XML 37 R19.htm IDEA: XBRL DOCUMENT
v3.22.1

Leases | 12 Months Ended
--- | ---
Mar. 31, 2022
Leases, Operating [Abstract] |
Leases | LeasesIn the first quarter of 2020, the Company adopted amended guidance for leases using the modified retrospective method. Upon adoption of this amended guidance, the Company recorded $2.2 billion of operating lease liabilities, $2.1 billion of operating lease ROU assets, and a cumulative-effect adjustment of $69 million to opening retained earnings as of April 1, 2019. The adjustment to opening retained earnings included impairment charges of $89 million, net of tax, to the ROU assets primarily related to previously impaired long-lived assets at the retail pharmacies in the Company’s U.K. and Canadian businesses, partially offset by the derecognition of an existing deferred gain on the Company’s sale-leaseback transaction related to its former corporate headquarters building. The Company also elected to adopt the transition package of practical expedients provided within the amended guidance which eliminated the requirements to reassess lease identification, lease classification, and initial direct costs for leases which commenced before April 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated statements of operations and cash flows. Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2022 |  | 2021 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,548 |  |  | $ | 2,100 |  |
Current portion of operating lease liabilities | $ | 297 |  |  | $ | 390 |  |
Long-term operating lease liabilities | 1,366 |  |  | 1,867 |  |
Total operating lease liabilities (3) | $ | 1,663 |  |  | $ | 2,257 |  |
Finance leases |  |  |  |
Property, plant and equipment, net | $ | 206 |  |  | $ | 237 |  |
Current portion of long-term debt | $ | 25 |  |  | $ | 22 |  |
Long-term debt | 185 |  |  | 206 |  |
Total finance lease liabilities | $ | 210 |  |  | $ | 228 |  |
Weighted-average remaining lease term (Years) (4) |  |  |  |
Operating leases | 6.9 |  | 7.8 |
Finance leases | 8.8 |  | 10.1 |
Weighted-average discount rate (4) |  |  |  |
Operating leases | 2.47 | % |  | 2.53 | % |
Finance leases | 2.50 | % |  | 2.71 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” the Company rationalized its office space, including certain property leases, in North America during 2022. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. This initiative did not have a material financial impact to the Company’s operating lease ROU assets and liabilities. (2)Excludes operating lease right-of-use assets of approximately $494 million as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were 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. (3)Excludes current and long-term operating lease liabilities of approximately $83 million and $442 million, respectively, as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were included under the caption “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. (4)Lease terms and discount rates as of March 31, 2022 exclude leases classified as held for sale in the Consolidated Balance Sheet related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2022 |  | 2021 |  | 2020
Short-term lease cost | $ | 43 |  |  | $ | 32 |  |  | $ | 29 |
Operating lease cost | 431 |  |  | 465 |  |  | 459 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 33 |  |  | 23 |  |  | 14 |
Interest on lease liabilities | 5 |  |  | 6 |  |  | 5 |
Total finance lease cost | 38 |  |  | 29 |  |  | 19 |
Variable lease cost (1) | 127 |  |  | 125 |  |  | 125 |
Sublease income | (41) |  |  | (36) |  |  | (33) |
Total lease cost (2) | $ | 598 |  |  | $ | 615 |  |  | $ | 599 |
(1) These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage. (2) These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations. Supplemental cash flow information related to leases was as follows:
| Years Ended March 31, |
(In millions) | 2022 |  | 2021 |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (356) |  |  | $ | (362) |  |  | $ | (377) |  |
Operating cash flows from finance leases | — |  |  | (4) |  |  | (3) |  |
Financing cash flows from finance leases | (31) |  |  | (31) |  |  | (18) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases (1) | $ | 286 |  |  | $ | 321 |  |  | $ | 2,378 |  |
Finance leases | 32 |  |  | 75 |  |  | 166 |  |
(1) The amount for the year ended March 31, 2020 includes the transition adjustment of $2.1 billion for operating lease right-of-use assets recorded as of April 1, 2019 upon adoption of the amended leasing guidance included in ASU 2016-02, Leases. Maturities of lease liabilities as of March 31, 2022 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
2023 | $ | 328 |  |  | $ | 29 |  |  | $ | 357 |
2024 | 310 |  |  | 29 |  |  | 339 |
2025 | 268 |  |  | 27 |  |  | 295 |
2026 | 223 |  |  | 25 |  |  | 248 |
2027 | 180 |  |  | 24 |  |  | 204 |
Thereafter | 506 |  |  | 103 |  |  | 609 |
Total lease payments (1) | 1,815 |  |  | 237 |  |  | 2,052 |
Less imputed interest | (152) |  |  | (27) |  |  | (179) |
Present value of lease liabilities | $ | 1,663 |  |  | $ | 210 |  |  | $ | 1,873 |
(1)Total lease payments are not reduced by minimum sublease income of $201 million which are due under future noncancellable subleases. As of March 31, 2022, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $285 million that are not reflected in the table above. These operating leases will commence between 2023 and 2024 with noncancellable lease terms of five to 15 years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2022 and 2021, the total lease receivable was $298 million, respectively, with a weighted-average remaining lease term of approximately seven years. Interest income from these leases was not material for the years ended March 31, 2022, 2021, and 2020.
Leases | LeasesIn the first quarter of 2020, the Company adopted amended guidance for leases using the modified retrospective method. Upon adoption of this amended guidance, the Company recorded $2.2 billion of operating lease liabilities, $2.1 billion of operating lease ROU assets, and a cumulative-effect adjustment of $69 million to opening retained earnings as of April 1, 2019. The adjustment to opening retained earnings included impairment charges of $89 million, net of tax, to the ROU assets primarily related to previously impaired long-lived assets at the retail pharmacies in the Company’s U.K. and Canadian businesses, partially offset by the derecognition of an existing deferred gain on the Company’s sale-leaseback transaction related to its former corporate headquarters building. The Company also elected to adopt the transition package of practical expedients provided within the amended guidance which eliminated the requirements to reassess lease identification, lease classification, and initial direct costs for leases which commenced before April 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated statements of operations and cash flows. Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2022 |  | 2021 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,548 |  |  | $ | 2,100 |  |
Current portion of operating lease liabilities | $ | 297 |  |  | $ | 390 |  |
Long-term operating lease liabilities | 1,366 |  |  | 1,867 |  |
Total operating lease liabilities (3) | $ | 1,663 |  |  | $ | 2,257 |  |
Finance leases |  |  |  |
Property, plant and equipment, net | $ | 206 |  |  | $ | 237 |  |
Current portion of long-term debt | $ | 25 |  |  | $ | 22 |  |
Long-term debt | 185 |  |  | 206 |  |
Total finance lease liabilities | $ | 210 |  |  | $ | 228 |  |
Weighted-average remaining lease term (Years) (4) |  |  |  |
Operating leases | 6.9 |  | 7.8 |
Finance leases | 8.8 |  | 10.1 |
Weighted-average discount rate (4) |  |  |  |
Operating leases | 2.47 | % |  | 2.53 | % |
Finance leases | 2.50 | % |  | 2.71 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” the Company rationalized its office space, including certain property leases, in North America during 2022. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. This initiative did not have a material financial impact to the Company’s operating lease ROU assets and liabilities. (2)Excludes operating lease right-of-use assets of approximately $494 million as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were 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. (3)Excludes current and long-term operating lease liabilities of approximately $83 million and $442 million, respectively, as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were included under the caption “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. (4)Lease terms and discount rates as of March 31, 2022 exclude leases classified as held for sale in the Consolidated Balance Sheet related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2022 |  | 2021 |  | 2020
