Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 30, 2019 | Sep. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | McKESSON CORPORATION | ||
Entity Central Index Key | 0000927653 | ||
Entity Tax Identification Number | 943207296 | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --03-31 | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 26 | ||
Entity Common Stock, Shares Outstanding | 189,961,556 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 214,319 | $ 208,357 | $ 198,533 |
Cost of Sales | (202,565) | (197,173) | (187,262) |
Gross Profit | 11,754 | 11,184 | 11,271 |
Operating Expenses | |||
Selling, distribution and administrative expenses | (8,403) | (8,138) | (7,447) |
Research and development | (71) | (125) | (341) |
Goodwill impairment charges | (1,797) | (1,738) | (290) |
Restructuring and asset impairment charges | (597) | (567) | (18) |
Gains from sales of business and on healthcare technology net asset exchange, net | 0 | 109 | 0 |
Total Operating Expenses | (10,868) | (10,422) | (4,149) |
Operating Income | 886 | 762 | 7,122 |
Other Income, Net | 182 | 130 | 77 |
Loss on Debt Extinguishment | 0 | (122) | 0 |
Interest Expense | (264) | (283) | (308) |
Income from Continuing Operations Before Income Taxes | 610 | 239 | 6,891 |
Income Tax (Expense) Benefit | (356) | 53 | (1,614) |
Income from Continuing Operations | 254 | 292 | 5,277 |
Income (Loss) from Discontinued Operations, Net of Tax | 1 | 5 | (124) |
Net Income | 255 | 297 | 5,153 |
Net Income Attributable to Noncontrolling Interests | (221) | (230) | (83) |
Net Income Attributable to McKesson Corporation | $ 34 | $ 67 | $ 5,070 |
Diluted | |||
Continuing operations (in dollars per share) | $ 0.17 | $ 0.30 | $ 23.28 |
Discontinued operations (in dollars per share) | 0 | 0.02 | (0.55) |
Total (in dollars per share) | 0.17 | 0.32 | 22.73 |
Basic | |||
Continuing operations (in dollars per share) | 0.17 | 0.30 | 23.50 |
Discontinued operations (in dollars per share) | 0 | 0.02 | (0.55) |
Total (in dollars per share) | $ 0.17 | $ 0.32 | $ 22.95 |
Weighted Average Common Shares | |||
Diluted (in shares) | 197 | 209 | 223 |
Basic (in shares) | 196 | 208 | 221 |
Healthcare Technology Net Asset Exchange | |||
Operating Expenses | |||
Gains from sales of business and on healthcare technology net asset exchange, net | $ 0 | $ 37 | $ 3,947 |
Change Healthcare | |||
Operating Expenses | |||
Loss from Equity Method Investment in Change Healthcare | $ (194) | $ (248) | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 255 | $ 297 | $ 5,153 |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustments | (190) | 624 | (632) |
Unrealized gains (losses) on cash flow hedges | 24 | (30) | (19) |
Changes in retirement-related benefit plans | (32) | 15 | (8) |
Other Comprehensive Income (Loss), Net of Tax | (198) | 609 | (659) |
Comprehensive Income | 57 | 906 | 4,494 |
Comprehensive (Income) Attributable to Noncontrolling Interests | (155) | (415) | (4) |
Comprehensive Income (Loss) Attributable to McKesson Corporation | $ (98) | $ 491 | $ 4,490 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 2,981 | $ 2,672 |
Receivables, net | 18,246 | 17,711 |
Inventories, net | 16,709 | 16,310 |
Prepaid expenses and other | 529 | 443 |
Total Current Assets | 38,465 | 37,136 |
Property, Plant and Equipment, Net | 2,548 | 2,464 |
Goodwill | 9,358 | 10,924 |
Intangible Assets, Net | 3,689 | 4,102 |
Equity Method Investment in Change Healthcare | 3,513 | 3,728 |
Other Noncurrent Assets | 2,099 | 2,027 |
Total Assets | 59,672 | 60,381 |
Current Liabilities | ||
Drafts and accounts payable | 33,853 | 32,177 |
Current portion of long-term debt | 330 | 1,129 |
Other accrued liabilities | 3,443 | 3,379 |
Total Current Liabilities | 37,626 | 36,685 |
Long-Term Debt | 7,265 | 6,751 |
Long-Term Deferred Tax Liabilities | 2,998 | 2,804 |
Other Noncurrent Liabilities | 2,103 | 2,625 |
Commitments and Contingent Liabilities | ||
Redeemable Noncontrolling Interests | 1,393 | 1,459 |
McKesson Corporation Stockholders’ Equity | ||
Preferred stock, $0.01 par value, 100 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 800 shares authorized at March 31, 2019 and 2018, 271 and 275 shares issued at March 31, 2019 and 2018 | 3 | 3 |
Additional Paid-in Capital | 6,435 | 6,188 |
Retained Earnings | 12,409 | 12,986 |
Accumulated Other Comprehensive Loss | (1,849) | (1,717) |
Other | (2) | (1) |
Treasury Stock, at Cost, 81 and 73 shares at March 31, 2019 and 2018 | (8,902) | (7,655) |
Total McKesson Corporation Stockholders’ Equity | 8,094 | 9,804 |
Noncontrolling Interests | 193 | 253 |
Total Equity | 8,287 | 10,057 |
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ 59,672 | $ 60,381 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Mar. 31, 2018 |
McKesson Corporation Stockholders’ Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 800,000,000 | 800,000,000 |
Common stock issued (shares) | 271,000,000 | 275,000,000 |
Treasury stock (shares) | 81,000,000 | 73,000,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Other Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury | Noncontrolling Interests |
Beginning balance, common stock (in shares) at Mar. 31, 2016 | 271 | |||||||
Beginning balance at Mar. 31, 2016 | $ 9,008 | $ 3 | $ 5,845 | $ (2) | $ 8,360 | $ (1,561) | $ (3,721) | $ 84 |
Beginning balance, treasury common stock (shares) at Mar. 31, 2016 | (46) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 3 | |||||||
Issuance of shares under employee plans | 64 | 125 | $ (61) | |||||
Share-based compensation | 110 | 110 | ||||||
Tax benefit related to issuance of shares under employee plans | 7 | 7 | ||||||
Acquisition of Vantage | 89 | 89 | ||||||
Other comprehensive income (loss) | (580) | (580) | ||||||
Net income | 5,109 | 5,070 | 39 | |||||
Repurchase of common stock (in shares) | (16) | |||||||
Repurchase of common stock | (2,250) | (50) | $ (2,200) | |||||
Cash dividends declared | (249) | (249) | ||||||
Other (in shares) | (1) | |||||||
Other | (35) | (2) | 0 | 1 | (34) | |||
Ending balance common stock (in shares) at Mar. 31, 2017 | 273 | |||||||
Ending balance at Mar. 31, 2017 | 11,273 | $ 3 | 6,028 | (2) | 13,189 | (2,141) | $ (5,982) | 178 |
Ending balance, treasury common stock (shares) at Mar. 31, 2017 | (62) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 2 | |||||||
Issuance of shares under employee plans | 67 | 126 | $ (59) | |||||
Share-based compensation | 67 | 67 | ||||||
Payments to noncontrolling interests | (98) | (98) | ||||||
Other comprehensive income (loss) | 424 | 424 | ||||||
Net income | 254 | 67 | 187 | |||||
Repurchase of common stock (in shares) | (11) | |||||||
Repurchase of common stock | (1,650) | (36) | $ (1,614) | |||||
Exercise of put right by noncontrolling shareholders of McKesson Europe | 3 | 3 | ||||||
Cash dividends declared | (270) | (270) | ||||||
Other (in shares) | ||||||||
Other | (13) | 1 | (14) | |||||
Ending balance common stock (in shares) at Mar. 31, 2018 | 275 | |||||||
Ending balance at Mar. 31, 2018 | $ 10,057 | $ 3 | 6,188 | (1) | 12,986 | (1,717) | $ (7,655) | 253 |
Ending balance, treasury common stock (shares) at Mar. 31, 2018 | (73) | (73) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of shares under employee plans (in shares) | 1 | |||||||
Issuance of shares under employee plans | $ 63 | 75 | $ (12) | |||||
Share-based compensation | 92 | 92 | ||||||
Payments to noncontrolling interests | (184) | (184) | ||||||
Other comprehensive income (loss) | (132) | (132) | ||||||
Net income | 210 | 34 | 176 | |||||
Repurchase of common stock (in shares) | (13) | |||||||
Repurchase of common stock | (1,627) | 150 | $ (1,777) | |||||
Retirement and retirement of common stock (in shares) | 5 | 5 | ||||||
Retirement of common stock | 0 | (70) | (472) | $ 542 | ||||
Cash dividends declared | (298) | (298) | ||||||
Other (in shares) | ||||||||
Other | (48) | (1) | 5 | (52) | ||||
Ending balance common stock (in shares) at Mar. 31, 2019 | 271 | |||||||
Ending balance at Mar. 31, 2019 | $ 8,287 | $ 3 | $ 6,435 | $ (2) | $ 12,409 | $ (1,849) | $ (8,902) | $ 193 |
Ending balance, treasury common stock (shares) at Mar. 31, 2019 | (81) | (81) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared per common share (in dollars per share) | $ 1.51 | $ 1.30 | $ 1.12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | |||
Net income | $ 255 | $ 297 | $ 5,153 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation | 317 | 303 | 324 |
Amortization | 632 | 648 | 586 |
Gain on Healthcare Technology Net Asset Exchange, net | 0 | (109) | 0 |
Goodwill and other asset impairment charges | 2,079 | 2,217 | 290 |
Deferred taxes | 189 | (868) | 882 |
Credits associated with last-in, first-out inventory method | (210) | (99) | (7) |
Loss (gain) from sales of businesses and investments | (86) | (169) | 94 |
Other non-cash items | 52 | 67 | 203 |
Changes in assets and liabilities, net of acquisitions: | |||
Receivables | (967) | 1,175 | (762) |
Inventories | (368) | (458) | 320 |
Drafts and accounts payable | 1,976 | 271 | 2,070 |
Taxes | (95) | 671 | 146 |
Other | 68 | 79 | (458) |
Settlement payment | 0 | 0 | (150) |
Net cash provided by operating activities | 4,036 | 4,345 | 4,744 |
Investing Activities | |||
Payments for property, plant and equipment | (426) | (405) | (404) |
Capitalized software expenditures | (131) | (175) | (158) |
Acquisitions, net of cash, cash equivalents and restricted cash acquired | (905) | (2,893) | (4,212) |
Proceeds from sale of businesses and investments, net and Payments received on Healthcare Technology Net Asset Exchange, net | 101 | 374 | 206 |
Other | (20) | (20) | 73 |
Net cash used in investing activities | (1,381) | (2,993) | (3,269) |
Financing Activities | |||
Proceeds from short-term borrowings | 37,265 | 20,542 | 8,294 |
Repayments of short-term borrowings | (37,268) | (20,725) | (8,124) |
Proceeds from issuances of long-term debt | 1,099 | 1,522 | 1,824 |
Repayments of long-term debt | (1,112) | (2,287) | (1,601) |
Payments for debt extinguishments | 0 | (112) | 0 |
Common stock transactions: | |||
Issuances | 75 | 132 | 120 |
Share repurchases, including shares surrendered for tax withholding | (1,639) | (1,709) | (2,311) |
Dividends paid | (292) | (262) | (253) |
Other | (355) | (185) | (18) |
Net cash used in financing activities | (2,227) | (3,084) | (2,069) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (119) | 150 | (144) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 309 | (1,582) | (738) |
Cash, cash equivalents and restricted cash at beginning of year | 2,672 | 4,254 | 4,992 |
Cash, cash equivalents and restricted cash at end of year | 2,981 | 2,672 | 4,254 |
Cash paid for: | |||
Interest | 383 | 298 | 315 |
Income taxes, net of refunds | 262 | 144 | 587 |
Healthcare Technology Net Asset Exchange | |||
Adjustments to reconcile to net cash provided by operating activities: | |||
Gain on Healthcare Technology Net Asset Exchange, net | 0 | (37) | (3,947) |
Investing Activities | |||
Proceeds from sale of businesses and investments, net and Payments received on Healthcare Technology Net Asset Exchange, net | 0 | 126 | 1,226 |
Change Healthcare | |||
Adjustments to reconcile to net cash provided by operating activities: | |||
Loss from equity method investment in Change Healthcare | $ 194 | $ 248 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations : McKesson Corporation (“McKesson,” the “Company,” the “Registrant” or “we” and other similar pronouns) delivers a comprehensive offering of pharmaceuticals and medical supplies and provides services to help our customers improve the efficiency and effectiveness of their healthcare operations. Commencing in the first quarter of 2019, our new segment reporting structure was implemented and we have reported our financial results in three reportable segments on a retrospective basis: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions and Medical-Surgical Solutions. All remaining operating segments and business activities that are not significant enough to require separate reportable segment disclosure are included in Other. Refer to Financial Note 28, “Segments of Business” for more information. Basis of Presentation: The consolidated financial statements and accompanying notes are prepared in accordance with U. S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of McKesson include the financial statements of all wholly-owned subsidiaries and majority-owned or controlled companies. For those consolidated subsidiaries where our ownership is less than 100% , the portion of the net income or loss allocable to the noncontrolling interests is reported as “Net Income Attributable to Noncontrolling Interests” on the consolidated statements of operations. All significant intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. We consider ourselves to control an entity if we are the majority owner of or have voting control over such entity. We also assess control through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business entity is the primary beneficiary of the VIE. We consolidate VIEs when it is determined that we are the primary beneficiary of the VIE. Investments in business entities in which we do not have control but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Refer to Financial Note 5, “Healthcare Technology Net Asset Exchange” for further information on our equity method investment in Change Healthcare, LLC (“Change Healthcare”). Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. Reclassifications : Certain prior year amounts have been reclassified to conform to the current year presentation. Use of Estimates : The preparation of financial statements in conformity with U.S. GAAP requires that we make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual amounts could differ from those estimated amounts. Cash and Cash Equivalents : All highly liquid debt and money market instruments purchased with original maturity of three months or less at the date of acquisition are included in cash and cash equivalents. Cash equivalents are carried at fair value. Cash equivalents are primarily invested in AAA rated prime and U.S. government money market funds denominated in U.S. dollars, overnight repurchase agreements collateralized by U.S. government securities, Canadian government securities and/or securities that are guaranteed or sponsored by the U.S. government and an AAA rated prime money market fund denominated in British pound sterling. The remaining cash and cash equivalents are deposited with several financial institutions. Deposits may exceed the amounts insured by the Federal Deposit Insurance Corporation in the U.S. and similar deposit insurance programs in other jurisdictions. We mitigate the risk of our short-term investment portfolio by depositing funds with reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Prepaid expenses and other” and “Other Noncurrent Assets” in the consolidated balance sheets. At March 31, 2019 and 2018, our restricted cash balance was not material. Marketable Securities Available-for-Sale : Our marketable securities, which are available-for-sale, are carried at fair value and are included within “Prepaid expenses and other” in the consolidated balance sheets. The unrealized gains and losses, net of the related tax effect, computed in marking these securities to market have been reported within stockholders’ equity. At March 31, 2019 and 2018 , marketable securities were not material. In determining whether an other-than-temporary decline in market value has occurred, we consider the duration that, and extent to which, the fair value of the investment is below its cost, the financial condition and future prospects of the issuer or underlying collateral of a security, and our intent and ability to retain the security in order to allow for an anticipated recovery in fair value. Other-than-temporary declines in fair value from amortized cost for available-for-sale equity securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income, net, in the period in which the loss occurs. Equity Method Investments: Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. We evaluate our equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. Refer to Financial Note 5, “Healthcare Technology Net Asset Exchange” for further information relating to our equity method investment in Change Healthcare, LLC (“Change Healthcare”). Concentrations of Credit Risk and Receivables: Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our U.S. Pharmaceutical and Specialty Solutions segment. During 2019 , sales to our ten largest customers, including group purchasing organizations (“GPOs”) accounted for approximately 49.9% of our total consolidated revenues. Sales to our largest customer, CVS Health (“CVS”), accounted for approximately 19.4% of our total consolidated revenues. At March 31, 2019 , trade accounts receivable from our ten largest customers were approximately 31.9% of total trade accounts receivable. Accounts receivable from CVS were approximately 18.4% of total trade accounts receivable. As a result, our sales and credit concentration is significant. We also have agreements with GPOs, each of which functions as a purchasing agent on behalf of member hospitals, pharmacies and other healthcare providers, as well as with government entities and agencies. The accounts receivables balances are with individual members of the GPOs, and therefore no significant concentration of credit risk exists. A material default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers in the institutional, retail and healthcare provider sectors, which can be affected by a downturn in the economy and changes in reimbursement policies. This credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers. An allowance is recorded in our consolidated financial statements for these estimated amounts. Financing Receivables: We assess and monitor credit risk associated with financing receivables, primarily notes receivables, through regular review of our collection experience in determining our allowance for loan losses. On an ongoing basis, we also evaluate credit quality of our financing receivables utilizing aging of receivables and write-offs, as well as considering existing economic conditions, to determine if an allowance is required. Financing receivables are derecognized if legal title to them has been transferred and all related risks and rewards incidental to ownership have passed to the buyer. As of March 31, 2019 and 2018 , financing receivables and the related allowance were not material to our consolidated financial statements. Inventories: Inventories consist of merchandise held for resale. Prior to 2018, we reported inventories at the lower of cost or market (“LCM”). Effective in the first quarter of 2018, we report inventories at the lower of cost or net realizable value, except for inventories determined using the last-in, first-out (“LIFO”) method. The majority of the cost of domestic inventories is determined using the LIFO method. The majority of the cost of inventories held in foreign locations is based on first-in, first-out method and weighted average purchase prices. Rebates, cash discounts, and other incentives received from vendors are recognized within cost of sales upon the sale of the related inventory. The LIFO method was used to value approximately 62% and 63% of our inventories at March 31, 2019 and 2018 . If we had used the moving average method of inventory valuation, inventories would have been approximately $696 million and $906 million higher than the amounts reported at March 31, 2019 and 2018 . These amounts are equivalent to our LIFO reserves. Our LIFO valuation amount includes both pharmaceutical and non-pharmaceutical products. We recognized LIFO credits of $210 million , $99 million and $7 million in 2019, 2018 and 2017 in cost of sales within our consolidated statements of operations. A LIFO charge is recognized when the net effect of price increases on pharmaceutical and non-pharmaceutical products held in inventory exceeds the impact of price declines, including the effect of branded pharmaceutical products that have lost market exclusivity. A LIFO credit is recognized when the net effect of price declines exceeds the impact of price increases on pharmaceutical and non-pharmaceutical products held in inventory. We believe that moving average inventory costing method provides a reasonable estimation of the current cost of replacing inventory (i.e., “market”). As such, our LIFO inventory is valued at the lower of LIFO cost or market. As of March 31, 2019 and 2018, inventories at LIFO did not exceed market. Shipping and Handling Costs: We include costs to pack and deliver inventory to our customers in selling, distribution and administrative expenses. Shipping and handling costs of $951 million , $914 million , and $814 million were recognized in 2019, 2018 and 2017. Property, Plant and Equipment: We state our property, plant and equipment (“PPE”) at cost and depreciate them under the straight-line method at rates designed to distribute the cost of PPE over estimated service lives ranging from one to thirty years. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. Goodwill: Goodwill is tested for impairment on an annual basis in the fourth quarter or more frequently if indicators of potential impairment exist. Impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The goodwill testing requires us to compare the estimated fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit is lower than its estimated fair value, no further evaluation is required. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded for that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we generally use a combination of the market approach and the income approach. Under the market approach, we estimate fair value by comparing the business to similar businesses or guideline companies whose securities are actively traded in public markets. Under the income approach, we use a discounted cash flow (“DCF”) model in which cash flows anticipated over future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an estimated expected rate of return. Other estimates inherent in both the market and income approaches include long-term growth rates, projected revenues, earnings and cash flow forecasts for the reporting units. In addition, we compare the aggregate of the reporting units’ fair values to the Company’s market capitalization as a further corroboration of the fair values. Goodwill testing requires a complex series of assumptions and judgments by management in projecting future operating results, selecting guideline companies for comparisons and assessing risks. The use of alternative assumptions and estimates could affect the fair values and change the impairment determinations. Intangible Assets: Currently all of our intangible assets are subject to amortization and are amortized based on the pattern of their economic consumption or on a straight-line basis over their estimated useful lives, ranging from one to 38 years. We review intangible assets for impairment at an asset group level whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset group over its estimated fair market value. Capitalized Software Held for Internal Use: We capitalize costs of software held for internal use during the application development stage of a project and amortize those costs over their estimated useful lives ranging from one to ten years. As of March 31, 2019 and 2018 , capitalized software held for internal use was $394 million and $425 million , net of accumulated amortization of $1,246 million and $1,182 million , and was included in other noncurrent assets in the consolidated balance sheets. Insurance Programs: Under our insurance programs, we seek to obtain coverage for catastrophic exposures as well as those risks required to be insured by law or contract. It is our policy to retain a significant portion of certain losses primarily related to workers’ compensation and comprehensive general, product and vehicle liability. Provisions for losses expected under these programs are recorded based on our estimate of the aggregate liability for claims incurred as well as for claims incurred but not yet reported. Such estimates utilize certain actuarial assumptions followed in the insurance industry. Revenue Recognition: Revenue is recognized when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled for that good or service. Revenues generated from the distribution of pharmaceutical and medical products represent the majority of our revenues. We order product from the manufacturer, receive and carry the product at our central distribution facilities and deliver the product directly to our customers’ warehouses, hospitals or retail pharmacies. The distribution business primarily generates revenue from a contract related to a confirmed purchase order with a customer in a distribution arrangement. Revenue is recognized when control of goods is transferred to the customer which occurs upon our delivery to the customer or upon customer pick-up. We also earn revenues from a variety of other sources including our retail, services and technology businesses. Retail revenues are recognized at the point of sale. Service revenues, including technology service revenues, are recognized when services are rendered. Revenues derived from distribution and retail business at the point of sale, and revenues derived from services represent approximately 98% and 2% of total revenues for the year ended on March 31, 2019. Revenues are recorded gross when we are the principal in the transaction, have the ability to direct the use of the goods or services prior to transfer to a customer, are responsible for fulfilling the promise to our customer, have latitude in establishing prices, and control the relationship with the customer. We record our revenues net of sales taxes. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts and rebates using historical data. Sales returns from customers were approximately $2.9 billion in 2019 , and $3.1 billion in 2018 and 2017 . Assets for the right to recover products from customers and the associated refund liabilities for return allowances were not material as of March 31, 2019. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in selling, distribution and administrative expenses. We record deferred revenues when payments are received or due in advance of our performance. Deferred revenues are primarily from our services arrangements and are recognized as revenues over the periods when services are performed. We had no material contract assets, contract liabilities or deferred contract costs recorded on the consolidated balance sheets. We elected the practical expedient and generally expense costs to obtain a contract when incurred because the amortization period would have been one year or less. Supplier Incentives: Fees for services and other incentives received from suppliers, relating to the purchase or distribution of inventory, are considered product discounts and are generally reported as a reduction to cost of sales. Supplier Reserves: We establish reserves against amounts due from suppliers relating to various fees for services and price and rebate incentives, including deductions taken against payments otherwise due to them. These reserve estimates are established based on judgment after considering the status of current outstanding claims, historical experience with the suppliers, the specific incentive programs and any other pertinent information available. We evaluate the amounts due from suppliers on a continual basis and adjust the reserve estimates when appropriate based on changes in facts and circumstances. Adjustments to supplier reserves are generally included within cost of sales. The ultimate outcome of any outstanding claims may be different than our estimate. The supplier reserves primarily pertain to our U.S. Pharmaceutical and Specialty Solutions segment. Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or the tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon effective settlement. Deferred taxes are not provided on undistributed earnings of our foreign operations that are considered to be permanently reinvested. Foreign Currency Translation: The reporting currency of the Company and its subsidiaries is the U.S. dollar. Our foreign subsidiaries generally consider their local currency to be their functional currency. Foreign currency-denominated assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at period-end exchange rates, while revenues and expenses are translated at average exchange rates during the corresponding period and stockholders’ equity accounts are primarily translated at historical exchange rates. Foreign currency translation adjustments are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in the consolidated statements of operations and were not material to our consolidated results of operations in 2019 , 2018 or 2017 . We release cumulative translation adjustments from stockholders’ equity into earnings as a gain or loss only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. We also release all or a pro rata portion of the cumulative translation adjustments into earnings upon the sale of an equity method investment that is a foreign entity. Derivative Financial Instruments: Derivative financial instruments are used principally in the management of foreign currency exchange and interest rate exposures and are recorded on the consolidated balance sheets at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. We use foreign currency-denominated notes and cross-currency swaps to hedge a portion of our net investment in our foreign subsidiaries. We use cash flow hedges primarily to reduce the effects of foreign currency exchange rate risk related to intercompany loans denominated in non-functional currencies. If the financial instrument is designated as a cash flow hedge or net investment hedge, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of operations when the hedged item affects earnings. We evaluate hedge effectiveness at inception and on an ongoing basis, and ineffective portions of changes in the fair value of cash flow hedges and net investment hedges are recognized in earnings following the date when ineffectiveness was identified. In the fourth quarter of 2018, we adopted amended guidance for derivatives and hedging which eliminates the existing requirement to recognize periodic hedge ineffectiveness in earnings for cash flow hedges and net investment hedges that are highly effective. The adoption had no material impact on our financial statements as there was no ineffectiveness recognized on our cash flow hedges or net investment hedges prior to adoption. Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change included in earnings. Comprehensive Income: Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from earnings. Our other comprehensive income primarily consists of foreign currency translation adjustments from those subsidiaries where the local currency is the functional currency including gains and losses on net investment hedges, unrealized gains and losses on cash flow hedges, as well as unrealized gains and losses on retirement-related benefit plans. Noncontrolling Interests and Redeemable Noncontrolling Interests: Noncontrolling interests represent the portion of profit or loss, net assets and comprehensive income that is not allocable to McKesson Corporation. Net income attributable to noncontrolling interests included recurring compensation that McKesson is obligated to pay to the noncontrolling shareholders of McKesson Europe AG (“McKesson Europe”), formerly known as Celesio AG, under the domination and profit and loss transfer agreement. Net income attributable to noncontrolling interests also included third-party equity interests in our consolidated entities including Vantage Oncology Holdings, LLC (“Vantage”) and ClarusONE Sourcing Services LLP (“ClarusONE”), which was established between McKesson and Walmart, Inc in 2017. Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on our consolidated balance sheets. Refer to Financial Note 11, “Redeemable Noncontrolling Interests and Noncontrolling Interests,” for more information. Share-Based Compensation: We account for all share-based compensation transactions at fair value. The share-based compensation expense, for the portion of the awards that is ultimately expected to vest, is recognized on a straight-line basis over the requisite service period. The share-based compensation expense recognized has been classified in the consolidated statements of operations in the same manner as cash compensation paid to our employees. Loss Contingencies: We are subject to various claims, including claims with customers and vendors, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate the loss or a range of possible loss. When a material loss is reasonably possible or probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or a range of the loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. Restructuring Charges : Employee severance costs are generally recognized when payments are probable and amounts are reasonably estimable. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. Business Combinations: We account for acquired businesses using the acquisition method of accounting, which requires that once control of a business is obtained, 100% of the assets acquired and liabilities assumed, including amounts attributable to noncontrolling interests, be recorded at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses including transaction and integration costs are expensed as incurred. Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a method that is a form or variation of the income approach. Income approach methods start with a forecast of all of the expected future net cash flows for each asset. These cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. Some of the more significant estimates and assumptions inherent in income approach methods include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows and the assessment of the asset’s life cycle and the competitive trends impacting the asset, including consideration of any technical, legal, regulatory, or economic barriers to entry. Determining the useful life of an intangible asset also requires judgment as different types of intangible assets will have different useful lives and certain assets may even be considered to have indefinite useful lives. Recently Adopted Accounting Pronouncements Revenue Recognition: In the first quarter of 2019, we adopted amended guidance for revenue recognition using the modified retrospective method and applied the amended guidance to those contracts which were not completed as of April 1, 2018. The adoption of this amended guidance did not have a material impact on our consolidated financial statements. Our equity method investee, Change Healthcare, is required to adopt the amended guidance in our first quarter of 2020. The adoption of this amended guidance by Change Healthcare is not expected to have a material effect on our consolidated financial statements. We elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. Share-Based Payments: In the first quarter of 2019, we prospectively adopted amended guidance for employee share-based payment awards. This amendment provides guidance on which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the amended guidance, we are required to account for the effects of a modification of the fair value, the vesting conditions or the classification (as an equity instrument or a liability instrument) of the modified award from that of the original award immediately before the modification. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Compensation - Retirement Benefits : In the first quarter of 2019, we retrospectively adopted amended guidance which requires us to report the service cost component of defined benefit pension plans and other postretirement plans in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net benefit costs are requir |
Goodwill Impairment Charges
Goodwill Impairment Charges | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment Charges | Goodwill Impairment Charges We evaluate goodwill for impairment on an annual basis as of January 1 each year and at an interim date, if indicators of potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The fair value of the reporting unit was determined using a combination of an income approach based on a DCF model and a market approach based on appropriate valuation multiples observed for the reporting unit’s guideline public companies. Fair value estimates result from a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions that have been deemed reasonable by management as of the measurement date. Any material changes in key assumptions, including failure to improve operations of certain retail pharmacy stores, additional government reimbursement reductions, deterioration in the financial markets, an increase in interest rates or an increase in the cost of equity financing by market participants within the industry, or other unanticipated events and circumstances, may affect such estimates. The discount rates are the weighted average cost of capital measuring the reporting unit’s cost of debt and equity financing weighted by the percentage of debt and percentage of equity in a company’s target capital. The unsystematic risk premium is an input factor used in calculating discount rate that specifically addresses uncertainty related to the reporting unit’s future cash flow projections. Fair value assessments of the reporting unit are considered a Level 3 measurement due to the significance of unobservable inputs developed using company specific information. In 2019, we recorded total non-cash pre-tax goodwill impairment charges of $1,776 million ( $1,756 million after-tax) for our two reporting units in our European Pharmaceutical Solutions segment. In 2018, we recorded non-cash goodwill impairment charges of $1,283 million (pre-tax and after-tax) in our European Pharmaceutical Solutions segment and $455 million (pre-tax and after-tax) for our Rexall Health reporting unit included in Other. In 2017, we recorded a non-cash pre-tax goodwill impairment charge of $290 million ( $282 million after-tax) for our Enterprise Information Solutions (“EIS”) reporting unit included in Other. These charges were recorded under the caption, “Goodwill Impairment Charges” within operating expenses in the accompanying consolidated statements of operations. Most of the goodwill impairment for these reporting units were generally not deductible for income tax purposes. McKesson Europe: Fiscal 2019 In 2019, we recorded total non-cash pre-tax charges of $1,776 million ( $1,756 million after-tax) to impair the carrying value of goodwill for our Consumer Solutions (“CS”) and Pharmacy Solutions (“PS”) reporting units in our European Pharmaceutical Solutions segment. Prior to implementing the new segment reporting structure in the first quarter of 2019, our European operations were considered a single reporting unit. Following the change in reportable segments, our European Pharmaceutical Solutions segment was split into two distinct reporting units, CS and PS, for the purposes of goodwill impairment testing. As a result, we were required to perform a goodwill impairment test for these two new reporting units upon the change in reportable segment. Consequently, we recorded a non-cash goodwill impairment charge of $238 million (pre-tax and after-tax) in the first quarter of 2019 because the estimated fair value of the PS reporting unit was determined to be lower than its reassigned carrying value. In the first quarter of 2019, both CS and PS reporting units projected a decline in the estimated future cash flows primarily triggered by additional U.K. government actions which were announced on June 29, 2018. Accordingly, we performed an interim goodwill impairment test for these reporting units. As a result, we determined that the carrying values of these reporting units exceeded their estimated fair value and recorded non-cash goodwill impairment charges of $332 million (pre-tax and after-tax) primarily for our CS reporting unit. The discount rate and terminal growth rate used for the CS reporting unit in the first quarter 2019 impairment test were 8.5% and 1.25% . The discount rate and terminal growth rate used for the PS reporting unit in the first quarter 2019 impairment test were 8.0% and 1.25% . In the fourth quarter of 2019, as a result of our annual goodwill impairment test, we determined that the carrying values of our CS and PS reporting units exceeded their estimated fair value and recorded non-cash charges of $465 million ( $445 million after-tax) for the CS reporting unit and $741 million (pre-tax and after-tax) for the PS reporting unit. The additional impairments were primarily due to declines in the reporting units’ estimated future cash flows and the selection of higher discount rates. The declines in estimated future cash flows were primarily attributed to additional government reimbursement reductions and competitive pressures within the U.K. The risk of successfully achieving certain business initiatives was the primary factor in the use of a higher discount rate. The discount rate and terminal growth rate used for the CS reporting unit in our 2019 annual impairment test were 10.0% and 1.25% . The discount rate and terminal growth rate used for the PS reporting unit in our 2019 annual impairment test were 9.0% and 1.25% . At March 31, 2019, both CS and PS reporting units had no remaining goodwill balances. Fiscal 2018 In 2018, we recorded total non-cash charges of $1,283 million (pre-tax and after-tax) to impair the carrying value of goodwill within our European Pharmaceutical Solutions segment. During the second quarter of 2018, our former McKesson Europe reporting unit projected a decline in its estimated future cash flows primarily triggered by government reimbursement reductions in their retail business in the U.K. Accordingly, we performed an interim one-step goodwill impairment test in accordance with the amended goodwill guidance for this reporting unit prior to our annual impairment test. As a result of the interim impairment test, we determined that the carrying value of this reporting unit exceeded its estimated fair value and recorded a non-cash charge of $350 million (pre-tax and after-tax) to impair the carrying value of this reporting unit’s goodwill. The discount rate and terminal growth rate used in our 2018 second quarter impairment test were 7.5% and 1.25% compared to 7.0% and 1.5% in our 2017 annual impairment test. Additionally, as a result of our 2018 annual impairment test, we determined that the carrying value of the former McKesson Europe reporting unit further exceeded its estimated fair value and recorded a non-cash goodwill impairment charge of $933 million (pre-tax and after-tax) in the fourth quarter of 2018. This reporting unit had a further decline in its estimated future cash flows driven by weakening script growth outlook in our U.K. business and by a more competitive environment in France during the fourth quarter of 2018. The discount rate and terminal growth rate used in our 2018 annual impairment test were 8.0% and 1.25% . Rexall Health: Fiscal 2018 In 2018, as a result of our 2018 annual impairment test, we determined that the carrying value of our Rexall Health reporting unit within Other exceeded its estimated fair value and recorded a non-cash goodwill impairment charge of $455 million (pre-tax and after-tax). The impairment was the result of a decline in estimated future cash flows primarily driven by significant generics reimbursement reductions across Canada and minimum wage increases in multiple provinces which can only be partially mitigated through the business’ cost saving efforts. The discount rate and terminal growth rate used in our impairment testing for this reporting unit were 10.0% and 2.0% . At March 31, 2019 and 2018, the Rexall Health reporting unit had no remaining goodwill related to our acquisition of Rexall Health. Enterprise Information Solutions: Fiscal 2017 In conjunction with the 2017 Healthcare Technology Net Asset Exchange, we evaluated strategic options for our EIS business, which was a reporting unit within Other. In 2017, we recorded a non-cash pre-tax charge of $290 million ( $282 million after-tax) to impair the carrying value of this reporting unit’s goodwill. The impairment primarily resulted from a decline in estimated cash flows. The amount of goodwill impairment for the EIS reporting unit was determined under the former accounting guidance on goodwill impairment testing, and computed as the excess of the carrying value of the reporting unit’s goodwill over its implied fair value of its goodwill. Refer to Financial Note 21, “Fair Value Measurements,” for more information on this nonrecurring fair value measurement. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges We recorded pre-tax restructuring and asset impairment charges of $597 million , $567 million and $18 million in 2019, 2018 and 2017. These charges are included under the caption, “Restructuring and Asset Impairment Charges” within operating expenses in the accompanying consolidated statements of operations. Fiscal 2019 Initiatives On April 25, 2018, the Company announced a strategic growth initiative intended to drive long-term incremental profit growth and increase operational efficiency. The initiative consists of multiple growth priorities and plans to optimize the Company’s operating models and cost structures primarily through the centralization and outsourcing of certain administrative functions and cost management. As part of the growth initiative, we committed to implement certain actions including a reduction in workforce, facility consolidation and store closures. We expect to record total pre-tax charges of approximately $140 million to $180 million , of which we recorded pre-tax charges of $135 million ( $122 million after-tax) in 2019. This set of the initiatives will be substantially completed by the end of 2020. Estimated remaining charges primarily consist of exit-related costs including contract termination costs. As previously announced on November 30, 2018, the Company relocated its corporate headquarters from San Francisco, California to Irving, Texas to improve efficiency, collaboration and cost competitiveness, effective April 1, 2019. We anticipate that the relocation will be completed by January 2021. We expect to record total pre-tax charges of approximately $80 million to $130 million and for 2019 recorded pre-tax charges of $33 million ( $24 million after-tax) primarily representing employee severance. Estimated remaining charges primarily consist of lease and other exit-related costs, employee retention and relocation expenses. During the fourth quarter of 2019, the Company committed to additional programs to continue our operating model and cost optimization efforts. We continue to implement centralization of certain functions and outsourcing through the expanded arrangement with a third-party vendor to achieve operational efficiency. The programs also include reorganization and consolidation of our business operations and related headcount reductions as well as the further closures of retail pharmacy stores in Europe and facilities. We expect to incur total pre-tax charges of approximately $300 million to $350 million for these programs, which are expected to be completed by the end of 2021. In 2019, pre-tax charges of $163 million ( $127 million after-tax) were recorded, which primarily represent employee severance and accelerated depreciation expense. Estimated remaining charges primarily consist of facility and other exit costs and employee-related costs. Restructuring charges for the fiscal 2019 initiatives for the year ended March 31, 2019 consisted of the following: Year Ended March 31, 2019 (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Corporate Total Severance and employee-related costs, net $ 50 $ 33 $ 19 $ 16 $ 36 $ 154 Exit and other-related costs (1) 7 3 20 57 57 144 Asset impairments and accelerated depreciation 6 5 3 18 1 33 Total $ 63 $ 41 $ 42 $ 91 $ 94 $ 331 (1) Exit and other-related costs primarily include lease and other contract exit costs associated with closures of facilities and retail pharmacy stores as well as project consulting fees. The following table summarizes the activity related to the restructuring liabilities associated with the fiscal 2019 initiatives for the year ended March 31, 2019: (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Corporate Total Balance, March 31, 2018 $ — $ — $ — $ — $ — $ — Restructuring charges recognized 63 41 42 91 94 331 Non-cash charges (6 ) (5 ) (3 ) (18 ) (1 ) (33 ) Cash payments (8 ) (5 ) (23 ) (52 ) (53 ) (141 ) Other (18 ) 7 (1 ) 8 (3 ) (7 ) Balance, March 31, 2019 (1) $ 31 $ 38 $ 15 $ 29 $ 37 $ 150 (1) As of March 31, 2019, the total reserve balance was $150 million of which $117 million was recorded in other accrued liabilities and $33 million was recorded in other noncurrent liabilities. Fiscal 2018 McKesson Europe Plan In the second quarter of 2018, we committed to a restructuring plan, which primarily consists of the closures of underperforming retail pharmacy stores in the U.K. and a reduction in workforce. Under this plan, we expect to record total pre-tax charges of approximately $90 million to $130 million for our European Pharmaceutical Solutions segment, of which $92 million of pre-tax charges were recorded to date. The plan will be substantially completed by 2020. In 2019 and 2018, we recorded pre-tax charges of $18 million ( $16 million after-tax) and $74 million ( $67 million after-tax) in operating expenses primarily representing employee severance and lease exit costs. We made cash payments of $32 million and $10 million during 2019 and 2018, primarily related to severance. The reserve balances as of March 31, 2019 and 2018 were $19 million and $42 million , recorded in other accrued liabilities in our consolidated balance sheets. Estimated remaining restructuring charges primarily consist of lease termination and other exit costs. Fiscal 2016 Cost Alignment Plan On March 14, 2016, we committed to a restructuring plan to lower our operating costs (the “Cost Alignment Plan”). The Cost Alignment Plan primarily consists of a reduction in workforce, and business process initiatives. We expected to record total pre-tax charges of approximately $250 million to $270 million , of which $256 million of pre-tax charges were recorded to date. There were no material restructuring charges recorded during 2019, 2018 and 2017. We made cash payments of $18 million and $45 million during 2019 and 2018, primarily related to severance. The reserve balances as of March 31, 2019 and 2018 were $9 million and $39 million , recorded in other accrued liabilities, and $25 million and $30 million recorded in other noncurrent liabilities in our consolidated balance sheets. Estimated remaining restructuring charges primarily consist of exit-related activities for our European Pharmaceutical Solutions segment. Other plans There were no material restructuring charges for other plans recorded during 2019, 2018 and 2017. Long-Lived Asset Impairments McKesson Europe In 2019, we recorded non-cash pre-tax charges of $210 million ( $172 million after-tax) to impair the carrying value of certain long-lived assets (primarily pharmacy licenses) for our U.K. retail business primarily driven by government reimbursement reductions and competitive pressures in the U.K. In 2018, we recorded non-cash pre-tax charges of $446 million ( $410 million after-tax) to impair the carrying value of certain intangible assets (primarily customer relationships and pharmacy licenses), store assets and capitalized software assets due to continuing declines in estimated future cash flows in our European businesses including consideration of significant government reimbursement reductions in our U.K. retail business. In 2019 and 2018, we used an income approach (DCF method) or a combination of an income approach and a market approach to estimate the fair value of the long-lived assets. The fair value of the intangible assets is considered a Level 3 fair value measurement due to the significance of unobservable inputs developed using company specific information. Rexall Health In 2019 and 2018, we recorded non-cash charges of $35 million and $33 million (pre-tax and after-tax) to impair certain intangible assets (primarily customer relationships) for our Rexall Health retail business. The impairments were primarily the results of the decline in estimated future cash flows for this business. The estimated cash flow projections were negatively affected by lower projected overall growth rate resulting from the ongoing impact of government regulations in 2019 and significant generics reimbursement reductions across Canada and minimum wage increases in multiple provinces in 2018. We utilized an income approach (DCF method) for estimating the fair value of long-lived assets. The fair value of the intangible assets is considered a Level 3 fair value measurement due to the significance of unobservable inputs developed using company specific information. There were no material impairments of long-lived assets in 2017. |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations 2019 Acquisitions Medical Specialties Distributors LLC (“MSD”) On June 1, 2018, we completed our acquisition of MSD for the net purchase consideration of $784 million , which was funded from cash on hand. MSD is a leading national distributor of infusion and medical-surgical supplies as well as a provider of biomedical services to alternate site and home health providers. The financial results of MSD have been included in our consolidated statements of operations within our Medical-Surgical Solutions segment since the acquisition date. The adjusted provisional fair value of assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $240 million and $163 million . Approximately $381 million of the adjusted preliminary purchase price allocation has been assigned to goodwill, which reflects the expected future benefits from certain synergies and intangible assets that do not qualify for separate recognition. The adjusted preliminary purchase price allocation includes acquired identifiable intangibles of $326 million primarily representing customer relationships with a weighted average life of 18 years. These amounts are provisional within the measurement period and subject to change as our fair value assessments are finalized. The following table summarizes the preliminary recording of the fair value of the assets acquired and liabilities assumed for this acquisition as of the acquisition date. (In millions) Amounts Recognized as of Acquisition Date (Provisional As Adjusted) Receivables $ 113 Other current assets, net of cash and cash equivalents acquired 72 Goodwill 381 Intangible assets 326 Other long-term assets 55 Current liabilities (72 ) Other long-term liabilities (91 ) Net assets acquired, net of cash and cash equivalents $ 784 2018 Acquisitions RxCrossroads On January 2, 2018, we completed our acquisition of RxCrossroads for the net purchase consideration of $720 million , which was funded from cash on hand. The financial results of RxCrossroads have been included in the consolidated statements of operations within our U.S. Pharmaceutical and Specialty Solutions segment since the acquisition date. The fair value of assets acquired and liabilities assumed as of the acquisition date were finalized upon completion of the measurement period. As of December 31, 2018, the final amounts of fair value recognized for assets acquired and liabilities assumed as of the acquisition date, excluding goodwill and intangibles, were $129 million and $57 million . Approximately $386 million of the final purchase price allocation was assigned to goodwill, which reflects the expected future benefits from certain synergies and intangible assets that do not qualify for separate recognition. The final purchase price allocation included acquired identifiable intangibles of $262 million primarily representing customer relationships and trade names with a weighted average life of 14 years. CoverMyMeds LLC (“CMM”) On April 3, 2017, we completed our acquisition of CMM for the net purchase consideration of $1.3 billion , which was funded from cash on hand. The fair value of assets acquired and liabilities assumed as of the acquisition date were finalized upon completion of the measurement period in April 2018. The financial results of CMM have been included in our consolidated statements of operations within Other since the acquisition date. Pursuant to the agreement, McKesson may pay up to an additional $160 million of contingent consideration based on CMM’s financial performance for 2018 and 2019. As a result, we recorded a liability for this remaining contingent consideration at its estimated fair value of $113 million as of the acquisition date on our consolidated balance sheet. The contingent consideration was estimated using a Monte Carlo simulation, which utilized Level 3 inputs under the fair value measurement and disclosure guidance, including estimated financial forecasts. The contingent liability was re-measured at fair value at each reporting date until the liability is extinguished with changes in fair value being recorded in our consolidated statements of operations. The initial fair value of this contingent consideration was a non-cash investing activity. In May 2018, we made a cash payment of $68 million representing the contingent consideration for 2018. As of March 31, 2019 and 2018, the related liability was $69 million and $124 million . Other During 2018, we also completed our acquisitions of intraFUSION, Inc. (“intraFUSION”), BDI Pharma, LLC (“BDI”) and Uniprix Group (“Uniprix”) for net cash consideration of $485 million , which was funded from cash on hand. The fair value of assets acquired and liabilities assumed of intraFUSION, BDI and Uniprix as of the acquisition dates were finalized upon completion of the measurement period. As of September 30, 2018, the final amounts of fair value recognized for the assets acquired and liabilities assumed for these acquisitions as of the acquisition dates, excluding goodwill and intangibles, were $292 million and $160 million . Approximately $246 million of the final purchase price allocation was assigned to goodwill, which reflects the expected future benefits of certain synergies and intangible assets that do not qualify for separate recognition. The final purchase price allocation included acquired identifiable intangibles of $118 million primarily representing customer relationships. The financial results of intraFUSION and BDI have been included within our U.S. Pharmaceutical and Specialty Solutions segment since the acquisition dates. The financial results of Uniprix have been included within Other since the acquisition date. 2017 Acquisitions Rexall Health In the third quarter of 2017, we completed our acquisition of Rexall Health which operated approximately 400 retail pharmacies in Canada, particularly in Ontario and Western Canada. The net cash purchase consideration of $2.9 billion Canadian dollars (approximately $2.1 billion ) was funded from cash on hand. The measurement period to finalize the accounting for this acquisition ended in the third quarter of 2018. As part of the transaction, McKesson agreed to divest 27 local stores that the Competition Bureau of Canada identified during its review of the transaction. During 2018, we completed the sales of all 27 stores and received net cash proceeds of $116 million Canadian dollars (approximately $94 million ) from a third-party buyer. We also received $147 million Canadian dollars (approximately $119 million ) in cash from the third-party seller of Rexall Health as the settlement of the post-closing purchase price adjustment related to these store divestitures. No gain or loss was recognized from the sales of these stores. On May 23, 2018, as the result of resolving certain indemnity and other claims related to this acquisition, $125 million Canadian dollars (approximately $97 million ) was released to us from an escrow account. The receipt of this cash was recorded as a settlement gain within operating expenses in our consolidated statement of operations in 2019. Other During 2017, we also completed our acquisitions of Vantage, Biologics, Inc. (“Biologics”) and UDG Healthcare PLC (“UDG”) for net cash consideration of $1.6 billion . Other Acquisitions During the three years presented, we also completed a number of other small acquisitions within all of our operating segments. Financial results for our business acquisitions have been included in our consolidated financial statements since their respective acquisition dates. Purchase prices for our business acquisitions have been allocated based on estimated fair values at the date of acquisition. Goodwill recognized for our business acquisitions is generally not expected to be deductible for tax purposes. However, if we acquire the assets of a company, the goodwill may be deductible for tax purposes. |
