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Restructuring, Impairment, and Related Charges, Net
 12 Months Ended
Mar. 31, 2024
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 $115 million, $209 million, and $281 million in fiscal 2024, fiscal 2023, and fiscal 2022, respectively. These charges are included in “Restructuring, impairment, and related charges, net” in the Consolidated Statements of Operations.
Restructuring Initiatives
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 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.
During the first quarter of fiscal 2022, the Company approved an initiative to increase operational efficiencies and flexibility by transitioning to a partial remote work model for certain employees. This initiative primarily included the rationalization of the Company’s office space in North America. Where the Company ceased using office space, it exited the portion of the facility no longer used. It also retained and repurposed certain other office locations. The Company recorded charges of $124 million for the year ended March 31, 2022, primarily related to lease right-of-use and other long-lived asset impairments, lease exit costs, and accelerated depreciation and amortization. This initiative was substantially complete in fiscal 2022.
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 SolutionsInternational
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 depreciation4 — — 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 Solutions International
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.
Fiscal 2022
Restructuring, impairment, and related charges, net for the year ended March 31, 2022 consisted of the following:
Year Ended March 31, 2022
(In millions)U.S. PharmaceuticalPrescription Technology SolutionsMedical-Surgical SolutionsInternational
Corporate
Total
Severance and employee-related costs, net$8 $1 $(1)$8 $(7)$9 
Exit and other-related costs (1)
9 4 5 33 46 97 
Asset impairments and accelerated depreciation (2)
18 20 5 35 61 139 
Total$35 $25 $9 $76 $100 $245 
(1)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. For the Company’s International segment, costs primarily relate to optimization programs in Canada, exit-related actions for the Company’s European divestitures, and programs for operating model and cost optimization efforts in the U.K. For Corporate, primarily represents costs related to the transition to the partial remote work model described above and various other initiatives.
(2)Costs primarily relate to the transition to the partial remote work model described above.
The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the years ended March 31, 2024 and 2023:
(In millions)U.S. PharmaceuticalPrescription Technology SolutionsMedical-Surgical SolutionsInternationalCorporateTotal
Balance, March 31, 2022
$11 $3 $1 $56 $59 $130 
Restructuring, impairment, and related charges, net3843 10 35 83 209
Non-cash charges(25)(13)(5)(10)(19)(72)
Cash payments(9)(7)(3)(10)(86)(115)
Other (1)
— — — (58)(2)(60)
Balance, March 31, 2023 (2)
15 26 3 13 35 92 
Restructuring, impairment, and related charges, net17 11 11 21 55 115 
Non-cash charges(4)— — (10)(29)(43)
Cash payments(15)(32)(13)(5)(40)(105)
Other (1)
5 — — (9)— (4)
Balance, March 31, 2024 (3)
$18 $5 $1 $10 $21 $55 
(1)    Other primarily includes cumulative translation adjustments and transfers to certain other liabilities. For the Company’s International segment, other also includes a reduction to the liability for the divestitures of the E.U. disposal group and the U.K. disposal group in fiscal 2023, as discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.”
(2)    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.
(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.
Long-Lived Asset Impairments
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.
Fiscal 2022
In fiscal 2022, the Company recognized charges totaling $36 million to impair certain long-lived assets within the International segment related to the Company’s previous operations in Denmark and its retail pharmacy businesses in Canada. The Company used an income approach and a market approach to estimate the fair value of the long-lived assets.