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Business Combinations and Asset Acquisitions | 12 Months Ended
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Jun. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Business Combination | 2. Acquisitions Advanced Diabetes Supply Group ("ADS") On April 1, 2025, we completed the acquisition of ADS, one of the country's leading diabetic medical supplies providers to patients in the home, for a purchase price of approximately $1.1 billion in cash, subject to certain adjustments. ADS serves approximately 500,000 patients annually by providing diabetes therapies from leading manufacturers. ADS is part of our at-Home Solutions operating segment and we report ADS results in Other. We financed the acquisition of ADS with a combination of cash on hand and cash proceeds from new debt financing as described in Note 6. Transaction and integration costs associated with the ADS acquisition were $31 million during fiscal 2025. GI Alliance ("GIA") On January 30, 2025, we completed the acquisition of a 73 percent ownership interest in GIA, a gastroenterology management services organization, for a purchase price of approximately $2.8 billion in cash, subject to certain adjustments. Beginning on the third anniversary of the closing, we have the ability to exercise a call right to purchase up to 100 percent of the remaining outstanding interests. GIA's management services organization platform includes over 900 physicians across 345 practice locations in 20 states and has the ability to further expand both geographically and in other key therapeutic areas. We have accounted for the acquisition of the ownership interest in GIA as a business combination in accordance with ASC 805. We consolidate the results of GIA in our consolidated financial statements and report those consolidated results within our Pharma segment. Additionally, on May 30, 2025, we, through GIA, completed the acquisition of Urology America, a urology management services organization, for a purchase price of $360 million in cash and GIA equity, subject to certain adjustments. Transaction and integration costs associated with the GIA acquisitions were $75 million during fiscal 2025. Integrated Oncology Network ("ION") On December 2, 2024, we completed the acquisition of ION, a physician-led independent community oncology network, for a purchase price of $1.1 billion in cash, subject to certain adjustments. ION is a management services organization that supports more than 50 practice sites in 10 states representing more than 100 providers. ION supports a continuum of care across its member sites including medical oncology, radiation oncology, urology diagnostic testing, and other ancillary services. As part of the transaction, ION practices were integrated into Navista, our managed services organization intended to enhance efficiency for providers and patients, enable additional capabilities, and increase practice profitability of independent community oncologists. We report ION results within our Pharma segment. The portion of ION net earnings attributable to noncontrolling interest holders is reported as a reduction to net earnings in the consolidated statements of earnings. The acquisition was funded with available cash on hand. Transaction and integration costs associated with the ION acquisition were $30 million during fiscal 2025. Specialty Networks On March 18, 2024, we completed the acquisition of Specialty Networks for a purchase price of $1.2 billion in cash. Specialty Networks creates clinical and economic value for providers and partners across multiple specialty group purchasing organizations ("GPOs"): UroGPO, Gastrologix and GastroGPO, and United Rheumatology. Specialty Networks results are reflected within our Pharma segment. Transaction and integration costs associated with the Specialty Network acquisition were $7 million and $16 million during fiscal 2025 and 2024, respectfully. The acquisitions have positively impacted respective segment revenue and segment profit while increasing amortization and other acquisition-related costs and acquisition-related cash and share-based compensation costs during fiscal 2025. Fair Value of Assets Acquired and Liabilities Assumed The allocation of the purchase price for the acquisition of Urology America, ADS, GIA, and ION are not yet finalized and are subject to adjustment as we complete the valuation analysis of these acquisitions. The purchase prices are also subject to adjustment based on working capital requirements as set forth in the acquisition agreement. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date for Urology America, ADS, GIA, ION, and Specialty Networks:
(in millions) | Urology America |  | ADS |  | GIA |  | ION |  | Specialty Networks
Identifiable intangible assets: |  |  |  |  |  |  |  |  |
Customer intangibles (1) | $ | — |  |  | $ | 472 |  |  | $ | — |  |  | $ | 226 |  |  | $ | 480 |
Trade names (2) | 33 |  |  | 28 |  |  | 200 |  |  | 73 |  |  | 15 |
Developed technology and Other (3) | — |  |  | — |  |  | — |  |  | — |  |  | 20 |
Non-competition agreements (4) | — |  |  | — |  |  | 23 |  |  | — |  |  | 5 |
Total identifiable intangible assets acquired | 33 |  |  | 500 |  |  | 223 |  |  | 299 |  |  | 520 |
Identifiable net assets/(liabilities): |  |  |  |  |  |  |  |  |
Cash and equivalents | 4 |  |  | 14 |  |  | 53 |  |  | 8 |  |  | 23 |
Trade receivables, net | 24 |  |  | 97 |  |  | 191 |  |  | 59 |  |  | 17 |
Inventories | 3 |  |  | 78 |  |  | 21 |  |  | 4 |  |  | — |
Prepaid expenses and other | 3 |  |  | 8 |  |  | 14 |  |  | 5 |  |  | 2 |
Property and equipment, net | 28 |  |  | 1 |  |  | 75 |  |  | 39 |  |  | — |
Other assets | 41 |  |  | 376 |  |  | 312 |  |  | 52 |  |  | — |
Accounts payable | (20) |  |  | (104) |  |  | (89) |  |  | (10) |  |  | — |
Current portion of long-term obligations and other short-term borrowings | — |  |  | — |  |  | (1) |  |  | (3) |  |  | — |
Other accrued liabilities | (11) |  |  | (493) |  |  | (173) |  |  | (39) |  |  | (13) |
Long-term obligations, less current portion | (6) |  |  | — |  |  | (15) |  |  | (14) |  |  | — |
Deferred income taxes and other liabilities | (46) |  |  | (12) |  |  | (947) |  |  | (90) |  |  | (120) |
Total identifiable net assets/(liabilities) acquired | 53 |  |  | 465 |  |  | (336) |  |  | 310 |  |  | 429 |
Noncontrolling interest | — |  |  | — |  |  | — |  |  | (151) |  |  | — |
Goodwill | 307 |  |  | 578 |  |  | 3,124 |  |  | 910 |  |  | 784 |
Total net assets acquired | $ | 360 |  |  | $ | 1,043 |  |  | $ | 2,788 |  |  | $ | 1,069 |  |  | $ | 1,213 |
(1) The weighted-average useful life of customer intangibles ranges from 10 years to 20 years. (2) The weighted-average useful life of trade names ranges from 2 years to 10 years. (3) The weighted-average useful life of developed technology and other is 8 years. (4) The weighted-average useful life of non-competition agreements is 4 years.

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