Healthcare Technology Net Asset
Healthcare Technology Net Asset Exchange | 12 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Healthcare Technology Net Asset Exchange | Healthcare Technology Net Asset Exchange In the fourth quarter of 2017, we contributed the majority of our McKesson Technology Solutions businesses (“Core MTS Business”) to the newly formed joint venture, Change Healthcare, under the terms of a contribution agreement previously entered into between McKesson and Change Healthcare Inc. (“Change”, formerly known as Change Healthcare Holdings, Inc.) and others including shareholders of Change. In exchange for the contribution, we own 70% of the joint venture with the remaining equity ownership held by shareholders of Change. The joint venture is jointly governed by us and shareholders of Change . Change Healthcare Inc., the entity that owns 30% of the joint venture, filed a registration statement with the Securities and Exchange Commission on March 15, 2019 and amended on April 5, 2019 regarding its intent to pursue an initial public offering. Gain from Healthcare Technology Net Asset Exchange We accounted for this transaction as a sale of the Core MTS Business and a subsequent purchase of a 70% interest in the newly formed joint venture. Accordingly, in 2017, we deconsolidated the Core MTS Business and recorded a pre-tax gain of $3.9 billion (after-tax gain of $3.0 billion ) in operating expenses. Additionally, in 2018, we recorded a pre-tax gain of $37 million (after-tax gain of $22 million ) in operating expenses upon the finalization of net working capital and other adjustments. During 2018, we received $126 million in cash from Change Healthcare representing the final settlement of the net working capital and other adjustments. Equity Method Investment in Change Healthcare Our investment in the joint venture is accounted for using the equity method of accounting on a one-month reporting lag. We recorded our proportionate share of loss from Change Healthcare of $194 million and $248 million in 2019 and 2018, which included transaction and integration expenses incurred by the joint venture and basis differences between the joint venture and McKesson including amortization of fair value adjustments primarily representing incremental intangible amortization and removal of profit associated with the recognition of deferred revenue. The proportionate share of loss from Change Healthcare recorded in 2018, was partially offset by a provisional tax benefit of $76 million recognized by Change Healthcare primarily due to a reduction in the future applicable tax rate related to the December 2017 enactment of the 2017 Tax Act. These amounts were recorded under the caption, “Loss from Equity Method Investment in Change Healthcare,” in our consolidated statement of operations. At March 31, 2019 and 2018, our carrying value of this equity method investment was $3,513 million and $3,728 million , which exceeded our proportionate share of the joint venture’s book value of net assets by approximately $4,158 million and $4,472 million , primarily reflecting equity method intangible assets and goodwill. Related Party Transactions In connection with the transaction, McKesson, Change Healthcare and certain shareholders of Change entered into various ancillary agreements, including transition services agreements (“TSA”), a transaction and advisory fee agreement (“Advisory Agreement”) and certain other commercial agreements. Fees incurred or earned from Advisory Agreement were not material for 2019 and 2018. Fees incurred or earned from TSA were $60 million in 2019, $91 million in 2018 and not material in 2017. Transition service fees are included within operating expenses in our consolidated statements of operations. Revenues recognized and expenses incurred under commercial arrangements with Change Healthcare were not material during 2019, 2018 and 2017. At March 31, 2019 and 2018, receivables due from the joint venture were not material. Tax Receivable Agreement In connection with the net asset exchange transaction, we also entered into a tax receivable agreement (“TRA”) with the shareholders of Change. At March 31, 2018 , we had a $90 million noncurrent liability payable to the shareholders of Change. During 2019, we renegotiated the terms of the TRA which resulted in the extinguishment and derecognition of the $90 million noncurrent liability. In exchange for the shareholders of Change agreeing to extinguish the liability, we agreed to an allocation of certain tax amortization that had the effect of reducing the amount of a distribution from the Change Healthcare joint venture that would otherwise have been required to be made to the shareholders of Change. As a result of the renegotiation, McKesson was relieved from any potential future obligations associated with the noncurrent liability and recognized a pre-tax credit of $90 million ( $66 million after-tax) in operating expenses in the accompanying consolidated statement of operations in 2019. We had no outstanding payable balance to the shareholders of Change at March 31, 2019. |
Divestitures
Divestitures | 12 Months Ended |
Mar. 31, 2019 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Divestitures | Divestitures Fiscal 2019 Equity Investment In November 2018, we divested all of our ownership interest in an equity investment included in Other for proceeds of approximately $61 million . As a result, we recorded a pre-tax gain of $56 million ( $41 million after-tax) in the third quarter of 2019. The gain is included within other income, net, in our consolidated statement of operations. Under the terms of agreements entered into for this transaction, we elected to receive cash consideration of $23 million and concurrently contribute $38 million of the proceeds to obtain an equity interest in a newly formed entity. Fiscal 2018 Enterprise Information Solutions On August 1, 2017, we entered into an agreement with a third party to sell our EIS business included in Other for $185 million , subject to adjustments for net debt and working capital. On October 2, 2017, the transaction closed upon satisfaction of all closing conditions including the termination of the waiting period under U.S. antitrust laws. We received net cash proceeds of $169 million after $16 million of assumed net debt by the third party. We recognized a pre-tax gain of $109 million ( $30 million after-tax) upon the disposition of this business in the third quarter of 2018 within operating expenses. Equity Investment On July 18, 2017, we completed the sale of an equity investment included in our U.S. Pharmaceutical and Specialty Solutions segment to a third party for total cash proceeds of $42 million and recorded a pre-tax gain of $43 million ( $26 million after-tax) within other income, net, in the second quarter of 2018. Fiscal 2017 There were no material divestitures in 2017. These divestitures did not meet the criteria to be reported as discontinued operations since they did not constitute a significant strategic business shift. Accordingly, pre-tax gains from 2019 and 2018 divestitures were recorded within continuing operations of our consolidated statements of operations. Pre- and after-tax income of divested businesses were not material for 2019 and 2018. Discontinued Operations On May 31, 2016, we completed the sale of our Brazilian pharmaceutical distribution business and recognized an after-tax loss of $113 million within discontinued operations in 2017 primarily for the settlement of certain indemnification matters as well as the release of the cumulative translation losses. We made a payment of approximately $100 million related to the sale of this business. The results of discontinued operations for the years ended March 31, 2019, 2018 and 2017 were not material except for the loss recognized upon the disposition of our Brazilian business in 2017. As of March 31, 2019 and 2018, the carrying amounts of total assets and liabilities of discontinued operations were not material. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Divestitures Fiscal 2019 Equity Investment In November 2018, we divested all of our ownership interest in an equity investment included in Other for proceeds of approximately $61 million . As a result, we recorded a pre-tax gain of $56 million ( $41 million after-tax) in the third quarter of 2019. The gain is included within other income, net, in our consolidated statement of operations. Under the terms of agreements entered into for this transaction, we elected to receive cash consideration of $23 million and concurrently contribute $38 million of the proceeds to obtain an equity interest in a newly formed entity. Fiscal 2018 Enterprise Information Solutions On August 1, 2017, we entered into an agreement with a third party to sell our EIS business included in Other for $185 million , subject to adjustments for net debt and working capital. On October 2, 2017, the transaction closed upon satisfaction of all closing conditions including the termination of the waiting period under U.S. antitrust laws. We received net cash proceeds of $169 million after $16 million of assumed net debt by the third party. We recognized a pre-tax gain of $109 million ( $30 million after-tax) upon the disposition of this business in the third quarter of 2018 within operating expenses. Equity Investment On July 18, 2017, we completed the sale of an equity investment included in our U.S. Pharmaceutical and Specialty Solutions segment to a third party for total cash proceeds of $42 million and recorded a pre-tax gain of $43 million ( $26 million after-tax) within other income, net, in the second quarter of 2018. Fiscal 2017 There were no material divestitures in 2017. These divestitures did not meet the criteria to be reported as discontinued operations since they did not constitute a significant strategic business shift. Accordingly, pre-tax gains from 2019 and 2018 divestitures were recorded within continuing operations of our consolidated statements of operations. Pre- and after-tax income of divested businesses were not material for 2019 and 2018. Discontinued Operations On May 31, 2016, we completed the sale of our Brazilian pharmaceutical distribution business and recognized an after-tax loss of $113 million within discontinued operations in 2017 primarily for the settlement of certain indemnification matters as well as the release of the cumulative translation losses. We made a payment of approximately $100 million related to the sale of this business. The results of discontinued operations for the years ended March 31, 2019, 2018 and 2017 were not material except for the loss recognized upon the disposition of our Brazilian business in 2017. As of March 31, 2019 and 2018, the carrying amounts of total assets and liabilities of discontinued operations were not material. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We provide share-based compensation to our employees, officers and non-employee directors, including stock options, an employee stock purchase plan (“ESPP”), restricted stock units (“RSUs”), performance-based restricted stock units (“PeRSUs”) and performance-based stock units ("PSUs", formerly referred to as total shareholder return units or “TSRUs”) (collectively, “share-based awards”). Most of our share-based awards are granted in the first quarter of each fiscal year. Compensation expense for the share-based awards is recognized for the portion of awards ultimately expected to vest. We estimate the number of share-based awards that will ultimately vest primarily based on historical experience. The estimated forfeiture rate established upon grant is re-assessed throughout the requisite service period and is adjusted when actual forfeitures occur. The actual forfeitures in future reporting periods could be higher or lower than current estimates. The compensation expense recognized has been classified in the consolidated statements of operations or capitalized in the consolidated balance sheets in the same manner as cash compensation paid to our employees. No share-based compensation expenses were capitalized as part of the cost of an asset in 2019 , and no material amounts were capitalized in 2018 and 2017 . Impact on Net Income The components of share-based compensation expense and related tax benefits are as follows: Years Ended March 31, (In millions) 2019 2018 2017 Restricted stock unit awards (1) $ 75 $ 46 $ 79 Stock options 12 14 24 Employee stock purchase plan 8 9 12 Share-based compensation expense 95 69 115 Tax benefit for share-based compensation expense (2) (12 ) (28 ) (92 ) Share-based compensation expense, net of tax $ 83 $ 41 $ 23 (1) Includes compensation expense recognized for RSUs, PeRSUs and PSUs. (2) Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of pre-tax compensation expense is not tax-deductible. Income tax expense for 2019 included discrete income tax expense of $4 million , 2018 and 2017 included discrete income tax benefits of $8 million and $54 million related to the adoption of the amended accounting guidance on share-based compensation. Stock Plans In July 2013, our stockholders approved the 2013 Stock Plan to replace the 2005 Stock Plan. These stock plans provide our employees, officers and non-employee directors the opportunity to receive equity-based, long-term incentives in the form of stock options, restricted stock, RSUs, PeRSUs, PSUs and other share-based awards. The 2013 Stock Plan reserves 30 million shares plus the remaining number of shares reserved but unused under the 2005 Stock Plan. As of March 31, 2019 , 25 million shares remain available for future grant under the 2013 Stock Plan. Stock Options Stock options are granted with an exercise price at no less than the fair market value and those options granted under the stock plans generally have a contractual term of seven years and follow a four year vesting schedule. Compensation expense for stock options is recognized on a straight-line basis over the requisite service period and is based on the grant-date fair value for the portion of the awards that is ultimately expected to vest. We use the Black-Scholes options-pricing model to estimate the fair value of our stock options. Once the fair value of an employee stock option is determined, current accounting practices do not permit it to be changed, even if the estimates used are different from actual. The options-pricing model requires the use of various estimates and assumptions as follows: • Expected stock price volatility is based on a combination of historical volatility of our common stock and implied market volatility. We believe that this market-based input provides a reasonable estimate of our future stock price movements and is consistent with employee stock option valuation considerations. • Expected dividend yield is based on historical experience and investors’ current expectations. • The risk-free interest rate for periods within the expected life of the option is based on the constant maturity U.S. Treasury rate in effect at the time of grant. • Expected life of the options is based primarily on historical employee stock option exercises and other behavior data and reflects the impact of changes in contractual life of current option grants compared to our historical grants. Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: Years Ended March 31, 2019 2018 2017 Expected stock price volatility 26% 25% 21% Expected dividend yield 0.9% 0.8% 0.7% Risk-free interest rate 2.8% 1.7% 1.1% Expected life (in years) 4.6 4.5 4 The following is a summary of stock options outstanding at March 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at Year End (In millions) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Exercisable at Year End (In millions) Weighted- Average Exercise Price $ 87.24 – $ 162.55 1 4 $ 133.54 1 $ 119.65 162.56 – 239.93 2 3 197.98 1 199.08 3 2 The following table summarizes stock option activity during 2019 : (In millions, except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) Outstanding, March 31, 2018 3 $ 161.27 4 $ 36 Granted 1 141.93 Cancelled — 167.37 Exercised (1) 86.65 Outstanding, March 31, 2019 3 $ 166.72 3 $ 4 Vested and expected to vest (1) 3 $ 166.88 3 $ 3 Vested and exercisable, March 31, 2019 2 167.27 2 4 (1) The number of options expected to vest takes into account an estimate of expected forfeitures. (2) The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options. The following table provides data related to stock option activity: Years Ended March 31, (In millions, except per share data) 2019 2018 2017 Weighted-average grant date fair value per stock option $ 34.98 $ 34.24 $ 32.19 Aggregate intrinsic value on exercise $ 16 $ 60 $ 97 Cash received upon exercise $ 29 $ 77 $ 54 Tax benefits realized related to exercise $ 4 $ 22 $ 38 Total fair value of stock options vested $ 16 $ 20 $ 18 Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax $ 15 $ 15 $ 21 Weighted-average period in years over which stock option compensation cost is expected to be recognized 2 2 2 Restricted Stock Unit Awards RSUs, which entitle the holder to receive at the end of a vesting term a specified number of shares of the Company’s common stock, are accounted for at fair value at the date of grant. Total compensation expense for RSUs under our stock plans is determined by the product of the number of shares that are expected to vest and the grant date market price of the Company’s common stock. The Compensation Committee determines the vesting terms at the time of grant. These awards generally vest in three to four years. We recognize compensation expense for RSUs on a straight-line basis over the requisite service period. Non-employee directors receive an annual grant of RSUs, which vest immediately and are expensed upon grant. The director may elect to receive the underlying shares immediately or defer receipt of the shares if they meet director stock ownership guidelines. The shares will be automatically deferred for those directors who do not meet the director stock ownership guidelines. At March 31, 2019 , approximately 63,000 RSUs for our directors are vested. PeRSUs are awards for which the number of RSUs awarded is conditional upon the attainment of one or more performance objectives over a specified period. Each year, the Compensation Committee approves the target number of PeRSUs representing the base number of RSUs that could be awarded if performance goals are attained. PeRSUs are accounted for as variable awards until the performance goals are reached at which time the grant date is established. Total compensation expense for PeRSUs is determined by the product of the number of shares eligible to be awarded and expected to vest, and the market price of the Company’s common stock, commencing at the inception of the requisite service period. During the performance period, the compensation expense for PeRSUs is re-computed using the market price and the performance modifier at the end of a reporting period. At the end of the performance period, if the goals are attained, the awards are granted and classified as RSUs and accounted for on that basis. We recognize compensation expense for these awards on a straight-line basis over the requisite aggregate service period of generally four years. PSUs, formerly referred to as TSRUs, are conditional upon the attainment of market and performance objectives over a specified period. The number of vested PSUs is assessed at the end of a three -year performance period upon attainment of a total shareholder return metric relative to a peer group of companies and meeting certain earnings per share targets, and for special PSUs granted in 2019 meeting certain cumulative operating profit metric. We use the Monte Carlo simulation model to measure the fair value of the total shareholder return portion of the PSUs. The earnings per share portion of the PSUs is measured at the grant date market price. PSUs have a requisite service period of approximately three years. Expense is attributed to the requisite service period on a straight-line basis based on the fair value of the PSUs, adjusted for the performance modifier at the end of each reporting period. For PSUs that are designated as equity awards, the fair value is measured at the grant date. For PSUs that are eligible for cash settlement and designated as liability awards, we re-measure the fair value at the end of each reporting period and adjust a corresponding liability on our balance sheet for changes in fair value. The weighted-average assumptions used in the Monte Carlo valuations are as follows: Years Ended March 31, 2019 2018 2017 Expected stock price volatility 31% 29% 23% Expected dividend yield 0.9% 0.8% 0.7% Risk-free interest rate 2.6% 1.5% 1.1% Expected life (in years) 3 3 3 The following table summarizes activity for restricted stock unit awards (RSUs, PeRSUs, and PSUs) during 2019 : (In millions, except per share data) Shares Weighted- Average Grant Date Fair Value Per Share Nonvested, March 31, 2018 2 $ 176.74 Granted 1 143.94 Cancelled — 147.88 Vested (1) 210.30 Nonvested, March 31, 2019 2 $ 142.77 The following table provides data related to restricted stock unit award activity: Years Ended March 31, (In millions) 2019 2018 2017 Total fair value of shares vested $ 59 $ 156 $ 109 Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax $ 119 $ 97 $ 99 Weighted-average period in years over which restricted stock unit award cost is expected to be recognized 2 2 2 ESPP The Company has an ESPP under which 21 million shares have been authorized for issuance. The ESPP allows eligible employees to purchase shares of our common stock through payroll deductions. The deductions occur over three -month purchase periods and the shares are then purchased at 85% of the market price at the end of each purchase period. Employees are allowed to terminate their participation in the ESPP at any time during the purchase period prior to the purchase of the shares. The 15% discount provided to employees on these shares is included in compensation expense. The shares related to funds outstanding at the end of a quarter are included in the calculation of diluted weighted average shares outstanding. These amounts have not been significant for all the years presented. We recognize costs for employer matching contributions as ESPP expense over the relevant purchase period. Shares issued under the ESPP were not material in 2019 , 2018 , and 2017. At March 31, 2019 , 3 million shares remain available for issuance. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Mar. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income, Net | Other Income, Net Years Ended March 31, (In millions) 2019 2018 2017 Interest income $ 39 $ 48 $ 29 Equity in earnings, net (1) 43 32 30 Gain from sale of equity investment (2) 56 43 — Other, net 44 7 18 Total $ 182 $ 130 $ 77 (1) Primarily recorded within our European Pharmaceutical Solutions segment. (2) Amount represented a pre-tax gain from the sale of an equity investment to a third party included in Other during 2019 and in our U.S. Pharmaceutical and Specialty Solutions segment during 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Years Ended March 31, (In millions) 2019 2018 2017 Income from continuing operations before income taxes U.S. $ 1,512 $ 1,175 $ 5,772 Foreign (902 ) (936 ) 1,119 Total income from continuing operations before income taxes $ 610 $ 239 $ 6,891 Income tax expense (benefit) related to continuing operations consists of the following: Years Ended March 31, (In millions) 2019 2018 2017 Current Federal $ (20 ) $ 577 $ 524 State 35 33 86 Foreign 152 205 122 Total current 167 815 732 Deferred Federal 223 (767 ) 767 State 44 17 164 Foreign (78 ) (118 ) (49 ) Total deferred 189 (868 ) 882 Income tax expense (benefit) $ 356 $ (53 ) $ 1,614 We recorded income tax expense of $356 million , benefit of $53 million and expense of $1,614 million related to continuing operations in 2019, 2018 and 2017. Our reported income tax expense rate for 2019 was 58.4% compared to income tax benefit rate of 22.2% for 2018 and an income tax expense rate of 23.4% in 2017. Fluctuations in our reported income tax rates are primarily due to the impact of the 2017 Tax Act, the impact of nondeductible impairment charges, and varying proportions of income attributable to foreign countries that have income tax rates different from the U.S. rate. The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% for 2019, 31.6% for 2018 and 35% for 2017 to the income before income taxes is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Income tax expense at federal statutory rate $ 128 $ 75 $ 2,411 State income taxes net of federal tax benefit 70 50 153 Tax effect of foreign operations (86 ) (146 ) (326 ) Unrecognized tax benefits and settlements 20 454 57 Non-deductible goodwill 357 585 106 Share-based compensation 4 (8 ) (54 ) Net tax benefit on intellectual property transfer (42 ) (178 ) (137 ) Rate differential on gain from Change Healthcare Net Asset Exchange — — (587 ) Impact of change in U.S. tax rate on temporary differences (81 ) (1,324 ) — Transition tax on foreign earnings (5 ) 457 — Other, net (1) (9 ) (18 ) (9 ) Income tax expense (benefit) $ 356 $ (53 ) $ 1,614 (1) Our effective tax rates were impacted by other favorable U.S. federal permanent differences including research and development credits of $7 million , $11 million and $14 million in 2019, 2018 and 2017. Our reported income tax expense rate for 2019 was unfavorably impacted by non-cash pre-tax charges of $1,776 million ( $1,756 million after-tax) to impair the carrying value of goodwill for our European Pharmaceutical Solutions segment, given that these charges are generally not deductible for tax purposes. Our reported income tax benefit rate for 2018 was unfavorably impacted by non-cash charges of $1,738 million (pre-tax and after-tax) to impair the carrying value of goodwill, given that generally no tax benefit was recognized for these charges. Our reported income tax expense rate for 2017 was unfavorably impacted by the non-cash pre-tax charge of $290 million ( $282 million after-tax) to impair the carrying value of goodwill, given that generally the majority of this charge was not deductible for income tax purposes. Refer to Financial Note 2, “Goodwill Impairment Charges,” for more information. During 2019, we sold software between wholly-owned legal entities within the McKesson group that are based in different tax jurisdictions. The transferor entity recognized a gain on the sale of assets that was not subject to income tax in its local jurisdiction; such gain was eliminated upon consolidation. An entity based in the U.S. was the acquirer of the software and is entitled to amortize the purchase price of the assets for tax purposes. In accordance with the recently adopted amended accounting guidance on income taxes, a discrete tax benefit of $42 million was recognized in the second quarter of 2019 with a corresponding increase to a deferred tax asset for the future tax amortization. On December 19, 2016, we sold various software relating to our technology businesses between wholly owned legal entities within the McKesson group that are based in different tax jurisdictions. The transferor entity recognized a gain on the sale of assets that was not subject to income tax in its local jurisdiction; such gain was eliminated upon consolidation. A McKesson entity based in the U.S. was the recipient of the software and is entitled to amortize the fair value of the assets for book and tax purposes. The tax benefit associated with the amortization of these assets is recognized over the tax lives of the assets. As a result, we recognized a net tax benefit of $178 million and $137 million in 2018 and 2017. We no longer recognize the tax benefit associated with this amortization in continuing operations upon adoption of the amended guidance related to intra-entity transfer of an asset other than inventory in 2019. Refer to Financial Note 1, “Significant Accounting Policies,” for more information. On March 1, 2017, we contributed assets to Change Healthcare as described in Financial Note 5, “Healthcare Technology Net Asset Exchange”. While this transaction was predominantly structured as a tax free asset contribution for U.S. federal income tax purposes under Section 721(a) of the Internal Revenue Code, we recorded tax expense of $929 million on the gain. The tax expense was primarily driven by the recognition of a deferred tax liability on the excess book over tax basis in our equity investment in Change Healthcare. In March 2016, amended guidance was issued for employee share-based payment awards. Under the amended guidance, all windfalls and shortfalls related to employee share-based compensation arrangements are recognized within income tax expense. We elected to early adopt this amended guidance in the first quarter of 2017. The primary impact of the adoption was the recognition of excess tax benefits in the income statement on a prospective basis, rather than additional paid-in capital. As a result, we recognized net tax expense of $4 million in 2019 and net tax benefits of $8 million and $54 million in 2018 and 2017. Deferred tax balances consisted of the following: March 31, (In millions) 2019 2018 Assets Receivable allowances $ 70 $ 58 Compensation and benefit related accruals 377 345 Net operating loss and credit carryforwards 885 811 Long-term contractual obligations — 59 Other 216 279 Subtotal 1,548 1,552 Less: valuation allowance (870 ) (751 ) Total assets 678 801 Liabilities Inventory valuation and other assets (2,016 ) (1,869 ) Fixed assets and systems development costs (170 ) (158 ) Intangibles (513 ) (644 ) Change Healthcare Equity Investment (885 ) (814 ) Other (34 ) (71 ) Total liabilities (3,618 ) (3,556 ) Net deferred tax liability $ (2,940 ) $ (2,755 ) Long-term deferred tax asset $ 58 $ 49 Long-term deferred tax liability (2,998 ) (2,804 ) Net deferred tax liability $ (2,940 ) $ (2,755 ) We assess the available positive and negative evidence to determine whether deferred tax assets are more likely than not to be realized. As a result of this assessment, valuation allowances have been recorded on certain deferred tax assets in various tax jurisdictions. The valuation allowance was approximately $870 million and $751 million in 2019 and 2018. The increase of $119 million in valuation allowances in the current year relates primarily to net operating and capital losses incurred in certain tax jurisdictions for which no tax benefit was recognized. We have federal, state and foreign net operating loss carryforwards of $92 million , $3,551 million and $2,143 million . Federal and state net operating losses will expire at various dates from 2019 through 2040. Substantially all our foreign net operating losses have indefinite lives. In addition, we have foreign capital loss carryforwards of $742 million with indefinite lives. The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years: Years Ended March 31, (In millions) 2019 2018 2017 Unrecognized tax benefits at beginning of period $ 1,183 $ 486 $ 555 Additions based on tax positions related to prior years 78 47 7 Reductions based on tax positions related to prior years (234 ) (124 ) (67 ) Additions based on tax positions related to current year 68 778 105 Reductions based on settlements (13 ) (7 ) (113 ) Reductions based on the lapse of the applicable statutes of limitations (25 ) — — Exchange rate fluctuations (5 ) 3 (1 ) Unrecognized tax benefits at end of period $ 1,052 $ 1,183 $ 486 As of March 31, 2019, we had $1,052 million of unrecognized tax benefits, of which $877 million would reduce income tax expense and the effective tax rate, if recognized. The decrease in unrecognized tax benefits in 2019 compared to 2018 is primarily attributable to a $171 million decrease, with a corresponding increase in taxes payable, due to the issuance of new tax regulations. The increase in unrecognized tax benefits in 2018 compared to 2017 is primarily attributable to provisional amounts relating to the application of certain provisions of the 2017 Tax Act, partially offset by a decrease in unrecognized tax benefit due to the resolution of the U.S. Internal Revenue Services (“IRS”) relating to the fiscal years 2010 through 2012. During the next twelve months, we do not expect any material reduction in our unrecognized tax benefits. However, this may change as we continue to have ongoing negotiations with various taxing authorities throughout the year. We report interest and penalties on income taxes as income tax expense. We recognized income tax expense of $33 million in 2019 and income tax benefits of $1 million and $6 million in 2018 and 2017, representing interest and penalties, in our consolidated statements of operations. As of March 31, 2019 and 2018, we had accrued $68 million and $37 million cumulatively in interest and penalties on unrecognized tax benefits. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. The IRS is currently examining our U.S. corporation income tax returns for 2013 through 2015. During the third quarter of 2018, we signed the Revenue Agent’s Report from the U.S. IRS relating to their audit of the fiscal years 2010 through 2012 and recorded a $39 million tax benefit due to the favorable resolution of various uncertain tax positions for those years. During the first quarter of 2017, we reached an agreement with the IRS to settle all outstanding issues relating to the fiscal years 2007 through 2009 without a material impact to our provision for income taxes. We are generally subject to audit by taxing authorities in various U.S. states and in foreign jurisdictions for fiscal years 2010 through the current fiscal year. 2017 Tax Act On December 22, 2017, the U.S. government enacted the 2017 Tax Act, which was comprehensive new tax legislation. The SEC Staff issued guidance on income tax accounting for the 2017 Tax Act on December 22, 2017, which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. In accordance with this guidance, we recognized a tax benefit of $1,324 million in 2018 due to the re-measurement of certain deferred taxes to the lower U.S. federal tax rate mainly driven by a decrease in our deferred tax liabilities for inventories and investments. During 2019, we have not made any measurement period adjustments to this amount. Our reported income tax expense for 2019 included $81 million of tax benefits primarily related to a change in a tax method for inventory approved by the tax authorities and other elections made on our 2018 tax return filed after enactment of the 2017 Tax Act but prior to the reduction in U.S. tax rates. We recognized tax expense of $457 million in 2018 for the one-time transition tax on certain accumulated earnings and profits of our foreign subsidiaries resulting from the 2017 Tax Act. During 2019, we recognized a discrete tax benefit of $5 million in measurement period adjustments to the one-time transition tax on certain accumulated earnings and profits of our foreign subsidiaries. Our accounting for the impact of the 2017 Tax Act was completed as of the period ending December 31, 2018. The 2017 Tax Act made broad and complex changes to the U.S. tax code that affected our fiscal year 2019 and 2018 in multiple ways, including but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; creating the base erosion anti-abuse tax; creating a new provision designed to tax global intangible low-tax income (“GILTI”); and generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries. We have estimated the impact of these changes in our income tax provision for 2019. The Company is allowed to make an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current period expense when incurred. We have elected to treat the tax effect of GILTI as a current period expense when incurred. Undistributed earnings of our foreign operations totaling $4.9 billion were considered indefinitely reinvested. Following enactment of the 2017 Tax Act, the repatriation of cash to the United States is generally no longer taxable for federal income tax purposes. However, the repatriation of cash held outside the United States could be subject to applicable foreign withholding taxes and state income taxes. We may remit foreign earnings to this United States to the extent it is tax efficient to do so. We do not expect the tax impact from remitting these earnings to be material. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Noncontrolling Interests | 12 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests Our redeemable noncontrolling interests relate to our consolidated subsidiary, McKesson Europe. Under the December 2014 domination and profit and loss transfer agreement (the “Domination Agreement”), the noncontrolling shareholders of McKesson Europe are entitled to receive an annual recurring compensation amount of €0.83 per share and a one-time guaranteed dividend for calendar year 2014 of €0.83 per share reduced accordingly for any dividend paid by McKesson Europe in relation to that year. As a result, during 2019, 2018 and 2017, we recorded a total attribution of net income to the noncontrolling shareholders of McKesson Europe of $45 million , $43 million and $44 million . All amounts were recorded in our consolidated statements of operations within the caption, “Net Income Attributable to Noncontrolling Interests,” and the corresponding liability balance was recorded within other accrued liabilities on our consolidated balance sheets. Under the Domination Agreement, the noncontrolling shareholders of McKesson Europe have a right to put (“Put Right”) their noncontrolling shares at €22.99 per share increased annually for interest in the amount of 5 percentage points above a base rate published by the German Bundesbank semi-annually, less any compensation amount or guaranteed dividend already paid by McKesson with respect to the relevant time period (“Put Amount”). The exercise of the Put Right will reduce the balance of redeemable noncontrolling interests. During 2019 there were no material exercises of the Put Right. During 2018, we paid $50 million to purchase 1.9 million shares of McKesson Europe through the exercises of the Put Right by the noncontrolling shareholders, which decreased the carrying value of redeemable noncontrolling interests by $53 million . The balance of redeemable noncontrolling interests is reported as the greater of its carrying value or its maximum redemption value at each reporting date. The redemption value is the Put Amount adjusted for exchange rate fluctuations each period. At March 31, 2019 and 2018, the carrying value of redeemable noncontrolling interests of $1.39 billion and $1.46 billion exceeded the maximum redemption value of $1.23 billion and $1.35 billion . At March 31, 2019 and 2018, we owned approximately 77% of McKesson Europe’s outstanding common shares. Appraisal Proceedings Subsequent to the Domination Agreement’s registration, certain noncontrolling shareholders of McKesson Europe initiated appraisal proceedings (“Appraisal Proceedings”) with the Stuttgart Regional Court (the “Court”) to challenge the adequacy of the Put Amount, annual recurring compensation amount, and/or the guaranteed dividend. During the pendency of the Appraisal Proceedings, such amount will be paid as specified currently in the Domination Agreement. On September 19, 2018, the Court ruled that the Put Amount shall be increased by €0.51 resulting in an adjusted Put Amount of €23.50 . The annual recurring compensation amount and/or the guaranteed dividend remain unadjusted. Noncontrolling shareholders of McKesson Europe appealed this decision. McKesson Europe Holdings GmbH & Co. KGaA also appealed the decision. If upon final resolution of the appeal an upwards adjustment is ordered, we would be required to make certain additional payments for any shortfall to all McKesson Europe noncontrolling shareholders who previously received amounts under the Domination Agreement. Noncontrolling Interests Noncontrolling interests represent third-party equity interests in our consolidated entities primarily related to ClarusONE and Vantage, which were $193 million and $253 million at March 31, 2019 and 2018 on our consolidated balance sheets. During 2019, 2018 and 2017, we allocated a total of $176 million , $187 million and $39 million of net income to noncontrolling interests. Changes in redeemable noncontrolling interests and noncontrolling interests for the years ended March 31, 2019 and 2018 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2017 $ 178 $ 1,327 Net income attributable to noncontrolling interests 187 43 Other comprehensive income — 185 Reclassification of recurring compensation to other accrued liabilities — (43 ) Payments to noncontrolling interests (98 ) — Exercises of Put Right — (53 ) Other (14 ) — Balance, March 31, 2018 $ 253 $ 1,459 Net income attributable to noncontrolling interests 176 45 Other comprehensive income — (66 ) Reclassification of recurring compensation to other accrued liabilities — (45 ) Payments to noncontrolling interests (184 ) — Other (52 ) — Balance, March 31, 2019 $ 193 $ 1,393 There were no material changes in our ownership interests related to redeemable noncontrolling interests during 2019.The effect of changes in our ownership interests related to redeemable noncontrolling interests on our equity of $3 million resulting from exercises of Put Right was recorded as a net increase to McKesson’s stockholders’ paid-in capital during 2018. Net income attributable to McKesson and transfers from redeemable noncontrolling interests were $34 million and $70 million in 2019 and 2018. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share are computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share are computed similar to basic earnings per common share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. The computations for basic and diluted earnings per common share are as follows: Years Ended March 31, (In millions, except per share amounts) 2019 2018 2017 Income from continuing operations $ 254 $ 292 $ 5,277 Net income attributable to noncontrolling interests (221 ) (230 ) (83 ) Income from continuing operations attributable to McKesson 33 62 5,194 Income (Loss) from discontinued operations, net of tax 1 5 (124 ) Net income attributable to McKesson $ 34 $ 67 $ 5,070 Weighted average common shares outstanding: Basic 196 208 221 Effect of dilutive securities: Options to purchase common stock — — 1 Restricted stock units 1 1 1 Diluted 197 209 223 Earnings (Loss) per common share attributable to McKesson: (1) Diluted Continuing operations $ 0.17 $ 0.30 $ 23.28 Discontinued operations — 0.02 (0.55 ) Total $ 0.17 $ 0.32 $ 22.73 Basic Continuing operations $ 0.17 $ 0.30 $ 23.50 Discontinued operations — 0.02 (0.55 ) Total $ 0.17 $ 0.32 $ 22.95 (1) Certain computations may reflect rounding adjustments. Potentially dilutive securities include outstanding stock options, restricted stock units and performance-based and other restricted stock units. Approximately 3 million , 2 million and 2 million potentially dilutive securities for 2019, 2018 and 2017 were excluded from the computations of diluted net earnings per common share, as they were anti-dilutive. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Mar. 31, 2019 | |
Receivables, Net, Current [Abstract] | |
Receivables, Net | Receivables, Net March 31, (In millions) 2019 2018 Customer accounts $ 14,941 $ 14,349 Other 3,584 3,578 Total 18,525 17,927 Allowances (279 ) (216 ) Net $ 18,246 $ 17,711 Other receivables primarily include amounts due from suppliers. The allowances are primarily for estimated uncollectible accounts. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net March 31, (In millions) 2019 2018 Land $ 172 $ 187 Building, machinery, equipment and other 4,154 3,746 Total property, plant and equipment 4,326 3,933 Accumulated depreciation (1,778 ) (1,469 ) Property, plant and equipment, net $ 2,548 $ 2,464 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill were as follows: (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Total Balance, March 31, 2017 $ 3,391 $ 2,789 $ 2,069 $ 2,337 $ 10,586 Goodwill acquired 657 26 — 1,024 1,707 Acquisition accounting, transfers and other adjustments 4 — 1 34 39 Goodwill impairment (1) — (1,283 ) — (455 ) (1,738 ) Goodwill disposed (2) (37 ) (11 ) — (124 ) (172 ) Amount reclassified to assets held for sale — (2 ) — — (2 ) Foreign currency translation adjustments, net 95 331 — 78 504 Balance, March 31, 2018 4,110 1,850 2,070 2,894 10,924 Goodwill acquired 17 52 360 13 442 Goodwill impairment (1) — (1,776 ) — (21 ) (1,797 ) Acquisition accounting, transfers and other adjustments 13 (5 ) 21 6 35 Foreign currency translation adjustments, net (62 ) (121 ) — (63 ) (246 ) Balance, March 31, 2019 $ 4,078 $ — $ 2,451 $ 2,829 $ 9,358 (1) In 2019 and 2018, goodwill impairment charges from our international businesses were translated at average exchange rates during the corresponding period and accumulated goodwill impairment losses described below were translated at year-end exchange rates. (2) 2018 Other amount primarily represents goodwill disposal associated with the sale of our EIS business. Refer to Financial Note 6, “Divestitures” for more information. As of March 31, 2019 , accumulated goodwill impairment losses were $2,943 million in our European Pharmaceutical Solutions segment and $461 million in Other. As of March 31, 2018, accumulated goodwill impairment losses were $1,299 million in our European Pharmaceutical Solutions segment and $456 million in Other. Refer to Financial Note 2 “Goodwill Impairment Charges,” for more information on the impairment charges recorded in 2019 and 2018. Information regarding intangible assets is as follows: March 31, 2019 March 31, 2018 (Dollars in millions) Weighted Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 12 $ 3,818 $ (1,801 ) $ 2,017 $ 3,619 $ (1,550 ) $ 2,069 Service agreements 11 1,017 (430 ) 587 1,037 (386 ) 651 Pharmacy licenses 26 513 (209 ) 304 684 (196 ) 488 Trademarks and trade names 13 887 (232 ) 655 932 (187 ) 745 Technology 4 141 (94 ) 47 147 (84 ) 63 Other 5 288 (209 ) 79 262 (176 ) 86 Total $ 6,664 $ (2,975 ) $ 3,689 $ 6,681 $ (2,579 ) $ 4,102 Amortization expense of intangible assets was $485 million , $503 million and $444 million for 2019 , 2018 and 2017 . Estimated annual amortization expense of intangible assets is as follows: $419 million , $400 million , $368 million , $265 million and $249 million for 2020 through 2024 , and $1,988 million thereafter. All intangible assets were subject to amortization as of March 31, 2019 and 2018 . Refer to Financial Note 3, “Restructuring and Asset Impairment Charges,” for more information on intangible asset impairment charges recorded in 2019 and 2018. |
