Stockholders' Equity

9 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Each share of the Company’s outstanding common stock is permitted one vote on proposals presented to stockholders and is entitled to share equally in any dividends declared by the Company’s Board of Directors (the “Board”).

In July 2015, the Company’s quarterly dividend was raised from $0.24 to $0.28 per common share for dividends declared on or after such date by the Board. The Company anticipates that it will continue to pay quarterly cash dividends in the future.  However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company's future earnings, financial condition, capital requirements and other factors.

In May 2015, the Board authorized the repurchase of up to $500 million of the Company’s common stock. During the second quarter of 2016, we bought 2.5 million shares at an average price per share of $196.20. At September 30, 2015, no authorized amounts were available for future repurchases of the Company’s common stock under the May 2015 share purchase plan. In October 2015, the Board authorized the repurchase of up to $2 billion of the Company’s common stock. During the third quarter of 2016, we bought 1.9 million shares at an average price per share of $186.99. During 2016, our share repurchases were completed through open market transactions. The total authorization outstanding for repurchases of the Company’s common stock was $1.6 billion at December 31, 2015.

During the third quarter of 2016, we retired 115.5 million or $7.8 billion 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 $6.3 billion and $1.5 billion during the third quarter of 2016.

Other Comprehensive Income (Loss)

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

	Quarter Ended December 31,						Nine Months Ended December 31,
(In millions)	2015			2014			2015			2014
Foreign currency translation adjustments(1)
Foreign currency translation adjustments arising during period, net of income tax benefit of $3, nil, $3 and nil (2) (3)	$	(246	)	$	(416	)	$	(142	)	$	(985	)
Reclassified to income statement, net of income tax expense of nil, nil, nil and nil (4)	—			—			—			(10		)
	(246		)	(416		)	(142		)	(995		)
Unrealized gains (losses) on cash flow hedges
Unrealized gains (losses) on cash flow hedges arising during period, net of income tax expense of nil, nil, nil and nil	(1		)	1			5			(1		)
Changes in retirement-related benefit plans
Net actuarial gain (loss) and prior service cost arising during the period, net of income tax benefit of nil, $6, $9 and $6 (5)	—			(21		)	(28		)	(21		)
Amortization of actuarial loss and prior service costs, net of income tax expense of $4, $2, $13 and $5 (6)	8			3			23			9
Foreign currency translation adjustments, net of income tax expense of nil, nil, nil and nil	7			2			3			4
	15			(16		)	(2		)	(8		)
Other comprehensive income (loss), net of tax	$	(232	)	$	(431	)	$	(139	)	$	(1,004	)

(1) Foreign currency translation adjustments result from the conversion of non-U.S. dollar financial statements of our foreign subsidiaries into the Company’s reporting currency, U.S. dollars, and were primarily related to our foreign subsidiary, Celesio, in 2016 and 2015.

(2) The net foreign currency translation losses during the third quarter of 2016 were primarily due to the weakening of the Euro, British pound sterling and Canadian dollar against the U.S. dollar from October 1, 2015 to December 31, 2015. The net foreign currency translation losses during first nine months of 2016 were primarily due to the weakening of the Canadian dollar against the U.S. dollar from April 1, 2015 to December 31, 2015. During the third quarter and first nine months of 2015, the currency translation losses were primarily due to the weakening of the Euro and British pound sterling against the U.S. dollar from April 1, 2014 to December 31, 2014.

(3) The third quarter and first nine months of 2016 include net foreign currency translation losses of $32 million and $2 million, which are primarily attributable to redeemable noncontrolling interests. The third quarter and first nine months of 2015 included net foreign currency translation losses of $13 million and $164 million attributable to noncontrolling interests and translation losses of $39 million attributable to 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 sales of certain businesses.

(5) The third quarter and first nine months of 2016 include net actuarial gains of $1 million and losses of $5 million attributable to redeemable noncontrolling interests.

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

Accumulated Other Comprehensive Income (Loss)

Information regarding changes in our accumulated other comprehensive income (loss), net of tax, by component for the third quarter and first nine months of 2016 is as follows:

(In millions)	Foreign Currency Translation Adjustments, Net of Tax			Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax			Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax			Total Accumulated Other Comprehensive Income (Loss)
Balance at September 30, 2015	$	(1,346	)	$	(15	)	$	(283	)	$	(1,644	)
Other comprehensive income (loss) before reclassifications	(246		)	(1		)	—			(247		)
Amounts reclassified to earnings and other	—			—			15			15
Other comprehensive income (loss)	(246		)	(1		)	15			(232		)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(32		)	—			1			(31		)
Other comprehensive income (loss) attributable to McKesson	(214		)	(1		)	14			(201		)
Balance at December 31, 2015	$	(1,560	)	$	(16	)	$	(269	)	$	(1,845	)

Balance at March 31, 2015	$	(1,420	)	$	(21	)	$	(272	)	$	(1,713	)
Other comprehensive income (loss) before reclassifications	(142		)	5			(28		)	(165		)
Amounts reclassified to earnings and other	—			—			26			26
Other comprehensive income (loss)	(142		)	5			(2		)	(139		)
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	(2		)	—			(5		)	(7		)
Other comprehensive income (loss) attributable to McKesson	(140		)	5			3			(132		)
Balance at December 31, 2015	$	(1,560	)	$	(16	)	$	(269	)	$	(1,845	)