Stockholders' Equity (Tables)

6 Months Ended

Sep. 30, 2020

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 September 30,				Six Months Ended September 30,
(In millions)	2020		2019		2020		2019
Foreign currency translation adjustments (1)
Foreign currency translation adjustments arising during period, net of income tax expense of nil, nil, nil, and nil (2) (3)	$	111	$	(114)	$	207	$	(44)
Reclassified to income statement, net of income tax expense of nil, nil, nil, and nil	—		—		—		—
	111		(114)		207		(44)
Unrealized gains (losses) on net investment hedges
Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of $25, $(29), $47, and $(20) (3)(4)	(70)		82		(133)		56
Reclassified to income statement, net of income tax expense of nil, nil, nil, and nil	—		—		—		—
	(70)		82		(133)		56
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax (expense) benefit of $4, $(4), $4, and $(10)	(19)		13		(24)		25
Reclassified to income statement, net of income tax expense of nil, nil, nil, and nil	—		—		—		—
	(19)		13		(24)		25
Changes in retirement-related benefit plans (5)
Net actuarial gain and prior service cost arising during the period, net of income tax benefit of nil, $2, nil, and $1	—		(9)		—		(3)
Amortization of actuarial loss, prior service cost and transition obligation, net of income tax expense of $1, nil, $1, and nil (6)	—		1		2		2
Foreign currency translation adjustments and other, net of income tax expense of nil, nil, nil, and nil	(9)		5		(10)		7
Reclassified to income statement, net of income tax expense of nil, $27, nil, and $32 (7)	—		78		—		90
	(9)		75		(8)		96

Other comprehensive income, net of tax	$	13	$	56	$	42	$	133

(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, and its operations in Canada into the Company’s reporting currency, U.S. dollars.

(2)During the three and six months ended September 30, 2020, the net foreign currency translation adjustments were primarily due to the strengthening of the Canadian dollar and Euro against the U.S. dollar from April 1, 2020 to September 30, 2020. During the three and six months ended September 30, 2019, the net foreign currency translation adjustments were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2019 to September 30, 2019.

(3)The three and six months ended September 30, 2020 includes net foreign currency translation adjustments of $119 million and $61 million, respectively, and the three and six months ended September 30, 2019 includes net foreign currency translation adjustments of $19 million and $13 million, respectively, attributable to redeemable noncontrolling interests.

(4)The three and six months ended September 30, 2020 includes foreign currency losses of $83 million and $117 million, respectively, on the net investment hedges from the €1.7 billion Euro-denominated notes and £450 million British pound sterling-denominated notes, losses of $12 million and $63 million, respectively, on the net investment hedges from cross-currency swaps, and losses on net investment hedges of $1 million attributable to redeemable noncontrolling interests. The three and six months ended September 30, 2019 include foreign currency gains of $91 million and $67 million, respectively, on the net investment hedges from the €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes and gains of $20 million and $9 million, respectively, on the net investment hedges from cross-currency swaps.

(5)The three and six months ended September 30, 2020 include net actuarial losses of $5 million and $2 million, respectively, and the three and six months ended September 30, 2019 include net actuarial gains of $1 million, 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 benefit (expense) in the Condensed Consolidated Statements of Operations.

(7)The three and six months ended September 30, 2019 primarily reflects a reclassification of a pension settlement charge from Accumulated other comprehensive loss to Other income (expense), net in the 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) by component for the three and six months ended September 30, 2020 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 Losses and Other Components of Benefit Plans, Net of Tax		Total Accumulated Other Comprehensive Loss
Balance at June 30, 2020	$	(1,742)	$	75	$	44	$	(112)	$	(1,735)
Other comprehensive income (loss) before reclassifications	111		(70)		(19)		(9)		13
Amounts reclassified to earnings and other	—		—		—		—		—
Other comprehensive income (loss)	111		(70)		(19)		(9)		13
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(119)		(1)		—		(5)		(125)
Other comprehensive income (loss) attributable to McKesson	230		(69)		(19)		(4)		138
Balance at September 30, 2020	$	(1,512)	$	6	$	25	$	(116)	$	(1,597)


	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 Loss
Balance at March 31, 2020	$	(1,780)	$	138	$	49	$	(110)	$	(1,703)
Other comprehensive income (loss) before reclassifications	207		(133)		(24)		(10)		40
Amounts reclassified to earnings and other	—		—		—		2		2
Other comprehensive income (loss)	207		(133)		(24)		(8)		42
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(61)		(1)		—		(2)		(64)
Other comprehensive income (loss) attributable to McKesson	268		(132)		(24)		(6)		106
Balance at September 30, 2020	$	(1,512)	$	6	$	25	$	(116)	$	(1,597)

Information regarding changes in the Company’s Accumulated other comprehensive income (loss) by component for the three and six months ended September 30, 2019 are as follows:


	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax		Unrealized Gains 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 Loss
Balance at June 30, 2019	$	(1,564)	$	27	$	(25)	$	(216)	$	(1,778)
Other comprehensive income (loss) before reclassifications	(114)		82		13		(4)		(23)
Amounts reclassified to earnings and other	—		—		—		79		79
Other comprehensive income (loss)	(114)		82		13		75		56
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(19)		—		—		1		(18)
Other comprehensive income (loss) attributable to McKesson	(95)		82		13		74		74
Balance at September 30, 2019	$	(1,659)	$	109	$	(12)	$	(142)	$	(1,704)


	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax		Unrealized Gains 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 Loss
Balance at March 31, 2019	$	(1,628)	$	53	$	(37)	$	(237)	$	(1,849)
Other comprehensive income (loss) before reclassifications	(44)		56		25		4		41
Amounts reclassified to earnings and other	—		—		—		92		92
Other comprehensive income (loss)	(44)		56		25		96		133
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(13)		—		—		1		(12)
Other comprehensive income (loss) attributable to McKesson	(31)		56		25		95		145
Balance at September 30, 2019	$	(1,659)	$	109	$	(12)	$	(142)	$	(1,704)