DUBLIN, Ohio, April 30, 2015 /PRNewswire/ -- Cardinal Health
today reported fiscal year 2015 third-quarter revenue of
$25.4 billion and non-GAAP diluted
earnings per share (EPS) from continuing operations of $1.19. Non-GAAP operating earnings increased 17
percent to $657 million. On a GAAP
basis, operating earnings increased 16 percent to $591 million, and diluted EPS from continuing
operations increased 20 percent to $1.09.
"We're pleased to report strong overall results for the third
quarter while continuing to make the moves to lead and create value
in today's dynamic healthcare environment," said George Barrett, chairman and chief executive
officer of Cardinal Health. "During this past quarter, we announced
our plan to acquire Cordis, significantly enhancing our scale,
product line and capabilities in the cardiovascular area. This move
aligns squarely with our strategy around physician preference
items. Further, our recent acquisition of the specialty
distribution business of Metro Medical expands our scale in
specialty pharma and extends our reach into additional therapeutic
areas."
He continued, "In light of our performance to date, we are
increasingly comfortable with the upper half of the guidance range
of $4.28 to $4.38 for our fiscal 2015
non-GAAP diluted earnings per share from continuing
operations."
Q3 FY15 SUMMARY
|
Q3
FY15
|
Q3
FY14
|
Y/Y
|
Revenue
|
$25.4
billion
|
$21.4
billion
|
18%
|
|
|
|
|
Operating
Earnings
|
$591
million
|
$508
million
|
16%
|
Non-GAAP Operating
Earnings
|
$657
million
|
$561
million
|
17%
|
|
|
|
|
Earnings from
Continuing Operations
|
$365
million
|
$315
million
|
16%
|
Non-GAAP Earnings
from Continuing Operations
|
$396
million
|
$349
million
|
13%
|
|
|
|
|
Diluted EPS from
Continuing Operations
|
$1.09
|
$0.91
|
20%
|
Non-GAAP Diluted EPS
from Continuing Operations
|
$1.19
|
$1.01
|
18%
|
SEGMENT RESULTS
Pharmaceutical segment
Revenue for the Pharmaceutical segment increased 20 percent to
$22.6 billion due to growth from
existing and new customers. Segment profit increased 25 percent to
$567 million, driven by strong
performance under the company's generics program, which includes
the net benefit of Red Oak Sourcing as well as the growth from
existing and new customers.
|
Q3
FY15
|
Q3
FY14
|
Y/Y
|
Revenue
|
$22.6
billion
|
$18.8
billion
|
20%
|
Segment
Profit
|
$567
million
|
$452
million
|
25%
|
Medical segment
Revenue for the Medical segment was up 4 percent to $2.8 billion, primarily due to contributions from
acquisitions. Segment profit decreased 8 percent to $102 million as a result of reduced contribution
from national brand distribution and the continued impact of market
pressures in Canada.
|
Q3
FY15
|
Q3
FY14
|
Y/Y
|
Revenue
|
$2.8
billion
|
$2.7
billion
|
4%
|
Segment
Profit
|
$102
million
|
$111
million
|
(8)%
|
ADDITIONAL THIRD-QUARTER AND RECENT HIGHLIGHTS
- Announced intent to acquire Cordis, a worldwide leader in
cardiovascular medical products
- Acquired the specialty distribution business of Metro Medical
Inc., expanding scale and deepening reach into rheumatology,
oncology and nephrology segments
- Named one of the "Top 50 Companies for Executive Women" by the
National Association for Female Executives
- Ohio Children's Hospitals' Solutions for Patient Safety, a
national program supported by Cardinal Health, announced estimated
savings of more than $60 million and
prevention of serious harm for 2,500 children
CONFERENCE CALL
The company will host a webcast and conference call today at
8:30 a.m. Eastern to discuss the
results. To access the call and corresponding slide presentation,
go to the Investors page at ir.cardinalhealth.com or dial
913.312.0400, using conference ID# 9697371. There is no access code
required for the call.
There is no pre-registration for the call. Participants are
advised to dial into the call at least 10 minutes prior to the
start time.
Presentation slides and an audio replay will be archived on the
Cardinal Health website after the conclusion of the meeting. The
audio replay will also be available until May 29 by dialing 719.457.0820, passcode
9697371.
UPCOMING WEBCASTED INVESTOR EVENTS
- Bank of America Merrill Lynch 2015 Health Care Conference on
May 13 at 8:00
a.m. local time in Las
Vegas
- Goldman Sachs 36th Annual Global Healthcare
Conference on June 10 at 10:00 a.m. local time in Rancho Palos Verdes, Calif.
At these events, Cardinal Health executives will discuss the
company's diverse products and services, company performance and
strategies for continued growth. To access more details and live
webcasts of these events, go to the Investors page at
ir.cardinalhealth.com.
About Cardinal Health
Headquartered in Dublin, Ohio,
Cardinal Health, Inc. (NYSE: CAH) is a $91
billion health care services company that improves the
cost-effectiveness of health care. As the business behind health
care, Cardinal Health helps pharmacies, hospitals, ambulatory
surgery centers, clinical laboratories and physician offices focus
on patient care while reducing costs, enhancing efficiency and
improving quality. Cardinal Health is an essential link in the
health care supply chain, providing pharmaceuticals and medical
products and services to more than 100,000 locations each day and
is also the industry-leading direct-to-home medical supplies
distributor. The company is a leading manufacturer of medical and
surgical products, including gloves, surgical apparel and fluid
management products. In addition, the company operates the nation's
largest network of radiopharmacies that dispense products to aid in
the early diagnosis and treatment of disease. Ranked #22 on the
Fortune 500, Cardinal Health employs 34,000 people worldwide. More
information about the company may be found at
www.cardinalhealth.com and @CardinalHealth on Twitter.
1 See the attached tables for definitions of the
non-GAAP financial measures presented in this news release and
reconciliations of the differences between the non-GAAP financial
measures and their most directly comparable GAAP financial
measures.
Cardinal Health uses its website as a channel of distribution
for material company information. Important information, including
news releases, financial information, earnings and analyst
presentations, and information about upcoming presentations and
events is routinely posted and accessible on the Investors page at
ir.cardinalhealth.com. In addition, our website allows investors
and other interested persons to sign up automatically to receive
e-mail alerts when we post news releases, SEC filings and certain
other information on our website.
Cautions Concerning Forward-Looking Statements
This
news release contains forward-looking statements addressing
expectations, prospects, estimates and other matters that are
dependent upon future events or developments. These statements may
be identified by words such as "expect," "anticipate," "intend,"
"plan," "believe," "will," "should," "could," "would," "project,"
"continue," "likely," and similar expressions, and include
statements reflecting future results or guidance, statements of
outlook and expense accruals. These matters are subject to risks
and uncertainties that could cause actual results to differ
materially from those projected, anticipated or implied. These
risks and uncertainties include competitive pressures in Cardinal
Health's various lines of business; the ability to achieve the
expected benefits from the generic sourcing venture with CVS
Health; the frequency or rate of pharmaceutical price appreciation
or deflation and the timing of generic and branded pharmaceutical
introductions; the ability to successfully complete the acquisition
of Cordis on a timely basis and if completed to achieve the
anticipated results from the Cordis acquisition; the non-renewal or
a default under one or more key customer or supplier arrangements
or changes to the terms of or level of purchases under those
arrangements; the ability to achieve anticipated results from the
AccessClosure acquisition; uncertainties due to government health
care reform including federal health care reform legislation;
changes in the distribution patterns or reimbursement rates for
health care products and services; the effects of any investigation
or action by any regulatory authority; and changes in the cost of
commodities such as oil-based resins, cotton, latex and diesel
fuel. Cardinal Health is subject to additional risks and
uncertainties described in Cardinal Health's Form 10-K, Form 10-Q
and Form 8-K reports and exhibits to those reports. This news
release reflects management's views as of April 30, 2015. Except to the extent required by
applicable law, Cardinal Health undertakes no obligation to update
or revise any forward-looking statement.
Schedule
1
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Third
Quarter
|
|
|
(in millions, except
per common share amounts)
|
2015
|
|
2014
|
|
%
Change
|
Revenue
|
$
|
25,375
|
|
|
$
|
21,427
|
|
|
18
|
%
|
Cost of products
sold
|
23,916
|
|
|
20,130
|
|
|
19
|
%
|
Gross
margin
|
1,459
|
|
|
1,297
|
|
|
12
|
%
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Distribution,
selling, general and administrative expenses
|
803
|
|
|
736
|
|
|
9
|
%
|
Restructuring and
employee severance
|
7
|
|
|
5
|
|
|
N.M.
|
Amortization and
other acquisition-related costs
|
77
|
|
|
56
|
|
|
N.M.
|
Impairments and
(gain)/loss on disposal of assets
|
(1)
|
|
|
—
|
|
|
N.M.
|
Litigation
(recoveries)/charges, net
|
(18)
|
|
|
(8)
|
|
|
N.M.
|
Operating
earnings
|
591
|
|
|
508
|
|
|
16
|
%
|
|
|
|
|
|
|
Other income,
net
|
(2)
|
|
|
(33)
|
|
|
N.M.
|
Interest expense,
net
|
35
|
|
|
34
|
|
|
4
|
%
|
Earnings before
income taxes and discontinued operations
|
558
|
|
|
507
|
|
|
10
|
%
|
|
|
|
|
|
|
Provision for income
taxes
|
193
|
|
|
192
|
|
|
—
|
%
|
Earnings from
continuing operations
|
365
|
|
|
315
|
|
|
16
|
%
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
N.M.
|
Net
earnings
|
$
|
365
|
|
|
$
|
315
|
|
|
16
|
%
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
Continuing
operations
|
$
|
1.10
|
|
|
$
|
0.92
|
|
|
20
|
%
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
N.M.
|
Net basic earnings
per common share
|
$
|
1.10
|
|
|
$
|
0.92
|
|
|
20
|
%
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
Continuing
operations
|
$
|
1.09
|
|
|
$
|
0.91
|
|
|
20
|
%
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
N.M.
|
Net diluted
earnings per common share
|
$
|
1.09
|
|
|
$
|
0.91
|
|
|
20
|
%
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
330
|
|
|
342
|
|
|
|
Diluted
|
334
|
|
|
347
|
|
|
|
Schedule
2
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Earnings (Unaudited)
|
|
|
Year-to-Date
|
|
|
(in millions, except
per common share amounts)
|
2015
|
|
2014
|
|
%
Change
|
Revenue
|
$
|
74,983
|
|
|
$
|
68,190
|
|
|
10
|
%
|
Cost of products
sold
|
70,729
|
|
|
64,285
|
|
|
10
|
%
|
Gross
margin
|
4,254
|
|
|
3,905
|
|
|
9
|
%
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Distribution,
selling, general and administrative expenses
|
2,393
|
|
|
2,233
|
|
|
7
|
%
|
Restructuring and
employee severance
|
33
|
|
|
25
|
|
|
N.M.
