Cardinal Health 2011 Annual Report Download - page 92

current market value at the end of each period through earnings. The gain or loss recorded on these instruments is
su
b
stant
i
a
ll
yo
ff
set
b
yt
h
e remeasurement a
dj
ustment on t
h
e
f
ore
i
gn currency
d
enom
i
nate
d
asset or
li
a
bili
ty. T
he
settlement of the derivative instrument and the remeasurement ad
j
ustment on the forei
g
n currenc
y
denominate
d
a
sset or liability are both recorded in other (income)/expense, net at the end of each period. During fiscal 2010
,
we received cash receipts from a cross currency swap settlement totaling
$
42.5 million. These proceeds are
classified as cash provided b
y
operatin
g
activities in the consolidated statement of cash flows
.
Commo
d
ity Contracts. Dur
i
ng
fi
sca
l
2011, we entere
di
nto swap contracts o
f
certa
i
n commo
di
t
i
es to
miti
g
ate price volatilit
y
for materials we purchase or use in our manufacturin
g
and distribution businesses. These
instruments do not qualify for hedge accounting and as such fair value changes as well as periodic settlements o
f
t
h
ese contracts are recor
d
e
d
w
i
t
hi
not
h
er (
i
ncome)/expense, net
i
n our conso
lid
ate
d
statements o
f
earn
i
ngs
.
T
he following table summarizes the economic (non-designated) derivative instruments outstanding as of
J
une 30
,
2011 an
d
2010:
J
une 30, 2011 June 30, 201
0
(
in millions
)
N
otional
A
moun
t
Matur
i
t
y
Dat
e
N
otional
A
moun
t
M
atur
i
t
y
Dat
e
Fore
ig
n currenc
y
contract
s
.....................
$
391.8 Jul
y
2011 $472.6 Jul
y
2010
C
ommodit
y
contracts
..........................
10.0 Jul
y
2011 – June 2012 0.0
—
Th
e
f
o
ll
ow
i
n
g
ta
bl
e summar
i
zes t
h
e
g
a
i
n/(
l
oss) reco
g
n
i
ze
di
n earn
i
n
g
s
f
or econom
i
c (non-
d
es
ig
nate
d
)
d
erivative instruments for fiscal 2011, 2010 and 2009:
F
iscal Year Ended June 30
,
(
in millions
)
S
tatements of Earnings Line Item
20
11
20
1
0
2009
Fore
i
gn currency contract
s
.
.........
O
ther income/expense, net
$
36.2
$
23.7
$
(8.6
)
C
ommo
di
t
y
contracts
...............
O
t
h
er
i
ncome/expense, net (1.1) 0.0 0.0
Fair Va
l
ue o
f
Financia
l
Instruments
T
he carr
y
in
g
amounts of cash and equivalents, trade receivables, accounts pa
y
able, other short-ter
m
b
orrow
i
ngs, an
d
ot
h
er accrue
dli
a
bili
t
i
es at June 30, 2011 an
d
2010 approx
i
mate t
h
e
i
r
f
a
i
rva
l
ue
d
ue to t
h
e
ir
s
h
ort-term matur
i
t
i
es
.
Cas
hb
a
l
ances are
i
nveste
di
n accor
d
ance w
i
t
h
our
i
nvestment po
li
cy. T
h
ese
i
nvestments are expose
d
to
mar
k
et r
i
s
kf
rom
i
nterest rate
fl
uctuat
i
ons an
d
cre
di
tr
i
s
kf
rom t
h
eun
d
er
lyi
n
gi
ssuers, a
l
t
h
ou
gh
t
hi
s
i
sm
i
t
ig
ate
d
throu
g
h diversification.
T
he followin
g
table summarizes the estimated fair value of our lon
g
-term obli
g
ations and other short-term
borrowin
g
s compared to the respective carr
y
in
g
amounts at June 30, 2011 and 2010
:
June
30,
(
in millions
)
2
0
1
1
2
0
1
0
Long-term o
bli
gat
i
ons an
d
ot
h
er s
h
ort-term
b
orrow
i
ng
s
............................
$
2
,
619.4
$
2
,
310.
4
C
arr
y
in
g
amount
...........................................................
2,502.0 2,129.3
Th
e
f
a
i
rva
l
ue o
f
our
l
ong-term o
bli
gat
i
ons an
d
ot
h
er s
h
ort-term
b
orrow
i
ngs
i
s est
i
mate
db
ase
d
on e
i
t
h
er t
he
q
uoted market
p
rices for the same or similar issues or other in
p
uts derived from available market information
.
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