Mckesson (MCK) FY2026 10-K Risk Factors: 136 New, 37 Dropped

What the changes say

Newly shown content centers on accounting estimates, including $11.3 billion goodwill and $4.1 billion intangible assets.
Liquidity remains substantial, with a new $5.0 billion revolving facility replacing two facilities.
Cash declined $1.9 billion as investing and financing outflows increased, including $2.3 billion of share repurchases.
Dropped risks previously emphasized litigation, opioid distribution, regulation, cybersecurity, systems, and asset impairments.

What changed since the prior 10-K

New

New
CRITICAL ACCOUNTING ESTIMATES
Credit-loss allowances depend on customer receivables, financing arrangements, past experience, and management judgment.
New
FINANCIAL REVIEW (Continued)
A 0.1% change in the fiscal 2026 allowance rate would change bad-debt expense by approximately $25 million.
New
As a result of acquiring businesses, we have $11.3 billion and $10.0 billion of goodwill at March 31, 2026 and 2025, respectively, and $4.1 billion and $1.5 billion of intangible assets, net at March 31, 2026 and 2025, respectively
Goodwill increased to $11.3 billion and intangible assets to $4.1 billion, creating exposure to impairment indicators.
New
We apply the goodwill impairment test by comparing the estimated fair value of a reporting unit to its carrying value and an impairment charge is recorded equal to the amount of excess carrying value above the estimated fair value, if any, but not to exceed the amount of goodwill allocated to the reporting unit
Goodwill valuation depends on reporting-unit forecasts, comparable companies, discounted cash flows, discount rates, and market capitalization.
New
In addition, the calculation of our tax liabilities includes estimates for uncertainties in the application of complex new tax regulations across multiple global jurisdictions where we conduct our operations
Complex new tax regulations across global jurisdictions could cause tax liabilities and interest to differ from estimates.
New
FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES
Liquidity depends on operating cash, investments, credit facilities, commercial paper, and other borrowings; a new $5.0 billion facility matures in 2031.
New
(Dollars in millions) 2026 2025 Change
Operating cash flow depends on customer receipts, inventory purchases, vendor payments, sales volumes, and payment terms.
New
On November 14, 2025, our €600 million outstanding principal amount of 1.50% Notes matured and on December 3, 2025, our $500 million outstanding principal amount of 0.90% Notes matured, and were repaid using cash on hand
The company repaid €600 million of notes and $500 million of notes at maturity using cash on hand.
New
(3) The remaining authorization outstanding for repurchases of common stock excludes $40 million and $26 million of excise taxes incurred on share repurchases for the years ended March 31, 2026 and 2025, respectively
A $2.3 billion accelerated share-repurchase program and a $7.7 billion authorization could affect cash and outstanding shares.
New
(2) This ratio describes the relationship and changes within our capital resources, and is computed as the sum of total debt divided by the sum of total debt and McKesson stockholders’ deficit, which excludes noncontrolling interests and accumulated other comprehensive loss
Cash held by foreign subsidiaries totaled approximately $1.8 billion and may be subject to deposit-insurance and access considerations.
New
Our debt to capital ratio increased for the year ended March 31, 2026 compared to the prior year primarily due to share repurchases and dividend payments as well as repayments of long-term debt, partially offset by net income attributable to McKesson for fiscal 2026 and issuance of new long-term debt
Share repurchases, dividends, debt repayments, and new debt increased the debt-to-capital ratio and affect future dividend capacity.
New
Total $ 21,328 $ 11,760 $ 3,114 $ 2,474 $ 3,980
McKesson faces $21.3 billion of debt, lease, purchase, interest, and benefit obligations, including $11.8 billion due within one year.
New
(5) Primarily relates to the expected purchase of goods and services, including inventory and capital commitments, from vendors in the normal course of business
New
RELATED PARTY BALANCES AND TRANSACTIONS
New
NEW ACCOUNTING PRONOUNCEMENTS
New
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
New
Report of Independent Registered Public Accounting Firm
New
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
New
Opinions on the Financial Statements and Internal Control over Financial Reporting
New
Definition and Limitations of Internal Control over Financial Reporting
