Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information [Abstract] | ' |
Entity Registrant Name | 'MCKESSON CORP |
Entity Central Index Key | '0000927653 |
Current Fiscal Year End Date | '--03-31 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 30-Jun-14 |
Document Fiscal Year Focus | '2015 |
Document Fiscal Period Focus | 'Q1 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 231,599,218 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Income Statement [Abstract] | ' | ' | ||
Revenues | $44,058 | $32,239 | ||
Cost of Sales | -41,261 | -30,309 | ||
Gross Profit | 2,797 | 1,930 | ||
Operating Expenses | -2,109 | -1,260 | ||
Litigation Charges | 0 | -15 | ||
Total Operating Expenses | -2,109 | -1,275 | ||
Operating Income | 688 | 655 | ||
Other Income, Net | 20 | 6 | ||
Interest Expense | -101 | -59 | ||
Income from Continuing Operations Before Income Taxes | 607 | 602 | ||
Income Tax Expense | -182 | -174 | ||
Income from Continuing Operations | 425 | 428 | ||
Loss from discontinued operations, net of tax | -14 | -4 | ||
Net Income | 411 | 424 | ||
Net Income Attributable to Noncontrolling Interests | -8 | 0 | ||
Net income attributable to McKesson | $403 | $424 | ||
Earnings (Loss) Per Common Share Attributable To McKesson (Diluted) | ' | ' | ||
Continuing operations | $1.78 | [1] | $1.84 | [1] |
Discontinued operations | ($0.06) | [1] | ($0.01) | [1] |
Total | $1.72 | [1] | $1.83 | [1] |
Earnings (Loss) Per Common Share Attributable To McKesson (Basic) | ' | ' | ||
Continuing operations | $1.81 | [1] | $1.88 | [1] |
Discontinued operations | ($0.06) | [1] | ($0.02) | [1] |
Total | $1.75 | [1] | $1.86 | [1] |
Dividends Declared Per Common Share | $0.24 | $0.20 | ||
Weighted Average Common Shares | ' | ' | ||
Diluted | 235 | 232 | ||
Basic | 231 | 227 | ||
[1] | Certain computations may reflect rounding adjustments. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ||
Net Income | $411 | $424 | ||
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ||
Foreign currency translation adjustments arising during period, net of income tax expense of nil and $2 (1) | 98 | [1] | -61 | [1] |
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil and nil | -2 | 1 | ||
Retirement-related benefit plans, net of income tax expense of $1 and $4 | 2 | 7 | ||
Other Comprehensive Income (Loss), Net of Tax | 98 | -53 | ||
Comprehensive Income | 509 | 371 | ||
Comprehensive Loss Attributable to Noncontrolling Interests | 4 | 0 | ||
Comprehensive Income Attributable to McKesson | $513 | $371 | ||
[1] | The first quarter of 2015 includes net foreign currency translation loss of $12 million attributable to noncontrolling interests. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $4,105 | $4,193 |
Receivables, net | 14,920 | 14,193 |
Inventories, net | 14,124 | 13,308 |
Prepaid expenses and other | 824 | 879 |
Total Current Assets | 33,973 | 32,573 |
Property, Plant and Equipment, Net | 2,209 | 2,222 |
Goodwill | 10,431 | 9,927 |
Intangible Assets, Net | 4,390 | 5,022 |
Other Assets | 2,003 | 2,015 |
Total Assets | 53,006 | 51,759 |
Current Liabilities | ' | ' |
Drafts and accounts payable | 22,812 | 21,429 |
Short-term borrowings | 507 | 346 |
Deferred revenue | 1,124 | 1,236 |
Deferred tax liabilities | 1,656 | 1,588 |
Current portion of long-term debt | 25 | 1,424 |
Other accrued liabilities | 3,121 | 3,478 |
Total Current Liabilities | 29,245 | 29,501 |
Long-Term Debt | 10,141 | 8,949 |
Other Noncurrent Liabilities | 2,855 | 2,991 |
Commitments and Contingent Liabilities (Note 12) | ' | ' |
McKesson Corporation Stockholders' Equity | ' | ' |
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 800 shares authorized at June 30, 2014 and March 31, 2014, 383 and 381 shares issued at June 30, 2014 and March 31, 2014 | 4 | 4 |
Additional Paid-in Capital | 6,686 | 6,552 |
Retained Earnings | 11,800 | 11,453 |
Accumulated Other Comprehensive Income (Loss) | 107 | -3 |
Other | -7 | 23 |
Treasury Shares, at Cost, 151 and 150 at June 30, 2014 and March 31, 2014 | -9,611 | -9,507 |
Total McKesson Corporation Stockholders’ Equity | 8,979 | 8,522 |
Noncontrolling Interests | 1,786 | 1,796 |
Total Equity | 10,765 | 10,318 |
Total Liabilities and Equity | $53,006 | $51,759 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
McKesson Corporation Stockholders' Equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 383,000,000 | 381,000,000 |
Treasury stock, shares | 151,000,000 | 150,000,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Activities | ' | ' |
Net Income | $411 | $424 |
Adjustments to reconcile to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 284 | 162 |
Deferred taxes | 135 | 98 |
Charges associated with last-in-first-out inventory method | 98 | 0 |
Other non-cash items | 14 | 32 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Receivables | -699 | -139 |
Inventories | -901 | -60 |
Drafts and accounts payable | 1,368 | 589 |
Deferred revenue | -134 | -116 |
Taxes | -134 | 31 |
Other | -260 | -305 |
Net cash provided by operating activities | 182 | 716 |
Investing Activities | ' | ' |
Property acquisitions | -86 | -69 |
Capitalized software expenditures | -33 | -32 |
Acquisitions, net of cash and cash equivalents acquired | -14 | -74 |
Other | 21 | -9 |
Net cash used in investing activities | -112 | -184 |
Financing Activities | ' | ' |
Proceeds from short-term borrowings | 917 | 100 |
Repayments of short-term borrowings | -759 | -100 |
Proceeds from issuances of long-term debt | 6 | 0 |
Repayments of long-term debt | -230 | 0 |
Common stock transactions: | ' | ' |
Issuances | 34 | 50 |
Share repurchases, including shares surrendered for tax withholding | -102 | -127 |
Dividends paid | -59 | -53 |
Other | 26 | 57 |
Net cash used in financing activities | -167 | -73 |
Effect of exchange rate changes on cash and cash equivalents | 9 | -10 |
Net (decrease) increase in cash and cash equivalents | -88 | 449 |
Cash and cash equivalents at beginning of period | 4,193 | 2,456 |
Cash and cash equivalents at end of period | $4,105 | $2,905 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
Basis of Presentation: The condensed consolidated financial statements of McKesson Corporation (“McKesson,” the “Company,” or “we” and other similar pronouns) include the financial statements of all wholly-owned subsidiaries and majority‑owned or controlled companies. We also evaluate our ownership, contractual and other interests in entities to determine if they are variable interest entities (“VIEs”), if we have a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve judgment and the use of estimates and assumptions based on available historical information and management’s judgment, among other factors. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method and our proportionate share of income or loss is recorded in other income, net. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and footnote disclosures normally included in the annual consolidated financial statements. | |
To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these financial statements and income and expenses during the reporting period. Actual amounts may differ from these estimated amounts. In our opinion, the accompanying unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. | |
The results of operations for the quarter ended June 30, 2014 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 our Annual Report on Form 10-K for the fiscal year ended March 31, 2014 previously filed with the SEC on May 14, 2014 (“2014 Annual Report”). | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
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. | |
Recently Adopted Accounting Pronouncements | |
Cumulative Translation Adjustments: In the first quarter of 2015, we adopted amended guidance for parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The amended guidance requires the release of any cumulative translation adjustment into net income only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. Also, it requires the release of all or a pro rata portion of the cumulative translation adjustment to net income in case of sale of an equity method investment that is a foreign entity. The adoption of this amended guidance did not have a material effect on our condensed financial statements. | |
Recently Issued Accounting Pronouncements Not Yet Adopted | |
Discontinued Operations: In April 2014, amended guidance was issued for reporting of discontinued operations and disclosures of disposals of components. The amended guidance raises the threshold for disposals to qualify as discontinued operations and permits significant continuing involvement and continuing cash flows with the discontinued operation. In addition, the amended guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The amended guidance is effective for us prospectively commencing in the first quarter of 2016. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. | |
Revenue Recognition: In May 2014, amended guidance was issued for recognizing revenue from contracts with customers. The amended guidance eliminated industry specific guidance and applies to all companies. Revenues will be recognized when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled for that good or service. Revenue from a contract that contains multiple performance obligations is allocated to each performance obligation generally on a relative standalone selling price basis. The amended guidance also requires additional quantitative and qualitative disclosures. The amended guidance is effective for us commencing in the first quarter of 2018. The amended guidance allows for either full retrospective adoption or modified retrospective adoption. Early adoption is not permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. |
Business_Combinations
Business Combinations | 3 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Business Combinations | ' | |||||||||||
Business Combinations | ||||||||||||
On February 6, 2014, we completed the acquisition of 77.6% of the then outstanding common shares of Celesio AG (“Celesio”) and certain convertible bonds of Celesio for cash consideration of $4.5 billion, net of cash acquired (the “Acquisition”). Upon the acquisition, as required, we consolidated Celesio’s debt with a fair value of $2.3 billion as a liability on our consolidated balance sheet and our ownership of Celesio’s fully diluted common shares was 75.6%. The Acquisition was initially funded by utilizing a senior bridge loan, our existing accounts receivable sales facility and cash on hand. Celesio is an international wholesale and retail company and a provider of logistics and services to the pharmaceutical and healthcare sectors. Celesio’s headquarters is in Stuttgart, Germany and it operates in 14 countries around the world. The acquisition of Celesio expands our global geographic area; the combined company is one of the largest pharmaceutical wholesalers and providers of logistics and services in the healthcare sector worldwide. | ||||||||||||
