What caused McKesson's tax expenses to rise in Q4 2024?

McKesson's tax expenses rose in Q4 2024 due to a combination of factors related to its business operations and strategic initiatives: 1. **Acquisitions and Strategic Investments**: McKesson has been actively involved in acquisitions and strategic investments, such as the purchase of a controlling interest in PRISM Vision Holdings, LLC. These transactions can lead to increased tax expenses as they may result in changes to the company's tax liability, particularly if the acquired entities have different tax profiles than McKesson's existing operations. 2. **Global Operations and UK Taxation**: As a global healthcare services company, McKesson operates in various regions, including the UK, where it manages its own tax affairs and complies with local taxation laws and regulations. The company's international operations can lead to a more complex tax landscape, potentially resulting in higher tax expenses due to differences in tax rates and regulations across different jurisdictions. 3. **Pharmaceutical Distribution and Medical-Surgical Solutions**: McKesson's U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs. The Medical-Surgical Solutions segment offers medical-surgical supply distribution and logistics. These operations are subject to various taxes, including income taxes, on the revenues generated in these segments. Any increase in the revenue or profitability of these segments can lead to higher tax expenses. In conclusion, McKesson's tax expenses rose in Q4 2024 due to a combination of factors including acquisitions, global operations, and the nature of its business segments.