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Goodwill and Intangible Assets, Net | 12 Months Ended
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Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill Changes in the carrying amount of goodwill were as follows:
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions |  | Medical-Surgical Solutions |  | International |  | Total
Balance, March 31, 2020 | $ | 3,924 |  |  | $ | 1,540 |  |  | $ | 2,453 |  |  | $ | 1,443 |  |  | $ | 9,360 |
Goodwill acquired | — |  |  | — |  |  | — |  |  | 5 |  |  | 5 |
Acquisition accounting, transfers, and other adjustments | — |  |  | 2 |  |  | — |  |  | — |  |  | 2 |
Other changes/disposals | (1) |  |  | — |  |  | — |  |  | — |  |  | (1) |
Impairment charges | — |  |  | — |  |  | — |  |  | (69) |  |  | (69) |
Foreign currency translation adjustments, net | 40 |  |  | — |  |  | — |  |  | 156 |  |  | 196 |
Balance, March 31, 2021 | 3,963 |  |  | 1,542 |  |  | 2,453 |  |  | 1,535 |  |  | 9,493 |
Goodwill acquired | — |  |  | — |  |  | — |  |  | 5 |  |  | 5 |
Foreign currency translation adjustments, net | (40) |  |  | — |  |  | — |  |  | (7) |  |  | (47) |
Balance, March 31, 2022 | $ | 3,923 |  |  | $ | 1,542 |  |  | $ | 2,453 |  |  | $ | 1,533 |  |  | $ | 9,451 |
Goodwill Impairment Charges The Company evaluates goodwill for impairment as of October 1 on an annual basis each year and at an interim date if indicators of potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The fair value of the reporting units was determined using a combination of an income approach based on a DCF model and a market approach based on appropriate valuation multiples observed for the reporting unit’s guideline public companies. Fair value estimates result from a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions that have been deemed reasonable by management as of the measurement date. Any material changes in key assumptions, including failure to improve operations of certain retail pharmacy stores, additional government reimbursement reductions, deterioration in the financial markets, an increase in interest rates or an increase in the cost of equity financing by market participants within the industry, or other unanticipated events and circumstances, may affect such estimates. The discount rates are the weighted-average cost of capital measuring the reporting unit’s cost of debt and equity financing weighted by the percentage of debt and percentage of equity in a company’s target capital. The unsystematic risk premium is an input factor used in calculating the discount rate that specifically addresses uncertainty related to the reporting unit’s future cash flow projections. Fair value assessments of the reporting unit are considered a Level 3 measurement due to the significance of unobservable inputs developed using company-specific information. The annual impairment testing performed for 2022, 2021, and 2020 did not indicate any impairment of goodwill. In the second quarter of 2021, the Company implemented a new segment reporting structure which resulted in four reportable segments: U.S. Pharmaceutical, RxTS, Medical-Surgical Solutions, and International. These reportable segments encompass all operating segments of the Company. This segment change prompted changes in multiple reporting units across the Company. As a result, goodwill included in impacted reporting units was reallocated using a relative fair value approach and assessed for impairment both before and after the reallocation. The Company recorded a goodwill impairment charge of $69 million in 2021 as the estimated fair value of the Europe Retail Pharmacy reporting unit was lower than its reassigned carrying value based on changes in the composition of the Europe Retail Pharmacy reporting unit within the International segment. This charge was recorded in “Goodwill impairment charges” in the Consolidated Statements of Operations. At March 31, 2021, the balance of goodwill for the reporting units in Europe was approximately nil and the remaining balance of goodwill in the International segment primarily relates to one of its reporting units in Canada. Refer to Financial Note 16, “Fair Value Measurements,” for more information on these nonrecurring fair value measurements. As of March 31, 2022 and 2021, accumulated goodwill impairment losses in the Company’s International segment were $0.7 billion and $3.6 billion, respectively. Most of the goodwill impairment for these reporting units was generally not deductible for income tax purposes. Intangible Assets Information regarding intangible assets is as follows:
| March 31, 2022 |  | March 31, 2021
(Dollars in millions) | Weighted- Average Remaining Amortization Period (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Amount
Customer relationships | 12 |  | $ | 2,777 |  |  | $ | (1,691) |  |  | $ | 1,086 |  |  | $ | 3,739 |  |  | $ | (2,269) |  |  | $ | 1,470 |
Service agreements | 9 |  | 1,085 |  |  | (573) |  |  | 512 |  |  | 1,081 |  |  | (513) |  |  | 568
Pharmacy licenses | — |  |  | — |  |  | — |  |  | — |  |  | 497 |  | (244) |  |  | 253
Trademarks and trade names | 12 |  | 819 |  |  | (386) |  |  | 433 |  |  | 925 |  | (394) |  |  | 531
Technology | 1 |  | 128 |  |  | (116) |  |  | 12 |  |  | 150 |  | (122) |  |  | 28
Other | 9 |  | 187 |  |  | (171) |  |  | 16 |  |  | 254 |  | (226) |  |  | 28
Total |  |  | $ | 4,996 |  |  | $ | (2,937) |  |  | $ | 2,059 |  | (1) | $ | 6,646 |  |  | $ | (3,768) |  |  | $ | 2,878 |
(1)Excludes net intangible assets of approximately $384 million related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” This amount was included under the caption “Assets held for sale” in the Consolidated Balance Sheet as of March 31, 2022. Amortization of these assets ceased upon classification as held for sale in the second and third quarters of 2022. All intangible assets were subject to amortization as of March 31, 2022 and 2021. Amortization expense of intangible assets was $332 million, $422 million, and $462 million for 2022, 2021, and 2020, respectively. Estimated annual amortization expense of intangible assets is as follows: $225 million, $214 million, $208 million, $177 million, and $171 million for 2023 through 2027, and $1.1 billion thereafter. Refer to Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” for more information on intangible asset impairment charges recorded in 2022, 2021, and 2020.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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