From February 7 to March 31, 2014, substantially all of the convertible bonds issued by Celesio (held by both third parties and us) were converted to 20.9 million common shares of Celesio. During the first quarter of 2015, we completed tender offers and we acquired approximately 1 million common shares of Celesio at €23.50 per share for a total of $32 million in cash, and the remaining convertible bonds were fully converted into 42,238 common shares of Celesio. At June 30, 2014 and March 31, 2014, we owned approximately 75.9% and 75.4% of Celesio’s outstanding and fully diluted common shares. | ||||||||||||
On May 22, 2014, Celesio and McKesson, through its wholly-owned subsidiary Dragonfly GmbH & Co. KGaA, entered into a domination and profit and loss transfer agreement (the “Agreement”). Under the Agreement, Celesio will subordinate its management to McKesson and undertake to transfer all of its annual profits to McKesson, and McKesson will undertake to compensate any annual losses incurred by Celesio and to grant, subject to a potential court review, the noncontrolling shareholders of Celesio (i) an annual recurring compensation of €0.83 per Celesio share and (ii) a put right for their Celesio shares at €22.99 per Celesio share. On July 15, 2014, the Agreement was approved at the general shareholders’ meeting of Celesio. The Agreement becomes effective upon its registration in the commercial register of Celesio at the local court of Stuttgart, Germany. Celesio’s obligation to transfer its annual profits under the Agreement will apply for the first time for the entire profit generated in Celesio’s fiscal period beginning on January 1, 2015 or the subsequent fiscal year in which the Agreement becomes effective. McKesson’s obligation to compensate the annual losses of Celesio under the Agreement will apply for the first time for the full fiscal period of Celesio during which the Agreement becomes effective. We currently anticipate the Agreement to be effective by the end of the calendar year, at which time, we will obtain operational control of Celesio. | ||||||||||||
Financial results for Celesio are included within our International pharmaceutical distribution and services business, which is part of our Distribution Solutions segment, since the date of acquisition. | ||||||||||||
The following table summarizes the preliminary recording of the fair values of the assets acquired and liabilities assumed as of the acquisition date. | ||||||||||||
(In millions) | Amounts | Measurement Period Adjustments | Amounts Recognized as of Acquisition Date (Provisional as Adjusted) | |||||||||
Previously Recognized as of | ||||||||||||
Acquisition Date | ||||||||||||
(Provisional)(1) | ||||||||||||
Receivables | $ | 3,425 | $ | (3 | ) | $ | 3,422 | |||||
Other current assets, net of cash and cash equivalents | 2,413 | (3 | ) | 2,410 | ||||||||
acquired | ||||||||||||
Goodwill | 3,570 | 436 | 4,006 | |||||||||
Intangible assets | 3,018 | (536 | ) | 2,482 | ||||||||
Other long-term assets | 1,272 | (44 | ) | 1,228 | ||||||||
Current liabilities | (4,096 | ) | (6 | ) | (4,102 | ) | ||||||
Short-term borrowings and current portion of long-term debt | (1,990 | ) | — | (1,990 | ) | |||||||
Long-term debt | (322 | ) | — | (322 | ) | |||||||
Other long-term liabilities | (1,293 | ) | 156 | (1,137 | ) | |||||||
Fair value of net assets, less cash and cash equivalents | 5,997 | — | 5,997 | |||||||||
Less: Noncontrolling Interests | (1,500 | ) | — | (1,500 | ) | |||||||
Net assets acquired, less cash and cash equivalents | $ | 4,497 | $ | — | $ | 4,497 | ||||||
-1 | As previously reported in our Form 10-K for the year ended March 31, 2014. | |||||||||||
During the first quarter of 2015, the fair value measurements of assets acquired and liabilities assumed of Celesio as of the acquisition date were refined. Among the adjustments recorded, the fair value of acquired intangible assets was decreased by $536 million. The fair value was primarily determined by applying the income approach using unobservable inputs for projected cash flows and a discount rate, which were refined during the current period, and are considered Level 3 inputs under the fair value measurements and disclosure guidance. These refinements did not have a significant impact on our condensed consolidated statements of operations, balance sheets or cash flows in any period and, therefore, we have not retrospectively adjusted our financial statements. These amounts are subject to change within the measurement period as our fair value assessments are finalized. | ||||||||||||
During the last two years, we also completed a number of smaller acquisitions within both of our operating segments. Financial results for our business acquisitions have been included in our consolidated financial statements since their respective acquisition dates. Purchase prices for our business acquisitions have been allocated based on estimated fair values at the date of acquisition. | ||||||||||||
Goodwill recognized for our business acquisitions is generally not expected to be deductible for tax purposes. However, if we acquire the assets of a company, the goodwill may be deductible for tax purposes. |
Noncontrolling_Interests_Nonco
Noncontrolling Interests Noncontrolling Interests | 3 Months Ended |
Jun. 30, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interest Disclosure [Text Block] | ' |
Noncontrolling Interests | |
At June 30, 2014, we owned approximately 75.9% of Celesio’s outstanding and fully diluted common shares, which was primarily obtained through our February 2014 acquisition of the then outstanding common shares and certain convertible bonds of Celesio. In April 2014, we completed tender offers and paid $32 million in cash to acquire approximately 1 million additional common shares of Celesio, which increased our ownership share by 0.5% and decreased noncontrolling interests by $35 million since March 31, 2014. The effect of changes in our ownership interest in Celesio on our equity of $3 million was recorded as an increase to McKesson’s stockholders’ paid-in capital. Net income attributable to McKesson and transfers from noncontrolling interests to McKesson equity amounted to $406 million for the first quarter of 2015. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Discontinued Operations | ' | |||||||
Discontinued Operations | ||||||||
In 2014, we committed to a plan to sell our International Technology and our Hospital Automation businesses from our Technology Solutions segment and certain businesses from our Distribution Solutions segment. As required, we classified the results of operations and cash flows of these businesses as discontinued operations for all periods presented in our consolidated financial statements in 2014 and depreciation and amortization expense was not recognized. | ||||||||
During the third quarter of 2014, our Hospital Automation business was sold for net cash proceeds of $55 million and we recorded a pre-tax and after-tax loss of $5 million and $7 million. | ||||||||
During the third quarter of 2014, we recorded an $80 million pre-tax ($80 million after-tax) non-cash impairment charge to reduce the carrying value of our International Technology business to its estimated net realizable value (fair value less costs to sell). The charge was primarily the result of the terms of the preliminary purchase offers received for this business during the third quarter of 2014. The impairment charge was primarily attributed to goodwill and other long-lived assets and as a result, there was no tax benefit associated with this charge. During the first quarter of 2015, we entered into an agreement to sell the software business within our International Technology business. We completed the sale of the software business on July 1, 2014 and no material gain or loss is anticipated. | ||||||||
During the first quarter of 2015, we also decided to retain the workforce business within our International Technology business. This business consists of workforce management solutions for the National Health Service in the United Kingdom, which we now intend to wind down in 2016. As a result, we reclassified the workforce business, which had been designated as a discontinued operation since the first quarter of 2014, as a continuing operation for all periods presented. During the first quarter of 2015, we also recorded a non-cash pre-tax charge of $34 million ($27 million after-tax) primarily relating to depreciation and amortization expense for 2014 when the business was classified as held for sale. The non-cash charge was recorded in our condensed consolidated statement of operations as follows: $32 million in cost of sales and $2 million in operating expenses. | ||||||||
A summary of results of discontinued operations is as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Revenues | $ | 36 | $ | 85 | ||||
Loss from discontinued operations | $ | (15 | ) | $ | (3 | ) | ||
Income tax (expense) benefit | 1 | (1 | ) | |||||
Loss from discontinued operations, net of tax | $ | (14 | ) | $ | (4 | ) | ||
The assets and liabilities of our discontinued operations are classified as held-for-sale effective in 2014. All applicable assets of the businesses to be sold are included under the caption “Prepaid expenses and other” and all applicable liabilities under the caption “Other accrued liabilities” within our condensed consolidated balance sheet at June 30, 2014 and March 31, 2014. The carrying values of the assets and liabilities classified as held-for-sale were $138 million and $144 million at June 30, 2014 and $267 million and $248 million at March 31, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
As of June 30, 2014, we had $582 million of unrecognized tax benefits, of which $427 million would reduce income tax expense and the effective tax rate, if recognized. During the next twelve months, it is reasonably possible that audit resolutions and the expiration of statutes of limitations could potentially reduce our unrecognized tax benefits by up to $158 million. However, this amount may change as we continue to have ongoing negotiations with various taxing authorities throughout the year. | |
We have received reassessments from the Canada Revenue Agency (“CRA”) for a total of $261 million related to a transfer pricing matter impacting years 2003 through 2010. On December 13, 2013, the Tax Court of Canada dismissed our appeal of the 2003 reassessment and we have filed a Notice of Appeal to the Federal Court of Appeal regarding this tax year. During the first quarter of 2015, we filed a Notice of Appeal with the Tax Court of Canada relating to the 2004 through 2008 reassessments. The ultimate resolution of these issues could result in an increase or decrease to income tax expense. | |