Debt and Financing Activities
Debt and Financing Activities | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Activities | Debt and Financing Activities Long-term debt consisted of the following: March 31, (In millions) 2019 2018 U.S. Dollar notes (1) (2) 2.28% Notes due March 15, 2019 $ — $ 1,100 3.65% Notes due November 30, 2020 700 — 4.75% Notes due March 1, 2021 323 323 2.70% Notes due December 15, 2022 400 400 2.85% Notes due March 15, 2023 400 400 3.80% Notes due March 15, 2024 1,100 1,100 7.65% Debentures due March 1, 2027 167 167 3.95% Notes due February 16, 2028 600 600 4.75% Notes due May 30, 2029 400 — 6.00% Notes due March 1, 2041 282 282 4.88% Notes due March 15, 2044 411 411 Foreign currency notes (1) (3) Floating Rate Euro Notes due February 12, 2020 (4) 280 337 0.63% Euro Notes due August 17, 2021 673 695 1.50% Euro Notes due November 17, 2025 670 691 1.63% Euro Notes due October 30, 2026 560 669 3.13% Sterling Notes due February 17, 2029 586 630 Lease and other obligations 43 75 Total debt 7,595 7,880 Less: Current portion 330 1,129 Total long-term debt $ 7,265 $ 6,751 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semi-annually. (3) Interest on these foreign bonds and notes is payable annually, except the 2020 Floating Rate Euro Notes. (4) Interest on these notes is payable quarterly. Long-Term Debt Our long-term debt includes both U.S. dollar and foreign currency-denominated borrowings. At March 31, 2019 and March 31, 2018, $7,595 million and $7,880 million of total debt were outstanding, of which $330 million and $1,129 million were included under the caption “Current portion of long-term debt” within our consolidated balance sheets. Fiscal 2019 On November 30, 2018, we completed a public offering of 3.65% Notes due November 30, 2020 (the “2020 Notes”) in a principal amount of $700 million and 4.75% Notes due May 30, 2029 (the “2029 Notes”) in a principal amount of $400 million . Interest on the 2020 Notes and 2029 Notes is payable semi-annually on May 30 th and November 30 th of each year, commencing on May 30, 2019. We utilized the net proceeds from these notes of $1.1 billion , net of discounts and offering expenses, for general corporate purposes. Fiscal 2018 On February 12, 2018, we completed a public offering of Euro-denominated floating rate notes due February 12, 2020 (the “2020 Floating Rate Euro Notes”) in an aggregate principal amount of €250 million and 1.63% Euro-denominated notes due October 30, 2026 (the “2026 Euro Notes”) in an aggregate principal amount of €500 million . On February 16, 2018, we completed a public offering of 3.95% notes due February 16, 2028 (the “2028 USD Notes”) in an aggregate principal amount of $600 million . The 2020 Floating Rate Euro Notes bear an interest at a rate equal to the three-month Euro Interbank Offered Rate plus 0.15% . Interest on the 2020 Floating Rate Euro Notes is payable on February 12, May 12, August 12 and November 12 of each year, commencing on May 12, 2018. Interest on the 2026 Euro Notes is payable on October 30 of each year, commencing on October 30, 2018. Interest on the 2028 USD Notes is payable on February 16 and August 16 of each year, commencing on August 16, 2018. We utilized the net proceeds from these notes of $1.5 billion , net of discounts and offering expenses, to finance the purchase of certain outstanding notes and for working capital and general corporate purposes. Tender Offers and Early Repayments On February 7, 2018, we commenced cash tender offers for a portion of our existing outstanding (i) 7.50% Notes due 2019, (ii) 4.75% Notes due 2021, (iii) 7.65% Debentures due 2027, (iv) 6.00% Notes due 2041 and (v) 4.88% Notes due 2044 (collectively referred to herein as the “Tender Offer Notes”). In connection with the tender offers and an additional repurchase, we paid an aggregate consideration of $1.05 billion to redeem $936 million principal amount of the notes at a redemption price equal to 100% of the principal amount and premiums of $99 million , plus accrued and unpaid interest of $20 million . The redemption of the Tender Offer Notes was accounted for as a debt extinguishment. As a result of the redemption, we incurred a pre-tax loss on debt extinguishment of $109 million ( $70 million after-tax), which included premiums of $99 million and the write-off of unamortized debt issuance costs of $10 million . On March 26, 2018, we paid an aggregate consideration of $317 million to redeem $302 million principal amount of the 7.50% Notes due 2019 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest of $2 million , and the applicable redemption premium of $13 million pursuant to the terms of the indentures. As a result of the redemption, we incurred a pre-tax loss on debt extinguishment of $13 million ( $8 million after-tax), which primarily represented the premiums. Repayments at maturity In 2019, we repaid at maturity our $1.1 billion 2.28% notes due March 15, 2019. In 2018, we repaid at maturity our €500 million Euro-denominated bond due April 26, 2017 and our $500 million 1.40% notes due March 15, 2018. In 2017, we repaid at maturity our €350 million Euro-denominated bond (or, approximately $385 million ) due October 18, 2016, our $500 million 5.70% notes due March 1, 2017 and our $700 million 1.29% notes due March 10, 2017. Each note, which constitutes a “Series”, is an unsecured and unsubordinated obligation of the Company and ranks equally with all of the Company’s existing and, from time-to-time, future unsecured and unsubordinated indebtedness outstanding. Each Series is governed by materially similar indentures and officers’ certificates. Upon required notice to holders of notes with fixed interest rates, we may redeem those notes at any time prior to maturity, in whole or in part, for cash at redemption prices. In the event of the occurrence of both (1) a change of control of the Company and (2) a downgrade of a Series below an investment grade rating by each of Fitch Inc., Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services within a specified period, an offer must be made to purchase that Series from the holders at a price equal to 101% of the then outstanding principal amount of that Series, plus accrued and unpaid interest to, but not including, the date of repurchase. The indenture and the related officers’ certificate for each Series, subject to the exceptions and in compliance with the conditions as applicable, specify that we may not consolidate, merge or sell all or substantially all of our assets, incur liens, or enter into sale-leaseback transactions exceeding specific terms, without lenders’ consent. The indentures also contain customary events of default provisions. Other Information Scheduled principal payments of long-term debt are $330 million in 2020 , $1,062 million in 2021 , $675 million in 2022 , $801 million in 2023 , $1,099 million in 2024 and $3,628 million thereafter. Revolving Credit Facilities We have a syndicated $3.5 billion five -year senior unsecured revolving credit facility (the “Global Facility”), which has a $3.15 billion aggregate sublimit of availability in Canadian dollars, British pound sterling and Euros. The Global Facility matures on October 22, 2020. Borrowings under the Global Facility bear interest based upon the London Interbank Offered Rate, Canadian Dealer Offered Rate for credit extensions denominated in Canadian Dollars, a prime rate, or alternative overnight rates as applicable, plus agreed margins. The Global Facility contains a financial covenant which obligates the Company to maintain a debt to capital ratio of no greater than 65% and other customary investment grade covenants. If we do not comply with these covenants, our ability to use the Global Facility may be suspended and repayment of any outstanding balances under the Global Facility may be required. At March 31, 2019, we were in compliance with all covenants. There were no borrowings under this facility during 2019, 2018 and 2017, and no borrowings outstanding as of March 31, 2019 and 2018. We also maintain bilateral credit lines primarily denominated in Euros with a committed balance of $9 million and an uncommitted balance of $195 million as of March 31, 2019. Borrowings and repayments were not material in 2019 and 2018 and amounts outstanding under these credit lines were not material as of March 31, 2019 and 2018. Commercial Paper We maintain a commercial paper program to support our working capital requirements and for other general corporate purposes. Under the program, the Company can issue up to $3.5 billion in outstanding commercial paper notes. During 2019 and 2018, we borrowed $37,264 million and $20,542 million and repaid $37,264 million and $20,725 million under the program. At March 31, 2019 and 2018, there were no commercial paper notes outstanding. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Mar. 31, 2019 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities | Variable Interest Entities We evaluate our ownership, contractual and other interests in entities to determine if they are VIEs, if we have a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve management judgment and the use of estimates and assumptions based on available historical information, among other factors. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. Consolidated Variable Interest Entities We consolidate a VIE when we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE and, as a result, are considered the primary beneficiary of the VIE. We consolidate certain single-lessee leasing entities where we, as the lessee, have the majority risk of the leased assets due to our minimum lease payment obligations to these leasing entities. As a result of absorbing this risk, the leases provide us with the power to direct the operations of the leased properties and the obligation to absorb losses or the right to receive benefits of the entity. Consolidated VIEs do not have a material impact on our consolidated statements of operations and cash flows. Total assets and liabilities included in our consolidated balance sheets for these VIEs were $896 million and $64 million at March 31, 2019 and $819 million and $92 million at March 31, 2018. Investments in Unconsolidated Variable Interest Entities We are involved with VIEs which we do not consolidate because we do not have the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiary of the entities. Our relationships include equity method investments and lending, leasing, contractual or other relationships with the VIEs. Our most significant relationships are with oncology and other specialty practices. Under these practice arrangements, we generally own or lease all of the real estate and equipment used by the affiliated practices and manage the practices’ administrative functions. We also have relationships with certain pharmacies in Europe with whom we may provide financing, have equity ownership and/or a supply agreement whereby we supply the vast majority of the pharmacies’ purchases. Our maximum exposure to loss (regardless of probability) as a result of all unconsolidated VIEs was $1.1 billion at March 31, 2019 and 2018 , which primarily represents the value of intangible assets related to service agreements, equity investments and lease and loan receivables. This amount excludes the customer loan guarantees discussed in Financial Note 23, “Financial Guarantees and Warranties.” We believe there is no material loss exposure on these assets or from these relationships. |
Pension Benefits
Pension Benefits | 12 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Pension Benefits | Pension Benefits We maintain a number of qualified and nonqualified defined benefit pension plans and defined contribution plans for eligible employees. Defined Benefit Pension Plans Eligible U.S. employees who were employed by the Company as of December 31, 1995 are covered under the Company-sponsored defined benefit retirement plan. In 1997, the plan was amended to freeze all plan benefits as of December 31, 1996. Benefits for the defined benefit retirement plan are based primarily on age of employees at date of retirement, years of creditable service and the average of the highest 60 months of pay during the 15 years prior to the plan freeze date. We also have defined benefit pension plans for eligible employees outside of the U.S., as well as an unfunded nonqualified supplemental defined benefit plan for certain U.S. executives. On May 23, 2018, the Company’s Board of Directors approved the termination of our frozen U.S. defined benefit pension plan (“Plan”). The distribution of plan assets pursuant to the termination will not be made until the plan termination satisfies all regulatory requirements, which is expected to be completed by the second half of 2020. Plan participants will receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The plan termination is expected to result in pension settlement expense in 2020, which will be determined based on prevailing market conditions, the actual lump sum distributions and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate timing nor the final amount of such settlement charges. However, as of March 31, 2019 and 2018, this defined benefit pension plan had an accumulated comprehensive loss of approximately $121 million and $120 million . Our non-U.S. defined benefit pension plans cover eligible employees located predominantly in Norway, United Kingdom, Germany, and Canada. Benefits for these plans are based primarily on each employee’s final salary, with annual adjustments for inflation. The obligations in Norway are largely related to the state-regulated pension plan which is managed by the Norwegian Public Service Pension Fund (“SPK”). According to the terms of the SPK, the plan assets of state regulated plans in Norway must correspond very closely to the pension obligation calculated using the principles codified in Norwegian law. In the United Kingdom, we have subsidiaries that participate in a joint pension plan. The pension obligation in Germany is unfunded with the exception of the contractual trust arrangement used to fund pensions of McKesson Europe’s Management Board. Defined benefit plan assets and obligations are measured as of the Company’s fiscal year-end. The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the year $ — $ 3 $ 5 $ 15 $ 15 $ 15 Interest cost on projected benefit obligation 14 14 13 21 22 23 Expected return on assets (16 ) (19 ) (15 ) (23 ) (26 ) (26 ) Amortization of unrecognized actuarial loss and prior service costs 5 6 11 4 5 4 Curtailment/settlement loss (gain) 4 2 — 1 1 (2 ) Net periodic pension expense $ 7 $ 6 $ 14 $ 18 $ 17 $ 14 The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service period of active employees. Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2019 2018 Change in benefit obligations Benefit obligation at beginning of period (1) $ 485 $ 513 $ 1,035 $ 943 Service cost — 3 15 15 Interest cost 14 14 21 22 Actuarial loss (gain) 4 1 35 (15 ) Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Amendments — — — (2 ) Acquisitions — — 1 — Foreign exchange impact and other — — (80 ) 115 Benefit obligation at end of period (1) $ 439 $ 485 $ 990 $ 1,035 Change in plan assets Fair value of plan assets at beginning of period $ 335 $ 293 $ 687 $ 623 Actual return on plan assets 12 35 18 21 Employer and participant contributions 39 53 23 17 Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Acquisitions — — — — Foreign exchange impact and other — — (49 ) 69 Fair value of plan assets at end of period $ 322 $ 335 $ 642 $ 687 Funded status at end of period $ (117 ) $ (150 ) $ (348 ) $ (348 ) Amounts recognized on the balance sheet Assets $ 7 $ 10 $ 20 $ 19 Current liabilities (115 ) (39 ) (13 ) (7 ) Long-term liabilities (9 ) (121 ) (355 ) (360 ) Total $ (117 ) $ (150 ) $ (348 ) $ (348 ) (1) The benefit obligation is the projected benefit obligation. The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans, including accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Projected benefit obligation $ 439 $ 485 $ 990 $ 1,035 Accumulated benefit obligation 439 485 949 990 Fair value of plan assets 322 335 642 687 Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Net actuarial loss $ 133 $ 134 $ 186 $ 162 Prior service credit — — (4 ) (5 ) Total $ 133 $ 134 $ 182 $ 157 Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Net actuarial loss (gain) $ 8 $ (15 ) $ (17 ) $ 42 $ (11 ) $ 47 Prior service credit — — — — (2 ) — Amortization of: Net actuarial loss (9 ) (8 ) (11 ) (5 ) (6 ) (4 ) Prior service credit (cost) — — — — — 2 Foreign exchange impact and other — — — (12 ) 19 (10 ) Total recognized in other comprehensive loss (income) $ (1 ) $ (23 ) $ (28 ) $ 25 $ — $ 35 We expect to amortize $11 million of actuarial loss for the pension plans from stockholders’ equity to pension expense in 2020 . The comparable 2019 amount was $14 million of actuarial loss. In addition, we expect to recognize $132 million in actuarial losses for the pension plans to stockholders’ equity in 2020 as a result of $121 million from the termination of the U.S. defined benefit pension plan and $11 million from the settlement from the executive benefit retirement plan for a recently retired executive. Projected benefit obligations related to our unfunded U.S. plans were $124 million and $160 million at March 31, 2019 and 2018 . Pension obligations for our unfunded plans are based on the recommendations of independent actuaries. Projected benefit obligations relating to our unfunded non-U.S. plans were $293 million and $297 million at March 31, 2019 and 2018. Funding obligations for our non-U.S. plans vary based on the laws of each non-U.S. jurisdiction. Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows: $180 million , $64 million , $64 million , $62 million and $62 million for 2020 to 2024 and $327 million for 2025 through 2029 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our pension plans are $146 million for 2020 . Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2019 2018 2017 2019 2018 2017 Net periodic pension expense Discount rates 3.83 % 3.55 % 3.40 % 2.35 % 2.34 % 2.72 % Rate of increase in compensation N/A (1) 4.00 4.00 3.13 2.72 2.76 Expected long-term rate of return on plan assets 5.25 6.25 6.25 3.71 4.03 4.51 Benefit obligation Discount rates 3.65 % 3.69 % 3.39 % 2.13 % 2.35 % 2.35 % Rate of increase in compensation N/A (1) N/A (1) 4.00 3.18 2.59 3.18 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. Our defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of our plans. For March 31, 2019 , our U.S. defined benefit liabilities are valued using a weighted average discount rate of 3.65% , which represents a decrease of 4 basis points from our 2018 weighted-average discount rate of 3.69% . Our non-U.S. defined benefit pension plan liabilities are valued using a weighted-average discount rate of 2.13% , which represents a decrease of 22 basis points from our 2018 weighted average discount rate of 2.35% . Plan Assets Investment Strategy : The overall objective for U. S. pension plan assets has been to generate long-term investment returns consistent with capital preservation and prudent investment practices, with a diversification of asset types and investment strategies. Periodic adjustments were made to provide liquidity for benefit payments and to rebalance plan assets to their target allocations. In September 2018, a new investment allocation strategy was put in place to protect the funded status of the U.S. plan assets subsequent to Board approval of U.S. pension plan termination. The target allocation for U.S. plan assets at March 31, 2019 is 100% fixed income investments including cash and cash equivalents. The target allocations for U.S. plan assets at March 31, 2018 were 26% equity investments, 70% fixed income investments including cash and cash equivalents and 4% real estate. Equity investments include common stock, preferred stock, and equity commingled funds. Fixed income investments include corporate bonds, government securities, mortgage-backed securities, asset-backed securities, other directly held fixed income investments, and fixed income commingled funds. The real estate investments are in a commingled real estate fund. For both U.S. and non-U.S. plan assets, the investment strategies are subject to local regulations and the asset/liability profiles of the plans in each individual country. Plan assets of the non-U.S. plans are broadly invested in a manner appropriate to the nature and duration of the expected future retirement benefits payable under the plans. Plan assets are primarily invested in high-quality corporate and government bond funds and equity securities. Assets are properly diversified to avoid excessive reliance on any particular asset, issuer or group of undertakings so as to avoid accumulations of risk in the portfolio as a whole. We develop the expected long-term rate of return assumption based on the projected performance of the asset classes in which plan assets are invested. The target asset allocation was determined based on the liability and risk tolerance characteristics of the plans and at times may be adjusted to achieve overall investment objectives. Fair Value Measurements: The following tables represent our pension plan assets as of March 31, 2019 and 2018 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2019 March 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11 $ — $ — $ 11 $ 6 $ — $ — $ 6 Equity securities: Common and preferred stock — — — — — — — — Equity commingled funds — — — — 62 82 — 144 Fixed income securities: Government securities — 33 — 33 4 135 — 139 Corporate bonds — 273 — 273 8 18 — 26 Mortgage-backed securities — — — — — — — — Asset-backed securities and other — 5 — 5 — — — — Fixed income commingled funds — — — — 125 110 6 241 Other: Real estate funds — — — — 2 3 — 5 Other — — — — 21 — 3 24 Total $ 11 $ 311 $ — $ 322 $ 228 $ 348 $ 9 $ 585 Assets held at NAV practical expedient (1) Equity commingled funds — 8 Fixed income commingled funds — — Real estate funds — — Other — 49 Total plan assets $ 322 $ 642 U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. Cash and cash equivalents - Cash and cash equivalents include short-term investment funds that maintain daily liquidity and aim to have constant unit values of $1.00 . The funds invest in short-term fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and high credit quality. Directly held cash and cash equivalents are classified as Level 1 investments. Cash and cash equivalents include money market funds and other commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 investments. Common and preferred stock - This investment class consists of common and preferred shares issued by U.S. and non-U.S. corporations. Common shares are traded actively on exchanges and price quotes are readily available. Preferred shares may not be actively traded. Holdings of common shares are generally classified as Level 1 investments. Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets; these are classified as Level 1 or Level 2 investments. Fixed income securities - Government securities consist of bonds and debentures issued by central governments or federal agencies; corporate bonds consist of bonds and debentures issued by corporations; mortgage-backed securities consist of debt obligations secured by a mortgage or pool of mortgages; and asset-backed securities primarily consist of debt obligations secured by an asset or pool of assets other than mortgages. Inputs to the valuation methodology include quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Multiple prices and price types are obtained from pricing vendors whenever possible, enabling cross-provider price validations. Fixed income securities are generally classified as Level 1 or Level 2 investments. Fixed income commingled funds - Some fixed income investments are held in exchange traded or commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1, 2 or 3 investments. Real estate funds - The value of the real estate funds is reported by the fund manager and is based on a valuation of the underlying properties. Inputs used in the valuation include items such as cost, discounted future cash flows, independent appraisals and market based comparable data. The real estate funds are classified as Level 1, 2, or 3 investments. Other - At March 31, 2019 and 2018 , this includes $35 million and $38 million of plan asset value relating to the SPK. In principle, the SPK is organized as a pay-as-you-go system guaranteed by the Norwegian government as it holds no Company-owned assets to back the pension liabilities. The Company pays a pension premium used to fund the plan, which is paid directly to the Norwegian government who establishes an account for each participating employer to keep track of the financial status of the plan, including managing the contributions and the payments. Further, the investment return credited to this account is determined annually by the SPK based on the performance of long-term government bonds. The activity attributable to Level 3 plan assets was insignificant in the years ended March 31, 2019 and 2018. Multiemployer Plans The Company contributes to a number of multiemployer pension plans under the terms of collective-bargaining agreements that cover union-represented employees in the U.S. In 2017, we also contributed to the Pensjonsordningen for Apoteketaten (“POA”), a mandatory multiemployer pension scheme for our pharmacy employees in Norway, managed by the association of Norwegian Pharmacies. The risks of participating in these multiemployer plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Actions taken by other participating employers may lead to adverse changes in the financial condition of a multiemployer benefit plan and our withdrawal liability and contributions may increase. Contributions and amounts accrued for U.S. Plans were not material for the years ended March 31, 2019, 2018, and 2017. Contributions to the POA for non-U.S. Plans exceeding 5% of total plan contributions were $27 million , $16 million and $18 million in 2019, 2018 and 2017. Based on actuarial calculations, we estimate the funded status for our non-U.S. Plans to be approximately 75% as of March 31, 2019 . No amounts were accrued for liability associated with the POA as we have no intention to withdraw from the plan. Defined Contribution Plans We have a contributory retirement savings plan (“RSP”) for U.S. eligible employees. Eligible employees may contribute to the RSP up to 75% of their eligible compensation on a pre-tax or post-tax basis not to exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay contributed and 50% for the next 2% of pay contributed. The Company also may make an additional annual matching contribution for each plan year to enable participants to receive a full match based on their annual contribution. The Company also contributed to non-U.S. plans that are available in certain countries. Contribution expenses for the RSP and non-U.S. plans were $92 million , $82 million and $98 million for the years ended March 31, 2019 , 2018 , and 2017 . Postretirement Benefits We maintain a number of postretirement benefits, primarily consisting of healthcare and life insurance (“welfare”) benefits, for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. We also provide postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal year-end. The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 2 Amortization of unrecognized actuarial gain and prior service credit (5 ) (6 ) (1 ) Net periodic postretirement (credit) expense $ (2 ) $ (3 ) $ 2 Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2019 2018 Benefit obligation at beginning of period $ 78 $ 82 Service cost 1 1 Interest cost 2 2 Actuarial gain (3 ) (1 ) Benefit payments (5 ) (6 ) Benefit obligation at end of period $ 73 $ 78 The components of the amount recognized in accumulated other comprehensive income for the Company’s other postretirement benefits at March 31, 2019 and 2018 were net actuarial gains of $7 million and $8 million and net prior service credits of $9 million and $11 million . Other changes in benefit obligations recognized in other comprehensive income were net actuarial gains of $1 million and $3 million in 2019 and 2018 and net prior service credits of $2 million and $3 million in 2019 and 2018 . We estimate that the amortization of the actuarial income from stockholders’ equity to other postretirement gain in 2020 will be $5 million . Comparable 2019 amount was a benefit of $5 million . Other postretirement benefits are funded as claims are paid. Expected benefit payments for our postretirement welfare benefit plans are as follows: $7 million , $7 million , $7 million , $7 million and $6 million for 2020 to 2024 and $26 million cumulatively for 2025 through 2029 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our postretirement welfare benefit plans are $7 million for 2020 . Weighted-average discount rates used to estimate postretirement welfare benefit expenses were 3.79% , 3.83% and 3.68% for 2019 , 2018 and 2017 . Weighted-average discount rates for the actuarial present value of benefit obligations were 3.92% , 3.92% and 3.82% for 2019 , 2018 and 2017 . Actuarial gain or loss for the postretirement welfare benefit plan is amortized to income or expense over a three -year period. The assumed healthcare cost trends used in measuring the accumulated postretirement benefit obligation were 3.00% for 2019 and 2018 . For 2019 , 2018 and 2017 , a one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not have a material impact on the postretirement benefit obligations. Pursuant to various collective bargaining agreements, we contribute to multiemployer health and welfare plans that cover union-represented employees. Our liability is limited to the contractual dollar obligations set forth by the collective bargaining agreements. Contributions to the plans and amounts accrued were not material for the years ended March 31, 2019 , 2018 , and 2017 . |
Postretirement Benefits
Postretirement Benefits | 12 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Postretirement Benefits | Pension Benefits We maintain a number of qualified and nonqualified defined benefit pension plans and defined contribution plans for eligible employees. Defined Benefit Pension Plans Eligible U.S. employees who were employed by the Company as of December 31, 1995 are covered under the Company-sponsored defined benefit retirement plan. In 1997, the plan was amended to freeze all plan benefits as of December 31, 1996. Benefits for the defined benefit retirement plan are based primarily on age of employees at date of retirement, years of creditable service and the average of the highest 60 months of pay during the 15 years prior to the plan freeze date. We also have defined benefit pension plans for eligible employees outside of the U.S., as well as an unfunded nonqualified supplemental defined benefit plan for certain U.S. executives. On May 23, 2018, the Company’s Board of Directors approved the termination of our frozen U.S. defined benefit pension plan (“Plan”). The distribution of plan assets pursuant to the termination will not be made until the plan termination satisfies all regulatory requirements, which is expected to be completed by the second half of 2020. Plan participants will receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The plan termination is expected to result in pension settlement expense in 2020, which will be determined based on prevailing market conditions, the actual lump sum distributions and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate timing nor the final amount of such settlement charges. However, as of March 31, 2019 and 2018, this defined benefit pension plan had an accumulated comprehensive loss of approximately $121 million and $120 million . Our non-U.S. defined benefit pension plans cover eligible employees located predominantly in Norway, United Kingdom, Germany, and Canada. Benefits for these plans are based primarily on each employee’s final salary, with annual adjustments for inflation. The obligations in Norway are largely related to the state-regulated pension plan which is managed by the Norwegian Public Service Pension Fund (“SPK”). According to the terms of the SPK, the plan assets of state regulated plans in Norway must correspond very closely to the pension obligation calculated using the principles codified in Norwegian law. In the United Kingdom, we have subsidiaries that participate in a joint pension plan. The pension obligation in Germany is unfunded with the exception of the contractual trust arrangement used to fund pensions of McKesson Europe’s Management Board. Defined benefit plan assets and obligations are measured as of the Company’s fiscal year-end. The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the year $ — $ 3 $ 5 $ 15 $ 15 $ 15 Interest cost on projected benefit obligation 14 14 13 21 22 23 Expected return on assets (16 ) (19 ) (15 ) (23 ) (26 ) (26 ) Amortization of unrecognized actuarial loss and prior service costs 5 6 11 4 5 4 Curtailment/settlement loss (gain) 4 2 — 1 1 (2 ) Net periodic pension expense $ 7 $ 6 $ 14 $ 18 $ 17 $ 14 The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service period of active employees. Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2019 2018 Change in benefit obligations Benefit obligation at beginning of period (1) $ 485 $ 513 $ 1,035 $ 943 Service cost — 3 15 15 Interest cost 14 14 21 22 Actuarial loss (gain) 4 1 35 (15 ) Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Amendments — — — (2 ) Acquisitions — — 1 — Foreign exchange impact and other — — (80 ) 115 Benefit obligation at end of period (1) $ 439 $ 485 $ 990 $ 1,035 Change in plan assets Fair value of plan assets at beginning of period $ 335 $ 293 $ 687 $ 623 Actual return on plan assets 12 35 18 21 Employer and participant contributions 39 53 23 17 Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Acquisitions — — — — Foreign exchange impact and other — — (49 ) 69 Fair value of plan assets at end of period $ 322 $ 335 $ 642 $ 687 Funded status at end of period $ (117 ) $ (150 ) $ (348 ) $ (348 ) Amounts recognized on the balance sheet Assets $ 7 $ 10 $ 20 $ 19 Current liabilities (115 ) (39 ) (13 ) (7 ) Long-term liabilities (9 ) (121 ) (355 ) (360 ) Total $ (117 ) $ (150 ) $ (348 ) $ (348 ) (1) The benefit obligation is the projected benefit obligation. The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans, including accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Projected benefit obligation $ 439 $ 485 $ 990 $ 1,035 Accumulated benefit obligation 439 485 949 990 Fair value of plan assets 322 335 642 687 Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Net actuarial loss $ 133 $ 134 $ 186 $ 162 Prior service credit — — (4 ) (5 ) Total $ 133 $ 134 $ 182 $ 157 Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Net actuarial loss (gain) $ 8 $ (15 ) $ (17 ) $ 42 $ (11 ) $ 47 Prior service credit — — — — (2 ) — Amortization of: Net actuarial loss (9 ) (8 ) (11 ) (5 ) (6 ) (4 ) Prior service credit (cost) — — — — — 2 Foreign exchange impact and other — — — (12 ) 19 (10 ) Total recognized in other comprehensive loss (income) $ (1 ) $ (23 ) $ (28 ) $ 25 $ — $ 35 We expect to amortize $11 million of actuarial loss for the pension plans from stockholders’ equity to pension expense in 2020 . The comparable 2019 amount was $14 million of actuarial loss. In addition, we expect to recognize $132 million in actuarial losses for the pension plans to stockholders’ equity in 2020 as a result of $121 million from the termination of the U.S. defined benefit pension plan and $11 million from the settlement from the executive benefit retirement plan for a recently retired executive. Projected benefit obligations related to our unfunded U.S. plans were $124 million and $160 million at March 31, 2019 and 2018 . Pension obligations for our unfunded plans are based on the recommendations of independent actuaries. Projected benefit obligations relating to our unfunded non-U.S. plans were $293 million and $297 million at March 31, 2019 and 2018. Funding obligations for our non-U.S. plans vary based on the laws of each non-U.S. jurisdiction. Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows: $180 million , $64 million , $64 million , $62 million and $62 million for 2020 to 2024 and $327 million for 2025 through 2029 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our pension plans are $146 million for 2020 . Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2019 2018 2017 2019 2018 2017 Net periodic pension expense Discount rates 3.83 % 3.55 % 3.40 % 2.35 % 2.34 % 2.72 % Rate of increase in compensation N/A (1) 4.00 4.00 3.13 2.72 2.76 Expected long-term rate of return on plan assets 5.25 6.25 6.25 3.71 4.03 4.51 Benefit obligation Discount rates 3.65 % 3.69 % 3.39 % 2.13 % 2.35 % 2.35 % Rate of increase in compensation N/A (1) N/A (1) 4.00 3.18 2.59 3.18 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. Our defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of our plans. For March 31, 2019 , our U.S. defined benefit liabilities are valued using a weighted average discount rate of 3.65% , which represents a decrease of 4 basis points from our 2018 weighted-average discount rate of 3.69% . Our non-U.S. defined benefit pension plan liabilities are valued using a weighted-average discount rate of 2.13% , which represents a decrease of 22 basis points from our 2018 weighted average discount rate of 2.35% . Plan Assets Investment Strategy : The overall objective for U. S. pension plan assets has been to generate long-term investment returns consistent with capital preservation and prudent investment practices, with a diversification of asset types and investment strategies. Periodic adjustments were made to provide liquidity for benefit payments and to rebalance plan assets to their target allocations. In September 2018, a new investment allocation strategy was put in place to protect the funded status of the U.S. plan assets subsequent to Board approval of U.S. pension plan termination. The target allocation for U.S. plan assets at March 31, 2019 is 100% fixed income investments including cash and cash equivalents. The target allocations for U.S. plan assets at March 31, 2018 were 26% equity investments, 70% fixed income investments including cash and cash equivalents and 4% real estate. Equity investments include common stock, preferred stock, and equity commingled funds. Fixed income investments include corporate bonds, government securities, mortgage-backed securities, asset-backed securities, other directly held fixed income investments, and fixed income commingled funds. The real estate investments are in a commingled real estate fund. For both U.S. and non-U.S. plan assets, the investment strategies are subject to local regulations and the asset/liability profiles of the plans in each individual country. Plan assets of the non-U.S. plans are broadly invested in a manner appropriate to the nature and duration of the expected future retirement benefits payable under the plans. Plan assets are primarily invested in high-quality corporate and government bond funds and equity securities. Assets are properly diversified to avoid excessive reliance on any particular asset, issuer or group of undertakings so as to avoid accumulations of risk in the portfolio as a whole. We develop the expected long-term rate of return assumption based on the projected performance of the asset classes in which plan assets are invested. The target asset allocation was determined based on the liability and risk tolerance characteristics of the plans and at times may be adjusted to achieve overall investment objectives. Fair Value Measurements: The following tables represent our pension plan assets as of March 31, 2019 and 2018 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2019 March 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11 $ — $ — $ 11 $ 6 $ — $ — $ 6 Equity securities: Common and preferred stock — — — — — — — — Equity commingled funds — — — — 62 82 — 144 Fixed income securities: Government securities — 33 — 33 4 135 — 139 Corporate bonds — 273 — 273 8 18 — 26 Mortgage-backed securities — — — — — — — — Asset-backed securities and other — 5 — 5 — — — — Fixed income commingled funds — — — — 125 110 6 241 Other: Real estate funds — — — — 2 3 — 5 Other — — — — 21 — 3 24 Total $ 11 $ 311 $ — $ 322 $ 228 $ 348 $ 9 $ 585 Assets held at NAV practical expedient (1) Equity commingled funds — 8 Fixed income commingled funds — — Real estate funds — — Other — 49 Total plan assets $ 322 $ 642 U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. Cash and cash equivalents - Cash and cash equivalents include short-term investment funds that maintain daily liquidity and aim to have constant unit values of $1.00 . The funds invest in short-term fixed income securities and other securities with debt-like characteristics emphasizing short-term maturities and high credit quality. Directly held cash and cash equivalents are classified as Level 1 investments. Cash and cash equivalents include money market funds and other commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1 investments. Common and preferred stock - This investment class consists of common and preferred shares issued by U.S. and non-U.S. corporations. Common shares are traded actively on exchanges and price quotes are readily available. Preferred shares may not be actively traded. Holdings of common shares are generally classified as Level 1 investments. Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets; these are classified as Level 1 or Level 2 investments. Fixed income securities - Government securities consist of bonds and debentures issued by central governments or federal agencies; corporate bonds consist of bonds and debentures issued by corporations; mortgage-backed securities consist of debt obligations secured by a mortgage or pool of mortgages; and asset-backed securities primarily consist of debt obligations secured by an asset or pool of assets other than mortgages. Inputs to the valuation methodology include quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Multiple prices and price types are obtained from pricing vendors whenever possible, enabling cross-provider price validations. Fixed income securities are generally classified as Level 1 or Level 2 investments. Fixed income commingled funds - Some fixed income investments are held in exchange traded or commingled funds, which have daily net asset values derived from the underlying securities; these are classified as Level 1, 2 or 3 investments. Real estate funds - The value of the real estate funds is reported by the fund manager and is based on a valuation of the underlying properties. Inputs used in the valuation include items such as cost, discounted future cash flows, independent appraisals and market based comparable data. The real estate funds are classified as Level 1, 2, or 3 investments. Other - At March 31, 2019 and 2018 , this includes $35 million and $38 million of plan asset value relating to the SPK. In principle, the SPK is organized as a pay-as-you-go system guaranteed by the Norwegian government as it holds no Company-owned assets to back the pension liabilities. The Company pays a pension premium used to fund the plan, which is paid directly to the Norwegian government who establishes an account for each participating employer to keep track of the financial status of the plan, including managing the contributions and the payments. Further, the investment return credited to this account is determined annually by the SPK based on the performance of long-term government bonds. The activity attributable to Level 3 plan assets was insignificant in the years ended March 31, 2019 and 2018. Multiemployer Plans The Company contributes to a number of multiemployer pension plans under the terms of collective-bargaining agreements that cover union-represented employees in the U.S. In 2017, we also contributed to the Pensjonsordningen for Apoteketaten (“POA”), a mandatory multiemployer pension scheme for our pharmacy employees in Norway, managed by the association of Norwegian Pharmacies. The risks of participating in these multiemployer plans are different from single-employer pension plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and (iii) if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Actions taken by other participating employers may lead to adverse changes in the financial condition of a multiemployer benefit plan and our withdrawal liability and contributions may increase. Contributions and amounts accrued for U.S. Plans were not material for the years ended March 31, 2019, 2018, and 2017. Contributions to the POA for non-U.S. Plans exceeding 5% of total plan contributions were $27 million , $16 million and $18 million in 2019, 2018 and 2017. Based on actuarial calculations, we estimate the funded status for our non-U.S. Plans to be approximately 75% as of March 31, 2019 . No amounts were accrued for liability associated with the POA as we have no intention to withdraw from the plan. Defined Contribution Plans We have a contributory retirement savings plan (“RSP”) for U.S. eligible employees. Eligible employees may contribute to the RSP up to 75% of their eligible compensation on a pre-tax or post-tax basis not to exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay contributed and 50% for the next 2% of pay contributed. The Company also may make an additional annual matching contribution for each plan year to enable participants to receive a full match based on their annual contribution. The Company also contributed to non-U.S. plans that are available in certain countries. Contribution expenses for the RSP and non-U.S. plans were $92 million , $82 million and $98 million for the years ended March 31, 2019 , 2018 , and 2017 . Postretirement Benefits We maintain a number of postretirement benefits, primarily consisting of healthcare and life insurance (“welfare”) benefits, for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. We also provide postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal year-end. The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 2 Amortization of unrecognized actuarial gain and prior service credit (5 ) (6 ) (1 ) Net periodic postretirement (credit) expense $ (2 ) $ (3 ) $ 2 Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2019 2018 Benefit obligation at beginning of period $ 78 $ 82 Service cost 1 1 Interest cost 2 2 Actuarial gain (3 ) (1 ) Benefit payments (5 ) (6 ) Benefit obligation at end of period $ 73 $ 78 The components of the amount recognized in accumulated other comprehensive income for the Company’s other postretirement benefits at March 31, 2019 and 2018 were net actuarial gains of $7 million and $8 million and net prior service credits of $9 million and $11 million . Other changes in benefit obligations recognized in other comprehensive income were net actuarial gains of $1 million and $3 million in 2019 and 2018 and net prior service credits of $2 million and $3 million in 2019 and 2018 . We estimate that the amortization of the actuarial income from stockholders’ equity to other postretirement gain in 2020 will be $5 million . Comparable 2019 amount was a benefit of $5 million . Other postretirement benefits are funded as claims are paid. Expected benefit payments for our postretirement welfare benefit plans are as follows: $7 million , $7 million , $7 million , $7 million and $6 million for 2020 to 2024 and $26 million cumulatively for 2025 through 2029 . Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected contributions to be made for our postretirement welfare benefit plans are $7 million for 2020 . Weighted-average discount rates used to estimate postretirement welfare benefit expenses were 3.79% , 3.83% and 3.68% for 2019 , 2018 and 2017 . Weighted-average discount rates for the actuarial present value of benefit obligations were 3.92% , 3.92% and 3.82% for 2019 , 2018 and 2017 . Actuarial gain or loss for the postretirement welfare benefit plan is amortized to income or expense over a three -year period. The assumed healthcare cost trends used in measuring the accumulated postretirement benefit obligation were 3.00% for 2019 and 2018 . For 2019 , 2018 and 2017 , a one-percentage-point increase or decrease in the assumed healthcare cost trend rate would not have a material impact on the postretirement benefit obligations. Pursuant to various collective bargaining agreements, we contribute to multiemployer health and welfare plans that cover union-represented employees. Our liability is limited to the contractual dollar obligations set forth by the collective bargaining agreements. Contributions to the plans and amounts accrued were not material for the years ended March 31, 2019 , 2018 , and 2017 . |
Hedging Activities
