Cardinal Health 2009 Annual Report Download - page 130

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Restricted Shares and Restricted Share Units
The fair value of restricted shares and restricted share units is determined by the number of shares granted
and the grant date market price of the Company’s Common Shares. The compensation expense recognized for all
equity-based awards is net of estimated forfeitures and is recognized using the straight-line method over the
applicable service period. In accordance with SAB No. 107, the Company classifies equity-based compensation
within SG&A expense to correspond with the same line item as the majority of the cash compensation paid to
employees.
The following tables summarize all activity related to restricted shares and restricted share units during the
fiscal years ended June 30, 2009 and 2008:
(in millions, except per share amounts) Shares
Weighted
Average Grant
Date Fair Value
Per Share
Nonvested at June 30, 2007 ................................................. 1.9 $62.07
Granted ................................................................. 1.4 $66.57
Vested .................................................................. (0.7) $61.13
Forfeited ................................................................ (0.2) $65.58
Nonvested at June 30, 2008 ................................................. 2.4 $65.74
Granted ................................................................. 2.3 $52.58
Vested .................................................................. (1.2) $64.38
Forfeited ................................................................ (0.4) $60.37
Nonvested at June 30, 2009 ................................................. 3.1 $57.10
Fiscal Year Ended June 30,
(in millions, except years) 2009 2008 2007
Total compensation cost, net of estimated forfeitures, related to nonvested
restricted share and share unit awards not yet recognized, pre-tax ........... $100.6 $80.8 $58.7
Weighted-average period in years over which restricted share and share unit cost
is expected to be recognized ......................................... 1.8 1.9 1.9
Employee Stock Purchase Plan
The Company has employee stock purchase plans under which the sale of 12.0 million Common Shares has been
authorized. Generally, employees who have been employed by the Company for at least 30 days may be eligible
to contribute from 1% to 15% of eligible compensation. The purchase price is determined by the lower of 85% of
the closing market price on the first day of the offering period or 85% of the closing market price on the last day
of the offering period. During any given calendar year, there are two offering periods: January 1 – June 30; and
July 1 – December 31. At June 30, 2009, subscriptions of 0.7 million shares were outstanding. Through June 30,
2009, 7.4 million shares had been issued to employees under the plans. The Company has decided to indefinitely
suspend the employee stock purchase plans.
Employee Savings Plan
Substantially all of the Company’s domestic non-union employees are eligible to be enrolled in Company-
sponsored contributory profit sharing and retirement savings plans, which include features under Section 401(k)
of the Code, and provide for Company matching and profit sharing contributions. The Company’s contributions
to the plans are determined by the Board of Directors subject to certain minimum requirements as specified in the
plans. The total expense for employee retirement benefit plans was $118.3 million, $106.2 million and
$107.8 million for fiscal 2009, 2008 and 2007, respectively.
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