) 2 1 — 1 6 10 Asset impairments and accelerated depreciation 8 — 1 2 12 23 Total $ 10 $ — $ 2 $ 1 $ 19 $ 32 (1) Includes costs related to the transition to a partial remote work model described above. (2) Exit and other-related costs 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, net, for the six months ended September 30, 2022 and 2021 consisted of the following: Six Months Ended September 30, 2022 (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Severance and employee-related costs, net $ 3 $ — $ — $ 2 $ (6) $ (1) Exit and other-related costs (1) 1 3 2 8 29 43 Asset impairments and accelerated depreciation 3 11 — 1 (4) 11 Total $ 7 $ 14 $ 2 $ 11 $ 19 $ 53 (1) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Six Months Ended September 30, 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 $ 1 $ 13 Exit and other-related costs (3) 4 2 2 15 27 50 Asset impairments and accelerated depreciation 16 17 5 36 53 127 Total $ 22 $ 18 $ 8 $ 61 $ 81 $ 190 (1) Includes costs related to the transition to a partial remote work model described above. (2) Includes costs related to the transition to a partial remote work model described above, U.K. operating model and cost optimization efforts, and costs for optimization programs in Canada. (3) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. |
Schedule of Restructuring and Asset Impairment Charges | The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the six months ended September 30, 2022: (In millions) U.S. Pharmaceutical Prescription Technology Solutions Medical-Surgical Solutions International Corporate Total Balance, March 31, 2022 (1) $ 11 $ 3 $ 1 $ 56 $ 59 $ 130 Restructuring, impairment, and related charges, net 7 14 2 11 19 53 Non-cash charges (3) (11) — (1) 4 (11) Cash payments (3) (3) (2) (6) (25) (39) Other (2) (1) — — (24) 1 (24) Balance, September 30, 2022 (3) $ 11 $ 3 $ 1 $ 36 $ 58 $ 109 (1) As of March 31, 2022, the total reserve balance was $130 million, of which $58 million was recorded in “Other accrued liabilities,” $36 million was recorded in “Liabilities held for sale,” and $36 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. (2) Other primarily includes cumulative translation adjustments and transfers to certain other liabilities. For the Company’s International segment, other also includes a reduction of the liability related to the sale of the U.K. disposal group in April 2022, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” (3) As of September 30, 2022, the total reserve balance was $109 million, of which $60 million was recorded in “Other accrued liabilities,” $22 million was recorded in “Liabilities held for sale,” and $27 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense related to continuing operations was as follows: Three Months Ended September 30, Six Months Ended September 30, (Dollars in millions) 2022 2021 2022 2021 Income tax expense $ 271 $ 132 $ 470 $ 158 Reported income tax rate 21.8 % 29.9 % 20.9 % 15.7 % |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests and Noncontrolling Interests (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Changes in Redeemable Noncontrolling Interests and Noncontrolling Interests | Changes in noncontrolling interests for the three and six months ended September 30, 2022 were as follows: (In millions) Noncontrolling Interests Balance, June 30, 2022 $ 532 Net income attributable to noncontrolling interests 41 Other comprehensive loss (6) Payments to noncontrolling interests (41) Reclassification of recurring compensation to other accrued liabilities (2) Other (6) Balance, September 30, 2022 $ 518 (In millions) Noncontrolling Interests Balance, March 31, 2022 $ 480 Net income attributable to noncontrolling interests 82 Other comprehensive income 44 Payments to noncontrolling interests (77) Reclassification of recurring compensation to other accrued liabilities (4) Other (7) Balance, September 30, 2022 $ 518 Changes in redeemable noncontrolling interests and noncontrolling interests for the three and six months ended September 30, 2021 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, June 30, 2021 $ 484 $ 7 Net income attributable to noncontrolling interests 43 — Payments to noncontrolling interests (40) — Reclassification of recurring compensation to other accrued liabilities (2) — Other (1) (7) Balance, September 30, 2021 $ 484 $ — (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2021 $ 196 $ 1,271 Net income attributable to noncontrolling interests 82 8 Other comprehensive income — 3 Payments to noncontrolling interests (79) — Reclassification of recurring compensation to other accrued liabilities (2) (8) Exercises of Put Right — (983) Reclassification of McKesson Europe redeemable noncontrolling interests 287 (287) Other — (4) Balance, September 30, 2021 $ 484 $ — |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computations for basic and diluted earnings per common share | The computations for basic and diluted earnings per common share are as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions, except per share amounts) 2022 2021 2022 2021 Income from continuing operations $ 973 $ 310 $ 1,780 $ 846 Net income attributable to noncontrolling interests (41) (43) (82) (90) Income from continuing operations attributable to McKesson Corporation 932 267 1,698 756 Loss from discontinued operations, net of tax (6) — (4) (3) Net income attributable to McKesson Corporation $ 926 $ 267 $ 1,694 $ 753 Weighted-average common shares outstanding: Basic 143.1 154.1 143.7 155.1 Effect of dilutive securities: Stock options 0.2 0.2 0.3 0.2 Restricted stock units (1) 0.8 1.5 1.0 1.6 Diluted 144.1 155.8 145.0 156.9 Earnings (loss) per common share attributable to McKesson Corporation: (2) Diluted Continuing operations $ 6.46 $ 1.71 $ 11.71 $ 4.82 Discontinued operations (0.04) — (0.03) (0.02) Total $ 6.42 $ 1.71 $ 11.68 $ 4.80 Basic Continuing operations $ 6.51 $ 1.73 $ 11.81 $ 4.87 Discontinued operations (0.04) — (0.02) (0.02) Total $ 6.47 $ 1.73 $ 11.79 $ 4.85 (1) Includes dilutive effect from 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) | 6 Months Ended |
Sep. 30, 2022 | |
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 Total Balance, March 31, 2022 $ 3,923 $ 1,542 $ 2,453 $ 1,533 $ 9,451 Goodwill acquired 11 — — 1 12 Foreign currency translation adjustments, net (72) — — (150) (222) Other adjustments (2) — — — (2) Balance, September 30, 2022 $ 3,860 $ 1,542 $ 2,453 $ 1,384 $ 9,239 |
Schedule of information regarding intangible assets | Information regarding intangible assets is as follows: September 30, 2022 March 31, 2022 (Dollars in millions) Weighted- Gross Accumulated Net Gross Accumulated Net Customer relationships 12 $ 2,710 $ (1,703) $ 1,007 $ 2,777 $ (1,691) $ 1,086 Service agreements 9 1,063 (591) 472 1,085 (573) 512 Trademarks and trade names 11 765 (402) 363 819 (386) 433 Technology 3 132 (120) 12 128 (116) 12 Other 9 190 (172) 18 187 (171) 16 Total $ 4,860 $ (2,988) $ 1,872 $ 4,996 $ (2,937) $ 2,059 |
Debt and Financing Activities (
Debt and Financing Activities (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: (In millions) September 30, 2022 March 31, 2022 U.S. Dollar notes (1) (2) 2.70% Notes due December 15, 2022 $ 400 $ 400 2.85% Notes due March 15, 2023 360 360 3.80% Notes due March 15, 2024 918 918 0.90% Notes due December 3, 2025 500 500 1.30% Notes due August 15, 2026 498 498 7.65% Debentures due March 1, 2027 150 150 3.95% Notes due February 16, 2028 343 343 4.75% Notes due May 30, 2029 196 196 6.00% Notes due March 1, 2041 217 217 4.88% Notes due March 15, 2044 255 255 Foreign currency notes (1) (3) 1.50% Euro Notes due November 17, 2025 586 662 1.63% Euro Notes due October 30, 2026 490 554 3.13% Sterling Notes due February 17, 2029 503 582 Lease and other obligations 197 244 Total debt 5,613 5,879 Less: Current portion 800 799 Total long-term debt $ 4,813 $ 5,080 (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. |
Hedging Activities (Tables)
