Cardinal Health 2008 Annual Report Download - page 141

Download and view the complete annual report

Please find page 141 of the 2008 Cardinal Health annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

20. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
The following is selected quarterly financial data for fiscal 2008 and 2007. 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
(1)(2)(3)
Fiscal 2008
Revenue ............................................ $21,973.4 $23,282.7 $22,909.6 $22,925.6
Gross margin ........................................ 1,342.2 1,354.6 1,467.8 1,469.4
Selling, general and administrative expenses ............... 830.1 828.9 854.5 901.3
Earnings from continuing operations ..................... 303.2 325.1 365.9 321.6
Loss from discontinued operations ....................... (1.4) (0.4) (9.9) (3.6)
Net earnings ......................................... $ 301.8 $ 324.7 $ 356.0 $ 318.0
Earnings from continuing operations per Common Share:
Basic .............................................. $ 0.83 $ 0.91 $ 1.03 $ 0.90
Diluted ............................................. 0.82 0.89 1.02 0.89
(1) During the fourth quarter of fiscal 2008, the Company’s Medical Products and Technologies segment
discovered it had failed to recognize a portion of profit on sales pertaining to prior years. The error resulted
from system interface and reconciliation discrepancies over a period of several years. As a result, the
Company recorded income of approximately $15.9 million in the fourth quarter of fiscal 2008 of which $4.8
million pertained to the first three quarters of fiscal 2008, $7.4 million pertained to fiscal 2007 and $3.7
million pertained to fiscal 2006. In connection with this matter, the Company implemented an action plan
that has addressed the issues related to the error.
(2) During the fourth quarter of fiscal 2008, the Company recognized equity-based compensation expense
related to unvested equity awards held by the former Executive Director of the Company. The Company
also recognized consulting arrangement fees to be paid to the former Executive Director of the Company.
The acceleration of the equity-based compensation expense and the consulting arrangement fees, which
totaled $12.2 million, resulted from a change in status from an employee to a nonemployee director.
(3) During the fourth quarter of fiscal 2008, the Company recognized $37.3 million of additional tax expense
related to an increase in the estimated state income tax rate on deferred tax items and recognized a $30.4
million reduction in tax expense for items pertaining to fiscal 2002 and 2001 for which the statute of
limitations had lapsed.
The Company did not record any significant adjustments in the fourth quarter of fiscal 2008 other than those
disclosed above and within the Notes.
(in millions, except per common share amounts)
First
Quarter (1)
Second
Quarter
Third
Quarter
Fourth
Quarter
Fiscal 2007
Revenue ............................................ $20,937.5 $21,784.6 $21,867.1 $22,262.8
Gross margin ........................................ 1,200.5 1,299.9 1,387.5 1,357.4
Selling, general and administrative expenses ............... 725.5 755.6 781.7 819.3
Earnings/(loss) from continuing operations ................ 291.4 315.7 (4.9) 237.7
Earnings/(loss) from discontinued operations ............... (20.7) 423.6 23.9 664.5
Net earnings ......................................... $ 270.7 $ 739.3 $ 19.0 $ 902.2
Earnings/(loss) from continuing operations per
Common Share:
Basic .............................................. $ 0.72 $ 0.78 $ (0.01) $ 0.63
Diluted ............................................. 0.71 0.77 (0.01) 0.61
(1) Amounts do not agree to those previously disclosed in the Company’s Form 10-Q for the period ended
September 30, 2006 as they have been reclassified for the classification of the PTS Business to discontinued
operations.
117