|
Amortization and
other acquisition-related costs
|
190
|
|
|
160
|
|
|
N.M.
|
Impairments and
(gain)/loss on disposal of assets
|
(19)
|
|
|
10
|
|
|
N.M.
|
Litigation
(recoveries)/charges, net
|
54
|
|
|
(21)
|
|
|
N.M.
|
Operating
earnings
|
1,603
|
|
|
1,498
|
|
|
7
|
%
|
|
|
|
|
|
|
Other income,
net
|
(6)
|
|
|
(43)
|
|
|
N.M.
|
Interest expense,
net
|
105
|
|
|
100
|
|
|
5
|
%
|
Loss on
extinguishment of debt
|
60
|
|
|
—
|
|
|
N.M.
|
Earnings before
income taxes and discontinued operations
|
1,444
|
|
|
1,441
|
|
|
—
|
%
|
|
|
|
|
|
|
Provision for income
taxes
|
524
|
|
|
512
|
|
|
2
|
%
|
Earnings from
continuing operations
|
920
|
|
|
929
|
|
|
(1)
|
%
|
|
|
|
|
|
|
Earnings from
discontinued operations, net of tax
|
—
|
|
|
3
|
|
|
N.M.
|
Net
earnings
|
$
|
920
|
|
|
$
|
932
|
|
|
(1)
|
%
|
|
|
|
|
|
|
Basic earnings per
common share:
|
|
|
|
|
|
Continuing
operations
|
$
|
2.77
|
|
|
$
|
2.72
|
|
|
2
|
%
|
Discontinued
operations
|
—
|
|
|
0.01
|
|
|
N.M.
|
Net basic earnings
per common share
|
$
|
2.77
|
|
|
$
|
2.73
|
|
|
1
|
%
|
|
|
|
|
|
|
Diluted earnings
per common share:
|
|
|
|
|
|
Continuing
operations
|
$
|
2.74
|
|
|
$
|
2.69
|
|
|
2
|
%
|
Discontinued
operations
|
—
|
|
|
0.01
|
|
|
N.M.
|
Net diluted
earnings per common share
|
$
|
2.74
|
|
|
$
|
2.70
|
|
|
1
|
%
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
332
|
|
|
341
|
|
|
|
Diluted
|
336
|
|
|
346
|
|
|
|
Schedule
3
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
(in
millions)
|
March 31,
2015
|
|
June 30,
2014
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
3,183
|
|
|
$
|
2,865
|
|
Trade receivables,
net
|
6,095
|
|
|
5,380
|
|
Inventories,
net
|
9,163
|
|
|
8,266
|
|
Prepaid expenses and
other
|
1,190
|
|
|
1,428
|
|
Total current
assets
|
19,631
|
|
|
17,939
|
|
|
|
|
|
Property and
equipment, net
|
1,407
|
|
|
1,459
|
|
Goodwill and other
intangibles, net
|
6,033
|
|
|
5,870
|
|
Other
assets
|
817
|
|
|
765
|
|
Total
assets
|
$
|
27,888
|
|
|
$
|
26,033
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
13,851
|
|
|
$
|
12,149
|
|
Current portion of
long-term obligations and other short-term borrowings
|
283
|
|
|
801
|
|
Other accrued
liabilities
|
2,261
|
|
|
2,165
|
|
Total current
liabilities
|
16,395
|
|
|
15,115
|
|
|
|
|
|
Long-term
obligations, less current portion
|
3,720
|
|
|
3,171
|
|
Deferred income taxes
and other liabilities
|
1,404
|
|
|
1,346
|
|
Total shareholders'
equity
|
6,369
|
|
|
6,401
|
|
Total liabilities
and shareholders' equity
|
$
|
27,888
|
|
|
$
|
26,033
|
|
Schedule
4
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
Third
Quarter
|
|
Year-to-Date
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
365
|
|
|
$
|
315
|
|
|
$
|
920
|
|
|
$
|
932
|
|
Earnings from
discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
Earnings from
continuing operations
|
365
|
|
|
315
|
|
|
920
|
|
|
929
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile earnings from continuing operations to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
116
|
|
|
110
|
|
|
336
|
|
|
344
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
Gain on sale of other
investments
|
—
|
|
|
(32)
|
|
|
(5)
|
|
|
(32)
|
|
Impairments and
(gain)/loss on disposal of assets
|
(1)
|
|
|
—
|
|
|
(19)
|
|
|
10
|
|
Share-based
compensation
|
27
|
|
|
24
|
|
|
80
|
|
|
72
|
|
Provision for bad
debts
|
16
|
|
|
2
|
|
|
42
|
|
|
31
|
|
Change in operating
assets and liabilities, net of effects from
acquisitions:
|
|
|
|
|
|
|
|
Decrease/(increase)
in trade receivables
|
(427)
|
|
|
53
|
|
|
(718)
|
|
|
1,473
|
|
Decrease/(increase)
in inventories
|
287
|
|
|
450
|
|
|
(850)
|
|
|
350
|
|
Increase/(decrease)
in accounts payable
|
219
|
|
|
(304)
|
|
|
1,657
|
|
|
(1,392)
|
|
Other accrued
liabilities and operating items, net
|
56
|
|
|
202
|
|
|
169
|
|
|
23
|
|
Net cash provided by
operating activities
|
658
|
|
|
820
|
|
|
1,672
|
|
|
1,808
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Acquisition of
subsidiaries, net of cash acquired
|
(233)
|
|
|
(118)
|
|
|
(319)
|
|
|
(168)
|
|
Additions to property
and equipment
|
(56)
|
|
|
(48)
|
|
|
(139)
|
|
|
(138)
|
|
Purchase of
available-for-sale securities and other investments
|
(27)
|
|
|
(27)
|
|
|
(134)
|
|
|
(27)
|
|
Proceeds from sale of
available-for-sale securities and other investments
|
22
|
|
