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Notes to Financial Statements
Cardinal Health | Fiscal 2015 Form 10-K 70
The following table summarizes all transactions related to
performance share units under the Plans (based on target award
amounts):
(in millions, except per share amounts) Performance
Share Units
Weighted-Average
Grant Date Fair
Value per Share
Nonvested at June 30, 2013 0.8 $ 41.37
Granted 0.3 51.49
Vested (1) (0.2) 41.60
Canceled and forfeited — —
Nonvested at June 30, 2014 0.9 $ 44.41
Granted 0.2 71.63
Vested (2) (0.2) 41.59
Canceled and forfeited — —
Nonvested at June 30, 2015 0.9 $ 50.31
(1) Vested based on achievement of 143 percent of the target performance goal.
(2) Vested based on achievement of 120 percent of the target performance goal.
The following table provides additional data related to performance
share unit activity:
(in millions) 2015 2014 2013
Total compensation cost, net of estimated
forfeitures, related to nonvested
performance share units not yet recognized,
pre-tax $ 16 $ 15 $ 12
Weighted-average period over which
performance share unit cost is expected to
be recognized (in years) 22 2
Total fair value of shares vested during the
year $ 8 $ 7 $ —
Employee Retirement Savings Plans
Substantially all of our domestic non-union employees are eligible to
be enrolled in our company-sponsored contributory retirement
savings plans, which include features under Section 401(k) of the
Internal Revenue Code of 1986, and provide for matching and profit
sharing contributions by us. Our contributions to the plans are
determined by the Board of Directors subject to certain minimum
requirements as specified in the plans. The total expense for our
employee retirement savings plans was $91 million, $75 million and
$68 million for fiscal 2015, 2014 and 2013, respectively.
17. Selected Quarterly Financial Data (Unaudited)
The following is selected quarterly financial data for fiscal 2015 and
2014. The sum of the quarters may not equal year-to-date due to
rounding.
(in millions, except per common
share amounts) First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Fiscal 2015
Revenue $ 24,070 $ 25,537 $ 25,375 $ 27,547
Gross margin 1,341 1,454 1,459 1,458
Distribution, selling, general
and administrative expenses 775 815 803 847
Earnings from continuing
operations 266 289 365 293
Earnings from discontinued
operations, net of tax — — — 2
Net earnings 266 289 365 295
Earnings from continuing
operations per common
share:
Basic $ 0.79 $ 0.87 $ 1.10 $ 0.89
Diluted 0.78 0.86 1.09 0.88
(in millions, except per common
share amounts) First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Fiscal 2014
Revenue $24,523 $22,240 $21,427 $ 22,894
Gross margin 1,264 1,345 1,297 1,256
Distribution, selling, general and
administrative expenses 732 766 736 795
Earnings from continuing
operations 340 275 315 234
Earnings/(loss) from
discontinued operations, net of
tax (1) 3 — —
Net earnings 339 278 315 234
Earnings from continuing
operations per common
share:
Basic $ 1.00 $ 0.80 $ 0.92 $ 0.69
Diluted 0.99 0.79 0.91 0.68
18. Subsequent Events
On July 2, 2015 we completed the acquisition of Harvard Drug for
$1.1 billion, net of cash acquired, as discussed in Note 2.