New
Critical Audit Matter Description
New
How the Critical Audit Matter Was Addressed in the Audit
New
Cash dividends declared, $ 2.40 per common share
New
Cash dividends declared, $ 2.75 per common share
New
Cash dividends declared, $ 3.17 per common share
New
Net income $ 5,099 $ 3,481 $ 3,160
New
Other non-cash items 302 424 233
New
Purchase of U.S. government obligations for the satisfaction and discharge of long-term debt — — ( 647 )
New
SUPPLEMENTAL CASH FLOW INFORMATION
New
1. Significant Accounting Policies
New
Reclassifications : Certain prior period amounts have been reclassified to conform to the current year presentation
New
Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included in “Prepaid expenses and other” and “Other non-current assets” in the Consolidated Balance Sheets
New
FINANCIAL NOTES (Continued)
New
Receivables, net $ 27,985 $ 25,643
New
Property, plant, and equipment, net $ 2,668 $ 2,502
New
Refer to Financial Note 9, “Leases,” for additional information on the Company’s leases
New
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
New
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
New
Interest Expense : Interest expense primarily includes interest for the Company’s long-term debt obligations, commercial paper, net interest settlements of interest rate swaps, and the amortization of deferred issuance costs and original issue discounts on debt
New
Recently Adopted Accounting Pronouncements
New
Recently Issued Accounting Pronouncements Not Yet Adopted
New
PRISM Vision Holdings, LLC
New
The financial results of PRISM Vision are included within the Company’s Oncology & Multispecialty segment as of the acquisition date. The transaction was accounted for as a business combination
New
Estimated fair value of total consideration $ 916
New
Community Oncology Revitalization Enterprise Ventures, LLC
New
The transaction was accounted for as a business combination, and the financial results of Core Ventures are included within the Company’s Oncology & Multispecialty segment as of the acquisition date
New
Estimated fair value of total consideration $ 3,181
New
3. Restructuring, Impairment, and Related Charges, Net
New
Restructuring Initiatives
New
Total $ 59 $ 1 $ 12 $ 204 $ 68 $ 344
New
(1) Includes costs related to operational efficiencies and cost optimization efforts to support the Company’s North American Pharmaceutical, Oncology & Multispecialty, Corporate and other activities
New
(3) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred
New
(3) As of March 31, 2025, the total reserve balance was $ 126 million, of which $ 103 million was recorded in “Other accrued liabilities” and $ 23 million was recorded in “Other non-current liabilities” in the Company’s Consolidated Balance Sheet
New
4. Share-Based Compensation
New
Restricted Stock Unit Awards
New
Performance Stock Unit Awards
New
Employee Stock Purchase Plan
New
(1) The increase in interest income for fiscal 2026 compared to fiscal 2025 is primarily due to higher average intra‑period cash balances in fiscal 2026, driven by higher cash flows. The increase in fiscal 2025 compared to fiscal 2024 is primarily due to higher investable cash in fiscal 2025
New
Reported income tax rate 17.8 % 20.1 % 16.6 %
New
(2) Reconciling items are presented on a gross basis, except for cross-border tax effects, tax credits and changes in unrecognized tax benefits (“UTBs”)
New
Income tax expense $ 878 $ 629
New
During the year ended March 31, 2026, the Company recognized a U.S. federal tax benefit of $ 158 million related to the impact of the liquidation of its investment in a wholly-owned affiliate
New
During the year ended March 31, 2024, the Company recognized a tax benefit of $ 157 million related to the release of a valuation allowance based on management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realized
New
Net deferred tax liability $ ( 898 ) $ ( 662 )
New
As of March 31, 2026, the Company had $ 1.6 billion in unrecognized tax benefits, of which $ 1.5 billion would reduce income tax expense and the effective tax rate, if recognized. The increase in unrecognized tax benefits in both fiscal 2026 and fiscal 2025 primarily relate to additions associated with recurring items
New
Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interests
New
The Company also recognized a redemption value adjustment to the Core Ventures redeemable noncontrolling interest of $ 122 million, which was recorded to “Net income attributable to noncontrolling interests” in the Company’s Consolidated Statement of Operations for the year ended March 31, 2026
New
8. Earnings Per Common Share
New
Finance leases 3.45 % 3.27 %
New
Operating lease cost 433 418 418
New
(2) These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations
New
(In millions) 2026 2025 2024
New
Financing cash flows from finance leases ( 36 ) ( 39 ) ( 47 )
New
(1) Total lease payments are not reduced by future minimum sublease income of $ 219 million, which is due under noncancellable subleases
New
(1) Goodwill related to the Canadian retail disposal group. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more details
New
Goodwill Impairment Charges
New
Total $ 6,129 $ ( 2,050 ) $ 4,079 $ 3,288 $ ( 1,824 ) $ 1,464
New
11. Debt and Financing Activities
New
1.50 % Euro Notes due November 17, 2025
New
Medical-Surgical Solutions Term Loan and Revolving Facility
New
12. Variable Interest Entities
New
Consolidated Variable Interest Entities
New
Investments in Unconsolidated Variable Interest Entities
New
Non-U.S. Defined Benefit Pension Plans
New
Defined Contribution Plans
New
Foreign Currency Exchange Risk
New
(2) There was no ineffectiveness in these hedges for the years ended March 31, 2026, 2025, and 2024
New
Derivatives Not Designated as Hedges
New
Other Information on Derivative Instruments
New
Cross-currency swaps $ ( 142 ) $ 80 $ 3
New
(1) Includes other comprehensive income related to the excluded component of certain fair value hedges
New
(In millions) Asset Liability Asset Liability
New
Prepaid expenses and other
New
15. Fair Value Measurements
New
Assets and Liabilities Measured at Fair Value on a Recurring Basis
New
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
New
Other Fair Value Disclosures
New
The Company determines the fair value of commercial paper using quoted prices in active markets for identical instruments, which are considered Level 1 inputs under the fair value measurements and disclosure guidance
New
Long-term debt, including current maturities $ 6,526 $ 6,549 $ 5,654 $ 5,598
New
17. Commitments and Contingent Liabilities
New
Litigation and Claims Involving Distribution of Controlled Substances
New
State and Local Government Claims
New
Native American Tribe Claims
New
Non-Governmental Plaintiff Claims
New
With respect to the acute care hospitals, the Company reached a settlement of $ 149 million with a nationwide class, which the Company paid into escrow on November 27, 2024
New
Estimated Liabilities of Opioid-related Settlements
New
(1) These amounts, recorded in “Other accrued liabilities” in the Consolidated Balance Sheets, are the amounts estimated to be paid within the next twelve months following each respective period end date
New
Canadian Plaintiff Claims
New
Defense of Opioids Claims
New
Other Litigation and Claims
New
Government Subpoenas and Investigations
New
Value Added Tax Assessments
New
(3) The remaining authorization outstanding for repurchases of common stock excludes $ 40 million, $ 26 million and $ 25 million of excise taxes incurred on share repurchases for the years ended March 31, 2026, 2025, and 2024 respectively
New
Accumulated Other Comprehensive Loss
New
19. Related Party Balances and Transactions
New
(2) Other segment expense, net include cost of sales, total operating expenses, and other income, net, for the Company’s reportable segments
New
FINANCIAL NOTES (Concluded)
New
(10) Long-lived assets consist of property, plant, and equipment, net and capitalized software
New
Disclosure Controls and Procedures
New
Internal Control over Financial Reporting
New
Changes in Internal Controls
New
Pre-arranged Trading Plans
New
Item 10. Directors, Executive Officers, and Corporate Governance
New
Insider Trading Policies and Procedures
New
Information about security ownership of certain beneficial owners and management is incorporated by reference from the discussion under the heading “Principal Shareholders” in the Proxy Statement
New
(1) The weighted-average exercise price set forth in this column is calculated excluding outstanding restricted stock unit awards since recipients are not required to pay an exercise price to receive the shares subject to these awards. All options were exercised in fiscal 2025
New
Item 13. Certain Relationships and Related Transactions, and Director Independence
New
Item 14. Principal Accountant Fees and Services
New
Schedule II-Valuation and Qualifying Accounts
New
Primarily represents reclassifications to other balance sheet accounts
New
8-K 1-13252 4.1 March 5, 2007
New
Description of the Company’s Securities
New
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
New
Exhibit Number Description Form File Number Exhibit Filing Date
New
104† Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101). — — — —
New
Executive Vice President and Chief Financial Officer