Through the appeals process, we reached an agreement with the Internal Revenue Service (“IRS”) to settle all outstanding issues relating to years 2003 through 2006. As a result of this agreement we will pay additional taxes of $21 million, which have already been accrued in our financial statements. We are also recognizing a $17 million discrete tax benefit during the quarter to record a previously unrecognized tax benefit. | |
The IRS is currently examining our U.S. corporation income tax returns for 2007 through 2009. The CRA is currently examining our Canadian Income tax returns for 2011 through 2013. In nearly all jurisdictions, the tax years prior to 2003 are no longer subject to examination. | |
We report interest and penalties on tax deficiencies as income tax expense. During the quarter, we recognized income tax expense of $4 million, before any tax benefit, related to interest and penalties in our condensed consolidated statements of operations. At June 30, 2014, before any tax benefits, our accrued interest and penalties on unrecognized tax benefits amounted to $161 million. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Common Share | ' | |||||||
Earnings Per Common Share | ||||||||
Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed similar to basic earnings per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. | ||||||||
The computations for basic and diluted earnings per common share are as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions, except per share amounts) | 2014 | 2013 | ||||||
Income from continuing operations | $ | 425 | $ | 428 | ||||
Net income attributable to noncontrolling interests | (8 | ) | — | |||||
Income from continuing operations attributable to McKesson | 417 | 428 | ||||||
Loss from discontinued operations, net of tax | (14 | ) | (4 | ) | ||||
Net income attributable to McKesson | $ | 403 | $ | 424 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 231 | 227 | ||||||
Effect of dilutive securities: | ||||||||
Options to purchase common stock | 2 | 2 | ||||||
Restricted stock units | 2 | 3 | ||||||
Diluted | 235 | 232 | ||||||
Earnings (loss) per common share attributable to McKesson: (1) | ||||||||
Diluted | ||||||||
Continuing operations | $ | 1.78 | $ | 1.84 | ||||
Discontinued operations | (0.06 | ) | (0.01 | ) | ||||
Total | $ | 1.72 | $ | 1.83 | ||||
Basic | ||||||||
Continuing operations | $ | 1.81 | $ | 1.88 | ||||
Discontinued operations | (0.06 | ) | (0.02 | ) | ||||
Total | $ | 1.75 | $ | 1.86 | ||||
-1 | Certain computations may reflect rounding adjustments. | |||||||
Potentially dilutive securities include outstanding stock options, restricted stock units, and performance-based and other restricted stock units. Approximately 2 million and 3 million potentially dilutive securities were excluded from the computations of diluted net earnings per common share for the quarters ended June 30, 2014 and 2013, as they were anti-dilutive. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets, Net | 3 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Goodwill And Intangible Assets, Net | ' | |||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | ||||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||||
(In millions) | Distribution | Technology | Total | |||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||||
Balance, March 31, 2014 | $ | 8,078 | $ | 1,849 | $ | 9,927 | ||||||||||||||||||||
Goodwill acquired | 14 | — | 14 | |||||||||||||||||||||||
Acquisition accounting and other | 445 | — | 445 | |||||||||||||||||||||||
Foreign currency translation adjustments and other | 41 | 4 | 45 | |||||||||||||||||||||||
Balance, June 30, 2014 | $ | 8,578 | $ | 1,853 | $ | 10,431 | ||||||||||||||||||||
As of June 30, 2014 and March 31, 2014, the accumulated goodwill impairment losses were $36 million in our Technology Solutions segment. | ||||||||||||||||||||||||||
Information regarding intangible assets is as follows: | ||||||||||||||||||||||||||
June 30, 2014 | March 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Weighted | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Average | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Remaining | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||
Period | ||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||
Customer lists | 9 | $ | 3,022 | $ | (937 | ) | $ | 2,085 | $ | 3,384 | $ | (863 | ) | $ | 2,521 | |||||||||||
Service agreements | 16 | 1,014 | (189 | ) | 825 | 995 | (173 | ) | 822 | |||||||||||||||||
Pharmacy licenses | 27 | 1,051 | (28 | ) | 1,023 | 1,219 | (11 | ) | 1,208 | |||||||||||||||||
Trademarks and trade names | 15 | 377 | (68 | ) | 309 | 371 | (59 | ) | 312 | |||||||||||||||||
Technology | 3 | 218 | (177 | ) | 41 | 219 | (173 | ) | 46 | |||||||||||||||||
Other | 4 | 173 | (66 | ) | 107 | 165 | (52 | ) | 113 | |||||||||||||||||
Total | $ | 5,855 | $ | (1,465 | ) | $ | 4,390 | $ | 6,353 | $ | (1,331 | ) | $ | 5,022 | ||||||||||||
Amortization expense of intangible assets was $130 million and $71 million for the quarters ended June 30, 2014 and 2013. Estimated annual amortization expense of these assets is as follows: $383 million, $468 million, $429 million, $410 million and $382 million for the remainder of 2015 and each of the succeeding years through 2019 and $2,318 million thereafter. All intangible assets were subject to amortization as of June 30, 2014 and March 31, 2014. |
Debt_and_Financing_Activities
Debt and Financing Activities | 3 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt and Financing Activities | ' |
Debt and Financing Activities | |
Celesio Debt | |
Upon the acquisition of Celesio, as required, we consolidated Celesio’s debt including corporate bonds consisting of 4.00% bonds due October 18, 2016 and 4.50% bonds due April 26, 2017. At June 30, 2014 and March 31, 2014, $500 million and $507 million of the 4.00% bonds and $726 million and $737 million of the 4.50% bonds, for a total of $1,226 million and $1,244 million, were outstanding. As of March 31, 2014, these bonds were classified within current liabilities as bondholders had the option to redeem the bonds at par value plus accrued interest. This redemption option expired during the first quarter of 2015 and the remaining bonds outstanding will mature according to their respective maturity dates. Accordingly, as of June 30, 2014, these bonds have been classified as long-term debt. | |
We also consolidated Celesio’s accounts receivable factoring facilities (the “Factoring Facilities”) with a total committed and uncommitted balance of $315 million. The Factoring Facilities will expire through September 2015. During the first quarter of 2015, Celesio borrowed and repaid $758 million and $746 million of short-term borrowings under the Factoring Facilities. At June 30, 2014 and March 31, 2014, there were $258 million and $246 million in secured borrowings and related securitized accounts receivable outstanding under the Factoring Facilities. | |
Celesio also maintains a syndicated €500 million five-year senior unsecured revolving credit facility, which expires in February 2018. Borrowings under this facility bear interest based upon the Euro Interbank Offered Rate plus an agreed margin. There were no borrowings under this facility during the first quarter of 2015 and there were no amounts outstanding under this facility as of June 30, 2014 and March 31, 2014. | |
Celesio also maintains bilateral credit lines with a total committed and uncommitted balance of $2.0 billion. During the first quarter of 2015, Celesio borrowed and repaid $159 million and $30 million under these credit lines primarily relating to short‑term borrowings. As of June 30, 2014 and March 31, 2014, there were $321 million and $188 million outstanding under these credit lines. | |
Accounts Receivable Sales Facility | |
We have an accounts receivable sales facility (the “Facility”) with a committed balance of $1.35 billion, although from time to time, the available amount of the Facility may be less than $1.35 billion based on accounts receivable concentration limits and other eligibility requirements. The Facility will expire in November 2014 and we anticipate renewing the Facility before its expiration. | |
During the first quarter of 2015, there were no borrowings under the Facility. During the first quarter of 2014, we borrowed and repaid $100 million of short-term borrowings under the Facility. At June 30, 2014 and March 31, 2014, there were no short‑term borrowings and related securitized accounts receivable outstanding under the Facility. | |
The Facility contains requirements relating to the performance of the accounts receivable and covenants relating to the Company. If we do not comply with these covenants, our ability to use the Facility may be suspended and repayment of any outstanding balances under the Facility may be required. At June 30, 2014 and March 31, 2014, we were in compliance with all covenants. | |
Revolving Credit Facility | |
We have a syndicated $1.3 billion five-year senior unsecured revolving credit facility, which expires in September 2016. Borrowings under this facility bear interest based upon either the London Interbank Offered Rate or a prime rate. There were no borrowings under this facility during the first quarters of 2015 and 2014. As of June 30, 2014 and March 31, 2014, there were no amounts outstanding under this facility. |
Pension_Benefits_Pension_Benef
Pension Benefits Pension Benefits | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' | |||||||||||||||
Pension Benefits | ||||||||||||||||
Net periodic expense for the defined pension benefit plans of the Company and Celesio was $11 million for the first quarters of 2015 and 2014. Cash contributions to these plans were $15 million and $5 million for the first quarters of 2015 and 2014. The increase in contributions in 2015 compared to 2014 is primarily related to defined benefit pension plans of Celesio, which we acquired in the fourth quarter of 2014. | ||||||||||||||||
The net periodic expense for our pension plans, which includes net pension expense for Celesio in the first quarter of 2015, is as follows: | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||
Quarter Ended June 30, | Quarter Ended June 30, | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost - benefits earned during the year | $ | — | $ | 1 | $ | 4 | $ | 1 | ||||||||
Interest cost on projected benefit obligation | 5 | 5 | 9 | 1 | ||||||||||||
Expected return on assets | (5 | ) | (5 | ) | (7 | ) | (2 | ) | ||||||||
Amortization of unrecognized actuarial loss, prior service costs and net transitional obligation | 4 | 9 | 1 | 1 | ||||||||||||
Net periodic pension expense | $ | 4 | $ | 10 | $ | 7 | $ | 1 | ||||||||
The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service periods. |
Hedging_Activities
Hedging Activities | 3 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||||||
Hedging Activities | |||||||||||||||||||||
