Leases

12 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

Lessee

Supplemental balance sheet information related to leases was as follows:

	March 31,
(In millions, except lease term and discount rate)	2024			2023
Operating leases (1)
Operating lease right-of-use assets	$	1,729		$	1,635
Current portion of operating lease liabilities	$	295		$	299
Long-term operating lease liabilities	1,466			1,402
Total operating lease liabilities	$	1,761		$	1,701
Finance leases
Property, plant, and equipment, net	$	165		$	180
Current portion of long-term debt	$	30		$	29
Long-term debt	163			173
Total finance lease liabilities	$	193		$	202
Weighted-average remaining lease term (years)
Operating leases	7.0			6.9
Finance leases	7.0			7.8
Weighted-average discount rate
Operating leases	3.62		%	3.03		%
Finance leases	2.98		%	2.66		%

(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. These initiatives did not have a material financial impact to the Company’s operating lease ROU assets and liabilities.

The components of lease cost were as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Short-term lease cost	$	14	$	20	$	43
Operating lease cost	418		384		431
Finance lease cost:
Amortization of right-of-use assets	25		24		33
Interest on lease liabilities	5		6		5
Total finance lease cost	30		30		38
Variable lease cost (1)	131		128		127
Sublease income	(35)		(33)		(41)
Total lease cost (2)	$	558	$	529	$	598

(1)    These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage.

(2)    These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations.

Supplemental cash flow information related to leases was as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(339)	$	(338)	$	(356)
Operating cash flows from finance leases	(1)		(1)		—
Financing cash flows from finance leases	(47)		(29)		(31)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	391	$	462	$	286
Finance leases	21		17		32

Maturities of lease liabilities as of March 31, 2024 were as follows:

(In millions)	Operating Leases		Finance Leases		Total
Fiscal 2025	$	359	$	33	$	392
Fiscal 2026	341		33		374
Fiscal 2027	293		32		325
Fiscal 2028	241		29		270
Fiscal 2029	195		27		222
Thereafter	595		63		658
Total lease payments (1)	2,024		217		2,241
Less imputed interest	(263)		(24)		(287)
Present value of lease liabilities	$	1,761	$	193	$	1,954

(1)Total lease payments are not reduced by future minimum sublease income of $166 million, which is due under noncancellable subleases.

As of March 31, 2024, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $354 million that are not reflected in the table above. These operating leases will commence in calendar year 2024 with noncancellable lease terms of three to 15 years.

Lessor

The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2024 and 2023, the total lease receivable was $365 million and $342 million, respectively, with a weighted-average remaining lease term of approximately eight years. Interest income from these leases was not material for the years ended March 31, 2024, 2023, and 2022.

Leases

Leases

Lessee

Supplemental balance sheet information related to leases was as follows:

	March 31,
(In millions, except lease term and discount rate)	2024			2023
Operating leases (1)
Operating lease right-of-use assets	$	1,729		$	1,635
Current portion of operating lease liabilities	$	295		$	299
Long-term operating lease liabilities	1,466			1,402
Total operating lease liabilities	$	1,761		$	1,701
Finance leases
Property, plant, and equipment, net	$	165		$	180
Current portion of long-term debt	$	30		$	29
Long-term debt	163			173
Total finance lease liabilities	$	193		$	202
Weighted-average remaining lease term (years)
Operating leases	7.0			6.9
Finance leases	7.0			7.8
Weighted-average discount rate
Operating leases	3.62		%	3.03		%
Finance leases	2.98		%	2.66		%

(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. These initiatives did not have a material financial impact to the Company’s operating lease ROU assets and liabilities.

The components of lease cost were as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Short-term lease cost	$	14	$	20	$	43
Operating lease cost	418		384		431
Finance lease cost:
Amortization of right-of-use assets	25		24		33
Interest on lease liabilities	5		6		5
Total finance lease cost	30		30		38
Variable lease cost (1)	131		128		127
Sublease income	(35)		(33)		(41)
Total lease cost (2)	$	558	$	529	$	598

(1)    These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage.

(2)    These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations.