|
47
|
|
|
129
|
|
|
47
|
|
Proceeds from
maturities of available-for-sale securities
|
8
|
|
|
—
|
|
|
24
|
|
|
—
|
|
Proceeds from
divestitures and disposal of held for sale assets
|
—
|
|
|
—
|
|
|
53
|
|
|
—
|
|
Net cash used in
investing activities
|
(286)
|
|
|
(146)
|
|
|
(386)
|
|
|
(286)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payment of contingent
consideration obligation
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
Net change in
short-term borrowings
|
9
|
|
|
(8)
|
|
|
(9)
|
|
|
65
|
|
Reduction of
long-term obligations
|
(1)
|
|
|
—
|
|
|
(1,221)
|
|
|
(1)
|
|
Proceeds from
long-term obligations, net of issuance costs
|
—
|
|
|
—
|
|
|
1,182
|
|
|
—
|
|
Net proceeds from
issuance of common shares
|
24
|
|
|
80
|
|
|
59
|
|
|
219
|
|
Tax
proceeds/(disbursements) from share-based compensation
|
14
|
|
|
(3)
|
|
|
56
|
|
|
36
|
|
Dividends on common
shares
|
(113)
|
|
|
(104)
|
|
|
(346)
|
|
|
(312)
|
|
Purchase of treasury
shares
|
—
|
|
|
(339)
|
|
|
(686)
|
|
|
(389)
|
|
Net cash used in
financing activities
|
(70)
|
|
|
(374)
|
|
|
(968)
|
|
|
(382)
|
|
|
|
|
|
|
|
|
|
Net increase in cash
and equivalents
|
302
|
|
|
300
|
|
|
318
|
|
|
1,140
|
|
Cash and equivalents
at beginning of period
|
2,881
|
|
|
2,741
|
|
|
2,865
|
|
|
1,901
|
|
Cash and
equivalents at end of period
|
$
|
3,183
|
|
|
$
|
3,041
|
|
|
$
|
3,183
|
|
|
$
|
3,041
|
|
Schedule
5
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Total Company
Business Analysis
|
|
|
|
|
|
Non-GAAP
|
|
Third
Quarter
|
|
Third
Quarter
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
|
|
|
Amount
|
$
|
25,375
|
|
|
$
|
21,427
|
|
|
|
|
|
Growth
rate
|
18
|
%
|
|
(13)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
|
|
|
|
Amount
|
$
|
591
|
|
|
$
|
508
|
|
|
$
|
657
|
|
|
$
|
561
|
|
Growth
rate
|
16
|
%
|
|
7
|
%
|
|
17
|
%
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
Amount
|
$
|
365
|
|
|
$
|
315
|
|
|
$
|
396
|
|
|
$
|
349
|
|
Growth
rate
|
16
|
%
|
|
(9)
|
%
|
|
13
|
%
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
Return on
equity
|
23.4
|
%
|
|
19.2
|
%
|
|
25.4
|
%
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
Effective tax rate
from continuing operations
|
34.6
|
%
|
|
38.0
|
%
|
|
36.5
|
%
|
|
37.7
|
%
|
|
|
|
|
|
|
|
|
Debt to total
capital
|
39
|
%
|
|
38
|
%
|
|
|
|
|
Net debt to total
capital
|
|
|
|
|
11
|
%
|
|
12
|
%
|
|
|
|
Non-GAAP
|
|
Year-to-Date
|
|
Year-to-Date
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenue
|
|
|
|
|
|
|
|
Amount
|
$
|
74,983
|
|
|
$
|
68,190
|
|
|
|
|
|
Growth
rate1
|
10
|
%
|
|
(10)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
|
|
|
|
|
|
Amount
|
$
|
1,603
|
|
|
$
|
1,498
|
|
|
$
|
1,861
|
|
|
$
|
1,672
|
|
Growth
rate
|
7
|
%
|
|
4
|
%
|
|
11
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
|
|
|
|
|
|
Amount
|
$
|
920
|
|
|
$
|
929
|
|
|
$
|
1,136
|
|
|
$
|
1,040
|
|
Growth
rate
|
(1)
|
%
|
|
1
|
%
|
|
9
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
Return on
equity
|
19.5
|
%
|
|
19.6
|
%
|
|
24.1
|
%
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
Effective tax rate
from continuing operations
|
36.3
|
%
|
|
35.5
|
%
|
|
35.6
|
%
|
|
35.6
|
%
|
|
1Revenue
from Walgreens was $3.3 billion for the nine months ended March 31,
2014. Excluding the impact of the Walgreens contract
expiration, the fiscal 2015 year-to-date revenue growth rate would
have been 16 percent.
|
|
Refer to the
GAAP/Non-GAAP reconciliation for definitions and calculations
supporting the Non-GAAP balances.
|
Schedule
6
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Segment Business
Analysis
|
|
|
Third
Quarter
|
|
|
Third
Quarter
|
(in
millions)
|
2015
|
|
2014
|
|
(in
millions)
|
2015
|
|
2014
|
Pharmaceutical
|
|
|
|
|
Medical
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
Amount
|
$
|
22,605
|
|
|
$
|
18,762
|
|
|
Amount
|
$
|
2,774
|
|
|
$
|
2,657
|
|
Growth
rate
|
20
|
%
|
|
(15)
|
%
|
|
Growth
rate
|
4
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
|
|
|
|
Segment
profit
|
|
|
|
Amount
|
$
|
567
|
|
|
$
|
452
|
|
|
Amount
|
$
|
102
|
|
|
$
|
111
|
|
Growth
rate
|
25
|
%
|
|
(9)
|
%
|
|
Growth
rate
|
(8)
|
%
|
|
11
|
%
|
Segment profit
margin
|
2.51
|
%
|
|
2.41
|
%
|
|
Segment profit
margin
|
3.66
|
%
|
|
4.16
|
%
|
|
Refer to definitions
for an explanation of calculations.