Hedging Activities (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Foreign Currency Gains and (Losses) from Non-Derivative Instruments | Foreign currency gains (losses) from non-derivative instruments included in other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Non-derivatives designated as net investment hedges: (1) Euro-denominated notes $ 75 $ 33 $ 139 $ 11 (1) There was no ineffectiveness in these hedges for the three and six months ended September 30, 2022 and 2021. |
Schedule of Notional Amounts of Outstanding Derivative Positions | At September 30, 2022 and March 31, 2022, the notional amounts of the Company’s outstanding derivatives were as follows: September 30, 2022 March 31, 2022 (In millions) Currency Maturity Date Notional Derivatives designated as net investment hedges: (1) Cross-currency swaps (2) CAD Nov-24 $ 500 $ 500 Derivatives designated as fair value hedges: (1) Cross-currency swaps (3) GBP Feb-23 £ 450 £ 450 Floating interest rate swaps (4) USD Aug-27 to Sep-29 $ 750 $ — Derivatives designated as cash flow hedges: (1) Cross-currency swaps (2) CAD Jul-22 to Jan-24 $ 1,532 $ 1,678 Fixed interest rate swaps (5) USD Mar-23 $ 500 $ 500 (1) There was no ineffectiveness in these hedges for the three and six months ended September 30, 2022 and 2021. (2) The Company agreed 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. (3) 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. (4) The Company entered into fixed-to-floating interest rate swaps to hedge the changes in fair value caused by fluctuations in the benchmark interest rates. (5) The Company entered into agreements with financial institutions to lock into the fixed benchmark interest rates for future bond issuance. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Gains (losses) of derivatives included in other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Derivatives designated as net investment hedges: Cross-currency swaps $ 21 $ 10 $ 33 $ 5 Derivatives designated as cash flow hedges: Cross-currency swaps $ (3) $ 1 $ (5) $ (1) Fixed interest rate swaps 28 10 55 12 |
Schedule of Fair Value of Derivatives | Information regarding the fair value of derivatives on a gross basis were as follows: Balance Sheet September 30, 2022 March 31, 2022 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 $ 43 $ 62 $ 1,417 $ 30 $ 39 $ 1,537 Cross-currency swaps (non-current) Other non-current assets/liabilities 26 — 679 — 36 679 Fixed interest rate swaps (current) Prepaid expenses and other 85 — 500 31 — 500 Floating interest rate swaps (non-current) Other non-current liabilities — 34 750 — — — Total $ 154 $ 96 $ 61 $ 75 |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | Gains (losses) of derivatives included in other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income were as follows: Three Months Ended September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Derivatives designated as net investment hedges: Cross-currency swaps $ 21 $ 10 $ 33 $ 5 Derivatives designated as cash flow hedges: Cross-currency swaps $ (3) $ 1 $ (5) $ (1) Fixed interest rate swaps 28 10 55 12 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
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: September 30, 2022 March 31, 2022 (In millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current maturities $ 5,613 $ 5,321 $ 5,879 $ 5,999 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Estimated Accrual Liability | The Company’s estimated accrued liability for the opioid-related claims of governmental entities is as follows: (In millions) September 30, 2022 March 31, 2022 Current litigation liabilities (1) $ 703 $ 1,046 Long-term litigation liabilities 6,644 7,220 Total litigation liabilities $ 7,347 $ 8,266 (1) These amounts as of September 30, 2022 and March 31, 2022, recorded in “Other accrued liabilities” in the Condensed Consolidated Balance Sheets, are the amounts estimated to be paid within the next twelve months following each respective period end date. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of information regarding changes in accumulated other comprehensive income (loss), net of tax, by component | Information regarding changes in accumulated other comprehensive loss, including noncontrolling interests, by components for the three and six months ended September 30, 2022 are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at June 30, 2022 $ (997) $ 38 $ 45 $ (34) $ (948) Other comprehensive income (loss) before reclassifications (280) 71 ⁽²⁾ 18 2 (189) Amounts reclassified to earnings and other 17 — — — 17 Other comprehensive income (loss) (263) 71 18 2 (172) Less: amounts attributable to noncontrolling interests (6) — — — (6) Other comprehensive income (loss) attributable to McKesson (257) 71 18 2 (166) Balance at September 30, 2022 $ (1,254) $ 109 $ 63 $ (32) $ (1,114) (1) Primarily results 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 for the three months ended September 30, 2022 include gains of $75 million related to net investment hedges from Euro-denominated notes and gains of $21 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $25 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at March 31, 2022 $ (1,504) $ 10 $ 27 $ (67) $ (1,534) Other comprehensive income (loss) before reclassifications (456) 116 ⁽²⁾ 36 14 (290) Amounts reclassified to earnings and other (3) 747 (17) — 24 754 Other comprehensive income 291 99 36 38 464 Less: amounts attributable to noncontrolling interests 41 — — 3 44 Other comprehensive income attributable to McKesson 250 99 36 35 420 Balance at September 30, 2022 $ (1,254) $ 109 $ 63 $ (32) $ (1,114) (1) Primarily results 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 for the six months ended September 30, 2022 include gains of $139 million related to net investment hedges from Euro-denominated notes and gains of $33 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $56 million. (3) Primarily includes adjustments for amounts related to the sale of the U.K. disposal group in April 2022, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included in the fiscal 2022 calculation of charges to remeasure the assets and liabilities to fair value less costs to sell recorded within “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations. Information regarding changes in accumulated other comprehensive loss, including noncontrolling interests and redeemable noncontrolling interests, by components for the three and six months ended September 30, 2021 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 on Cash Flow Hedges, Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax Total Accumulated Other Comprehensive Loss Balance at June 30, 2021 $ (1,477) $ (57) $ 13 $ (106) $ (1,627) Other comprehensive income (loss) before reclassifications (81) 32 ⁽²⁾ 3 1 (45) Amounts reclassified to earnings and other 1 — 5 1 7 Other comprehensive income (loss) (80) 32 8 2 (38) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests — — — — — Other comprehensive income (loss) attributable to McKesson (80) 32 8 2 (38) Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) (1) Primarily results 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 for the three months ended September 30, 2021 include gains of $33 million related to net investment hedges from Euro-denominated notes and gains of $10 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $11 million. Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax (1) Unrealized Gains (Losses) on Net Investment Hedges, Unrealized Gains on Cash Flow Hedges, Unrealized 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) 5 ⁽²⁾ 3 6 (33) Amounts reclassified to earnings and other 18 — 5 (2) 21 Other comprehensive income (loss) (29) 5 8 4 (12) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 9 (6) — — 3 Other comprehensive income (loss) attributable to McKesson (38) 11 8 4 (15) Exercise of put right by noncontrolling shareholders of McKesson Europe AG (158) — — (12) (170) Balance at September 30, 2021 $ (1,557) $ (25) $ 21 $ (104) $ (1,665) (1) Primarily results 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 for the six months ended September 30, 2021 include gains of $11 million related to net investment hedges from Euro-denominated notes and gains of $5 million related to net investment hedges from cross-currency swaps. These amounts are net of income tax expense of $5 million. |
