XML 26 R14.htm IDEA: XBRL DOCUMENT v3.23.3
Goodwill and Intangible Assets, Net
 6 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill
The Company evaluates goodwill for impairment on an annual basis in the first fiscal quarter, and more frequently if indicators for potential impairment exist. Goodwill impairment testing is conducted at the reporting unit level, which is generally defined as an operating segment or one level below an operating segment (also known as a component), for which discrete financial information is available and segment management regularly reviews the operating results of that reporting unit. The annual impairment testing performed in fiscal 2024 and fiscal 2023 did not indicate any impairment of goodwill.
Changes in the carrying amount of goodwill were as follows:
(In millions)
U.S. Pharmaceutical (1)
Prescription Technology SolutionsMedical-Surgical Solutions
International
Total
Balance, March 31, 2023$4,050 $2,005 $2,453 $1,439 $9,947 
Foreign currency translation adjustments, net— — — (6)(6)
Other adjustments (2)
(7)— — — (7)
Balance, September 30, 2023$4,043 $2,005 $2,453 $1,433 $9,934 
(1)The goodwill balance allocated to the U.S. Pharmaceutical segment related to McKesson Europe’s Celesio AG acquisition no longer reflects foreign currency translation adjustments as its functional currency was changed from Euros to U.S. dollars with the completion of the sale of the E.U. disposal group.
(2)Includes purchase price allocation adjustments related to the formation of SCRI Oncology, which is discussed in Financial Note 2, “Business Acquisitions and Divestitures.”
Intangible Assets
Information regarding intangible assets was as follows:
 September 30, 2023March 31, 2023
(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 relationships11$2,970 $(1,823)$1,147 $2,971 $(1,765)$1,206 
Service agreements101,135 (654)481 1,137 (623)514 
Trademarks and trade names12831 (453)378 833 (430)403 
Technology10264 (137)127 264 (129)135 
Other6184 (175)9 193 (174)19 
Total $5,384 $(3,242)$2,142 $5,398 $(3,121)$2,277 
All intangible assets were subject to amortization as of September 30, 2023 and March 31, 2023. Amortization expense of intangible assets was $62 million and $57 million for the three months ended September 30, 2023 and 2022, respectively, and $124 million and $113 million for the six months ended September 30, 2023 and 2022, respectively. Estimated amortization expense of the assets listed in the table above is as follows: $122 million, $239 million, $207 million, $201 million, and $196 million for the remainder of fiscal 2024 and each of the succeeding years through fiscal 2028, respectively, and $1.2 billion thereafter.