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Restructuring, Impairment, and Related Charges | 3 Months Ended
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Jun. 30, 2021
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment, and Related Charges | Restructuring, Impairment, and Related Charges The Company recorded restructuring, impairment, and related charges of $158 million and $56 million during the three months ended June 30, 2021 and 2020, respectively. These charges are included in “Restructuring, impairment, and related charges” in the Condensed Consolidated Statements of Operations. In addition, charges related to restructuring initiatives are included in “Cost of sales” in the Condensed Consolidated Statements of Operations and were not material for the three months ended June 30, 2021 and 2020. Restructuring Initiatives During the first quarter of 2022, the Company approved an initiative to increase operational efficiencies and flexibility by transitioning to a partial remote work model for certain employees. This initiative primarily includes the rationalization of the Company’s office space in North America. Where it determines to cease using office space, the Company plans to exit the portion of the facility no longer used. It also may retain and repurpose certain other office locations. The Company expects to incur total charges of approximately $180 million to $280 million for this initiative, consisting primarily of exit related costs, accelerated depreciation and amortization of long-lived assets, and asset impairments. The Company recorded charges of $95 million in the three months ended June 30, 2021. This initiative is anticipated to be completed in 2022. Charges primarily relate to lease right-of-use and other long-lived asset impairments, lease exit costs, and accelerated depreciation and amortization. During the first quarter of 2021, the Company committed to an initiative within the United Kingdom (“U.K.”), which is included in the Company’s International segment, to further drive operational changes in technologies and business processes, efficiencies, and cost savings. The initiative includes reducing the number of retail pharmacy stores, decommissioning obsolete technologies and processes, reorganizing and consolidating certain business operations, and related headcount reductions. The Company expects to incur total charges of approximately $85 million to $90 million, of which $63 million of charges were recorded to date. The Company recorded charges of $6 million and $14 million, respectively, in the three months ended June 30, 2021 and 2020, primarily related to asset impairments and accelerated depreciation expense as well as employee severance and other employee-related costs. The initiative is anticipated to be substantially complete in 2022 and estimated remaining charges primarily consist of accelerated amortization of long-lived assets, facility and other exit costs, and employee-related costs. Restructuring, impairment, and related charges during the three months ended June 30, 2021 consisted of the following:
| Three Months Ended June 30, 2021
(In millions) | U.S. Pharmaceutical (1) |  | Prescription Technology Solutions (1) |  | Medical-Surgical Solutions (1) |  | International (2) |  | Corporate (1) |  | Total
Severance and employee-related costs, net | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | 14 |
Exit and other-related costs (3) | 2 |  |  | 1 |  |  | 2 |  |  | 14 |  |  | 21 |  |  | 40 |
Asset impairments and accelerated depreciation | 8 |  |  | 17 |  |  | 4 |  |  | 34 |  |  | 41 |  |  | 104 |
Total | $ | 12 |  |  | $ | 18 |  |  | $ | 6 |  |  | $ | 60 |  |  | $ | 62 |  |  | $ | 158 |
(1)Costs primarily relate to the transition to the partial remote work model described above. (2)Primarily represents costs related to the transition to the partial remote work model and U.K. operating model and cost optimization efforts described above, as well as costs for optimization programs in Canada. (3)Exit and other-related costs primarily consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. Restructuring, impairment, and related charges during the three months ended June 30, 2020 consisted of the following:
| Three Months Ended June 30, 2020
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions |  | Medical-Surgical Solutions |  | International (1) |  | Corporate (2) |  | Total
Severance and employee-related costs, net | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |  |  | $ | 20 |  |  | $ | 38 |
Exit and other-related costs (3) | 1 |  |  | — |  |  | 3 |  |  | 2 |  |  | 7 |  |  | 13 |
Asset impairments and accelerated depreciation | — |  |  | — |  |  | — |  |  | 4 |  |  | 1 |  |  | 5 |
Total | $ | 2 |  |  | $ | — |  |  | $ | 3 |  |  | $ | 23 |  |  | $ | 28 |  |  | $ | 56 |
(1)Primarily represents costs associated with the U.K. operating model and cost optimization efforts described above, and an operating model and cost optimization initiative which was substantially completed in the year ended March 31, 2021. (2)Primarily represents costs associated with an operating model and cost optimization initiative which was substantially completed in the year ended March 31, 2021. (3)Exit and other-related costs primarily include project consulting fees. The following table summarizes the activity related to the restructuring liabilities associated with the Company’s restructuring initiatives for the three months ended June 30, 2021:
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions |  | Medical-Surgical Solutions |  | International |  | Corporate |  | Total
Balance, March 31, 2021 (1) | $ | 19 |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | 66 |  |  | $ | 59 |  |  | $ | 151 |
Restructuring, impairment, and related charges | 12 |  |  | 18 |  |  | 6 |  |  | 60 |  |  | 62 |  |  | 158 |
Non-cash charges | (8) |  |  | (17) |  |  | (4) |  |  | (34) |  |  | (41) |  |  | (104) |
Cash payments | (5) |  |  | (1) |  |  | (2) |  |  | (5) |  |  | (8) |  |  | (21) |
Other | — |  |  | — |  |  | (1) |  |  | (3) |  |  | (3) |  |  | (7) |
Balance, June 30, 2021 (2) | $ | 18 |  |  | $ | 4 |  |  | $ | 2 |  |  | $ | 84 |  |  | $ | 69 |  |  | $ | 177 |
(1)As of March 31, 2021, the total reserve balance was $151 million, of which $99 million was recorded in “Other accrued liabilities” and $52 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet. (2)As of June 30, 2021, the total reserve balance was $177 million, of which $127 million was recorded in “Other accrued liabilities” and $50 million was recorded in “Other non-current liabilities” in the Condensed Consolidated Balance Sheet.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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