In the normal course of business, we are exposed to interest rate changes and foreign currency fluctuations. At times, we limit these risks through the use of derivatives such as interest rate swaps and forward foreign exchange contracts. In accordance with our policy, derivatives are only used for hedging purposes. We do not use derivatives for trading or speculative purposes. | |||||||||||||||||||||
Foreign currency rate risk | |||||||||||||||||||||
Prior to the acquisition of Celesio, the majority of our operations were conducted in U. S. dollars; however, certain assets and liabilities, revenues and expense and purchasing activities were incurred in and exposed to other currencies. We have established certain foreign currency rate risk programs that manage the impact of foreign currency fluctuation. These programs are utilized on a transactional basis when we consider there to be a risk in fair value or volatility in cash flows. These programs reduce but do not entirely eliminate foreign currency rate risk. | |||||||||||||||||||||
Historically, we have entered into forward contracts and a foreign currency option to hedge against cash flows denominated primarily in Canadian dollars, Euros and British pounds. At June 30, 2014 and March 31, 2014, forward contracts having a total notional value of $463 million were designated for hedge accounting. These contracts will mature between March 2015 and March 2020. Changes in the fair values for contracts designated for hedge accounting are recorded to accumulated other comprehensive income and reclassified into earnings in the same period in which the hedged transaction affects earnings; amounts recorded to earnings for these contracts were not material during the first quarters of 2015 and 2014. Changes in the fair values for contracts not designated for hedge accounting are recorded directly to earnings; amounts recorded to earnings for these contracts were not material during the first quarter of 2014. All forward contracts were designated for hedge accounting during the first quarter of 2015. | |||||||||||||||||||||
Celesio has a number of forward contracts to hedge against cash flows denominated primarily in British pounds and other European currencies. These contracts will mature from July 2014 to June 2015. None of these contracts were designated for hedge accounting and accordingly, changes in the fair value of these contracts are recorded directly in earnings. At June 30, 2014 and March 31, 2014, the total notional values of these contracts were $1,449 million and $1,091 million. Amounts recorded to earnings were not material during the first quarter of 2015. | |||||||||||||||||||||
Interest rate risk | |||||||||||||||||||||
Celesio also has interest rate swaps to hedge the interest rate risk associated with Celesio’s variable rate debt. Interest rate swaps are used to modify the market risk exposures in connection with the variable rate debt to achieve primarily Euro dollar fixed rate interest expense. The interest rate swap transactions generally involve the exchange of floating or fixed interest payments. The interest rate swaps will mature through September 2014. These contracts are not designated for hedge accounting and, accordingly, changes in the fair value of the swaps are recorded directly in earnings. At June 30, 2014 and March 31, 2014, the total gross notional values of these contracts were $68 million and $96 million. Amounts recorded to earnings were not material during the first quarter of 2015. | |||||||||||||||||||||
Information regarding the fair value of derivatives on a gross basis is as follows: | |||||||||||||||||||||
Balance Sheet | 30-Jun-14 | 31-Mar-14 | |||||||||||||||||||
Caption | Fair Value of | U.S. Dollar Notional | Fair Value of | U.S Dollar Notional | |||||||||||||||||
Derivative | Derivative | ||||||||||||||||||||
(In millions) | Asset | Liability | Asset | Liability | |||||||||||||||||
Derivatives designated for hedge accounting | |||||||||||||||||||||
Foreign exchange | Prepaid expenses and other | $ | 2 | $ | — | $ | 64 | $ | 4 | $ | — | $ | 64 | ||||||||
contracts (current) | |||||||||||||||||||||
Foreign exchange | Other assets | 15 | — | 399 | 27 | — | 399 | ||||||||||||||
contracts (non-current) | |||||||||||||||||||||
Total | $ | 17 | $ | — | $ | 31 | $ | — | |||||||||||||
Derivatives not designated for hedge accounting | |||||||||||||||||||||
Foreign exchange | Prepaid expenses and other | $ | 2 | $ | — | $ | 174 | $ | 2 | $ | — | $ | 255 | ||||||||
contracts (current) | |||||||||||||||||||||
Foreign exchange | Other accrued liabilities | — | 26 | 1,275 | — | 13 | 836 | ||||||||||||||
contracts (current) | |||||||||||||||||||||
Interest rate swap contracts (current) | Other accrued liabilities | — | — | 68 | — | 1 | 96 | ||||||||||||||
Total | $ | 2 | $ | 26 | $ | 2 | $ | 14 | |||||||||||||
Refer to Financial Note 11, "Fair Value Measurements," for more information on these recurring fair value measurements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Measurements | ' |
Fair Value Measurements | |
At June 30, 2014 and March 31, 2014, the carrying amounts of cash, cash equivalents, restricted cash, marketable securities receivables, drafts and accounts payable and other current liabilities generally approximated their estimated fair values because of the short maturity of these financial instruments. | |
Our long-term debt and other financing are carried at amortized cost. The carrying amounts and estimated fair values of these liabilities were $10.2 billion and $10.7 billion at June 30, 2014 and $10.4 billion and $10.8 billion at March 31, 2014. The estimated fair values of our long-term debt and other financing were 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. | |
Included in cash and cash equivalents at June 30, 2014 and March 31, 2014 were investments in money market funds, time deposits and repurchase agreements of $3.4 billion and $2.9 billion, which are reported at fair value. The fair value of these investments was determined by using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs under the fair value measurements and disclosure guidance. The carrying value of all other cash equivalents approximates their fair value due to their relatively short-term nature. | |
Fair values of our forward foreign currency derivatives were determined using quoted market prices of similar instruments in an active market 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 more information on our forward foreign currency derivatives. | |
There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the quarters ended June 30, 2014 and 2013. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Commitments and Contingent Liabilities | |
In addition to commitments and obligations in the ordinary course of business, we are subject to various claims, other pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. As described below, many of these proceedings are at preliminary stages and many seek an indeterminate amount of damages. | |
When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate a range of possible loss. When a loss is probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. | |
Disclosure also is provided when it is reasonably possible that a loss will be incurred or when it is reasonably possible that the amount of a loss will exceed the recorded provision. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Such factors bear directly on whether it is possible to reasonably estimate a range of potential loss and boundaries of high and low estimates. | |
Significant developments in previously reported proceedings and in other litigation and claims, since the filing of our 2014 Annual Report are set out below. Unless otherwise stated, we are currently unable to estimate a range of reasonably possible losses for the unresolved proceedings described below. Should any one or a combination of more than one of these proceedings be successful, or should we determine to settle any or a combination of these matters, we may be required to pay substantial sums, become subject to the entry of an injunction or be forced to change the manner in which we operate our business, which could have a material adverse impact on our financial position or results of operations. | |
Litigation, Government Subpoenas and Investigations | |
On May 21, 2014, four hedge funds managed by Magnetar Capital filed a complaint against Dragonfly GmbH & Co KGaA (“Dragonfly”), a wholly-owned subsidiary of the Company, in a German court in Frankfurt, Germany, alleging that Dragonfly violated German takeover law in connection with the Company’s acquisition of Celesio by paying more to some holders of Celesio’s convertible bonds than it paid to the shareholders of Celesio’s stock, and seeking approximately $356,000 (or €261,000) in damages plus an unspecified amount of interest, Magnetar Capital Master Fund Ltd. et al. v. Dragonfly GmbH & Co KGaA, (No. 3-05 O 44/14). Other minority shareholders may seek to file similar lawsuits alleging the same claim, seeking damages based on their shares of Celesio stock. Dragonfly has not yet responded to the complaint. | |
On June 17, 2014, U.S. Oncology Specialty, LP (“USOS”), an indirect wholly-owned subsidiary of the Company, was served with a fifth amended qui tam complaint filed in the United States District Court for the Eastern District of New York by a relator, purportedly on behalf of the United States and twelve states, against USOS and fifteen oncology practices, alleging that USOS facilitated the payment of illegal “kickbacks” from Amgen to the oncology practices in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Hanks v. U.S. Oncology Specialty, LP, et al., (CV 04-3983 (SJ)). Previously, the United States and the twelve states named in the operative complaint declined to intervene in the case. The Court set August 1, 2014 as the deadline for USOS and the other defendants to respond to the complaint. | |
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 also can lead to the assertion of claims or the commencement of civil or criminal legal proceedings against the Company and other members of the healthcare industry, as well as to settlements. Examples of such subpoenas and investigations are included in the Company’s 2014 Annual Report on Form 10-K, and include subpoenas from the U.S. Drug Enforcement Administration to certain of the Company’s pharmaceutical distribution facilities seeking information and records about the Company’s distribution of certain controlled substances. The Company is currently responding to these requests. In addition, as previously reported, the Company was informed in the third quarter of 2014 of an investigation by the United States Department of Justice through the United States Attorney’s Office for the Northern District of West Virginia of potential claims under the Comprehensive Drug Abuse Prevention and Control Act. The Company believes that the investigation is focused on the Company’s pharmaceutical distribution of certain controlled substances by its Landover, Maryland distribution center, which closed in 2012. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