Hedging Activities | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities | Hedging Activities In the normal course of business, we are exposed to interest rate and foreign currency exchange rate fluctuations. At times, we limit these risks through the use of derivatives such as cross-currency swaps, foreign currency forward contracts and interest rate swaps. In accordance with our policy, derivatives are only used for hedging purposes. We do not use derivatives for trading or speculative purposes. Foreign currency exchange risk We conduct our business worldwide in U.S. dollars and the functional currencies of our foreign subsidiaries, including Euro, British pound sterling and Canadian dollars. Changes in foreign currency exchange rates could have a material adverse impact on our financial results that are reported in U.S. dollars. We are also exposed to foreign currency exchange rate risk related to our foreign subsidiaries, including intercompany loans denominated in non-functional currencies. We have certain foreign currency exchange rate risk programs that use foreign currency forward contracts and cross-currency swaps. These forward contracts and cross-currency swaps are generally used to offset the potential income statement effects from intercompany loans denominated in non-functional currencies. These programs reduce but do not entirely eliminate foreign currency exchange rate risk. At March 31, 2019 and 2018, we had €1.95 billion Euro-denominated notes and £450 million British pound sterling-denominated notes designated as non-derivative net investment hedges which hedge portions of our net investments in non-U.S. subsidiaries against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. For all notes that are designated as net investment hedges and meet effectiveness requirements, the changes in carrying value of the notes attributable to the change in spot rates are recorded in foreign currency translation adjustments within Accumulated Other Comprehensive Income in the consolidated statement of stockholders’ equity where they offset foreign currency translation gains and losses recorded on our net investments. To the extent foreign currency denominated notes designated as net investment hedges are ineffective, changes in carrying value attributable to the change in spot rates are recorded in earnings. Gains of $259 million in 2019 and losses of $268 million and $13 million in 2018 and 2017 were recorded in other comprehensive income for net investment hedges. There was no ineffectiveness in our net investment hedges for the years ended March 31, 2019 and 2018. Derivatives Designated as Hedges In March 2019, we entered into cross-currency swap contracts with total gross notional amounts of $499 million Canadian dollars, which are designated as net investment hedges. In March 2018, we entered into cross-currency swap contracts with total gross notional amounts of £432 million British pound sterling, which are designated as net investment hedges. In November 2018, we entered into cross-currency swap contracts with total gross notional amounts of £500 million British pound sterling and $1 billion Canadian dollars, which are designated as net investment hedges. Under the terms of the cross-currency swap contracts, we agree with third parties to exchange fixed interest payments in one currency for fixed interest payments in another currency at specified intervals and to exchange principal in one currency for principal in another currency, calculated by reference to agreed-upon notional amounts. These swaps are utilized to hedge portions of our net investments denominated in British pound sterling and Canadian dollars against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar. The changes in the fair value of these derivatives attributable to the changes in spot currency exchange rates and differences between spot and forward interest rates are recorded in accumulated other comprehensive income in the consolidated statement of stockholders’ equity where they offset foreign currency translation gains and losses recorded on our net investments denominated in British pound sterling and Canadian dollars. To the extent foreign currency denominated notes designated as hedges are ineffective, changes in carrying value attributable to the change in spot rates are recorded in earnings. Gains of $53 million in 2019 and losses of $7 million in 2018 were recorded in other comprehensive income for net investment hedges. There was no ineffectiveness in our hedges for the years ended March 31, 2019 and 2018. These cross-currency swaps will mature between November 2020 and November 2024. At March 31, 2019 and 2018 , we had forward contracts to hedge the U.S. dollar against cash flows denominated in Canadian dollars with total gross notional amounts of $81 million and $162 million , which were designated as cash flow hedges. The remaining contract will mature in March 2020 . From time to time, we also enter into cross-currency swaps to hedge intercompany loans denominated in non-functional currencies. For our cross-currency swap transactions, we agree with third parties to exchange fixed interest payments in one currency for fixed interest payments in another currency at specified intervals and to exchange principal in one currency for principal in another currency, calculated by reference to agreed-upon notional amounts. These cross-currency swaps are designed to reduce the income statement effects arising from fluctuations in foreign exchange rates and have been designated as cash flow hedges. At March 31, 2019 and March 31, 2018, we had cross-currency swaps with total gross notional amounts of approximately $2,908 million and $3,412 million , which are designated as cash flow hedges. These swaps will mature between April 2020 and January 2024. For forward contracts and cross-currency swaps that are designated as cash flow hedges, the effective portion of changes in the fair value of the hedges is recorded in Accumulated Other Comprehensive Income and reclassified into earnings in the same period in which the hedged transaction affects earnings. Changes in fair values representing hedge ineffectiveness are recognized in current earnings. Gains from cash flow hedges recorded in other comprehensive income were $28 million in 2019 and losses of $30 million and $19 million in 2018 and 2017. Gains or losses reclassified from Accumulated Other Comprehensive Income and recorded in operating expenses in the consolidated statements of operations were not material in 2019, 2018 and 2017. There was no ineffectiveness in our cash flow hedges for the years ended March 31, 2019, 2018 and 2017. Derivatives Not Designated as Hedges Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change in value included in earnings. We have a number of forward contracts to hedge the Euro against cash flows denominated primarily in British pound sterling and other European currencies. At March 31, 2019 and 2018 , the total gross notional amounts of these contracts were $28 million and $29 million . These contracts will mature through October 2020 and none of these contracts were designated for hedge accounting. Changes in the fair values for contracts not designated as hedges are recorded directly into earnings within operating expenses and were not material in 2019, 2018 and 2017. Gains or losses from these contracts are largely offset by changes in the value of the underlying intercompany foreign currency loans. Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet Caption March 31, 2019 March 31, 2018 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ 17 $ — $ 81 $ 15 $ — $ 81 Foreign exchange contracts (non-current) Other Noncurrent Assets — — — 14 — 81 Cross-currency swaps (current) Prepaid expenses and other/Other Accrued Liabilities — 18 — — 7 504 Cross-currency swaps (non-current) Other Noncurrent Assets/Liabilities 91 33 5,283 — 222 3,508 Total $ 108 $ 51 $ 29 $ 229 Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ 14 $ — $ — $ 13 Foreign exchange contracts (current) Other accrued liabilities — — 14 — — 16 Total $ — $ — $ — $ — Refer to Financial Note 21, “Fair Value Measurements,” for more information on these recurring fair value measurements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a three-level hierarchy that prioritizes the inputs used in determining fair value by their reliability and preferred use, as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 - Valuations based on quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Valuations based on inputs that are both significant to the fair value measurement and unobservable. At March 31, 2019 and 2018 , the carrying amounts of cash, certain cash equivalents, restricted cash, marketable securities, receivables, drafts and accounts payable, short-term borrowings and other current liabilities approximated their estimated fair values because of the short maturity of these financial instruments. The fair value of our commercial paper was determined using quoted prices in active markets for identical liabilities, which are considered to be Level 1 inputs. Our long-term debt is carried at amortized cost. The carrying amounts and estimated fair values of these liabilities were $7.6 billion and $7.9 billion at March 31, 2019 and $7.9 billion and $8.1 billion at March 31, 2018 . The estimated fair value of our long-term debt was determined using quoted market prices in a less active market and other observable inputs from available market information, which are considered to be Level 2 inputs, and may not be representative of actual values that could have been realized or that will be realized in the future. Assets Measured at Fair Value on a Recurring Basis Cash and cash equivalents included investments in money market funds of $1,205 million and $799 million at March 31, 2019 and 2018. The fair value of the money market funds was determined by using quoted prices for identical investments in active markets, which are considered to be Level 1 inputs under the fair value measurements and disclosure guidance. The carrying value of all other cash equivalents approximates their fair value due to their relatively short-term nature. Fair values for our marketable securities were not material at March 31, 2019 and 2018 . Fair values of our forward foreign currency contracts were determined using observable inputs from available market information. Fair values of our cross-currency swaps were determined using quoted foreign currency exchange rates and other observable inputs from available market information. These inputs are considered Level 2 under the fair value measurements and disclosure guidance, and may not be representative of actual values that could have been realized or that will be realized in the future. Refer to Financial Note 20, “Hedging Activities,” for fair value and other information on our foreign currency derivatives including forward foreign currency contracts and cross-currency swaps. There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended March 31, 2019 and 2018 . Assets Measured at Fair Value on a Nonrecurring Basis At March 31, 2019, assets measured at fair value on a nonrecurring basis primarily consisted of goodwill and long-lived assets for our European Pharmaceutical Solutions segment. At March 31, 2018, assets measured at fair value on a nonrecurring basis consisted of goodwill, intangibles and other long-lived assets for our European Pharmaceutical Solutions segment and our Rexall Health business in Other. Goodwill Fair value assessments of the reporting unit and the reporting unit's net assets, which are performed for goodwill impairment tests, are considered a Level 3 measurement due to the significance of unobservable inputs developed using company specific information. We considered a market approach as well as an income approach using the DCF model to determine the fair value of the reporting unit. Refer to Financial Note 2, “Goodwill Impairment Charges,” for more information regarding goodwill impairment charges recorded for certain reporting units during 2019, 2018 and 2017. Long-lived Assets We utilized multiple approaches including the DCF model and market approaches for estimating the fair value of intangible assets. The future cash flows used in the analysis are based on internal cash flow projections based on our long-range plans and include significant assumptions by management. Accordingly, the fair value assessment of the long-lived assets is considered a Level 3 fair value measurement. We measure certain intangible and other long-lived assets at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. An impairment charge is recorded when the cost of the asset exceeds its fair value and this condition is determined to be other-than-temporary. As discussed in Financial Note 3, “Restructuring and Asset Impairment Charges,” we recorded non-cash pre-tax charges of $245 million ( $207 million after-tax) during 2019 and $479 million ( $443 million after-tax) during 2018 to impair the carrying values of certain long-lived assets including intangible assets and capitalized software assets. Liabilities Measured at Fair Value on a Nonrecurring Basis At March 31, 2018, we remeasured the contingent consideration liability related to our acquisition of CMM at fair value on a nonrecurring basis. Refer to Financial Note 4, “Business Combinations,” for more information on the fair value of the contingent consideration liability. There were no liabilities measured at fair value on a nonrecurring basis at March 31, 2019. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Lease Obligations | Lease Obligations We lease facilities and equipment almost solely under operating leases. At March 31, 2019 , future minimum lease payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year for years ending March 31 are: (In millions) Noncancelable Operating Leases 2020 $ 454 2021 397 2022 343 2023 290 2024 236 Thereafter 936 Total minimum lease payments (1) (2) $ 2,656 (1) Amount includes future minimum lease payments for the sale-leaseback transaction of $49 million . (2) Total minimum lease payments have not been reduced by minimum sublease income of $133 million due under future noncancelable subleases. Rent expense under operating leases was $576 million , $568 million and $474 million in 2019 , 2018 and 2017 . We recognize rent expense on a straight-line basis over the term of the lease, taking into account, when applicable, lessor incentives for tenant improvements, periods where no rent payment is required and escalations in rent payments over the term of the lease. Deferred rent is recognized for the difference between the rent expense recognized on a straight-line basis and the payments made per the terms of the lease. Remaining terms for facilities leases generally range from one to fifteen years, while remaining terms for equipment leases range from one to six years. Most real property leases contain renewal options (generally for five -year increments) and provisions requiring us to pay property taxes and operating expenses in excess of base period amounts. Sublease rental income was not material for 2019 , 2018 and 2017 . |
Financial Guarantees and Warran
Financial Guarantees and Warranties | 12 Months Ended |
Mar. 31, 2019 | |
Financial Guarantees And Warranties [Abstract] | |
Financial Guarantees And Warranties | Financial Guarantees and Warranties Financial Guarantees We have agreements with certain of our customers’ financial institutions, mainly in Canada and Europe, under which we have guaranteed the repurchase of our customers’ inventory or our customers’ debt in the event these customers are unable to meet their obligations to those financial institutions. For our inventory repurchase agreements, among other requirements, inventories must be in resalable condition and any repurchase would be at a discount. The inventory repurchase agreements mostly relate to certain Canadian customers and generally range from one to two years. Customers’ debt guarantees range from one to ten years and are primarily provided to facilitate financing for certain customers. The majority of our customers’ debt guarantees are secured by certain assets of the customer. At March 31, 2019 , the maximum amounts of inventory repurchase guarantees and customers’ debt guarantees were $251 million and $115 million , of which we have not accrued any material amounts. The expirations of these financial guarantees are as follows: $195 million , $22 million , $9 million , $15 million and $35 million from 2020 through 2024 and $90 million thereafter. At March 31, 2019 , our banks and insurance companies have issued $165 million of standby letters of credit and surety bonds, which were issued on our behalf mostly related to our customer contracts and in order to meet the security requirements for statutory licenses and permits, court and fiduciary obligations and our workers’ compensation and automotive liability programs. Our software license agreements generally include certain provisions for indemnifying customers against liabilities if our software products infringe a third party’s intellectual property rights. To date, we have not incurred any material costs as a result of such indemnification agreements and have not accrued any liabilities related to such obligations. In conjunction with certain transactions, primarily divestitures, we may provide routine indemnification agreements (such as retention of previously existing environmental, tax and employee liabilities) whose terms vary in duration and often are not explicitly defined. Where appropriate, obligations for such indemnifications are recorded as liabilities. Because the amounts of these indemnification obligations often are not explicitly stated, the overall maximum amount of these commitments cannot be reasonably estimated. Other than obligations recorded as liabilities at the time of divestiture, we have historically not made material payments as a result of these indemnification provisions. Warranties In the normal course of business, we provide certain warranties and indemnification protection for our products and services. For example, we provide warranties that the pharmaceutical and medical-surgical products we distribute are in compliance with the U.S. Food, Drug and Cosmetic Act and other applicable laws and regulations. We have received the same warranties from our suppliers, which customarily are the manufacturers of the products. In addition, we have indemnity obligations to our customers for these products, which have also been provided to us from our suppliers, either through express agreement or by operation of law. We also provide warranties regarding the performance of software and products we sell. Our liability under these warranties is to bring the product into compliance with previously agreed upon specifications. For software products, this may result in additional project costs, which are reflected in our estimates used for the percentage-of-completion method of accounting for software installation services within these contracts. In addition, most of our customers who purchase our software and automation products also purchase annual maintenance agreements. Revenues from these maintenance agreements are recognized on a straight-line basis over the contract period and the cost of servicing product warranties is charged to expense when claims become estimable. Accrued warranty costs were not material to the consolidated balance sheets. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities In addition to commitments and obligations incurred in our business, we are subject to a variety of claims incidental to the normal conduct of our business, including claims from customers and vendors, pending and potential legal actions for damages, governmental investigations, and other matters. The Company is vigorously defending itself against claims in the legal proceedings described below. If we are unsuccessful in defending, or if we determine to settle, any of these matters, we may be required to pay substantial sums, be subject to injunction or be forced to change how we operate our business, which could have a material adverse impact on our financial position or results of operations. Unless otherwise stated, we are unable to reasonably estimate the loss or a range of possible loss for the matters described below. Often, it is not reasonably possible for us determine that a loss is probable for a claim, or to reasonably estimate the amount of loss or a range of loss, because of the limited information available and the potential effects of future events and decisions by third parties, such as courts and regulators, that will determine the ultimate resolution of the claim. Many of the matters described below are at preliminary stages, raise novel theories of liability or seek an indeterminate amount of damages. It is not uncommon for claims to be resolved over many years. We review loss contingencies at least quarterly, to determine whether the loss probability has changed and whether we can make a reasonable estimate of the possible loss or range of loss. When we determine that a loss from a claim is probable and reasonably estimable, we record a liability in the amount of our estimate for the ultimate loss. We also provide disclosure when it is reasonably possible that a loss may be incurred or when it is reasonably possible that the amount of a loss will exceed our recorded liability. I. Litigation and Claims Involving Distribution of Controlled Substances The Company is a defendant in many cases asserting claims related to distribution of controlled substances to pharmacies. We often are named as defendants along with other pharmaceutical wholesale distributors, pharmaceutical manufacturers and retail pharmacy chains. The plaintiffs in these actions include state attorneys general, county and municipal governments, hospitals, Indian tribes, pension funds, third-party payors and individuals. These actions have been filed in state and federal courts throughout the United States, and in Puerto Rico and Canada. They contain a variety of causes of action, including negligence, public nuisance, unjust enrichment, civil conspiracy, as well as alleging violations of the Racketeer Influenced and Corrupt Organizations Act, state and federal controlled substances laws and other statutes. Since December 5, 2017, nearly all such cases pending in federal district courts have been transferred for consolidated pre-trial proceeding to a multi-district litigation (“MDL”) in the United States District Court for the Northern District of Ohio captioned In re: National Prescription Opiate Litigation, Case No. 17-md-28-04. At present, there are approximately 1,700 cases under the jurisdiction of the MDL court. On December 19, 2018, the court dismissed the City of Akron’s public nuisance claim and denied dismissal of all other claims challenged in defendants’ motions to dismiss. The court has set a trial date of October 21, 2019 for the claims brought by Cuyahoga County, Ohio and Summit County, Ohio. The Company is also named in more than 240 similar state court cases in 37 states plus Puerto Rico. These include actions filed by sixteen state attorneys general, and some by or on behalf of individuals, including wrongful death lawsuits and putative class action lawsuits brought on behalf of children with Neonatal Abstinence Syndrome due to alleged exposure to opioids in utero. Some of the state courts have ruled on defendants’ motions to dismiss. In the Connecticut coordinated actions, the court granted defendants’ motion to dismiss on January 8, 2019 and dismissed all claims filed by 21 municipalities; plaintiffs appealed this decision on January 22, 2019. In the New York coordinated actions, the court denied the distributors’ motion to dismiss on July 17, 2018; the distributor defendants appealed this decision on August 3, 2018. In the action filed by the Commonwealth of Puerto Rico, the court, on December 12, 2018, dismissed plaintiff’s unjust enrichment claim and declined to dismiss the remaining claims; the distributor defendants filed a motion for reconsideration on December 27, 2018. On December 29, 2018, the court denied the distributors’ motion to dismiss in a case filed by eight West Virginia counties in Marshall County, West Virginia. On March 8, 2019, the distributors filed a petition for writ of prohibition seeking discretionary review of this denial by the West Virginia Supreme Court. In the case file by the Delaware Attorney General, on February 4, 2019, the court dismissed all the causes of action except the claims for negligence and consumer fraud. On February 27, 2019, the court in the action brought by Clark County, Nevada denied the defendants’ motions to dismiss; the defendants have filed a motion for reconsideration of this decision. In the suit filed against the Company by the Attorney General of West Virginia in January 2016, on May 1, 2019, the parties reached a settlement of all claims in the suit against McKesson. State of West Virginia ex rel. Patrick Morrisey v. McKesson Corp., Circuit Court of Boone County, West Virginia, Case No. 16-C-1. On May 2, 2019, the court entered an order dismissing the State’s complaint as part of the parties’ settlement. Under the settlement agreement, McKesson paid $14.5 million on May 3, 2019, and will pay five additional installments of $4.5 million over the next five years . The agreement provides that funds from the settlement will be used in support of state initiatives to combat the opioid epidemic. The settlement does not include any admission of liability, and McKesson expressly denies wrongdoing. On April 3, 2017, Eli Inzlicht, a purported shareholder, filed a shareholder derivative complaint in the United States District Court for the Northern District of California against certain officers and directors of the Company and the Company as a nominal defendant, alleging violations of fiduciary duties relating to the Company’s previously disclosed agreement with the Drug Enforcement Administration (“DEA”) and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances, and seeking restitution and disgorgement of all profits, benefits and other compensation obtained by the defendants from the Company and attorneys’ fees, all in unspecified amounts, Inzlicht v. McKesson Corporation, et.al., No. 5:17-cv-01850. On July 26, 2017, Vladimir Gusinsky, as trustee for the Vladimir Gusinsky Living Trust, a purported shareholder, filed a shareholder derivative complaint in the same court based on similar allegations, Vladimir Gusinsky, as Trustee for the Vladimir Gusinsky Living Trust v. McKesson Corporation, et.al. , No. 5:17-cv-4248. On October 9, 2017, the court consolidated the two matters, In re McKesson Corporation Derivative Litigation , No. 4:17-cv-1850. On January 5, 2018, the defendants moved to dismiss the consolidated suit. On May 14, 2018, the court denied in part and granted in part the motions to dismiss. On September 17, 2018, a Special Litigation Committee established by the Board of Directors of the Company moved to stay the entire litigation while the Special Litigation Committee conducts an independent investigation concerning the plaintiffs’ allegations. On November 13, 2018, the court granted the motion to stay as to deposition discovery only. On October 17, 2017, Chaile Steinberg, a purported shareholder, filed a shareholder derivative complaint in the Delaware Court of Chancery against certain officers and directors of the Company and the Company as a nominal defendant, alleging violations of fiduciary duties relating to the Company’s previously disclosed agreement with the DEA and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances, and seeking damages and disgorgement of all profits, benefits and other compensation obtained by the defendants from the Company and attorneys’ fees, all in unspecified amounts, Steinberg v. McKesson Corporation, et.al. , No. 2017-0736. Three similar suits were thereafter filed by purported shareholders in the Court of Chancery of the State of Delaware, including Police & Fire Ret. Sys. of the City of Detroit v. McKesson Corporation, et al. , No. 2017-0803, Amalgamated Bank v. McKesson Corporation, et al. , No. 2017-0881, and Greene v. McKesson Corporation, et al. , No. 2018-0042. The court ordered that all four actions be consolidated, and the plaintiffs designated the complaint in the Steinberg action as the operative complaint. The consolidated matter is captioned In re McKesson Corporation Stockholder Derivative Litigation , No. 2017-0736. The defendants filed a motion to dismiss the complaint on January 18, 2018. On May 25, 2018, the court stayed further proceedings in this matter in favor of the In re McKesson Corporation Derivative Litigation action referenced above. On August 8, 2018, the Company was served with a qui tam complaint pending in the United States District Court for the District of Massachusetts alleging that the Company violated the False Claims Act and various state false claims acts due to the alleged failure of the Company and other defendants to report providers who were engaged in diversion. United States ex rel. Manchester v. Purdue Pharma, L.P., et al. , Case No. 1-16-cv-10947. On August 22, 2018, the United States filed a motion to dismiss. The relator recently died, and on February 25, 2019 the court entered an order staying the matter until a proper party can be substituted, and providing that if no party is substituted within 90 days of February 25, 2019, the case will be dismissed. On April 3, 2019, the widow of the relator filed a motion to substitute their daughter as the relator; on April 12, 2019, the United States filed its opposition to this substitution request. II. Other Litigation and Claims On May 17, 2013, the Company was served with a complaint filed in the United States District Court for the Northern District of California by True Health Chiropractic Inc., alleging that McKesson sent unsolicited marketing faxes in violation of the Telephone Consumer Protection Act of 1991 (“TCPA”), as amended by the Junk Fax Protection Act of 2005 or JFPA, True Health Chiropractic Inc., et al. v. McKesson Corporation, et al., CV-13-02219 (HG). True Health Chiropractic later amended its complaint, adding McLaughlin Chiropractic Associates as an additional named plaintiff and McKesson Technologies Inc. as a defendant. Both plaintiffs alleged that the Company violated the TCPA because it sent faxes that did not contain notices regarding how to opt out of receiving the faxes. On July 16, 2015, plaintiffs filed a motion for class certification and on August 22, 2016, the court denied this motion, based, in part, on the grounds that identifying solicited faxes would require individualized inquiries as to consent. Plaintiffs appealed to the United States Court of Appeals for the Ninth Circuit. In March 2017, however, the United States Court of Appeals for the District of Columbia Circuit held, in an unrelated matter, that the FCC’s rule requiring opt-out notices does not apply to solicited fax advertisements (i.e. those sent with consent.) On July 27, 2018, the Ninth Circuit affirmed in part and reversed in part the district court’s denial of class certification and remanded the case to the district court for further proceedings. Plaintiffs filed a renewed motion for class certification on December 4, 2018. On January 25, 2019, the Company filed a petition for writ of certiorari in the Supreme Court of the United States, asking the court to review the ruling by the Ninth Circuit. On April 17, 2019, the court denied the Company’s motion to stay the action pending the decision by the Supreme Court on the Company’s petition for writ of certiorari. On December 29, 2017, two investment funds holding shares in Celesio AG filed a complaint against McKesson Europe Holdings (formerly known as “Dragonfly GmbH & Co KGaA”), a subsidiary of the Company, in a German court in Stuttgart, Germany, Polygon European Equity Opportunity Master Fund et al. v. McKesson Europe Holdings GmbH & Co. KGaA, No. 18 O 455/17. The complaint alleges that the public tender offer document published by McKesson Europe in its acquisition of Celesio AG incorrectly stated that McKesson Europe’s acquisition of convertible bonds would not be treated as a relevant acquisition of shares for the purposes of triggering minimum pricing considerations under Section 4 of the German Takeover Offer Ordinance. On May 11, 2018, the court dismissed the claims against McKesson Europe. Plaintiffs appealed this ruling and, on December 19, 2018, the Higher Regional Court (Oberlandesgericht) of Stuttgart confirmed the full dismissal of this matter. On March 13, 2019, the Higher Regional Court issued an order dismissing Plaintiffs’ application to amend the factual part of the Court’s December 2018 opinion. On February 4, 2019, Plaintiffs filed a complaint against denial of leave to appeal with the Federal Supreme Civil Court (Bundesgerichtshof). On December 30, 2017, four additional investment funds, which allegedly entered into swap transactions regarding shares in Celesio AG that would have enabled them to decide whether to accept the takeover offer described above, filed a claim, Davidson Kempner International (BVI) Ltd. et al. v. McKesson Europe Holdings GmbH & Co. KGaA, No.16 O 475/17 , that is similar to the Polygon matter. On March 15, 2019, the lower court dismissed the case; plaintiffs filed an appeal with the Higher Regional Court (Oberlandesgericht) of Stuttgart on April 15, 2019. On March 5, 2018, the Company’s subsidiary, RxC Acquisition Company (d/b/a RxCrossroads), was served with a qui tam complaint filed in July 2017 in the United States District Court for the Southern District of Illinois by a relator against RxC Acquisition Company, among others, alleging that UCB, Inc., provided illegal “kickbacks” to providers, including nurse educator services and reimbursement assistance services provided through RxC Acquisition Company, in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes. United States ex rel. CIMZNHCA, LLC v. UCB, Inc., et al. , No. 17-cv-00765. The complaint seeks treble damages, civil penalties, and further relief, all in unspecified amounts. The United States and the states named in the complaint have declined to intervene in the suit. On December 17, 2018, the Department of Justice filed a motion to dismiss the complaint in its entirety; this motion was denied on April 15, 2019. On April 29, 2019, the Department of Justice filed a motion for reconsideration of this denial. The court has set a trial date of April 5, 2021. On April 16, 2013, the Company’s subsidiary, U.S. Oncology, Inc. (“USON”), was served with a third amended qui tam complaint filed in the United States District Court for the Eastern District of New York by two relators, purportedly on behalf of the United States, 21 states and the District of Columbia, against USON and five other defendants, alleging that USON solicited and received illegal “kickbacks” from Amgen in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Piacentile v. Amgen Inc., et al. , CV 04-3983 (SJ). Previously, the United States declined to intervene in the case as to all allegations and defendants except for Amgen. On September 30, 2013, the court granted the United States’ motion to dismiss the claims pled against Amgen. On September 17, 2018, the court granted USON’s motion to dismiss the claims pled against it, with leave to amend. On November 16, 2018, the relators filed a fourth amended complaint. On March 29, 2019, USON filed a motion to dismiss that amended complaint. On June 17, 2014, U.S. Oncology Specialty, LP (“USOS”) was served with a fifth amended qui tam complaint filed in the United States District Court for the Eastern District of New York by a relator against USOS, among others, alleging that USOS solicited and received illegal “kickbacks” from Amgen in violation of the Anti-Kickback Statute, the False Claims Act, and various state false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Hanks v. Amgen, Inc., et al. , CV-08-03096 (SJ). These claims are based on the same grounds as the Piacentile action referenced above. Previously, the United States declined to intervene in the case as to all allegations and defendants except for Amgen. On September 17, 2018, the court granted USOS’s motion to dismiss and gave the relator leave to file another action after the Piacentile action is no longer pending. The relator appealed this order to the United States Court of Appeals for the Second Circuit, and on December 11, 2018 the defendants moved to dismiss the appeal. On November 27, 2018, the Company’s subsidiary, RxC Acquisition Company (d/b/a RxCrossroads) was served with a qui tam complaint filed in the United States District Court for the Eastern District of Pennsylvania alleging that EMD Serono, Inc. and Pfizer, Inc. provided illegal “kickbacks” to providers, including services provided through RxC Acquisition Company and others, in violation of the Anti-Kickback statute, the False Claims Act, and various state false claims statutes. United States ex rel. Harris et al. v. EMD Serono, Inc. et al. , No. 16-5594. The United States and the named states declined to intervene in the case. On December 17, 2018, the Department of Justice filed a motion to dismiss the complaint in its entirety. On December 28, 2018, relators filed a second amended complaint, and on January 7, 2019, relators and defendants jointly moved for a stay of the defendants’ response deadline until after the Department of Justice’s motion to dismiss has been resolved. On April 3, 2019, the court granted the motion to dismiss. On January 24, 2019, the Company was served with a qui tam complaint that had previously been unsealed in the United States District Court for the Eastern District of Texas, alleging that the Company and its subsidiary, U.S. Oncology, Inc., among others, received payments for unnecessary medical services in violation of the False Claims Act and the Texas Medicaid Fraud Prevention Act. United States ex rel. Nguyen v. McKesson Corp., et al. , No. 4:15-00814. Previously, the United States and Texas declined to intervene in the case. On March 19, 2019, the court granted relator’s motion to stay proceedings for ninety days . On April 3, 2018, a second amended qui tam complaint was filed in the United States District Court for the Eastern District of New York by a relator, purportedly on behalf of the United States, 30 states, the District of Columbia, and two cities against McKesson Corporation, McKesson Specialty Care Distribution Corporation, McKesson Specialty Distribution LLC, McKesson Specialty Care Distribution Joint Venture, L.P., Oncology Therapeutics Network Corporation, Oncology Therapeutics Network Joint Venture, L.P., US Oncology, Inc. and US Oncology Specialty, L.P., alleging that from 2001 through 2010 the defendants repackaged and sold single-dose syringes of oncology medications in a manner that violated the federal False Claims Act and various state and local false claims statutes, and seeking damages, treble damages, civil penalties, attorneys’ fees and costs of suit, all in unspecified amounts, United States ex rel. Omni Healthcare Inc. v. McKesson Corporation, et al. , 12-CV-06440 (NG). The United States and the named states have declined to intervene in the case. On October 15, 2018, the Company filed a motion to dismiss the complaint as to all named defendants. On February 3, 2019, the court granted the motion to dismiss in part and denied it in part, leaving the Company and Oncology Therapeutics Network Corporation as the only remaining defendants in the case. On February 19, 2019, the relator filed a motion for reconsideration of the court’s dismissal of Oncology Therapeutics Network Joint Venture. The Company is a defendant in an amended complaint filed on June 15, 2018 in a case pending in the United States District Court for the Southern District of Illinois alleging that the Company’s subsidiary, McKesson Medical-Surgical Inc., among others, violated the Sherman Act by restraining trade in the sale of safety and conventional syringes and safety IV catheters. Marion Diagnostic Center, LLC v. Becton, Dickinson, et al. , No. 18:1059. The action is filed on behalf of a purported class of purchasers, and seeks treble damages and further relief, all in unspecified amounts. On July 20, 2018, the defendants filed a motion to dismiss. On November 30, 2018, the district court granted the motion to dismiss, and dismissed the complaint with prejudice. On December 27, 2018, plaintiffs appealed the order to the United States Court of Appeals for the Seventh Circuit. On September 25, 2018, plaintiffs filed a complaint in the United States District Court for the Eastern District of Pennsylvania alleging that the Company and its subsidiary, McKesson Medical-Surgical Inc., among others, violated the Sherman Act by restraining trade in the sale of generic drugs. Marion Diagnostic Center, LLC v. McKesson Corporation, et al., No. 2:18-cv-4137. A motion to dismiss was filed on February 21, 2019 and the plaintiffs have agreed to a discovery stay until the motion is resolved. On December 12, 2018, the Company was served with a class action complaint in the United States District Court for the Northern District of California, alleging that McKesson and two of its officers, CEO John Hammergren and former CFO James Beer, violated the Securities Exchange Act of 1934 by reporting profits and revenues from 2013 until early 2017 that were false and misleading, due to an alleged conspiracy to fix the prices of generic drugs. Evanston Police Pension Fund v. McKesson Corporation , No. 3:18-06525. On February 8, 2019, the court appointed the Pension Trust Fund for Operating Engineers as the lead plaintiff. On April 10, 2019, the lead plaintiff filed an amended complaint that added insider trading allegations against defendant Hammergren. The Great Atlantic & Pacific Tea Company (“A&P”), a former customer of the Company, filed Chapter 11 in the United States Bankruptcy Court for the Southern District of New York in July 2015. In re The Great Atlantic & Pacific Tea Company, Inc., et al., Case No. 15-23007. The Company has been sued in a lawsuit in this bankruptcy case which seeks to recover approximately $68 million in allegedly preferential transfers. The Official Committee of Unsecured Creditors on behalf of the bankruptcy estate of The Great Atlantic & Pacific Tea Company, Inc., et al. v. McKesson Corporation d/b/a McKesson Drug Co., Adv. Proc. No. 17-08264. III. Government Subpoenas and Investigations From time to time, the Company receives subpoenas or requests for information from various government agencies. The Company generally responds to such subpoenas and requests in a cooperative, thorough and timely manner. These responses sometimes require time and effort and can result in considerable costs being incurred by the Company. Such subpoenas and requests also can lead to the assertion of claims or the commencement of civil or criminal legal proceedings against the Company and other members of the health care industry, as well as to settlements. As an example of the type of subpoenas or requests the Company receives from time to time, in August 2015, the Company was served with a Civil Investigative Demand by the U.S. Attorney’s Office for the Southern District of New York relating to certain business analytics tools offered to its customers. In May 2017 and August 2018, respectively, the Company was served with two separate Civil Investigative Demands by the U.S. Attorney’s Office for the Eastern District of New York relating to the certification the Company obtained for two software products under the U.S. Department of Health and Human Services’ Electronic Health Record Incentive Program. In September 2017, the Company received a request for information and documents from a group of approximately 40 state attorneys general related to an investigation into the factors contributing to the increasing number of opioid-related hospitalizations and deaths in the United States. The Company has also received civil investigative demands, subpoenas or requests for information from several other state attorneys general on the same issues. In January 2019, the Company was served with a subpoena by the U.S. Department of Health and Human Services, Office of Inspector General, related to the Company’s participation in the Medicaid Drug Rebate Program. The Company is currently responding to these requests. In 2015, the Company recorded a pre-tax charge of $150 million relating to the Company’s previously disclosed agreement with the DEA and the Department of Justice and various United States Attorneys’ offices to settle all potential administrative and civil claims relating to investigations about the Company’s suspicious order reporting practices for controlled substances. In January 2017, the Company finalized the settlements and paid $150 million in cash. New York Opioid Statute Legislative, regulatory or industry measures to address the misuse of prescription opioid medications could affect the Company’s business in ways that we may not be able to predict. For example, in April 2018, the State of New York adopted the Opioid Stewardship Act (the “OSA”) which required the creation of an aggregate $100 million annual surcharge on all manufacturers and distributors licensed to sell or distribute opioids in New York. The initial surcharge payment would have been due on January 1, 2019 for opioids sold or distributed during calendar year 2017. On December 19, 2018, the United States District Court for the Southern District of New York found the law unconstitutional and issued an injunction preventing the State of New York from enforcing the law. On January 17, 2019, the State filed a notice of appeal. The State of New York has subsequently adopted a tax on sales of opioids in the State. The excise tax would apply only to the first sale occurring in New York, and thus may not apply to sales from the Company’s distribution centers in New York to pharmacy customers. In addition, other states are considering legislation that could require us to pay taxes, licensing fees, or assessments on the distribution of opioid medications in those states. These proposed bills vary in the amounts and the means of calculation. Liabilities for taxes or assessments under any such laws will likely have an adverse impact on our results of operations, unless we are able to mitigate them through operational changes or commercial arrangements where permitted. IV. Environmental Matters Primarily as a result of the operation of the Company’s former chemical businesses, which were fully divested by 1987, the Company is involved in various matters pursuant to environmental laws and regulations. The Company has received claims and demands from governmental agencies relating to investigative and remedial actions purportedly required to address environmental conditions alleged to exist at five sites where it, or entities acquired by it, formerly conducted operations and the Company, by administrative order or otherwise, has agreed to take certain actions at those sites, including soil and groundwater remediation. Based on a determination by the Company’s environmental staff, in consultation with outside environmental specialists and counsel, the current estimate of the Company’s probable loss associated with the remediation costs for these five sites is $10 million , net of amounts anticipated from third parties. The $10 million is expected to be paid out between April 2019 and March 2049 . The Company’s estimated probable loss for these environmental matters has been entirely accrued for in the accompanying consolidated balance sheets. In addition, the Company has been designated as a Potentially Responsible Party (“PRP”) under the Superfund law for environmental assessment and cleanup costs as the result of its alleged disposal of hazardous substances at 14 sites. With respect to these sites, numerous other PRPs have similarly been designated and while the current state of the law potentially imposes joint and several liabilities upon PRPs, as a practical matter, costs of these sites are typically shared with other PRPs. At one of these sites, the United States Environmental Protection Agency has selected a preferred remedy with an estimated cost of approximately $1.38 billion . It is not certain at this point in time what proportion of this estimated liability will be borne by the Company or by the numerous other PRPs. Accordingly, the Company’s estimated probable loss at those 14 sites is approximately $23.1 million , which has been entirely accrued for in the accompanying consolidated balance sheets. However, it is possible that the ultimate costs of these matters may exceed or be less than the reserves. V. Value Added Tax Assessments We operate in various countries outside the United States which collect value added taxes (“VAT”). The determination of the manner in which a VAT applies to our foreign operations is subject to varying interpretations arising from the complex nature of the tax laws. We have received assessments for VAT which are in various stages of appeal. We disagree with these assessments and believe that we have strong legal arguments to defend our tax positions. Certain VAT assessments relate to years covered by an indemnification agreement. Due to the complex nature of the tax laws, it is not possible to estimate the outcome of these matters. However, based on currently available information, we believe the ultimate outcome of these matters will not have a material adverse effect on our financial position, cash flows or results of operations. VI. Other Matters The Company is involved in various other litigation, governmental proceedings and claims, not described above, that arise in the normal course of business. While it is not possible to determine the ultimate outcome or the duration of such litigation, governmental proceedings or claims, the Company believes, based on current knowledge and the advice of counsel, that such litigation, proceedings and claims will not have a material impact on the Company’s financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [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 2018, the Company’s quarterly dividend was raised from $0.34 to $0.39 per common share for dividends declared on or after such date by the Board. Dividends were $1.51 per share in 2019 , $1.30 per share in 2018 and $1.12 per share in 2017 . 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 our stock price, corporate and regulatory requirements, restrictions under our debt obligations and other market and economic conditions. Information regarding the share repurchase activity over the last three years is as follows: Share Repurchases (1) (In millions, except price per share data) Total Number of Shares Purchased (2) (3) Average Price Paid Per Share Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs Balance, March 31, 2016 $ 996 Shares repurchase plans authorized October 2016 4,000 Shares repurchased 15.5 $ 141.16 (2,250 ) Balance, March 31, 2017 $ 2,746 Shares repurchased 10.5 $ 151.06 (1,650 ) Balance, March 31, 2018 $ 1,096 Shares repurchase plans authorized May 2018 4,000 Shares repurchased 13.5 $ 130.72 (1,627 ) Balance, March 31, 2019 $ 3,469 (1) This table does not include shares tendered to satisfy the exercise price in connection with cashless exercises of employee stock options or shares tendered to satisfy tax withholding obligations in connection with employee equity awards. (2) All of the shares purchased were part of the publicly announced programs. (3) The number of shares purchased reflects rounding adjustments. During the last three years, our share repurchases were transacted through both open market transactions and ASR programs with third party financial institutions. In October 2016, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock. In 2017, we repurchased 14.1 million of the Company’s shares for $2.0 billion through open market transactions at an average price per share of $140.96 . In March 2017, we entered into an ASR program with a third-party financial institution to repurchase $250 million of the Company’s common stock. As of March 31, 2017, we had received 1.4 million shares under this program. This ASR program was completed in April 2017 and we received 0.3 million additional shares. The total number of shares repurchased under this ASR program was 1.7 million shares at an average price per share of $143.19 . During 2017, we completed the October 2015 share repurchase authorization. The total authorization outstanding for repurchases of the Company’s common stock was $2.7 billion at March 31, 2017. In 2018, we repurchased 3.5 million of the Company’s shares for $500 million through open market transactions at an average price per share of $144.43 . In June 2017, August 2017 and March 2018, we entered into three separate ASR programs with third-party financial institutions to repurchase $250 million , $400 million and $500 million of the Company’s common stock. As of March 31, 2018, we completed and received a total of 1.5 million shares under the June 2017 ASR program and a total of 2.7 million shares under the August 2017 ASR program. In addition, we received 2.5 million shares representing the initial number of shares due in March 2018 and an additional 1.0 million shares in the first quarter of 2019. The March 2018 ASR program was completed at an average price per share of $143.66 during the first quarter of 2019. The total authorization outstanding for repurchase of the Company’s common stock was $1.1 billion at March 31, 2018. In May 2018, the Board authorized the repurchase of up to $4.0 billion of the Company’s common stock. The total authorization outstanding for repurchases of the Company’s common stock was increased to $5.1 billion . During 2019, we repurchased 10.4 million of the Company’s shares for $1.4 billion through open market transactions at an average price per share of $132.14 . In December 2018, we entered into an ASR program with a third-party financial institution to repurchase $250 million of the Company’s common stock. The total number of shares repurchased under this ASR program was 2.1 million shares at an average price per share of $117.98 . The total authorization outstanding for repurchase of the Company’s common stock was $3.5 billion at March 31, 2019. In 2019, we retired 5.0 million or $542 million 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 $472 million and $70 million during 2019. 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: Years Ended March 31, (In millions) 2019 2018 2017 Foreign currency translation adjustments: (1) Foreign currency translation adjustments arising during period, net of income tax (expense) benefit of nil, nil and $1 (2) (3) $ (431 ) $ 804 $ (644 ) Reclassified to income statement, net of income tax expense of nil, nil and nil (4) — — 20 (431 ) 804 (624 ) Unrealized gains (losses) on net investment hedges (5) Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of ($71), $95 and $5 241 (180 ) (8 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 241 (180 ) (8 ) 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), $9 and nil 24 (30 ) (19 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 24 (30 ) (19 ) Changes in retirement-related benefit plans: Net actuarial gain (loss) and prior service credit (cost) arising during the period, net of income tax (expense) benefit of $5, ($2) and ($4) (6) (51 ) 25 (20 ) Amortization of actuarial loss, prior service cost and transition obligation, net of income tax (expense) of nil, ($2) and ($4) (7) 9 5 9 Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil 10 (15 ) 3 Reclassified to income statement, net of income tax expense of nil, nil and nil — — — (32 ) 15 (8 ) Other Comprehensive Income (Loss), net of tax $ (198 ) $ 609 $ (659 ) (1) Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries McKesson Europe, into the Company’s reporting currency, U.S. dollars. (2) The 2019 net foreign currency translation losses of $431 million were primarily due to the weakening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2018 to March 31, 2019. The 2018 net foreign currency translation gains of $804 million were primarily due to the strengthening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2017 to March 31, 2018. The 2017 net foreign currency translation losses of $644 million were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2016 to March 31, 2017. (3) 2019 includes net foreign currency translation losses of $61 million and 2018 includes net foreign currency translation gains of $189 million attributable to noncontrolling and redeemable noncontrolling interests. (4) These net foreign currency losses were reclassified from accumulated other comprehensive income (loss) to discontinued operations within our consolidated statement of operations due to the sale of our Brazilian pharmaceutical distribution business. (5) 2019, 2018 and 2017 include foreign currency gains of $259 million and losses of $268 million and $13 million on the net investment hedges from the Euro and British pound sterling-denominated notes. 2019 and 2018 also include foreign currency gains of $53 million and losses of $7 million on the net investment hedges from the cross-currency swaps. (6) The net actuarial losses of $5 million and $4 million were attributable to noncontrolling and redeemable noncontrolling interests in 2019 and 2018. (7) Pre-tax amount was reclassified into cost of sales and operating expenses in the consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations. Accumulated Other Comprehensive Income (Loss) Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax Unrealized 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, 2017 $ (1,873 ) $ (8 ) $ (31 ) $ (229 ) $ (2,141 ) Other comprehensive income (loss) before reclassifications 804 (180 ) (30 ) 10 604 Amounts reclassified to earnings — — — 5 5 Other comprehensive income (loss) $ 804 $ (180 ) $ (30 ) $ 15 $ 609 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 189 — — (4 ) 185 Other comprehensive income (loss) attributable to McKesson $ 615 $ (180 ) $ (30 ) $ 19 $ 424 Balance at March 31, 2018 $ (1,258 ) $ (188 ) $ (61 ) $ (210 ) $ (1,717 ) Other comprehensive income (loss) before reclassifications (431 ) 241 24 (41 ) (207 ) Amounts reclassified to earnings and other — — — 9 9 Other comprehensive income (loss) $ (431 ) $ 241 $ 24 $ (32 ) $ (198 ) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (61 ) — — (5 ) (66 ) Other comprehensive income (loss) attributable to McKesson $ (370 ) $ 241 $ 24 $ (27 ) $ (132 ) Balance at March 31, 2019 $ (1,628 ) $ 53 $ (37 ) $ (237 ) $ (1,849 ) |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Balances and Transactions | Related Party Balances and Transactions During the fourth quarter of 2018, a public benefit California foundation (“Foundation”) was established to provide opioid education to patients, caregivers, and providers, address policy issues, and increase patient access to life-saving treatments. Certain officers of the Company also serve as directors and officers of the Foundation. In March 2018, we made a pledge to the Foundation and incurred a pre-tax charitable contribution expense of $100 million ( $64 million after-tax) for 2018, which was recorded under the caption, “Selling, distribution and administrative expenses,” in the accompanying consolidated statement of operations. The Company had a pledge payable balance of $100 million to the Foundation as of March 31, 2018, which was included under the caption, “Other accrued liabilities,” in our consolidated balance sheet. The pledge was fully paid in 2019. McKesson Europe has investments in pharmacies located across Europe that are accounted for under the equity method. McKesson Europe maintains distribution arrangements with these pharmacies for the sale of related goods and services under which revenues of $137 million , $154 million , and $112 million are included in our consolidated statements of operations for the years ended March 31, 2019 , 2018 and 2017 and receivables of $13 million and $15 million are included in our consolidated balance sheets as of March 31, 2019 and 2018 . Refer to Financial Note 5, “Healthcare Technology Net Asset Exchange,” for information regarding related party balances and transactions with Change Healthcare. |
