Cardinal Health 2011 Annual Report Download - page 93

T
he following is a summary of the fair value gain/(loss) of our derivative instruments, based upon the
est
i
mate
d
amount t
h
at we wou
ld
rece
i
ve (or pay) to term
i
nate t
h
e contracts as o
f
June 30, 2011 an
d
2010. T
he
f
air values are based on
q
uoted market
p
rices for the same or similar instruments.
June 30, 201
1
J
une 30, 201
0
(
in millions
)
N
ot
i
onal
A
m
ou
n
t
Fa
i
r Valu
e
Gain/
(
Loss
)
N
ot
i
onal
A
m
ou
nt
F
a
i
r Value
G
ain/
(
Loss
)
I
nterest rate swaps
.....................................
$
1
,
256.0
$
32.4
$
1
,
006.0
$
23.
4
Forei
g
n currenc
y
contract
s
..............................
55
4.8 (2.1) 618.3 2.
8
C
ommodity contracts ..................................
.
32.4 1.8 24.2 0.0
S
ee Note 13
f
or
f
urt
h
er
i
n
f
ormat
i
on regar
di
ng
f
a
i
rva
l
ue measurements.
1
3. FAIR VAL
U
E MEA
SU
REMENT
S
Fair value is defined as the price that would be received upon sellin
g
an asset or the price paid to transfer
a
li
a
bili
ty on t
h
e measurement
d
ate. It
f
ocuses on t
h
eex
i
tpr
i
ce
i
nt
h
epr
i
nc
i
pa
l
or most a
d
vantageous mar
k
et
f
or t
h
e
asset or
li
a
bili
t
yi
nanor
d
er
ly
transact
i
on
b
etween w
illi
n
g
mar
k
et part
i
c
i
pants. A t
h
ree-t
i
er
f
a
i
rva
l
ue
hi
erarc
hy i
s
established as a basis for considerin
g
such assumptions and for inputs used in the valuation methodolo
g
ies in
measur
i
ng
f
a
i
rva
l
ue. T
hi
s
hi
erarc
h
y requ
i
res ent
i
t
i
es to max
i
m
i
ze t
h
e use o
f
o
b
serva
bl
e
i
nputs an
d
m
i
n
i
m
i
ze t
he
u
se o
f
uno
b
serva
bl
e
i
nputs. T
h
et
h
ree
l
eve
l
so
fi
nputs use
d
to measure
f
a
i
rva
l
ues are as
f
o
ll
ows
:
Level 1 – Observable
p
rices in active markets for identical assets and liabilities
.
Level 2 – Observable in
p
uts other than
q
uoted
p
rices in active markets for identical assets and liabilities.
Level 3 – Unobservable inputs that are supported b
y
little or no market activit
y
and that are si
g
nificant
t
ot
h
e
f
a
i
rva
l
ue o
f
t
h
e assets an
dli
a
bili
t
i
es.
Recurring Fair Value Measurements
T
he followin
g
table presents the fair values for those assets and (liabilities) measured on a recurrin
g
basis a
s
of
June 30
,
2011
:
F
a
i
r
V
alue Measurements
(
in millions
)
Level
1
L
evel
2
L
evel
3
T
ota
l
Cash E
q
uivalents (1) ..............................
$
1,065.6
$
0.0
$
0.0
$
1,065.6
Forwar
d
Contracts
(
2
)
.............................
0
.
0
32
.
10
.
032
.
1
O
ther Investments (3
)
.............................
79
.7
0
.
00
.
0
7
9
.
7
Contingent Consideration (4) ....................... 0.0 0.
0
(7
5
.4) (7
5
.4)
Total
..........................................
$1,145.3 $32.1 $(75.4) $1,102.
0
Th
e
f
o
ll
ow
i
n
g
ta
bl
e presents t
h
e
f
a
i
rva
l
ues
f
or t
h
ose assets measure
d
on a recurr
i
n
gb
as
i
saso
f
June 30
,
2010
:
Fa
i
r Value Measurement
s
(
in millions)
L
evel
1
Level
2
L
evel
3
Tota
l
Cash E
q
uivalents (1)
..............................
$2,019.0 $ 0.0 $0.0 $2,019.
0
I
nvestment in CareFusion
(5)
.
.....................
.
691.
5
0.0 0.0 691.
5
Forwar
d
Contracts
(
2
)
.............................
0
.
0
2
6
.2
0
.
0
2
6
.
2
O
ther Investments (3
)
.............................
7
1
.
30
.
00
.
0
7
1
.
3
T
ota
l
...........................................
$2
,
781.8 $26.2 $0.0 $2
,
808.
0
(1) Cas
h
equ
i
va
l
ents are compr
i
se
d
o
fhi
g
hl
y
li
qu
id i
nvestments purc
h
ase
d
w
i
t
h
a matur
i
ty o
f
t
h
ree mont
h
so
r
less. The carr
y
in
g
value of these cash equivalents approximates fair value due to their short-term maturities
.
67