Other Income, Net (Tables)

12 Months Ended

Mar. 31, 2023

Other Nonoperating Income (Expense) [Abstract]

Schedule of other income, net

Other income, net consists of the following:

	Years Ended March 31,
(In millions)	2023		2022		2021
Interest income (1)	$	107	$	10	$	12
Equity in earnings, net (2)	5		43		48
Net gains on investments in equity securities (3)	106		98		133
Other, net (4)	279		108		30
Total	$	497	$	259	$	223

(1)The increase in interest income for fiscal 2023 compared to fiscal 2022 and fiscal 2021 is primarily due to higher interest rates on certain cash balances.

(2)Primarily recorded within the Company’s International segment for fiscal 2022 and fiscal 2021.

(3)Represents net realized and unrealized gains as well as impairment charges on the Company’s investments in equity securities of certain U.S. growth stage companies in the healthcare industry. These net gains primarily relate to mark-to-market adjustments for investments which are measured at fair value based on changes in the observable price of the securities and realized gains on the disposal of certain of these investments, including a gain of $142 million for the year ended March 31, 2023 related to the exit of one of the Company’s investments in equity securities in July 2022 for proceeds of $179 million. Refer to Financial Note 15, “Fair Value Measurements” for more information on these types of investments.

(4)Other, net for year ended March 31, 2023 includes the following:

•a gain of $126 million related to a cash payment received for the early termination of a tax receivable agreement (“TRA”) exercised by Change Healthcare Inc. (“Change”) in October 2022. The Company was a party to a TRA entered into as part of the formation of the joint venture with Change, from which McKesson has since exited. The TRA generally required Change to pay the Company 85% of the net cash tax savings realized, or deemed to be realized, by Change resulting from the amortization allocated to Change by the joint venture. In October 2022, Change exercised its right pursuant to the TRA to terminate the agreement; and

•a gain of $97 million recognized from the termination of certain forward starting fixed interest rate swaps, as discussed in more detail in Financial Note 14, “Hedging Activities.”

Other, net for the year ended March 31, 2022 includes a gain of $42 million as part of the completed sale of the Company’s previously held 30% interest in its German pharmaceutical wholesale joint venture to WBA.

Other, net for all periods presented also includes income recognized from finance charges to customers primarily for late fees.