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Leases | 12 Months Ended
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Mar. 31, 2023
Leases [Abstract] |
Leases | Leases Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2023 |  | 2022 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,635 |  |  | $ | 1,548 |  |
Current portion of operating lease liabilities | $ | 299 |  |  | $ | 297 |  |
Long-term operating lease liabilities | 1,402 |  |  | 1,366 |  |
Total operating lease liabilities (2) | $ | 1,701 |  |  | $ | 1,663 |  |
Finance leases |  |  |  |
Property, plant, and equipment, net | $ | 180 |  |  | $ | 206 |  |
Current portion of long-term debt | $ | 29 |  |  | $ | 25 |  |
Long-term debt | 173 |  |  | 185 |  |
Total finance lease liabilities | $ | 202 |  |  | $ | 210 |  |
Weighted-average remaining lease term (years) (3) |  |  |  |
Operating leases | 6.9 |  | 6.9 |
Finance leases | 7.8 |  | 8.8 |
Weighted-average discount rate (3) |  |  |  |
Operating leases | 3.03 | % |  | 2.47 | % |
Finance leases | 2.66 | % |  | 2.50 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. 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. These initiatives 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 well as 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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included under the caption “Assets held for sale” and “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. Amortization of the assets ceased upon classification as held for sale. (3)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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2023 |  | 2022 |  | 2021
Short-term lease cost | $ | 20 |  |  | $ | 43 |  |  | $ | 32 |
Operating lease cost | 384 |  |  | 431 |  |  | 465 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 24 |  |  | 33 |  |  | 23 |
Interest on lease liabilities | 6 |  |  | 5 |  |  | 6 |
Total finance lease cost | 30 |  |  | 38 |  |  | 29 |
Variable lease cost (1) | 128 |  |  | 127 |  |  | 125 |
Sublease income | (33) |  |  | (41) |  |  | (36) |
Total lease cost (2) | $ | 529 |  |  | $ | 598 |  |  | $ | 615 |
(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) | 2023 |  | 2022 |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (338) |  |  | $ | (356) |  |  | $ | (362) |  |
Operating cash flows from finance leases | (1) |  |  | — |  |  | (4) |  |
Financing cash flows from finance leases | (29) |  |  | (31) |  |  | (31) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases | $ | 462 |  |  | $ | 286 |  |  | $ | 321 |  |
Finance leases | 17 |  |  | 32 |  |  | 75 |  |
Maturities of lease liabilities as of March 31, 2023 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
Fiscal 2024 | $ | 340 |  |  | $ | 33 |  |  | $ | 373 |
Fiscal 2025 | 321 |  |  | 31 |  |  | 352 |
Fiscal 2026 | 273 |  |  | 29 |  |  | 302 |
Fiscal 2027 | 230 |  |  | 28 |  |  | 258 |
Fiscal 2028 | 183 |  |  | 26 |  |  | 209 |
Thereafter | 547 |  |  | 79 |  |  | 626 |
Total lease payments (1) | 1,894 |  |  | 226 |  |  | 2,120 |
Less imputed interest | (193) |  |  | (24) |  |  | (217) |
Present value of lease liabilities | $ | 1,701 |  |  | $ | 202 |  |  | $ | 1,903 |
(1)Total lease payments are not reduced by future minimum sublease income of $191 million which is due under noncancellable subleases. As of March 31, 2023, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $98 million that are not reflected in the table above. These operating leases will commence in calendar year 2023 with noncancellable lease terms of two to ten years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2023 and 2022, the total lease receivable was $342 million and $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, 2023, 2022, and 2021.
Leases | Leases Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2023 |  | 2022 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,635 |  |  | $ | 1,548 |  |
Current portion of operating lease liabilities | $ | 299 |  |  | $ | 297 |  |
Long-term operating lease liabilities | 1,402 |  |  | 1,366 |  |
Total operating lease liabilities (2) | $ | 1,701 |  |  | $ | 1,663 |  |
Finance leases |  |  |  |
Property, plant, and equipment, net | $ | 180 |  |  | $ | 206 |  |
Current portion of long-term debt | $ | 29 |  |  | $ | 25 |  |
Long-term debt | 173 |  |  | 185 |  |
Total finance lease liabilities | $ | 202 |  |  | $ | 210 |  |
Weighted-average remaining lease term (years) (3) |  |  |  |
Operating leases | 6.9 |  | 6.9 |
Finance leases | 7.8 |  | 8.8 |
Weighted-average discount rate (3) |  |  |  |
Operating leases | 3.03 | % |  | 2.47 | % |
Finance leases | 2.66 | % |  | 2.50 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. 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. These initiatives 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 well as 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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included under the caption “Assets held for sale” and “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. Amortization of the assets ceased upon classification as held for sale. (3)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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2023 |  | 2022 |  | 2021
Short-term lease cost | $ | 20 |  |  | $ | 43 |  |  | $ | 32 |
Operating lease cost | 384 |  |  | 431 |  |  | 465 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 24 |  |  | 33 |  |  | 23 |
Interest on lease liabilities | 6 |  |  | 5 |  |  | 6 |
Total finance lease cost | 30 |  |  | 38 |  |  | 29 |
Variable lease cost (1) | 128 |  |  | 127 |  |  | 125 |
Sublease income | (33) |  |  | (41) |  |  | (36) |
Total lease cost (2) | $ | 529 |  |  | $ | 598 |  |  | $ | 615 |
(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) | 2023 |  | 2022 |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (338) |  |  | $ | (356) |  |  | $ | (362) |  |
Operating cash flows from finance leases | (1) |  |  | — |  |  | (4) |  |
Financing cash flows from finance leases | (29) |  |  | (31) |  |  | (31) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases | $ | 462 |  |  | $ | 286 |  |  | $ | 321 |  |
Finance leases | 17 |  |  | 32 |  |  | 75 |  |
Maturities of lease liabilities as of March 31, 2023 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
Fiscal 2024 | $ | 340 |  |  | $ | 33 |  |  | $ | 373 |
Fiscal 2025 | 321 |  |  | 31 |  |  | 352 |
Fiscal 2026 | 273 |  |  | 29 |  |  | 302 |
Fiscal 2027 | 230 |  |  | 28 |  |  | 258 |
Fiscal 2028 | 183 |  |  | 26 |  |  | 209 |
Thereafter | 547 |  |  | 79 |  |  | 626 |
Total lease payments (1) | 1,894 |  |  | 226 |  |  | 2,120 |
Less imputed interest | (193) |  |  | (24) |  |  | (217) |
Present value of lease liabilities | $ | 1,701 |  |  | $ | 202 |  |  | $ | 1,903 |
(1)Total lease payments are not reduced by future minimum sublease income of $191 million which is due under noncancellable subleases. As of March 31, 2023, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $98 million that are not reflected in the table above. These operating leases will commence in calendar year 2023 with noncancellable lease terms of two to ten years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2023 and 2022, the total lease receivable was $342 million and $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, 2023, 2022, and 2021.