Sale-Leaseback
Sale-Leaseback | 12 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Sale-Leaseback | Sale-Leaseback In 2017, we completed a sale-leaseback transaction for our corporate headquarters building in San Francisco, California. The transaction resulted in net cash proceeds of $223 million and a pre-tax gain of $15 million , which represents the amount of total gain in excess of the present value of the minimum lease payments. Additionally, we initially deferred a pre-tax gain of $48 million ; such gain was being amortized on a straight-line basis over the lease term as a reduction to selling, distribution, and administrative expense in the accompanying consolidated statements of operations. Upon the adoption of the amended lease guidance in the first quarter of 2020, the existing deferred gain on this sale-leaseback transaction will be derecognized from the consolidated balance sheet and recognized to opening retained earnings. Refer to Financial Note 1, “Significant Accounting Policies,” for more information. Refer to Financial Note 22, “Lease Obligations,” for the future minimum lease payments associated with this sale-leaseback. |
Segments of Business
Segments of Business | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segments of Business | Segments of Business Commencing in the first quarter of 2019, a new segment reporting structure was implemented, and we report our financial results in three reportable segments on a retrospective basis: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions and Medical-Surgical Solutions. All remaining operating segments and business activities that are not significant enough to require separate reportable segment disclosure are included in Other also on a retrospective basis. The factors for determining the reportable segments included the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. We evaluate the performance of our operating segments on a number of measures, including revenues and operating profit before interest expense and income taxes. Assets by operating segment are not reviewed by management for the purpose of assessing performance or allocating resources. Our U.S. Pharmaceutical and Specialty Solutions segment distributes pharmaceutical and other healthcare-related products and also provides pharmaceutical solutions to pharmaceutical manufacturers in the United States. Our European Pharmaceutical Solutions segment provides distribution and services to wholesale, institutional and retail customers and serves patients and consumers in 13 European countries through our own pharmacies and participating pharmacies that operate under brand partnership and franchise arrangements. Our Medical-Surgical Solutions segment distributes medical-surgical supplies and provides logistics and other services to healthcare providers in the United States. Other primarily consists of the following: • McKesson Canada which distributes pharmaceutical and medical products and operates Rexall Health retail pharmacies; • McKesson Prescription Technology Solutions which provides innovative technologies that support retail pharmacies; and • Our 70% equity ownership interest in a joint venture, Change Healthcare, which is accounted for by us using the equity investment method of accounting. Corporate includes expenses associated with Corporate functions and projects, and the results of certain investments. Corporate expenses are allocated to operating segments to the extent that these items are directly attributable. Financial information relating to our reportable operating segments and reconciliations to the consolidated totals is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Revenues U.S. Pharmaceutical and Specialty Solutions (1) $ 167,763 $ 162,587 $ 155,236 European Pharmaceutical Solutions (1) 27,242 27,320 24,847 Medical-Surgical Solutions (1) 7,618 6,611 6,244 Other 11,696 11,839 12,206 Total Revenues $ 214,319 $ 208,357 $ 198,533 Operating profit (2) U.S. Pharmaceutical and Specialty Solutions (3) $ 2,697 $ 2,535 $ 2,488 European Pharmaceutical Solutions (4) (1,978 ) (1,681 ) 173 Medical-Surgical Solutions 455 461 401 Other (5) (6) (7) 394 (107 ) 4,514 Total 1,568 1,208 7,576 Corporate Expenses, Net (8) (694 ) (564 ) (377 ) Loss on Debt Extinguishment — (122 ) — Interest Expense (264 ) (283 ) (308 ) Income from Continuing Operations Before Income Taxes $ 610 $ 239 $ 6,891 Depreciation and amortization (9) U.S. Pharmaceutical and Specialty Solutions $ 238 $ 210 $ 235 European Pharmaceutical Solutions 257 296 315 Medical-Surgical Solutions 118 97 101 Other 214 237 149 Corporate 122 111 110 Total $ 949 $ 951 $ 910 Expenditures for long-lived assets (10) U.S. Pharmaceutical and Specialty Solutions $ 88 $ 126 $ 109 European Pharmaceutical Solutions 85 104 125 Medical-Surgical Solutions 110 34 9 Other 68 42 63 Corporate 75 99 98 Total $ 426 $ 405 $ 404 Revenues, net by geographic area United States $ 176,296 $ 169,943 $ 164,428 Foreign 38,023 38,414 34,105 Total Revenues $ 214,319 $ 208,357 $ 198,533 (1) Revenues derived from services represent less than 1% of our U.S. Pharmaceutical and Specialty Solutions segment’s total revenues, less than 10% of our European Pharmaceutical Solutions segment’s total revenues and less than 1% of our Medical-Surgical Solutions segment’s total revenues. (2) Segment operating profit includes gross profit, net of operating expenses, as well as other income, net, for our operating segments. (3) Our U.S. Pharmaceutical and Specialty Solutions segment’s operating profit for 2019, 2018 and 2017 includes pre-tax credits of $210 million , $99 million and $7 million related to our LIFO method of accounting for inventories. LIFO credits were higher in 2019 and 2018 compared to the comparable prior year periods primarily due to higher net effect of price declines. Operating profit for 2019 and 2017 includes $202 million and $144 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits. In addition, operating profit for 2018 includes a pre-tax gain of $43 million recognized from the sale of an equity investment. (4) European Pharmaceutical Solutions segment’s operating profit for 2019 and 2018 include non-cash pre-tax goodwill impairment charges of $1,776 million and $1,283 million . This segment’s operating profit for 2019 and 2018 also includes non-cash pre-tax long-lived asset impairment charges of $210 million and $446 million . (5) Operating profit for Other for 2019 and 2018 includes non-cash pre-tax goodwill and long-lived asset impairment charges of $35 million and $488 million recognized for our Rexall Health retail business. 2019 operating profit for Other also includes a pre-tax gain from escrow settlement of $97 million representing certain indemnity and other claims related to our 2017 acquisition of Rexall Health. In addition, operating profit for 2019 include pre-tax restructuring and asset impairment charges of $91 million , primarily associated with the lease and other exit-related costs and a pre-tax gain of $56 million recognized from the sale of an equity investment. (6) Operating profit for Other for 2019 includes a pre-tax credit of $90 million representing the derecognition of the TRA liability payable to the shareholders of Change. Operating profit for Other also includes our proportionate share of loss from Change Healthcare of $194 million and $248 million for 2019 and 2018. (7) Operating profit for Other for 2018 includes a pre-tax gain of $109 million from the sale of our EIS business and a pre-tax credit of $46 million representing a reduction in our TRA liability. Additionally, operating profit for 2017 includes a pre-tax gain of $3,947 million recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses, and a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit. (8) Corporate expenses, net, for 2019 include pre-tax restructuring and asset impairment charges of $94 million primarily associated with employee severance and other exit-related costs. (9) Amounts primarily include amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use. (10) Long-lived assets consist of property, plant and equipment. Segment assets and property, plant and equipment, net by geographic areas were as follows: March 31, (In millions) 2019 2018 Segment assets U.S. Pharmaceutical and Specialty Solutions $ 32,310 $ 31,431 European Pharmaceutical Solutions 7,829 10,467 Medical-Surgical Solutions 5,260 4,243 Other 11,006 11,509 Corporate 3,267 2,731 Total $ 59,672 $ 60,381 Property, plant and equipment, net United States $ 1,698 $ 1,529 Foreign 850 935 Total $ 2,548 $ 2,464 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The quarterly results of operations are not necessarily indicative of the results that may be expected for the entire year. Selected quarterly financial information for the last two years is as follows: (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2019 Revenues $ 52,607 $ 53,075 $ 56,208 $ 52,429 Gross profit (1) (2) 2,779 2,804 2,970 3,201 Income (Loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) (6) (7) $ (81 ) $ 552 $ 527 $ (744 ) Discontinued operations 1 1 (1 ) — Net income (loss) $ (80 ) $ 553 $ 526 $ (744 ) Net income (loss) attributable to McKesson $ (138 ) $ 499 $ 469 $ (796 ) Earnings (loss) per common share attributable to McKesson (8) Diluted (9) Continuing operations $ (0.69 ) $ 2.51 $ 2.41 $ (4.17 ) Discontinued operations 0.01 — (0.01 ) — Total $ (0.68 ) $ 2.51 $ 2.40 $ (4.17 ) Basic Continuing operations $ (0.69 ) $ 2.52 $ 2.42 $ (4.17 ) Discontinued operations 0.01 — (0.01 ) — Total $ (0.68 ) $ 2.52 $ 2.41 $ (4.17 ) (1) Gross profit for the first, second, third and fourth quarters of 2019 includes pre-tax credits of $21 million , $22 million , $21 million and $146 million related to our LIFO method of accounting for inventories. (2) Gross profit for the first, third and fourth quarters of 2019 includes $35 million , $104 million , and $63 million of cash proceeds representing our share of net settlements of antitrust class action lawsuits. (3) Financial results for the first and fourth quarter of 2019 include non-cash pre-tax goodwill impairment charges of $570 million and $1,206 million within our two reporting units within the European Pharmaceutical Solutions segment. (4) Financial results for the first and fourth quarters of 2019 include non-cash pre-tax asset impairment charges of $20 million and $190 million primarily for our U.K. retail business. Financial results for the third quarter of 2019 include non-cash pre-tax asset impairment charges of $35 million for our Rexall Health retail business. (5) Financial results for the first, second, third and fourth quarters of 2019 include our proportionate share of loss from Change Healthcare of $56 million , $56 million , $50 million and $32 million . (6) Financial results for the first quarter of 2019 include a pre-tax gain from escrow settlement of $97 million representing certain indemnity and other claims related to our 2017 acquisition of Rexall Health. (7) Financial results for the second quarter of 2019 include a pre-tax credit of $90 million representing the derecognition of the TRA liability payable to the shareholders of Change. (8) Certain computations may reflect rounding adjustments. (9) As a result of our reported net loss for the first and fourth quarters of 2019, potentially dilutive securities were excluded from the per share computations for those quarters due to their antidilutive effect. (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Revenues $ 51,051 $ 52,061 $ 53,617 $ 51,628 Gross profit (1) 2,560 2,834 2,715 3,075 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) $ 363 $ 56 $ 960 $ (1,087 ) Discontinued operations 2 — 1 2 Net income (loss) $ 365 $ 56 $ 961 $ (1,085 ) Net income (loss) attributable to McKesson $ 309 $ 1 $ 903 $ (1,146 ) Earnings (loss) per common share attributable to McKesson (6) Diluted (7) Continuing operations $ 1.44 $ 0.01 $ 4.32 $ (5.58 ) Discontinued operations 0.01 — 0.01 — Total $ 1.45 $ 0.01 $ 4.33 $ (5.58 ) Basic Continuing operations $ 1.46 $ 0.01 $ 4.34 $ (5.58 ) Discontinued operations — — 0.01 — Total $ 1.46 $ 0.01 $ 4.35 $ (5.58 ) (1) Gross profit for the first, second, third and fourth quarters of 2018 includes pre-tax charge of $26 million , pre-tax credits of $29 million , $2 million and $94 million related to our LIFO method of accounting for inventories. (2) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax goodwill impairment charges of $350 million and $933 million for our former McKesson Europe reporting unit in European Pharmaceutical Solutions segment. In addition, financial results for the fourth quarter of 2018 include a non-cash pre-tax goodwill impairment charge of $455 million for our Rexall Health reporting unit in Other. (3) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax asset impairment charges of $189 million and $257 million for our McKesson Europe business. (4) Financial results for the third quarter of 2018 include a pre-tax gain of $109 million from the sale of our EIS business. (5) Financial results for the first, second, third and fourth quarters of 2018 include our proportionate share of loss from Change Healthcare of $120 million , $61 million , $90 million and income of $23 million . (6) Certain computations may reflect rounding adjustments. (7) As a result of our reported net loss for the fourth quarter of 2018, potentially dilutive securities were excluded from the 2018 fourth quarter per share computations due to their antidilutive effect. |
SUPPLEMENTARY CONSOLIDATED FINA
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS | SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS For the Years Ended March 31, 2019 , 2018 and 2017 (In millions) Additions Description Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts (3) Deductions From Allowance Accounts (1) Balance at End of Year (2) Year Ended March 31, 2019 Allowances for doubtful accounts $ 187 $ 132 $ (1 ) $ (45 ) $ 273 Other allowances 39 — (15 ) — 24 $ 226 $ 132 $ (16 ) $ (45 ) $ 297 Year Ended March 31, 2018 Allowances for doubtful accounts $ 243 $ 44 $ 13 $ (113 ) $ 187 Other allowances 42 — (3 ) — 39 $ 285 $ 44 $ 10 $ (113 ) $ 226 Year Ended March 31, 2017 Allowances for doubtful accounts $ 212 $ 93 $ 7 $ (69 ) $ 243 Other allowances 41 — 2 (1 ) 42 $ 253 $ 93 $ 9 $ (70 ) $ 285 2019 2018 2017 (1) Deductions: Written off $ (45 ) $ (113 ) $ (70 ) Credited to other accounts — — — Total $ (45 ) $ (113 ) $ (70 ) (2) Amounts shown as deductions from current and non-current receivables $ 297 $ 226 $ 285 (3) Primarily represents reclassifications from other balance sheet accounts. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The consolidated financial statements and accompanying notes are prepared in accordance with U. S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of McKesson include the financial statements of all wholly-owned subsidiaries and majority-owned or controlled companies. For those consolidated subsidiaries where our ownership is less than 100% , the portion of the net income or loss allocable to the noncontrolling interests is reported as “Net Income Attributable to Noncontrolling Interests” on the consolidated statements of operations. All significant intercompany balances and transactions have been eliminated in consolidation including the intercompany portion of transactions with equity method investees. We consider ourselves to control an entity if we are the majority owner of or have voting control over such entity. We also assess control through means other than voting rights (“variable interest entities” or “VIEs”) and determine which business entity is the primary beneficiary of the VIE. We consolidate VIEs when it is determined that we are the primary beneficiary of the VIE. Investments in business entities in which we do not have control but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Refer to Financial Note 5, “Healthcare Technology Net Asset Exchange” for further information on our equity method investment in Change Healthcare, LLC (“Change Healthcare”). |
Fiscal Period | Fiscal Period: The Company’s fiscal year begins on April 1 and ends on March 31. Unless otherwise noted, all references to a particular year shall mean the Company’s fiscal year. |
Reclassifications | Reclassifications : Certain prior year amounts have been reclassified to conform to the current year presentation. |
Use of Estimates | Use of Estimates : The preparation of financial statements in conformity with U.S. GAAP requires that we make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual amounts could differ from those estimated amounts. |
Cash and Cash Equivalents | Cash and Cash Equivalents : All highly liquid debt and money market instruments purchased with original maturity of three months or less at the date of acquisition are included in cash and cash equivalents. Cash equivalents are carried at fair value. Cash equivalents are primarily invested in AAA rated prime and U.S. government money market funds denominated in U.S. dollars, overnight repurchase agreements collateralized by U.S. government securities, Canadian government securities and/or securities that are guaranteed or sponsored by the U.S. government and an AAA rated prime money market fund denominated in British pound sterling. The remaining cash and cash equivalents are deposited with several financial institutions. Deposits may exceed the amounts insured by the Federal Deposit Insurance Corporation in the U.S. and similar deposit insurance programs in other jurisdictions. We mitigate the risk of our short-term investment portfolio by depositing funds with reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. |
Restricted Cash | Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included within “Prepaid expenses and other” and “Other Noncurrent Assets” in the consolidated balance sheets. |
Marketable Securities Available-for-Sale | Marketable Securities Available-for-Sale : Our marketable securities, which are available-for-sale, are carried at fair value and are included within “Prepaid expenses and other” in the consolidated balance sheets. The unrealized gains and losses, net of the related tax effect, computed in marking these securities to market have been reported within stockholders’ equity. At March 31, 2019 and 2018 , marketable securities were not material. In determining whether an other-than-temporary decline in market value has occurred, we consider the duration that, and extent to which, the fair value of the investment is below its cost, the financial condition and future prospects of the issuer or underlying collateral of a security, and our intent and ability to retain the security in order to allow for an anticipated recovery in fair value. Other-than-temporary declines in fair value from amortized cost for available-for-sale equity securities that we intend to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis are charged to other income, net, in the period in which the loss occurs. |
Equity Method Investments | Equity Method Investments: Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. We evaluate our equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment. If a loss in value has occurred that is deemed to be other-than-temporary, an impairment loss is recorded. Refer to Financial Note 5, “Healthcare Technology Net Asset Exchange” for further information relating to our equity method investment in Change Healthcare, LLC (“Change Healthcare”). |
Concentrations of Credit Risk and Receivables | Concentrations of Credit Risk and Receivables: Our trade accounts receivable are subject to concentrations of credit risk with customers primarily in our U.S. Pharmaceutical and Specialty Solutions segment. During 2019 , sales to our ten largest customers, including group purchasing organizations (“GPOs”) accounted for approximately 49.9% of our total consolidated revenues. Sales to our largest customer, CVS Health (“CVS”), accounted for approximately 19.4% of our total consolidated revenues. At March 31, 2019 , trade accounts receivable from our ten largest customers were approximately 31.9% of total trade accounts receivable. Accounts receivable from CVS were approximately 18.4% of total trade accounts receivable. As a result, our sales and credit concentration is significant. We also have agreements with GPOs, each of which functions as a purchasing agent on behalf of member hospitals, pharmacies and other healthcare providers, as well as with government entities and agencies. The accounts receivables balances are with individual members of the GPOs, and therefore no significant concentration of credit risk exists. A material default in payment, a material reduction in purchases from these or any other large customers, or the loss of a large customer or customer groups could have a material adverse impact on our financial condition, results of operations and liquidity. In addition, trade receivables are subject to concentrations of credit risk with customers in the institutional, retail and healthcare provider sectors, which can be affected by a downturn in the economy and changes in reimbursement policies. This credit risk is mitigated by the size and diversity of the customer base as well as its geographic dispersion. We estimate the receivables for which we do not expect full collection based on historical collection rates and ongoing evaluations of the creditworthiness of our customers. An allowance is recorded in our consolidated financial statements for these estimated amounts. |
Financing Receivables | Financing Receivables: We assess and monitor credit risk associated with financing receivables, primarily notes receivables, through regular review of our collection experience in determining our allowance for loan losses. On an ongoing basis, we also evaluate credit quality of our financing receivables utilizing aging of receivables and write-offs, as well as considering existing economic conditions, to determine if an allowance is required. Financing receivables are derecognized if legal title to them has been transferred and all related risks and rewards incidental to ownership have passed to the buyer. |
Inventories | Inventories: Inventories consist of merchandise held for resale. Prior to 2018, we reported inventories at the lower of cost or market (“LCM”). Effective in the first quarter of 2018, we report inventories at the lower of cost or net realizable value, except for inventories determined using the last-in, first-out (“LIFO”) method. The majority of the cost of domestic inventories is determined using the LIFO method. The majority of the cost of inventories held in foreign locations is based on first-in, first-out method and weighted average purchase prices. Rebates, cash discounts, and other incentives received from vendors are recognized within cost of sales upon the sale of the related inventory. The LIFO method was used to value approximately 62% and 63% of our inventories at March 31, 2019 and 2018 . If we had used the moving average method of inventory valuation, inventories would have been approximately $696 million and $906 million higher than the amounts reported at March 31, 2019 and 2018 . These amounts are equivalent to our LIFO reserves. Our LIFO valuation amount includes both pharmaceutical and non-pharmaceutical products. We recognized LIFO credits of $210 million , $99 million and $7 million in 2019, 2018 and 2017 in cost of sales within our consolidated statements of operations. A LIFO charge is recognized when the net effect of price increases on pharmaceutical and non-pharmaceutical products held in inventory exceeds the impact of price declines, including the effect of branded pharmaceutical products that have lost market exclusivity. A LIFO credit is recognized when the net effect of price declines exceeds the impact of price increases on pharmaceutical and non-pharmaceutical products held in inventory. We believe that moving average inventory costing method provides a reasonable estimation of the current cost of replacing inventory (i.e., “market”). As such, our LIFO inventory is valued at the lower of LIFO cost or market. |
Shipping and Handling Costs | Shipping and Handling Costs: We include costs to pack and deliver inventory to our customers in selling, distribution and administrative expenses. |
Property, Plant and Equipment | Property, Plant and Equipment: We state our property, plant and equipment (“PPE”) at cost and depreciate them under the straight-line method at rates designed to distribute the cost of PPE over estimated service lives ranging from one to thirty years. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. |
Goodwill | Goodwill: Goodwill is tested for impairment on an annual basis in the fourth quarter or more frequently if indicators of potential impairment exist. Impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The goodwill testing requires us to compare the estimated fair value of a reporting unit to its carrying value. If the carrying value of the reporting unit is lower than its estimated fair value, no further evaluation is required. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded for that excess, limited to the total amount of goodwill allocated to that reporting unit. To estimate the fair value of our reporting units, we generally use a combination of the market approach and the income approach. Under the market approach, we estimate fair value by comparing the business to similar businesses or guideline companies whose securities are actively traded in public markets. Under the income approach, we use a discounted cash flow (“DCF”) model in which cash flows anticipated over future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an estimated expected rate of return. Other estimates inherent in both the market and income approaches include long-term growth rates, projected revenues, earnings and cash flow forecasts for the reporting units. In addition, we compare the aggregate of the reporting units’ fair values to the Company’s market capitalization as a further corroboration of the fair values. Goodwill testing requires a complex series of assumptions and judgments by management in projecting future operating results, selecting guideline companies for comparisons and assessing risks. The use of alternative assumptions and estimates could affect the fair values and change the impairment determinations. |
Intangible Assets | Intangible Assets: Currently all of our intangible assets are subject to amortization and are amortized based on the pattern of their economic consumption or on a straight-line basis over their estimated useful lives, ranging from one to 38 years. We review intangible assets for impairment at an asset group level whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated future undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset group over its estimated fair market value. |
Capitalized Software Held for Internal Use | Capitalized Software Held for Internal Use: We capitalize costs of software held for internal use during the application development stage of a project and amortize those costs over their estimated useful lives ranging from one to ten years. |
Insurance Programs | Insurance Programs: Under our insurance programs, we seek to obtain coverage for catastrophic exposures as well as those risks required to be insured by law or contract. It is our policy to retain a significant portion of certain losses primarily related to workers’ compensation and comprehensive general, product and vehicle liability. Provisions for losses expected under these programs are recorded based on our estimate of the aggregate liability for claims incurred as well as for claims incurred but not yet reported. Such estimates utilize certain actuarial assumptions followed in the insurance industry. |
Revenue Recognition | Revenue Recognition: Revenue is recognized when an entity satisfies a performance obligation by transferring control of a promised good or service to a customer in an amount that reflects the consideration to which the entity expects to be entitled for that good or service. Revenues generated from the distribution of pharmaceutical and medical products represent the majority of our revenues. We order product from the manufacturer, receive and carry the product at our central distribution facilities and deliver the product directly to our customers’ warehouses, hospitals or retail pharmacies. The distribution business primarily generates revenue from a contract related to a confirmed purchase order with a customer in a distribution arrangement. Revenue is recognized when control of goods is transferred to the customer which occurs upon our delivery to the customer or upon customer pick-up. We also earn revenues from a variety of other sources including our retail, services and technology businesses. Retail revenues are recognized at the point of sale. Service revenues, including technology service revenues, are recognized when services are rendered. Revenues derived from distribution and retail business at the point of sale, and revenues derived from services represent approximately 98% and 2% of total revenues for the year ended on March 31, 2019. Revenues are recorded gross when we are the principal in the transaction, have the ability to direct the use of the goods or services prior to transfer to a customer, are responsible for fulfilling the promise to our customer, have latitude in establishing prices, and control the relationship with the customer. We record our revenues net of sales taxes. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts and rebates using historical data. Sales returns from customers were approximately $2.9 billion in 2019 , and $3.1 billion in 2018 and 2017 . Assets for the right to recover products from customers and the associated refund liabilities for return allowances were not material as of March 31, 2019. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in selling, distribution and administrative expenses. We record deferred revenues when payments are received or due in advance of our performance. Deferred revenues are primarily from our services arrangements and are recognized as revenues over the periods when services are performed. We had no material contract assets, contract liabilities or deferred contract costs recorded on the consolidated balance sheets. We elected the practical expedient and generally expense costs to obtain a contract when incurred because the amortization period would have been one year or less. |
Supplier Incentives | Supplier Incentives: Fees for services and other incentives received from suppliers, relating to the purchase or distribution of inventory, are considered product discounts and are generally reported as a reduction to cost of sales. |
Supplier Reserves | Supplier Reserves: We establish reserves against amounts due from suppliers relating to various fees for services and price and rebate incentives, including deductions taken against payments otherwise due to them. These reserve estimates are established based on judgment after considering the status of current outstanding claims, historical experience with the suppliers, the specific incentive programs and any other pertinent information available. We evaluate the amounts due from suppliers on a continual basis and adjust the reserve estimates when appropriate based on changes in facts and circumstances. Adjustments to supplier reserves are generally included within cost of sales. The ultimate outcome of any outstanding claims may be different than our estimate. |
Income Taxes | Income Taxes: We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or the tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon effective settlement. Deferred taxes are not provided on undistributed earnings of our foreign operations that are considered to be permanently reinvested. |
Foreign Currency Translation | Foreign Currency Translation: The reporting currency of the Company and its subsidiaries is the U.S. dollar. Our foreign subsidiaries generally consider their local currency to be their functional currency. Foreign currency-denominated assets and liabilities of these foreign subsidiaries are translated into U.S. dollars at period-end exchange rates, while revenues and expenses are translated at average exchange rates during the corresponding period and stockholders’ equity accounts are primarily translated at historical exchange rates. Foreign currency translation adjustments are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. Realized gains and losses from currency exchange transactions are recorded in operating expenses in the consolidated statements of operations and were not material to our consolidated results of operations in 2019 , 2018 or 2017 . We release cumulative translation adjustments from stockholders’ equity into earnings as a gain or loss only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. We also release all or a pro rata portion of the cumulative translation adjustments into earnings upon the sale of an equity method investment that is a foreign entity. |
Derivative Financial Instruments | Derivative Financial Instruments: Derivative financial instruments are used principally in the management of foreign currency exchange and interest rate exposures and are recorded on the consolidated balance sheets at fair value. If a derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in earnings. We use foreign currency-denominated notes and cross-currency swaps to hedge a portion of our net investment in our foreign subsidiaries. We use cash flow hedges primarily to reduce the effects of foreign currency exchange rate risk related to intercompany loans denominated in non-functional currencies. If the financial instrument is designated as a cash flow hedge or net investment hedge, the effective portions of changes in the fair value of the derivative are included in other comprehensive income or loss in the consolidated statements of comprehensive income, and the cumulative effect is included in the stockholders’ equity section of the consolidated balance sheets. The cumulative changes in fair value are reclassified to the same line as the hedged item in the consolidated statements of operations when the hedged item affects earnings. We evaluate hedge effectiveness at inception and on an ongoing basis, and ineffective portions of changes in the fair value of cash flow hedges and net investment hedges are recognized in earnings following the date when ineffectiveness was identified. In the fourth quarter of 2018, we adopted amended guidance for derivatives and hedging which eliminates the existing requirement to recognize periodic hedge ineffectiveness in earnings for cash flow hedges and net investment hedges that are highly effective. The adoption had no material impact on our financial statements as there was no ineffectiveness recognized on our cash flow hedges or net investment hedges prior to adoption. Derivative instruments not designated as hedges are marked-to-market at the end of each accounting period with the change included in earnings. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of two components, net income and other comprehensive income. Other comprehensive income refers to revenue, expenses and gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from earnings. Our other comprehensive income primarily consists of foreign currency translation adjustments from those subsidiaries where the local currency is the functional currency including gains and losses on net investment hedges, unrealized gains and losses on cash flow hedges, as well as unrealized gains and losses on retirement-related benefit plans. |
Noncontrolling Interests and Redeemable Noncontrolling Interests | Noncontrolling Interests and Redeemable Noncontrolling Interests: Noncontrolling interests represent the portion of profit or loss, net assets and comprehensive income that is not allocable to McKesson Corporation. Net income attributable to noncontrolling interests included recurring compensation that McKesson is obligated to pay to the noncontrolling shareholders of McKesson Europe AG (“McKesson Europe”), formerly known as Celesio AG, under the domination and profit and loss transfer agreement. Net income attributable to noncontrolling interests also included third-party equity interests in our consolidated entities including Vantage Oncology Holdings, LLC (“Vantage”) and ClarusONE Sourcing Services LLP (“ClarusONE”), which was established between McKesson and Walmart, Inc in 2017. Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests. Redeemable noncontrolling interests are presented outside of stockholders’ equity on our consolidated balance sheets. Refer to Financial Note 11, “Redeemable Noncontrolling Interests and Noncontrolling Interests,” for more information. |
Share-Based Compensation | Share-Based Compensation: We account for all share-based compensation transactions at fair value. The share-based compensation expense, for the portion of the awards that is ultimately expected to vest, is recognized on a straight-line basis over the requisite service period. The share-based compensation expense recognized has been classified in the consolidated statements of operations in the same manner as cash compensation paid to our employees. |
Loss Contingencies | Loss Contingencies: We are subject to various claims, including claims with customers and vendors, pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be reevaluated at least quarterly to determine both the likelihood of potential loss and whether it is possible to reasonably estimate the loss or a range of possible loss. When a material loss is reasonably possible or probable but a reasonable estimate cannot be made, disclosure of the proceeding is provided. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or a range of the loss can be made. As discussed above, development of a meaningful estimate of loss or a range of potential loss is complex when the outcome is directly dependent on negotiations with or decisions by third parties, such as regulatory agencies, the court system and other interested parties. |
Restructuring Charges | Restructuring Charges : Employee severance costs are generally recognized when payments are probable and amounts are reasonably estimable. Costs related to contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. |
Business Combinations | Business Combinations: We account for acquired businesses using the acquisition method of accounting, which requires that once control of a business is obtained, 100% of the assets acquired and liabilities assumed, including amounts attributable to noncontrolling interests, be recorded at the date of acquisition at their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Acquisition-related expenses including transaction and integration costs are expensed as incurred. Several valuation methods may be used to determine the fair value of assets acquired and liabilities assumed. For intangible assets, we typically use a method that is a form or variation of the income approach. Income approach methods start with a forecast of all of the expected future net cash flows for each asset. These cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. Some of the more significant estimates and assumptions inherent in income approach methods include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows and the assessment of the asset’s life cycle and the competitive trends impacting the asset, including consideration of any technical, legal, regulatory, or economic barriers to entry. Determining the useful life of an intangible asset also requires judgment as different types of intangible assets will have different useful lives and certain assets may even be considered to have indefinite useful lives. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Revenue Recognition: In the first quarter of 2019, we adopted amended guidance for revenue recognition using the modified retrospective method and applied the amended guidance to those contracts which were not completed as of April 1, 2018. The adoption of this amended guidance did not have a material impact on our consolidated financial statements. Our equity method investee, Change Healthcare, is required to adopt the amended guidance in our first quarter of 2020. The adoption of this amended guidance by Change Healthcare is not expected to have a material effect on our consolidated financial statements. We elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed and (iii) contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. Share-Based Payments: In the first quarter of 2019, we prospectively adopted amended guidance for employee share-based payment awards. This amendment provides guidance on which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the amended guidance, we are required to account for the effects of a modification of the fair value, the vesting conditions or the classification (as an equity instrument or a liability instrument) of the modified award from that of the original award immediately before the modification. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Compensation - Retirement Benefits : In the first quarter of 2019, we retrospectively adopted amended guidance which requires us to report the service cost component of defined benefit pension plans and other postretirement plans in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net benefit costs are required to be presented in the statements of operations separately from the service cost component outside of operating income. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. This amended guidance only resulted in a change in presentation of other components of net benefit costs on our consolidated statement of operations (a reclassification from operating income to other income, net). Derecognition of Nonfinancial Assets: In the first quarter of 2019, we adopted on a modified retrospective basis amended guidance that defines the term “in substance nonfinancial asset” as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the asset that is promised is concentrated in nonfinancial assets. The scope of this amendment includes nonfinancial assets transferred within a legal entity including a parent entity’s transfer of nonfinancial assets by transferring ownership interests in consolidated subsidiaries. The amendment excludes all businesses and nonprofit activities from its scope and therefore all entities, with limited exceptions, are required to account for the derecognition of a business or nonprofit activity in accordance with the consolidation guidance once this amended guidance becomes effective. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Business Combinations: In the first quarter of 2019, we prospectively adopted amended guidance that clarifies the definition of a business to assist entities in evaluating whether transactions should be accounted for as acquisitions of assets or businesses. The amended guidance provides a practical screen to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amended guidance requires that to be considered a business, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Restricted Cash: In the first quarter of 2019, we retrospectively adopted amended guidance that requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. Transfers between cash and cash equivalents and restricted cash or restricted cash equivalents are not reported as cash flow activities in the statement of cash flows. Our restricted cash balances at March 31, 2019 and 2018 were not material. The adoption of this amended guidance had no effect on our consolidated statements of operations, comprehensive income or our balance sheets. This amended guidance resulted in a change in presentation of restricted cash on our consolidated statement of cash flows. Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In the first quarter of 2019, we adopted on a modified retrospective basis amended guidance that requires entities to recognize income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Upon adoption of this amended guidance, we recorded $ 152 million of deferred tax assets with a corresponding cumulative-effect increase to the beginning balance of retained earnings in our consolidated financial statements for the tax consequences relating to an intra-entity transfer of certain software in December 2016. Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments: In the first quarter of 2019, we retrospectively adopted amended guidance that provides clarification on cash flow classification related to eight specific issues including contingent consideration payments made after a business combination and distributions received from equity method investees. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Financial Instruments: In the first quarter of 2019, we adopted amended guidance that requires investments in equity securities, excluding equity method investments or investees that are consolidated, to be measured at fair value with changes in fair value recognized in net income and enhanced disclosures about those investments. The amended guidance also simplifies the impairment assessments of equity investments without readily determinable fair value. The adoption of this amended guidance did not have a material effect on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Collaborative Arrangements: In November 2018, amended guidance was issued which clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under revenue recognition guidance when the counterparty is a customer. The amended guidance is effective for us in the first quarter of 2021 on a retrospective basis with a cumulative-effect adjustment to beginning retained earnings. We may elect to apply this amended guidance retrospectively either to all contracts or only to contracts that are not completed at the date of initial adoption. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Derivatives and Hedging: In October 2018, amended guidance was issued which allowed for the inclusion of the Secured Overnight Financing Rate Overnight Index Swap Rate as a benchmark interest rate for hedge accounting purposes. The amended guidance is effective for us on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after the first quarter of 2020. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material impact on our consolidated financial statements. Disclosure Update and Simplification: In August 2018, the Securities and Exchange Commission (“SEC”) issued a final rule to simplify certain disclosure requirements. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. In August and September 2018, further amendments were issued to provide implementation and transition guidance on adoption of this SEC rule. The amended guidance is effective for us commencing in the first quarter of 2020. We do not expect the adoption of this amended guidance to have a material effect on our consolidated statements of operations, comprehensive income, balance sheets or cash flows. This amended guidance will result in changes in disclosures. Intangibles - Goodwill and Other - Internal-Use Software: In August 2018, amended guidance was issued for a customer’s accounting for implementation and other upfront costs incurred in a cloud computing arrangement that is a service contract. The amended guidance aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs for a cloud computing arrangement that has a software license. The amended guidance is effective for us either on a retrospective or prospective basis commencing in the first quarter of 2021. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Compensation - Retirement Benefits - Defined Benefit Plans: In August 2018, amended guidance was issued for defined benefit pension or other postretirement plans. The amended guidance requires us to disclose the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates, and an explanation of reasons for significant gains and losses related to changes in the benefit obligation for the period. The amended guidance also requires us to remove disclosures on the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit costs over the next fiscal year. The amended guidance is effective for us on a retrospective basis commencing in the fiscal year ended March 31, 2021. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated statements of operations, comprehensive income, balance sheets or cash flows. This amended guidance will result in changes in disclosures. Fair Value Measurement: In August 2018, amended guidance was issued to remove, modify and add disclosure requirements on the fair value measurements. The amended guidance removes disclosure requirements for transfers between Level 1 and Level 2 measurements and valuation processes for Level 3 measurements but adds new disclosure requirements including changes in unrealized gains or losses in other comprehensive income related to recurring Level 3 measurements. The amended guidance is effective for us commencing in the first quarter of 2021. Certain requirements will be applied prospectively while other changes will be applied retrospectively upon the effective date. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated statements of operations, comprehensive income, balance sheets or cash flows. This amended guidance will result in changes in disclosures. Accumulated Other Comprehensive Income: In February 2018, amended guidance was issued to address a narrow-scope financial reporting issue that arose as a consequence of the 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”). Existing guidance requires that deferred tax liabilities and assets be adjusted for a change in tax laws with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income rather than in net income, such as amounts related to benefit plans and hedging activity. As a result, the tax effects of items within accumulated other comprehensive income do not reflect the appropriate tax rate. These differences are referred to as stranded tax effects. The amended guidance allows for a reclassification of only those amounts related to the 2017 Tax Act to retained earnings thereby eliminating the stranded tax effects. The amended guidance also requires certain disclosures about stranded tax effects. The amended guidance is effective for us commencing in the first quarter of 2020 on a prospective or retrospective basis. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Premium Amortization of Purchased Callable Debt Securities: In March 2017, amended guidance was issued to shorten the amortization period for certain callable debt securities held at a premium. The amended guidance requires the premium of callable debt securities to be amortized to the earliest call date but does not require an accounting change for securities held at a discount as they would still be amortized to maturity. The amended guidance is effective for us on a modified retrospective basis commencing in the first quarter of 2020. Early adoption is permitted. We do not expect the adoption of this amended guidance to have a material effect on our consolidated financial statements. Financial Instruments - Credit Losses: In June 2016, amended guidance was issued, which will change the impairment model for most financial assets and require additional disclosures. The amended guidance requires financial assets that are measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of financial assets. The amended guidance also requires us to consider historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount in estimating credit losses. The amended guidance becomes effective for us commencing in the first quarter of 2021 and will be applied through a cumulative-effect adjustment to the beginning retained earnings in the year of adoption. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. Leases: In February 2016, amended guidance was issued for lease arrangements. The amended guidance requires lessees to recognize lease liabilities and right-of-use (“ROU”) assets on the balance sheet for all leases and to provide enhanced disclosures on key information of leasing arrangements. The amended guidance is effective for us commencing in the first quarter of 2020. Early adoption is permitted. We will adopt the amended guidance on a modified retrospective basis through a cumulative-effect adjustment to the beginning retained earnings in the period of adoption. We will elect the transition package of practical expedients provided within the amended guidance, which eliminates the requirements to reassess lease identification, lease classification and initial direct costs for leases commenced before the effective date. The Company will also elect not to separate lease from non-lease components and to exclude short-term leases from its consolidated balance sheets. The adoption of the amended guidance is expected to have a material impact on our consolidated balance sheet from the recognition of lease assets and liabilities. While we continue to assess all the impacts of adoption, we anticipate recognizing operating lease liabilities in excess of $2.0 billion based on the present value of the remaining minimum lease commitments using our incremental borrowing rate as of the effective date under the full lease term. We also expect to record corresponding ROU assets based upon the operating lease liabilities adjusted for prepaid and deferred rents, unamortized initial direct costs, liabilities associated with lease termination costs and impairments of ROU assets recognized to opening retained earnings at the effective date. Additionally, existing deferred gain on our sale-leaseback transaction will be derecognized from the consolidated balance sheet and recognized to opening retained earnings at the effective date. While we have not completed our evaluation of impairments of ROU assets upon adoption, we anticipate that the historical impairments of certain retail pharmacy stores in the historical periods prior to adoption will result in impairments of retail store ROU assets recognized through retained earnings upon adoption. We are finalizing the impact that the amended lease guidance will have on our consolidated financial statements, systems, processes and internal controls. |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of details for charges recorded | Restructuring charges for the fiscal 2019 initiatives for the year ended March 31, 2019 consisted of the following: Year Ended March 31, 2019 (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Corporate Total Severance and employee-related costs, net $ 50 $ 33 $ 19 $ 16 $ 36 $ 154 Exit and other-related costs (1) 7 3 20 57 57 144 Asset impairments and accelerated depreciation 6 5 3 18 1 33 Total $ 63 $ 41 $ 42 $ 91 $ 94 $ 331 (1) Exit and other-related costs primarily include lease and other contract exit costs associated with closures of facilities and retail pharmacy stores as well as project consulting fees. The following table summarizes the activity related to the restructuring liabilities associated with the fiscal 2019 initiatives for the year ended March 31, 2019: (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Corporate Total Balance, March 31, 2018 $ — $ — $ — $ — $ — $ — Restructuring charges recognized 63 41 42 91 94 331 Non-cash charges (6 ) (5 ) (3 ) (18 ) (1 ) (33 ) Cash payments (8 ) (5 ) (23 ) (52 ) (53 ) (141 ) Other (18 ) 7 (1 ) 8 (3 ) (7 ) Balance, March 31, 2019 (1) $ 31 $ 38 $ 15 $ 29 $ 37 $ 150 (1) As of March 31, 2019, the total reserve balance was $150 million of which $117 million was recorded in other accrued liabilities and $33 million was recorded in other noncurrent liabilities. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Fair Values Recognized of Assets and Liabilities Assumed | The following table summarizes the preliminary recording of the fair value of the assets acquired and liabilities assumed for this acquisition as of the acquisition date. (In millions) Amounts Recognized as of Acquisition Date (Provisional As Adjusted) Receivables $ 113 Other current assets, net of cash and cash equivalents acquired 72 Goodwill 381 Intangible assets 326 Other long-term assets 55 Current liabilities (72 ) Other long-term liabilities (91 ) Net assets acquired, net of cash and cash equivalents $ 784 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of components of share-based compensation expense and related tax benefits | The components of share-based compensation expense and related tax benefits are as follows: Years Ended March 31, (In millions) 2019 2018 2017 Restricted stock unit awards (1) $ 75 $ 46 $ 79 Stock options 12 14 24 Employee stock purchase plan 8 9 12 Share-based compensation expense 95 69 115 Tax benefit for share-based compensation expense (2) (12 ) (28 ) (92 ) Share-based compensation expense, net of tax $ 83 $ 41 $ 23 (1) Includes compensation expense recognized for RSUs, PeRSUs and PSUs. (2) Income tax benefit is computed using the tax rates of applicable tax jurisdictions. Additionally, a portion of pre-tax compensation expense is not tax-deductible. Income tax expense for 2019 included discrete income tax expense of $4 million , 2018 and 2017 included discrete income tax benefits of $8 million and $54 million related to the adoption of the amended accounting guidance on share-based compensation. |