Segments of Business (Tables)
Segments of Business (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
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 September 30, Six Months Ended September 30, (In millions) 2022 2021 2022 2021 Segment revenues (1) U.S. Pharmaceutical $ 60,059 $ 53,411 $ 117,006 $ 103,430 Prescription Technology Solutions 1,018 932 2,084 1,813 Medical-Surgical Solutions 2,843 3,124 5,435 5,652 International 6,237 9,109 12,786 18,355 Total revenues $ 70,157 $ 66,576 $ 137,311 $ 129,250 Segment operating profit (loss) (2) U.S. Pharmaceutical (3) $ 896 $ 760 $ 1,592 $ 1,442 Prescription Technology Solutions 120 128 264 232 Medical-Surgical Solutions (4) 299 296 555 371 International (5) (37) (146) (43) (93) Subtotal 1,278 1,038 2,368 1,952 Corporate expenses, net (6) 21 (360) (18) (663) Loss on debt extinguishment (7) — (191) — (191) Interest expense (55) (45) (100) (94) Income from continuing operations before income taxes $ 1,244 $ 442 $ 2,250 $ 1,004 (1) Revenues from services on a disaggregated basis represent less than 1% of the U.S. Pharmaceutical segment’s total revenues, less than 37% of the RxTS segment’s total revenues, less than 3% 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 derived in the U.S. (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 includes the following: • a gain of $142 million for the three and six months ended September 30, 2022 related to the exit of one of the Company’s investments in equity securities in July 2022 for proceeds of $179 million, which is reflected within “Other income, net” in the Company’s Condensed Consolidated Statements of Operations; • credits related to the last-in, first-out (“LIFO”) method of accounting for inventories of $23 million for each of the three months ended September 30, 2022 and 2021, and $36 million and $46 million for the six months ended September 30, 2022 and 2021, respectively; and • cash receipts for the Company’s share of antitrust legal settlements of $34 million and $46 million for the three and six months ended September 30, 2021, respectively. (4) The Company’s Medical-Surgical Solutions segment’s operating profit for the six months ended September 30, 2021 includes $164 million of inventory charges on certain personal protective equipment and other related products. (5) The Company’s International segment’s operating loss includes the following: • charges of $143 million and $237 million for the three and six months ended September 30, 2022, respectively, and charges of $342 million for the three and six months ended September 30, 2021, to remeasure the assets and liabilities of the E.U. disposal group to fair value less costs to sell and, in fiscal 2022, 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, “Business Acquisitions and Divestitures;” and • a gain of $59 million for the three and six months ended September 30, 2021 related to the sale of the Company’s Canadian health benefit claims management and plan administrative services business. (6) Corporate expenses, net includes the following: • gains of $166 million and $272 million for the three and six months ended September 30, 2022, respectively, and charges of $149 million for the three and six months ended September 30, 2021, 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, “Business Acquisitions and Divestitures;” • charges of $112 million and $186 million for the three and six months ended September 30, 2021, respectively, related to the Company’s estimated liability for opioid-related claims, as discussed in more detail in Financial Note 12, “Commitments and Contingent Liabilities;” • charges of $9 million and $36 million for the three months ended September 30, 2022 and 2021, respectively, and charges of $28 million and $71 million for the six months ended September 30, 2022 and 2021, respectively, of opioid-related costs, primarily litigation expenses; • restructuring charges of $19 million and $81 million for the three and six months ended September 30, 2021, respectively, primarily due to the transition to a partial remote work model for certain employees; and • net gains (losses) of $(3) million and $97 million for three months ended September 30, 2022 and 2021, respectively, and $(25) million and $104 million for the six months ended September 30, 2022 and 2021, respectively, associated with certain of the Company’s equity investments. (7) Loss on debt extinguishment for the three and six months ended September 30, 2021 consists of a charge of $191 million 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) | 6 Months Ended |
Sep. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Business Acquisitions and Div_3
Business Acquisitions and Divestitures - Narrative (Details) £ in Millions, $ in Millions, € in Billions | 3 Months Ended | 6 Months Ended | |||||||||
Nov. 01, 2022 USD ($) | Oct. 31, 2022 USD ($) | Apr. 06, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Apr. 06, 2022 GBP (£) | Mar. 31, 2022 USD ($) | Jul. 05, 2021 USD ($) | Jul. 05, 2021 EUR (€) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | $ 2,825 | $ 2,825 | $ 4,516 | ||||||||
Liabilities held for sale | 1,991 | 1,991 | 4,741 | ||||||||
Loss (gain) to remeasure disposal group to fair value | (35) | $ 470 | |||||||||
McKesson and HCA Healthcare, Joint Oncology Research Business | U.S. Pharmaceutical | Subsequent Event | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash payment to acquire business | $ 173 | ||||||||||
Business acquisition, percentage of controlling interest in combined business | 51% | ||||||||||
Rx Savings Solutions, LLC | RxTs Segment | Subsequent Event | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash payment to acquire business | $ 600 | ||||||||||
Contingent consideration | $ 275 | ||||||||||
Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Assets held for sale | 2,800 | 2,800 | 4,500 | ||||||||
Liabilities held for sale | 2,000 | 2,000 | 4,700 | ||||||||
U.K. Disposal Group (Disposal Group) | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Divested net assets | 1,482 | ||||||||||
U.K. Disposal Group (Disposal Group) | Disposed of by sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gross purchase price | $ 144 | £ 110 | |||||||||
Proceeds from collection of notes receivable | 118 | ||||||||||
E.U. Businesses (Disposal Group) | Held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gross purchase price | $ 1,200 | € 1.2 | |||||||||
Loss (gain) to remeasure disposal group to fair value | (23) | $ 491 | (35) | $ 491 | |||||||
Accumulated other comprehensive loss in charge for remeasurement to fair value | 226 | 226 | |||||||||
Divested net assets | $ 2,825 | $ 2,825 | $ 3,024 | ||||||||
E.U. Businesses (Disposal Group) | Disposed of by sale | Subsequent Event | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Cash proceeds from divestiture | $ 892 | ||||||||||
International Segment | Disposed of by sale | Aurelius Elephant Limited | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Divested net assets | 615 | ||||||||||
Accumulated other comprehensive loss adjustment | $ 731 |
Business Acquisitions and Div_4
Business Acquisitions and Divestitures - Assets and Liabilities Held for Sale (Details) - Held-for-sale - USD ($) $ in Millions | 6 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2022 | Mar. 31, 2022 | |
U.K. Disposal Group (Disposal Group) | |||
Assets | |||
Cash and cash equivalents | $ 531 | ||
Receivables, net | 931 | ||
Inventories, net | 563 | ||
Prepaid expenses and other | 50 | ||
Property, plant, and equipment, net | 91 | ||
Operating lease right-of-use assets | 270 | ||
Intangible assets, net | 117 | ||
Other non-current assets | 88 | ||
Remeasurement of assets of business held for sale to fair value less costs to sell | (1,159) | ||
Assets held for sale | 1,482 | ||
Liabilities | |||
Drafts and accounts payable | 1,593 | ||
Current portion of operating lease liabilities | 50 | ||
Other accrued liabilities | 59 | ||
Long-term deferred tax liabilities | 16 | ||
Long-term operating lease liabilities | 262 | ||
Other non-current liabilities | 38 | ||
Liabilities held for sale | 2,018 | ||
E.U. Businesses (Disposal Group) | |||
Assets | |||
Receivables, net | $ 1,175 | 1,322 | |
Inventories, net | 810 | 809 | |
Prepaid expenses and other | 68 | 72 | |
Property, plant, and equipment, net | 278 | 304 | |
Operating lease right-of-use assets | 206 | 224 | |
Intangible assets, net | 236 | 267 | |
Other non-current assets | 297 | 328 | |
Remeasurement of assets of business held for sale to fair value less costs to sell | (245) | (302) | |
Assets held for sale | 2,825 | 3,024 | |
Liabilities | |||
Drafts and accounts payable | 1,258 | 1,826 | |
Current portion of long-term debt | 4 | 4 | |
Current portion of operating lease liabilities | 28 | 33 | |
Other accrued liabilities | 360 | 473 | |
Long-term debt | 10 | 11 | |
Long-term deferred tax liabilities | 64 | 55 | |
Long-term operating lease liabilities | 153 | 180 | |
Other non-current liabilities | 114 | 138 | |
Liabilities held for sale | $ 1,991 | $ 2,720 | |
Internally developed software | |||
Liabilities | |||
Impairment charge | $ 113 |
Restructuring, Impairment, an_3
Restructuring, Impairment, and Related Charges, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment, and related charges, net | $ 30 | $ 32 | $ 53 | $ 190 |
Restructuring, impairment, and related charges | $ 30 | 32 | $ 53 | 190 |
Restructuring Plan - Remote Work Transitioning | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, impairment, and related charges | $ 15 | $ 110 |
Restructuring, Impairment, an_4
Restructuring, Impairment, and Related Charges, Net - Summary of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | $ (3) | $ (1) | $ (1) | $ 13 |
Exit and other-related costs | 22 | 10 | 43 | 50 |
Asset impairments and accelerated depreciation | 11 | 23 | 11 | 127 |
Total | 30 | 32 | 53 | 190 |
Operating Segments | U.S. Pharmaceutical | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | 0 | 3 | 2 |
Exit and other-related costs | 0 | 2 | 1 | 4 |
Asset impairments and accelerated depreciation | 3 | 8 | 3 | 16 |
Total | 3 | 10 | 7 | 22 |
Operating Segments | Prescription Technology Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | (1) | 0 | (1) |
Exit and other-related costs | 1 | 1 | 3 | 2 |
Asset impairments and accelerated depreciation | 6 | 0 | 11 | 17 |
Total | 7 | 0 | 14 | 18 |
Operating Segments | Medical-Surgical Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 0 | 1 | 0 | 1 |
Exit and other-related costs | 1 | 0 | 2 | 2 |
Asset impairments and accelerated depreciation | 0 | 1 | 0 | 5 |
Total | 1 | 2 | 2 | 8 |
Operating Segments | International | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | 2 | (2) | 2 | 10 |
Exit and other-related costs | 6 | 1 | 8 | 15 |
Asset impairments and accelerated depreciation | 1 | 2 | 1 | 36 |
Total | 9 | 1 | 11 | 61 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and employee-related costs, net | (5) | 1 | (6) | 1 |
Exit and other-related costs | 14 | 6 | 29 | 27 |
Asset impairments and accelerated depreciation | 1 | 12 | (4) | 53 |
Total | $ 10 | $ 19 | $ 19 | $ 81 |
Restructuring, Impairment, an_5
Restructuring, Impairment, and Related Charges, Net - Summary of Restructuring Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 130 | |||
Restructuring, impairment, and related charges | $ 30 | $ 32 | 53 | $ 190 |
Non-cash charges | (11) | |||
Cash payments | (39) | |||
Other | (24) | |||
Ending balance | 109 | 109 | ||
Operating Segments | U.S. Pharmaceutical | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 11 | |||
Restructuring, impairment, and related charges | 3 | 10 | 7 | 22 |
Non-cash charges | (3) | |||
Cash payments | (3) | |||
Other | (1) | |||
Ending balance | 11 | 11 | ||
Operating Segments | Prescription Technology Solutions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 3 | |||
Restructuring, impairment, and related charges | 7 | 0 | 14 | 18 |
Non-cash charges | (11) | |||
Cash payments | (3) | |||
Other | 0 | |||
Ending balance | 3 | 3 | ||
Operating Segments | Medical-Surgical Solutions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 1 | |||
Restructuring, impairment, and related charges | 1 | 2 | 2 | 8 |
Non-cash charges | 0 | |||
Cash payments | (2) | |||
Other | 0 | |||
Ending balance | 1 | 1 | ||
Operating Segments | International | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 56 | |||
Restructuring, impairment, and related charges | 9 | 1 | 11 | 61 |
Non-cash charges | (1) | |||
Cash payments | (6) | |||
Other | (24) | |||
Ending balance | 36 | 36 | ||
Corporate | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 59 | |||
Restructuring, impairment, and related charges | 10 | $ 19 | 19 | $ 81 |
Non-cash charges | 4 | |||
Cash payments | (25) | |||
Other | 1 | |||
Ending balance | 58 | 58 | ||
Other Current Liabilities | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 58 | |||
Ending balance | 60 | 60 | ||
Liabilities Held For Sale | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 36 | |||
Ending balance | 22 | 22 | ||
Other Accrued Liabilities, Noncurrent | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 36 | |||
Ending balance | $ 27 | $ 27 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) related to continuing operations | $ 271 | $ 132 | $ 470 | $ 158 |
Reported income tax expense (benefit) rates (percent) | 21.80% | 29.90% | 20.90% | 15.70% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | |||||
Effective income tax rate reconciliation, tax (benefit), share-based payment arrangement, amount | $ (53) | ||||
Discrete tax benefit recognized due to GILTI | $ 55 | ||||
Discrete tax benefit recognized due to statute of limitation expirations | $ 97 | ||||
Loss (gain) to remeasure disposal group to fair value | (35) | 470 | |||
Unrecognized tax benefits | $ 1,500 | 1,500 | |||
Unrecognized tax benefits that would impact effective tax rate | 1,300 | $ 1,300 | |||
Effective income tax rate reconciliations, tax credit, amount | $ 16 | ||||
Tax Receivable Agreement (“TRA”) | |||||
Income Tax Contingency [Line Items] | |||||
Percentage of net cash tax savings realized or deemed realized under TRA (percent) | 85% | 85% | |||
Tax Receivable Agreement (“TRA”) | Subsequent Event | |||||
Income Tax Contingency [Line Items] | |||||
Gain on early contract termination | $ 126 | ||||
Held-for-sale | E.U. Businesses (Disposal Group) | |||||
Income Tax Contingency [Line Items] | |||||
Loss (gain) to remeasure disposal group to fair value | $ (23) | $ 491 | $ (35) | $ 491 | |
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Possible decrease in unrecognized tax benefits during the next twelve months | 150 | 150 | |||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Possible decrease in unrecognized tax benefits during the next twelve months | $ 180 | $ 180 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Noncontrolling Interests - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) shares | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2014 € / shares | |
Noncontrolling Interest [Line Items] | |||||||||
Put right redemption price per share (in euros per share) | € / shares | € 22.99 | ||||||||
Put right value, interest rate spread (as a percent) | 5% | ||||||||
Payments for purchase shares of McKesson Europe | $ 0 | $ 1,031 | |||||||
Associated increase in Company's ownership interest on its equity | 8 | ||||||||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | ||||||||
Noncontrolling interests | $ 518 | 518 | $ 480 | ||||||
Net income attributable to noncontrolling interests | 41 | $ 43 | 82 | 90 | |||||
Redeemable Noncontrolling Interest | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Net income attributable to noncontrolling interests | 0 | 8 | |||||||
Decrease in noncontrolling interest | (983) | ||||||||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | (287) | ||||||||
Additional Paid-in Capital | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Associated increase in Company's ownership interest on its equity | 178 | ||||||||
Noncontrolling Interests | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Decrease in noncontrolling interest | 0 | ||||||||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | ||||||||
Noncontrolling interests | 518 | 484 | 518 | 484 | $ 532 | $ 480 | $ 484 | $ 196 | |
