Cardinal Health 2009 Annual Report Download - page 132

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CHS and CHF were required to repurchase any receivables or interests sold if it was determined that the
representations and warranties with regard to the related receivables were not accurate on the date sold, and with
respect to the committed sales facility program, in the event that the Company failed to comply with the
covenants in the Performance Guaranty or any other customary amortization event occurred. During fiscal 2009,
the Company satisfied all of its outstanding obligations under these agreements. As of June 30, 2009, the
Company did not have any outstanding lease receivable-related arrangements.
Operating Leases
In a prior year, the Company entered into an operating lease agreement with a third party bank for the
construction of various facilities and equipment. On June 26, 2009, the Company repurchased all remaining
buildings, equipment and land for approximately $151.2 million, which were previously under this operating
lease agreement. In addition, as part of the repurchase the Company recorded a $3.8 million impairment charge.
During fiscal 2007, the Company repurchased certain buildings, equipment and land of approximately
$51.2 million which were previously under operating lease agreements. Of this total amount repurchased,
approximately $44.2 million related to the PTS Business, which was divested in the fourth quarter of fiscal 2007.
20. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
The following is selected quarterly financial data for fiscal 2009 and 2008. The sum of the quarters may not
equal year-to-date due to rounding.
(in millions, except per common share amounts)
First
Quarter (1)
Second
Quarter (1)
Third
Quarter (1)
Fourth
Quarter (2)
Fiscal 2009
Revenue ............................................ $24,321.0 $25,074.8 $24,917.7 $25,198.9
Gross margin ........................................ 1,353.5 1,406.8 1,394.9 1,371.2
Selling, general and administrative expenses ............... 876.8 846.6 844.9 870.1
Earnings from continuing operations ..................... 246.2 316.1 313.1 267.5
Earnings/(loss) from discontinued operations ............... 2.9 0.4 (0.2) 5.7
Net earnings ......................................... $ 249.1 $ 316.5 $ 312.9 $ 273.2
Earnings from continuing operations per Common Share:
Basic .............................................. $ 0.69 $ 0.89 $ 0.88 $ 0.75
Diluted ............................................. 0.68 0.88 0.87 0.74
(1) Amounts do not agree to those previously reported as they have been updated to reflect the classification of
Martindale as discontinued operations.
(2) During the fourth quarter of fiscal 2009, the Company recorded certain out of period items which increased
gross margin by $5.2 million (of which $2.5 million pertained to the first three quarters of fiscal 2009 and
$2.7 million pertained to fiscal 2008), increased selling, general and administrative expenses by $13.6
million (of which $4.2 million pertained to the first three quarters of fiscal 2009, $4.8 million pertained to
fiscal 2008 and $4.6 million pertained to periods prior to fiscal 2008), and decreased earnings from
continuing operations and net earnings by $0.9 million (of which $(3.6) million pertained to the first three
quarters of fiscal 2009, $1.4 million pertained to fiscal 2008 and $3.1 million pertained to periods prior to
fiscal 2008). The amounts were not material individually or in the aggregate to the current or prior periods.
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