Dropped

DroppedGeneral Risks
We experience costly and disruptive legal disputes
Routine litigation and regulatory proceedings, including class actions, false claims, healthcare fraud, and antitrust allegations.
DroppedGeneral Risks
We experience losses not covered by insurance or indemnification
Uninsured or unindemnified losses from pharmaceutical distribution, manufacturing, dispensing, payer businesses, and clinical-support services.
DroppedGeneral Risks
We experience costly legal disputes, government actions, and adverse publicity regarding our role in distributing controlled substances such as opioids
Litigation, government actions, and adverse publicity concerning McKesson’s opioid distribution.
DroppedGeneral Risks
We experience increased costs to distribute controlled substances such as opioids
Potential taxes and assessments or other costs from legislative and regulatory measures targeting opioid distribution.
DroppedGeneral Risks
We are subject to extensive, complex, and challenging healthcare, environmental, and other laws
Extensive healthcare, environmental, and other regulation affecting costs, margins, products, litigation, and investigations.
DroppedGeneral Risks
We are subject to extensive and frequently changing laws relating to healthcare fraud, waste, and abuse
Changing healthcare fraud, waste, and abuse laws affecting Medicare, Medicaid, and operating costs.
DroppedGeneral Risks
We might lose our ability to purchase, store, or distribute pharmaceuticals, including controlled substances, and medical products
Loss of DEA, FDA, pharmacy-board, health-department, CMS, or other approvals to purchase, store, or distribute products.
DroppedGeneral Risks
Privacy, cybersecurity, data protection, and AI laws increase our compliance burden
Privacy, cybersecurity, data-protection, and AI compliance failures causing enforcement, fines, litigation, and reputational harm.
DroppedGeneral Risks
Anti-bribery and anti-corruption laws increase our compliance burden
Violations of anti-bribery laws, including the Foreign Corrupt Practices Act and U.K. Bribery Act.
DroppedGeneral Risks
We might record significant charges from impairment to goodwill, intangibles, and other long-lived assets
Goodwill, intangible, and long-lived-asset impairment charges triggered by weak performance, adverse trends, or market-value declines.
DroppedGeneral Risks
We experience cybersecurity incidents that might significantly compromise our technology systems or might result in material data breaches
Cybersecurity incidents affecting systems or exposing protected health, personal, financial, customer, company, or workforce information.
DroppedGeneral Risks
We experience significant problems with information systems or networks
Failures of information systems and networks supporting inventory distribution, remote services, hosted customer data, and software.
DroppedGeneral Risks
Our technology products or services might not conform to specifications or perform as we intend
DroppedGeneral Risks
Pharmaceutical and medical products that we distribute might not conform to specifications or perform as intended
DroppedGeneral Risks
We might not realize expected benefits from business process initiatives
DroppedGeneral Risks
We might be unable to successfully complete or integrate acquisitions or other strategic transactions
DroppedGeneral Risks
From time to time we are adversely impacted by delays or other difficulties with divestitures
DroppedGeneral Risks
We might not realize the expected tax treatment from our split-off of Change Healthcare
DroppedGeneral Risks
We might be adversely impacted by outsourcing or similar third-party relationships
DroppedGeneral Risks
We may be unsuccessful in achieving our strategic growth objectives
DroppedGeneral Risks
We are impacted by customer purchase reductions, contract non-renewals, payment defaults, and bankruptcies
DroppedGeneral Risks
Our contracts with governmental entities involve future funding and compliance risks
DroppedGeneral Risks
We might be harmed by changes in our relationships or contracts with suppliers
DroppedGeneral Risks
We might infringe intellectual property rights or our intellectual property protections might be inadequate
DroppedGeneral Risks
Our use of third-party data is subject to risks and limitations that could impede the growth of our data services business
DroppedGeneral Risks
We might be unable to successfully recruit and retain qualified employees
DroppedIndustry and Economic Risks
We might be adversely impacted by healthcare reform such as changes in pricing and reimbursement models
DroppedIndustry and Economic Risks
We are adversely impacted by competition and industry consolidation
DroppedIndustry and Economic Risks
From time to time we have difficulties in sourcing or selling products due to a variety of causes and are adversely impacted by disruptions or changes in product supply
DroppedIndustry and Economic Risks
We are adversely impacted as a result of our distribution of generic pharmaceuticals
DroppedIndustry and Economic Risks
We are adversely impacted by changes in the economic environments in which we operate, including from inflation, an economic slowdown, a recession, or fluctuations in foreign currency exchange rates
DroppedIndustry and Economic Risks
Changes affecting capital and credit markets might impede access to credit, increase borrowing costs, and disrupt banking services for us and our customers and suppliers and might impair the financial soundness of our customers and suppliers
DroppedIndustry and Economic Risks
We might be adversely impacted by tax legislation or challenges to our tax positions
DroppedGeneral Risks
Conditions and events outside of our control, such as widespread public health issues, natural disasters, and geopolitical factors adversely impact our business operations and our financial position or results of operations
DroppedGeneral Risks
We may be adversely affected by global climate change or by regulatory or market responses to such change
DroppedGeneral Risks
Evolving expectations and regulatory requirements related to governance and sustainability matters may damage our reputation and have an adverse effect on our business, financial condition, and results of operations
DroppedGeneral Risks
Exclusive forum provisions in our Bylaws could limit our stockholders’ ability to choose their preferred judicial forum for disputes with us or our directors, officers, or employees

