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Restructuring, Impairment, and Related Charges, Net | 6 Months Ended
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Sep. 30, 2024
Restructuring and Related Activities [Abstract] |
Restructuring, Impairment, and Related Charges, Net | Restructuring, Impairment, and Related Charges, Net The Company recorded restructuring, impairment, and related charges, net of $234 million and $28 million for the three months ended September 30, 2024 and 2023, respectively, and $244 million and $80 million for the six months ended September 30, 2024 and 2023, respectively. Of these charges $171 million and $181 million were included in “Restructuring, impairment, and related charges, net” and $63 million was included in “Cost of sales” in the Condensed Consolidated Statement of Operations, for each of the three and six months ended September 30, 2024, respectively. Restructuring Initiatives During the second quarter of fiscal 2025, the Company approved enterprise-wide initiatives to modernize and accelerate the technology service operating model, which are intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. These initiatives will also include cost reduction efforts and support other rationalization efforts within Corporate, and the Medical-Surgical Solutions, and U.S. Pharmaceutical segments to help realize long-term sustainable growth. The Company anticipates total charges related to these initiatives of $650 million to $700 million, consisting primarily of employee severance and other employee-related costs as well as facility, exit and other related costs, including long-lived asset impairments. These programs are anticipated to be substantially complete in fiscal 2028. For the three and six months ended September 30, 2024, the Company recorded charges of $227 million related to the initiatives, which primarily includes severance and other employee-related costs as well as facility exit and other related costs, including long-lived asset impairments. During the fourth quarter of fiscal 2023, the Company approved a broad set of initiatives to drive operational efficiencies and increase cost optimization efforts, with the intent of simplifying its infrastructure and realizing long-term sustainable growth. These initiatives included headcount reductions, primarily consisting of employee severance and other employee-related costs within the RxTS segment, and the exit or downsizing of certain facilities. For the three and six months ended September 30, 2023, the Company recorded charges of $3 million and $39 million related to this program, respectively, which primarily included real estate and other related asset impairments and facility costs within Corporate. This restructuring program was substantially complete in fiscal 2024. Restructuring, impairment, and related charges, net for the three months ended September 30, 2024 and 2023 consisted of the following:
| Three Months Ended September 30, 2024
(In millions) | U.S. Pharmaceutical (1) |  | Prescription Technology Solutions |  | Medical-Surgical Solutions (2) |  | International |  | Corporate |  | Total
Severance and employee-related costs, net | $ | 1 |  |  | $ | — |  |  | $ | 144 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 149 |
Exit and other-related costs (3) | — |  |  | — |  |  | 3 |  |  | (1) |  |  | 10 |  |  | 12 |
Asset impairments and accelerated depreciation | 63 |  |  | 1 |  |  | — |  |  | — |  |  | 9 |  |  | 73 |
Total | $ | 64 |  |  | $ | 1 |  |  | $ | 147 |  |  | $ | (1) |  |  | $ | 23 |  |  | $ | 234 |
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s U.S. Pharmaceutical segment, including an inventory impairment of $63 million within "Cost of sales" in the Condensed Consolidated Statement of Operations. (2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment. (3)Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred.
| Three Months Ended September 30, 2023
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions (1) |  | Medical-Surgical Solutions |  | International |  | Corporate |  | Total
Severance and employee-related costs, net | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | 10 |
Exit and other-related costs (2) | 1 |  |  | 3 |  |  | 4 |  |  | 4 |  |  | 6 |  |  | 18 |
Asset impairments and accelerated depreciation | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 9 |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 28 |
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s technology solutions. (2)Exit and other-related costs 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, net for the six months ended September 30, 2024 and 2023 consisted of the following:
| Six Months Ended September 30, 2024
(In millions) | U.S. Pharmaceutical (1) |  | Prescription Technology Solutions |  | Medical-Surgical Solutions (2) |  | International |  | Corporate |  | Total
Severance and employee-related costs, net | $ | 1 |  |  | $ | — |  |  | $ | 144 |  |  | $ | — |  |  | $ | 3 |  |  | $ | 148 |
Exit and other-related costs (3) | — |  |  | 3 |  |  | 6 |  |  | (1) |  |  | 12 |  |  | 20 |
Asset impairments and accelerated depreciation | 64 |  |  | 2 |  |  | — |  |  | 1 |  |  | 9 |  |  | 76 |
Total | $ | 65 |  |  | $ | 5 |  |  | $ | 150 |  |  | $ | — |  |  | $ | 24 |  |  | $ | 244 |
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s U.S. Pharmaceutical segment, including an inventory impairment of $63 million within "Cost of sales" in the Condensed Consolidated Statement of Operations. (2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment. (3)Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred.
| Six Months Ended September 30, 2023
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions (1) |  | Medical-Surgical Solutions |  | International |  | Corporate (1) |  | Total
Severance and employee-related costs, net | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 12 |
Exit and other-related costs (2) | 2 |  |  | 5 |  |  | 6 |  |  | 9 |  |  | 18 |  |  | 40 |
Asset impairments and accelerated depreciation | — |  |  | — |  |  | — |  |  | 1 |  |  | 27 |  |  | 28 |
Total | $ | 11 |  |  | $ | 5 |  |  | $ | 6 |  |  | $ | 12 |  |  | $ | 46 |  |  | $ | 80 |
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s technology solutions. (2)Exit and other-related costs consist of accruals for costs to be incurred without future economic benefits, project consulting fees, and other exit costs expensed as incurred. The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the six months ended September 30, 2024:
(In millions) | U.S. Pharmaceutical |  | Prescription Technology Solutions |  | Medical-Surgical Solutions |  | International |  | Corporate |  | Total
Balance, March 31, 2024 (1) | $ | 18 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 10 |  |  | $ | 21 |  |  | $ | 55 |
Restructuring, impairment, and related charges, net | 65 |  |  | 5 |  |  | 150 |  |  | — |  |  | 24 |  |  | 244 |
Non-cash charges | (64) |  |  | (2) |  |  | — |  |  | (1) |  |  | (9) |  |  | (76) |
Cash payments | (4) |  |  | (2) |  |  | (7) |  |  | (2) |  |  | (10) |  |  | (25) |
Other (2) | (1) |  |  | (2) |  |  | — |  |  | (5) |  |  | (2) |  |  | (10) |
Balance, September 30, 2024 (3) | $ | 14 |  |  | $ | 4 |  |  | $ | 144 |  |  | $ | 2 |  |  | $ | 24 |  |  | $ | 188 |
(1)As of March 31, 2024, the total reserve balance was $55 million, of which $24 million was recorded in “Other accrued liabilities” and $31 million was recorded in “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet. (2)Other primarily includes cumulative translation adjustments within International, and transfers to certain other liabilities, including Canadian retail disposal group reserves. (3)As of September 30, 2024, the total reserve balance was $188 million, of which $160 million was recorded in “Other accrued liabilities” and $28 million was recorded in “Other non-current liabilities” in the Company’s 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 -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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