Schedule of weighted-average assumptions used to estimate the fair value | Weighted-average assumptions used to estimate the fair value of employee stock options were as follows: Years Ended March 31, 2019 2018 2017 Expected stock price volatility 26% 25% 21% Expected dividend yield 0.9% 0.8% 0.7% Risk-free interest rate 2.8% 1.7% 1.1% Expected life (in years) 4.6 4.5 4 |
Summary of options outstanding | The following is a summary of stock options outstanding at March 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Outstanding at Year End (In millions) Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Exercisable at Year End (In millions) Weighted- Average Exercise Price $ 87.24 – $ 162.55 1 4 $ 133.54 1 $ 119.65 162.56 – 239.93 2 3 197.98 1 199.08 3 2 |
Summary of stock option activity | The following table summarizes stock option activity during 2019 : (In millions, except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (2) Outstanding, March 31, 2018 3 $ 161.27 4 $ 36 Granted 1 141.93 Cancelled — 167.37 Exercised (1) 86.65 Outstanding, March 31, 2019 3 $ 166.72 3 $ 4 Vested and expected to vest (1) 3 $ 166.88 3 $ 3 Vested and exercisable, March 31, 2019 2 167.27 2 4 (1) The number of options expected to vest takes into account an estimate of expected forfeitures. (2) The intrinsic value is calculated as the difference between the period-end market price of the Company’s common stock and the exercise price of “in-the-money” options. |
Summary of data related to stock option activity | The following table provides data related to stock option activity: Years Ended March 31, (In millions, except per share data) 2019 2018 2017 Weighted-average grant date fair value per stock option $ 34.98 $ 34.24 $ 32.19 Aggregate intrinsic value on exercise $ 16 $ 60 $ 97 Cash received upon exercise $ 29 $ 77 $ 54 Tax benefits realized related to exercise $ 4 $ 22 $ 38 Total fair value of stock options vested $ 16 $ 20 $ 18 Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax $ 15 $ 15 $ 21 Weighted-average period in years over which stock option compensation cost is expected to be recognized 2 2 2 |
Schedule of assumptions used to estimate fair value of PSUs | The weighted-average assumptions used in the Monte Carlo valuations are as follows: Years Ended March 31, 2019 2018 2017 Expected stock price volatility 31% 29% 23% Expected dividend yield 0.9% 0.8% 0.7% Risk-free interest rate 2.6% 1.5% 1.1% Expected life (in years) 3 3 3 |
Summary of restricted stock unit award activity | The following table summarizes activity for restricted stock unit awards (RSUs, PeRSUs, and PSUs) during 2019 : (In millions, except per share data) Shares Weighted- Average Grant Date Fair Value Per Share Nonvested, March 31, 2018 2 $ 176.74 Granted 1 143.94 Cancelled — 147.88 Vested (1) 210.30 Nonvested, March 31, 2019 2 $ 142.77 |
Schedule of data related to restricted stock unit award activity | The following table provides data related to restricted stock unit award activity: Years Ended March 31, (In millions) 2019 2018 2017 Total fair value of shares vested $ 59 $ 156 $ 109 Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax $ 119 $ 97 $ 99 Weighted-average period in years over which restricted stock unit award cost is expected to be recognized 2 2 2 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Schedule of other income, net | Years Ended March 31, (In millions) 2019 2018 2017 Interest income $ 39 $ 48 $ 29 Equity in earnings, net (1) 43 32 30 Gain from sale of equity investment (2) 56 43 — Other, net 44 7 18 Total $ 182 $ 130 $ 77 (1) Primarily recorded within our European Pharmaceutical Solutions segment. (2) Amount represented a pre-tax gain from the sale of an equity investment to a third party included in Other during 2019 and in our U.S. Pharmaceutical and Specialty Solutions segment during 2018. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income from continuing operations before income taxes | Years Ended March 31, (In millions) 2019 2018 2017 Income from continuing operations before income taxes U.S. $ 1,512 $ 1,175 $ 5,772 Foreign (902 ) (936 ) 1,119 Total income from continuing operations before income taxes $ 610 $ 239 $ 6,891 |
Schedule of income tax expense (benefit) related to continuing operations | Income tax expense (benefit) related to continuing operations consists of the following: Years Ended March 31, (In millions) 2019 2018 2017 Current Federal $ (20 ) $ 577 $ 524 State 35 33 86 Foreign 152 205 122 Total current 167 815 732 Deferred Federal 223 (767 ) 767 State 44 17 164 Foreign (78 ) (118 ) (49 ) Total deferred 189 (868 ) 882 Income tax expense (benefit) $ 356 $ (53 ) $ 1,614 |
Schedule of reconciliation between effective tax rate on income from continuing operations and statutory tax rate | The reconciliation of income tax expense (benefit) and the amount computed by applying the statutory federal income tax rate of 21% for 2019, 31.6% for 2018 and 35% for 2017 to the income before income taxes is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Income tax expense at federal statutory rate $ 128 $ 75 $ 2,411 State income taxes net of federal tax benefit 70 50 153 Tax effect of foreign operations (86 ) (146 ) (326 ) Unrecognized tax benefits and settlements 20 454 57 Non-deductible goodwill 357 585 106 Share-based compensation 4 (8 ) (54 ) Net tax benefit on intellectual property transfer (42 ) (178 ) (137 ) Rate differential on gain from Change Healthcare Net Asset Exchange — — (587 ) Impact of change in U.S. tax rate on temporary differences (81 ) (1,324 ) — Transition tax on foreign earnings (5 ) 457 — Other, net (1) (9 ) (18 ) (9 ) Income tax expense (benefit) $ 356 $ (53 ) $ 1,614 (1) Our effective tax rates were impacted by other favorable U.S. federal permanent differences including research and development credits of $7 million , $11 million and $14 million in 2019, 2018 and 2017. |
Schedule of deferred tax balances | Deferred tax balances consisted of the following: March 31, (In millions) 2019 2018 Assets Receivable allowances $ 70 $ 58 Compensation and benefit related accruals 377 345 Net operating loss and credit carryforwards 885 811 Long-term contractual obligations — 59 Other 216 279 Subtotal 1,548 1,552 Less: valuation allowance (870 ) (751 ) Total assets 678 801 Liabilities Inventory valuation and other assets (2,016 ) (1,869 ) Fixed assets and systems development costs (170 ) (158 ) Intangibles (513 ) (644 ) Change Healthcare Equity Investment (885 ) (814 ) Other (34 ) (71 ) Total liabilities (3,618 ) (3,556 ) Net deferred tax liability $ (2,940 ) $ (2,755 ) Long-term deferred tax asset $ 58 $ 49 Long-term deferred tax liability (2,998 ) (2,804 ) Net deferred tax liability $ (2,940 ) $ (2,755 ) |
Schedule of gross unrecognized tax benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the last three years: Years Ended March 31, (In millions) 2019 2018 2017 Unrecognized tax benefits at beginning of period $ 1,183 $ 486 $ 555 Additions based on tax positions related to prior years 78 47 7 Reductions based on tax positions related to prior years (234 ) (124 ) (67 ) Additions based on tax positions related to current year 68 778 105 Reductions based on settlements (13 ) (7 ) (113 ) Reductions based on the lapse of the applicable statutes of limitations (25 ) — — Exchange rate fluctuations (5 ) 3 (1 ) Unrecognized tax benefits at end of period $ 1,052 $ 1,183 $ 486 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests and Noncontrolling Interests (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Schedule of Changes in Noncontrolling Interest | Changes in redeemable noncontrolling interests and noncontrolling interests for the years ended March 31, 2019 and 2018 were as follows: (In millions) Noncontrolling Interests Redeemable Noncontrolling Interests Balance, March 31, 2017 $ 178 $ 1,327 Net income attributable to noncontrolling interests 187 43 Other comprehensive income — 185 Reclassification of recurring compensation to other accrued liabilities — (43 ) Payments to noncontrolling interests (98 ) — Exercises of Put Right — (53 ) Other (14 ) — Balance, March 31, 2018 $ 253 $ 1,459 Net income attributable to noncontrolling interests 176 45 Other comprehensive income — (66 ) Reclassification of recurring compensation to other accrued liabilities — (45 ) Payments to noncontrolling interests (184 ) — Other (52 ) — Balance, March 31, 2019 $ 193 $ 1,393 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | The computations for basic and diluted earnings per common share are as follows: Years Ended March 31, (In millions, except per share amounts) 2019 2018 2017 Income from continuing operations $ 254 $ 292 $ 5,277 Net income attributable to noncontrolling interests (221 ) (230 ) (83 ) Income from continuing operations attributable to McKesson 33 62 5,194 Income (Loss) from discontinued operations, net of tax 1 5 (124 ) Net income attributable to McKesson $ 34 $ 67 $ 5,070 Weighted average common shares outstanding: Basic 196 208 221 Effect of dilutive securities: Options to purchase common stock — — 1 Restricted stock units 1 1 1 Diluted 197 209 223 Earnings (Loss) per common share attributable to McKesson: (1) Diluted Continuing operations $ 0.17 $ 0.30 $ 23.28 Discontinued operations — 0.02 (0.55 ) Total $ 0.17 $ 0.32 $ 22.73 Basic Continuing operations $ 0.17 $ 0.30 $ 23.50 Discontinued operations — 0.02 (0.55 ) Total $ 0.17 $ 0.32 $ 22.95 (1) Certain computations may reflect rounding adjustments. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Receivables, Net, Current [Abstract] | |
Schedule of receivables | March 31, (In millions) 2019 2018 Customer accounts $ 14,941 $ 14,349 Other 3,584 3,578 Total 18,525 17,927 Allowances (279 ) (216 ) Net $ 18,246 $ 17,711 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property, plant and equipment, net | March 31, (In millions) 2019 2018 Land $ 172 $ 187 Building, machinery, equipment and other 4,154 3,746 Total property, plant and equipment 4,326 3,933 Accumulated depreciation (1,778 ) (1,469 ) Property, plant and equipment, net $ 2,548 $ 2,464 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows: (In millions) U.S. Pharmaceutical and Specialty Solutions European Pharmaceutical Solutions Medical-Surgical Solutions Other Total Balance, March 31, 2017 $ 3,391 $ 2,789 $ 2,069 $ 2,337 $ 10,586 Goodwill acquired 657 26 — 1,024 1,707 Acquisition accounting, transfers and other adjustments 4 — 1 34 39 Goodwill impairment (1) — (1,283 ) — (455 ) (1,738 ) Goodwill disposed (2) (37 ) (11 ) — (124 ) (172 ) Amount reclassified to assets held for sale — (2 ) — — (2 ) Foreign currency translation adjustments, net 95 331 — 78 504 Balance, March 31, 2018 4,110 1,850 2,070 2,894 10,924 Goodwill acquired 17 52 360 13 442 Goodwill impairment (1) — (1,776 ) — (21 ) (1,797 ) Acquisition accounting, transfers and other adjustments 13 (5 ) 21 6 35 Foreign currency translation adjustments, net (62 ) (121 ) — (63 ) (246 ) Balance, March 31, 2019 $ 4,078 $ — $ 2,451 $ 2,829 $ 9,358 (1) In 2019 and 2018, goodwill impairment charges from our international businesses were translated at average exchange rates during the corresponding period and accumulated goodwill impairment losses described below were translated at year-end exchange rates. (2) 2018 Other amount primarily represents goodwill disposal associated with the sale of our EIS business. Refer to Financial Note 6, “Divestitures” for more information. |
Schedule of information regarding intangible assets | Information regarding intangible assets is as follows: March 31, 2019 March 31, 2018 (Dollars in millions) Weighted Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships 12 $ 3,818 $ (1,801 ) $ 2,017 $ 3,619 $ (1,550 ) $ 2,069 Service agreements 11 1,017 (430 ) 587 1,037 (386 ) 651 Pharmacy licenses 26 513 (209 ) 304 684 (196 ) 488 Trademarks and trade names 13 887 (232 ) 655 932 (187 ) 745 Technology 4 141 (94 ) 47 147 (84 ) 63 Other 5 288 (209 ) 79 262 (176 ) 86 Total $ 6,664 $ (2,975 ) $ 3,689 $ 6,681 $ (2,579 ) $ 4,102 |
Debt and Financing Activities (
Debt and Financing Activities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following: March 31, (In millions) 2019 2018 U.S. Dollar notes (1) (2) 2.28% Notes due March 15, 2019 $ — $ 1,100 3.65% Notes due November 30, 2020 700 — 4.75% Notes due March 1, 2021 323 323 2.70% Notes due December 15, 2022 400 400 2.85% Notes due March 15, 2023 400 400 3.80% Notes due March 15, 2024 1,100 1,100 7.65% Debentures due March 1, 2027 167 167 3.95% Notes due February 16, 2028 600 600 4.75% Notes due May 30, 2029 400 — 6.00% Notes due March 1, 2041 282 282 4.88% Notes due March 15, 2044 411 411 Foreign currency notes (1) (3) Floating Rate Euro Notes due February 12, 2020 (4) 280 337 0.63% Euro Notes due August 17, 2021 673 695 1.50% Euro Notes due November 17, 2025 670 691 1.63% Euro Notes due October 30, 2026 560 669 3.13% Sterling Notes due February 17, 2029 586 630 Lease and other obligations 43 75 Total debt 7,595 7,880 Less: Current portion 330 1,129 Total long-term debt $ 7,265 $ 6,751 (1) These notes are unsecured and unsubordinated obligations of the Company. (2) Interest on these notes is payable semi-annually. (3) Interest on these foreign bonds and notes is payable annually, except the 2020 Floating Rate Euro Notes. (4) Interest on these notes is payable quarterly. |
Pension Benefits (Tables)
Pension Benefits (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic expense for pension plans | The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the year $ — $ 3 $ 5 $ 15 $ 15 $ 15 Interest cost on projected benefit obligation 14 14 13 21 22 23 Expected return on assets (16 ) (19 ) (15 ) (23 ) (26 ) (26 ) Amortization of unrecognized actuarial loss and prior service costs 5 6 11 4 5 4 Curtailment/settlement loss (gain) 4 2 — 1 1 (2 ) Net periodic pension expense $ 7 $ 6 $ 14 $ 18 $ 17 $ 14 The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 2 Amortization of unrecognized actuarial gain and prior service credit (5 ) (6 ) (1 ) Net periodic postretirement (credit) expense $ (2 ) $ (3 ) $ 2 |
Schedule of changes in benefit obligations and plan assets for pension plans | Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2019 2018 Change in benefit obligations Benefit obligation at beginning of period (1) $ 485 $ 513 $ 1,035 $ 943 Service cost — 3 15 15 Interest cost 14 14 21 22 Actuarial loss (gain) 4 1 35 (15 ) Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Amendments — — — (2 ) Acquisitions — — 1 — Foreign exchange impact and other — — (80 ) 115 Benefit obligation at end of period (1) $ 439 $ 485 $ 990 $ 1,035 Change in plan assets Fair value of plan assets at beginning of period $ 335 $ 293 $ 687 $ 623 Actual return on plan assets 12 35 18 21 Employer and participant contributions 39 53 23 17 Benefits paid (64 ) (44 ) (36 ) (42 ) Expenses paid — (2 ) (1 ) (1 ) Acquisitions — — — — Foreign exchange impact and other — — (49 ) 69 Fair value of plan assets at end of period $ 322 $ 335 $ 642 $ 687 Funded status at end of period $ (117 ) $ (150 ) $ (348 ) $ (348 ) Amounts recognized on the balance sheet Assets $ 7 $ 10 $ 20 $ 19 Current liabilities (115 ) (39 ) (13 ) (7 ) Long-term liabilities (9 ) (121 ) (355 ) (360 ) Total $ (117 ) $ (150 ) $ (348 ) $ (348 ) (1) The benefit obligation is the projected benefit obligation. |
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans | The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans, including accumulated benefit obligation in excess of plan assets. U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Projected benefit obligation $ 439 $ 485 $ 990 $ 1,035 Accumulated benefit obligation 439 485 949 990 Fair value of plan assets 322 335 642 687 |
Schedule of defined benefit plan amounts recognized in other comprehensive income (loss) | Amounts recognized in accumulated other comprehensive income (pre-tax) consist of: U.S. Plans Non-U.S. Plans March 31, March 31, (In millions) 2019 2018 2019 2018 Net actuarial loss $ 133 $ 134 $ 186 $ 162 Prior service credit — — (4 ) (5 ) Total $ 133 $ 134 $ 182 $ 157 |
Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income | Other changes in accumulated other comprehensive income (pre-tax) were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Net actuarial loss (gain) $ 8 $ (15 ) $ (17 ) $ 42 $ (11 ) $ 47 Prior service credit — — — — (2 ) — Amortization of: Net actuarial loss (9 ) (8 ) (11 ) (5 ) (6 ) (4 ) Prior service credit (cost) — — — — — 2 Foreign exchange impact and other — — — (12 ) 19 (10 ) Total recognized in other comprehensive loss (income) $ (1 ) $ (23 ) $ (28 ) $ 25 $ — $ 35 |
Schedule of weighted-average assumptions used to estimate net periodic pension expense and actuarial present value of benefit obligations | Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, 2019 2018 2017 2019 2018 2017 Net periodic pension expense Discount rates 3.83 % 3.55 % 3.40 % 2.35 % 2.34 % 2.72 % Rate of increase in compensation N/A (1) 4.00 4.00 3.13 2.72 2.76 Expected long-term rate of return on plan assets 5.25 6.25 6.25 3.71 4.03 4.51 Benefit obligation Discount rates 3.65 % 3.69 % 3.39 % 2.13 % 2.35 % 2.35 % Rate of increase in compensation N/A (1) N/A (1) 4.00 3.18 2.59 3.18 (1) This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants. |
Summary of pension plan assets using fair value hierarchy by asset class | The following tables represent our pension plan assets as of March 31, 2019 and 2018 , using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. U.S. Plans Non-U.S. Plans March 31, 2019 March 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11 $ — $ — $ 11 $ 6 $ — $ — $ 6 Equity securities: Common and preferred stock — — — — — — — — Equity commingled funds — — — — 62 82 — 144 Fixed income securities: Government securities — 33 — 33 4 135 — 139 Corporate bonds — 273 — 273 8 18 — 26 Mortgage-backed securities — — — — — — — — Asset-backed securities and other — 5 — 5 — — — — Fixed income commingled funds — — — — 125 110 6 241 Other: Real estate funds — — — — 2 3 — 5 Other — — — — 21 — 3 24 Total $ 11 $ 311 $ — $ 322 $ 228 $ 348 $ 9 $ 585 Assets held at NAV practical expedient (1) Equity commingled funds — 8 Fixed income commingled funds — — Real estate funds — — Other — 49 Total plan assets $ 322 $ 642 U.S. Plans Non-U.S. Plans March 31, 2018 March 31, 2018 (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 39 $ — $ — $ 39 $ 3 $ — $ — $ 3 Equity securities: Common and preferred stock 7 — — 7 — — — — Equity commingled funds — — — — 41 94 — 135 Fixed income securities: Government securities — 85 — 85 5 113 — 118 Corporate bonds — 58 — 58 114 136 — 250 Mortgage-backed securities — 7 — 7 — — — — Asset-backed securities and other — 21 — 21 — — — — Fixed income commingled funds — — — — — 64 — 64 Other: Real estate funds — — — — 2 — — 2 Other — — — — 22 — 4 26 Total $ 46 $ 171 $ — $ 217 $ 187 $ 407 $ 4 $ 598 Assets held at NAV practical expedient (1) Equity commingled funds 54 27 Fixed income commingled funds 53 — Real estate funds 11 — Other — 62 Total plan assets $ 335 $ 687 (1) Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments. |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of net periodic (credit) expense for postretirement welfare benefits | The net periodic expense for our pension plans is as follows: U.S. Plans Non-U.S. Plans Years Ended March 31, Years Ended March 31, (In millions) 2019 2018 2017 2019 2018 2017 Service cost - benefits earned during the year $ — $ 3 $ 5 $ 15 $ 15 $ 15 Interest cost on projected benefit obligation 14 14 13 21 22 23 Expected return on assets (16 ) (19 ) (15 ) (23 ) (26 ) (26 ) Amortization of unrecognized actuarial loss and prior service costs 5 6 11 4 5 4 Curtailment/settlement loss (gain) 4 2 — 1 1 (2 ) Net periodic pension expense $ 7 $ 6 $ 14 $ 18 $ 17 $ 14 The net periodic (credit) expense for our postretirement welfare benefits is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Service cost - benefits earned during the year $ 1 $ 1 $ 1 Interest cost on accumulated benefit obligation 2 2 2 Amortization of unrecognized actuarial gain and prior service credit (5 ) (6 ) (1 ) Net periodic postretirement (credit) expense $ (2 ) $ (3 ) $ 2 |
Schedule of changes in benefit obligations for postretirement welfare plans | Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows: Years Ended March 31, (In millions) 2019 2018 Benefit obligation at beginning of period $ 78 $ 82 Service cost 1 1 Interest cost 2 2 Actuarial gain (3 ) (1 ) Benefit payments (5 ) (6 ) Benefit obligation at end of period $ 73 $ 78 |
Hedging Activities (Tables)
Hedging Activities (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information regarding fair value of derivatives on a gross basis | Information regarding the fair value of derivatives on a gross basis is as follows: Balance Sheet Caption March 31, 2019 March 31, 2018 Fair Value of Derivative U.S. Dollar Notional Fair Value of Derivative U.S. Dollar Notional (In millions) Asset Liability Asset Liability Derivatives designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ 17 $ — $ 81 $ 15 $ — $ 81 Foreign exchange contracts (non-current) Other Noncurrent Assets — — — 14 — 81 Cross-currency swaps (current) Prepaid expenses and other/Other Accrued Liabilities — 18 — — 7 504 Cross-currency swaps (non-current) Other Noncurrent Assets/Liabilities 91 33 5,283 — 222 3,508 Total $ 108 $ 51 $ 29 $ 229 Derivatives not designated for hedge accounting Foreign exchange contracts (current) Prepaid expenses and other $ — $ — $ 14 $ — $ — $ 13 Foreign exchange contracts (current) Other accrued liabilities — — 14 — — 16 Total $ — $ — $ — $ — |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Leases, Operating [Abstract] | |
Schedule of future minimum rental payments for operating leases | At March 31, 2019 , future minimum lease payments required under operating leases that have initial or remaining noncancelable lease terms in excess of one year for years ending March 31 are: (In millions) Noncancelable Operating Leases 2020 $ 454 2021 397 2022 343 2023 290 2024 236 Thereafter 936 Total minimum lease payments (1) (2) $ 2,656 (1) Amount includes future minimum lease payments for the sale-leaseback transaction of $49 million . (2) Total minimum lease payments have not been reduced by minimum sublease income of $133 million due under future noncancelable subleases. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of shares repurchased over last three years | Information regarding the share repurchase activity over the last three years is as follows: Share Repurchases (1) (In millions, except price per share data) Total Number of Shares Purchased (2) (3) Average Price Paid Per Share Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs Balance, March 31, 2016 $ 996 Shares repurchase plans authorized October 2016 4,000 Shares repurchased 15.5 $ 141.16 (2,250 ) Balance, March 31, 2017 $ 2,746 Shares repurchased 10.5 $ 151.06 (1,650 ) Balance, March 31, 2018 $ 1,096 Shares repurchase plans authorized May 2018 4,000 Shares repurchased 13.5 $ 130.72 (1,627 ) Balance, March 31, 2019 $ 3,469 (1) This table does not include shares tendered to satisfy the exercise price in connection with cashless exercises of employee stock options or shares tendered to satisfy tax withholding obligations in connection with employee equity awards. (2) All of the shares purchased were part of the publicly announced programs. (3) The number of shares purchased reflects rounding adjustments. |
Schedule of comprehensive income (loss) | Information regarding other comprehensive income (loss) including noncontrolling interests and redeemable noncontrolling interests, net of tax, by component is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Foreign currency translation adjustments: (1) Foreign currency translation adjustments arising during period, net of income tax (expense) benefit of nil, nil and $1 (2) (3) $ (431 ) $ 804 $ (644 ) Reclassified to income statement, net of income tax expense of nil, nil and nil (4) — — 20 (431 ) 804 (624 ) Unrealized gains (losses) on net investment hedges (5) Unrealized gains (losses) on net investment hedges arising during period, net of income tax (expense) benefit of ($71), $95 and $5 241 (180 ) (8 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 241 (180 ) (8 ) 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), $9 and nil 24 (30 ) (19 ) Reclassified to income statement, net of income tax expense of nil, nil and nil — — — 24 (30 ) (19 ) Changes in retirement-related benefit plans: Net actuarial gain (loss) and prior service credit (cost) arising during the period, net of income tax (expense) benefit of $5, ($2) and ($4) (6) (51 ) 25 (20 ) Amortization of actuarial loss, prior service cost and transition obligation, net of income tax (expense) of nil, ($2) and ($4) (7) 9 5 9 Foreign currency translation adjustments and other, net of income tax expense of nil, nil and nil 10 (15 ) 3 Reclassified to income statement, net of income tax expense of nil, nil and nil — — — (32 ) 15 (8 ) Other Comprehensive Income (Loss), net of tax $ (198 ) $ 609 $ (659 ) (1) Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries McKesson Europe, into the Company’s reporting currency, U.S. dollars. (2) The 2019 net foreign currency translation losses of $431 million were primarily due to the weakening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2018 to March 31, 2019. The 2018 net foreign currency translation gains of $804 million were primarily due to the strengthening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from April 1, 2017 to March 31, 2018. The 2017 net foreign currency translation losses of $644 million were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2016 to March 31, 2017. (3) 2019 includes net foreign currency translation losses of $61 million and 2018 includes net foreign currency translation gains of $189 million attributable to noncontrolling and redeemable noncontrolling interests. (4) These net foreign currency losses were reclassified from accumulated other comprehensive income (loss) to discontinued operations within our consolidated statement of operations due to the sale of our Brazilian pharmaceutical distribution business. (5) 2019, 2018 and 2017 include foreign currency gains of $259 million and losses of $268 million and $13 million on the net investment hedges from the Euro and British pound sterling-denominated notes. 2019 and 2018 also include foreign currency gains of $53 million and losses of $7 million on the net investment hedges from the cross-currency swaps. (6) The net actuarial losses of $5 million and $4 million were attributable to noncontrolling and redeemable noncontrolling interests in 2019 and 2018. (7) Pre-tax amount was reclassified into cost of sales and operating expenses in the consolidated statements of operations. The related tax expense was reclassified into income tax expense in the consolidated statements of operations. |
Schedule of accumulated other comprehensive income (loss) | Information regarding changes in our accumulated other comprehensive income (loss) by component are as follows: Foreign Currency Translation Adjustments (In millions) Foreign Currency Translation Adjustments, Net of Tax Unrealized 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, 2017 $ (1,873 ) $ (8 ) $ (31 ) $ (229 ) $ (2,141 ) Other comprehensive income (loss) before reclassifications 804 (180 ) (30 ) 10 604 Amounts reclassified to earnings — — — 5 5 Other comprehensive income (loss) $ 804 $ (180 ) $ (30 ) $ 15 $ 609 Less: amounts attributable to noncontrolling and redeemable noncontrolling interests 189 — — (4 ) 185 Other comprehensive income (loss) attributable to McKesson $ 615 $ (180 ) $ (30 ) $ 19 $ 424 Balance at March 31, 2018 $ (1,258 ) $ (188 ) $ (61 ) $ (210 ) $ (1,717 ) Other comprehensive income (loss) before reclassifications (431 ) 241 24 (41 ) (207 ) Amounts reclassified to earnings and other — — — 9 9 Other comprehensive income (loss) $ (431 ) $ 241 $ 24 $ (32 ) $ (198 ) Less: amounts attributable to noncontrolling and redeemable noncontrolling interests (61 ) — — (5 ) (66 ) Other comprehensive income (loss) attributable to McKesson $ (370 ) $ 241 $ 24 $ (27 ) $ (132 ) Balance at March 31, 2019 $ (1,628 ) $ 53 $ (37 ) $ (237 ) $ (1,849 ) |
Segments of Business (Tables)
Segments of Business (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Financial information relating to our reportable operating segments and reconciliations to the consolidated totals is as follows: Years Ended March 31, (In millions) 2019 2018 2017 Revenues U.S. Pharmaceutical and Specialty Solutions (1) $ 167,763 $ 162,587 $ 155,236 European Pharmaceutical Solutions (1) 27,242 27,320 24,847 Medical-Surgical Solutions (1) 7,618 6,611 6,244 Other 11,696 11,839 12,206 Total Revenues $ 214,319 $ 208,357 $ 198,533 Operating profit (2) U.S. Pharmaceutical and Specialty Solutions (3) $ 2,697 $ 2,535 $ 2,488 European Pharmaceutical Solutions (4) (1,978 ) (1,681 ) 173 Medical-Surgical Solutions 455 461 401 Other (5) (6) (7) 394 (107 ) 4,514 Total 1,568 1,208 7,576 Corporate Expenses, Net (8) (694 ) (564 ) (377 ) Loss on Debt Extinguishment — (122 ) — Interest Expense (264 ) (283 ) (308 ) Income from Continuing Operations Before Income Taxes $ 610 $ 239 $ 6,891 Depreciation and amortization (9) U.S. Pharmaceutical and Specialty Solutions $ 238 $ 210 $ 235 European Pharmaceutical Solutions 257 296 315 Medical-Surgical Solutions 118 97 101 Other 214 237 149 Corporate 122 111 110 Total $ 949 $ 951 $ 910 Expenditures for long-lived assets (10) U.S. Pharmaceutical and Specialty Solutions $ 88 $ 126 $ 109 European Pharmaceutical Solutions 85 104 125 Medical-Surgical Solutions 110 34 9 Other 68 42 63 Corporate 75 99 98 Total $ 426 $ 405 $ 404 Revenues, net by geographic area United States $ 176,296 $ 169,943 $ 164,428 Foreign 38,023 38,414 34,105 Total Revenues $ 214,319 $ 208,357 $ 198,533 (1) Revenues derived from services represent less than 1% of our U.S. Pharmaceutical and Specialty Solutions segment’s total revenues, less than 10% of our European Pharmaceutical Solutions segment’s total revenues and less than 1% of our Medical-Surgical Solutions segment’s total revenues. (2) Segment operating profit includes gross profit, net of operating expenses, as well as other income, net, for our operating segments. (3) Our U.S. Pharmaceutical and Specialty Solutions segment’s operating profit for 2019, 2018 and 2017 includes pre-tax credits of $210 million , $99 million and $7 million related to our LIFO method of accounting for inventories. LIFO credits were higher in 2019 and 2018 compared to the comparable prior year periods primarily due to higher net effect of price declines. Operating profit for 2019 and 2017 includes $202 million and $144 million of net cash proceeds representing our share of net settlements of antitrust class action lawsuits. In addition, operating profit for 2018 includes a pre-tax gain of $43 million recognized from the sale of an equity investment. (4) European Pharmaceutical Solutions segment’s operating profit for 2019 and 2018 include non-cash pre-tax goodwill impairment charges of $1,776 million and $1,283 million . This segment’s operating profit for 2019 and 2018 also includes non-cash pre-tax long-lived asset impairment charges of $210 million and $446 million . (5) Operating profit for Other for 2019 and 2018 includes non-cash pre-tax goodwill and long-lived asset impairment charges of $35 million and $488 million recognized for our Rexall Health retail business. 2019 operating profit for Other also includes a pre-tax gain from escrow settlement of $97 million representing certain indemnity and other claims related to our 2017 acquisition of Rexall Health. In addition, operating profit for 2019 include pre-tax restructuring and asset impairment charges of $91 million , primarily associated with the lease and other exit-related costs and a pre-tax gain of $56 million recognized from the sale of an equity investment. (6) Operating profit for Other for 2019 includes a pre-tax credit of $90 million representing the derecognition of the TRA liability payable to the shareholders of Change. Operating profit for Other also includes our proportionate share of loss from Change Healthcare of $194 million and $248 million for 2019 and 2018. (7) Operating profit for Other for 2018 includes a pre-tax gain of $109 million from the sale of our EIS business and a pre-tax credit of $46 million representing a reduction in our TRA liability. Additionally, operating profit for 2017 includes a pre-tax gain of $3,947 million recognized from the Healthcare Technology Net Asset Exchange, net of transaction and related expenses, and a non-cash pre-tax charge of $290 million for goodwill impairment related to the EIS reporting unit. (8) Corporate expenses, net, for 2019 include pre-tax restructuring and asset impairment charges of $94 million primarily associated with employee severance and other exit-related costs. (9) Amounts primarily include amortization of acquired intangible assets purchased in connection with business acquisitions and capitalized software for internal use. (10) Long-lived assets consist of property, plant and equipment. |
Schedule of segment assets and property, plant and equipment, net by geographic areas | Segment assets and property, plant and equipment, net by geographic areas were as follows: March 31, (In millions) 2019 2018 Segment assets U.S. Pharmaceutical and Specialty Solutions $ 32,310 $ 31,431 European Pharmaceutical Solutions 7,829 10,467 Medical-Surgical Solutions 5,260 4,243 Other 11,006 11,509 Corporate 3,267 2,731 Total $ 59,672 $ 60,381 Property, plant and equipment, net United States $ 1,698 $ 1,529 Foreign 850 935 Total $ 2,548 $ 2,464 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The quarterly results of operations are not necessarily indicative of the results that may be expected for the entire year. Selected quarterly financial information for the last two years is as follows: (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2019 Revenues $ 52,607 $ 53,075 $ 56,208 $ 52,429 Gross profit (1) (2) 2,779 2,804 2,970 3,201 Income (Loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) (6) (7) $ (81 ) $ 552 $ 527 $ (744 ) Discontinued operations 1 1 (1 ) — Net income (loss) $ (80 ) $ 553 $ 526 $ (744 ) Net income (loss) attributable to McKesson $ (138 ) $ 499 $ 469 $ (796 ) Earnings (loss) per common share attributable to McKesson (8) Diluted (9) Continuing operations $ (0.69 ) $ 2.51 $ 2.41 $ (4.17 ) Discontinued operations 0.01 — (0.01 ) — Total $ (0.68 ) $ 2.51 $ 2.40 $ (4.17 ) Basic Continuing operations $ (0.69 ) $ 2.52 $ 2.42 $ (4.17 ) Discontinued operations 0.01 — (0.01 ) — Total $ (0.68 ) $ 2.52 $ 2.41 $ (4.17 ) (1) Gross profit for the first, second, third and fourth quarters of 2019 includes pre-tax credits of $21 million , $22 million , $21 million and $146 million related to our LIFO method of accounting for inventories. (2) Gross profit for the first, third and fourth quarters of 2019 includes $35 million , $104 million , and $63 million of cash proceeds representing our share of net settlements of antitrust class action lawsuits. (3) Financial results for the first and fourth quarter of 2019 include non-cash pre-tax goodwill impairment charges of $570 million and $1,206 million within our two reporting units within the European Pharmaceutical Solutions segment. (4) Financial results for the first and fourth quarters of 2019 include non-cash pre-tax asset impairment charges of $20 million and $190 million primarily for our U.K. retail business. Financial results for the third quarter of 2019 include non-cash pre-tax asset impairment charges of $35 million for our Rexall Health retail business. (5) Financial results for the first, second, third and fourth quarters of 2019 include our proportionate share of loss from Change Healthcare of $56 million , $56 million , $50 million and $32 million . (6) Financial results for the first quarter of 2019 include a pre-tax gain from escrow settlement of $97 million representing certain indemnity and other claims related to our 2017 acquisition of Rexall Health. (7) Financial results for the second quarter of 2019 include a pre-tax credit of $90 million representing the derecognition of the TRA liability payable to the shareholders of Change. (8) Certain computations may reflect rounding adjustments. (9) As a result of our reported net loss for the first and fourth quarters of 2019, potentially dilutive securities were excluded from the per share computations for those quarters due to their antidilutive effect. (In millions, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2018 Revenues $ 51,051 $ 52,061 $ 53,617 $ 51,628 Gross profit (1) 2,560 2,834 2,715 3,075 Income (loss) after income taxes: Continuing operations (1) (2) (3) (4) (5) $ 363 $ 56 $ 960 $ (1,087 ) Discontinued operations 2 — 1 2 Net income (loss) $ 365 $ 56 $ 961 $ (1,085 ) Net income (loss) attributable to McKesson $ 309 $ 1 $ 903 $ (1,146 ) Earnings (loss) per common share attributable to McKesson (6) Diluted (7) Continuing operations $ 1.44 $ 0.01 $ 4.32 $ (5.58 ) Discontinued operations 0.01 — 0.01 — Total $ 1.45 $ 0.01 $ 4.33 $ (5.58 ) Basic Continuing operations $ 1.46 $ 0.01 $ 4.34 $ (5.58 ) Discontinued operations — — 0.01 — Total $ 1.46 $ 0.01 $ 4.35 $ (5.58 ) (1) Gross profit for the first, second, third and fourth quarters of 2018 includes pre-tax charge of $26 million , pre-tax credits of $29 million , $2 million and $94 million related to our LIFO method of accounting for inventories. (2) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax goodwill impairment charges of $350 million and $933 million for our former McKesson Europe reporting unit in European Pharmaceutical Solutions segment. In addition, financial results for the fourth quarter of 2018 include a non-cash pre-tax goodwill impairment charge of $455 million for our Rexall Health reporting unit in Other. (3) Financial results for the second and fourth quarter of 2018 include non-cash pre-tax asset impairment charges of $189 million and $257 million for our McKesson Europe business. (4) Financial results for the third quarter of 2018 include a pre-tax gain of $109 million from the sale of our EIS business. (5) Financial results for the first, second, third and fourth quarters of 2018 include our proportionate share of loss from Change Healthcare of $120 million , $61 million , $90 million and income of $23 million . (6) Certain computations may reflect rounding adjustments. (7) As a result of our reported net loss for the fourth quarter of 2018, potentially dilutive securities were excluded from the 2018 fourth quarter per share computations due to their antidilutive effect. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2019USD ($)customersegment | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Apr. 01, 2019USD ($) | Apr. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of operating segments | segment | 3 | ||||||||||||
LIFO inventory (percentage) | 62.00% | 63.00% | 62.00% | 63.00% | |||||||||
LIFO reserve | $ 696 | $ 906 | $ 696 | $ 906 | |||||||||
Credits associated with last-in, first-out inventory method | 146 | $ 21 | $ 22 | $ 21 | 94 | $ 2 | $ 29 | $ (26) | 210 | 99 | $ 7 | ||
Capitalized software held for internal use, net | 394 | 425 | 394 | 425 | |||||||||
Capitalized software held for internal use, accumulated amortization | $ 1,246 | $ 1,182 | 1,246 | 1,182 | |||||||||
Sales returns from customers | 2,900 | 3,100 | |||||||||||
Opening Retained Earnings Adjustments: Adoption of New Accounting Standards | $ 154 | ||||||||||||
Tax expense (benefit) related to adoption of amended accounting guidance | $ 4 | (8) | (54) | ||||||||||
Minimum | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 1 year | ||||||||||||
Intangible assets, useful life | 1 year | ||||||||||||
Capitalized software held for internal use, useful life | 1 year | ||||||||||||
Maximum | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 30 years | ||||||||||||
Intangible assets, useful life | 38 years | ||||||||||||
Capitalized software held for internal use, useful life | 10 years | ||||||||||||
Customer Concentration Risk | Sales Revenue, Net | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of largest customers | customer | 10 | ||||||||||||
Percentage of total consolidated revenues (percent) | 49.90% | ||||||||||||
Customer Concentration Risk | Sales Revenue, Net | CVS | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of total consolidated revenues (percent) | 19.40% | ||||||||||||
Customer Concentration Risk | Accounts Receivable | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Number of largest customers | customer | 10 | ||||||||||||
Percentage of total consolidated revenues (percent) | 31.90% | ||||||||||||
Customer Concentration Risk | Accounts Receivable | CVS | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of total consolidated revenues (percent) | 18.40% | ||||||||||||
Accounting Standards Update 2016-16 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Opening Retained Earnings Adjustments: Adoption of New Accounting Standards | $ 152 | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Tax expense (benefit) related to adoption of amended accounting guidance | $ 4 | ||||||||||||
Shipping and Handling | Selling, Distribution and Administrative Expenses | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Shipping and handling costs | $ 951 | $ 914 | $ 814 | ||||||||||
Distribution and Retail Business | Product Concentration Risk | Sales Revenue, Net | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of total consolidated revenues (percent) | 98.00% | ||||||||||||
Services Business | Product Concentration Risk | Sales Revenue, Net | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Percentage of total consolidated revenues (percent) | 2.00% | ||||||||||||
Subsequent Event | Expected | Accounting Standards Update 2016-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating lease liability | $ 2,000 |
Goodwill Impairment Charges (De
Goodwill Impairment Charges (Details) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016 | Mar. 31, 2019USD ($)reporting_unit | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | $ 1,797,000,000 | $ 1,738,000,000 | $ 290,000,000 | |||||
Non-cash after-tax charge | 1,738,000,000 | |||||||
Goodwill | $ 9,358,000,000 | $ 10,924,000,000 | 9,358,000,000 | 10,924,000,000 | 10,586,000,000 | |||
European Pharmaceutical Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 1,206,000,000 | $ 570,000,000 | 1,776,000,000 | 1,283,000,000 | ||||
Non-cash after-tax charge | $ 1,756,000,000 | 1,283,000,000 | ||||||
Number of Reporting Units | reporting_unit | 2 | |||||||
Goodwill | 0 | 1,850,000,000 | $ 0 | 1,850,000,000 | 2,789,000,000 | |||
Other | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 21,000,000 | 455,000,000 | 290,000,000 | |||||
Goodwill | 2,829,000,000 | 2,894,000,000 | 2,829,000,000 | 2,894,000,000 | 2,337,000,000 | |||
Technology Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 290,000,000 | |||||||
Non-cash after-tax charge | $ 282,000,000 | |||||||
Rexall Health | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 455,000,000 | |||||||
Rexall Health | Other | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 455,000,000 | |||||||
Non-cash after-tax charge | $ 455,000,000 | |||||||
Goodwill impairment, discount rate (percent) | 10.00% | |||||||
Goodwill impairment, terminal growth rate (percent) | 2.00% | |||||||
Goodwill | 0 | 0 | 0 | $ 0 | ||||
Pharmacy Solutions Reporting Unit | European Pharmaceutical Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 741,000,000 | 238,000,000 | ||||||
Non-cash after-tax charge | $ 741,000,000 | $ 238,000,000 | ||||||
Goodwill impairment, discount rate (percent) | 9.00% | 8.00% | ||||||
Goodwill impairment, terminal growth rate (percent) | 1.25% | 1.25% | ||||||
Goodwill | $ 0 | 0 | ||||||
Consumer Solutions Reporting Unit | European Pharmaceutical Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 465,000,000 | $ 332,000,000 | ||||||
Non-cash after-tax charge | $ 445,000,000 | $ 332,000,000 | ||||||
Goodwill impairment, discount rate (percent) | 10.00% | 8.50% | ||||||
Goodwill impairment, terminal growth rate (percent) | 1.25% | 1.25% | ||||||
Goodwill | $ 0 | $ 0 | ||||||
Mckesson Europe Reporting Unit | European Pharmaceutical Solutions | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash pre-tax charge | 933,000,000 | $ 350,000,000 | ||||||
Non-cash after-tax charge | $ 350,000,000 | |||||||
Goodwill impairment, discount rate (percent) | 7.50% | 7.00% | 8.00% | |||||
Goodwill impairment, terminal growth rate (percent) | 1.25% | 1.50% | 1.25% | |||||
Mckesson Europe Reporting Unit | Other | ||||||||
Goodwill [Line Items] | ||||||||
Non-cash after-tax charge | $ 933,000,000 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset impairment charges | $ 597 | $ 567 | $ 18 | ||
Intangible Asset and Store Assets Impairment | Customer relationships | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Intangible asset impairment charges, before tax | 35 | 33 | |||
Intangible asset impairment charges, net of tax | $ 33 | 35 | |||
Strategic Growth Initiative Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax charge | 331 | ||||
Cash payments for restructuring | 141 | ||||
Reserve balance | $ 150 | 0 | 150 | 0 | |
Strategic Growth Initiative Plan | Other Accrued Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reserve balance | 117 | 117 | |||
Strategic Growth Initiative Plan | Other Noncurrent Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reserve balance | 33 | 33 | |||
Strategic Growth Initiative Plan | Employee Severance, Exit-related Costs and Asset Impairment Charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax charge | 135 | ||||
Restructuring charges, after tax | 122 | ||||
Strategic Growth Initiative Plan | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 140 | 140 | |||
Strategic Growth Initiative Plan | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 180 | 180 | |||
Strategic Growth Initiative Plan - Relocation of Corporate Headquarters | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax charge | 33 | ||||
Restructuring charges, after tax | 24 | ||||
Strategic Growth Initiative Plan - Relocation of Corporate Headquarters | Minimum | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 80 | 80 | |||
Strategic Growth Initiative Plan - Relocation of Corporate Headquarters | Maximum | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 130 | 130 | |||
Strategic Growth Initiative Plan - Additional Global Reorganization and Business Consolidation Programs | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax charge | 163 | ||||
Restructuring charges, after tax | 127 | ||||
Strategic Growth Initiative Plan - Additional Global Reorganization and Business Consolidation Programs | Minimum | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 300 | 300 | |||
Strategic Growth Initiative Plan - Additional Global Reorganization and Business Consolidation Programs | Maximum | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 350 | 350 | |||
Cost Alignment Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring incurred to-date | 256 | 256 | |||
Cost Alignment Plan | Other Accrued Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reserve balance | 9 | 39 | 9 | 39 | |
Cost Alignment Plan | Other Noncurrent Liabilities | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reserve balance | 25 | 30 | 25 | 30 | |
Cost Alignment Plan | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments for restructuring | 18 | 45 | |||
Cost Alignment Plan | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 250 | 250 | |||
Cost Alignment Plan | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 270 | 270 | |||
Fiscal 2018 McKesson Europe Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset impairment charges | 210 | 446 | |||
Restructuring and asset impairment charges, net of tax | 172 | 410 | |||
Fiscal 2018 McKesson Europe Plan | Reduction in Workforce | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Cash payments for restructuring | 32 | 10 | |||
Fiscal 2018 McKesson Europe Plan | Severance and Lease Exit Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Pre-tax charge | 18 | 74 | |||
Restructuring charges, after tax | 16 | 67 | |||
Restructuring incurred to-date | 92 | 92 | |||
Reserve balance | 19 | $ 42 | 19 | $ 42 | |