Stockholders’ Equity | ||||||||||||||||
Each share of the Company’s outstanding common stock is permitted one vote on proposals presented to stockholders and is entitled to share equally in any dividends declared by the Company’s Board of Directors (the “Board”). | ||||||||||||||||
In July 2013, the Company’s quarterly dividend was raised from $0.20 to $0.24 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. | ||||||||||||||||
The total authorization outstanding for repurchases of the Company’s common stock was $340 million at June 30, 2014. | ||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||
Information regarding other comprehensive income (loss) including noncontrolling interests, net of tax, by component are as follows: | ||||||||||||||||
Quarter Ended June 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Foreign currency translation adjustments | ||||||||||||||||
Foreign currency translation adjustments arising during period, net of income tax expense of nil and $2 (1) | $ | 98 | $ | (61 | ) | |||||||||||
Unrealized gains on cash flow hedges | ||||||||||||||||
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil and nil | (2 | ) | 1 | |||||||||||||
Changes in retirement-related benefit plans | ||||||||||||||||
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of $1 and $4 (2) | 3 | 7 | ||||||||||||||
Foreign currency translation adjustments, net of income tax expense of nil and nil | (1 | ) | — | |||||||||||||
2 | 7 | |||||||||||||||
Other comprehensive income (loss), net of tax | $ | 98 | $ | (53 | ) | |||||||||||
-1 | The first quarter of 2015 includes net foreign currency translation loss of $12 million attributable to noncontrolling interests. | |||||||||||||||
-2 | Pre-tax amount reclassified into cost of sales and operating expenses in the condensed consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations. | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Information regarding changes in McKesson’s accumulated other comprehensive loss, net of tax, by component are as follows: | ||||||||||||||||
(In millions) | Foreign Currency Translation Adjustments, Net of Tax | Unrealized Losses on Cash Flow Hedges, | Unrealized Net Loss and Other Components of Benefit Plans, Net of Tax | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Net of Tax | ||||||||||||||||
Balance at March 31, 2014 | $ | 168 | $ | (11 | ) | $ | (160 | ) | $ | (3 | ) | |||||
Other comprehensive income (loss) before reclassifications | 110 | (2 | ) | — | 108 | |||||||||||
Amounts reclassified to earnings and other | — | — | 2 | 2 | ||||||||||||
Other comprehensive income (loss) | 110 | (2 | ) | 2 | 110 | |||||||||||
Balance at June 30, 2014 | $ | 278 | $ | (13 | ) | $ | (158 | ) | $ | 107 | ||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||
Segment Information | ||||||||
We report our operations in two operating segments: McKesson Distribution Solutions and McKesson Technology Solutions. The factors for determining the reportable segments included the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments on a number of measures, including operating profit before interest expense, income taxes and results from discontinued operations. | ||||||||
Financial information relating to our reportable operating segments and reconciliations to the condensed consolidated totals is as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Revenues | ||||||||
Distribution Solutions (1) | ||||||||
North America pharmaceutical distribution and services | $ | 34,304 | $ | 30,046 | ||||
International pharmaceutical distribution and services | 7,607 | — | ||||||
Medical-Surgical distribution & services | 1,379 | 1,357 | ||||||
Total Distribution Solutions | 43,290 | 31,403 | ||||||
Technology Solutions - products and services | 768 | 836 | ||||||
Total Revenues | $ | 44,058 | $ | 32,239 | ||||
Operating profit | ||||||||
Distribution Solutions | $ | 748 | $ | 619 | ||||
Technology Solutions (2) | 68 | 127 | ||||||
Total | 816 | 746 | ||||||
Corporate Expenses, Net | (108 | ) | (85 | ) | ||||
Interest Expense | (101 | ) | (59 | ) | ||||
Income from Continuing Operations Before Income Taxes | $ | 607 | $ | 602 | ||||
-1 | Revenues derived from services represent less than 2% of this segment’s total revenues. | |||||||
-2 | Technology Solutions operating profit for the quarter ended June 30, 2014 includes a charge of $34 million related to the retained workforce business within our International Technology business. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 3 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation: The condensed consolidated financial statements of McKesson Corporation (“McKesson,” the “Company,” or “we” and other similar pronouns) include the financial statements of all wholly-owned subsidiaries and majority‑owned or controlled companies. We also evaluate our ownership, contractual and other interests in entities to determine if they are variable interest entities (“VIEs”), if we have a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve judgment and the use of estimates and assumptions based on available historical information and management’s judgment, among other factors. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method and our proportionate share of income or loss is recorded in other income, net. Intercompany transactions and balances have been eliminated. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and footnote disclosures normally included in the annual consolidated financial statements. | |
Use Of Estimates | ' |
To prepare the financial statements in conformity with GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of these financial statements and income and expenses during the reporting period. Actual amounts may differ from these estimated amounts. In our opinion, the accompanying unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. | |
The results of operations for the quarter ended June 30, 2014 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 our Annual Report on Form 10-K for the fiscal year ended March 31, 2014 previously filed with the SEC on May 14, 2014 (“2014 Annual Report”). | |
Reclassifications | ' |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
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. | |
Recently Adopted Accounting Pronouncements | ' |
Cumulative Translation Adjustments: In the first quarter of 2015, we adopted amended guidance for parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The amended guidance requires the release of any cumulative translation adjustment into net income only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. Also, it requires the release of all or a pro rata portion of the cumulative translation adjustment to net income in case of sale of an equity method investment that is a foreign entity. The adoption of this amended guidance did not have a material effect on our condensed financial statements. | |
Recently Issued Accounting Pronouncements Not Yet Adopted | ' |
Discontinued Operations: In April 2014, amended guidance was issued for reporting of discontinued operations and disclosures of disposals of components. The amended guidance raises the threshold for disposals to qualify as discontinued operations and permits significant continuing involvement and continuing cash flows with the discontinued operation. In addition, the amended guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The amended guidance is effective for us prospectively commencing in the first quarter of 2016. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. | |
Revenue Recognition: In May 2014, amended guidance was issued for recognizing revenue from contracts with customers. The amended guidance eliminated industry specific guidance and applies to all companies. Revenues will be recognized when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled for that good or service. Revenue from a contract that contains multiple performance obligations is allocated to each performance obligation generally on a relative standalone selling price basis. The amended guidance also requires additional quantitative and qualitative disclosures. The amended guidance is effective for us commencing in the first quarter of 2018. The amended guidance allows for either full retrospective adoption or modified retrospective adoption. Early adoption is not permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. |
Business_Combinations_Tables
Business Combinations (Tables) | 3 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Fair Value Of Assets Acquired And Liabilities Assumed | ' | |||||||||||
The following table summarizes the preliminary recording of the fair values of the assets acquired and liabilities assumed as of the acquisition date. | ||||||||||||
(In millions) | Amounts | Measurement Period Adjustments | Amounts Recognized as of Acquisition Date (Provisional as Adjusted) | |||||||||
Previously Recognized as of | ||||||||||||
Acquisition Date | ||||||||||||
(Provisional)(1) | ||||||||||||
Receivables | $ | 3,425 | $ | (3 | ) | $ | 3,422 | |||||
Other current assets, net of cash and cash equivalents | 2,413 | (3 | ) | 2,410 | ||||||||
acquired | ||||||||||||
Goodwill | 3,570 | 436 | 4,006 | |||||||||
Intangible assets | 3,018 | (536 | ) | 2,482 | ||||||||
Other long-term assets | 1,272 | (44 | ) | 1,228 | ||||||||
Current liabilities | (4,096 | ) | (6 | ) | (4,102 | ) | ||||||
Short-term borrowings and current portion of long-term debt | (1,990 | ) | — | (1,990 | ) | |||||||
Long-term debt | (322 | ) | — | (322 | ) | |||||||
Other long-term liabilities | (1,293 | ) | 156 | (1,137 | ) | |||||||
Fair value of net assets, less cash and cash equivalents | 5,997 | — | 5,997 | |||||||||
Less: Noncontrolling Interests | (1,500 | ) | — | (1,500 | ) | |||||||
Net assets acquired, less cash and cash equivalents | $ | 4,497 | $ | — | $ | 4,497 | ||||||
-1 | As previously reported in our Form 10-K for the year ended March 31, 2014. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Schedule of Results from Discontinued Operations | ' | |||||||
A summary of results of discontinued operations is as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Revenues | $ | 36 | $ | 85 | ||||
Loss from discontinued operations | $ | (15 | ) | $ | (3 | ) | ||
Income tax (expense) benefit | 1 | (1 | ) | |||||
Loss from discontinued operations, net of tax | $ | (14 | ) | $ | (4 | ) |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Basic And Diluted Earnings Per Common Share | ' | |||||||
The computations for basic and diluted earnings per common share are as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions, except per share amounts) | 2014 | 2013 | ||||||
Income from continuing operations | $ | 425 | $ | 428 | ||||
Net income attributable to noncontrolling interests | (8 | ) | — | |||||
Income from continuing operations attributable to McKesson | 417 | 428 | ||||||
Loss from discontinued operations, net of tax | (14 | ) | (4 | ) | ||||