All 136 risk factors

Headings as the filing states them, in filing order.

Other

01CRITICAL ACCOUNTING ESTIMATESNew
02FINANCIAL REVIEW (Continued)New
03As a result of acquiring businesses, we have $11.3 billion and $10.0 billion of goodwill at March 31, 2026 and 2025, respectively, and $4.1 billion and $1.5 billion of intangible assets, net at March 31, 2026 and 2025, respectivelyNew
04We apply the goodwill impairment test by comparing the estimated fair value of a reporting unit to its carrying value and an impairment charge is recorded equal to the amount of excess carrying value above the estimated fair value, if any, but not to exceed the amount of goodwill allocated to the reporting unitNew
05In addition, the calculation of our tax liabilities includes estimates for uncertainties in the application of complex new tax regulations across multiple global jurisdictions where we conduct our operationsNew
06FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCESNew
07(Dollars in millions) 2026 2025 ChangeNew
08On November 14, 2025, our €600 million outstanding principal amount of 1.50% Notes matured and on December 3, 2025, our $500 million outstanding principal amount of 0.90% Notes matured, and were repaid using cash on handNew
09(3) The remaining authorization outstanding for repurchases of common stock excludes $40 million and $26 million of excise taxes incurred on share repurchases for the years ended March 31, 2026 and 2025, respectivelyNew
10(2) This ratio describes the relationship and changes within our capital resources, and is computed as the sum of total debt divided by the sum of total debt and McKesson stockholders’ deficit, which excludes noncontrolling interests and accumulated other comprehensive lossNew
11Our debt to capital ratio increased for the year ended March 31, 2026 compared to the prior year primarily due to share repurchases and dividend payments as well as repayments of long-term debt, partially offset by net income attributable to McKesson for fiscal 2026 and issuance of new long-term debtNew
12Total $ 21,328 $ 11,760 $ 3,114 $ 2,474 $ 3,980New
13(5) Primarily relates to the expected purchase of goods and services, including inventory and capital commitments, from vendors in the normal course of businessNew
14RELATED PARTY BALANCES AND TRANSACTIONSNew
15NEW ACCOUNTING PRONOUNCEMENTSNew
16Item 7A. Quantitative and Qualitative Disclosures about Market RiskNew
17Report of Independent Registered Public Accounting FirmNew
18MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTINGNew
19Opinions on the Financial Statements and Internal Control over Financial ReportingNew
20Definition and Limitations of Internal Control over Financial ReportingNew
21Critical Audit Matter DescriptionNew
22How the Critical Audit Matter Was Addressed in the AuditNew
23Cash dividends declared, $ 2.40 per common shareNew
24Cash dividends declared, $ 2.75 per common shareNew
25Cash dividends declared, $ 3.17 per common shareNew
26Net income $ 5,099 $ 3,481 $ 3,160New
27Other non-cash items 302 424 233New
28Purchase of U.S. government obligations for the satisfaction and discharge of long-term debt — — ( 647 )New
29SUPPLEMENTAL CASH FLOW INFORMATIONNew
301. Significant Accounting PoliciesNew
31Reclassifications : Certain prior period amounts have been reclassified to conform to the current year presentationNew
32Restricted Cash : Cash that is subject to legal restrictions or is unavailable for general operating purposes is classified as restricted cash and is included in “Prepaid expenses and other” and “Other non-current assets” in the Consolidated Balance SheetsNew
33FINANCIAL NOTES (Continued)New
34Receivables, net $ 27,985 $ 25,643New
35Property, plant, and equipment, net $ 2,668 $ 2,502New
36Refer to Financial Note 9, “Leases,” for additional information on the Company’s leasesNew
37Revenue 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 serviceNew
38Supplier 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 salesNew
39Interest Expense : Interest expense primarily includes interest for the Company’s long-term debt obligations, commercial paper, net interest settlements of interest rate swaps, and the amortization of deferred issuance costs and original issue discounts on debtNew
40Recently Adopted Accounting PronouncementsNew
