Restructuring, Impairment, and Related Charges, Net

12 Months Ended

Mar. 31, 2026

Restructuring and Related Activities [Abstract]

Restructuring, Impairment, and Related Charges, Net

The Company recorded restructuring, impairment, and related charges, net of $245 million, $344 million, and $115 million in fiscal 2026, fiscal 2025, and fiscal 2024, 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 fourth quarter of fiscal 2026, the Company approved an initiative within its Prescription Technology Solutions segment to increase operational efficiencies and cost optimization efforts, with the intent of aligning with the Company’s long-term strategy. These initiatives include headcount reductions, the exit or downsizing of certain facilities, and other costs. The Company anticipates total charges between $200 million and $250 million, consisting primarily of employee severance and other employee-related costs, and facility and other exit-related costs, including long-lived asset impairments. The Company recorded immaterial charges associated with this initiative in the fourth quarter of fiscal 2026, primarily related to asset impairments, as well as employee severance and other employee-related costs. This program is anticipated to be substantially complete by the end of fiscal 2029.

During the second quarter of fiscal 2025, the Company approved enterprise-wide initiatives to modernize and accelerate the technology service operating model which were intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. These initiatives include cost reduction efforts and support other rationalization efforts within Corporate, and the Medical-Surgical Solutions and North American 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, 2026, the Company recorded charges of $170 million related to the initiatives, which primarily includes facility, exit and other related costs as well as severance and other employee-related costs. For the year ended March 31, 2025, the Company recorded charges of $298 million related to the initiatives, which primarily included severance and other employee-related costs as well as facility, exit and other related costs, including long-lived asset impairments.

Fiscal 2026

Restructuring, impairment, and related charges, net for the year ended March 31, 2026 consisted of the following:


	Year Ended March 31, 2026
(In millions)	North American Pharmaceutical (1)		Prescription Technology Solutions (2)		Medical-Surgical Solutions (3)		Corporate & Other (4)		Total
Severance and employee-related costs, net	$	9	$	3	$	14	$	(1)	$	25
Exit and other-related costs (5)	3		—		37		151		191
Asset impairments and accelerated depreciation	12		17		(8)		8		29
Total	$	24	$	20	$	43	$	158	$	245

(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American Pharmaceutical segment.

(2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Prescription Technology Solutions segment.

(3)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment.

(4)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Corporate and other activities.

(5)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 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)	North American Pharmaceutical (1)		Oncology & Multispecialty		Prescription Technology Solutions		Medical-Surgical Solutions (2)		Corporate & Other (3)		Total
Severance and employee-related costs, net	$	(3)	$	1	$	—	$	137	$	3	$	138
Exit and other-related costs (4)	3		—		3		53		49		108
Asset impairments and accelerated depreciation	59		—		9		14		16		98
Total	$	59	$	1	$	12	$	204	$	68	$	344

(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American Pharmaceutical segment, including an inventory impairment charge 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)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Corporate and other activities.

(4)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)	North American Pharmaceutical (1)		Oncology & Multispecialty(1)		Prescription Technology Solutions		Medical-Surgical Solutions		Corporate & Other (1)(2)		Total
Severance and employee-related costs, net	$	7	$	5	$	—	$	(1)	$	(1)	$	10
Exit and other-related costs (3)	3		1		11		12		35		62
Asset impairments and accelerated depreciation	10		3		—		—		30		43
Total	$	20	$	9	$	11	$	11	$	64	$	115

(1)Includes costs related to operational efficiencies and cost optimization efforts to support the Company’s North American Pharmaceutical, Oncology & Multispecialty, Corporate and other activities.

(2)Corporate & other includes costs for business transformation and optimization efforts related to the Company’s technology organization and costs related to the Company’s divested European operations.

(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.

The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the years ended March 31, 2026 and 2025:


(In millions)	North American Pharmaceutical		Oncology & Multispecialty		Prescription Technology Solutions		Medical-Surgical Solutions		Corporate & Other		Total
Balance, March 31, 2024 (1)	$	23	$	3	$	5	$	1	$	23	$	55
Restructuring, impairment, and related charges, net	59		1		12		204		68		344
Non-cash charges	(58)		(1)		(9)		(14)		(16)		(98)
Cash payments	(8)		(2)		(4)		(99)		(51)		(164)
Other (2)	(5)		(1)		(3)		(2)		—		(11)
Balance, March 31, 2025 (3)	11		—		1		90		24		126
Restructuring, impairment, and related charges, net	24		—		20		43		158		245
Non-cash charges	(12)		—		(17)		8		(8)		(29)
Cash payments	(4)		—		(1)		(133)		(161)		(299)
Other (2)	(1)		—		—		2		—		1
Balance, March 31, 2026 (4)	$	18	$	—	$	3	$	10	$	13	$	44

(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 Consolidated Balance Sheet.

(2) Other primarily includes cumulative translation adjustments as well as adjustments to Canadian retail disposal group reserves within North American Pharmaceutical segment in fiscal 2025, and transfers to certain other liabilities for the remaining segments.

(3) 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.

(4) As of March 31, 2026, the total reserve balance was $44 million, of which $30 million was recorded in “Other accrued liabilities” and $14 million was recorded in “Other non-current liabilities” in the Company’s Consolidated Balance Sheet.

Long-Lived Asset Impairments

There were no material long-lived asset impairments recorded for any of the years presented.