McKesson(MCK) - 2025 Q3 - Quarterly Report

Financial Performance - Revenues for the three months ended December 31, 2024, increased to $95,294 million, up 17.5$80,898 million in the same period of 2023[11] - Gross profit for the nine months ended December 31, 2024, was $9,684 million, representing a 4.8$9,243 million in 2023[11] - Net income attributable to McKesson Corporation for the three months ended December 31, 2024, was $879 million, a 49.2$589 million in the same period of 2023[11] - Earnings per share (diluted) for the three months ended December 31, 2024, was $6.95, compared to$4.42 for the same period in 2023, reflecting a 57.2% increase[11] - Net income for the nine months ended December 31, 2024, was $2,175 million, a decrease of 6.7$2,330 million for the same period in 2023[22] - The net income attributable to McKesson Corporation for the nine months ended December 31, 2024, was $2.035 billion, a decrease of 8$2.211 billion in the prior year[200] Assets and Liabilities - Total assets as of December 31, 2024, were $71,081 million, an increase from$67,443 million as of March 31, 2024[16] - Current liabilities increased to $58,562 million as of December 31, 2024, compared to$52,357 million as of March 31, 2024[16] - Total McKesson Corporation stockholders' deficit increased to $3,084 million as of December 31, 2024, from$1,971 million as of March 31, 2024[16] - Total liabilities increased significantly, with short-term borrowings rising to $11,395 million in 2024 from$4,770 million in 2023[22] - Total long-term debt as of December 31, 2024, was $4.422 billion, down from$5.579 billion as of March 31, 2024[79] Cash Flow and Dividends - Cash and cash equivalents decreased to $1,131 million as of December 31, 2024, from$4,583 million as of March 31, 2024[16] - Cash dividends declared per common share increased to $2.04 in 2024 from$1.78 in 2023, totaling $263 million in dividends paid[20] - The company reported a net cash used in operating activities of$(1,663) million for the nine months ended December 31, 2024, compared to $167 million provided in 2023[22] - The Company declared cash dividends of$0.71 per common share for the three months ended December 31, 2024[18] Restructuring and Impairment - The Company anticipates total charges of $650 million to$700 million related to enterprise-wide restructuring initiatives aimed at modernizing technology services, with $245 million recorded for the nine months ended December 31, 2024[46] - Restructuring, impairment, and related charges for the nine months ended December 31, 2024 totaled$276 million, compared to $84 million for the same period in 2023[45] - The Company recorded$23 million in net charges for the three months ended December 31, 2024, related to restructuring and impairment[45] - The company incurred asset impairment charges of $83 million in 2024, compared to$28 million in 2023, indicating increased financial strain[22] Share Repurchases - The Company repurchased common stock amounting to $2,878 million in 2024, compared to$2,381 million in 2023[22] - The Company repurchased 1.5 million shares of common stock for $821 million at an average price of$537.48 per share during the three months ended December 31, 2024[152] - As of December 31, 2024, the total remaining authorization for share repurchases was $7.8 billion after a$4.0 billion increase approved in July 2024[156] Tax and Legal Matters - Income tax expense for the three months ended December 31, 2024, was $298 million, with a reported income tax rate of 24.3$6.4 billion as of December 31, 2024, with $775 million expected to be paid within the next twelve months[194] - The Company has paid approximately$2.0 billion as part of a settlement agreement related to opioid distribution claims as of December 31, 2024, with potential future payments of up to $5.9 billion through 2038[124] - The Company's estimated total litigation liabilities for opioid-related claims as of December 31, 2024, amount to$6.392 billion, down from $6.778 billion as of March 31, 2024[136] Segment Performance - U.S. Pharmaceutical segment revenues for the three months ended December 31, 2024 were$87,110 million, up from $73,023 million in the prior year, representing a 19$1,371 million, an increase from $1,205 million in the prior year, reflecting a 14$2,949 million, slightly down from $3,031 million in the prior year[174] - International segment revenues for the three months ended December 31, 2024 were$3,860 million, compared to $3,639 million in the prior year, marking a 6$850 million, which will be reported within the U.S. Pharmaceutical segment[44] - McKesson entered into an agreement to acquire a 70% controlling interest in Core Ventures for approximately $2.49 billion, subject to regulatory clearance[200] Other Financial Metrics - The Company recorded a charge of$666 million for the nine months ended December 31, 2024 related to the remeasurement of the Canadian retail disposal group[187] - The Company completed the sale of its Canadian retail disposal group for an adjusted purchase price of $9 million in cash and a$120 million note[187] - McKesson's gross profit margin for the nine months ended December 31, 2024, was 3.61%, down from 3.97% in the prior year[200]