|
|
Total consolidated
revenue for the three months ended March 31, 2015 was $25,375
million, which included total segment revenue of $25,379 million
and Corporate revenue of $(4) million. Total consolidated revenue
for the three months ended March 31, 2014 was $21,427 million,
which included total segment revenue of $21,419 million and
Corporate revenue of $8 million. Corporate revenue consists
primarily of elimination of inter-segment revenue and other revenue
not allocated to the segments.
|
|
Total consolidated
operating earnings for the three months ended March 31, 2015 were
$591 million, which included total segment profit of $669 million
and Corporate costs of $(78) million. Total consolidated operating
earnings for the three months ended March 31, 2014 were $508
million, which included total segment profit of $563 million and
Corporate costs of (55) million. Corporate includes, among other
things, restructuring and employee severance, amortization and
other acquisition-related costs, impairments and (gain)/loss on
disposal of assets, litigation (recoveries)/charges, net and
certain investment spending that are not allocated to the
segments.
|
Schedule
7
|
|
Cardinal Health,
Inc. and Subsidiaries
|
Segment Business
Analysis
|
|
|
Year-to-Date
|
|
|
Year-to-Date
|
(in
millions)
|
2015
|
|
2014
|
|
(in
millions)
|
2015
|
|
2014
|
Pharmaceutical
|
|
|
|
|
Medical
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
Amount
|
$
|
66,440
|
|
|
$
|
60,018
|
|
|
Amount
|
$
|
8,540
|
|
|
$
|
8,168
|
|
Growth
rate1
|
11
|
%
|
|
(12)
|
%
|
|
Growth
rate
|
5
|
%
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
Segment
profit
|
|
|
|
|
Segment
profit
|
|
|
|
Amount
|
$
|
1,559
|
|
|
$
|
1,368
|
|
|
Amount
|
$
|
330
|
|
|
$
|
348
|
|
Growth
rate
|
14
|
%
|
|
2
|
%
|
|
Growth
rate
|
(5)
|
%
|
|
30
|
%
|
Segment profit
margin
|
2.35
|
%
|
|
2.28
|
%
|
|
Segment profit
margin
|
3.86
|
%
|
|
4.26
|
%
|
|
1Revenue
from Walgreens was $3.3 billion for the nine months ended March 31,
2014. Excluding the impact of the Walgreens contract
expiration, the fiscal 2015 year-to-date Pharmaceutical segment
revenue growth rate would have been 17 percent.
|
|
Refer to definitions
for an explanation of calculations.
|
|
Total consolidated
revenue for the nine months ended March 31, 2015 was $74,983
million, which included total segment revenue of $74,980 million
and Corporate revenue of $3 million. Total consolidated revenue for
the nine months ended March 31, 2014 was $68,190 million, which
included total segment revenue of $68,186 million and Corporate
revenue of $4 million. Corporate revenue consists primarily of
elimination of inter-segment revenue and other revenue not
allocated to the segments.
|
|
Total consolidated
operating earnings for the nine months ended March 31, 2015 were
$1,603 million, which included total segment profit of $1,889
million and Corporate costs of $(286) million. Total consolidated
operating earnings for the nine months ended March 31, 2014 were
$1,498 million, which included total segment profit of $1,716
million and Corporate costs of $(218) million. Corporate includes,
among other things, restructuring and employee severance,
amortization and other acquisition-related costs, impairments and
(gain)/loss on disposal of assets, litigation (recoveries)/charges,
net and certain investment spending that are not allocated to the
segments.
