Impairment and Sale of an Equity Investment

12 Months Ended

Mar. 31, 2014

Equity Method Investment and Joint Venture Disclosure [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Impairment and Sale of an Equity Investment

During 2013, we committed to a plan to sell our 49% equity interest in Nadro, S.A. de C.V. (“Nadro”) and in the fourth quarter of 2013 recorded a pre-tax impairment charge of $191 million reducing the investment’s carrying value to its estimated fair value. The charge reflected deterioration in Nadro’s market position, projected lower revenue growth rates and operating margins and continued business challenges in the wholesale pharmaceutical distribution business in Mexico. Cumulative foreign currency translation losses of $69 million were included in the assessment of the investment’s carrying value for purposes of calculating the impairment charge. Cumulative foreign currency translation losses (net of tax), were included in Accumulated Other Comprehensive Income on our consolidated balance sheet at March 31, 2013. The impairment charge was recorded in impairment of an equity investment in the consolidated statements of operations within our Distribution Solutions segment. Refer to Financial Note 19, “Fair Value Measurements,” for more information on this fair value measurement.

In September 2013, we completed the sale of our 49% equity interest in Nadro which resulted in no material gain or loss. Under the terms of the agreement, we received $41 million in total cash consideration. There was no material gain or loss on the disposition based on the adjusted net realizable value of the investment at the time of the sale. Prior to the sale, our investment in Nadro was accounted for under the equity method of accounting within our Distribution Solutions segment.