Net income attributable to noncontrolling interests | 41 | 43 | 82 | 82 | |||||
McKesson Europe Subsidiary | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Annual recurring dividend (in euro per share) | € / shares | € 0.83 | ||||||||
McKesson Europe Subsidiary | Noncontrolling Interests | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling interests | 382 | 382 | |||||||
McKesson Europe Subsidiary | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Net income attributable to noncontrolling interests | 8 | ||||||||
Payments for purchase shares of McKesson Europe | $ 1,000 | ||||||||
Shares purchased (in shares) | shares | 34.5 | ||||||||
Vantage, ClarusOne Sourcing Services LLC and McKesson Europe | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Net income attributable to noncontrolling interests | $ 41 | $ 43 | $ 82 | $ 82 |
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 | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Noncontrolling Interests | ||||
Beginning balance | $ 480 | |||
Net income attributable to noncontrolling interests | $ 41 | $ 43 | 82 | $ 90 |
Payments to noncontrolling interests | (41) | (40) | (77) | (79) |
Ending balance | 518 | 518 | ||
Redeemable Noncontrolling Interests | ||||
Payments to noncontrolling interests | (41) | (40) | (77) | (79) |
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | |||
Noncontrolling Interests | ||||
Noncontrolling Interests | ||||
Beginning balance | 532 | 484 | 480 | 196 |
Net income attributable to noncontrolling interests | 41 | 43 | 82 | 82 |
Other comprehensive income | (6) | 44 | 0 | |
Reclassification of recurring compensation to other accrued liabilities | 2 | (2) | 4 | (2) |
Payments to noncontrolling interests | (41) | (40) | (77) | (79) |
Other | (6) | (1) | (7) | 0 |
Ending balance | 518 | 484 | 518 | 484 |
Redeemable Noncontrolling Interests | ||||
Other comprehensive income | (6) | 44 | 0 | |
Payments to noncontrolling interests | (41) | (40) | (77) | (79) |
Decrease in noncontrolling interest | 0 | |||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | 287 | |||
Other | $ 6 | 1 | $ 7 | 0 |
Redeemable Noncontrolling Interest | ||||
Noncontrolling Interests | ||||
Other comprehensive income | 3 | |||
Reclassification of recurring compensation to other accrued liabilities | 0 | (8) | ||
Payments to noncontrolling interests | 0 | 0 | ||
Other | (7) | (4) | ||
Redeemable Noncontrolling Interests | ||||
Beginning balance | 7 | 1,271 | ||
Net income attributable to noncontrolling interests | 0 | 8 | ||
Other comprehensive income | 3 | |||
Payments to noncontrolling interests | 0 | 0 | ||
Decrease in noncontrolling interest | (983) | |||
Reclassification of McKesson Europe AG redeemable noncontrolling interests | (287) | |||
Other | 7 | 4 | ||
Ending balance | $ 0 | $ 0 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive securities (shares) (less than) | 1 | 1 | 1 | 1 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share - Schedule of Computations for Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Income from continuing operations | $ 973 | $ 310 | $ 1,780 | $ 846 |
Net income attributable to noncontrolling interests | (41) | (43) | (82) | (90) |
Income from continuing operations attributable to McKesson Corporation | 932 | 267 | 1,698 | 756 |
Loss from discontinued operations, net of tax | (6) | 0 | (4) | (3) |
Net income attributable to McKesson Corporation | $ 926 | $ 267 | $ 1,694 | $ 753 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 143.1 | 154.1 | 143.7 | 155.1 |
Effect of dilutive securities: | ||||
Diluted (in shares) | 144.1 | 155.8 | 145 | 156.9 |
Diluted | ||||
Continuing operations (in usd per share) | $ 6.46 | $ 1.71 | $ 11.71 | $ 4.82 |
Discontinued operations (in usd per share) | (0.04) | 0 | (0.03) | (0.02) |
Total (in dollars per share) | 6.42 | 1.71 | 11.68 | 4.80 |
Basic | ||||
Continuing operations (in usd per share) | 6.51 | 1.73 | 11.81 | 4.87 |
Discontinued operations (in usd per share) | (0.04) | 0 | (0.02) | (0.02) |
Total (in dollars per share) | $ 6.47 | $ 1.73 | $ 11.79 | $ 4.85 |
Stock options | ||||
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 0.2 | 0.2 | 0.3 | 0.2 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 0.8 | 1.5 | 1 | 1.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 9,451 |
Goodwill acquired | 12 |
Foreign currency translation adjustments, net | (222) |
Other adjustments | (2) |
Ending balance | 9,239 |
U.S. Pharmaceutical | |
Goodwill [Roll Forward] | |
Beginning balance | 3,923 |
Goodwill acquired | 11 |
Foreign currency translation adjustments, net | (72) |
Other adjustments | (2) |
Ending balance | 3,860 |
Prescription Technology Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 1,542 |
Goodwill acquired | 0 |
Foreign currency translation adjustments, net | 0 |
Other adjustments | 0 |
Ending balance | 1,542 |
Medical-Surgical Solutions | |
Goodwill [Roll Forward] | |
Beginning balance | 2,453 |
Goodwill acquired | 0 |
Foreign currency translation adjustments, net | 0 |
Other adjustments | 0 |
Ending balance | 2,453 |
International | |
Goodwill [Roll Forward] | |
Beginning balance | 1,533 |
Goodwill acquired | 1 |
Foreign currency translation adjustments, net | (150) |
Other adjustments | 0 |
Ending balance | $ 1,384 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,860 | $ 4,996 |
Accumulated Amortization | (2,988) | (2,937) |
Net Carrying Amount | $ 1,872 | 2,059 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 2,710 | 2,777 |
Accumulated Amortization | (1,703) | (1,691) |
Net Carrying Amount | $ 1,007 | 1,086 |
Service agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 9 years | |
Gross Carrying Amount | $ 1,063 | 1,085 |
Accumulated Amortization | (591) | (573) |
Net Carrying Amount | $ 472 | 512 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 11 years | |
Gross Carrying Amount | $ 765 | 819 |
Accumulated Amortization | (402) | (386) |
Net Carrying Amount | $ 363 | 433 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 3 years | |
Gross Carrying Amount | $ 132 | 128 |
Accumulated Amortization | (120) | (116) |
Net Carrying Amount | $ 12 | 12 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Amortization Period (Years) | 9 years | |
Gross Carrying Amount | $ 190 | 187 |
Accumulated Amortization | (172) | (171) |
Net Carrying Amount | $ 18 | $ 16 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of intangible assets | $ 57 | $ 84 | $ 113 | $ 182 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||||
Estimated annual amortization expense, remainder of 2023 | 108 | 108 | ||
Estimated annual amortization expense, 2024 | 208 | 208 | ||
Estimated annual amortization expense, 2025 | 202 | 202 | ||
Estimated annual amortization expense, 2026 | 170 | 170 | ||
Estimated annual amortization expense, 2027 | 164 | 164 | ||
Estimated annual amortization expense, thereafter | $ 1,000 | $ 1,000 |
Debt and Financing Activities -
Debt and Financing Activities - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 | Jul. 23, 2021 |
Debt Instrument [Line Items] | |||
Lease and other obligations | $ 197 | $ 244 | |
Total debt | 5,613 | 5,879 | |
Less: Current portion | 800 | 799 | |
Total long-term debt | $ 4,813 | 5,080 | |
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 | 360 | |
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 | 918 | |
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% | ||
Debt outstanding | $ 498 | 498 | |
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 | 150 | |
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 | 343 | |
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 | 196 | |
6.00% Notes due March 1, 2041 | Notes payable | |||
Debt Instrument [Line Items] | |||
Interest rate on debt instrument (percent) | 6% | 6% | |
Debt outstanding | $ 217 | 217 | |
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 | 255 | |
1.50% Euro Notes due November 17, 2025 | Notes payable | |||
Debt Instrument [Line Items] | |||
Interest rate on debt instrument (percent) | 1.50% | ||
Debt outstanding | $ 586 | 662 | |
1.63% Euro Notes due October 30, 2026 | Notes payable | |||
Debt Instrument [Line Items] | |||