41Recently Issued Accounting Pronouncements Not Yet AdoptedNew
42PRISM Vision Holdings, LLCNew
43The financial results of PRISM Vision are included within the Company’s Oncology & Multispecialty segment as of the acquisition date. The transaction was accounted for as a business combinationNew
44Estimated fair value of total consideration $ 916New
45Community Oncology Revitalization Enterprise Ventures, LLCNew
46The transaction was accounted for as a business combination, and the financial results of Core Ventures are included within the Company’s Oncology & Multispecialty segment as of the acquisition dateNew
47Estimated fair value of total consideration $ 3,181New
483. Restructuring, Impairment, and Related Charges, NetNew
49Restructuring InitiativesNew
50Total $ 59 $ 1 $ 12 $ 204 $ 68 $ 344New
51(1) Includes costs related to operational efficiencies and cost optimization efforts to support the Company’s North American Pharmaceutical, Oncology & Multispecialty, Corporate and other activitiesNew
52(3) Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurredNew
53(3) As of March 31, 2025, the total reserve balance was $ 126 million, of which $ 103 million was recorded in “Other accrued liabilities” and $ 23 million was recorded in “Other non-current liabilities” in the Company’s Consolidated Balance SheetNew
544. Share-Based CompensationNew
55Restricted Stock Unit AwardsNew
56Performance Stock Unit AwardsNew
57Employee Stock Purchase PlanNew
58(1) The increase in interest income for fiscal 2026 compared to fiscal 2025 is primarily due to higher average intra‑period cash balances in fiscal 2026, driven by higher cash flows. The increase in fiscal 2025 compared to fiscal 2024 is primarily due to higher investable cash in fiscal 2025New
59Reported income tax rate 17.8 % 20.1 % 16.6 %New
60(2) Reconciling items are presented on a gross basis, except for cross-border tax effects, tax credits and changes in unrecognized tax benefits (“UTBs”)New
61Income tax expense $ 878 $ 629New
62During the year ended March 31, 2026, the Company recognized a U.S. federal tax benefit of $ 158 million related to the impact of the liquidation of its investment in a wholly-owned affiliateNew
63During the year ended March 31, 2024, the Company recognized a tax benefit of $ 157 million related to the release of a valuation allowance based on management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realizedNew
64Net deferred tax liability $ ( 898 ) $ ( 662 )New
65As of March 31, 2026, the Company had $ 1.6 billion in unrecognized tax benefits, of which $ 1.5 billion would reduce income tax expense and the effective tax rate, if recognized. The increase in unrecognized tax benefits in both fiscal 2026 and fiscal 2025 primarily relate to additions associated with recurring itemsNew
66Noncontrolling interests with redemption features, such as put rights, that are not solely within the Company’s control are considered redeemable noncontrolling interestsNew
67The Company also recognized a redemption value adjustment to the Core Ventures redeemable noncontrolling interest of $ 122 million, which was recorded to “Net income attributable to noncontrolling interests” in the Company’s Consolidated Statement of Operations for the year ended March 31, 2026New
688. Earnings Per Common ShareNew
69Finance leases 3.45 % 3.27 %New
70Operating lease cost 433 418 418New
71(2) These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of OperationsNew
72(In millions) 2026 2025 2024New
73Financing cash flows from finance leases ( 36 ) ( 39 ) ( 47 )New
74(1) Total lease payments are not reduced by future minimum sublease income of $ 219 million, which is due under noncancellable subleasesNew
75(1) Goodwill related to the Canadian retail disposal group. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more detailsNew
76Goodwill Impairment ChargesNew
77Total $ 6,129 $ ( 2,050 ) $ 4,079 $ 3,288 $ ( 1,824 ) $ 1,464New
7811. Debt and Financing ActivitiesNew
791.50 % Euro Notes due November 17, 2025New
80Medical-Surgical Solutions Term Loan and Revolving FacilityNew
8112. Variable Interest EntitiesNew
82Consolidated Variable Interest EntitiesNew
83Investments in Unconsolidated Variable Interest EntitiesNew
84Non-U.S. Defined Benefit Pension PlansNew
85Defined Contribution PlansNew
86Foreign Currency Exchange RiskNew
