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Stockholders' Equity
3 Months Ended
Jun. 30, 2020
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”).
On July 29, 2020, the Company raised its quarterly dividend from $0.41 to $0.42 per common share for dividends declared on or after such date by the Board. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements, and other factors.
Share Repurchase Plans
Stock repurchases may be made from time to time in open market transactions, privately negotiated transactions, through accelerated share repurchase (“ASR”) programs, or by any combination of such methods. The timing of any repurchases and the actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, corporate and regulatory requirements, restrictions under the Company’s debt obligations, and other market and economic conditions.
There were no share repurchases during the three months ended June 30, 2020.
The total authorization outstanding for repurchases of the Company’s common stock was $1.5 billion at June 30, 2020.
Other Comprehensive Income (Loss)
Information regarding Other comprehensive income (loss) including noncontrolling interests and redeemable noncontrolling interests, net of tax, by component is as follows:
Three Months Ended June 30,
 (In millions)20202019
Foreign currency translation adjustments (1)
Foreign currency translation adjustments arising during period, net of income tax expense of nil and nil (2) (3)
$96  $70  
Reclassified to income statement, net of income tax expense of nil and nil
—  —  
96  70  
Unrealized losses on net investment hedges
Unrealized losses on net investment hedges arising during period, net of income tax benefit of $22 and $9 (4)
(63) (26) 
Reclassified to income statement, net of income tax expense of nil and nil
—  —  
(63) (26) 
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil and $6
(5) 12  
Reclassified to income statement, net of income tax expense of nil and nil
—  —  
(5) 12  
Changes in retirement-related benefit plans (5)
Net actuarial gain and prior service cost arising during the period, net of income tax expense of nil and $1
—   
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of nil and nil (6)
  
Foreign currency translation adjustments and other, net of income tax expense of nil and nil
(1)  
Reclassified to income statement, net of income tax expense of nil and $5 (7)
—  12  
 21  
Other comprehensive income, net of tax
$29  $77  
(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.
(2)During the three months ended June 30, 2020, the net foreign currency translation gains were primarily due to the strengthening of the Canadian dollar and Euro against the U.S. dollar from April 1, 2020 to June 30, 2020. During the three months ended June 30, 2019, the net foreign currency translation gains were primarily due to the strengthening of the Canadian dollar and Euro against the U.S. dollar from April 1, 2019 to June 30, 2019.
(3)The three months ended June 30, 2020 include net foreign currency translation gains of $58 million and the three months ended June 30, 2019 include net foreign currency translation gains of $6 million attributable to redeemable noncontrolling interests.
(4)The three months ended June 30, 2020 include foreign currency losses of $34 million on the net investment hedges from the €1.7 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and losses of $51 million on the net investment hedges from cross-currency swaps. The three months ended June 30, 2019 include foreign currency losses of $24 million on the net investment hedges from the €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and losses of $11 million on the net investment hedges from cross-currency swaps.
(5)The three months ended June 30, 2020 and 2019 include net actuarial gains of $3 million and nil, respectively, which are attributable to redeemable noncontrolling interests.
(6)Pre-tax amount was reclassified into Cost of sales and Operating expenses in the Condensed Consolidated Statements of Operations. The related tax expense was reclassified into Income tax expense in the Condensed Consolidated Statements of Operations.
(7)The three months ended June 30, 2019 primarily reflects a reclassification of a pension settlement charge from Accumulated other comprehensive loss to Other income, net in the Condensed Consolidated Statement of Operations.
Accumulated Other Comprehensive Income (Loss)
Information regarding changes in the Company’s Accumulated other comprehensive income (loss) by component for the three months ended June 30, 2020 are as follows:
Foreign Currency Translation Adjustments
(In millions)Foreign Currency Translation Adjustments, Net of TaxUnrealized Gains (Losses) on Net Investment Hedges,
Net of Tax
Unrealized Gains (Losses) on Cash Flow Hedges,
Net of Tax
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of TaxTotal Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2020$(1,780) $138  $49  $(110) $(1,703) 
Other comprehensive income (loss) before reclassifications96  (63) (5) (1) 27  
Amounts reclassified to earnings and other—  —  —    
Other comprehensive income (loss)96  (63) (5)  29  
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests58  —  —   61  
Other comprehensive income (loss) attributable to McKesson38  (63) (5) (2) (32) 
Balance at June 30, 2020$(1,742) $75  $44  $(112) $(1,735) 
Information regarding changes in the Company’s Accumulated other comprehensive income (loss) by component for the three months ended June 30, 2019 are as follows:
Foreign Currency Translation Adjustments
(In millions)Foreign Currency Translation Adjustments, Net of TaxUnrealized Gains (Losses) on Net Investment Hedges,
Net of Tax
Unrealized Gains (Losses) on Cash Flow Hedges,
Net of Tax
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of TaxTotal Accumulated Other Comprehensive Income (Loss)
Balance at March 31, 2019$(1,628) $53  $(37) $(237) $(1,849) 
Other comprehensive income (loss) before reclassifications70  (26) 12   64  
Amounts reclassified to earnings and other—  —  —  13  13  
Other comprehensive income (loss)70  (26) 12  21  77  
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests —  —  —   
Other comprehensive income (loss) attributable to McKesson64  (26) 12  21  71  
Balance at June 30, 2019$(1,564) $27  $(25) $(216) $(1,778)