Net income attributable to McKesson | $ | 403 | $ | 424 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 231 | 227 | ||||||
Effect of dilutive securities: | ||||||||
Options to purchase common stock | 2 | 2 | ||||||
Restricted stock units | 2 | 3 | ||||||
Diluted | 235 | 232 | ||||||
Earnings (loss) per common share attributable to McKesson: (1) | ||||||||
Diluted | ||||||||
Continuing operations | $ | 1.78 | $ | 1.84 | ||||
Discontinued operations | (0.06 | ) | (0.01 | ) | ||||
Total | $ | 1.72 | $ | 1.83 | ||||
Basic | ||||||||
Continuing operations | $ | 1.81 | $ | 1.88 | ||||
Discontinued operations | (0.06 | ) | (0.02 | ) | ||||
Total | $ | 1.75 | $ | 1.86 | ||||
-1 | Certain computations may reflect rounding adjustments. |
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets, Net (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Changes In The Carrying Amount Of Goodwill | ' | |||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||||
(In millions) | Distribution | Technology | Total | |||||||||||||||||||||||
Solutions | Solutions | |||||||||||||||||||||||||
Balance, March 31, 2014 | $ | 8,078 | $ | 1,849 | $ | 9,927 | ||||||||||||||||||||
Goodwill acquired | 14 | — | 14 | |||||||||||||||||||||||
Acquisition accounting and other | 445 | — | 445 | |||||||||||||||||||||||
Foreign currency translation adjustments and other | 41 | 4 | 45 | |||||||||||||||||||||||
Balance, June 30, 2014 | $ | 8,578 | $ | 1,853 | $ | 10,431 | ||||||||||||||||||||
Information Regarding Intangible Assets | ' | |||||||||||||||||||||||||
Information regarding intangible assets is as follows: | ||||||||||||||||||||||||||
June 30, 2014 | March 31, 2014 | |||||||||||||||||||||||||
(Dollars in millions) | Weighted | Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Average | Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||||||||
Remaining | Amount | Amount | Amount | Amount | ||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||
Period | ||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||
Customer lists | 9 | $ | 3,022 | $ | (937 | ) | $ | 2,085 | $ | 3,384 | $ | (863 | ) | $ | 2,521 | |||||||||||
Service agreements | 16 | 1,014 | (189 | ) | 825 | 995 | (173 | ) | 822 | |||||||||||||||||
Pharmacy licenses | 27 | 1,051 | (28 | ) | 1,023 | 1,219 | (11 | ) | 1,208 | |||||||||||||||||
Trademarks and trade names | 15 | 377 | (68 | ) | 309 | 371 | (59 | ) | 312 | |||||||||||||||||
Technology | 3 | 218 | (177 | ) | 41 | 219 | (173 | ) | 46 | |||||||||||||||||
Other | 4 | 173 | (66 | ) | 107 | 165 | (52 | ) | 113 | |||||||||||||||||
Total | $ | 5,855 | $ | (1,465 | ) | $ | 4,390 | $ | 6,353 | $ | (1,331 | ) | $ | 5,022 | ||||||||||||
Pension_Benefits_Pension_Benef1
Pension Benefits Pension Benefits (Tables) | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | ' | |||||||||||||||
The net periodic expense for our pension plans, which includes net pension expense for Celesio in the first quarter of 2015, is as follows: | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||
Quarter Ended June 30, | Quarter Ended June 30, | |||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Service cost - benefits earned during the year | $ | — | $ | 1 | $ | 4 | $ | 1 | ||||||||
Interest cost on projected benefit obligation | 5 | 5 | 9 | 1 | ||||||||||||
Expected return on assets | (5 | ) | (5 | ) | (7 | ) | (2 | ) | ||||||||
Amortization of unrecognized actuarial loss, prior service costs and net transitional obligation | 4 | 9 | 1 | 1 | ||||||||||||
Net periodic pension expense | $ | 4 | $ | 10 | $ | 7 | $ | 1 | ||||||||
Hedging_Activities_Derivative_
Hedging Activities Derivative Fair Value Table (Tables) | 3 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||||||
Information regarding the fair value of derivatives on a gross basis is as follows: | |||||||||||||||||||||
Balance Sheet | 30-Jun-14 | 31-Mar-14 | |||||||||||||||||||
Caption | Fair Value of | U.S. Dollar Notional | Fair Value of | U.S Dollar Notional | |||||||||||||||||
Derivative | Derivative | ||||||||||||||||||||
(In millions) | Asset | Liability | Asset | Liability | |||||||||||||||||
Derivatives designated for hedge accounting | |||||||||||||||||||||
Foreign exchange | Prepaid expenses and other | $ | 2 | $ | — | $ | 64 | $ | 4 | $ | — | $ | 64 | ||||||||
contracts (current) | |||||||||||||||||||||
Foreign exchange | Other assets | 15 | — | 399 | 27 | — | 399 | ||||||||||||||
contracts (non-current) | |||||||||||||||||||||
Total | $ | 17 | $ | — | $ | 31 | $ | — | |||||||||||||
Derivatives not designated for hedge accounting | |||||||||||||||||||||
Foreign exchange | Prepaid expenses and other | $ | 2 | $ | — | $ | 174 | $ | 2 | $ | — | $ | 255 | ||||||||
contracts (current) | |||||||||||||||||||||
Foreign exchange | Other accrued liabilities | — | 26 | 1,275 | — | 13 | 836 | ||||||||||||||
contracts (current) | |||||||||||||||||||||
Interest rate swap contracts (current) | Other accrued liabilities | — | — | 68 | — | 1 | 96 | ||||||||||||||
Total | $ | 2 | $ | 26 | $ | 2 | $ | 14 | |||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | |||||||||||||||
Information regarding other comprehensive income (loss) including noncontrolling interests, net of tax, by component are as follows: | ||||||||||||||||
Quarter Ended June 30, | ||||||||||||||||
(In millions) | 2014 | 2013 | ||||||||||||||
Foreign currency translation adjustments | ||||||||||||||||
Foreign currency translation adjustments arising during period, net of income tax expense of nil and $2 (1) | $ | 98 | $ | (61 | ) | |||||||||||
Unrealized gains on cash flow hedges | ||||||||||||||||
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil and nil | (2 | ) | 1 | |||||||||||||
Changes in retirement-related benefit plans | ||||||||||||||||
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of $1 and $4 (2) | 3 | 7 | ||||||||||||||
Foreign currency translation adjustments, net of income tax expense of nil and nil | (1 | ) | — | |||||||||||||
2 | 7 | |||||||||||||||
Other comprehensive income (loss), net of tax | $ | 98 | $ | (53 | ) | |||||||||||
-1 | The first quarter of 2015 includes net foreign currency translation loss of $12 million attributable to noncontrolling interests. | |||||||||||||||
-2 | Pre-tax amount reclassified into cost of sales and operating expenses in the condensed consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations. | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Information regarding changes in McKesson’s accumulated other comprehensive loss, net of tax, by component are as follows: | ||||||||||||||||
(In millions) | Foreign Currency Translation Adjustments, Net of Tax | Unrealized Losses on Cash Flow Hedges, | Unrealized Net Loss and Other Components of Benefit Plans, Net of Tax | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Net of Tax | ||||||||||||||||
Balance at March 31, 2014 | $ | 168 | $ | (11 | ) | $ | (160 | ) | $ | (3 | ) | |||||
Other comprehensive income (loss) before reclassifications | 110 | (2 | ) | — | 108 | |||||||||||
Amounts reclassified to earnings and other | — | — | 2 | 2 | ||||||||||||
Other comprehensive income (loss) | 110 | (2 | ) | 2 | 110 | |||||||||||
Balance at June 30, 2014 | $ | 278 | $ | (13 | ) | $ | (158 | ) | $ | 107 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||
Financial information relating to our reportable operating segments and reconciliations to the condensed consolidated totals is as follows: | ||||||||
Quarter Ended June 30, | ||||||||
(In millions) | 2014 | 2013 | ||||||
Revenues | ||||||||
Distribution Solutions (1) | ||||||||
North America pharmaceutical distribution and services | $ | 34,304 | $ | 30,046 | ||||
International pharmaceutical distribution and services | 7,607 | — | ||||||
Medical-Surgical distribution & services | 1,379 | 1,357 | ||||||
Total Distribution Solutions | 43,290 | 31,403 | ||||||
Technology Solutions - products and services | 768 | 836 | ||||||
Total Revenues | $ | 44,058 | $ | 32,239 | ||||
Operating profit | ||||||||
Distribution Solutions | $ | 748 | $ | 619 | ||||
Technology Solutions (2) | 68 | 127 | ||||||
Total | 816 | 746 | ||||||
Corporate Expenses, Net | (108 | ) | (85 | ) | ||||
Interest Expense | (101 | ) | (59 | ) | ||||
Income from Continuing Operations Before Income Taxes | $ | 607 | $ | 602 | ||||
-1 | Revenues derived from services represent less than 2% of this segment’s total revenues. | |||||||
-2 | Technology Solutions operating profit for the quarter ended June 30, 2014 includes a charge of $34 million related to the retained workforce business within our International Technology business. |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Details) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | |||||
Jun. 30, 2014 | Feb. 06, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | |
USD ($) | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | The 2014 and 2018 Bonds [Member] | The 2014 and 2018 Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | |
USD ($) | USD ($) | EUR (€) | country | Celesio [Member] | Celesio [Member] | Celesio [Member] | |||
USD ($) | |||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Date of Acquisition | ' | 6-Feb-14 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | ' | ' | ' | ' | 77.60% | ' | ' | ' |
Name of Acquired Entity | ' | 'Celesio AG | ' | ' | ' | ' | ' | ' | ' |
Cash Paid for Acquisition | ' | $4,500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Debt | ' | 2,300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Percentage Of Voting Interests Acquired Fully Diluted | 75.90% | ' | ' | 75.90% | 75.40% | 75.60% | ' | ' | ' |
Description of Acquired Entity | ' | 'Celesio is an international wholesale and retail company and a provider of logistics and services to the pharmaceutical and healthcare sectors. Celesio’s headquarters is in Stuttgart, Germany and it operates in 14 countries around the world | ' | ' | ' | ' | ' | ' | ' |
Number of Countries in which Entity Operates | ' | ' | ' | ' | ' | 14 | ' | ' | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | ' | ' | ' | ' | ' | 42,238 | 20,900,000 | ' |
Consolidation, Less Than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase Of Interest By Parent, Common Shares | 1,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' |
Business Acquisition Tender Offer Price | ' | ' | ' | € 23.50 | ' | ' | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | 32,000,000 | ' | 32,000,000 | ' | ' | ' | ' | ' | ' |
Annual Recurring Compensation to NCI Under Domination Agreement, Per Share | ' | ' | ' | € 0.83 | ' | ' | ' | ' | ' |
Put Option for NCI Under Domination Agreement, Celesio Per Share | ' | ' | ' | € 22.99 | ' | ' | ' | ' | ' |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | $536,000,000 |
Business_Combinations_Fair_Val
Business Combinations (Fair Value Of Assets Acquired And Liabilities Assumed) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
