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Restructuring, Impairment, and Related Charges, Net
 12 Months Ended
Mar. 31, 2025
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 $344 million, $115 million, and $209 million in fiscal 2025, fiscal 2024, and fiscal 2023, respectively. Of these charges $286 million were included in “Restructuring, impairment, and related charges, net” and $58 million was included in “Cost of sales” in the Consolidated Statement of Operations for the year ended March 31, 2025.
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 included 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 year ended March 31, 2025, the Company recorded charges of $298 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. The Company recorded charges of $45 million and $60 million for the years ended March 31, 2024 and 2023 related to this program, respectively, primarily consisting of employee severance and other employee-related costs within its RxTS segment, asset impairments and accelerated depreciation, including certain asset impairments primarily within its U.S. Pharmaceutical segment and real estate charges within Corporate, as well as facility and other exit-related costs. This restructuring program was substantially complete in fiscal 2024.
Fiscal 2025
Restructuring, impairment, and related charges, net for the year ended March 31, 2025 consisted of the following:
Year Ended March 31, 2025
(In millions)
U.S. Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
InternationalCorporate Total
Severance and employee-related costs, net$(2)$— $137 $— $3 $138 
Exit and other-related costs (3)
3 3 53 — 49 108 
Asset impairments and accelerated depreciation58 9 14 1 16 98 
Total$59 $12 $204 $1 $68 $344 
(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 $58 million within "Cost of sales" in the 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.
Fiscal 2024
Restructuring, impairment, and related charges, net for the year ended March 31, 2024 consisted of the following:
Year Ended March 31, 2024
(In millions)U.S. Pharmaceutical
Prescription Technology Solutions (1)
Medical-Surgical Solutions International
Corporate (1)
Total
Severance and employee-related costs, net$10 $— $(1)$2 $(1)$10 
Exit and other-related costs (2)
3 11 12 9 27 62 
Asset impairments and accelerated depreciation 4 — — 10 29 43 
Total$17 $11 $11 $21 $55 $115 
(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.
Fiscal 2023
Restructuring, impairment, and related charges, net for the year ended March 31, 2023 consisted of the following:
Year Ended March 31, 2023
(In millions)
U.S. Pharmaceutical (1)
Prescription Technology Solutions (1)
Medical-Surgical SolutionsInternational
Corporate (1)
Total
Severance and employee-related costs, net$6 $23 $2 $4 $— $35 
Exit and other-related costs (2)
7 7 3 21 64 102 
Asset impairments and accelerated depreciation
25 13 5 10 19 72 
Total$38 $43 $10 $35 $83 $209 
(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. Corporate includes costs for business transformation and optimization efforts related to the Company’s technology organization. The International segment includes costs related to the Company’s European divestitures.
The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the years ended March 31, 2025 and 2024:
(In millions)U.S. PharmaceuticalPrescription Technology SolutionsMedical-Surgical SolutionsInternationalCorporateTotal
Balance, March 31, 2023 (1)
$15 $26 $3 $13 $35 $92 
Restructuring, impairment, and related charges, net1711 11 21 55 115
Non-cash charges(4)— — (10)(29)(43)
Cash payments(15)(32)(13)(5)(40)(105)
Other (2)
5 — — (9)— (4)
Balance, March 31, 2024 (3)
18 5 1 10 21 55 
Restructuring, impairment, and related charges, net59 12 204 1 68 344 
Non-cash charges(58)(9)(14)(1)(16)(98)
Cash payments(8)(4)(99)(2)(51)(164)
Other (2)
(1)(3)(2)(7)2 (11)
Balance, March 31, 2025 (4)
$10 $1 $90 $1 $24 $126 
(1)    As of March 31, 2023, the total reserve balance was $92 million, of which $66 million was recorded in “Other accrued liabilities” and $26 million was recorded in “Other non-current liabilities” in the Company’s Consolidated Balance Sheet.
(2)    Other primarily includes cumulative translation adjustments as well as adjustments to Canadian retail disposal group reserves within International in fiscal 2025, and transfers to certain other liabilities for the remainder segments.
(3)    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 Consolidated Balance Sheet.
(4)    As of March 31, 2025, the total reserve balance was $126 million, of which $103 million was recorded in “Other accrued liabilities” and $23 million was recorded in “Other non-current liabilities” in the Company’s Consolidated Balance Sheet.
Long-Lived Asset Impairments
Fiscal 2025
There were no material long-lived asset impairments recorded in fiscal 2025.
Fiscal 2024
There were no material long-lived asset impairments recorded in fiscal 2024.
Fiscal 2023
There were no material long-lived asset impairments recorded in fiscal 2023.