87(2) There was no ineffectiveness in these hedges for the years ended March 31, 2026, 2025, and 2024New
88Derivatives Not Designated as HedgesNew
89Other Information on Derivative InstrumentsNew
90Cross-currency swaps $ ( 142 ) $ 80 $ 3New
91(1) Includes other comprehensive income related to the excluded component of certain fair value hedgesNew
92(In millions) Asset Liability Asset LiabilityNew
93Prepaid expenses and otherNew
9415. Fair Value MeasurementsNew
95Assets and Liabilities Measured at Fair Value on a Recurring BasisNew
96Assets and Liabilities Measured at Fair Value on a Nonrecurring BasisNew
97Other Fair Value DisclosuresNew
98The Company determines the fair value of commercial paper using quoted prices in active markets for identical instruments, which are considered Level 1 inputs under the fair value measurements and disclosure guidanceNew
99Long-term debt, including current maturities $ 6,526 $ 6,549 $ 5,654 $ 5,598New
10017. Commitments and Contingent LiabilitiesNew
101Litigation and Claims Involving Distribution of Controlled SubstancesNew
102State and Local Government ClaimsNew
103Native American Tribe ClaimsNew
104Non-Governmental Plaintiff ClaimsNew
105With respect to the acute care hospitals, the Company reached a settlement of $ 149 million with a nationwide class, which the Company paid into escrow on November 27, 2024New
106Estimated Liabilities of Opioid-related SettlementsNew
107(1) These amounts, recorded in “Other accrued liabilities” in the Consolidated Balance Sheets, are the amounts estimated to be paid within the next twelve months following each respective period end dateNew
108Canadian Plaintiff ClaimsNew
109Defense of Opioids ClaimsNew
110Other Litigation and ClaimsNew
111Government Subpoenas and InvestigationsNew
112Value Added Tax AssessmentsNew
113(3) The remaining authorization outstanding for repurchases of common stock excludes $ 40 million, $ 26 million and $ 25 million of excise taxes incurred on share repurchases for the years ended March 31, 2026, 2025, and 2024 respectivelyNew
114Accumulated Other Comprehensive LossNew
11519. Related Party Balances and TransactionsNew
116(2) Other segment expense, net include cost of sales, total operating expenses, and other income, net, for the Company’s reportable segmentsNew
117FINANCIAL NOTES (Concluded)New
118(10) Long-lived assets consist of property, plant, and equipment, net and capitalized softwareNew
119Disclosure Controls and ProceduresNew
120Internal Control over Financial ReportingNew
121Changes in Internal ControlsNew
122Pre-arranged Trading PlansNew
123Item 10. Directors, Executive Officers, and Corporate GovernanceNew
124Insider Trading Policies and ProceduresNew
125Information about security ownership of certain beneficial owners and management is incorporated by reference from the discussion under the heading “Principal Shareholders” in the Proxy StatementNew
126(1) The weighted-average exercise price set forth in this column is calculated excluding outstanding restricted stock unit awards since recipients are not required to pay an exercise price to receive the shares subject to these awards. All options were exercised in fiscal 2025New
127Item 13. Certain Relationships and Related Transactions, and Director IndependenceNew
128Item 14. Principal Accountant Fees and ServicesNew
129Schedule II-Valuation and Qualifying AccountsNew
130Primarily represents reclassifications to other balance sheet accountsNew
1318-K 1-13252 4.1 March 5, 2007New
132Description of the Company’s SecuritiesNew
133Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002New
134Exhibit Number Description Form File Number Exhibit Filing DateNew
135104† Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101). — — — —New
136Executive Vice President and Chief Financial OfficerNew

Other Mckesson 10-Ks

FY2025 10-K risk factors
37 risks
McKesson faces significant legal and regulatory risks tied to the distribution of opioids and pharmaceuticals. The company relies heavily on third-party suppliers, complex IT systems, and government contracts. Compliance with extensive healthcare, data privacy, and anti-corruption laws drives major operational costs.
Filed May 09, 2025

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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.