Stockholders' Equity (Tables)

9 Months Ended

Dec. 31, 2019

Schedule of information regarding other comprehensive income (loss) including noncontrolling and redeemable noncontrolling interests, net of tax, by component

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



	Three Months Ended December 31,						Nine Months Ended December 31,
(In millions)	2019			2018			2019			2018
Foreign currency translation adjustments ⁽¹⁾
Foreign currency translation adjustments arising during period, net of income tax benefit of nil, nil, nil and nil ^{(2) (3)}	$	101		$	(188	)	$	57		$	(456	)
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil	—			—			—			—
	101			(188		)	57			(456		)
Unrealized gains (losses) on net investment hedges
Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of $21, ($27), $1 and ($85)⁽⁴⁾	(58		)	75			(2		)	240
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil	—			—			—			—
	(58		)	75			(2		)	240
Unrealized gains on cash flow hedges
Unrealized gains on cash flow hedges arising during period, net of income tax (expense) benefit of $3, ($5), ($7) and ($5)	8			35			33			37
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil	—			—			—			—
	8			35			33			37
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, $1 and nil	—			—			(3		)	—
Amortization of actuarial (gain) loss, prior service cost and transition obligation, net of income tax (expense) benefit of nil, $1, nil and ($1) ⁽⁶⁾	(2		)	1			—			5
Foreign currency translation adjustments and other, net of income tax expense of nil, nil, nil and nil	(6		)	2			1			10
Reclassified to income statement, net of income tax expense of $3, nil, $35 and nil ⁽⁷⁾	8			—			98			—
	—			3			96			15

Other comprehensive income (loss), net of tax	$	51		$	(75	)	$	184		$	(164	)


(1)	Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of the Company’s foreign subsidiary, McKesson Europe, into the Company’s reporting currency, U.S. dollars, during the three and nine months ended December 31, 2019 and 2018.

(2)

During the three and nine months ended December 31, 2019, the net foreign currency translation gains were primarily due to the strengthening of the Euro and Canadian dollar against the U.S. dollar, partially offset by weakening of the British pound sterling from April 1, 2019 to December 31, 2019. During the three and nine months ended December 31, 2018, the net foreign currency translation losses were primarily due to the weakening of the Euro, the British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2018 to December 31, 2018.


(3)	The three and nine months ended December 31, 2019 include net foreign currency translation gains of $12 million and losses of $1 million and the three and nine months ended December 31, 2018 include net foreign currency translation losses of $11 million and $57 million attributable to redeemable noncontrolling interests.

(4)

The three and nine months ended December 31, 2019 include foreign currency losses of $59 million and gains of $8 million on the net investment hedges from the €1.70 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and losses of $20 million and $11 million on the net investment hedges from the cross-currency swaps. The three and nine months ended December 31, 2018 include foreign currency gains of $39 million and $223 million on the net investment hedges from the €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and gains of $63 million and $102 million on the net investment hedges from cross-currency swaps.


(5)	The three and nine months ended December 31, 2019 include net actuarial losses of $2 million and $1 million and the three and nine months ended December 31, 2018 include net actuarial gains of nil and $2 million which are attributable to redeemable noncontrolling interests.


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

(7)

The nine months ended December 31, 2019 primarily reflects a reclassification of losses in the second quarter of 2020 upon the termination of the Plan from accumulated other comprehensive loss to other income (expense), net in the Company’s condensed consolidated statement of operations.

Schedule of information regarding changes in accumulated other comprehensive income (loss), net of tax, by component

Information regarding changes in the Company’s accumulated other comprehensive income (loss), net of tax, by component, for the three and nine months ended December 31, 2019 are as follows:



	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2019	$	(1,659	)	$	109		$	(12	)	$	(142	)	$	(1,704	)
Other comprehensive income (loss) before reclassifications	101			(58		)	8			(6		)	45
Amounts reclassified to earnings and other	—			—			—			6			6
Other comprehensive income (loss)	101			(58		)	8			—			51
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	12			—			—			(2		)	10
Other comprehensive income (loss) attributable to McKesson	89			(58		)	8			2			41
Balance at December 31, 2019	$	(1,570	)	$	51		$	(4	)	$	(140	)	$	(1,663	)



	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2019	$	(1,628	)	$	53		$	(37	)	$	(237	)	$	(1,849	)
Other comprehensive income (loss) before reclassifications	57			(2		)	33			(2		)	86
Amounts reclassified to earnings and other	—			—			—			98			98
Other comprehensive income (loss)	57			(2		)	33			96			184
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(1		)	—			—			(1		)	(2		)
Other comprehensive income (loss) attributable to McKesson	58			(2		)	33			97			186
Balance at December 31, 2019	$	(1,570	)	$	51		$	(4	)	$	(140	)	$	(1,663	)

Information regarding changes in the Company’s accumulated other comprehensive income (loss), net of tax, by component for the three and nine months ended December 31, 2018 are as follows:



	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2018	$	(1,480	)	$	(23	)	$	(59	)	$	(200	)	$	(1,762	)
Other comprehensive income (loss) before reclassifications	(188		)	75			35			2			(76		)
Amounts reclassified to earnings and other	—			—			—			1			1
Other comprehensive income (loss)	(188		)	75			35			3			(75		)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(11		)	—			—			—			(11		)
Other comprehensive income (loss) attributable to McKesson	(177		)	75			35			3			(64		)
Balance at December 31, 2018	$	(1,657	)	$	52		$	(24	)	$	(197	)	$	(1,826	)



	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2018	$	(1,258	)	$	(188	)	$	(61	)	$	(210	)	$	(1,717	)
Other comprehensive income (loss) before reclassifications	(456		)	240			37			10			(169		)
Amounts reclassified to earnings and other	—			—			—			5			5
Other comprehensive income (loss)	(456		)	240			37			15			(164		)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(57		)	—			—			2			(55		)
Other comprehensive income (loss) attributable to McKesson	(399		)	240			37			13			(109		)
Balance at December 31, 2018	$	(1,657	)	$	52		$	(24	)	$	(197	)	$	(1,826	)