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Restructuring, Impairment, and Related Charges, Net
 6 Months Ended
Sep. 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 $63 million and $234 million for the three months ended September 30, 2025 and 2024, respectively, and $110 million and $244 million for the six months ended September 30, 2025 and 2024, respectively. Of these charges $171 million and $181 million was included in “Restructuring, impairment, and related charges, net” and $63 million was included in “Cost of sales” in the Condensed Consolidated Statement of Operations, for the three and six months ended September 30, 2024, respectively.
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 North American 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 and six months ended September 30, 2025, the Company recorded charges of $52 million and $90 million related to these initiatives, which primarily includes facility exit and other related costs as well as severance and other employee-related costs. For the three and six months ended September 30, 2024, the Company recorded charges of $227 million related to the initiatives, which primarily includes severance and other employee-related costs as well as facility exit and other related costs, including long-lived asset impairments.
Restructuring, impairment, and related charges, net for the three months ended September 30, 2025 and 2024 consisted of the following:
Three Months Ended September 30, 2025
(In millions)
North American Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
Corporate (3)
Total
Severance and employee-related costs, net $4 $— $5 $— $9 
Exit and other-related costs (4)
1 — 14 37 52 
Asset impairments and accelerated depreciation1 — — 1 2 
Total$6 $— $19 $38 $63 
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American 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 activities.
(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 September 30, 2024
(In millions)
North American Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
Corporate Total
Severance and employee-related costs, net $1 $— $144 $4 $149 
Exit and other-related costs (3)
(1)— 3 10 12 
Asset impairments and accelerated depreciation63 1 — 9 73 
Total$63 $1 $147 $23 $234 
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American Pharmaceutical segment, including an inventory impairment of $63 million within "Cost of sales" in the Condensed Consolidated Statement of Operations.
(2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment.
(3)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.
Restructuring, impairment, and related charges, net for the six months ended September 30, 2025 and 2024 consisted of the following:
Six Months Ended September 30, 2025
(In millions)
North American Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
Corporate (3)
Total
Severance and employee-related costs, net $4 $— $10 $(1)$13 
Exit and other-related costs (4)
2 — 26 65 93 
Asset impairments and accelerated depreciation1 — — 3 4 
Total$7 $— $36 $67 $110 
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American. 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 activities.
(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.
Six Months Ended September 30, 2024
(In millions)
North American Pharmaceutical (1)
Prescription Technology Solutions
Medical-Surgical Solutions (2)
Corporate (3)
Total
Severance and employee-related costs, net $1 $— $144 $3 $148 
Exit and other-related costs (3)
(1)3 6 12 20 
Asset impairments and accelerated depreciation65 2 — 9 76 
Total$65 $5 $150 $24 $244 
(1)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s North American Pharmaceutical segment, including an inventory impairment of $63 million within "Cost of sales" in the Condensed Consolidated Statement of Operations.
(2)Includes costs related to operational efficiencies and cost optimization efforts described above to support the Company’s Medical-Surgical Solutions segment.
(3)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 six months ended September 30, 2025:
(In millions)North American PharmaceuticalPrescription Technology SolutionsMedical-Surgical Solutions Corporate Total
Balance, March 31, 2025 (1)
$11 $1 $90 $24 $126 
Restructuring, impairment, and related charges, net7 — 36 67 110 
Non-cash charges(1)— — (3)(4)
Cash payments(3)(1)(87)(71)(162)
Balance, September 30, 2025 (2)
$14 $— $39 $17 $70 
(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 September 30, 2025, the total reserve balance was $70 million, of which $52 million was recorded within “Other accrued liabilities” and $18 million was recorded within “Other non-current liabilities” in the Company’s Condensed Consolidated Balance Sheet.