|
Schedule
8
|
|
Cardinal Health,
Inc. and Subsidiaries
|
GAAP / Non-GAAP
Reconciliation
|
|
|
Third Quarter
2015
|
|
|
Operating
|
Earnings
Before
|
Provision
|
Earnings
|
Earnings
from
|
Diluted
EPS
|
Diluted
EPS
|
|
|
Earnings
|
Income
Taxes
|
for
|
from
|
Continuing
|
from
|
from
Continuing
|
(in millions, except
per common share amounts)
|
Operating
|
Growth
|
and
Discontinued
|
Income
|
Continuing
|
Operations
|
Continuing
|
Operations
|
Earnings
|
Rate
|
Operations
|
Taxes
|
Operations
|
Growth
Rate
|
Operations
|
Growth
Rate
|
GAAP
|
$
|
591
|
|
16
|
%
|
$
|
558
|
|
$
|
193
|
|
$
|
365
|
|
16
|
%
|
$
|
1.09
|
|
20
|
%
|
Restructuring and
employee severance
|
7
|
|
|
7
|
|
3
|
|
4
|
|
|
0.01
|
|
|
Amortization and
other acquisition-related costs
|
77
|
|
|
77
|
|
29
|
|
48
|
|
|
0.15
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
(1)
|
|
|
(1)
|
|
(1)
|
|
—
|
|
|
—
|
|
|
Litigation
(recoveries)/charges, net
|
(18)
|
|
|
(18)
|
|
3
|
|
(21)
|
|
|
(0.07)
|
|
|
Non-GAAP
|
$
|
657
|
|
17
|
%
|
$
|
624
|
|
$
|
228
|
|
$
|
396
|
|
13
|
%
|
$
|
1.19
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2014
|
GAAP
|
$
|
508
|
|
7
|
%
|
$
|
507
|
|
$
|
192
|
|
$
|
315
|
|
(9)
|
%
|
$
|
0.91
|
|
(9)
|
%
|
Restructuring and
employee severance
|
5
|
|
|
5
|
|
2
|
|
3
|
|
|
0.01
|
|
|
Amortization and
other acquisition-related costs
|
56
|
|
|
56
|
|
20
|
|
36
|
|
|
0.10
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
Litigation
(recoveries)/charges, net
|
(8)
|
|
|
(8)
|
|
(3)
|
|
(5)
|
|
|
(0.01)
|
|
|
Non-GAAP
|
$
|
561
|
|
(3)%
|
|
$
|
560
|
|
$
|
211
|
|
$
|
349
|
|
(15)
|
%
|
$
|
1.01
|
|
(16)
|
%
|
|
Year-to-Date
2015
|
|
|
Operating
|
Earnings
Before
|
Provision
|
Earnings
|
Earnings
from
|
Diluted
EPS
|
Diluted
EPS
|
|
|
Earnings
|
Income
Taxes
|
for
|
from
|
Continuing
|
from
|
from
Continuing
|
(in millions, except
per common share amounts)
|
Operating
|
Growth
|
and
Discontinued
|
Income
|
Continuing
|
Operations
|
Continuing
|
Operations
|
Earnings
|
Rate
|
Operations
|
Taxes
|
Operations
|
Growth
Rate
|
Operations
|
Growth
Rate
|
GAAP
|
$
|
1,603
|
|
7
|
%
|
$
|
1,444
|
|
$
|
524
|
|
$
|
920
|
|
(1)
|
%
|
$
|
2.74
|
|
2
|
%
|
Restructuring and
employee severance
|
33
|
|
|
33
|
|
12
|
|
21
|
|
|
0.06
|
|
|
Amortization and
other acquisition-related costs
|
190
|
|
|
190
|
|
69
|
|
121
|
|
|
0.36
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
(19)
|
|
|
(19)
|
|
(10)
|
|
(9)
|
|
|
(0.03)
|
|
|
Litigation
(recoveries)/charges, net
|
54
|
|
|
54
|
|
8
|
|
46
|
|
|
0.14
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
60
|
|
23
|
|
37
|
|
|
0.11
|
|
|
Non-GAAP
|
$
|
1,861
|
|
11
|
%
|
$
|
1,763
|
|
$
|
627
|
|
$
|
1,136
|
|
9
|
%
|
$
|
3.38
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date
2014
|
GAAP
|
$
|
1,498
|
|
4
|
%
|
$
|
1,441
|
|
$
|
512
|
|
$
|
929
|
|
1
|
%
|
$
|
2.69
|
|
—
|
%
|
Restructuring and
employee severance
|
25
|
|
|
25
|
|
9
|
|
16
|
|
|
0.05
|
|
|
Amortization and
other acquisition-related costs
|
160
|
|
|
160
|
|
58
|
|
102
|
|
|
0.30
|
|
|
Impairments and
(gain)/loss on disposal of assets
|
10
|
|
|
10
|
|
4
|
|
6
|
|
|
0.02
|
|
|
Litigation
(recoveries)/charges, net
|
(21)
|
|
|
(21)
|
|
(8)
|
|
(13)
|
|
|
(0.04)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
Non-GAAP
|
$
|
1,672
|
|
6
|
%
|
$
|
1,615
|
|
$
|
575
|
|
$
|
1,040
|
|
3
|
%
|
$
|
3.01
|
|
2
|
%
|
|
The sum of the
components may not equal the total due to rounding.
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
Schedule
9
|
|
Cardinal Health,
Inc. and Subsidiaries
|
GAAP / Non-GAAP
Reconciliation
|
|
|
Third
Quarter
|
|
|
(in
millions)
|
2015
|
|
|
|
2014
|
|
|
GAAP return on
equity
|
23.4
|
%
|
|
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
365
|
|
|
|
|
$
|
315
|
|
|
|
Restructuring and
employee severance, net of tax, in continuing operations
|
4
|
|
|
|
|
3
|
|
|
|
Amortization and
other acquisition-related costs, net of tax, in continuing
operations
|
48
|
|
|
|
|
36
|
|
|
|
Impairments and
(gain)/loss on disposal of assets, net of tax, in continuing
operations
|
—
|
|
|
|
|
—
|
|
|
|
Litigation
(recoveries)/charges, net, net of tax, in continuing
operations
|
(21)
|
|
|
|
|
(5)
|
|
|
|
Adjusted net
earnings
|
$
|
396
|
|
|
|
|
$
|
349
|
|
|
|
Annualized
|
$
|
1,584
|
|
|
|
|
$
|
1,396
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
Second
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
Total shareholders'
equity
|
$
|
6,369
|
|
|
$
|
6,100
|
|
|
$
|
6,532
|
|
|
$
|
6,589
|
|
Divided by average
shareholders' equity
|
$
|
6,235
|
|
|
|
|
$
|
6,560
|
|
|
|
Non-GAAP return on
equity
|
25.4
|
%
|
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
|
Schedule
10
|
|
|
|
Cardinal Health,
Inc. and Subsidiaries
|
|
GAAP / Non-GAAP
Reconciliation
|
|
|
|
Year-to-Date
|
|
|
|
|
|
|
(in
millions)
|
2015
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
GAAP return on
equity
|
19.5
|
%
|
|
|
|
|
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