Fiscal 2018 McKesson Europe Plan | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | 90 | 90 | |||
Fiscal 2018 McKesson Europe Plan | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected total pre-tax charges | $ 130 | $ 130 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges - Summary of Details for Charges Recorded (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Total | $ 91 |
Strategic Growth Initiative Plan | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 154 |
Exit-related costs | 144 |
Asset impairments and accelerated depreciation | 33 |
Total | 331 |
Strategic Growth Initiative Plan | Operating Segments | U.S. Pharmaceutical and Specialty Solutions | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 50 |
Exit-related costs | 7 |
Asset impairments and accelerated depreciation | 6 |
Total | 63 |
Strategic Growth Initiative Plan | Operating Segments | European Pharmaceutical Solutions | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 33 |
Exit-related costs | 3 |
Asset impairments and accelerated depreciation | 5 |
Total | 41 |
Strategic Growth Initiative Plan | Operating Segments | Medical-Surgical Solutions | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 19 |
Exit-related costs | 20 |
Asset impairments and accelerated depreciation | 3 |
Total | 42 |
Strategic Growth Initiative Plan | Operating Segments | Other | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 16 |
Exit-related costs | 57 |
Asset impairments and accelerated depreciation | 18 |
Total | 91 |
Strategic Growth Initiative Plan | Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Severance and employee-related costs, net | 36 |
Exit-related costs | 57 |
Asset impairments and accelerated depreciation | 1 |
Total | $ 94 |
Restructuring and Asset Impai_5
Restructuring and Asset Impairment Charges - Summary of Activity Related to Restructuring Liability (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Other | |
Cost Alignment Plan | |
Restructuring charges recognized | $ 91 |
Strategic Growth Initiative Plan | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 331 |
Non-cash charges | (33) |
Cash payments | (141) |
Other | (7) |
Ending balance | 150 |
Strategic Growth Initiative Plan | Operating Segments | U.S. Pharmaceutical and Specialty Solutions | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 63 |
Non-cash charges | (6) |
Cash payments | (8) |
Other | (18) |
Ending balance | 31 |
Strategic Growth Initiative Plan | Operating Segments | European Pharmaceutical Solutions | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 41 |
Non-cash charges | (5) |
Cash payments | (5) |
Other | 7 |
Ending balance | 38 |
Strategic Growth Initiative Plan | Operating Segments | Medical-Surgical Solutions | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 42 |
Non-cash charges | (3) |
Cash payments | (23) |
Other | (1) |
Ending balance | 15 |
Strategic Growth Initiative Plan | Operating Segments | Other | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 91 |
Non-cash charges | (18) |
Cash payments | (52) |
Other | 8 |
Ending balance | 29 |
Strategic Growth Initiative Plan | Corporate | |
Cost Alignment Plan | |
Beginning balance | 0 |
Restructuring charges recognized | 94 |
Non-cash charges | (1) |
Cash payments | (53) |
Other | (3) |
Ending balance | 37 |
Other Accrued Liabilities | Strategic Growth Initiative Plan | |
Cost Alignment Plan | |
Ending balance | 117 |
Other Noncurrent Liabilities | Strategic Growth Initiative Plan | |
Cost Alignment Plan | |
Ending balance | $ 33 |
Business Combinations - Acquisi
Business Combinations - Acquisition of Medical Specialties Distributors (Details) - USD ($) $ in Millions | Jun. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,358 | $ 10,924 | $ 10,586 | |
Medical Specialties Distributors LLC (“MSD”) | ||||
Business Acquisition [Line Items] | ||||
Net purchase consideration | $ 784 | |||
Fair value of assets acquired (excluding goodwill and intangibles) | 240 | |||
Fair value of liabilities assumed | 163 | |||
Goodwill | 381 | |||
Intangible assets | $ 326 | |||
Weighted average life (years) | 18 years |
Business Combinations - Fair Va
Business Combinations - Fair Values Recognized of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,358 | $ 10,924 | $ 10,586 | |
Medical Specialties Distributors LLC (“MSD”) | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 113 | |||
Other current assets, net of cash and cash equivalents acquired | 72 | |||
Goodwill | 381 | |||
Intangible assets | 326 | |||
Other long-term assets | 55 | |||
Current liabilities | (72) | |||
Other long-term liabilities | (91) | |||
Net assets acquired, net of cash and cash equivalents | $ 784 |
Business Combinations - Acqui_2
Business Combinations - Acquisition of RxCrossroads (Details) - USD ($) $ in Millions | Jan. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Cash purchase consideration | $ 905 | $ 2,893 | $ 4,212 | ||
Goodwill | $ 9,358 | $ 10,924 | $ 10,586 | ||
RxCrossroads | |||||
Business Acquisition [Line Items] | |||||
Cash purchase consideration | $ 720 | ||||
Fair value of assets acquired (excluding goodwill and intangibles) | $ 129 | ||||
Fair value of liabilities assumed | $ 57 | ||||
Goodwill | 386 | ||||
Intangible assets | $ 262 | ||||
Weighted average life (years) | 14 years |
Business Combinations - Acqui_3
Business Combinations - Acquisition of CoverMyMeds (Details) - USD ($) $ in Millions | Apr. 03, 2017 | May 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | |||||
Purchase consideration paid in cash, net of cash acquired | $ 905 | $ 2,893 | $ 4,212 | ||
CMM | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration paid in cash, net of cash acquired | $ 1,300 | ||||
Additional contingent consideration that may be paid | 160 | ||||
Contingent consideration | $ 113 | $ 69 | $ 124 | ||
Cash payment for contingent consideration earned | $ 68 |
Business Combinations - Other A
Business Combinations - Other Acquisitions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Cash purchase consideration | $ 905 | $ 2,893 | $ 4,212 | |
Goodwill | $ 9,358 | 10,924 | $ 10,586 | |
intraFUSION, BDI Pharma, LLC, and Uniprix Group | ||||
Business Acquisition [Line Items] | ||||
Cash purchase consideration | $ 485 | |||
Fair value of assets acquired (excluding goodwill and intangibles) | $ 292 | |||
Fair value of liabilities assumed | 160 | |||
Goodwill | 246 | |||
Acquired identifiable intangibles | $ 118 |
Business Combinations - Acqui_4
Business Combinations - Acquisition of Rexall Health (Details) $ in Millions | May 23, 2018USD ($) | May 23, 2018CAD ($) | Dec. 31, 2016USD ($)pharmacy | Dec. 31, 2016CAD ($)pharmacy | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($)pharmacy | Mar. 31, 2017USD ($) | Mar. 31, 2018CAD ($) |
Business Acquisition [Line Items] | ||||||||||
Cash purchase consideration | $ | $ 905,000,000 | $ 2,893,000,000 | $ 4,212,000,000 | |||||||
Gain (loss) recognized from sale of stores | $ | 86,000,000 | $ 169,000,000 | $ (94,000,000) | |||||||
Rexall Health | CANADA | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of pharmacies | pharmacy | 400 | 400 | ||||||||
Cash purchase consideration | $ 2,100,000,000 | $ 2,900 | ||||||||
Number of stores agreed to be divested | pharmacy | 27 | 27 | ||||||||
Number of stores sold | pharmacy | 27 | |||||||||
Rexall Health | CANADA | Third Party Buyer | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration agreed upon for sale of business | $ 94,000,000 | $ 116 | ||||||||
Rexall Health | CANADA | Third Party Seller of Rexall Health | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from escrow settlement related to previous Acquisition | $ 97,000,000 | $ 125 | $ 119,000,000 | $ 147 | $ 97,000,000 | |||||
Gain (loss) recognized from sale of stores | $ | $ 0 |
Business Combinations - Acqui_5
Business Combinations - Acquisition of Vantage, Biologics and UDG Healthcare (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||
Cash purchase consideration | $ 905 | $ 2,893 | $ 4,212 |
Vantage, Biologics, Inc. (“Biologics”) and UDG Healthcare PLC (‘UDG”) | |||
Business Acquisition [Line Items] | |||
Cash purchase consideration | $ 1,600 |
Healthcare Technology Net Ass_2
Healthcare Technology Net Asset Exchange (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 15, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Pre-tax gain on sale of business | $ 0 | $ 109,000,000 | $ 0 | |||||||||
Loss from equity method investment in Change Healthcare | $ (23,000,000) | $ 90,000,000 | $ 61,000,000 | $ 120,000,000 | ||||||||
Carrying value of equity method investments | $ 3,513,000,000 | 3,728,000,000 | 3,513,000,000 | 3,728,000,000 | ||||||||
Tax Receivable Agreement (“TRA”) | Change Healthcare | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Noncurrent liability | 90,000,000 | 90,000,000 | ||||||||||
Other | Tax Receivable Agreement (“TRA”) | Change Healthcare | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Noncurrent liability | 0 | 0 | ||||||||||
Pre-tax credit representing reduction in TRA liability | 90,000,000 | |||||||||||
After-tax credit representing reduction in TRA liability | 66,000,000 | |||||||||||
Other | Operating Segments | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Pre-tax credit representing reduction in TRA liability | 46,000,000 | |||||||||||
Core MTS Businesses | Technology Solutions | Operating Segments | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Gain from sale of business, after tax | 3,000,000,000 | |||||||||||
Corporate Joint Venture | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Carrying value of equity method investments | 3,513,000,000 | 3,728,000,000 | 3,513,000,000 | 3,728,000,000 | ||||||||
Excess of carrying value over proportionate share of investment net assets | 4,158,000,000 | $ 4,472,000,000 | 4,158,000,000 | 4,472,000,000 | ||||||||
Corporate Joint Venture | Transition Services Agreements (“TSA”) | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total fees charged under the TSA | 60,000,000 | 91,000,000 | ||||||||||
Corporate Joint Venture | Core MTS Businesses | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest in Joint Venture (percent) | 70.00% | |||||||||||
Change Healthcare | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Loss from equity method investment in Change Healthcare | $ 32,000,000 | $ 50,000,000 | $ 56,000,000 | $ 56,000,000 | 194,000,000 | 248,000,000 | 0 | |||||
Change Healthcare | Core MTS Businesses | Other | Operating Segments | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Pre-tax gain on sale of business | $ 3,900,000,000 | |||||||||||
Change Healthcare | Core MTS Businesses | Technology Solutions | Operating Segments | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Pre-tax gain on sale of business | 37,000,000 | |||||||||||
Gain from sale of business, after tax | 22,000,000 | |||||||||||
Proceeds from Divestiture of Businesses | 126,000,000 | |||||||||||
Change Healthcare | Corporate Joint Venture | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest in Joint Venture (percent) | 70.00% | |||||||||||
Loss from equity method investment in Change Healthcare | 194,000,000 | $ 248,000,000 | ||||||||||
Provisional tax benefit | 76,000,000 | |||||||||||
Pre-tax credit representing reduction in TRA liability | $ (90,000,000) | $ 90,000,000 | ||||||||||
Change Healthcare, Inc. | Corporate Joint Venture | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership interest in Joint Venture (percent) | 30.00% |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | Oct. 02, 2017 | Jul. 18, 2017 | Nov. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Aug. 01, 2017 |
Discontinued Operations Disclosures | ||||||||||
Pre-tax gain on sale of business | $ 0 | $ 109 | $ 0 | |||||||
Gain from sale of equity method investment, pre-tax | $ 0 | |||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Consideration agreed upon for sale of business | $ 185 | |||||||||
Net cash proceeds received | $ 169 | |||||||||
Assumed net debt | $ 16 | |||||||||
Pre-tax gain on sale of business | $ 109 | $ 109 | ||||||||
Gain from sale of business, after tax | $ 30 | |||||||||
Other | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Proceeds from sale of equity method investments | $ 61 | |||||||||
Gain from sale of equity method investment, pre-tax | $ 56 | $ 56 | ||||||||
Gain from sale of equity method investment, after tax | $ 41 | |||||||||
Net Proceeds from Sale of Equity Method Investments | 23 | |||||||||
Payments to Acquire Investments | $ 38 | |||||||||
Distribution Solutions | ||||||||||
Discontinued Operations Disclosures | ||||||||||
Proceeds from sale of equity method investments | $ 42 | |||||||||
Gain from sale of equity method investment, pre-tax | $ 43 | |||||||||
Gain from sale of equity method investment, after tax | $ 26 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Brazil Distribution Business $ in Millions | May 31, 2016USD ($) |
Discontinued Operations Disclosures | |
After-tax loss | $ 113 |
Payments related to sale of business | $ 100 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 95 | $ 69 | $ 115 |
Tax benefit for share-based compensation | (12) | (28) | (92) |
Share-based compensation expense, net of tax | 83 | 41 | 23 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 75 | 46 | 79 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 12 | 14 | 24 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 8 | $ 9 | $ 12 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Jul. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Capitalized share-based compensation expense | $ 0 | |||
Tax expense (benefit) related to adoption of amended accounting guidance | $ 4,000,000 | $ (8,000,000) | $ (54,000,000) | |
Options to purchase common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award contractual term | 7 years | |||
Stock award vesting period | 4 years | |||
RSUs | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested RSUs (in shares) | 63,000 | |||
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 3 years | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 4 years | |||
PeRSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 4 years | |||
TSRUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock award vesting period | 3 years | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 21,000,000 | |||
Number of shares available for grant | 3,000,000 | |||
Period over which payroll is deducted to purchase shares | 3 months | |||
Percentage of market price for share purchase | 85.00% | |||
Percentage of market price deduction for share purchases | 15.00% | |||
2013 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 30,000,000 | |||
Number of shares available for grant | 25,000,000 | |||
New Accounting Pronouncement, Early Adoption, Effect | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax expense (benefit) related to adoption of amended accounting guidance | $ 4,000,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Assumptions for Stock Options Fair Values (Details) - Options to purchase common stock | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility (percent) | 26.00% | 25.00% | 21.00% |
Expected dividend yield (percent) | 0.90% | 0.80% | 0.70% |
Risk-free interest rate (percent) | 2.80% | 1.70% | 1.10% |
Expected life (in years) | 4 years 7 months 6 days | 4 years 6 months | 4 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Options Outstanding (Details) shares in Millions | 12 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding at Year End (in shares) | shares | 3 |
Number of Options Exercisable at Year End (in shares) | shares | 2 |
Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices lower limit (in dollars per share) | $ 87.24 |
Range of exercise prices upper limit (in dollars per share) | $ 162.55 |
Number of Options Outstanding at Year End (in shares) | shares | 1 |
Weighted- Average Remaining Contractual Life (Years) | 4 years |
Weighted- Average Exercise Price (in dollars per share) | $ 133.54 |
Number of Options Exercisable at Year End (in shares) | shares | 1 |
Weighted- Average Exercise Price (in dollars per share) | $ 119.65 |
Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of exercise prices lower limit (in dollars per share) | 162.56 |
Range of exercise prices upper limit (in dollars per share) | $ 239.93 |
Number of Options Outstanding at Year End (in shares) | shares | 2 |
Weighted- Average Remaining Contractual Life (Years) | 3 years |
Weighted- Average Exercise Price (in dollars per share) | $ 197.98 |
Number of Options Exercisable at Year End (in shares) | shares | 1 |
Weighted- Average Exercise Price (in dollars per share) | $ 199.08 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||
Beginning balance (in shares) | 3 | |
Granted (in shares) | 1 | |
Cancelled (in shares) | 0 | |
Exercised (in shares) | (1) | |
Ending balance (in shares) | 3 | 3 |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 161.27 | |
Granted (in dollars per share) | 141.93 | |
Cancelled (in dollars per share) | 167.37 | |
Exercised (in dollars per share) | 86.65 | |
Ending balance (in dollars per share) | $ 166.72 | $ 161.27 |
Weighted- Average Remaining Contractual Term (Years) | ||
Stock options outstanding, remaining contractual term | 3 years | 4 years |
Stock options outstanding, aggregate intrinsic value | $ 4 | $ 36 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Stock options vested and expected to vest (in shares) | 3 | |
Stock options vested and exercisable (in shares) | 2 | |
Stock options vested and expected to vest, weighted average exercise price (in dollars per share) | $ 166.88 | |
Stock options vested and exercisable, weighted average exercise price (in dollars per share) | $ 167.27 | |
Stock options vested and expected to vest, weighted average remaining contractual term | 3 years | |
Stock options vested and exercisable, weighted average remaining contractual term | 2 years | |
Stock options vested and expected to vest, aggregate intrinsic value | $ 3 | |
Stock options vested and exercisable, aggregate intrinsic value | $ 4 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Data Related to Stock Option Activity (Details) - Options to purchase common stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value per stock option (in dollars per share) | $ 34.98 | $ 34.24 | $ 32.19 |
Aggregate intrinsic value on exercise | $ 16 | $ 60 | $ 97 |
Cash received upon exercise | 29 | 77 | 54 |
Tax benefits realized related to exercise | 4 | 22 | 38 |
Total fair value of stock options vested | 16 | 20 | 18 |
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax | $ 15 | $ 15 | $ 21 |
Weighted-average period in years over which stock option compensation cost is expected to be recognized | 2 years | 2 years | 2 years |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Weighted-Average Assumptions Used to Estimate Fair Value of TSRUs (Details) - TSRUs | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility (percent) | 31.00% | 29.00% | 23.00% |
Expected dividend yield (percent) | 0.90% | 0.80% | 0.70% |
Risk-free interest rate (percent) | 2.60% | 1.50% | 1.10% |
Expected life (in years) | 3 years | 3 years | 3 years |
Share-Based Compensation - Sc_5
Share-Based Compensation - Schedule of Restricted Stock Unit Award Activity (Details) - Restricted stock units shares in Millions | 12 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 2 |
Granted (in shares) | shares | 1 |
Vested (in shares) | shares | (1) |
Cancelled (in shares) | shares | 0 |
Ending balance (in shares) | shares | 2 |
Weighted- Average Grant Date Fair Value Per Share | |
Beginning balance (in dollars per shares) | $ / shares | $ 176.74 |
Granted (in dollars per share) | $ / shares | 143.94 |
Vested (in dollars per share) | $ / shares | 210.30 |
Cancelled (in dollars per share) | $ / shares | 147.88 |
Ending balance (in dollars per shares) | $ / shares | $ 142.77 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Data Related to RSU Activity (Details) - Restricted stock units - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested | $ 59 | $ 156 | $ 109 |
Total compensation cost, net of estimated forfeitures, related to nonvested restricted stock unit awards not yet recognized, pre-tax | $ 119 | $ 97 | $ 99 |
Weighted-average period in years over which restricted stock unit award cost is expected to be recognized | 2 years | 2 years | 2 years |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||
Interest income | $ 39 | $ 48 | $ 29 | |||||
Equity in earnings, net | $ 23 | $ (90) | $ (61) | $ (120) | ||||
Gain from sale of equity method investment, pre-tax | 0 | |||||||
Other, net | 44 | 7 | 18 | |||||
Total | 182 | 130 | 77 | |||||
European Pharmaceutical Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Equity in earnings, net | 43 | 32 | $ 30 | |||||
Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain from sale of equity method investment, pre-tax | $ 56 | $ 56 | ||||||
U.S. Pharmaceutical and Specialty Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain from sale of equity method investment, pre-tax | $ 43 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income from continuing operations before income taxes | |||
U.S. | $ 1,512 | $ 1,175 | $ 5,772 |
Foreign | (902) | (936) | 1,119 |
Income from Continuing Operations Before Income Taxes | $ 610 | $ 239 | $ 6,891 |
Income Taxes - Components Of Pr
Income Taxes - Components Of Provision For Income Taxes Related To Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Current | |||
Federal | $ (20) | $ 577 | $ 524 |
State | 35 | 33 | 86 |
Foreign | 152 | 205 | 122 |
Total current | 167 | 815 | 732 |
Deferred | |||
Federal | 223 | (767) | 767 |
State | 44 | 17 | 164 |
Foreign | (78) | (118) | (49) |
Total deferred | 189 | (868) | 882 |
Income tax expense (benefit) | $ 356 | $ (53) | $ 1,614 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Mar. 01, 2017 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax Contingency [Line Items] | |||||||||
Income tax expense (benefit) | $ 356 | $ (53) | $ 1,614 | ||||||
Income tax rates (percent) | 58.40% | (22.20%) | 23.40% | ||||||
Statutory federal income tax rate (percent) | 21.00% | 31.60% | 35.00% | ||||||
Research and development credit | $ 7 | $ 11 | $ 14 | ||||||
Non-cash pre-tax charge | 1,797 | 1,738 | 290 | ||||||
Non-cash after-tax charge | 1,738 | ||||||||
Net discrete tax benefit | $ 42 | ||||||||
Net tax benefit on intellectual property transfer | 42 | 178 | 137 | ||||||
Tax expense recognized on gain from asset exchange | $ 929 | ||||||||
Tax expense (benefit) related to adoption of amended accounting guidance | 4 | (8) | (54) | ||||||
Valuation allowance | $ 870 | 870 | 751 | ||||||
Increase in valuation allowance | 119 | ||||||||
Unrecognized tax benefits | 1,052 | 1,052 | 1,183 | 486 | $ 555 | ||||
Unrecognized tax benefits that would Impact income tax expense and the effective tax rate | 877 | 877 | |||||||
Decrease in unrecognized tax benefits | 171 | ||||||||
Income tax expense (benefit), before any tax effect, related to accrued interest and penalties | 33 | (1) | (6) | ||||||
Accrued interest and penalties on unrecognized tax benefits | 68 | 68 | 37 | ||||||
Tax benefit resulting from favorable resolution of various uncertain tax positions | $ 39 | 13 | 7 | 113 | |||||
Provisional net tax benefit | 1,324 | ||||||||
Tax benefit related to change in tax method for inventory | 81 | ||||||||
Transition tax on foreign earnings | (5) | 457 | 0 | ||||||
Undistributed earnings of foreign operations | 4,900 | 4,900 | |||||||
Federal | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Federal, state and foreign net operating loss carryforwards | 92 | 92 | |||||||
State | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Federal, state and foreign net operating loss carryforwards | 3,551 | 3,551 | |||||||
Foreign Tax Authority | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Federal, state and foreign net operating loss carryforwards | 2,143 | 2,143 | |||||||
Capital loss carryforwards | 742 | 742 | |||||||
European Pharmaceutical Solutions | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Non-cash pre-tax charge | $ 1,206 | $ 570 | 1,776 | 1,283 | |||||
Non-cash after-tax charge | 1,756 | $ 1,283 | |||||||
Technology Solutions | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Non-cash pre-tax charge | 290 | ||||||||
Non-cash after-tax charge | $ 282 | ||||||||
New Accounting Pronouncement, Early Adoption, Effect | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Tax expense (benefit) related to adoption of amended accounting guidance | $ 4 |
Income Taxes - Reconciliation B
Income Taxes - Reconciliation Between Effective Tax Rate On Income From Continuing Operations And Statutory Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at federal statutory rate | $ 128 | $ 75 | $ 2,411 |
State income taxes net of federal tax benefit | 70 | 50 | 153 |
Tax effect of foreign operations | (86) | (146) | (326) |
Unrecognized tax benefits and settlements | 20 | 454 | 57 |
Non-deductible goodwill | 357 | 585 | 106 |
Share-based compensation | 4 | (8) | (54) |
Net tax benefit on intellectual property transfer | (42) | (178) | (137) |
Rate differential on gain from Change Healthcare Net Asset Exchange | 0 | 0 | (587) |
Impact of change in U.S. tax rate on temporary differences | (81) | (1,324) | 0 |
Transition tax on foreign earnings | (5) | 457 | 0 |
Other, net | (9) | (18) | (9) |
Income tax expense (benefit) | $ 356 | $ (53) | $ 1,614 |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax Balances (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Assets | ||
Receivable allowances | $ 70 | $ 58 |
Compensation and benefit related accruals | 377 | 345 |
Net operating loss and credit carryforwards | 885 | 811 |
Long-term contractual obligations | 0 | 59 |
Other | 216 | 279 |
Subtotal | 1,548 | 1,552 |
Less: valuation allowance | (870) | (751) |
Total assets | 678 | 801 |
Liabilities | ||
Inventory valuation and other assets | (2,016) | (1,869) |
Fixed assets and systems development costs | (170) | (158) |
Intangibles | (513) | (644) |
Change Healthcare Equity Investment | (885) | (814) |
Other | (34) | (71) |
Total liabilities | (3,618) | (3,556) |
Net deferred tax liability | (2,940) | (2,755) |
Long-term deferred tax asset | 58 | 49 |
Long-term deferred tax liability | $ (2,998) | $ (2,804) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits at beginning of period | $ 1,183 | $ 486 | $ 555 | |
Additions based on tax positions related to prior years | 78 | 47 | 7 | |
Reductions based on tax positions related to prior years | (234) | (124) | (67) | |
Additions based on tax positions related to current year | 68 | 778 | 105 | |
Reductions based on settlements | $ (39) | (13) | (7) | (113) |
Reductions based on the lapse of the applicable statutes of limitations | (25) | 0 | 0 | |
Exchange rate fluctuations | (5) | 3 | (1) | |
Unrecognized tax benefits at end of period | $ 1,052 | $ 1,183 | $ 486 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests and Noncontrolling Interests - Narrative (Details) shares in Millions, $ in Millions | Sep. 19, 2018€ / shares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Mar. 31, 2019€ / shares | Dec. 02, 2014€ / shares |
Noncontrolling Interest [Line Items] | ||||||
Put Right Value, Interest Rate Spread | 5.00% | |||||
Carrying amount of redeemable noncontrolling interest | $ 1,393 | $ 1,459 | ||||
Noncontrolling interests | 193 | 253 | ||||
Net income attributable to noncontrolling interests | 221 | 230 | $ 83 | |||
Net income attributable to McKesson and transfers of interests | 34 | 70 | ||||
Redeemable Noncontrolling Interests | ||||||
Noncontrolling Interest [Line Items] | ||||||
Net income attributable to noncontrolling interests | 45 | 43 | ||||
Decrease in carrying value of redeemable noncontrolling interest | (53) | |||||
Carrying amount of redeemable noncontrolling interest | 1,393 | 1,459 | 1,327 | |||
Noncontrolling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Noncontrolling interests | 193 | 253 | 178 | |||
Net income attributable to noncontrolling interests | 176 | 187 | ||||
Additional Paid-in Capital | ||||||
Noncontrolling Interest [Line Items] | ||||||
Effect of changes in ownership interests | 3 | |||||
McKesson Europe | ||||||
Noncontrolling Interest [Line Items] | ||||||
Annual recurring compensation (in euro per share) | € / shares | € 0.83 | |||||
Net income attributable to noncontrolling interests | 45 | 43 | 44 | |||
Put right (in euro per share) | € / shares | € 23.50 | € 22.99 | ||||
Payments to purchase shares of Mckesson Europe | $ 50 | |||||
Shares purchased (shares) | shares | 1.9 | |||||
Maximum redemption value | $ 1,230 | $ 1,350 | ||||
Percentage of outstanding common shares | 77.00% | 77.00% | ||||
Put Right increase (euros per share) | € / shares | € 0.51 | |||||
McKesson Europe | Redeemable Noncontrolling Interests | ||||||
Noncontrolling Interest [Line Items] | ||||||
Decrease in carrying value of redeemable noncontrolling interest | $ 53 | |||||
Vantage and ClarusOne Sourcing Services LLC | ||||||
Noncontrolling Interest [Line Items] | ||||||
Net income attributable to noncontrolling interests | $ 176 | $ 187 | $ 39 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests and Noncontrolling Interests - Schedule of Changes in Noncontrolling Interests and Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 253 | ||
Net income attributable to noncontrolling interests | 221 | $ 230 | $ 83 |
Other comprehensive income | (66) | 185 | |
Ending balance | 193 | 253 | |
Redeemable Noncontrolling Interest, Beginning balance | 1,459 | ||
Payments to noncontrolling interests | (184) | (98) | |
Redeemable Noncontrolling Interest, Ending balance | 1,393 | 1,459 | |
Noncontrolling interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 253 | 178 | |
Net income attributable to noncontrolling interests | 176 | 187 | |
Other comprehensive income | 0 | 0 | |
Payments to noncontrolling interests | (98) | ||
Other | (52) | (14) | |
Ending balance | 193 | 253 | 178 |
Payments to noncontrolling interests | (184) | (98) | |
Other | (52) | (14) | |
Redeemable Noncontrolling Interests | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Other comprehensive income | (66) | 185 | |
Payments to noncontrolling interests | 0 | ||
Exercises of Put Right | 53 | ||
Other | 0 | 0 | |
Redeemable Noncontrolling Interest, Beginning balance | 1,459 | 1,327 | |
Net income attributable to noncontrolling interests | 45 | 43 | |
Reclassification of recurring compensation to other accrued liabilities | (45) | (43) | |
Payments to noncontrolling interests | 0 | ||
Other | 0 | 0 | |
Redeemable Noncontrolling Interest, Ending balance | $ 1,393 | $ 1,459 | $ 1,327 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Income from continuing operations | $ (744) | $ 527 | $ 552 | $ (81) | $ (1,087) | $ 960 | $ 56 | $ 363 | $ 254 | $ 292 | $ 5,277 |
Net income attributable to noncontrolling interests | (221) | (230) | (83) | ||||||||
Income from continuing operations attributable to McKesson | 33 | 62 | 5,194 | ||||||||
Income (Loss) from discontinued operations, net of tax | 0 | (1) | 1 | 1 | 2 | 1 | 0 | 2 | 1 | 5 | (124) |
Net Income Attributable to McKesson Corporation | $ (796) | $ 469 | $ 499 | $ (138) | $ (1,146) | $ 903 | $ 1 | $ 309 | $ 34 | $ 67 | $ 5,070 |
Weighted average common shares outstanding: | |||||||||||
Basic (in shares) | 196 | 208 | 221 | ||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Diluted (in shares) | 197 | 209 | 223 | ||||||||
Diluted | |||||||||||
Continuing operations (in dollars per share) | $ (4.17) | $ 2.41 | $ 2.51 | $ (0.69) | $ (5.58) | $ 4.32 | $ 0.01 | $ 1.44 | $ 0.17 | $ 0.30 | $ 23.28 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.01 | 0 | 0.02 | (0.55) |
Total (in dollars per share) | (4.17) | 2.40 | 2.51 | (0.68) | (5.58) | 4.33 | 0.01 | 1.45 | 0.17 | 0.32 | 22.73 |
Basic | |||||||||||
Continuing operations (in dollars per share) | (4.17) | 2.42 | 2.52 | (0.69) | (5.58) | 4.34 | 0.01 | 1.46 | 0.17 | 0.30 | 23.50 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0 | 0 | 0.02 | (0.55) |
Total (in dollars per share) | $ (4.17) | $ 2.41 | $ 2.52 | $ (0.68) | $ (5.58) | $ 4.35 | $ 0.01 | $ 1.46 | $ 0.17 | $ 0.32 | $ 22.95 |
Options to purchase common stock | |||||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 0 | 0 | 1 | ||||||||
Restricted stock units | |||||||||||
Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||||||||||
Effect of dilutive securities (in shares) | 1 | 1 | 1 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Potentially dilutive securities excluded from diluted earnings per share | 3 | 2 | 2 |
Receivables, Net (Details)
Receivables, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Receivables, Net, Current [Abstract] | ||
Customer accounts | $ 14,941 | $ 14,349 |
Other | 3,584 | 3,578 |
Total | 18,525 | 17,927 |
Allowances | (279) | (216) |
Net | $ 18,246 | $ 17,711 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Property, Plant and Equipment, Net [Abstract] | ||
Land | $ 172 | $ 187 |
Building, machinery, equipment and other | 4,154 | 3,746 |
Total property, plant and equipment | 4,326 | 3,933 |
Accumulated depreciation | (1,778) | (1,469) |
Property, plant and equipment, net | $ 2,548 | $ 2,464 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | $ 10,924 | $ 10,924 | $ 10,586 | ||
Goodwill acquired | 442 | 1,707 | |||
Acquisition accounting, transfers and other adjustments | 35 | 39 | |||
Goodwill impairment | (1,797) | (1,738) | $ (290) | ||
Goodwill disposed (2) | (172) | ||||
Amount reclassified to assets held for sale | (2) | ||||
Foreign currency translation adjustments, net | (246) | 504 | |||
Goodwill, ending balance | $ 9,358 | 9,358 | 10,924 | 10,586 | |
U.S. Pharmaceutical and Specialty Solutions | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 4,110 | 4,110 | 3,391 | ||
Goodwill acquired | 17 | 657 | |||
Acquisition accounting, transfers and other adjustments | 13 | 4 | |||
Goodwill impairment | 0 | 0 | |||
Goodwill disposed (2) | (37) | ||||
Amount reclassified to assets held for sale | 0 | ||||
Foreign currency translation adjustments, net | (62) | 95 | |||
Goodwill, ending balance | 4,078 | 4,078 | 4,110 | 3,391 | |
European Pharmaceutical Solutions | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 1,850 | 1,850 | 2,789 | ||
Goodwill acquired | 52 | 26 | |||
Acquisition accounting, transfers and other adjustments | (5) | 0 | |||
Goodwill impairment | (1,206) | (570) | (1,776) | (1,283) | |
Goodwill disposed (2) | (11) | ||||
Amount reclassified to assets held for sale | (2) | ||||
Foreign currency translation adjustments, net | (121) | 331 | |||
Goodwill, ending balance | 0 | 0 | 1,850 | 2,789 | |
Medical-Surgical Solutions | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | 2,070 | 2,070 | 2,069 | ||
Goodwill acquired | 360 | 0 | |||
Acquisition accounting, transfers and other adjustments | 21 | 1 | |||
Goodwill impairment | 0 | 0 | |||
Goodwill disposed (2) | 0 | ||||
Amount reclassified to assets held for sale | 0 | ||||
Foreign currency translation adjustments, net | 0 | 0 | |||
Goodwill, ending balance | 2,451 | 2,451 | 2,070 | 2,069 | |
Other | |||||
Goodwill [Roll Forward] | |||||
Goodwill, beginning balance | $ 2,894 | 2,894 | 2,337 | ||
Goodwill acquired | 13 | 1,024 | |||
Acquisition accounting, transfers and other adjustments | 6 | 34 | |||
Goodwill impairment | (21) | (455) | (290) | ||
Goodwill disposed (2) | (124) | ||||
Amount reclassified to assets held for sale | 0 | ||||
Foreign currency translation adjustments, net | (63) | 78 | |||
Goodwill, ending balance | $ 2,829 | $ 2,829 | $ 2,894 | $ 2,337 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Goodwill Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
European Pharmaceutical Solutions | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment loss | $ 2,943 | $ 1,299 |
Other | ||
Goodwill [Line Items] | ||
Accumulated goodwill impairment loss | $ 461 | $ 456 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Schedule of Information Regarding Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,664 | $ 6,681 |
Accumulated Amortization | (2,975) | (2,579) |
Net Carrying Amount | $ 3,689 | 4,102 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 12 years | |
Gross Carrying Amount | $ 3,818 | 3,619 |
Accumulated Amortization | (1,801) | (1,550) |
Net Carrying Amount | $ 2,017 | 2,069 |
Service agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 11 years | |
Gross Carrying Amount | $ 1,017 | 1,037 |
Accumulated Amortization | (430) | (386) |
Net Carrying Amount | $ 587 | 651 |
Pharmacy licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 26 years | |
Gross Carrying Amount | $ 513 | 684 |
Accumulated Amortization | (209) | (196) |
Net Carrying Amount | $ 304 | 488 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 13 years | |
Gross Carrying Amount | $ 887 | 932 |
Accumulated Amortization | (232) | (187) |
Net Carrying Amount | $ 655 | 745 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 4 years | |
Gross Carrying Amount | $ 141 | 147 |
Accumulated Amortization | (94) | (84) |
Net Carrying Amount | $ 47 | 63 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period (Years) | 5 years | |
Gross Carrying Amount | $ 288 | 262 |
Accumulated Amortization | (209) | (176) |
Net Carrying Amount | $ 79 | $ 86 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense of intangible assets | $ 485 | $ 503 | $ 444 |
Estimated annual amortization expense, 2020 | 419 | ||
Estimated annual amortization expense, 2021 | 400 | ||
Estimated annual amortization expense, 2022 | 368 | ||
Estimated annual amortization expense, 2023 | 265 | ||
Estimated annual amortization expense, 2024 | 249 | ||
Estimated annual amortization expense, after 2024 | $ 1,988 |
Debt and Financing Activities -
Debt and Financing Activities - Schedule Of Long-Term Debt (Details) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 16, 2018 | Feb. 12, 2018 | Feb. 07, 2018 | |
Debt Instrument [Line Items] | |||||
Total debt | $ 7,595,000,000 | $ 7,880,000,000 | |||
Less: Current portion | (330,000,000) | (1,129,000,000) | |||
Total long-term debt | 7,265,000,000 | 6,751,000,000 | |||
Notes | 2.28% Notes due March 15, 2019 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | 1,100,000,000 | |||
Debt interest rate (percent) | 2.28% | ||||
Debt maturity date | Mar. 15, 2019 | ||||
Notes | 3.65% Notes due November 30, 2020 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 700,000,000 | 0 | |||
Debt interest rate (percent) | 3.65% | ||||
Debt maturity date | Nov. 30, 2020 | ||||
Notes | 4.75% Notes due March 1, 2021 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 323,000,000 | 323,000,000 | |||
Debt interest rate (percent) | 4.75% | 4.75% | |||
Debt maturity date | Mar. 1, 2021 | ||||
Notes | 2.70% Notes due December 15, 2022 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 400,000,000 | 400,000,000 | |||
Debt interest rate (percent) | 2.70% | ||||
Debt maturity date | Dec. 15, 2022 | ||||
Notes | 2.85% Notes due March 15, 2023 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 400,000,000 | 400,000,000 | |||
Debt interest rate (percent) | 2.85% | ||||
Debt maturity date | Mar. 15, 2023 | ||||
Notes | 3.80% Notes due March 15, 2024 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 1,100,000,000 | 1,100,000,000 | |||
Debt interest rate (percent) | 3.80% | ||||
Debt maturity date | Mar. 15, 2024 | ||||
Notes | 7.65% Debentures due March 1, 2027 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 167,000,000 | 167,000,000 | |||
Debt interest rate (percent) | 7.65% | 7.65% | |||
Debt maturity date | Mar. 1, 2027 | ||||
Notes | 3.95% Notes due February 16, 2028 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 600,000,000 | 600,000,000 | |||
Debt interest rate (percent) | 3.95% | 3.95% | |||
Debt maturity date | Feb. 16, 2028 | ||||
Notes | 4.75% Notes due May 30, 2029 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 400,000,000 | 0 | |||
Debt interest rate (percent) | 4.75% | ||||
Debt maturity date | May 30, 2029 | ||||
Notes | 6.00% Notes due March 1, 2041 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 282,000,000 | 282,000,000 | |||
Debt interest rate (percent) | 6.00% | 6.00% | |||
Debt maturity date | Mar. 1, 2041 | ||||
Notes | 4.88% Notes due March 15, 2044 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 411,000,000 | 411,000,000 | |||
Debt interest rate (percent) | 4.88% | 4.88% | |||
Debt maturity date | Mar. 15, 2044 | ||||
Notes | Floating Rate Euro Notes due February 12, 2020 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 280,000,000 | 337,000,000 | |||
Notes | 0.63% Euro Notes due August 17, 2021 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 673,000,000 | 695,000,000 | |||
Debt interest rate (percent) | 0.63% | ||||
Debt maturity date | Aug. 17, 2021 | ||||
Notes | 1.50% Euro Notes due November 17, 2025 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 670,000,000 | 691,000,000 | |||
Debt interest rate (percent) | 1.50% | ||||
Debt maturity date | Nov. 17, 2025 | ||||
Notes | 1.63% Euro Notes due October 30, 2026 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 560,000,000 | 669,000,000 | |||
Debt interest rate (percent) | 1.63% | 1.63% | |||
Debt maturity date | Oct. 30, 2026 | ||||
Notes | 3.13% Sterling Notes due February 17, 2029 | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 586,000,000 | 630,000,000 | |||
Debt interest rate (percent) | 3.13% | ||||
Debt maturity date | Feb. 17, 2029 | ||||
Lease and other obligations | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 43,000,000 | 75,000,000 | |||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 0 |
Debt and Financing Activities_2
Debt and Financing Activities - Long-Term Debt (Details) | Nov. 30, 2018USD ($) | Mar. 26, 2018USD ($) | Feb. 16, 2018USD ($) | Feb. 12, 2018EUR (€) | Feb. 07, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2017USD ($) | Mar. 31, 2017EUR (€) |
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 7,595,000,000 | $ 7,880,000,000 | ||||||||
Proceeds from issuances of long-term debt | 1,099,000,000 | 1,522,000,000 | $ 1,824,000,000 | |||||||
Pre-tax loss on debt extinguishment | 0 | 122,000,000 | 0 | |||||||
Repayments of long-term debt | 1,112,000,000 | $ 2,287,000,000 | 1,601,000,000 | |||||||
Future principal payments of long-term debt in 2020 | 330,000,000 | |||||||||
Future principal payments of long-term debt in 2021 | 1,062,000,000 | |||||||||
Future principal payments of long-term debt in 2022 | 675,000,000 | |||||||||
Future principal payments of long-term debt in 2023 | 801,000,000 | |||||||||
Future principal payments of long-term debt in 2024 | 1,099,000,000 | |||||||||
Future principal payments of long-term debt, thereafter | 3,628,000,000 | |||||||||
Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net proceeds from debt | $ 1,500,000,000 | |||||||||
1.40% Notes due March 15, 2018 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 1.40% | |||||||||
Repayments of long-term debt | $ 500,000,000 | |||||||||
Long-term Debt, Current Maturities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | 330,000,000 | 1,129,000,000 | ||||||||
3.65% Notes due November 30, 2020 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 700,000,000 | 0 | ||||||||
Debt interest rate (percent) | 3.65% | |||||||||
3.65% Notes due November 30, 2020 | Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 3.65% | |||||||||
Aggregate principal amount | $ 700,000,000 | |||||||||
4.75% Notes due May 30, 2029 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 400,000,000 | 0 | ||||||||
Debt interest rate (percent) | 4.75% | |||||||||
4.75% Notes due May 30, 2029 | Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 4.75% | |||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||
Floating Rate Euro Notes due February 12, 2020 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 280,000,000 | 337,000,000 | ||||||||
Aggregate principal amount | € | € 250,000,000 | |||||||||
Basis spread on variable rate (percent) | 0.15% | |||||||||
1.63% Euro Notes due October 30, 2026 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 560,000,000 | 669,000,000 | ||||||||
Debt interest rate (percent) | 1.63% | 1.63% | ||||||||
Aggregate principal amount | € | € 500,000,000 | |||||||||
3.95% Notes due February 16, 2028 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 600,000,000 | 600,000,000 | ||||||||
Debt interest rate (percent) | 3.95% | 3.95% | ||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Notes and Debentures Extinguished February 7, 2018 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate consideration of debt paid to redeem debt | $ 1,050,000,000 | |||||||||
Debt redeemed | $ 936,000,000 | |||||||||
Redemption price (percent) | 100.00% | |||||||||
Debt premiums | $ 99,000,000 | |||||||||
Unpaid interest | 20,000,000 | |||||||||
Pre-tax loss on debt extinguishment | 109,000,000 | |||||||||
After-tax loss on debt extinguishment | 70,000,000 | |||||||||
Amortization of debt premium | 99,000,000 | |||||||||
Write-off of debt issuance costs | $ 10,000,000 | |||||||||
0.63% Euro Notes due August 17, 2021 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 673,000,000 | 695,000,000 | ||||||||
Debt interest rate (percent) | 0.63% | |||||||||
4.50% Euro Bonds due April 26, 2017 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | € | € 500,000,000 | |||||||||
4.00% Euro Bonds due October 18, 2016 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | $ 385,000,000 | |||||||||
4.00% Euro Bonds due October 18, 2016 | Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | € | € 350,000,000 | |||||||||
5.70% Notes due March 1, 2017 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 5.70% | 5.70% | ||||||||
Repayments of long-term debt | $ 500,000,000 | |||||||||
1.29% Notes Due March 10, 2017 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 1.29% | 1.29% | ||||||||
Repayments of long-term debt | $ 700,000,000 | |||||||||
7.50% Notes due February 15, 2019 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt interest rate (percent) | 7.50% | 7.50% | ||||||||
Aggregate consideration of debt paid to redeem debt | $ 317,000,000 | |||||||||
Debt redeemed | $ 302,000,000 | |||||||||
Redemption price (percent) | 100.00% | |||||||||
Debt premiums | $ 13,000,000 | |||||||||
Unpaid interest | 2,000,000 | |||||||||
Pre-tax loss on debt extinguishment | 13,000,000 | |||||||||
After-tax loss on debt extinguishment | $ 8,000,000 | |||||||||
2.28% Notes due March 15, 2019 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 0 | 1,100,000,000 | ||||||||
Debt interest rate (percent) | 2.28% | |||||||||
Repayments of long-term debt | $ 1,100,000,000 | |||||||||
1.50% Euro Notes due November 17, 2025 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 670,000,000 | 691,000,000 | ||||||||
Debt interest rate (percent) | 1.50% | |||||||||
3.13% Sterling Notes due February 17, 2029 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 586,000,000 | 630,000,000 | ||||||||
Debt interest rate (percent) | 3.13% | |||||||||
4.75% Notes due March 1, 2021 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 323,000,000 | 323,000,000 | ||||||||
Debt interest rate (percent) | 4.75% | 4.75% | ||||||||
7.65% Debentures due March 1, 2027 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 167,000,000 | 167,000,000 | ||||||||
Debt interest rate (percent) | 7.65% | 7.65% | ||||||||
6.00% Notes due March 1, 2041 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 282,000,000 | 282,000,000 | ||||||||
Debt interest rate (percent) | 6.00% | 6.00% | ||||||||
4.88% Notes due March 15, 2044 | Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total debt outstanding | $ 411,000,000 | $ 411,000,000 | ||||||||
Debt interest rate (percent) | 4.88% | 4.88% | ||||||||
Notes Due November 30, 2020 and Notes Due May 30, 2029 | Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuances of long-term debt | $ 1,100,000,000 | |||||||||
Redemption price (percent) | 101.00% |
Debt and Financing Activities_3
Debt and Financing Activities - Revolving Credit Facilities (Details) | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Global Facility | |||
Line of Credit Facility [Line Items] | |||
Credit facility borrowing capacity | $ 3,500,000,000 | ||
Original term of credit facility | 5 years | ||
Aggregate sublimit | $ 3,150,000,000 | ||
Debt to capital ratio | 0.65 | ||
Amount borrowed under facility | $ 0 | $ 0 | $ 0 |
Credit facility outstanding | 0 | $ 0 | |
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Committed balance | 9,000,000 | ||
Uncommitted balance | $ 195,000,000 |
Debt and Financing Activities_4
Debt and Financing Activities - Commercial Paper (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Commercial paper issuances | $ 37,264,000,000 | $ 20,542,000,000 |
Commercial paper repaid | 37,264,000,000 | 20,725,000,000 |
Total debt outstanding | 7,595,000,000 | 7,880,000,000 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity (up to) | 3,500,000,000 | |
Total debt outstanding | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||
VIE consolidated assets | $ 896 | $ 819 |
VIE consolidated liabilities | 64 | 92 |
Unconsolidated VIE maximum exposure to loss | $ 1,100 | $ 1,100 |
Pension Benefits - Narrative (D
Pension Benefits - Narrative (Details) | 12 Months Ended | ||
Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of eligible compensation (up to) | 75.00% | ||
Contribution expenses | $ 92,000,000 | $ 82,000,000 | $ 98,000,000 |
First Part Of Pay Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match employee contributions (as a percent) | 100.00% | ||
Employee contributions (as a percent) | 3.00% | ||
Second Part Of Pay Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company match employee contributions (as a percent) | 50.00% | ||
Employee contributions (as a percent) | 2.00% | ||
Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Highest average pay period | 60 months | ||
Plan years prior to freeze date | 15 years | ||
Unexpected actuarial losses (as a percent) (exceeding) | 10.00% | ||
Expected amortization of actuarial loss | $ 11,000,000 | ||
Amortization of actuarial loss from stockholders' equity | 14,000,000 | ||
Expected benefit payments in 2020 | 180,000,000 | ||
Expected benefit payments in 2021 | 64,000,000 | ||
Expected benefit payments in 2022 | 64,000,000 | ||
Expected benefit payments in 2023 | 62,000,000 | ||
Expected benefit payments in 2024 | 62,000,000 | ||
Expected benefit payments in 2025 through 2029 | 327,000,000 | ||
Expected contributions in next fiscal year | $ 146,000,000 | ||
Unit value of cash and cash equivalents (in dollars per share) | $ / shares | $ 1 | ||
United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated pension obligation | $ 121,000,000 | 120,000,000 | |
Actuarial loss | 9,000,000 | 8,000,000 | 11,000,000 |
Prior service credit | 0 | 0 | 0 |
Projected benefit obligation | $ 439,000,000 | $ 485,000,000 | 513,000,000 |
Discount rates | 3.65% | 3.69% | |
Increase (decrease) in basis points | (0.0004) | ||
United States | Pension Plans, Defined Benefit | Equity Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 26.00% | ||
United States | Pension Plans, Defined Benefit | Fixed Income Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 100.00% | 70.00% | |
United States | Pension Plans, Defined Benefit | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations (as a percent) | 4.00% | ||
United States | Pension Plans, Defined Benefit | Unfunded plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 124,000,000 | $ 160,000,000 | |
Non-U.S. Plans | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial loss | 5,000,000 | 6,000,000 | 4,000,000 |
Prior service credit | 0 | 0 | 2,000,000 |
Projected benefit obligation | $ 990,000,000 | $ 1,035,000,000 | 943,000,000 |
Discount rates | 2.13% | 2.35% | |
Increase (decrease) in basis points | (0.0022) | ||
Percentage of total plan contribution - exceeding | 5.00% | ||
Amounts of plan exceeding total plan contribution | $ 27,000,000 | $ 16,000,000 | $ 18,000,000 |
Funded status (as a percent) | 75.00% | ||
Amounts accrued for liability | $ 0 | ||
Non-U.S. Plans | Pension Plans, Defined Benefit | Norwegian Public Service Pension Fund (SPK) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of plan asset value | 35,000,000 | 38,000,000 | |
Non-U.S. Plans | Pension Plans, Defined Benefit | Unfunded plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 293,000,000 | $ 297,000,000 | |
Termination of U.S Defined Benefit Pension Plan and Settlement of Retirement Benefits | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected amortization of actuarial loss | 132,000,000 | ||
Termination of U.S Defined Benefit Pension Plan | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected amortization of actuarial loss | 121,000,000 | ||
Settlement of Executive Retirement Benefits | Retired executive | United States | Pension Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected amortization of actuarial loss | $ 11,000,000 |
Pension Benefits - Schedule Of
Pension Benefits - Schedule Of Net Periodic Expense For Pension Plans (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | $ 0 | $ 3 | $ 5 |
Interest cost on projected benefit obligation | 14 | 14 | 13 |
Expected return on assets | (16) | (19) | (15) |
Amortization of unrecognized actuarial loss and prior service costs | 5 | 6 | 11 |
Curtailment/settlement loss (gain) | 4 | 2 | 0 |
Net periodic pension expense | 7 | 6 | 14 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 15 | 15 | 15 |
Interest cost on projected benefit obligation | 21 | 22 | 23 |
Expected return on assets | (23) | (26) | (26) |
Amortization of unrecognized actuarial loss and prior service costs | 4 | 5 | 4 |
Curtailment/settlement loss (gain) | 1 | 1 | (2) |
Net periodic pension expense | $ 18 | $ 17 | $ 14 |
Pension Benefits - Schedule O_2
