Stockholders' Equity (Deficit) (Tables)

3 Months Ended

Jun. 30, 2021

Schedule of information regarding other comprehensive income (loss) including noncontrolling and redeemable noncontrolling interests, net of tax, by component

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


	Three Months Ended June 30,
(In millions)		2021		2020
Foreign currency translation adjustments (1)
Foreign currency translation adjustments arising during period, net of income tax expense of zero and zero (2)		$	34	$	96
Reclassified to income statement, net of income tax expense of zero and zero		17		—
		51		96
Unrealized losses on net investment hedges
Unrealized losses on net investment hedges arising during period, net of income tax benefit of $6 and $22 (3)		(27)		(63)
Reclassified to income statement, net of income tax expense of zero and zero		—		—
		(27)		(63)
Unrealized losses on cash flow hedges
Unrealized losses on cash flow hedges arising during period, net of income tax benefit of zero and zero		—		(5)
Reclassified to income statement, net of income tax expense of zero and zero		—		—
		—		(5)
Changes in retirement-related benefit plans (4)
Net actuarial gain and prior service cost arising during the period, net of income tax expense of zero and zero		5		—
Amortization of actuarial gain (loss), prior service cost and transition obligation, net of income tax benefit expense of zero and zero (5)		(1)		2
Foreign currency translation adjustments and other, net of income tax benefit of zero and zero		—		(1)
Reclassified to income statement, net of income tax benefit of $1 and zero		(2)		—
		2		1

Other comprehensive income, net of tax		$	26	$	29

(1)Foreign currency translation adjustments primarily result from the conversion of non-U.S. dollar financial statements of the Company’s foreign subsidiary, McKesson Europe, and its operations in Canada into the Company’s reporting currency, U.S. dollars.

(2)The three months ended June 30, 2021 and 2020 includes net foreign currency translation adjustments of $9 million and $58 million, respectively, attributable to redeemable noncontrolling interests.

(3)The three months ended June 30, 2021 includes foreign currency losses of $22 million on the net investment hedges from the €1.7 billion Euro-denominated notes, losses of $5 million on the net investment hedges from cross-currency swaps, and losses on net investment hedges of $6 million attributable to redeemable noncontrolling interests. The three months ended June 30, 2020 include foreign currency losses of $34 million on the net investment hedges from the €1.7 billion Euro-denominated notes and losses of $51 million on the net investment hedges from cross-currency swaps.

(4)The three months ended June 30, 2021 and 2020 include net actuarial gains of zero and $3 million, respectively, which are attributable to redeemable noncontrolling interests.

(5)Pre-tax amount was reclassified into “Cost of sales” and “Selling, distribution, general, and administrative expenses” in the Condensed Consolidated Statements of Operations. The related tax expense was reclassified into “Income tax expense” in the Condensed Consolidated Statements of Operations.

Schedule of information regarding changes in accumulated other comprehensive income (loss), net of tax, by component

Information regarding changes in the Company’s Accumulated other comprehensive income (loss) by component for the three months ended June 30, 2021 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 Loss
Balance at March 31, 2021	$	(1,361)	$	(36)	$	13	$	(96)	$	(1,480)
Other comprehensive income (loss) before reclassifications	34		(27)		—		5		12
Amounts reclassified to earnings and other	17		—		—		(3)		14
Other comprehensive income (loss)	51		(27)		—		2		26
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	9		(6)		—		—		3
Other comprehensive income (loss) attributable to McKesson	42		(21)		—		2		23
Exercise of put right by noncontrolling shareholders of McKesson Europe AG	(158)		—		—		(12)		(170)
Balance at June 30, 2021	$	(1,477)	$	(57)	$	13	$	(106)	$	(1,627)

Information regarding changes in the Company’s Accumulated other comprehensive income (loss) by component for the three months ended June 30, 2020 are as follows:


	Foreign Currency Translation Adjustments
(In millions)	Foreign Currency Translation Adjustments, Net of Tax		Unrealized Gains (Losses) on Net Investment Hedges, Net of Tax		Unrealized Gains (Losses) on Cash Flow Hedges, Net of Tax		Unrealized Net Gains (Losses) and Other Components of Benefit Plans, Net of Tax		Total Accumulated Other Comprehensive Loss
Balance at March 31, 2020	$	(1,780)	$	138	$	49	$	(110)	$	(1,703)
Other comprehensive income (loss) before reclassifications	96		(63)		(5)		(1)		27
Amounts reclassified to earnings and other	—		—		—		2		2
Other comprehensive income (loss)	96		(63)		(5)		1		29
Less: amounts attributable to noncontrolling and redeemable noncontrolling interests	58		—		—		3		61
Other comprehensive income (loss) attributable to McKesson	38		(63)		(5)		(2)		(32)
Balance at June 30, 2020	$	(1,742)	$	75	$	44	$	(112)	$	(1,735)