Cardinal Health 2015 Annual Report Download - page 59

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Notes to Financial Statements
Cardinal Health | Fiscal 2015 Form 10-K 58
(in millions) 2015 2014
Current available-for-sale securities:
Commercial paper $ 4 $ 4
Treasury bills 12 85
International bonds 21
Corporate bonds 34 3
U.S. agency bonds 5—
Asset-backed securities 8—
U.S. agency mortgage-backed securities 26 —
Total current available-for-sale securities 91 93
Long-term available-for-sale securities:
Corporate bonds 33 5
U.S. agency bonds 18 2
Asset-backed securities 41 —
U.S. agency mortgage-backed securities 10 —
Total long-term available-for-sale securities 102 7
Total available-for-sale securities $ 193 $ 100
Gross unrealized gains and losses were immaterial at both June 30,
2015 and 2014. We did not recognize any other-than-temporary
impairments during fiscal 2015 or 2014. At June 30, 2015, the
weighted-average effective maturity of our current and long-term
investments was approximately 8 months and 16 months,
respectively.
7. Long-Term Obligations and Other Short-Term
Borrowings
The following table summarizes long-term obligations and other
short-term borrowings at June 30:
(in millions) 2015 2014
1.7% Notes due 2018 $ 404 $ 401
1.9% Notes due 2017 251 251
1.95% Notes due 2018 550 —
2.4% Notes due 2019 450 —
3.2% Notes due 2022 249 248
3.2% Notes due 2023 549 549
3.5% Notes due 2024 398 —
3.75% Notes due 2025 500 —
4.0% Notes due 2015 —513
4.5% Notes due 2044 345 —
4.6% Notes due 2043 349 349
4.625% Notes due 2020 524 525
4.9% Notes due 2045 450 —
5.8% Notes due 2016 —301
5.85% Notes due 2017 —158
6.0% Notes due 2017 —197
7.0% Debentures due 2026 124 124
7.8% Debentures due 2016 37 37
Other obligations 312 319
Total $ 5,492 $ 3,972
Less: current portion of long-term obligations
and other short-term borrowings 281 801
Long-term obligations, less current
portion $ 5,211 $ 3,171
Maturities of existing long-term obligations and other short-term
borrowings for fiscal 2016 through 2020 and thereafter are as follows:
$281 million, $310 million, $956 million, $2 million, $452 million, and
$3,491 million.
Long-Term Debt
The 1.7%, 1.9%, 1.95%, 2.4%, 3.2%, 3.2%, 3.5%, 3.75%, 4.5%,
4.6%, 4.625%, and 4.9% Notes represent unsecured obligations of
Cardinal Health, Inc. and rank equally in right of payment with all of
our existing and future unsecured and unsubordinated indebtedness.
The 7.0% and 7.8% Debentures represent unsecured obligations of
Allegiance Corporation (a wholly-owned subsidiary), which Cardinal
Health, Inc. has guaranteed. None of these obligations are subject
to a sinking fund and the Allegiance obligations are not redeemable
prior to maturity. Interest is paid pursuant to the terms of the
obligations. These notes are effectively subordinated to the liabilities
of our subsidiaries, including trade payables of $14 billion.
In June 2015, we sold $550 million aggregate principal amount of
1.95% Notes that mature on June 15, 2018, $500 million aggregate
principal amount of 3.75% Notes that mature on September 15, 2025,
and $450 million aggregate principal amount of 4.9% Notes that
mature on September 15, 2045. We used a portion of the net
proceeds from the offering to acquire Harvard Drug on July 2, 2015,