Pension Benefits - Schedule Of Changes In Benefit Obligations And Plan Assets (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
United States | |||
Change in benefit obligations | |||
Benefit obligation at beginning of period | $ 485 | $ 513 | |
Service cost | 0 | 3 | $ 5 |
Interest cost | 14 | 14 | 13 |
Actuarial loss (gain) | 4 | 1 | |
Benefits paid | (64) | (44) | |
Expenses paid | 0 | (2) | |
Amendments | 0 | 0 | |
Acquisitions | 0 | 0 | |
Foreign exchange impact and other | 0 | 0 | |
Benefit obligation at end of period | 439 | 485 | 513 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 335 | 293 | |
Actual return on plan assets | 12 | 35 | |
Employer and participant contributions | 39 | 53 | |
Benefits paid | (64) | (44) | |
Expenses paid | 0 | (2) | |
Acquisitions | 0 | 0 | |
Foreign exchange impact and other | 0 | 0 | |
Fair value of plan assets at end of period | 322 | 335 | 293 |
Funded status at end of period | (117) | (150) | |
Amounts recognized on the balance sheet | |||
Assets | 7 | 10 | |
Current liabilities | (115) | (39) | |
Long-term liabilities | (9) | (121) | |
Total | (117) | (150) | |
Non-U.S. Plans | |||
Change in benefit obligations | |||
Benefit obligation at beginning of period | 1,035 | 943 | |
Service cost | 15 | 15 | 15 |
Interest cost | 21 | 22 | 23 |
Actuarial loss (gain) | 35 | (15) | |
Benefits paid | (36) | (42) | |
Expenses paid | (1) | (1) | |
Amendments | 0 | (2) | |
Acquisitions | 1 | 0 | |
Foreign exchange impact and other | (80) | 115 | |
Benefit obligation at end of period | 990 | 1,035 | 943 |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 687 | 623 | |
Actual return on plan assets | 18 | 21 | |
Employer and participant contributions | 23 | 17 | |
Benefits paid | (36) | (42) | |
Expenses paid | (1) | (1) | |
Acquisitions | 0 | 0 | |
Foreign exchange impact and other | (49) | 69 | |
Fair value of plan assets at end of period | 642 | 687 | $ 623 |
Funded status at end of period | (348) | (348) | |
Amounts recognized on the balance sheet | |||
Assets | 20 | 19 | |
Current liabilities | (13) | (7) | |
Long-term liabilities | (355) | (360) | |
Total | $ (348) | $ (348) |
Pension Benefits - Schedule O_3
Pension Benefits - Schedule Of Projected Benefit Obligation, Accumulated Benefit Obligation And Fair Value Of Plan Assets For Pension Plans (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 439 | $ 485 | $ 513 |
Accumulated benefit obligation | 439 | 485 | |
Fair value of plan assets | 322 | 335 | 293 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 990 | 1,035 | 943 |
Accumulated benefit obligation | 949 | 990 | |
Fair value of plan assets | $ 642 | $ 687 | $ 623 |
Pension Benefits - Schedule O_4
Pension Benefits - Schedule Of Amounts Recognized In Accumulated Other Comprehensive Income (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 133 | $ 134 |
Prior service credit | 0 | 0 |
Total | 133 | 134 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 186 | 162 |
Prior service credit | (4) | (5) |
Total | $ 182 | $ 157 |
Pension Benefits - Schedule O_5
Pension Benefits - Schedule Of Other Changes In Accumulated Other Comprehensive Income (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | $ 8 | $ (15) | $ (17) |
Prior service credit | 0 | 0 | 0 |
Amortization of: | |||
Net actuarial loss | (9) | (8) | (11) |
Prior service credit (cost) | 0 | 0 | 0 |
Foreign exchange impact and other | 0 | 0 | 0 |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | (1) | (23) | (28) |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial loss (gain) | 42 | (11) | 47 |
Prior service credit | 0 | (2) | 0 |
Amortization of: | |||
Net actuarial loss | (5) | (6) | (4) |
Prior service credit (cost) | 0 | 0 | 2 |
Foreign exchange impact and other | (12) | 19 | (10) |
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ 25 | $ 0 | $ 35 |
Pension Benefits - Schedule O_6
Pension Benefits - Schedule Of Weighted-Average Assumptions Used to Estimate Net Periodic Pension Expense and Actuarial Present Value of Benefit Obligations (Details) - Pension Plans, Defined Benefit | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
United States | |||
Net periodic pension expense | |||
Discount rates | 3.83% | 3.55% | 3.40% |
Rate of increase in compensation | 4.00% | 4.00% | |
Expected long-term rate of return on plan assets | 5.25% | 6.25% | 6.25% |
Benefit obligation | |||
Discount rates | 3.65% | 3.69% | 3.39% |
Rate of increase in compensation | 4.00% | ||
Non-U.S. Plans | |||
Net periodic pension expense | |||
Discount rates | 2.35% | 2.34% | 2.72% |
Rate of increase in compensation | 3.13% | 2.72% | 2.76% |
Expected long-term rate of return on plan assets | 3.71% | 4.03% | 4.51% |
Benefit obligation | |||
Discount rates | 2.13% | 2.35% | 2.35% |
Rate of increase in compensation | 3.18% | 2.59% | 3.18% |
Pension Benefits - Summary Of P
Pension Benefits - Summary Of Pension Plan Assets Using Fair Value Hierarchy By Asset Class (Details) - Pension Plans, Defined Benefit - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 322 | $ 335 | $ 293 |
United States | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 322 | 217 | |
United States | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 46 | |
United States | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 311 | 171 | |
United States | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and cash equivalents | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 39 | |
United States | Cash and cash equivalents | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 39 | |
United States | Cash and cash equivalents | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Cash and cash equivalents | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Common and preferred stock | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
United States | Common and preferred stock | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
United States | Common and preferred stock | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Common and preferred stock | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity commingled funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity commingled funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity commingled funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity commingled funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Equity commingled funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 54 | |
United States | Government securities | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 85 | |
United States | Government securities | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Government securities | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 85 | |
United States | Government securities | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Corporate bonds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 273 | 58 | |
United States | Corporate bonds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Corporate bonds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 273 | 58 | |
United States | Corporate bonds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Mortgage-backed securities | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
United States | Mortgage-backed securities | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Mortgage-backed securities | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
United States | Mortgage-backed securities | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Asset-backed securities and other | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 21 | |
United States | Asset-backed securities and other | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Asset-backed securities and other | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 21 | |
United States | Asset-backed securities and other | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed income commingled funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed income commingled funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed income commingled funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed income commingled funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Fixed income commingled funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 53 | |
United States | Real estate funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Real estate funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Real estate funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Real estate funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Real estate funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 11 | |
United States | Other | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
United States | Other | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 642 | 687 | $ 623 |
Non-U.S. Plans | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 585 | 598 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 187 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 348 | 407 | |
Non-U.S. Plans | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 4 | |
Non-U.S. Plans | Cash and cash equivalents | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 3 | |
Non-U.S. Plans | Cash and cash equivalents | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 3 | |
Non-U.S. Plans | Cash and cash equivalents | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Cash and cash equivalents | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Common and preferred stock | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Common and preferred stock | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Common and preferred stock | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Common and preferred stock | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Equity commingled funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 144 | 135 | |
Non-U.S. Plans | Equity commingled funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 62 | 41 | |
Non-U.S. Plans | Equity commingled funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 82 | 94 | |
Non-U.S. Plans | Equity commingled funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Equity commingled funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 27 | |
Non-U.S. Plans | Government securities | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 139 | 118 | |
Non-U.S. Plans | Government securities | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 5 | |
Non-U.S. Plans | Government securities | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 135 | 113 | |
Non-U.S. Plans | Government securities | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Corporate bonds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 250 | |
Non-U.S. Plans | Corporate bonds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 114 | |
Non-U.S. Plans | Corporate bonds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 136 | |
Non-U.S. Plans | Corporate bonds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Mortgage-backed securities | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Mortgage-backed securities | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Mortgage-backed securities | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Mortgage-backed securities | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Asset-backed securities and other | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Asset-backed securities and other | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Asset-backed securities and other | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Asset-backed securities and other | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Fixed income commingled funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 241 | 64 | |
Non-U.S. Plans | Fixed income commingled funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 125 | 0 | |
Non-U.S. Plans | Fixed income commingled funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 110 | 64 | |
Non-U.S. Plans | Fixed income commingled funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 0 | |
Non-U.S. Plans | Fixed income commingled funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Real estate funds | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5 | 2 | |
Non-U.S. Plans | Real estate funds | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 2 | |
Non-U.S. Plans | Real estate funds | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 0 | |
Non-U.S. Plans | Real estate funds | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Real estate funds | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Other | Investment Assets at Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 26 | |
Non-U.S. Plans | Other | Investment Assets at Fair Value | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 22 | |
Non-U.S. Plans | Other | Investment Assets at Fair Value | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non-U.S. Plans | Other | Investment Assets at Fair Value | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 4 | |
Non-U.S. Plans | Other | Assets held at NAV practical expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 49 | $ 62 |
Postretirement Benefits - Sched
Postretirement Benefits - Schedule Of Net Periodic Expense (Income) For Postretirement Welfare Benefits (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 2 | 2 | 2 |
Amortization of unrecognized actuarial gain and prior service credit | (5) | (6) | (1) |
Net periodic pension expense | $ (2) | $ (3) | $ 2 |
Postretirement Benefits - Sch_2
Postretirement Benefits - Schedule Of Changes In Benefit Obligations For Postretirement Welfare Plans (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Change in benefit obligations | |||
Benefit obligation at beginning of period | $ 78 | $ 82 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 2 | 2 | 2 |
Actuarial gain | (3) | (1) | |
Benefits paid | (5) | (6) | |
Benefit obligation at end of period | $ 73 | $ 78 | $ 82 |
Postretirement Benefits - Narra
Postretirement Benefits - Narrative (Details) - Other Postretirement Benefits Plan - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial gains | $ 7 | $ 8 | |
Net prior service credits for post retirement plans | 9 | 11 | |
Net actuarial gains for changes in benefit obligations | 1 | 3 | |
Net prior service credits | 2 | $ 3 | |
Expected amortization of actuarial gain from stockholders' equity in 2020 | 5 | ||
Amortization of actuarial gain from stockholders' equity | 5 | ||
Expected benefit payments in 2020 | 7 | ||
Expected benefit payments in 2021 | 7 | ||
Expected benefit payments in 2022 | 7 | ||
Expected benefit payments in 2023 | 7 | ||
Expected benefit payments in 2024 | 6 | ||
Other postretirement plan expected future benefit payments, 2025 through 2029 | 26 | ||
Expected contributions for postretirement benefit plans in 2018 | $ 7 | ||
Weighted-average discount rates used to estimate postretirement welfare benefit expenses | 3.79% | 3.83% | 3.68% |
Weighted-average discount rates for actuarial present value of benefit obligations | 3.92% | 3.92% | 3.82% |
Amortization period | 3 years | ||
Assumed health care cost trend in measuring accumulated postretirement benefit obligation for prescription drugs (as a percent) | 3.00% | 3.00% |
Hedging Activities - Narrative
Hedging Activities - Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2019CAD ($) | Mar. 31, 2019EUR (€) | Nov. 30, 2018CAD ($) | Nov. 30, 2018GBP (£) | Mar. 31, 2018GBP (£) | |
Derivative [Line Items] | ||||||||
Total debt outstanding | $ 7,595 | $ 7,880 | ||||||
Gains (losses) from net investment hedges | 259 | (268) | $ (13) | |||||
Gains (losses) recorded in other comprehensive income | 24 | (30) | (19) | |||||
Derivatives Designated for Hedge Accounting | ||||||||
Derivative [Line Items] | ||||||||
Gains (losses) recorded in other comprehensive income | 28 | (30) | $ (19) | |||||
Forward Contracts | Derivatives Designated for Hedge Accounting | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 81 | 162 | ||||||
Foreign Exchange Contract | Derivatives Not Designated for Hedge Accounting | United Kingdom, Pounds | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 28 | 29 | ||||||
Currency Swap | Derivatives Designated for Hedge Accounting | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | 2,908 | 3,412 | ||||||
Net Investment Hedging | ||||||||
Derivative [Line Items] | ||||||||
Gains (losses) recorded in other comprehensive income | $ 53 | $ (7) | ||||||
Net Investment Hedging | Cross Currency Swap | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 499,000,000 | £ 432,000,000 | ||||||
Net Investment Hedging | November 2018 Cross Currency Swaps | Derivatives Designated for Hedge Accounting | ||||||||
Derivative [Line Items] | ||||||||
Derivative, notional amount | $ 1,000,000,000 | £ 500,000,000 | ||||||
Euro Denominated Notes | Notes | ||||||||
Derivative [Line Items] | ||||||||
Total debt outstanding | € | € 1,950 | |||||||
British Pound Sterling Denominated Notes | Notes | ||||||||
Derivative [Line Items] | ||||||||
Total debt outstanding | £ | £ 450,000,000 |
Hedging Activities - Schedule o
Hedging Activities - Schedule of Information Regarding Fair Value of Derivatives on a Gross Basis (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Derivatives designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | $ 108 | $ 29 |
Fair value of derivative liability, gross fair value | 51 | 229 |
Derivatives not designated for hedge accounting | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 0 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Currency Swap | Derivatives designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 0 |
Derivative liability, notional amount | 0 | 504 |
Currency Swap | Derivatives designated for hedge accounting | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 91 | 0 |
Currency Swap | Derivatives designated for hedge accounting | Other Noncurrent Assets/Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability, gross fair value | 33 | 222 |
Derivative liability, notional amount | 5,283 | 3,508 |
Currency Swap | Derivatives designated for hedge accounting | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability, gross fair value | 18 | 7 |
Foreign Exchange Contract | Derivatives designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 17 | 15 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 81 | 81 |
Foreign Exchange Contract | Derivatives designated for hedge accounting | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 14 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 0 | 81 |
Foreign Exchange Contract | Derivatives not designated for hedge accounting | Prepaid expenses and other | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 0 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative asset, notional amount | 14 | 13 |
Foreign Exchange Contract | Derivatives not designated for hedge accounting | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset, gross fair value | 0 | 0 |
Fair value of derivative liability, gross fair value | 0 | 0 |
Derivative liability, notional amount | $ 14 | $ 16 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount of liabilities | $ 7,600,000,000 | $ 7,900,000,000 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on a nonrecurring basis | 0 | |
Fair Value, Measurements, Nonrecurring | Intangible Asset and Store Assets Impairment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Pre-tax charge | 245,000,000 | 479,000,000 |
Restructuring charges, after tax | 207,000,000 | 443,000,000 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value of liabilities | 7,900,000,000 | 8,100,000,000 |
Level 1 | Fair Value, Measurements, Recurring | Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 1,205,000,000 | $ 799,000,000 |
Lease Obligations - Schedule Of
Lease Obligations - Schedule Of Future Minimum Rental Payments For Operating Leases (Details) $ in Millions | Mar. 31, 2019USD ($) |
Noncancelable Operating Leases | |
2020 | $ 454 |
2021 | 397 |
2022 | 343 |
2023 | 290 |
2024 | 236 |
Thereafter | 936 |
Total minimum lease payments | $ 2,656 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Future minimum lease payments for sale leaseback transaction | $ 49 | ||
Minimum sublease income, due under future noncancelable subleases | 133 | ||
Rent expense | $ 576 | $ 568 | $ 474 |
Renewal option increments for leases (in years) | 5 years | ||
Building | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 1 year | ||
Building | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 15 years | ||
Equipment | Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 1 year | ||
Equipment | Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease term | 6 years |
Financial Guarantees and Warr_2
Financial Guarantees and Warranties (Details) | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Guarantor Obligations [Line Items] | |
Guarantee obligations, expiring in 2020 | $ 195,000,000 |
Guarantee obligations, expiring in 2021 | 22,000,000 |
Guarantee obligations, expiring in 2022 | 9,000,000 |
Guarantee obligations, expiring in 2023 | 15,000,000 |
Guarantee obligations, expiring in 2024 | 35,000,000 |
Guarantee obligations, expiring after 2024 | 90,000,000 |
Guarantee Obligations Inventory Repurchase Guarantees | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure | 251,000,000 |
Guarantee Obligations Customers Debt | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, maximum exposure | 115,000,000 |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Letters of credit outstanding | $ 165,000,000 |
Minimum | Guarantee Obligations Inventory Repurchase Guarantees | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 1 year |
Minimum | Guarantee Obligations Customers Debt | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 1 year |
Maximum | Guarantee Obligations Inventory Repurchase Guarantees | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 2 years |
Maximum | Guarantee Obligations Customers Debt | |
Guarantor Obligations [Line Items] | |
Debt guarantee period | 10 years |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | May 03, 2019USD ($)installment | Mar. 19, 2019 | Feb. 25, 2019 | Jan. 08, 2019municipality | Dec. 29, 2018county | Dec. 12, 2018defendant | Apr. 03, 2018statecity | Dec. 30, 2017investment_fund | Dec. 29, 2017investment_fund | Oct. 17, 2017case | Apr. 16, 2013defendantstaterelator | Sep. 30, 2017state | Jan. 31, 2017USD ($) | Mar. 31, 2019USD ($)sitecase | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2019USD ($)sitestate_attorneystatecase | Aug. 31, 2018case | Apr. 30, 2018USD ($) | Oct. 09, 2017case |
Loss Contingencies [Line Items] | |||||||||||||||||||||
Payments for legal settlements | $ 0 | $ 0 | $ 150 | ||||||||||||||||||
In re McKesson Corporation Derivative Litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of actions consolidated | case | 2 | ||||||||||||||||||||
Police & Fire Ret. Sys. of the City of Detroit v. McKesson Corporation, et al., Amalgamated Bank v. McKesson Corporation, et al., and Greene v. McKesson Corporation, et al. | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of lawsuits filed | case | 3 | ||||||||||||||||||||
United States ex rel. Manchester v. Purdue Pharma, L.P., et al | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Period within which party can be substituted | 90 days | ||||||||||||||||||||
Polygon European Equity Opportunity Master Fund et al. v. McKesson Europe Holdings GmbH & Co. KGaA | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of plaintiffs | investment_fund | 2 | ||||||||||||||||||||
Davidson Kempner International (BVI) Ltd. et al. v. McKesson Europe Holdings GmbH & Co. KGaA | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of plaintiffs | investment_fund | 4 | ||||||||||||||||||||
United States ex rel. Nguyen v. McKesson Corp., et al | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of states filed on behalf of | state | 30 | ||||||||||||||||||||
Granted period on motion to stay | 90 days | ||||||||||||||||||||
Number of cities filed on behalf of | city | 2 | ||||||||||||||||||||
The Great Atlantic & Pacific Tea Company, Inc., et al | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Alleged preferential transfers sought to be recovered | $ 68 | ||||||||||||||||||||
In re McKesson Corporation Stockholder Derivative Litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of actions consolidated | case | 4 | ||||||||||||||||||||
Drug Enforcement Administration, Department of Justice and U.S. Attorneys' Investigative Claims | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Payments for legal settlements | $ 150 | ||||||||||||||||||||
Litigation pre-tax charge | $ 150 | ||||||||||||||||||||
Anti-Kickback Claim | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of states filed on behalf of | state | 21 | ||||||||||||||||||||
Number of relators | relator | 2 | ||||||||||||||||||||
Number of additional defendants | defendant | 5 | ||||||||||||||||||||
Civil Investigative Demands by the U.S. Attorney’s Office for the Eastern District of New York | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of lawsuits filed | case | 2 | ||||||||||||||||||||
Investigation into Factors Contributing to Increase in Opioid-related Hospitalizations and Deaths | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of complaints served | case | 240 | 240 | |||||||||||||||||||
Number of states filed on behalf of | state | 40 | 37 | |||||||||||||||||||
Number of plaintiffs | state_attorney | 16 | ||||||||||||||||||||
Number of dismissed cases | 21 | 8 | |||||||||||||||||||
Investigation into Factors Contributing to Increase in Opioid-related Hospitalizations and Deaths | In re: National Prescription Opiate Litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of complaints served | case | 1,700 | 1,700 | |||||||||||||||||||
New York Opioid Statute | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Opioid Stewardship Act, Annual Surcharge on Licensed Manufacturers and Distributors of Opioids | $ 100 | ||||||||||||||||||||
Environmental Litigation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of sites | site | 5 | 5 | |||||||||||||||||||
Remediation costs | $ 10 | $ 10 | |||||||||||||||||||
Hazardous substance sites, number | site | 14 | ||||||||||||||||||||
Number of sites selected for preferred remediation | site | 1 | 1 | |||||||||||||||||||
Estimated environmental assessment and cleanup costs | $ 1,380 | ||||||||||||||||||||
Estimated loss | $ 23.1 | $ 23.1 | |||||||||||||||||||
Environmental Litigation | Minimum | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Time frame of disbursements | Apr. 1, 2019 | ||||||||||||||||||||
Environmental Litigation | Maximum | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Time frame of disbursements | Mar. 31, 2049 | ||||||||||||||||||||
Subsequent Event | Investigation into Factors Contributing to Increase in Opioid-related Hospitalizations and Deaths | State of West Virginia ex rel. Patrick Morrisey v. McKesson Corp | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Payments for legal settlements | $ 14.5 | ||||||||||||||||||||
Number of installments | installment | 5 | ||||||||||||||||||||
Amount to be paid in each installment | $ 4.5 | ||||||||||||||||||||
Installment payment period | 5 years | ||||||||||||||||||||
Officer [Member] | Evanston Police Pension Fund v. McKesson Corporation | |||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||
Number of additional defendants | defendant | 2 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 8 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||||
Jul. 31, 2018$ / shares | Mar. 31, 2018USD ($)shares | Aug. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Apr. 30, 2017shares | Mar. 31, 2017USD ($)shares | Apr. 30, 2017$ / sharesshares | Jun. 30, 2018$ / sharesshares | Mar. 31, 2019USD ($)vote$ / sharesshares | Mar. 31, 2018USD ($)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2019USD ($)vote$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | May 31, 2018USD ($) | Oct. 31, 2016USD ($) | Mar. 31, 2016USD ($) | |
Dividends Payable [Line Items] | ||||||||||||||||||
Number of votes | vote | 1 | 1 | ||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 1.51 | $ 1.30 | $ 1.12 | |||||||||||||||
Additional authorized | $ 4,000,000,000 | $ 4,000,000,000 | ||||||||||||||||
Shares bought (in shares) | shares | 13.5 | 10.5 | 15.5 | |||||||||||||||
Shares repurchased | $ 1,627,000,000 | $ 1,650,000,000 | $ 2,250,000,000 | |||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 143.66 | $ 130.72 | $ 151.06 | $ 141.16 | ||||||||||||||
Total authorization outstanding for repurchases of common stock | $ 1,096,000,000 | $ 2,746,000,000 | $ 3,469,000,000 | $ 1,096,000,000 | $ 1,096,000,000 | $ 3,469,000,000 | $ 1,096,000,000 | $ 2,746,000,000 | $ 996,000,000 | |||||||||
Repurchase of common stock | $ 1,627,000,000 | 1,650,000,000 | 2,250,000,000 | |||||||||||||||
Treasury stock retired (in shares) | shares | 5 | |||||||||||||||||
Retirement of common stock | $ 542,000,000 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | (207,000,000) | 604,000,000 | ||||||||||||||||
Net foreign currency translation gains (losses) | (198,000,000) | 609,000,000 | (659,000,000) | |||||||||||||||
Gains (losses) from net investment hedges | $ 259,000,000 | $ (268,000,000) | $ (13,000,000) | |||||||||||||||
Minimum | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.34 | |||||||||||||||||
Maximum | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.39 | |||||||||||||||||
Treasury Stock | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Repurchase of common stock (in shares) | shares | 13 | 11 | 16 | |||||||||||||||
Repurchase of common stock | $ 1,777,000,000 | $ 1,614,000,000 | $ 2,200,000,000 | |||||||||||||||
Retained Earnings | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Retirement of common stock | 472,000,000 | |||||||||||||||||
Additional Paid-in Capital | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Repurchase of common stock | (150,000,000) | 36,000,000 | 50,000,000 | |||||||||||||||
Retirement of common stock | 70,000,000 | |||||||||||||||||
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (431,000,000) | 804,000,000 | (644,000,000) | |||||||||||||||
Net foreign currency translation gains (losses) | (431,000,000) | 804,000,000 | $ (624,000,000) | |||||||||||||||
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Net foreign currency translation gains (losses) | (61,000,000) | 189,000,000 | ||||||||||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Including Portion Attributable to Noncontrolling Interest | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ (5,000,000) | $ (4,000,000) | ||||||||||||||||
Open Market Transactions | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 144.43 | $ 140.96 | ||||||||||||||||
Repurchase of common stock (in shares) | shares | 3.5 | 14.1 | ||||||||||||||||
Repurchase of common stock | $ 500,000,000 | $ 2,000,000,000 | ||||||||||||||||
Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Additional authorized | $ 250,000,000 | |||||||||||||||||
Shares bought (in shares) | shares | 0.3 | 1.4 | 1.7 | 2.1 | ||||||||||||||
Shares repurchased | $ 500,000,000 | $ 400,000,000 | $ 250,000,000 | $ 250,000,000 | ||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 143.19 | $ 117.98 | ||||||||||||||||
June 2017 Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 1.5 | |||||||||||||||||
August 2017 Accelerated Share Repurchase | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 2.7 | |||||||||||||||||
March 2018 ASR Program | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Shares bought (in shares) | shares | 2.5 | 1 | ||||||||||||||||
May 2018 Share Repurchase Program | ||||||||||||||||||
Dividends Payable [Line Items] | ||||||||||||||||||
Additional authorized | 4,000,000,000 | |||||||||||||||||
Shares bought (in shares) | shares | 10.4 | |||||||||||||||||
Shares repurchased | $ 1,400,000,000 | |||||||||||||||||
Average price paid per share (in dollars per share) | $ / shares | $ 132.14 | |||||||||||||||||
Total authorization outstanding for repurchases of common stock | $ 5,100,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | May 31, 2018 | Oct. 31, 2016 | |
Stockholders' Equity Note [Abstract] | ||||||
Total Number of Shares Purchased (in shares) | 13.5 | 10.5 | 15.5 | |||
Average price paid per share (in dollars per share) | $ 143.66 | $ 130.72 | $ 151.06 | $ 141.16 | ||
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||
Beginning balance | $ 1,096,000,000 | $ 1,096,000,000 | $ 2,746,000,000 | $ 996,000,000 | ||
Additional authorized | $ 4,000,000,000 | $ 4,000,000,000 | ||||
Shares repurchased | (1,627,000,000) | (1,650,000,000) | (2,250,000,000) | |||
Ending balance | $ 3,469,000,000 | $ 1,096,000,000 | $ 2,746,000,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | $ (207) | $ 604 | |
Amounts reclassified to earnings | 9 | 5 | |
Other Comprehensive Income (Loss), Net of Tax | (198) | 609 | $ (659) |
Foreign Currency Translation Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (431) | 804 | (644) |
Amounts reclassified to earnings | 0 | 0 | 20 |
Other Comprehensive Income (Loss), Net of Tax | (431) | 804 | (624) |
Tax expense (benefit) | 0 | 0 | 1 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Losses on Net Investment Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 241 | (180) | (8) |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 241 | (180) | (8) |
Tax expense (benefit) | (71) | 95 | 5 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 24 | (30) | (19) |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 24 | (30) | (19) |
Tax expense (benefit) | (4) | 9 | 0 |
Reclassification, tax expense | 0 | 0 | 0 |
Net actuarial gain (loss) and prior service credit (cost) arising during the period, net of income tax (expense) benefit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | (51) | 25 | (20) |
Tax expense (benefit) | 5 | (2) | (4) |
Reclassification, tax expense | 0 | (2) | (4) |
Amortization of actuarial gain, prior service cost and transition obligation, net of income tax (expense) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 9 | 5 | 9 |
Changes in Retirement-Related Benefit Plans, Foreign Currency Translation Adjustments and Other | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications | 10 | (15) | 3 |
Tax expense (benefit) | 0 | 0 | 0 |
Reclassification, tax expense | 0 | 0 | 0 |
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ (32) | $ 15 | $ (8) |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | $ 10,057 | $ 11,273 | $ 9,008 |
Other comprehensive income (loss) before reclassifications | (207) | 604 | |
Amounts reclassified to earnings | 9 | 5 | |
Other Comprehensive Income (Loss), Net of Tax | (198) | 609 | (659) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (66) | 185 | |
Other comprehensive income (loss) attributable to McKesson | (132) | 424 | (580) |
Ending balance | 8,287 | 10,057 | 11,273 |
Foreign Currency Translation Adjustments, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (1,258) | (1,873) | |
Other comprehensive income (loss) before reclassifications | (431) | 804 | (644) |
Amounts reclassified to earnings | 0 | 0 | 20 |
Other Comprehensive Income (Loss), Net of Tax | (431) | 804 | (624) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (61) | 189 | |
Other comprehensive income (loss) attributable to McKesson | (370) | 615 | |
Ending balance | (1,628) | (1,258) | (1,873) |
Unrealized Losses on Net Investment Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (188) | (8) | |
Other comprehensive income (loss) before reclassifications | 241 | (180) | (8) |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 241 | (180) | (8) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to McKesson | 241 | (180) | |
Ending balance | 53 | (188) | (8) |
Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (61) | (31) | |
Other comprehensive income (loss) before reclassifications | 24 | (30) | (19) |
Amounts reclassified to earnings | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 24 | (30) | (19) |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | 0 | 0 | |
Other comprehensive income (loss) attributable to McKesson | 24 | (30) | |
Ending balance | (37) | (61) | (31) |
Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (210) | (229) | |
Other comprehensive income (loss) before reclassifications | (41) | 10 | |
Amounts reclassified to earnings | 9 | 5 | |
Other Comprehensive Income (Loss), Net of Tax | (32) | 15 | |
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests | (5) | (4) | |
Other comprehensive income (loss) attributable to McKesson | (27) | 19 | |
Ending balance | (237) | (210) | (229) |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Change, Net of Tax [Roll Forward] | |||
Beginning balance | (1,717) | (2,141) | (1,561) |
Other comprehensive income (loss) attributable to McKesson | (132) | 424 | (580) |
Ending balance | $ (1,849) | $ (1,717) | $ (2,141) |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
California Foundation | Other accrued liabilities | ||||
Related Party Transaction [Line Items] | ||||
Pledge payable balance | $ 100 | $ 100 | ||
Investee | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 137 | 154 | $ 112 | |
Accounts receivable, related parties, current | 15 | $ 13 | $ 15 | |
Selling, Distribution and Administrative Expenses | California Foundation | ||||
Related Party Transaction [Line Items] | ||||
Pre-tax charitable contribution expense | 100 | |||
After-tax charitable contribution expense | $ 64 |
Sale-Leaseback (Details)
Sale-Leaseback (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Leases [Abstract] | |
Net cash proceeds from sale-leaseback transaction | $ 223 |
Pre-tax gain recognized on sale-leaseback transaction | 15 |
Deferred pre-tax gain on sale-leaseback transaction | $ 48 |
Segments of Business - Narrativ
Segments of Business - Narrative (Details) $ in Millions, $ in Millions | May 23, 2018USD ($) | May 23, 2018CAD ($) | Mar. 31, 2019USD ($)country | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD ($) | Mar. 31, 2019USD ($)country | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Segment Reporting Information [Line Items] | |||||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||||
Credits associated with last-in, first-out inventory method | $ 146 | $ 21 | $ 22 | $ 21 | $ 94 | $ 2 | $ 29 | $ (26) | $ 210 | $ 99 | $ 7 | ||||
Net cash proceeds from settlements | 63 | 104 | 35 | ||||||||||||
Gain from sale of equity method investment, pre-tax | 0 | ||||||||||||||
Goodwill impairment charge | 1,797 | 1,738 | 290 | ||||||||||||
Long-lived asset impairment charges, before tax | $ 190 | 20 | |||||||||||||
Loss from equity method investment in Change Healthcare | (23) | 90 | 61 | $ 120 | |||||||||||
Pre-tax gain on sale of business | 0 | 109 | 0 | ||||||||||||
Employee Severance and Other Exit Related Costs | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax charge | 94 | ||||||||||||||
Employee Severance | Strategic Growth Initiative Plan - Relocation of Corporate Headquarters | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax charge | 33 | ||||||||||||||
Intangible Asset and Store Assets Impairment | Fiscal 2018 McKesson Europe Plan | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Long-lived asset impairment charges, before tax | 257 | 189 | |||||||||||||
Severance and Lease Exit Costs | Fiscal 2018 McKesson Europe Plan | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax charge | 18 | 74 | |||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax gain on sale of business | $ 109 | 109 | |||||||||||||
U.S. Pharmaceutical and Specialty Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gain from sale of equity method investment, pre-tax | 43 | ||||||||||||||
Goodwill impairment charge | 0 | 0 | |||||||||||||
U.S. Pharmaceutical and Specialty Solutions | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net cash proceeds from settlements | $ 202 | 144 | |||||||||||||
European Pharmaceutical Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Number of countries in which entity operates | country | 13 | 13 | |||||||||||||
Goodwill impairment charge | $ 1,206 | 570 | $ 1,776 | 1,283 | |||||||||||
Long-lived asset impairment charges, before tax | 210 | 446 | |||||||||||||
Loss from equity method investment in Change Healthcare | (43) | (32) | (30) | ||||||||||||
Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gain from sale of equity method investment, pre-tax | 56 | 56 | |||||||||||||
Goodwill impairment charge | 21 | 455 | 290 | ||||||||||||
Pre-tax charge | 91 | ||||||||||||||
Other | Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 290 | ||||||||||||||
Pre-tax credit representing reduction in TRA liability | 46 | ||||||||||||||
Medical-Surgical Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 0 | 0 | |||||||||||||
Distribution Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gain from sale of equity method investment, pre-tax | $ 43 | ||||||||||||||
Technology Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 290 | ||||||||||||||
Rexall Health | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment charge | $ 455 | ||||||||||||||
Long-lived asset impairment charges, before tax | 35 | 35 | 488 | ||||||||||||
Rexall Health | Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 455 | ||||||||||||||
Corporate Joint Venture | Core MTS Businesses | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Ownership interest in Joint Venture (percent) | 70.00% | ||||||||||||||
Change Healthcare | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Loss from equity method investment in Change Healthcare | $ 32 | $ 50 | 56 | $ 56 | 194 | 248 | 0 | ||||||||
Change Healthcare | Other | Operating Segments | Core MTS Businesses | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Gain from sale of equity method investment, pre-tax | 3,947 | ||||||||||||||
Pre-tax gain on sale of business | $ 3,900 | ||||||||||||||
Change Healthcare | Technology Solutions | Operating Segments | Core MTS Businesses | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Pre-tax gain on sale of business | 37 | ||||||||||||||
Change Healthcare | Corporate Joint Venture | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Ownership interest in Joint Venture (percent) | 70.00% | ||||||||||||||
Pre-tax credit representing reduction in TRA liability | $ (90) | 90 | |||||||||||||
Loss from equity method investment in Change Healthcare | 194 | $ 248 | |||||||||||||
Rexall Health | Third Party Seller of Rexall Health | CANADA | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Proceeds from escrow settlement related to previous Acquisition | $ 97 | $ 125 | $ 119 | $ 147 | $ 97 | ||||||||||
Services | Product Concentration Risk | Revenues | U.S. Pharmaceutical and Specialty Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Percentage of total revenue (less than) (as a percent) | 1.00% | 1.00% | 1.00% | ||||||||||||
Services | Product Concentration Risk | Revenues | European Pharmaceutical Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Percentage of total revenue (less than) (as a percent) | 10.00% | 10.00% | 10.00% | ||||||||||||
Services | Product Concentration Risk | Revenues | Medical-Surgical Solutions | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Percentage of total revenue (less than) (as a percent) | 1.00% | 1.00% | 1.00% |
Segments of Business - Schedule
Segments of Business - Schedule Of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | |||||||||||
Revenues | $ 52,429 | $ 56,208 | $ 53,075 | $ 52,607 | $ 51,628 | $ 53,617 | $ 52,061 | $ 51,051 | $ 214,319 | $ 208,357 | $ 198,533 |
Operating profit | |||||||||||
Corporate Expenses, Net | (694) | (564) | (377) | ||||||||
Loss on Debt Extinguishment | 0 | (122) | 0 | ||||||||
Interest Expense | (264) | (283) | (308) | ||||||||
Income from Continuing Operations Before Income Taxes | 610 | 239 | 6,891 | ||||||||
Depreciation and amortization | |||||||||||
Total | 949 | 951 | 910 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 426 | 405 | 404 | ||||||||
United States | |||||||||||
Revenues | |||||||||||
Revenues | 176,296 | 169,943 | 164,428 | ||||||||
Foreign | |||||||||||
Revenues | |||||||||||
Revenues | 38,023 | 38,414 | 34,105 | ||||||||
Operating Segments | |||||||||||
Revenues | |||||||||||
Revenues | 214,319 | 208,357 | 198,533 | ||||||||
Operating profit | |||||||||||
Operating income | 1,568 | 1,208 | 7,576 | ||||||||
Corporate | |||||||||||
Depreciation and amortization | |||||||||||
Total | 122 | 111 | 110 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 75 | 99 | 98 | ||||||||
U.S. Pharmaceutical and Specialty Solutions | Operating Segments | |||||||||||
Revenues | |||||||||||
Revenues | 167,763 | 162,587 | 155,236 | ||||||||
Operating profit | |||||||||||
Operating income | 2,697 | 2,535 | 2,488 | ||||||||
Depreciation and amortization | |||||||||||
Total | 238 | 210 | 235 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 88 | 126 | 109 | ||||||||
European Pharmaceutical Solutions | Operating Segments | |||||||||||
Revenues | |||||||||||
Revenues | 27,242 | 27,320 | 24,847 | ||||||||
Operating profit | |||||||||||
Operating income | (1,978) | (1,681) | 173 | ||||||||
Depreciation and amortization | |||||||||||
Total | 257 | 296 | 315 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 85 | 104 | 125 | ||||||||
Medical-Surgical Solutions | Operating Segments | |||||||||||
Revenues | |||||||||||
Revenues | 7,618 | 6,611 | 6,244 | ||||||||
Operating profit | |||||||||||
Operating income | 455 | 461 | 401 | ||||||||
Depreciation and amortization | |||||||||||
Total | 118 | 97 | 101 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | 110 | 34 | 9 | ||||||||
Other | Operating Segments | |||||||||||
Revenues | |||||||||||
Revenues | 11,696 | 11,839 | 12,206 | ||||||||
Operating profit | |||||||||||
Operating income | 394 | (107) | 4,514 | ||||||||
Depreciation and amortization | |||||||||||
Total | 214 | 237 | 149 | ||||||||
Expenditures for long-lived assets | |||||||||||
Total | $ 68 | $ 42 | $ 63 |
Segments of Business - Segment
Segments of Business - Segment Assets and Property, Plant and Equipment, Net by Geographical Area (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Segment assets | ||
Total | $ 59,672 | $ 60,381 |
Property, plant and equipment, net | ||
Total | 2,548 | 2,464 |
United States | ||
Property, plant and equipment, net | ||
Total | 1,698 | 1,529 |
Foreign | ||
Property, plant and equipment, net | ||
Total | 850 | 935 |
Operating Segments | U.S. Pharmaceutical and Specialty Solutions | ||
Segment assets | ||
Total | 32,310 | 31,431 |
Operating Segments | European Pharmaceutical Solutions | ||
Segment assets | ||
Total | 7,829 | 10,467 |
Operating Segments | Medical-Surgical Solutions | ||
Segment assets | ||
Total | 5,260 | 4,243 |
Operating Segments | Other | ||
Segment assets | ||
Total | 11,006 | 11,509 |
Corporate | ||
Segment assets | ||
Total | $ 3,267 | $ 2,731 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Narrative (Details) $ in Millions, $ in Millions | May 23, 2018USD ($) | May 23, 2018CAD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017CAD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) |
Quarterly Financial Information [Line Items] | |||||||||||||||
Pretax charges (credits) related to last-in-first-out method of accounting for inventory | $ (146) | $ (21) | $ (22) | $ (21) | $ (94) | $ (2) | $ (29) | $ 26 | $ (210) | $ (99) | $ (7) | ||||
Net cash proceeds from settlements | 63 | 104 | 35 | ||||||||||||
Goodwill impairment charge | 1,797 | 1,738 | 290 | ||||||||||||
Long-lived asset impairment charges, before tax | 190 | 20 | |||||||||||||
Proportionate share of income (loss) from Change Healthcare | 23 | (90) | (61) | $ (120) | |||||||||||
Goodwill impairment, net of tax | 1,738 | ||||||||||||||
Pre-tax gain on sale of business | 0 | 109 | 0 | ||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Enterprise Information Solutions | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Pre-tax gain on sale of business | 109 | 109 | |||||||||||||
Gain from sale of business, after tax | $ 30 | ||||||||||||||
Intangible Asset and Store Assets Impairment | Fiscal 2018 McKesson Europe Plan | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Long-lived asset impairment charges, before tax | 257 | 189 | |||||||||||||
European Pharmaceutical Solutions | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 1,206 | 570 | 1,776 | 1,283 | |||||||||||
Long-lived asset impairment charges, before tax | 210 | 446 | |||||||||||||
Proportionate share of income (loss) from Change Healthcare | 43 | 32 | 30 | ||||||||||||
Goodwill impairment, net of tax | 1,756 | 1,283 | |||||||||||||
Technology Solutions | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 290 | ||||||||||||||
Goodwill impairment, net of tax | 282 | ||||||||||||||
Change Healthcare | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Proportionate share of income (loss) from Change Healthcare | $ (32) | (50) | (56) | $ (56) | (194) | (248) | 0 | ||||||||
Operating Segments | Technology Solutions | Core MTS Businesses | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Gain from sale of business, after tax | $ 3,000 | ||||||||||||||
Operating Segments | Change Healthcare | Technology Solutions | Core MTS Businesses | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Pre-tax gain on sale of business | 37 | ||||||||||||||
Gain from sale of business, after tax | 22 | ||||||||||||||
CANADA | Rexall Health | Third Party Seller of Rexall Health | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Proceeds from escrow settlement related to previous Acquisition | $ 97 | $ 125 | $ 119 | $ 147 | 97 | ||||||||||
Mckesson Europe Reporting Unit | European Pharmaceutical Solutions | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Goodwill impairment charge | 933 | 350 | |||||||||||||
Goodwill impairment, net of tax | $ 350 | ||||||||||||||
Rexall Health | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Goodwill impairment charge | $ 455 | ||||||||||||||
Long-lived asset impairment charges, before tax | $ 35 | 35 | 488 | ||||||||||||
Corporate Joint Venture | Change Healthcare | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Proportionate share of income (loss) from Change Healthcare | (194) | $ (248) | |||||||||||||
Pre-tax credit representing reduction in TRA liability | $ 90 | $ (90) |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Schedule Of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 52,429 | $ 56,208 | $ 53,075 | $ 52,607 | $ 51,628 | $ 53,617 | $ 52,061 | $ 51,051 | $ 214,319 | $ 208,357 | $ 198,533 |
Gross profit | 3,201 | 2,970 | 2,804 | 2,779 | 3,075 | 2,715 | 2,834 | 2,560 | 11,754 | 11,184 | 11,271 |
Income (Loss) after income taxes: | |||||||||||
Continuing operations | (744) | 527 | 552 | (81) | (1,087) | 960 | 56 | 363 | 254 | 292 | 5,277 |
Discontinued operations | 0 | (1) | 1 | 1 | 2 | 1 | 0 | 2 | 1 | 5 | (124) |
Net Income | (744) | 526 | 553 | (80) | (1,085) | 961 | 56 | 365 | 255 | 297 | 5,153 |
Net income (loss) attributable to McKesson | $ (796) | $ 469 | $ 499 | $ (138) | $ (1,146) | $ 903 | $ 1 | $ 309 | $ 34 | $ 67 | $ 5,070 |
Diluted | |||||||||||
Continuing operations (in dollars per share) | $ (4.17) | $ 2.41 | $ 2.51 | $ (0.69) | $ (5.58) | $ 4.32 | $ 0.01 | $ 1.44 | $ 0.17 | $ 0.30 | $ 23.28 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0.01 | 0 | 0.02 | (0.55) |
Total (in dollars per share) | (4.17) | 2.40 | 2.51 | (0.68) | (5.58) | 4.33 | 0.01 | 1.45 | 0.17 | 0.32 | 22.73 |
Basic | |||||||||||
Continuing operations (in dollars per share) | (4.17) | 2.42 | 2.52 | (0.69) | (5.58) | 4.34 | 0.01 | 1.46 | 0.17 | 0.30 | 23.50 |
Discontinued operations (in dollars per share) | 0 | (0.01) | 0 | 0.01 | 0 | 0.01 | 0 | 0 | 0 | 0.02 | (0.55) |
Total (in dollars per share) | $ (4.17) | $ 2.41 | $ 2.52 | $ (0.68) | $ (5.58) | $ 4.35 | $ 0.01 | $ 1.46 | $ 0.17 | $ 0.32 | $ 22.95 |
SUPPLEMENTARY CONSOLIDATED FI_2
SUPPLEMENTARY CONSOLIDATED FINANCIAL STATEMENT SCHEDULE VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 226 | $ 285 | $ 253 |
Charged to Costs and Expense | 132 | 44 | 93 |
Charged to Other Accounts | (16) | 10 | 9 |
Deductions From Allowance Accounts | (45) | (113) | (70) |
Balance at End of Year | 297 | 226 | 285 |
Allowances for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 187 | 243 | 212 |
Charged to Costs and Expense | 132 | 44 | 93 |
Charged to Other Accounts | (1) | 13 | 7 |
Deductions From Allowance Accounts | (45) | (113) | (69) |
Balance at End of Year | 273 | 187 | 243 |
Other allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 39 | 42 | 41 |
Charged to Costs and Expense | 0 | 0 | 0 |
Charged to Other Accounts | (15) | (3) | 2 |
Deductions From Allowance Accounts | 0 | 0 | (1) |
Balance at End of Year | 24 | 39 | 42 |
Written off | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions From Allowance Accounts | (45) | (113) | (70) |
Credited to other accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Deductions From Allowance Accounts | 0 | 0 | 0 |
Amounts shown as deductions from current and non-current receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 226 | 285 | |
Balance at End of Year | $ 297 | $ 226 | $ 285 |
Uncategorized Items - mck-20190
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 10,211,000,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,000,000 |
Other Additional Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (1,000,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 154,000,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 13,140,000,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (7,655,000,000) |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 6,188,000,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 253,000,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (1,717,000,000) |