Goodwill and Intangible Assets, Net

6 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net In the second quarter of 2021, the Company implemented a new segment reporting structure which prompted changes in multiple reporting units across the Company. As a result, goodwill included in the impacted reporting units was reallocated using a relative fair value approach and assessed for impairment before and after the reallocation. The Company recorded a goodwill impairment charge of $69 million in the three and six months ended September 30, 2020 as the estimated fair value of the Europe Retail Pharmacy reporting unit was lower than its reassigned carrying value based on changes in the composition of this reporting unit within the International segment. This impairment charge is included in “Goodwill impairment charges” in the Condensed Consolidated Statements of Operations.

Changes in the carrying amount of goodwill were as follows:


(In millions)	U.S. Pharmaceutical		Prescription Technology Solutions		Medical-Surgical Solutions		International		Total
Balance, March 31, 2021	$	3,963	$	1,542	$	2,453	$	1,535	$	9,493
Goodwill acquired	—		—		—		4		4



Foreign currency translation adjustments, net	(9)		—		—		(15)		(24)
Balance, September 30, 2021	$	3,954	$	1,542	$	2,453	$	1,524	$	9,473

Information regarding intangible assets is as follows:


	September 30, 2021								March 31, 2021
(Dollars in millions)	Weighted- Average Remaining Amortization Period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	12	$	3,241	$	(2,017)	$	1,224		$	3,739	$	(2,269)	$	1,470
Service agreements	10	1,082		(542)		540			1,081		(513)		568
Pharmacy licenses	22	308		(209)		99			497		(244)		253
Trademarks and trade names	12	872		(394)		478			925		(394)		531
Technology	3	136		(116)		20			150		(122)		28
Other	7	255		(231)		24			254		(226)		28
Total		$	5,894	$	(3,509)	$	2,385	(1)	$	6,646	$	(3,768)	$	2,878

(1)Excludes net intangible assets of approximately $279 million related to the E.U. disposal group, as discussed in more detail in Financial Note 2, “Held for Sale.” This amount was included under the caption “Assets held for sale” in the Condensed Consolidated Balance Sheet as of September 30, 2021. Amortization of these assets ceased upon reclassification to Assets held for sale in the second quarter of 2022.

Amortization expense of intangible assets was $84 million and $182 million during the three and six months ended September 30, 2021, respectively, and $106 million and $212 million during the three and six months ended September 30, 2020, respectively. Estimated amortization expense of these assets is as follows: $167 million, $242 million, $230 million, $225 million, and $192 million for the remainder of 2022 and each of the succeeding years through 2026 and $1.3 billion thereafter. All intangible assets were subject to amortization as of September 30, 2021 and March 31, 2021.