In Millions, unless otherwise specified | Amounts Previously Recognized As Of Acquisition Date | Purchase Price Allocation Adjustments | Amounts Recognized As Of Acquisition Date As Adjusted | |||
Celesio [Member] | Celesio [Member] | Celesio [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | |
Receivables | ' | ' | $3,425 | [1] | ($3) | $3,422 |
Other current assets, net of cash and cash equivalents acquired | ' | ' | 2,413 | [1] | -3 | 2,410 |
Goodwill | 10,431 | 9,927 | 3,570 | [1] | 436 | 4,006 |
Intangible assets | ' | ' | 3,018 | [1] | -536 | 2,482 |
Other long-term assets | ' | ' | 1,272 | [1] | -44 | 1,228 |
Current liabilities | ' | ' | -4,096 | [1] | -6 | -4,102 |
Short-term borrowings and current portion of long-term debt | ' | ' | -1,990 | [1] | 0 | -1,990 |
Long-term debt | ' | ' | -322 | [1] | 0 | -322 |
Other long-term liabilities | ' | ' | -1,293 | [1] | 156 | -1,137 |
Fair value of net assets, less cash and cash equivalents | ' | ' | 5,997 | [1] | 0 | 5,997 |
Less: Noncontrolling Interests | ' | ' | -1,500 | [1] | 0 | -1,500 |
Net assets acquired, less cash and cash equivalents | ' | ' | $4,497 | [1] | $0 | $4,497 |
[1] | (1)As previously reported in our Form 10-K for the year ended March 31, 2014. |
Noncontrolling_Interests_Nonco1
Noncontrolling Interests Noncontrolling Interests (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Noncontrolling Interest [Abstract] | ' |
Business Acquisition, Percentage Of Voting Interests Acquired Fully Diluted | 75.90% |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | $32 |
Consolidation, Less Than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase Of Interest By Parent, Common Shares | 1 |
Consolidation, Less Than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase Of Interest By Parent, Percent Ownership | 0.50% |
Noncontrolling Interest, Period Increase (Decrease) | 35 |
Consolidation, Less Than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Paid In Capital | 3 |
Consolidation, Less Than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net Income Attributable To Parent and Transfers from NCI | $406 |
Discontinued_Operations_Discon
Discontinued Operations Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ' |
Proceeds from Divestiture of Businesses | ' | $55 | ' |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | ' | -5 | ' |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | ' | -7 | ' |
Goodwill and Intangible Asset Impairment | ' | 80 | ' |
Goodwill and Intangible Asset Impairment, After-tax Charge | ' | 80 | ' |
Assets of Disposal Group, Including Discontinued Operation | 138 | ' | 267 |
Liabilities of Disposal Group, Including Discontinued Operation | 144 | ' | 248 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Assets, Fair Value Adjustment | 34 | ' | ' |
Assets Fair Value Adjustment, Net of Tax | 27 | ' | ' |
Cost of Sales [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Assets, Fair Value Adjustment | 32 | ' | ' |
Operating Expense [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Assets, Fair Value Adjustment | $2 | ' | ' |
Discontinued_Operations_Discon1
Discontinued Operations Discontinued Operations (Schedule of Results from Discontinued Operations) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Revenues | $36 | $85 |
Loss from discontinued operations | -15 | -3 |
Income tax (expense) benefit | 1 | -1 |
Loss from discontinued operations, net of tax | ($14) | ($4) |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Income Tax [Line Items] | ' |
Unrecognized tax benefits | $582 |
Unrecognized tax benefits that would impact income tax expense and the effective tax rate | 427 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | -158 |
Income Tax Examination, Penalties and Interest Expense | 4 |
Accrued interest and penalties on unrecognized tax benefits | 161 |
Canada Revenue Agency Assessments [Member] | ' |
Income Tax [Line Items] | ' |
Tax assessments received | 261 |
Internal Revenue Service (IRS) [Member] | ' |
Income Tax [Line Items] | ' |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | 21 |
Tax Adjustments, Settlements, and Unusual Provisions | ($17) |
Earnings_Per_Common_Share_Narr
Earnings Per Common Share (Narrative) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 3 |
Earnings_Per_Common_Share_Basi
Earnings Per Common Share (Basic and Diluted Earnings per Common Share) (Details) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Schedule of Earnings Per Share [Line Items] | ' | ' | ||
Income from continuing operations | $425 | $428 | ||
Net income attributable to noncontrolling interests | -8 | 0 | ||
Income from continuing operations attributable to McKesson | 417 | 428 | ||
Loss from discontinued operations, net of tax | -14 | -4 | ||
Net income attributable to McKesson | $403 | $424 | ||
Weighted average common shares outstanding: | ' | ' | ||
Basic | 231 | 227 | ||
Effect of dilutive securities: | ' | ' | ||
Options to purchase common stock | 2 | 2 | ||
Restricted stock units | 2 | 3 | ||
Diluted | 235 | 232 | ||
Earnings (Loss) Per Common Share Attributable To McKesson (Diluted) | ' | ' | ||
Continuing operations | $1.78 | [1] | $1.84 | [1] |
Discontinued operations | ($0.06) | [1] | ($0.01) | [1] |
Total | $1.72 | [1] | $1.83 | [1] |
Earnings (Loss) Per Common Share Attributable To McKesson (Basic) | ' | ' | ||
Continuing operations | $1.81 | [1] | $1.88 | [1] |
Discontinued operations | ($0.06) | [1] | ($0.02) | [1] |
Total | $1.75 | [1] | $1.86 | [1] |
[1] | Certain computations may reflect rounding adjustments. |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets, Net Goodwill And Intangible Assets, Net (Narrative - Goodwill) (Details) (Technology Solutions [Member], USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Technology Solutions [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, Impaired, Accumulated Impairment Loss | $36 | $36 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets, Net (Narrative - Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Amortization expense of intangible assets | $130 | $71 |
Annual Amortization Expense, 2015 | 383 | ' |
Annual Amortization Expense, 2016 | 468 | ' |
Annual Amortization Expense, 2017 | 429 | ' |
Annual Amortization Expense, 2018 | 410 | ' |
Annual Amortization Expense, 2019 | 382 | ' |
Annual Amortization Expense, After 2019 | $2,318 | ' |
Goodwill_And_Intangible_Assets4
Goodwill And Intangible Assets, Net (Changes In The Carrying Amount Of Goodwill) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Line Items] | ' |
Beginning Balance | $9,927 |
Goodwill acquired | 14 |
Acquisition accounting and other | 445 |
Foreign currency translation adjustments and other | 45 |
Ending Balance | 10,431 |
Distribution Solutions [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 8,078 |
Goodwill acquired | 14 |
Acquisition accounting and other | 445 |
Foreign currency translation adjustments and other | 41 |
Ending Balance | 8,578 |
Technology Solutions [Member] | ' |
Goodwill [Line Items] | ' |
Beginning Balance | 1,849 |
Goodwill acquired | 0 |
Acquisition accounting and other | 0 |
Foreign currency translation adjustments and other | 4 |
Ending Balance | $1,853 |
Goodwill_And_Intangible_Assets5
Goodwill And Intangible Assets, Net (Information Regarding Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Intangible assets | ' | ' |
Gross Carrying Amount | $5,855 | $6,353 |
Accumulated Amortization | -1,465 | -1,331 |
Net Carrying Amount | 4,390 | 5,022 |
Customer lists | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '9 years | ' |
Gross Carrying Amount | 3,022 | 3,384 |
Accumulated Amortization | -937 | -863 |
Net Carrying Amount | 2,085 | 2,521 |
Service agreements | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '16 years | ' |
Gross Carrying Amount | 1,014 | 995 |
Accumulated Amortization | -189 | -173 |
Net Carrying Amount | 825 | 822 |
Pharmacy Licenses | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '27 years | ' |
Gross Carrying Amount | 1,051 | 1,219 |
Accumulated Amortization | -28 | -11 |
Net Carrying Amount | 1,023 | 1,208 |
Trademarks and trade names | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '15 years | ' |
Gross Carrying Amount | 377 | 371 |
Accumulated Amortization | -68 | -59 |
Net Carrying Amount | 309 | 312 |
Technology-Based Intangible Assets | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '3 years | ' |
Gross Carrying Amount | 218 | 219 |
Accumulated Amortization | -177 | -173 |
Net Carrying Amount | 41 | 46 |
Other | ' | ' |
Intangible assets | ' | ' |
Weighted Average Remaining Amortization Period (years) | '4 years | ' |
Gross Carrying Amount | 173 | 165 |
Accumulated Amortization | -66 | -52 |
Net Carrying Amount | $107 | $113 |
Debt_and_Financing_Activities_
Debt and Financing Activities Debt and Financing Activities (Celesio Debt) (Narrative) (Details) | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 |
USD ($) | USD ($) | Accounts Receivable Factoring Facility [Member] | Accounts Receivable Factoring Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility Due February Two Thousand Eighteen [Member] | Revolving Credit Facility Due February Two Thousand Eighteen [Member] | Revolving Credit Facility Due February Two Thousand Eighteen [Member] | Corporate Bond Securities [Member] | Corporate Bond Securities [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | |
Celesio [Member] | Celesio [Member] | USD ($) | USD ($) | USD ($) | Celesio [Member] | Celesio [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | |||
USD ($) | USD ($) | USD ($) | USD ($) | Celesio [Member] | Celesio [Member] | Celesio [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
USD ($) | EUR (€) | USD ($) | ||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 4.00% | 4.50% | 4.50% | 4.50% |
Long-term Debt | $10,200,000,000 | $10,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,226,000,000 | ' | $500,000,000 | ' | ' | $726,000,000 | ' | ' |
Current portion of long-term debt | 25,000,000 | 1,424,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,244,000,000 | ' | 507,000,000 | ' | ' | 737,000,000 | ' |
Credit Facility Capacity | ' | ' | 315,000,000 | ' | 1,300,000,000 | ' | ' | 2,000,000,000 | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | ' | ' | 30-Sep-15 | ' | 23-Sep-16 | ' | ' | ' | ' | 28-Feb-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | ' | 758,000,000 | ' | 0 | 0 | ' | 159,000,000 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Lines of Credit | ' | ' | 746,000,000 | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings Outstanding | ' | ' | $258,000,000 | $246,000,000 | $0 | ' | $0 | $321,000,000 | $188,000,000 | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_and_Financing_Activities_1
Debt and Financing Activities (Accounts Receivable Sales Facility and Revolving Credit Facility) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Feb. 06, 2014 | |