920
|
|
|
|
|
|
|
|
|
$
|
932
|
|
|
|
|
|
|
|
Restructuring and
employee severance, net of tax, in continuing operations
|
21
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
Amortization and
other acquisition-related costs, net of tax, in continuing
operations
|
121
|
|
|
|
|
|
|
|
|
102
|
|
|
|
|
|
|
|
Impairments and
(gain)/loss on disposal of assets, net of tax, in continuing
operations
|
(9)
|
|
|
|
|
|
|
|
|
6
|
|
|
|
|
|
|
|
Litigation
(recoveries)/charges, net, net of tax, in continuing
operations
|
46
|
|
|
|
|
|
|
|
|
(13)
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt, net of tax, in continuing
operations
|
37
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
Adjusted net
earnings
|
$
|
1,136
|
|
|
|
|
|
|
|
|
$
|
1,043
|
|
|
|
|
|
|
|
Annualized
|
$
|
1,515
|
|
|
|
|
|
|
|
|
$
|
1,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
|
Fourth
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
Total shareholders'
equity
|
$
|
6,369
|
|
|
$
|
6,100
|
|
|
$
|
6,256
|
|
|
$
|
6,401
|
|
|
$
|
6,532
|
|
|
$
|
6,589
|
|
|
$
|
6,297
|
|
|
$
|
5,975
|
|
Divided by average
shareholders' equity
|
$
|
6,281
|
|
|
|
|
|
|
|
|
$
|
6,348
|
|
|
|
|
|
|
|
Non-GAAP return on
equity
|
24.1
|
%
|
|
|
|
|
|
|
|
21.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
Schedule
11
|
|
Cardinal Health,
Inc. and Subsidiaries
|
GAAP / Non-GAAP
Reconciliation
|
|
|
Third
Quarter
|
|
Year-to-Date
|
(in
millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP effective tax
rate from continuing operations
|
34.6
|
%
|
|
38.0
|
%
|
|
36.3
|
%
|
|
35.5
|
%
|
|
|
|
|
|
|
|
|
Non-GAAP effective
tax rate from continuing operations
|
|
|
|
|
|
|
|
Earnings before
income taxes and discontinued operations
|
$
|
558
|
|
|
$
|
507
|
|
|
$
|
1,444
|
|
|
$
|
1,441
|
|
Restructuring and
employee severance
|
7
|
|
|
5
|
|
|
33
|
|
|
25
|
|
Amortization and
other acquisition-related costs
|
77
|
|
|
56
|
|
|
190
|
|
|
160
|
|
Impairments and
(gain)/loss on disposal of assets
|
(1)
|
|
|
—
|
|
|
(19)
|
|
|
10
|
|
Litigation
(recoveries)/charges, net
|
(18)
|
|
|
(8)
|
|
|
54
|
|
|
(21)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
Adjusted earnings
before income taxes and discontinued operations
|
$
|
624
|
|
|
$
|
560
|
|
|
$
|
1,763
|
|
|
$
|
1,615
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$
|
193
|
|
|
$
|
192
|
|
|
$
|
524
|
|
|
$
|
512
|
|
Restructuring and
employee severance tax benefit
|
3
|
|
|
2
|
|
|
12
|
|
|
9
|
|
Amortization and
other acquisition-related costs tax benefit
|
29
|
|
|
20
|
|
|
69
|
|
|
58
|
|
Impairments and
(gain)/loss on disposal of assets tax benefit/(expense)
|
(1)
|
|
|
—
|
|
|
(10)
|
|
|
4
|
|
Litigation
(recoveries)/charges, net tax benefit/(expense)
|
3
|
|
|
(3)
|
|
|
8
|
|
|
(8)
|
|
Loss on
extinguishment of debt tax benefit
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
Adjusted provision
for income taxes
|
$
|
228
|
|
|
$
|
211
|
|
|
$
|
627
|
|
|
$
|
575
|
|
|
|
|
|
|
|
|
|
Non-GAAP effective
tax rate from continuing operations
|
36.5
|
%
|
|
37.7
|
%
|
|
35.6
|
%
|
|
35.6
|
%
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
Debt to total
capital
|
39
|
%
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt to
capital
|
|
|
|
|
|
|
|
Current portion of
long-term obligations and other short-term borrowings
|
$
|
283
|
|
|
$
|
241
|
|
|
|
|
|
Long-term
obligations, less current portion
|
3,720
|
|
|
3,679
|
|
|
|
|
|
Debt
|
$
|
4,003
|
|
|
$
|
3,920
|
|
|
|
|
|
Cash and
equivalents
|
(3,183)
|
|
|
(3,041)
|
|
|
|
|
|
Net debt
|
$
|
820
|
|
|
$
|
879
|
|
|
|
|
|
Total shareholders'
equity
|
6,369
|
|
|
6,532
|
|
|
|
|
|
Capital
|
$
|
7,189
|
|
|
$
|
7,411
|
|
|
|
|
|
Net debt to
capital
|
11
|
%
|
|
12
|
%
|
|
|
|
|
|
The sum of the
components may not equal the total due to rounding.
|
We apply varying tax
rates depending on the item's nature and tax jurisdiction where it
is incurred.
|
Forward-Looking Non-GAAP Financial Measures
We present non-GAAP earnings from continuing operations and
non-GAAP effective tax rate from continuing operations (and
presentations derived from these financial measures, including per
share calculations) on a forward-looking basis. The most directly
comparable forward-looking GAAP measures are earnings from
continuing operations and effective tax rate from continuing
operations. We are unable to provide a quantitative reconciliation
of these forward-looking non-GAAP measures to the most directly
comparable forward-looking GAAP measures because we cannot reliably
forecast restructuring and employee severance, amortization and
other acquisition-related costs, impairments and (gain)/loss on
disposal of assets, litigation (recoveries)/charges, net, LIFO
charges/(credits) and loss on extinguishment of debt, which are
difficult to predict and estimate and are primarily dependent on
future events. Please note that the unavailable reconciling items
could significantly impact our future financial results.