Interest rate on debt instrument (percent) | 1.63% | ||
Debt outstanding | $ 490 | 554 | |
3.13% Sterling Notes due February 17, 2029 | Notes payable | |||
Debt Instrument [Line Items] | |||
Interest rate on debt instrument (percent) | 3.13% | ||
Debt outstanding | $ 503 | $ 582 |
Debt and Financing Activities_2
Debt and Financing Activities - Long-Term Debt Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 23, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 5,613 | $ 5,613 | $ 5,879 | |||
Current portion of long-term debt | 800 | 800 | $ 799 | |||
Payments for debt extinguishments | 0 | $ 184 | ||||
Loss on debt extinguishment | $ 0 | $ (191) | $ 0 | $ (191) | ||
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% | 6% | 6% | |||
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] | ||||||
Aggregate consideration of debt redeemed | $ 1,100 | |||||
Debt principal redeemed | $ 922 | |||||
Redemption price percentage of principal (percent) | 100% | |||||
Payments for debt extinguishments | $ 182 | |||||
Accrued unpaid interest | 14 | |||||
Loss on debt extinguishment | 191 | |||||
Debt premiums | 182 | |||||
Write-off of unamortized debt issuance costs and transaction fees | $ 9 |
Debt and Financing Activities_3
Debt and Financing Activities - Revolving Credit Facilities Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 25, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Line of Credit | Committed | ||||||
Line of Credit Facility [Line Items] | ||||||
Committed and uncommitted borrowing capacity | $ 0 | $ 0 | ||||
Line of Credit | Uncommitted | ||||||
Line of Credit Facility [Line Items] | ||||||
Committed and uncommitted borrowing capacity | 99,000,000 | 99,000,000 | ||||
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 | |||||
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 | |||||
Borrowings under facility | 0 | $ 0 | 0 | $ 0 | ||
Amounts outstanding under facility | $ 0 | $ 0 | $ 0 |
Debt and Financing Activities_4
Debt and Financing Activities - Commercial Paper Narrative (Details) - Commercial Paper - USD ($) | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Outstanding notes (up to) | $ 4,000,000,000 | ||
Proceeds from issuance of commercial paper | 100,000,000 | $ 3,000,000,000 | |
Repayments of commercial paper | 100,000,000 | $ 3,000,000,000 | |
Commercial paper | $ 0 | $ 0 |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Held-for-sale | U.K. Disposal Group (Disposal Group) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated other comprehensive loss derecognized | $ 30 | |||||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Cash contributions to the plans | $ 2 | $ 3 | $ 5 | $ 17 | ||
Percentage threshold of greater of projected benefit obligation or market value of assets (percent) | 10% | 10% | ||||
Pension Plan | Held-for-sale | E.U. Businesses (Disposal Group) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Reclassified pension liabilities | $ 74 | $ 74 | $ 85 | |||
Pension Plan | Held-for-sale | U.K. Disposal Group (Disposal Group) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Derecognized pension assets | $ 49 |
Hedging Activities - Narrative
Hedging Activities - Narrative (Details) £ in Millions, $ in Millions, € in Billions | 6 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 GBP (£) | Mar. 31, 2022 EUR (€) | |
Disposed of by sale | U.K. Disposal Group (Disposal Group) | ||||
Derivative [Line Items] | ||||
Reclassification of gains from AOCI | $ 26 | |||
Fair Value Hedges | USD | Interest Rate Swap Entered Into QTD | Derivatives designated for hedge accounting | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 570 | |||
Fair Value Hedges | USD | Interest Rate Swap Entered Into YTD | Derivatives designated for hedge accounting | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 750 | |||
Euro Denominated Notes | Term Loan | Net Investment Hedges | ||||
Derivative [Line Items] | ||||
Debt outstanding | € | € 1.1 | € 1.1 | ||
British Pound Sterling Denominated Notes | Term Loan | ||||
Derivative [Line Items] | ||||
Debt outstanding | £ | £ 450 |
Hedging Activities - Summary of
Hedging Activities - Summary of Foreign Currency Gains and (Losses) from Non-Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivatives designated for hedge accounting | Net Investment Hedges | Euro Denominated Notes | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives designated as net investment hedges: | $ 75 | $ 33 | $ 139 | $ 11 |
Hedging Activities - Schedule o
Hedging Activities - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - Derivatives designated for hedge accounting £ in Millions, $ in Millions, $ in Millions | Sep. 30, 2022 CAD ($) | Sep. 30, 2022 GBP (£) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 CAD ($) | Mar. 31, 2022 GBP (£) | Mar. 31, 2022 USD ($) |
Fair Value Hedges | Derivatives designated as net investment hedges | GBP | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | £ | £ 450 | £ 450 | ||||
Derivatives designated as net investment hedges | Net Investment Hedges | CAD | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | $ 500 | $ 500 | ||||
Derivatives designated as net investment hedges | Cash Flow Hedges | USD | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | $ 1,532 | $ 1,678 | ||||
Floating interest rate swaps | Fair Value Hedges | USD | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | $ 750 | $ 0 | ||||
Fixed interest rate swaps | Cash Flow Hedges | USD | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional | $ 500 | $ 500 |
Hedging Activities - Summary _2
Hedging Activities - Summary of Derivative Instruments Gain (Loss) (Details) - Derivatives designated for hedge accounting - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cross-currency swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives designated as net investment hedges: | $ 21 | $ 10 | $ 33 | $ 5 |
Cross-currency swaps | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives designated as cash flow hedges: | (3) | 1 | (5) | (1) |
Fixed interest rate swaps | Cash Flow Hedges | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives designated as cash flow hedges: | $ 28 | $ 10 | $ 55 | $ 12 |
Hedging Activities - Schedule_2
Hedging Activities - Schedule of Fair Value of Derivatives (Details) - Derivatives designated for hedge accounting - USD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | $ 154 | $ 61 |
Fair value of derivative, liability | 96 | 75 |
Cross-currency swaps | Prepaid expenses and other/Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 43 | 30 |
Fair value of derivative, liability | 62 | 39 |
U.S. Dollar notional amount, asset | 1,417 | 1,537 |
Cross-currency swaps | Other non-current assets/liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 26 | 0 |
Fair value of derivative, liability | 0 | 36 |
U.S. Dollar notional amount, asset | 679 | 679 |
Floating interest rate swaps | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 85 | 31 |
Fair value of derivative, liability | 0 | 0 |
U.S. Dollar, notional amount, liability | 500 | 500 |
Floating interest rate swaps | Other non-current assets/liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative, asset | 0 | 0 |
Fair value of derivative, liability | 34 | 0 |
U.S. Dollar, notional amount, liability | $ 750 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in equity securities | $ 252 | $ 252 | $ 346 | ||
Gains associated with equity investments | (3) | $ 97 | (25) | $ 104 | |
National Prescription Opioid Litigation | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Restricted cash | 35 | 35 | 395 | ||
Fair value, inputs, level 1 | Fair Value, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Money market funds at carrying value | $ 772 | $ 772 | $ 981 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Long-Term Debt is Recorded at Amortized Cost (Details) - Fair Value, Recurring - Fair value, inputs, level 2 - USD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount of liabilities | $ 5,613 | $ 5,879 |