Supplemental cash flow information related to leases was as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(339)	$	(338)	$	(356)
Operating cash flows from finance leases	(1)		(1)		—
Financing cash flows from finance leases	(47)		(29)		(31)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	391	$	462	$	286
Finance leases	21		17		32

Maturities of lease liabilities as of March 31, 2024 were as follows:

(In millions)	Operating Leases		Finance Leases		Total
Fiscal 2025	$	359	$	33	$	392
Fiscal 2026	341		33		374
Fiscal 2027	293		32		325
Fiscal 2028	241		29		270
Fiscal 2029	195		27		222
Thereafter	595		63		658
Total lease payments (1)	2,024		217		2,241
Less imputed interest	(263)		(24)		(287)
Present value of lease liabilities	$	1,761	$	193	$	1,954

(1)Total lease payments are not reduced by future minimum sublease income of $166 million, which is due under noncancellable subleases.

As of March 31, 2024, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $354 million that are not reflected in the table above. These operating leases will commence in calendar year 2024 with noncancellable lease terms of three to 15 years.

Lessor

The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2024 and 2023, the total lease receivable was $365 million and $342 million, respectively, with a weighted-average remaining lease term of approximately eight years. Interest income from these leases was not material for the years ended March 31, 2024, 2023, and 2022.

Leases

Leases

Lessee

Supplemental balance sheet information related to leases was as follows:

	March 31,
(In millions, except lease term and discount rate)	2024			2023
Operating leases (1)
Operating lease right-of-use assets	$	1,729		$	1,635
Current portion of operating lease liabilities	$	295		$	299
Long-term operating lease liabilities	1,466			1,402
Total operating lease liabilities	$	1,761		$	1,701
Finance leases
Property, plant, and equipment, net	$	165		$	180
Current portion of long-term debt	$	30		$	29
Long-term debt	163			173
Total finance lease liabilities	$	193		$	202
Weighted-average remaining lease term (years)
Operating leases	7.0			6.9
Finance leases	7.0			7.8
Weighted-average discount rate
Operating leases	3.62		%	3.03		%
Finance leases	2.98		%	2.66		%

(1)As discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net,” in fiscal 2022, the Company rationalized its office space, including certain property leases in North America, and in fiscal 2023, management approved further changes to its real estate footprint as part of a broader set of initiatives. Where the Company ceased using office space, it exited the portion of the facility no longer used and repurposed other office locations which resulted in changes to certain lease agreements. These initiatives did not have a material financial impact to the Company’s operating lease ROU assets and liabilities.

The components of lease cost were as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Short-term lease cost	$	14	$	20	$	43
Operating lease cost	418		384		431
Finance lease cost:
Amortization of right-of-use assets	25		24		33
Interest on lease liabilities	5		6		5
Total finance lease cost	30		30		38
Variable lease cost (1)	131		128		127
Sublease income	(35)		(33)		(41)
Total lease cost (2)	$	558	$	529	$	598

(1)    These amounts include payments for maintenance, taxes, payments affected by the consumer price index, and other similar metrics and payments contingent on usage.

(2)    These amounts were primarily recorded in “Selling, distribution, general, and administrative expenses” in the Consolidated Statements of Operations.

Supplemental cash flow information related to leases was as follows:

	Years Ended March 31,
(In millions)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(339)	$	(338)	$	(356)
Operating cash flows from finance leases	(1)		(1)		—
Financing cash flows from finance leases	(47)		(29)		(31)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	391	$	462	$	286
Finance leases	21		17		32

Maturities of lease liabilities as of March 31, 2024 were as follows:

(In millions)	Operating Leases		Finance Leases		Total
Fiscal 2025	$	359	$	33	$	392
Fiscal 2026	341		33		374
Fiscal 2027	293		32		325
Fiscal 2028	241		29		270
Fiscal 2029	195		27		222
Thereafter	595		63		658
Total lease payments (1)	2,024		217		2,241
Less imputed interest	(263)		(24)		(287)
Present value of lease liabilities	$	1,761	$	193	$	1,954

(1)Total lease payments are not reduced by future minimum sublease income of $166 million, which is due under noncancellable subleases.

As of March 31, 2024, the Company entered into additional leases primarily for facilities that have not yet commenced with future lease payments of $354 million that are not reflected in the table above. These operating leases will commence in calendar year 2024 with noncancellable lease terms of three to 15 years.

Lessor

The Company leases certain owned equipment, classified as direct financing or sales-type leases, to physician practices. As of March 31, 2024 and 2023, the total lease receivable was $365 million and $342 million, respectively, with a weighted-average remaining lease term of approximately eight years. Interest income from these leases was not material for the years ended March 31, 2024, 2023, and 2022.