Cardinal Health 2009 Annual Report Download - page 102

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Pharmaceutical Manufacturer Antitrust Litigation. The Company recognized income of $0.2 million and
$28.5 million in fiscal 2008 and 2007, respectively, resulting from settlement of class action antitrust claims
alleging certain prescription drug manufacturers took improper actions to delay or prevent generic drug
competition. The Company has not been a named plaintiff in any of these class actions, but has been a member of
the direct purchasers’ class (i.e., those purchasers who purchase directly from these drug manufacturers). The
total recovery of such claims through June 30, 2009 was $151.8 million (net of attorney fees, payments due to
other interested parties and expenses withheld). The Company is unable at this time to estimate future recoveries
it will receive as a result of these class actions.
DEA Matter. The Company recorded a reserve of $34.0 million during fiscal 2008 related to the previously
disclosed DEA matter.
Cardinal Health Federal Securities Litigation. The Company recorded a reserve and made a payment of
$600.0 million during fiscal 2007 related to the previously disclosed Cardinal Health federal securities litigation.
For further information regarding this matter, see the 2007 Form 10-K.
Cardinal Health ERISA Litigation. The Company incurred charges and made a payment of $40.0 million
during fiscal 2007 related to the previously disclosed Cardinal Health ERISA litigation. For further information
regarding this matter, see the 2007 Form 10-K.
Other
Other costs included in special items in fiscal 2007 and 2008 primarily related to legal fees and document
preservation and production costs incurred in connection with a previously disclosed SEC investigation and
related matters. For further information, see the 2008 Form 10-K.
Restructuring Accrual Rollforward
The following table summarizes activity related to liabilities associated with the Company’s restructuring
activities for the fiscal years ended June 30, 2009, 2008 and 2007:
(in millions)
Employee
Related
Costs
Facility
Exit and
Other Costs
Asset
Impairments Total
Balance at June 30, 2006 ................................. $16.5 $ — $— $ 16.5
Additions (1) .......................................... 20.3 17.9 1.9 40.1
Payments and other adjustments ........................... (20.4) (17.9) (0.1) (38.4)
Balance at June 30, 2007 ................................. 16.4 — 1.8 18.2
Additions (1) .......................................... 40.0 24.0 1.7 65.7
Payments and other adjustments ........................... (29.6) (23.6) (3.5) (56.7)
Balance at June 30, 2008 ................................. 26.8 0.4 — 27.2
Additions (1) .......................................... 74.6 89.5 0.2 164.3
Payments and other adjustments ........................... (59.4) (89.7) (0.2) (149.3)
Balance at June 30, 2009 ................................. $42.0 $ 0.2 $— $ 42.2
(1) Amounts represent items that have been expensed as incurred or accrued in accordance with GAAP.
Impairments, (Gain)/Loss on Sale of Assets and Other, net
The Company classifies certain asset impairments related to restructurings in special items. Asset
impairments and gains and losses from the sale of assets not eligible to be classified as special items or
discontinued operations are classified within impairments, (gain)/loss on sale of assets and other, net within the
80