Accounts Receivable Sales Facility [Member] | Accounts Receivable Sales Facility [Member] | Accounts Receivable Sales Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | Celesio [Member] | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Percent Bonds Due October Eighteen Two Thousand Sixteen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | Four Point Five Percent Bonds Due April Twenty Six Two Thousand Seventeen [Member] | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility Capacity | $1,350,000,000 | ' | ' | $1,300,000,000 | ' | ' | $2,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Expiration Date | 15-Nov-14 | ' | ' | 23-Sep-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate Description | ' | ' | ' | 'bear interest based upon either the London Interbank Offered Rate or a prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | 0 | 100,000,000 | ' | 0 | 0 | ' | 159,000,000 | ' | ' | ' | ' | ' | ' | ' |
Repayments of Lines of Credit | 0 | 100,000,000 | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' |
Borrowings Outstanding | 0 | ' | 0 | 0 | ' | 0 | 321,000,000 | 188,000,000 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Compliance | 'we were in compliance with all covenants | ' | 'we were in compliance with all covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pledged Assets, Not Separately Reported, Finance Receivables | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 4.00% | 4.50% | 4.50% | 4.50% |
Pension_Benefits_Pension_Benef2
Pension Benefits Pension Benefits (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ' |
Net periodic pension expense | $11 | $11 |
Defined Benefit Plan, Contributions by Employer | $15 | $5 |
Defined Benefit Plan, Actuarial Losses, Percentage Exceeding Greater Of Projected Benefit Obligation Or Market Value of Assets | 10.00% | ' |
Pension_Benefits_Pension_Benef3
Pension Benefits Pension Benefits Tables (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net periodic pension expense | $11 | $11 |
United States Pension Plan of US Entity, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost - benefits earned during the year | 0 | 1 |
Interest cost on projected benefit obligation | 5 | 5 |
Expected return on assets | -5 | -5 |
Amortization of unrecognized actuarial loss, prior service costs and net transitional obligation | 4 | 9 |
Net periodic pension expense | 4 | 10 |
Foreign Pension Plan, Defined Benefit [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost - benefits earned during the year | 4 | 1 |
Interest cost on projected benefit obligation | 9 | 1 |
Expected return on assets | -7 | -2 |
Amortization of unrecognized actuarial loss, prior service costs and net transitional obligation | 1 | 1 |
Net periodic pension expense | $7 | $1 |
Hedging_Activities_Narrative_D
Hedging Activities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Foreign Exchange Contract [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Description of Foreign Currency Derivative Activities | 'manage the impact of foreign currency fluctuation | ' |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | $463 | $463 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 1,449 | 1,091 |
Interest Rate Swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Description of Interest Rate Derivative Activities | 'hedge the interest rate risk associated with Celesio’s variable rate debt | ' |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | $68 | $96 |
Derivative, Maturity Date | 30-Sep-14 | ' |
Minimum [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity of Foreign Currency Derivatives | 31-Mar-15 | ' |
Minimum [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity of Foreign Currency Derivatives | 31-Jul-14 | ' |
Maximum [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity of Foreign Currency Derivatives | 31-Mar-20 | ' |
Maximum [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity of Foreign Currency Derivatives | 30-Jun-15 | ' |
Hedging_Activities_Derivative_1
Hedging Activities Derivative Instruments Fair Value (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $2 | $2 |
Derivative Liability, Fair Value, Gross Liability | 26 | 14 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 17 | 31 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 2 | 4 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Notional Amount | 64 | 64 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 15 | 27 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Notional Amount | 399 | 399 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 2 | 2 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Notional Amount | 174 | 255 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 26 | 13 |
Derivative Liability, Notional Amount | 1,275 | 836 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 1 |
Derivative Liability, Notional Amount | $68 | $96 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Long-term Debt | $10,200,000,000 | $10,400,000,000 | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | ' | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Cash and Cash Equivalents, Fair Value Disclosure | 3,400,000,000 | 2,900,000,000 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Debt Instrument, Fair Value Disclosure | $10,700,000,000 | $10,800,000,000 | ' |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Narrative) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | EUR (€) | |
States | ||
Defendants | ||
Committments and Contingencies Disclosure [Abstract] | ' | ' |
Loss Contingency, Damages Sought, Value | $356 | € 261 |
Loss Contingency Number of States Filed On Behalf Of | 12 | 12 |
Loss Contingency, Number of Defendants | 15 | 15 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Stockholders' Equity [Line Items] | ' | ' |
Dividends Declared Per Common Share | $0.24 | $0.20 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $340 | ' |
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Noncontrolling Interest | $12 | ' |
Old Rate Per Share [Member] | ' | ' |
Stockholders' Equity [Line Items] | ' | ' |
Dividends Declared Per Common Share | ' | $0.20 |
New Rate Per Share [Member] | ' | ' |
Stockholders' Equity [Line Items] | ' | ' |
Dividends Declared Per Common Share | $0.24 | ' |
Stockholders_Equity_Other_Comp
Stockholders' Equity (Other Comprehensive Income (Loss), Net of Tax) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Equity [Abstract] | ' | ' | ||
Foreign currency translation adjustments arising during period, net of income tax expense of nil and $2 (1) | $98 | [1] | ($61) | [1] |
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil and nil | -2 | 1 | ||
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of $1 and $4 (2) | 3 | [2] | 7 | [2] |
Foreign currency translation adjustments, net of income tax expense of nil and nil | -1 | 0 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 2 | 7 | ||
Other comprehensive income (loss), net of tax | $98 | ($53) | ||
[1] | The first quarter of 2015 includes net foreign currency translation loss of $12 million attributable to noncontrolling interests. | |||
[2] | Pre-tax amount reclassified into cost of sales and operating expenses in the condensed consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations. |
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity (Other Comprehensive Income (Loss), Net of Tax) (Parentheticals) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Equity [Abstract] | ' | ' |
Foreign currency translation adjustments arising during period, income tax expense of nil and $2 | $0 | $2 |
Unrealized losses on cash flow hedges arising during period, income tax expense of nil and nil | 0 | 0 |
Amortization of actuarial loss, prior service cost and transition obligation, income tax expense of $1 and $4 | 1 | 4 |
Foreign currency translation adjustments, income tax expense of nil and nil | $0 | $0 |
Stockholders_Equity_Changes_in
Stockholders' Equity (Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Beginning balance | ($3) | ' |
Other Comprehensive Income (Loss), Net of Tax | 98 | -53 |
Ending balance | 107 | ' |
Foreign Currency Translation Adjustments, Net of Tax | ' | ' |
Beginning balance | 168 | ' |
Other comprehensive income (loss) before reclassifications | 110 | ' |
Amounts reclassified to earnings and other | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax | 110 | ' |
Ending balance | 278 | ' |
Unrealized Losses on Cash Flow Hedges, Net of Tax | ' | ' |
Beginning balance | -11 | ' |
Other comprehensive income (loss) before reclassifications | -2 | ' |
Amounts reclassified to earnings and other | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax | -2 | ' |
Ending balance | -13 | ' |
Unrealized Net Loss and Other Components of Benefit Plans, Net of Tax | ' | ' |
Beginning balance | -160 | ' |
Other comprehensive income (loss) before reclassifications | 0 | ' |
Amounts reclassified to earnings and other | 2 | ' |
Other Comprehensive Income (Loss), Net of Tax | 2 | ' |
Ending balance | -158 | ' |
Parent Company [Member] | ' | ' |
Beginning balance | -3 | ' |
Other comprehensive income (loss) before reclassifications | 108 | ' |
Amounts reclassified to earnings and other | 2 | ' |
Other Comprehensive Income (Loss), Net of Tax | 110 | ' |
Ending balance | $107 | ' |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Segment Reporting Information [Line Items] | ' |
Assets, Fair Value Adjustment | $34 |
Maximum [Member] | Distribution Solutions [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Revenue Derived From Services, Percentage | 2.00% |
Segment_Information_Schedule_o
Segment Information (Schedule of Segment Information) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | $44,058 | $32,239 | ||
Operating Income | 688 | 655 | ||
Interest Expense | -101 | -59 | ||
Income from Continuing Operations Before Income Taxes | 607 | 602 | ||
North America pharmaceutical distribution and services [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | 34,304 | [1] | 30,046 | [1] |
International pharmaceutical distribution and services [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | 7,607 | [1] | 0 | [1] |
Distribution Solutions [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | 43,290 | [1] | 31,403 | [1] |
Operating Income | 748 | 619 | ||
Medical-Surgical distribution & services [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | 1,379 | [1] | 1,357 | [1] |
Technology Solutions [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Segment Reporting Revenue From External Customers | 768 | 836 | ||
Operating Income | 68 | [2] | 127 | [2] |
Operating Segments [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Operating Income | 816 | 746 | ||
Corporate [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Corporate Expenses, Net | ($108) | ($85) | ||
[1] | Revenues derived from services represent less than 2% of this segment’s total revenues. | |||
[2] | perating profit for the quarter ended June 30, 2014 includes a charge of $34 million related to the retained workforce business within our International Technology business. |