Cardinal Health 2008 Annual Report Download - page 131

Fiscal 2007. Pursuant to the $4.5 billion combined share repurchase program referenced above, the
Company repurchased approximately 53.8 million Common Shares having an aggregate cost of approximately
$3.8 billion during fiscal 2007. The average price paid per Common Share was $69.79.
Fiscal 2006. On June 27, 2005, the Company announced a $1.0 billion share repurchase program which was
amended on April 26, 2006 increasing the program to $1.5 billion. Pursuant to this program, the Company
repurchased approximately 22.0 million Common Shares having an aggregate cost of approximately $1.5 billion
during fiscal 2006. The average price paid per Common Share was $68.39.
The Common Shares repurchased were held in treasury to be used for general corporate purposes. During
fiscal 2008, the Company retired 128 million Common Shares in treasury. The retirement of these shares had no
impact on total shareholders’ equity; however, it did impact certain of the individual components of
shareholders’ equity as follows: $1.0 billion decrease in Common Shares, $7.5 billion decrease in retained
earnings and $8.5 billion decrease in Common Shares in treasury.
16. EARNINGS PER SHARE
Basic EPS is computed by dividing net earnings (the numerator) by the weighted average number of
Common Shares outstanding during each period (the denominator). Diluted EPS is similar to the computation for
Basic EPS, except that the denominator is increased by the dilutive effect of vested and unvested stock options,
restricted shares, and restricted share units computed using the treasury stock method.
The following table reconciles the number of Common Shares used to compute basic and diluted earnings
per Common Share for the three years ending June 30, 2008, 2007 and 2006:
(in millions) 2008 2007 2006
Weighted-average shares-basic .............................................. 358.2 394.9 421.2
Effect of dilutive securities:
Employee stock options, restricted shares, and restricted share units ............. 5.8 9.8 7.3
Weighted-average shares-diluted ............................................. 364.0 404.7 428.5
The potentially dilutive securities that were antidilutive for fiscal 2008, 2007 and 2006 were 22.1 million,
5.4 million, and 13.8 million, respectively.
The total amount of Common Shares issued less the shares held in treasury is used to determine the
Common Shares outstanding.
17. SEGMENT INFORMATION
Current Segment Reporting Structure
The Company’s operations are principally managed on a products and services basis and are comprised of
four reportable segments: Healthcare Supply Chain Services—Pharmaceutical; Healthcare Supply Chain
Services—Medical; Clinical Technologies and Services; and Medical Products and Technologies.
The Healthcare Supply Chain Services—Pharmaceutical segment provides logistics services to the
pharmaceutical industry, distributing products and providing services to retail, alternate care and hospital
pharmacies. This segment also operates a pharmaceutical repackaging and distribution program for chain and
independent drug store customers as well as alternate care customers. In addition, this segment operates
centralized nuclear pharmacies, provides third-party logistics support services, distributes therapeutic plasma to
hospitals, clinics and other providers located in the United States and manufactures and markets generic
pharmaceutical products for sale to hospitals, clinics and pharmacies in the United Kingdom. Lastly, this segment
operates specialty pharmacy facilities and franchises and operates apothecary-style retail pharmacies.
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