Cardinal Health, Inc. and Subsidiaries
Use of Non-GAAP Measures
This earnings release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles ("GAAP"). In general, the measures exclude items
and charges that (i) management does not believe reflect Cardinal
Health, Inc.'s (the "Company") core business and relate more to
strategic, multi-year corporate activities; or (ii) relate to
activities or actions that may have occurred over multiple or in
prior periods without predictable trends. Management uses these
non-GAAP financial measures internally to evaluate the Company's
performance, evaluate the balance sheet, engage in financial and
operational planning and determine incentive compensation.
In fiscal 2015, the Company began excluding last-in, first-out
("LIFO") inventory charges/(credits)5 from its non-GAAP
earnings, for consistency with the presentation by some of its
peers. The Company did not record any LIFO charges or credits in
the first, second or third quarters of fiscal 2015 or 2014,
respectively. In the second quarter of fiscal 2015, the
Company excluded the loss on extinguishment of debt6
related to the early redemption of debt that occurred in
December 2014 from its non-GAAP
earnings.
Management provides these non-GAAP financial measures to
investors as supplemental metrics to assist readers in assessing
the effects of items and events on its financial and operating
results and in comparing the Company's performance to that of its
competitors. However, the non-GAAP financial measures used by
the Company may be calculated differently from, and therefore may
not be comparable to, similarly titled measures used by other
companies.
The non-GAAP financial measures disclosed by the Company should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and the financial
results calculated in accordance with GAAP and reconciliations to
those financial statements set forth above should be carefully
evaluated.
Definitions
Debt: long-term obligations plus short-term
borrowings.
Debt to Total Capital: debt divided by (debt plus total
shareholders' equity).
Net Debt: a Non-GAAP measure defined as debt minus (cash
and equivalents).
Net Debt to Capital: a Non-GAAP measure defined as net
debt divided by (net debt plus total shareholders' equity).
Non-GAAP Diluted EPS from Continuing Operations: non-GAAP
earnings from continuing operations divided by diluted
weighted-average shares outstanding.
Non-GAAP Earnings from Continuing Operations: earnings
from continuing operations excluding (1) restructuring and employee
severance1, (2) amortization and other
acquisition-related costs2, (3) impairments and
(gain)/loss on disposal of assets3, (4) litigation
(recoveries)/charges, net4, (5) LIFO charges/(credits)
and (6) loss on extinguishment of debt, each net of tax.
Non-GAAP Effective Tax Rate from Continuing Operations:
(provision for income taxes adjusted for (1) restructuring and
employee severance, (2) amortization and other acquisition-related
costs, (3) impairments and (gain)/loss on disposal of assets, (4)
litigation (recoveries)/charges, net, (5) LIFO charges/(credits)
and (6) loss on extinguishment of debt) divided by (earnings before
income taxes and discontinued operations adjusted for the same six
items).
Non-GAAP Operating Earnings: operating earnings excluding
(1) restructuring and employee severance, (2) amortization and
other acquisition-related costs, (3) impairments and (gain)/loss on
disposal of assets, (4) litigation (recoveries)/charges, net and
(5) LIFO charges/(credits).
Non-GAAP Return on Equity: (annualized current period net
earnings excluding (1) restructuring and employee severance, (2)
amortization and other acquisition-related costs, (3) impairments
and (gain)/loss on disposal of assets, (4) litigation
(recoveries)/charges, net, (5) LIFO charges/(credits) and (6) loss
on extinguishment of debt, each net of tax) divided by average
shareholders' equity.
Return on Equity: annualized current period net earnings
divided by average shareholders' equity.
Segment Profit: segment revenue minus (segment cost of
products sold and segment distribution, selling, general and
administrative expenses).
Segment Profit Margin: segment profit divided by segment
revenue.
1
|
Programs by which the
Company fundamentally changes its operations such as closing and
consolidating facilities, moving
manufacturing of a product to another location, production or
business process sourcing, employee severance (including
rationalizing headcount or other significant changes in personnel)
and realigning operations (including realignment of the management
structure of a business unit in response to changing market
conditions).
|
|
|
2
|
Costs that consist
primarily of amortization of acquisition-related intangible assets,
transaction costs, integration
costs and changes in the fair value of contingent consideration
obligations.
|
|
|
3
|
Asset impairments and
(gains)/losses from the disposal of assets not eligible to be
classified as discontinued
operations are classified within impairments and (gain)/loss on
disposal of assets within the condensed consolidated statements of
earnings.
|
|
|
4
|
Loss contingencies
related to litigation and regulatory matters and income from
favorable resolution of legal
matters.
|
|
|
5
|
The inventories of
the Company's core pharmaceutical distribution facilities in the
Pharmaceutical segment are valued
at the lower of cost, using the LIFO method, or market. These
charges or credits are included in cost of products sold, and
represent changes in the Company's LIFO inventory
reserve.
|
|
|
6
|
Charges related to
the make-whole premium on the redemption of notes.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cardinal-health-reports-fiscal-2015-third-quarter-results-300075015.html
SOURCE Cardinal Health