XML 37 R19.htm IDEA: XBRL DOCUMENT v3.25.1
Goodwill and Intangible Assets, Net
 12 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill
Changes in the carrying amount of goodwill were as follows:
(In millions)U.S. Pharmaceutical Prescription Technology SolutionsMedical-Surgical SolutionsInternationalCorporateTotal
Balance, March 31, 2023$4,050 $2,005 $2,453 $1,439 $— $9,947 
Goodwill acquired 80 19 83 13 — 195 
Foreign currency translation adjustments, net— — — (3)— (3)
Other adjustments(7)— — — — (7)
Balance, March 31, 20244,123 2,024 2,536 1,449 — 10,132 
Goodwill acquired 1 11 — 4 — 16 
Disposals (1)
— — — (46)— (46)
Foreign currency translation adjustments, net— — — (80)— (80)
Other adjustments 8 (8)(29)— 29 — 
Balance, March 31, 2025$4,132 $2,027 $2,507 $1,327 $29 $10,022 
(1)Goodwill related to the Canadian retail disposal group discussed in Financial Note 2, “Business Acquisitions and Divestitures,”
Goodwill Impairment Charges
The Company evaluates goodwill for impairment on an annual basis in the first fiscal quarter, and more frequently if indicators for potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit.
The fair value of the reporting units is determined using a combination of an income approach based on a DCF model and a market approach based on appropriate valuation multiples observed for the reporting unit’s guideline public companies. Fair value estimates result from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions that have been deemed reasonable by management as of the measurement date. Any material changes in key assumptions, including failure to improve operations of certain retail pharmacy stores, additional government reimbursement reductions, deterioration in the financial markets, an increase in interest rates, or an increase in the cost of equity financing by market participants within the industry, or other unanticipated events and circumstances, may affect such estimates. The discount rates are the weighted-average cost of capital measuring the reporting unit’s cost of debt and equity financing weighted by the percentage of debt and percentage of equity in a company’s target capital. The unsystematic risk premium is an input factor used in calculating the discount rate that specifically addresses uncertainty related to the reporting unit’s future cash flow projections. Fair value assessments of the reporting unit are considered a Level 3 measurement due to the significance of unobservable inputs developed using company-specific information.
The annual impairment testing performed for fiscal 2025, fiscal 2024, and fiscal 2023 did not indicate any impairment of goodwill.
Intangible Assets
Information regarding intangible assets were as follows:
March 31, 2025March 31, 2024
(Dollars in millions)Weighted-
Average
Remaining
Amortization
Period
(Years)		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Gross
Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Amount
Customer relationships10$1,475 $(650)$825 $1,830 $(701)$1,129 
Service agreements91,116 (728)388 1,126 (676)450
Trademarks and trade names13378 (278)100 759(395)364
Technology9288 (141)147 284(125)159
Other731 (27)4 34(26)8
Total$3,288 $(1,824)$1,464 $4,033 $(1,923)$2,110 
(1)During the third quarter of fiscal 2024, the Company performed a review of its intangible assets and removed from the balance sheet $1.4 billion of fully amortized gross intangible assets and the corresponding accumulated amortization associated with the assets that no longer provide an economic benefit, are no longer in use, or for which the related contract has expired.
All intangible assets were subject to amortization as of March 31, 2025 and 2024. Amortization of intangible assets of the Canadian retail disposal group previously classified as held for sale and disposed in December 2024 ceased in the second quarter of fiscal 2025. Amortization expense of intangible assets was $226 million, $249 million, and $236 million for fiscal 2025, fiscal 2024, and fiscal 2023, respectively.
Estimated amortization expense of the assets listed in the table above is as follows:
(In millions)Estimated Amortization Expense
Fiscal 2026$173 
Fiscal 2027168 
Fiscal 2028164 
Fiscal 2029162 
Fiscal 2030157 
Thereafter640