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Restructuring, Impairment, and Related Charges, Net
 3 Months Ended
Jun. 30, 2025
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 $47 million and $10 million for the three months ended June 30, 2025 and 2024, respectively. These charges were included in “Restructuring, impairment, and related charges, net” in the Condensed Consolidated Statement of Operations.
Restructuring Initiatives
During the second quarter of fiscal 2025, the Company approved enterprise-wide initiatives to modernize and accelerate the technology service operating model which were intended to improve business continuity, compliance, operating efficiency and advance investments to streamline the organization. These initiatives include cost reduction efforts and support other rationalization efforts within Corporate, and the Medical-Surgical Solutions and U.S. Pharmaceutical segments to help realize long-term sustainable growth. The Company anticipates total charges related to these initiatives of $650 million to $700 million, consisting primarily of employee severance and other employee-related costs as well as facility, exit, and other related costs, including long-lived asset impairments. These programs are anticipated to be substantially complete in fiscal 2028. For the three months ended June 30, 2025, the Company recorded charges of $38 million related to these initiatives, which primarily includes facility exit and other related costs as well as severance and other employee-related costs.
Restructuring, impairment, and related charges, net for the three months ended June 30, 2025 and 2024 consisted of the following:
Three Months Ended June 30, 2025
(In millions)
U.S. Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
International
Corporate (3)
Total
Severance and employee-related costs, net $— $— $5 $— $(1)$4 
Exit and other-related costs (4)
1 — 12 — 28 41 
Asset impairments and accelerated depreciation— — — — 2 2 
Total$1 $— $17 $— $29 $47 
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s U.S. Pharmaceutical segment.
(2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment.
(3)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Corporate segment.
(4)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.
Three Months Ended June 30, 2024
(In millions)U.S. PharmaceuticalPrescription Technology Solutions Medical-Surgical SolutionsInternational
Corporate
Total
Severance and employee-related costs, net $— $— $— $— $(1)$(1)
Exit and other-related costs (1)
— 3 3 — 2 8 
Asset impairments and accelerated depreciation1 1 — 1 — 3 
Total$1 $4 $3 $1 $1 $10 
(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.
The following table summarizes the activity related to the liabilities associated with the Company’s restructuring initiatives for the three months ended June 30, 2025:
(In millions)U.S. PharmaceuticalPrescription Technology SolutionsMedical-Surgical SolutionsInternationalCorporateTotal
Balance, March 31, 2025 (1)
$10 $1 $90 $1 $24 $126 
Restructuring, impairment, and related charges, net1 — 17 — 29 47 
Non-cash charges— — — — (2)(2)
Cash payments(2)— (50)— (31)(83)
Balance, June 30, 2025 (2)
$9 $1 $57 $1 $20 $88 
(1)As of March 31, 2025, the total reserve balance was $126 million, of which $103 million was recorded within “Other accrued liabilities” and $23 million was recorded within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet.
(2)As of June 30, 2025, the total reserve balance was $88 million, of which $68 million was recorded within “Other accrued liabilities” and $20 million was recorded within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet.