XML 46 R34.htm IDEA: XBRL DOCUMENT v3.24.3
Segments of Business (Tables)
 6 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of Financial Information Relating to Reportable Operating Segments and Reconciliations to the Condensed Consolidated Totals
Financial information relating to the Company’s reportable operating segments and reconciliations to the condensed consolidated totals was as follows:
 Three Months Ended September 30, Six Months Ended September 30,
(In millions)2024202320242023
Segment revenues (1)
U.S. Pharmaceutical$85,726 $69,766 $157,441 $136,926 
Prescription Technology Solutions1,265 1,140 2,506 2,384 
Medical-Surgical Solutions2,948 2,834 5,584 5,445 
International3,709 3,475 7,400 6,943 
Corporate3 — 3 — 
Total revenues$93,651 $77,215 $172,934 $151,698 
Segment operating profit (loss) (2)
U.S. Pharmaceutical (3)
$1,075 $593 $1,856 $1,420 
Prescription Technology Solutions (4)
205 238 408 469 
Medical-Surgical Solutions (5)
89 244 277 471 
International (6)
(508)66 (418)123 
Subtotal861 1,141 2,123 2,483 
Corporate expenses, net (7)
(249)(164)(352)(368)
Interest expense(78)(61)(153)(108)
Income before income taxes$534 $916 $1,618 $2,007 
(1)Revenues from services on a disaggregated basis represent approximately 1% of the U.S. Pharmaceutical segment’s total revenues, less than 40% of the RxTS segment’s total revenues, less than 1% of the Medical-Surgical Solutions segment’s total revenues, and less than 1% of the International segment’s total revenues. The International segment reflects foreign revenues. Revenues for the remaining three reportable segments are derived in the U.S. Corporate reflects revenues from services derived in the U.S. related to certain technology operations and were not material for the three and six months ended September 30, 2024.
(2)Segment operating profit (loss) includes gross profit, net of total operating expenses, as well as other income, net, for the Company’s reportable segments.
(3)The Company’s U.S. Pharmaceutical segment’s operating profit includes the following:
•a credit of $203 million for the three and six months ended September 30, 2024 due to the Company’s reassessment of its initial fiscal 2024 estimates of the previously reserved $725 million prepetition balance owed by the Company’s customer, Rite Aid Corporation (including certain of its subsidiaries, “Rite Aid”). Rite Aid filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in October 2023. The Company recognized a provision for bad debts of $210 million for the three and six months ended September 30, 2023, which represented the uncollected trade accounts receivable balance as of September 30, 2023 due from Rite Aid. The amounts described above were recorded within “Selling, distribution, general, and administrative expenses” in the Company’s Condensed Consolidated Statements of Operations. Rite Aid's restructuring plan was approved by the court and the company successfully emerged from bankruptcy in August, 2024;
•cash receipts for the Company’s share of antitrust legal settlements of $63 million and $79 million for the three months ended September 30, 2024 and 2023, respectively, and $153 million and $197 million for the six months ended September 30, 2024 and 2023, respectively. These gains were recorded within “Cost of sales” in the Company’s Condensed Consolidated Statements of Operations;
•a credit of $2 million and a charge of $55 million related to the last-in, first-out method of accounting for inventories for the three months ended September 30, 2024 and 2023, respectively, and a credit of $4 million and a charge of $87 million for the six months ended September 30, 2024 and 2023, respectively. These amounts were recorded within “Cost of sales” in the Company’s Condensed Consolidated Statements of Operations;
•restructuring charges of $64 million for the three and six months ended September 30, 2024 for restructuring initiatives that commenced in the second quarter of fiscal 2025 as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net;”
•a charge of $57 million for the six months ended September 30, 2024 related to the estimated liability for opioid-related claims, as discussed in Financial Note 10, “Commitments and Contingent Liabilities;" and
•a loss of $43 million for the six months ended September 30, 2024 related to one of the Company’s equity method investments, which was recorded within “Other income, net” in the Company’s Condensed Consolidated Statement of Operations.
(4)The Company’s RxTS segment’s operating profit for the three and six months ended September 30, 2023 includes gains of $48 million and $76 million, respectively, resulting from fair value adjustments of the Company’s contingent consideration liability related to the acquisition of Rx Savings Solutions, LLC completed in November 2022.
(5)The Company’s Medical-Surgical Solutions segment’s operating profit for the three and six months ended September 30, 2024 includes restructuring charges of $144 million for restructuring initiatives that commenced in the second quarter of fiscal 2025 as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.”
(6)The Company’s International segment’s operating profit (loss) for the three and six months ended September 30, 2024 includes a charge of $593 million to remeasure the assets and liabilities of the Canadian retail disposal group to fair value less costs to sell, as discussed in Financial Note 2, “Held for Sale.”
(7)Corporate expenses, net includes the following:
•a charge of $50 million for the three and six months ended September 30, 2024 related to the effect of accumulated other comprehensive loss components from the Canadian retail disposal group, as discussed in Financial Note 2, “Held for Sale;”
•a net gain of $95 million for the six months ended September 30, 2024 related to the Company’s investments in equity securities of certain U.S. growth stage companies in the healthcare industry, as discussed in Financial Note 9, “Fair Value Measurements;”
•a net charge of $51 million for the six months ended September 30, 2024 related to the estimated liability for opioid-related claims, as discussed in Financial Note 10, “Commitments and Contingent Liabilities;" and
•restructuring charges of $46 million for the six months ended September 30, 2023 for restructuring initiatives as discussed in Financial Note 3, “Restructuring, Impairment, and Related Charges, Net.”