XML 109 R12.htm IDEA: XBRL DOCUMENT v2.4.1.9
Discontinued Operations
 12 Months Ended
Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
During the fourth quarter of 2015, we committed to a plan to sell our Brazilian pharmaceutical distribution business and a small business from our Distribution Solutions segment, as well as a small business from our Technology Solutions segment. We acquired the Brazilian distribution business through our February 2014 acquisition of Celesio.
In 2014, we committed to a plan to sell our International Technology and our Hospital Automation businesses from our Technology Solutions segment and certain businesses from our Distribution Solutions segment. During the first quarter of 2015, we decided to retain the workforce business within our International Technology business. This business consists of workforce management solutions for the National Health Service in the United Kingdom, which we will transition to another service provider during the first quarter of 2016. As a result, the workforce business, which had been designated as a discontinued operation since the first quarter of 2014, was reclassified to continuing operations in the first quarter of 2015. During the first quarter of 2015, we also recorded a non-cash pre-tax charge of $34 million ($27 million after-tax) primarily relating to depreciation and amortization expense for the period in 2014 while the business was classified as held for sale. The non-cash charge was recorded in our consolidated statement of operations primarily in cost of sales.
As required, we classified the results of operations and cash flows of these businesses as discontinued operations for all applicable periods presented in our consolidated financial statements. Depreciation and amortization expense is not recognized from the date the businesses are classified as held for sale.
A summary of results of discontinued operations is as follows:
 
Years Ended March 31,
(In millions)
2015
 
2014
 
2013
Revenues
$
2,196

 
$
637

 
$
259

 
 
 
 
 
 
Loss from discontinued operations
$
(321
)
 
$
(177
)
 
$
(32
)
Loss on sale
(6
)
 
(5
)
 
—

Loss from discontinued operations before income tax
(327
)
 
(182
)
 
(32
)
Income tax benefit
28

 
26

 
7

Loss from discontinued operations, net of tax
$
(299
)
 
$
(156
)
 
$
(25
)

Fiscal 2015
During the second quarter of 2015, we completed the sale of a software business within our International Technology business and recorded a pre-tax and after-tax loss of $6 million.
During the fourth quarter of 2015, we recorded $241 million pre-tax ($235 million after-tax) non-cash impairment charges to reduce the carrying value of our Brazilian distribution business to its estimated fair value, less cost to sell. The impairment charge reduced the carrying value of property, plant and equipment, other long-lived assets and goodwill by $31 million. The remaining difference between the business’ fair value and carrying value of $210 million was recorded as a liability and was included in other accrued liabilities in our consolidated balance sheet. Cumulative foreign currency translation losses of $17 million were included in the assessment of this business’ carrying value for purposes of calculating the impairment charge. Cumulative foreign currency translation losses (net of tax) are included in Accumulated Other Comprehensive Income on our consolidated balance sheet at March 31, 2015. The ultimate loss from the sale may be higher or lower than our current assessment of the business’ fair value.
Fiscal 2014
During the third quarter of 2014, we sold our Hospital Automation business for net cash proceeds of $55 million and recorded a pre-tax and after-tax loss of $5 million and $7 million.
During the third quarter of 2014, we recorded an $80 million non-cash pre-tax and after-tax impairment charge to reduce the carrying value of our International Technology business to its estimated fair value less costs to sell. The impairment charge was primarily attributed to goodwill and other long-lived assets and as a result, there was no tax benefit associated with this charge.
The assets and liabilities of our discontinued operations were classified as held-for-sale effective in 2014. All applicable assets of the businesses to be sold are included under the caption “Prepaid expenses and other” and all applicable liabilities under the caption “Other accrued liabilities” within our consolidated balance sheet at March 31, 2015 and 2014. The carrying values of the assets and liabilities classified as held-for-sale were $660 million and $663 million at March 31, 2015.