Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2025

Accounting Policies [Abstract]

Schedule of Revenue and Gross Trade Receivables Percentage by Major Customers

The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:

	Percent of Revenue						Percent of Gross Trade Receivables at June 30
	2025		2024		2023		2025		2024
CVS Health	30	%	24	%	25	%	26	%	22	%
OptumRx	—		17	%	16	%	—		6	%

Components of Property and Equipment

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.

We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance, and all other post-implementation stage activities are expensed as they are incurred.

Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $488 million, $470 million, and $441 million for fiscal 2025, 2024, and 2023, respectively.

The following table presents the components of property and equipment, net at June 30:

(in millions)	2025		2024
Land, building, and improvements	$	2,178	$	1,879
Machinery and equipment	2,685		2,367
Capitalized software held for internal use	1,940		1,744
Furniture and fixtures	136		128
Construction in progress	577		577
Total property and equipment, at cost	7,516		6,695
Accumulated depreciation and amortization	(4,658)		(4,166)
Property and equipment, net	$	2,858	$	2,529

Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term

obligations, which was 5 percent at June 30, 2025. The amount of capitalized interest was immaterial for all periods presented.

Schedule Of Share-Based Payment Valuation Assumptions

The key assumptions for the Monte Carlo valuation model are as follows:

Award Year	Risk-Free Interest Rate (2)	Expected Volatility (3)
2023	3.12%	32.41	%
2023 Modified (1)	5.13%	26.58	%
2024	4.66%	23.99	%
2025	3.89%	24.54	%

(1)    There was a modification of prior year awards in fiscal 2024 that required a new Monte Carlo Simulation valuation model.

(2)    Based on the U.S. Treasury yields over a term comparable to the remaining performance period.

(3)    Based on historical volatility and implied volatility indications.