Cardinal Health 2009 Annual Report Download - page 62

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The following table summarizes segment revenue for the fiscal years ended June 30, 2009, 2008 and 2007
(in millions):
Change (1) Segment Revenue
2009 2008 2009 2008 2007
Healthcare Supply Chain Services .................... 10% 4%$ 95,717.9 $87,110.0 $83,850.7
Clinical and Medical Products ....................... — % 30% 4,588.5 4,605.5 3,541.5
All Other ........................................ (14)% 3% 1,018.3 1,190.4 1,151.1
Total segment revenue ............................. 9% 5%$101,324.7 $92,905.9 $88,543.3
Corporate (2) .................................... N.M. N.M. (1,812.3) (1,930.4) (1,788.3)
Consolidated revenue .............................. 9% 5%$ 99,512.4 $90,975.5 $86,755.0
(1) Change is calculated as the percentage increase or (decrease) for a given year compared to the immediately
preceding year.
(2) Corporate revenue primarily consists of the elimination of inter-segment revenue.
The following table summarizes segment profit for the fiscal years ended June 30, 2009, 2008 and 2007 (in
millions):
Change (1) Segment Profit
2009 2008 2009 2008 2007
Healthcare Supply Chain Services (2) .................... — % (12)% $1,338.8 $1,333.5 $1,521.0
Clinical and Medical Products (2) ....................... (9)% 37% 669.6 734.9 535.1
All Other (2) ........................................ (5)% (6)% 95.3 100.5 106.8
Total segment profit .................................. (3)% — % $2,103.7 $2,168.9 $2,162.9
Corporate (2) (3) ..................................... N.M. N.M. (218.0) (77.4) (816.1)
Consolidated operating earnings ........................ (10)% 55% $1,885.7 $2,091.5 $1,346.8
(1) Change is calculated as the percentage increase or (decrease) for a given year compared to the immediately
preceding year.
(2) The Company has encouraged its segments to identify investment projects which will provide future returns.
These projects typically require incremental strategic investments in the form of additional capital or
operating expenses. Investment spending previously held at corporate has been allocated to the segments
under the new segment structure. Prior period information has been reclassified to conform to this new
presentation.
(3) For fiscal 2009, 2008 and 2007, Corporate includes, among other things, special items and impairments,
(gain)/loss on sale of assets and other, net which are not allocated to the segments.
Healthcare Supply Chain Services Segment Performance
Fiscal Year Ended June 30, 2009 Compared to Fiscal Year Ended June 30, 2008
Healthcare Supply Chain Services revenue growth of $8.6 billion or 10% during fiscal 2009 was primarily
due to additional volume from existing customers and pharmaceutical price appreciation (the combined impact of
these two factors was $8.0 billion). The pharmaceutical price appreciation index was 8.8% for the trailing twelve
months ended June 30, 2009. Revenue was also positively impacted by the addition of new customers ($954
million). Revenue growth was negatively impacted by the loss of customers ($969 million). Lost customer
revenue from the DEA license suspensions and the Company’s controlled substance anti-diversion efforts also
adversely affected revenue from non-bulk customers. The Company resumed controlled substance distributions
from distribution centers that were impacted by the license suspensions during the second quarter of fiscal 2009.
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