Cardinal Health 2008 Annual Report Download - page 135

The following table presents revenue and net property and equipment by geographic area:
Revenue
Property and
Equipment, Net
For the Fiscal Year Ended June 30, As of June 30,
(in millions) 2008 2007 2006 2008 2007
United States ................................ $89,321.3 $85,548.3 $78,463.9 $1,582.7 $1,544.2
International ................................ 1,770.1 1,303.7 1,200.3 154.5 102.8
Total ...................................... $91,091.4 $86,852.0 $79,664.2 $1,737.2 $1,647.0
New Segment Reporting Structure
On July 8, 2008, the Company announced the reorganization and consolidation of its businesses into two
primary operating and reportable segments, the Healthcare Supply Chain Services and Clinical and Medical
Products segments, to reduce costs and align resources with the needs of each segment and that, effective July 1,
2008, it would begin reporting in three reportable segments. The following indicates the changes from the fiscal
2008 reporting structure to the new reporting structure effective July 1, 2008:
Healthcare Supply Chain Services. This reportable segment will comprise all of the businesses formerly
within the Healthcare Supply Chain Services—Pharmaceutical segment other than Medicine Shoppe and will
comprise all of the businesses formerly within the Healthcare Supply Chain Services—Medical segment.
Clinical and Medical Products. This reportable segment will comprise all of the businesses formerly within
the Clinical Technologies and Services segment other than the pharmacy services business (outsourced hospital
pharmacy management services) and will comprise all of the businesses formerly within the Medical Products
and Technologies segment other than the Tecomet (orthopedic implants and instruments) and MedSystems
(enteral devices and airway management products) businesses, which were acquired by the Company through its
acquisition of Viasys.
All Other. This reportable segment will comprise Medicine Shoppe and the pharmacy services, Tecomet and
MedSystems businesses. The Company entered into a definitive agreement to sell the Tecomet business to
Charlesbank Capital Partners and Tecomet management on July 22, 2008.
On August 7, 2008, the Company publicly announced that its Board of Directors has supported a
management recommendation to actively explore a potential separation of the Company’s new Healthcare
Supply Chain Services and Clinical and Medical Products segments, which management is proceeding to do. The
separation being explored could involve a tax-free spin-off of all or a portion of the businesses comprising the
Clinical and Medical Products reportable segment as a separate, publicly traded company. The Company plans to
announce its decision within approximately 60 to 90 days of August 7, 2008.
18. EMPLOYEE EQUITY AND SAVINGS PLANS
Employee Equity Plans
The Company maintains several stock incentive plans (collectively, the “Plans”) for the benefit of certain of
its officers, directors and employees. Employee options granted under the Plans during fiscal 2007 and 2006
generally vest in equal annual installments over four years and are exercisable for periods up to seven years from
the date of grant at a price equal to the fair market value of the Common Shares underlying the option at the date
of grant. Employee options granted under the Plans during fiscal 2008 generally vest in equal annual installments
over three years and are exercisable for periods up to seven years from the date of grant at a price equal to the
fair market value of the Common Shares underlying the option at the date of grant. Under the Plans the Company
currently utilizes for equity award grants, the Company was authorized to grant up to 18.8 million
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