Restructuring

On March 14, 2016, we committed to a restructuring plan to lower our operating costs (the “Cost Alignment Plan”). The Cost Alignment Plan primarily consists of a reduction in workforce, and business process initiatives that will be substantially implemented prior to the end of 2019. Business process initiatives primarily include plans to reduce operating costs of our distribution and pharmacy operations, administrative support functions, and technology platforms, as well as the disposal and abandonment of certain non-core businesses. As a result, we recorded $229 million of pre-tax charges during the fourth quarter of 2016. The restructuring liabilities were $222 million at March 31, 2016.

During the first quarter of 2017, we recorded a pre-tax charge of $9 million as part of the Cost Alignment Plan and made $45 million of cash payments, primarily related to severance.

Under the Cost Alignment Plan, we expect to record total pre-tax charges of approximately $270 million to $290 million, of which $238 million of pre-tax charges have been recorded to date. Estimated remaining charges primarily consist of exit-related costs and accelerated depreciation and amortization, which are largely attributed to our Distribution Solutions segment.

The following table summarizes the activity related to the restructuring liabilities associated with the Cost Alignment Plan for the quarter ended June 30, 2016:



			Quarter Ended June 30, 2016
(In millions)	Balance March 31, 2016		Net restructuring charges recognized			Non-cash charges			Cash Payments			Other			Balance June 30, 2016 ⁽¹⁾
Cost Alignment Plan
Distribution Solutions	$	156	$	10		$	(8	)	$	(28	)	$	(2	)	$	128
Technology Solutions	45		(1		)	—			(8		)	—			36
Corporate	21		—			—			(9		)	—			12
Total	$	222	$	9		$	(8	)	$	(45	)	$	(2	)	$	176


(1)	The reserve balances as of June 30, 2016 include $130 million recorded in other accrued liabilities and $46 million recorded in other noncurrent liabilities in our consolidated balance sheet.