Goodwill and Intangible Assets, Net

6 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net The Company evaluates goodwill for impairment on an annual basis and at an interim date, if indicators of potential impairment exist. The Company voluntarily changed its annual goodwill impairment testing date from October 1st to April 1st to align with a change in timing of the Company’s annual long-term planning process. Accordingly, management determined that the change in accounting principle is preferable under the circumstance. This change has been applied prospectively from April 1, 2022 as retrospective application is deemed impracticable due to the inability to objectively determine the assumptions and significant estimates used in earlier periods without the benefit of hindsight. This change was not material to the Company’s consolidated financial statements as it did not delay, accelerate, or avoid any potential goodwill impairment charge. The annual impairment testing performed as of April 1, 2022 did not indicate an impairment of 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, 2022	$	3,923	$	1,542	$	2,453	$	1,533	$	9,451
Goodwill acquired	11		—		—		1		12


Foreign currency translation adjustments, net	(72)		—		—		(150)		(222)
Other adjustments	(2)		—		—		—		(2)
Balance, September 30, 2022	$	3,860	$	1,542	$	2,453	$	1,384	$	9,239

Information regarding intangible assets is as follows:


	September 30, 2022							March 31, 2022
(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	$	2,710	$	(1,703)	$	1,007	$	2,777	$	(1,691)	$	1,086
Service agreements	9	1,063		(591)		472		1,085		(573)		512

Trademarks and trade names	11	765		(402)		363		819		(386)		433
Technology	3	132		(120)		12		128		(116)		12
Other	9	190		(172)		18		187		(171)		16
Total		$	4,860	$	(2,988)	$	1,872	$	4,996	$	(2,937)	$	2,059

Amortization expense of intangible assets was $57 million and $84 million for the three months ended September 30, 2022 and 2021, respectively, and $113 million and $182 million for the six months ended September 30, 2022 and 2021, respectively. Estimated amortization expense of these assets is as follows: $108 million, $208 million, $202 million, $170 million, and $164 million for the remainder of fiscal 2023 and each of the succeeding years through fiscal 2027, respectively, and $1.0 billion thereafter. All intangible assets were subject to amortization as of September 30, 2022 and March 31, 2022. Amortization of intangible assets of the E.U. disposal group classified as held for sale ceased in the second quarter of fiscal 2022.