Leases | Leases Lessee Supplemental balance sheet information related to leases was as follows:
| March 31, |
(In millions, except lease term and discount rate) | 2023 |  | 2022 |
Operating leases (1) |  |  |  |
Operating lease right-of-use assets (2) | $ | 1,635 |  |  | $ | 1,548 |  |
Current portion of operating lease liabilities | $ | 299 |  |  | $ | 297 |  |
Long-term operating lease liabilities | 1,402 |  |  | 1,366 |  |
Total operating lease liabilities (2) | $ | 1,701 |  |  | $ | 1,663 |  |
Finance leases |  |  |  |
Property, plant, and equipment, net | $ | 180 |  |  | $ | 206 |  |
Current portion of long-term debt | $ | 29 |  |  | $ | 25 |  |
Long-term debt | 173 |  |  | 185 |  |
Total finance lease liabilities | $ | 202 |  |  | $ | 210 |  |
Weighted-average remaining lease term (years) (3) |  |  |  |
Operating leases | 6.9 |  | 6.9 |
Finance leases | 7.8 |  | 8.8 |
Weighted-average discount rate (3) |  |  |  |
Operating leases | 3.03 | % |  | 2.47 | % |
Finance leases | 2.66 | % |  | 2.50 | % |
(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. 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. These initiatives 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 well as 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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” These amounts were included under the caption “Assets held for sale” and “Liabilities held for sale” in the Consolidated Balance Sheet as of March 31, 2022. Amortization of the assets ceased upon classification as held for sale. (3)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 completed in fiscal 2023 as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” The components of lease cost were as follows:
| Years Ended March 31,
(In millions) | 2023 |  | 2022 |  | 2021
Short-term lease cost | $ | 20 |  |  | $ | 43 |  |  | $ | 32 |
Operating lease cost | 384 |  |  | 431 |  |  | 465 |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets | 24 |  |  | 33 |  |  | 23 |
Interest on lease liabilities | 6 |  |  | 5 |  |  | 6 |
Total finance lease cost | 30 |  |  | 38 |  |  | 29 |
Variable lease cost (1) | 128 |  |  | 127 |  |  | 125 |
Sublease income | (33) |  |  | (41) |  |  | (36) |
Total lease cost (2) | $ | 529 |  |  | $ | 598 |  |  | $ | 615 |
(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) | 2023 |  | 2022 |  | 2021 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases | $ | (338) |  |  | $ | (356) |  |  | $ | (362) |  |
Operating cash flows from finance leases | (1) |  |  | — |  |  | (4) |  |
Financing cash flows from finance leases | (29) |  |  | (31) |  |  | (31) |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |
Operating leases | $ | 462 |  |  | $ | 286 |  |  | $ | 321 |  |
Finance leases | 17 |  |  | 32 |  |  | 75 |  |
Maturities of lease liabilities as of March 31, 2023 were as follows:
(In millions) | Operating Leases |  | Finance Leases |  | Total
Fiscal 2024 | $ | 340 |  |  | $ | 33 |  |  | $ | 373 |
Fiscal 2025 | 321 |  |  | 31 |  |  | 352 |
Fiscal 2026 | 273 |  |  | 29 |  |  | 302 |
Fiscal 2027 | 230 |  |  | 28 |  |  | 258 |
Fiscal 2028 | 183 |  |  | 26 |  |  | 209 |
Thereafter | 547 |  |  | 79 |  |  | 626 |
Total lease payments (1) | 1,894 |  |  | 226 |  |  | 2,120 |
Less imputed interest | (193) |  |  | (24) |  |  | (217) |
Present value of lease liabilities | $ | 1,701 |  |  | $ | 202 |  |  | $ | 1,903 |
(1)Total lease payments are not reduced by future minimum sublease income of $191 million which is due under noncancellable subleases. As of March 31, 2023, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $98 million that are not reflected in the table above. These operating leases will commence in calendar year 2023 with noncancellable lease terms of two to ten years. Lessor The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2023 and 2022, the total lease receivable was $342 million and $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, 2023, 2022, and 2021.

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