Estimated fair values of liabilities | $ 5,321 | $ 5,999 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Oct. 26, 2022 USD ($) | Jul. 05, 2022 USD ($) | Jun. 27, 2022 USD ($) | May 03, 2022 USD ($) | Apr. 02, 2022 USD ($) state installment distributor | Sep. 28, 2021 USD ($) | Dec. 09, 2019 city state | Oct. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) case | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) case | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||||||||||||
Estimated probable loss and expected loss recovery | $ 141 | $ 141 | |||||||||||
Proceeds from legal settlements | $ 34 | $ 46 | |||||||||||
Probable loss recovery | $ 141 | $ 141 | |||||||||||
Subsequent Event | Operating Segments | U.S. Pharmaceutical | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Proceeds from legal settlements | $ 129 | ||||||||||||
National Prescription Opioid Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of other national distributors named in suit | distributor | 2 | ||||||||||||
Number of states in which court cases are pending | state | 46 | ||||||||||||
Number of eligible states | state | 49 | ||||||||||||
Award payable under proposed framework | $ 7,400 | ||||||||||||
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% | ||||||||||||
Loss contingency, number of cases dismissed | case | 2,000 | 2,000 | |||||||||||
Restricted cash | $ 35 | $ 35 | $ 395 | ||||||||||
National Prescription Opioid Litigation | State of West Virginia and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 152 | ||||||||||||
National Prescription Opioid Litigation | Cherokee Nation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 29 | ||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||
Loss contingency, settlement, installment payments, term | 6 years 6 months | ||||||||||||
National Prescription Opioid Litigation | Native American Tribes Other Than Cherokee Nation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Litigation settlement, amount awarded to other party, percentage of total settlement to be used to remediate damages | 0.85 | ||||||||||||
National Prescription Opioid Litigation | Native American Tribes Other Than Cherokee Nation | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 167 | ||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||
Loss contingency, settlement, installment payments, term | 6 years | ||||||||||||
United States ex rel. Omni Healthcare, Inc. v. US Oncology, Inc., 19-cv-05125 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Loss contingency, number of states filed on behalf of | state | 30 | ||||||||||||
Loss contingency number of cities filed on behalf of | city | 2 | ||||||||||||
Canada | National Prescription Opioid Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Complaints filed against the entity | case | 4 | 4 | |||||||||||
Canada | National Prescription Opioid Litigation | Governmental entities | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Complaints filed against the entity | case | 3 | 3 | |||||||||||
Canada | National Prescription Opioid Litigation | An individual | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Complaints filed against the entity | case | 1 | 1 | |||||||||||
Three Largest U.S. Pharmaceutical Distributors | National Prescription Opioid Litigation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 19,500 | ||||||||||||
Period over which award would be payable under proposed framework | 18 years | ||||||||||||
Three National Pharmaceutical Distributors | National Prescription Opioid Litigation | State of West Virginia and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 400 | ||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||
Loss contingency, settlement, installment payments, term | 11 years | ||||||||||||
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 | Native American Tribes Other Than Cherokee Nation | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 440 | ||||||||||||
Pending | National Prescription Opioid Litigation | State of Alabama and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 141 | ||||||||||||
Loss contingency, settlement, number of installment payments | installment | 10 | ||||||||||||
Litigation expense | $ 33 | ||||||||||||
Settled Litigation | National Prescription Opioid Litigation | State of Washington and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 197 | ||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||
Settled Litigation | National Prescription Opioid Litigation | State of Oklahoma and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 117 | ||||||||||||
Portion of settlement to be paid by the Company (percent) | 38.10% | ||||||||||||
Settled Litigation | National Prescription Opioid Litigation | Settling Governmental Entities | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Settlement payment | $ 406 | ||||||||||||
Escrow deposit | $ 45 | 45 | |||||||||||
Settled Litigation | National Prescription Opioid Litigation | Settling Governmental Entities and Cherokee Nation | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Settlement payment | $ 535 | $ 910 | |||||||||||
Settled Litigation | Distributors | National Prescription Opioid Litigation | State of Washington and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 518 | ||||||||||||
Period over which award would be payable under proposed framework | 18 years | ||||||||||||
Settled Litigation | Distributors | National Prescription Opioid Litigation | State of Oklahoma and Subdivisions | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Award payable under proposed framework | $ 308 | ||||||||||||
Period over which award would be payable under proposed framework | 18 years |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Estimated Accrual Liability (Details) - National Prescription Opioid Litigation - USD ($) $ in Millions | Sep. 30, 2022 | Mar. 31, 2022 |
Loss Contingencies [Line Items] | ||
Current litigation liabilities | $ 703 | $ 1,046 |
Long-term litigation liabilities | 6,644 | 7,220 |
Total litigation liabilities | $ 7,347 | $ 8,266 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Aug. 31, 2022 shares | Jul. 31, 2022 USD ($) $ / shares | May 31, 2022 USD ($) $ / shares shares | Feb. 28, 2022 USD ($) $ / shares shares | Aug. 31, 2021 shares | May 31, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) vote $ / shares shares | Jun. 30, 2022 $ / shares shares | Mar. 31, 2022 shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) vote $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | |
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 | $ 0.54 | $ 0.54 | $ 0.47 | $ 0.47 | $ 1.01 | $ 0.89 | ||||||
Shares repurchased | $ 524 | $ 280 | $ 1,524 | $ 1,280 | ||||||||
Authorized repurchase amount (up to) | $ 4,000 | |||||||||||
Authorized amount available for future repurchases | $ 5,800 | $ 5,800 | ||||||||||
Accelerated Share Repurchase | ||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||
Shares repurchased | $ 1,000 | $ 1,500 | $ 1,000 | |||||||||
Share repurchases (in shares) | shares | 3.1 | 5.1 | 5.2 | |||||||||
Average price of shares repurchased (in usd per share) | $ / shares | $ 321.05 | $ 295.16 | $ 193.22 | |||||||||
Common stock repurchased (in shares) | shares | 0.5 | 0.3 | 0.9 | 4.3 | 2.6 | 4.8 | ||||||
Open Market Share Repurchase Transactions | ||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||
Average price of shares repurchased (in usd per share) | $ / shares | $ 355.75 | $ 203.20 | $ 355.75 | $ 203.20 | ||||||||
Common stock repurchased (in shares) | shares | 1.5 | 1.4 | 1.5 | 1.4 | ||||||||
Shares repurchased | $ 524 | $ 280 | $ 524 | $ 280 | ||||||||
Open Market Share Repurchase Transactions | Other Accrued Liabilities | ||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||
Shares repurchased | $ 40 | $ 16 |
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 | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (1,472) | $ (45) | $ (1,792) | $ 175 |
Other comprehensive income (loss), net of tax | (172) | (38) | 464 | (12) |
Other comprehensive income (loss) attributable to McKesson | (172) | (38) | 464 | (15) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 8 | |||
Ending balance | (1,249) | (87) | (1,249) | (87) |
Derivatives designated for hedge accounting | Net Investment Hedging | Euro Denominated Notes | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), net investment hedge, gain (loss) | 75 | 33 | 139 | 11 |
Derivatives designated for hedge accounting | Cross-currency swaps | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), net investment hedge, gain (loss) | 21 | 10 | 33 | 5 |
Total Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (948) | (1,627) | (1,534) | (1,480) |
Other comprehensive income (loss) before reclassifications | (189) | (45) | (290) | (33) |
Amounts reclassified to earnings and other | 17 | 7 | 754 | 21 |
Other comprehensive income (loss), net of tax | (172) | (38) | 464 | (12) |
Less: amounts attributable to noncontrolling interests | (6) | 0 | 44 | 3 |
Other comprehensive income (loss) attributable to McKesson | (166) | (38) | 420 | (15) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (170) | |||
Ending balance | (1,114) | (1,665) | (1,114) | (1,665) |
Foreign Currency Translation Adjustments, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (997) | (1,477) | (1,504) | (1,361) |
Other comprehensive income (loss) before reclassifications | (280) | (81) | (456) | (47) |
Amounts reclassified to earnings and other | 17 | 1 | 747 | 18 |
Other comprehensive income (loss), net of tax | (263) | (80) | 291 | (29) |
Less: amounts attributable to noncontrolling interests | (6) | 0 | 41 | 9 |
Other comprehensive income (loss) attributable to McKesson | (257) | (80) | 250 | (38) |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (158) | |||
Ending balance | (1,254) | (1,557) | (1,254) | (1,557) |
Unrealized Gains on Net Investment Hedges, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 38 | (57) | 10 | (36) |
Other comprehensive income (loss) before reclassifications | 71 | 32 | 116 | 5 |
Amounts reclassified to earnings and other | 0 | 0 | (17) | 0 |
Other comprehensive income (loss), net of tax | 71 | 32 | 99 | 5 |
Less: amounts attributable to noncontrolling interests | 0 | 0 | 0 | (6) |
Other comprehensive income (loss) attributable to McKesson | 71 | 32 | 99 | 11 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 0 | |||
Ending balance | 109 | (25) | 109 | (25) |
Other comprehensive income (loss) before reclassifications, tax | (25) | (11) | (56) | (5) |
Unrealized Gains on Cash Flow Hedges, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 45 | 13 | 27 | 13 |
Other comprehensive income (loss) before reclassifications | 18 | 3 | 36 | 3 |
Amounts reclassified to earnings and other | 0 | 5 | 0 | 5 |
Other comprehensive income (loss), net of tax | 18 | 8 | 36 | 8 |
Less: amounts attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) attributable to McKesson | 18 | 8 | 36 | 8 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | 0 | |||
Ending balance | 63 | 21 | 63 | 21 |
Unrealized Gains (Losses) and Other Components of Benefit Plans, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (34) | (106) | (67) | (96) |
Other comprehensive income (loss) before reclassifications | 2 | 1 | 14 | 6 |
Amounts reclassified to earnings and other | 0 | 1 | 24 | (2) |
Other comprehensive income (loss), net of tax | 2 | 2 | 38 | 4 |
Less: amounts attributable to noncontrolling interests | 0 | 0 | 3 | 0 |
Other comprehensive income (loss) attributable to McKesson | 2 | 2 | 35 | 4 |
Exercise of put right by noncontrolling shareholders of McKesson Europe AG | (12) | |||
Ending balance | $ (32) | $ (104) | $ (32) | $ (104) |
Segments of Business - Narrativ
Segments of Business - Narrative (Details) $ in Millions | 6 Months Ended | |
Sep. 30, 2022 USD ($) country product segment business | Mar. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 4 | |
Number of national brand medical-surgical products offered (more than) | product | 285,000 | |
International segment assets | $ 63,081 | $ 63,298 |
International | ||
Segment Reporting Information [Line Items] | ||
International segment assets | $ 9,600 | |
International | Europe | ||
Segment Reporting Information [Line Items] | ||
Number of countries in which entity segment operates | country | 9 | |
Number of business operations | business | 2 |
Segments of Business - Reportab
Segments of Business - Reportable operating segment (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment revenues | |||||
Total revenues | $ 70,157 | $ 66,576 | $ 137,311 | $ 129,250 | |
Segment operating profit (loss) | |||||
Total operating profit (loss) | 1,124 | 539 | 2,160 | 1,107 | |
Corporate income (expenses), net | 21 | (360) | (18) | (663) | |
Interest expense | (55) | (45) | (100) | (94) | |
Income from continuing operations before income taxes | 1,244 | 442 | $ 2,250 | 1,004 | |
Number of reportable segments | segment | 4 | ||||
Gain from sale of equity method investment | 142 | ||||
Proceeds from sale of equity securities | $ 179 | ||||
Pre-tax credits related to LIFO accounting | $ (36) | (46) | |||
Company's shares of legal settlements | 34 | 46 | |||
Loss (gain) to remeasure disposal group to fair value | (35) | 470 | |||
Restructuring, impairment, and related charges | 30 | 32 | 53 | 190 | |
Gains associated with equity investments | 3 | (97) | 25 | (104) | |
Loss on debt extinguishment | 0 | (191) | $ 0 | (191) | |
United States | |||||
Segment operating profit (loss) | |||||
Number of reportable segments | segment | 3 | ||||
Held-for-sale | E.U. Businesses (Disposal Group) | |||||
Segment operating profit (loss) | |||||
Loss (gain) to remeasure disposal group to fair value | (23) | 491 | $ (35) | 491 | |
Operating Segments | |||||
Segment operating profit (loss) | |||||
Total operating profit (loss) | 1,278 | 1,038 | 2,368 | 1,952 | |
Corporate | |||||
Segment operating profit (loss) | |||||
Restructuring, impairment, and related charges | 10 | 19 | 19 | 81 | |
Corporate | National Prescription Opioid Litigation | |||||
Segment operating profit (loss) | |||||
Pre-tax expenses related to estimated litigation liability | 112 | 186 | |||
Corporate | Held-for-sale | E.U. Businesses (Disposal Group) | |||||
Segment operating profit (loss) | |||||
Loss (gain) to remeasure disposal group to fair value | (166) | 149 | (272) | 149 | |
National Prescription Opioid Litigation | Corporate | |||||
Segment operating profit (loss) | |||||
Litigation expense | 9 | 36 | 28 | 71 | |
U.S. Pharmaceutical | |||||
Segment revenues | |||||
Total revenues | 60,059 | 53,411 | 117,006 | 103,430 | |
U.S. Pharmaceutical | Operating Segments | |||||
Segment operating profit (loss) | |||||
Total operating profit (loss) | 896 | 760 | $ 1,592 | 1,442 | |
Revenue derived from services, percentage (less than) | 1% | ||||
Pre-tax credits related to LIFO accounting | (23) | (23) | $ (36) | (46) | |
Restructuring, impairment, and related charges | 3 | 10 | 7 | 22 | |
Prescription Technology Solutions | |||||
Segment revenues | |||||
Total revenues | 1,018 | 932 | 2,084 | 1,813 | |
Prescription Technology Solutions | Operating Segments | |||||
Segment operating profit (loss) | |||||
Total operating profit (loss) | 120 | 128 | $ 264 | 232 | |
Revenue derived from services, percentage (less than) | 37% | ||||
Restructuring, impairment, and related charges | 7 | 0 | $ 14 | 18 | |
Medical-Surgical Solutions | |||||
Segment revenues | |||||
Total revenues | 2,843 | 3,124 | 5,435 | 5,652 | |
Medical-Surgical Solutions | Operating Segments | |||||
Segment operating profit (loss) | |||||
Total operating profit (loss) | 299 | 296 | $ 555 | 371 | |
Revenue derived from services, percentage (less than) | 3% | ||||
Inventory charges | 164 | ||||
Restructuring, impairment, and related charges | 1 | 2 | $ 2 | 8 | |
International | |||||
Segment revenues | |||||
Total revenues | 6,237 | 9,109 | 12,786 | 18,355 | |
International | Operating Segments | |||||
Segment operating profit (loss) | |||||
Total operating profit (loss) | (37) | (146) | $ (43) | (93) | |
Revenue derived from services, percentage (less than) | 8% | ||||
Restructuring, impairment, and related charges | 9 | 1 | $ 11 | 61 | |
International | Operating Segments | Held-for-sale | E.U. Businesses (Disposal Group) | |||||
Segment operating profit (loss) | |||||
Loss (gain) to remeasure disposal group to fair value | $ 143 | 342 | $ 237 | 342 | |
International | 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 | $ 59 |