Short-term lease cost | $ | 43 |  |  | $ | 32 |  |  | $ | 29 |
Operating lease cost | 431 |  |  | 465 |  |  | 459 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 33 |  |  | 23 |  |  | 14 |
Interest on lease liabilities | 5 |  |  | 6 |  |  | 5 |
Total finance lease cost | 38 |  |  | 29 |  |  | 19 |
Variable lease cost (1) | 127 |  |  | 125 |  |  | 125 |
Sublease income | (41) |  |  | (36) |  |  | (33) |
Total lease cost (2) | $ | 598 |  |  | $ | 615 |  |  | $ | 599 |
(1) These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage. (2) These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations. Supplemental cash flow information related to leases was as follows:
| Years Ended March 31, |
(In millions) | 2022 |  | 2021 |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (356) |  |  | $ | (362) |  |  | $ | (377) |  |
Operating cash flows from finance leases | — |  |  | (4) |  |  | (3) |  |
Financing cash flows from finance leases | (31) |  |  | (31) |  |  | (18) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases (1) | $ | 286 |  |  | $ | 321 |  |  | $ | 2,378 |  |
Finance leases | 32 |  |  | 75 |  |  | 166 |  |
(1) The amount for the year ended March 31, 2020 includes the transition adjustment of $2.1 billion for operating lease right-of-use assets recorded as of April 1, 2019 upon adoption of the amended leasing guidance included in ASU 2016-02, Leases. Maturities of lease liabilities as of March 31, 2022 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
2023 | $ | 328 |  |  | $ | 29 |  |  | $ | 357 |
2024 | 310 |  |  | 29 |  |  | 339 |
2025 | 268 |  |  | 27 |  |  | 295 |
2026 | 223 |  |  | 25 |  |  | 248 |
2027 | 180 |  |  | 24 |  |  | 204 |
Thereafter | 506 |  |  | 103 |  |  | 609 |
Total lease payments (1) | 1,815 |  |  | 237 |  |  | 2,052 |
Less imputed interest | (152) |  |  | (27) |  |  | (179) |
Present value of lease liabilities | $ | 1,663 |  |  | $ | 210 |  |  | $ | 1,873 |
(1)Total lease payments are not reduced by minimum sublease income of $201 million which are due under future noncancellable subleases. As of March 31, 2022, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $285 million that are not reflected in the table above. These operating leases will commence between 2023 and 2024 with noncancellable lease terms of five to 15 years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2022 and 2021, the total lease receivable was $298 million, respectively, with a weighted-average remaining lease term of approximately seven years. Interest income from these leases was not material for the years ended March 31, 2022, 2021, and 2020.
Leases | LeasesIn the first quarter of 2020, the Company adopted amended guidance for leases using the modified retrospective method. Upon adoption of this amended guidance, the Company recorded $2.2 billion of operating lease liabilities, $2.1 billion of operating lease ROU assets, and a cumulative-effect adjustment of $69 million to opening retained earnings as of April 1, 2019. The adjustment to opening retained earnings included impairment charges of $89 million, net of tax, to the ROU assets primarily related to previously impaired long-lived assets at the retail pharmacies in the Company’s U.K. and Canadian businesses, partially offset by the derecognition of an existing deferred gain on the Company’s sale-leaseback transaction related to its former corporate headquarters building. The Company also elected to adopt the transition package of practical expedients provided within the amended guidance which eliminated the requirements to reassess lease identification, lease classification, and initial direct costs for leases which commenced before April 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated statements of operations and cash flows. Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2022 |  | 2021 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,548 |  |  | $ | 2,100 |  |
Current portion of operating lease liabilities | $ | 297 |  |  | $ | 390 |  |
Long-term operating lease liabilities | 1,366 |  |  | 1,867 |  |
Total operating lease liabilities (3) | $ | 1,663 |  |  | $ | 2,257 |  |
Finance leases |  |  |  |
Property, plant and equipment, net | $ | 206 |  |  | $ | 237 |  |
Current portion of long-term debt | $ | 25 |  |  | $ | 22 |  |
Long-term debt | 185 |  |  | 206 |  |
Total finance lease liabilities | $ | 210 |  |  | $ | 228 |  |
Weighted-average remaining lease term (Years) (4) |  |  |  |
Operating leases | 6.9 |  | 7.8 |
Finance leases | 8.8 |  | 10.1 |
Weighted-average discount rate (4) |  |  |  |
Operating leases | 2.47 | % |  | 2.53 | % |
Finance leases | 2.50 | % |  | 2.71 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” the Company rationalized its office space, including certain property leases, in North America during 2022. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. This initiative did not have a material financial impact to the Company’s operating lease ROU assets and liabilities. (2)Excludes operating lease right-of-use assets of approximately $494 million as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were 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. (3)Excludes current and long-term operating lease liabilities of approximately $83 million and $442 million, respectively, as of March 31, 2022 related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” These amounts were included under the caption “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. (4)Lease terms and discount rates as of March 31, 2022 exclude leases classified as held for sale in the Consolidated Balance Sheet related to the European divestiture activities discussed in more detail in Financial Note 2, “Held for Sale.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2022 |  | 2021 |  | 2020
Short-term lease cost | $ | 43 |  |  | $ | 32 |  |  | $ | 29 |
Operating lease cost | 431 |  |  | 465 |  |  | 459 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 33 |  |  | 23 |  |  | 14 |
Interest on lease liabilities | 5 |  |  | 6 |  |  | 5 |
Total finance lease cost | 38 |  |  | 29 |  |  | 19 |
Variable lease cost (1) | 127 |  |  | 125 |  |  | 125 |
Sublease income | (41) |  |  | (36) |  |  | (33) |
Total lease cost (2) | $ | 598 |  |  | $ | 615 |  |  | $ | 599 |
(1) These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage. (2) These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations. Supplemental cash flow information related to leases was as follows:
| Years Ended March 31, |
(In millions) | 2022 |  | 2021 |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (356) |  |  | $ | (362) |  |  | $ | (377) |  |
Operating cash flows from finance leases | — |  |  | (4) |  |  | (3) |  |
Financing cash flows from finance leases | (31) |  |  | (31) |  |  | (18) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases (1) | $ | 286 |  |  | $ | 321 |  |  | $ | 2,378 |  |
Finance leases | 32 |  |  | 75 |  |  | 166 |  |
(1) The amount for the year ended March 31, 2020 includes the transition adjustment of $2.1 billion for operating lease right-of-use assets recorded as of April 1, 2019 upon adoption of the amended leasing guidance included in ASU 2016-02, Leases. Maturities of lease liabilities as of March 31, 2022 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
2023 | $ | 328 |  |  | $ | 29 |  |  | $ | 357 |
2024 | 310 |  |  | 29 |  |  | 339 |
2025 | 268 |  |  | 27 |  |  | 295 |
2026 | 223 |  |  | 25 |  |  | 248 |
2027 | 180 |  |  | 24 |  |  | 204 |
Thereafter | 506 |  |  | 103 |  |  | 609 |
Total lease payments (1) | 1,815 |  |  | 237 |  |  | 2,052 |
Less imputed interest | (152) |  |  | (27) |  |  | (179) |
Present value of lease liabilities | $ | 1,663 |  |  | $ | 210 |  |  | $ | 1,873 |
(1)Total lease payments are not reduced by minimum sublease income of $201 million which are due under future noncancellable subleases. As of March 31, 2022, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $285 million that are not reflected in the table above. These operating leases will commence between 2023 and 2024 with noncancellable lease terms of five to 15 years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2022 and 2021, the total lease receivable was $298 million, respectively, with a weighted-average remaining lease term of approximately seven years. Interest income from these leases was not material for the years ended March 31, 2022, 2021, and 2020.

X
- References No definition available. + Details
Name: | us-gaap_LeasesOperatingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of lessor's direct financing leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_LessorDirectFinancingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of lessor's sales-type leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_LessorSalesTypeLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration