Item 6. Selected Financial Data.

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Item 6. Selected Financial Data.

FIVE-YEAR HIGHLIGHTS



	As of and for the Years Ended March 31,
(In millions, except per share data and ratios)		2019			2018			2017			2016			2015
Operating Results
Revenues		$	214,319		$	208,357		$	198,533		$	190,884		$	179,045
Percent change		2.9		%	4.9		%	4.0		%	6.6		%	30.3		%
Gross profit		$	11,754		$	11,184		$	11,271		$	11,416		$	11,411
Income from continuing operations before income taxes (1)		610			239			6,891			3,250			2,657
Income (Loss) after income taxes
Continuing operations (1)		254			292			5,277			2,342			1,842
Discontinued operations		1			5			(124		)	(32		)	(299		)
Net income		255			297			5,153			2,310			1,543
Net income attributable to noncontrolling interests (2)		(221		)	(230		)	(83		)	(52		)	(67		)
Net income attributable to McKesson Corporation (1)		34			67			5,070			2,258			1,476

Financial Position
Working capital		$	839		$	451		$	1,336		$	3,366		$	3,173
Days sales outstanding for: (3)
Customer receivables		26			25			27			28			26
Inventories		31			30			30			32			31
Drafts and accounts payable		62			60			61			59			54
Total assets		$	59,672		$	60,381		$	60,969		$	56,523		$	53,870
Total debt, including capital lease obligations		7,595			7,880			8,545			8,114			9,844
Total McKesson stockholders’ equity (4)		8,094			9,804			11,095			8,924			8,001
Payments for property, plant and equipment		426			405			404			488			376
Acquisitions, net of cash, cash equivalents and restricted cash acquired		905			2,893			4,212			40			170

Common Share Information
Common shares outstanding at year-end		190			202			211			225			232
Shares on which earnings per common share were based
Diluted		197			209			223			233			235
Basic		196			208			221			230			232
Diluted earnings (loss) per common share attributable to McKesson Corporation (5)
Continuing operations		$	0.17		$	0.30		$	23.28		$	9.84		$	7.54
Discontinued operations		—			0.02			(0.55		)	(0.14		)	(1.27		)
Total		0.17			0.32			22.73			9.70			6.27
Cash dividends declared		298			270			249			249			226
Cash dividends declared per common share		1.51			1.30			1.12			1.08			0.96
Book value per common share (5) (6)		42.60			48.53			52.58			39.66			34.49
Market value per common share - year-end		117.06			140.87			148.26			157.25			226.20

Supplemental Data
Debt to capital ratio (7)		43.3		%	40.6		%	39.2		%	43.6		%	50.3		%
Average McKesson stockholders’ equity (8)		$	9,163		$	11,016		$	9,282		$	8,688		$	8,703
Return on McKesson stockholders’ equity (9)		0.4		%	0.6		%	54.6		%	26.0		%	17.0		%

McKESSON CORPORATION

Footnotes to Five-Year Highlights:


(1)	2019 includes non-cash pre-tax goodwill impairment charges of $1,776 million ($1,756 million after-tax) primarily for our two reporting units within our McKesson European Pharmaceutical Solutions segment. 2018 includes total non-cash goodwill impairment charges of $1,738 million (pre-tax and after-tax) for our European Pharmaceutical Solutions segment and Other. These impairment charges are generally not deductible for income tax purposes. 2019 and 2018 also include non-cash asset impairment charges of $210 million ($172 million after-tax) and $446 million ($410 million after-tax) primarily for our U.K. retail businesses. 2017 includes a pre-tax gain of $3,947 million ($3,018 million after-tax) from the contribution of the majority of our Core MTS Business in connection with Healthcare Technology Net Asset Exchange.

(1)

2019 includes non-cash pre-tax goodwill impairment charges of $1,776 million ($1,756 million after-tax) primarily for our two reporting units within our McKesson European Pharmaceutical Solutions segment. 2018 includes total non-cash goodwill impairment charges of $1,738 million (pre-tax and after-tax) for our European Pharmaceutical Solutions segment and Other. These impairment charges are generally not deductible for income tax purposes. 2019 and 2018 also include non-cash asset impairment charges of $210 million ($172 million after-tax) and $446 million ($410 million after-tax) primarily for our U.K. retail businesses. 2017 includes a pre-tax gain of $3,947 million ($3,018 million after-tax) from the contribution of the majority of our Core MTS Business in connection with Healthcare Technology Net Asset Exchange.


(2)	Includes guaranteed dividends for 2015 and annual recurring compensation for 2016, 2017, 2018 and 2019 that McKesson became obligated to pay to the noncontrolling shareholders of McKesson Europe upon the effectiveness of the Domination Agreement in 2015. 2019, 2018 and 2017 include net income attributable to third-party equity interests in our consolidated entities including Vantage Oncology, LLC and ClarusONE Sourcing Services LLP, which was formed in 2017.

(2)

Includes guaranteed dividends for 2015 and annual recurring compensation for 2016, 2017, 2018 and 2019 that McKesson became obligated to pay to the noncontrolling shareholders of McKesson Europe upon the effectiveness of the Domination Agreement in 2015. 2019, 2018 and 2017 include net income attributable to third-party equity interests in our consolidated entities including Vantage Oncology, LLC and ClarusONE Sourcing Services LLP, which was formed in 2017.


(3)	Based on year-end balances and sales or cost of sales for the last 90 days of the year.


(4)	Excludes noncontrolling and redeemable noncontrolling interests.


(5)	Certain computations may reflect rounding adjustments.


(6)	Represents McKesson stockholders’ equity divided by year-end common shares outstanding.


(7)	Ratio is computed as total debt divided by the sum of total debt and McKesson stockholders’ equity excluding accumulated other comprehensive income (loss).


(8)	Represents a five-quarter average of McKesson stockholders’ equity.


(9)	Ratio is computed as net income attributable to McKesson Corporation for the last four quarters, divided by a five-quarter average of McKesson stockholders’ equity.

McKESSON CORPORATION

FINANCIAL REVIEW

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