Stockholders' Equity

9 Months Ended

Dec. 31, 2016

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 2015, the Company’s quarterly dividend was raised from $0.24 to $0.28 per common share for dividends declared after such date, until further action by the Board. The Company anticipates that it will continue to pay quarterly cash dividends in the future.  However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements and other factors.

Share Repurchase Plans

In October 2015, the Board authorized the repurchase of up to $2 billion of the Company’s common stock. During the third quarter of 2016, we bought 1.9 million shares at an average price per share of $186.99. During 2016, our share repurchases were completed through open market transactions.

During the third quarter of 2016, we retired 115.5 million or $7.8 billion of the Company’s treasury shares previously repurchased. Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement. In accordance with our accounting policy, we allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings. Accordingly, our retained earnings and additional paid-in capital were reduced by $6.3 billion and $1.5 billion during the third quarter of 2016.

In October 2016, the Board authorized the repurchase of up to $4 billion of the Company’s common stock. During the third quarter and first nine months of 2017, we repurchased 14 million shares for $2 billion through open market transactions at an average price per share of $140.96. The total authorization outstanding for repurchases of the Company’s common stock was $3.0 billion at December 31, 2016.

Other Comprehensive Income (Loss)

Information regarding other comprehensive loss including redeemable noncontrolling interests, net of tax, by component is as follows:

	Quarter Ended December 31,						Nine Months Ended December 31,
(In millions)	2016			2015			2016			2015
Foreign currency translation adjustments(1)
Foreign currency translation adjustments arising during period, net of income tax expense (benefit) of nil, $3, $1 and $3 (2) (3)	$	(398	)	$	(246	)	$	(782	)	$	(142	)
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil (4)	—			—			20			—
	(398		)	(246		)	(762		)	(142		)
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil, nil, nil and nil	(14		)	(1		)	(20		)	5
Changes in retirement-related benefit plans (5)
Net actuarial loss and prior service cost arising during the period, net of income tax benefit of nil, nil, nil and $9	—			—			—			(28		)
Amortization of actuarial loss and prior service costs, net of income tax expense of $1, $4, $3 and $13 (6)	2			8			6			23
Foreign currency translation adjustments and other, net of income tax expense of nil, nil, nil and nil	6			7			14			3
	8			15			20			(2		)
Other comprehensive income (loss), net of tax	$	(404	)	$	(232	)	$	(762	)	$	(139	)

(1) Foreign currency translation adjustments result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries into the Company’s reporting currency, U.S. dollars, and were primarily related to our foreign subsidiary, Celesio, during the third quarters and first nine months of 2017 and 2016.

(2) The net foreign currency translation losses during the third quarter and first nine months of 2017 were primarily due to the weakening of the British pound sterling and Euro against the U.S. dollar from April 1, 2016 to December 31, 2016. During the third quarter of 2016, the currency translation losses were primarily due to the weakening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from October 1, 2015 to December 31, 2015. The net foreign currency translation losses during the first nine months of 2016 were primarily due to the weakening of the Canadian dollars against the U.S. dollar from April 1, 2015 to December 31, 2015.

(3) The third quarter and first nine months of 2017 include net foreign currency translation losses of $31 million and $97 million and the third quarter and first nine months of 2016 include net foreign translation losses of $32 million and $2 million, which are attributable to redeemable noncontrolling interests.

(4) The first nine months of 2017 includes net foreign currency translation losses of $20 million reclassified from accumulated other comprehensive loss to loss from discontinued operations, net of tax, within our condensed consolidated statements of operations due to the sale of our Brazilian pharmaceutical distribution business.

(5) The third quarter and first nine months of 2017 include net actuarial losses of $2 million and $3 million and the third quarter and first nine months of 2016 include net actuarial gains of $1 million and losses of $5 million, which are attributable to redeemable noncontrolling interests.

(6) Pre-tax amount reclassified into cost of sales and operating expenses in our condensed consolidated statements of operations. The related tax expense was reclassified into income tax expense in our condensed consolidated statements of operations.

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in our accumulated other comprehensive income (loss), net of tax, by component for the third quarter and first nine months of 2017 is as follows:

(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2016	$	(1,621	)	$	(18	)	$	(215	)	$	(1,854	)
Other comprehensive income (loss) before reclassifications	(398		)	(14		)	6			(406		)
Amounts reclassified to earnings and other	—			—			2			2
Other comprehensive income (loss)	(398		)	(14		)	8			(404		)
Less: amounts attributable to redeemable noncontrolling interests	(31		)	—			1			(30		)
Other comprehensive income (loss) attributable to McKesson	(367		)	(14		)	7			(374		)
Balance at December 31, 2016	$	(1,988	)	$	(32	)	$	(208	)	$	(2,228	)

(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2016	$	(1,323	)	$	(12	)	$	(226	)	$	(1,561	)
Other comprehensive income (loss) before reclassifications	(782		)	(20		)	14			(788		)
Amounts reclassified to earnings and other	20			—			6			26
Other comprehensive income (loss)	(762		)	(20		)	20			(762		)
Less: amounts attributable to redeemable noncontrolling interests	(97		)	—			2			(95		)
Other comprehensive income (loss) attributable to McKesson	(665		)	(20		)	18			(667		)
Balance at December 31, 2016	$	(1,988	)	$	(32	)	$	(208	)	$	(2,228	)