Cardinal Health 2015 Annual Report Download - page 67

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Notes to Financial Statements
Cardinal Health | Fiscal 2015 Form 10-K 66
both recorded in other (income)/expense, net at the end of each
period.
The following tables summarize the outstanding economic (non-
designated) derivative instruments at June 30:
2015
(in millions) Notional Amount Maturity Date
Foreign currency contracts $ 398 Jul 2015 -Jul 2015
2014
(in millions) Notional Amount Maturity Date
Foreign currency contracts $ 461 Jul 2014 - Sep 2014
The following table summarizes the gain/(loss) recognized in
earnings for economic (non-designated) derivative instruments:
(in millions) 2015 2014 2013
Foreign currency contracts (1) $ (45) $ 12 $ 6
(1) Included in other income, net in the consolidated statements of earnings.
Fair Value of Financial Instruments
The carrying amounts of cash and equivalents, trade receivables,
net, accounts payable and other accrued liabilities at June 30, 2015
and 2014 approximate fair value due to their short-term maturities.
Cash balances are invested in accordance with our investment policy.
These investments are exposed to market risk from interest rate
fluctuations and credit risk from the underlying issuers, although this
is mitigated through diversification.
The following table summarizes the estimated fair value of our long-
term obligations and other short-term borrowings compared to the
respective carrying amounts at June 30:
(in millions) 2015 2014
Estimated fair value $ 5,521 $ 4,115
Carrying amount 5,492 3,972
The fair value of our long-term obligations and other short-term
borrowings is estimated based on either the quoted market prices
for the same or similar issues or other inputs derived from available
market information, which represents a Level 2 measurement.
The following table is a summary of the fair value gain/(loss) of our
derivative instruments, based upon the estimated amount that we
would receive (or pay) to terminate the contracts at June 30:
2015 2014
(in millions) Notional
Amount Fair Value
Gain/(Loss) Notional
Amount Fair Value
Gain/(Loss)
Pay-floating interest rate
swaps $ 1,613 $ 7 $ 1,438 $ —
Foreign currency
contracts 544 1 643 —
Forward interest rate
swaps — — 300 9
Commodity contracts 22 (3) 24 1
The fair values are based on quoted market prices for the same or
similar instruments, which represents a Level 2 measurement.
13. Shareholders' Equity
At June 30, 2015 and 2014, authorized capital shares consisted of
the following: 750 million Class A common shares, without par value;
5 million Class B common shares, without par value; and 500
thousand non-voting preferred shares, without par value. The Class
A common shares and Class B common shares are collectively
referred to below as “common shares”. Holders of common shares
are entitled to share equally in any dividends declared by the Board
of Directors and to participate equally in all distributions of assets
upon liquidation. Generally, the holders of Class A common shares
are entitled to one vote per share, and the holders of Class B common
shares are entitled to one-fifth of one vote per share on proposals
presented to shareholders for vote. Under certain circumstances, the
holders of Class B common shares are entitled to vote as a separate
class. Only Class A common shares were outstanding at June 30,
2015 and 2014.
We repurchased $2.2 billion of our common shares, in the aggregate,
through share repurchase programs during fiscal 2015, 2014 and
2013, as described below. We funded the repurchases with available
cash. The common shares repurchased are held in treasury to be
used for general corporate purposes.
During fiscal 2015, we repurchased 13.1 million common shares
having an aggregate cost of $1.0 billion. The average price paid per
common share was $79.02.
During fiscal 2014, we repurchased 9.9 million common shares
having an aggregate cost of $673 million. The average price paid per
common share was $67.85.
During fiscal 2013, we repurchased 10.2 million common shares
having an aggregate cost of $450 million. The average price paid per
common share was $44.11.
Accumulated Other Comprehensive Income/(Loss)
The following table summarizes the changes in the balance of
accumulated other comprehensive income/(loss) by component and
in total: