Cardinal Health 2009 Annual Report Download - page 106

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Other
During the fourth quarter of fiscal 2009, the Company committed to plans to sell Martindale within its
Healthcare Supply Chain Services segment, and met the held for sale criteria set forth in SFAS No. 144. In
accordance with SFAS No. 144 and EITF Issue No. 03-13, the net assets of Martindale are presented separately
as held for sale and discontinued operations and the operating results are presented within discontinued
operations for all periods presented. During the fourth quarter of fiscal 2009, the Company also committed to
plans to sell SpecialtyScripts, LLC (“SpecialtyScripts”) within its Healthcare Supply Chain Services segment,
and met the held for sale criteria set forth in SFAS No. 144. Accordingly, the net assets of this business are
presented separately as held for sale on the Company’s consolidated balance sheet at June 30, 2009. At June 30,
2009 and 2008, the net assets held for sale related to this business were $45.6 million and $34.5 million,
respectively. The results of SpecialtyScripts are reported within earnings from continuing operations on the
Company’s consolidated statements of earnings.
During the third quarter of fiscal 2008, the Company committed to plans to sell certain smaller non-core
businesses within its former Medical Products and Technologies segment, and met the held for sale criteria set
forth in SFAS No. 144. Accordingly, the net assets of these businesses are presented separately as held for sale
on the Company’s consolidated balance sheet. The results of these businesses are reported within earnings from
continuing operations on the Company’s consolidated statements of earnings. During the first quarter of fiscal
2009, the Company completed the sale of these businesses.
During the third quarter of fiscal 2006, the Company committed to plans to sell a significant portion of its
healthcare marketing services business (“HMS Disposal Group”) and its United Kingdom-based Intercare
pharmaceutical distribution business (“IPD”) and met the held for sale criteria set forth in SFAS No. 144. The
remaining portion of the healthcare marketing services business remains within the Company. In accordance with
SFAS No. 144 and EITF Issue No. 03-13, the net assets of these businesses are presented separately as held for
sale and the operating results of these businesses are presented within discontinued operations. In accordance
with SFAS No. 144, the net assets held for sale of each business were recorded at the net expected fair value less
costs to sell, as this amount was lower than the businesses’ net carrying value.
Impairment charges of $47.3 million were recorded in fiscal 2007 within discontinued operations for the
HMS Disposal Group and IPD. In the first quarter of fiscal 2007, the Company completed the sale of IPD. In the
third quarter of fiscal 2007, the Company completed the sale of the HMS Disposal Group.
During the fourth quarter of fiscal 2005, the Company decided to close its sterile pharmaceutical
manufacturing business in Humacao, Puerto Rico (“Humacao”) as part of its global restructuring program and
committed to sell the assets of the Humacao operations, and met the held for sale criteria set forth in
SFAS No. 144. During the first quarter of fiscal 2006, the Company subsequently decided not to transfer
production from Humacao to other Company-owned facilities, and met the criteria for classification as
discontinued operations in accordance with SFAS No. 144 and EITF Issue No. 03-13. An impairment charge of
$5.2 million was recorded in fiscal 2007 as a result of recording the net assets held for sale to the net expected
fair value less costs to sell.
The results of the other businesses discussed above included in discontinued operations for fiscal years
ended June 30, 2009, 2008 and 2007 are summarized as follows:
Fiscal Year Ended
June 30,
(in millions) 2009 2008 2007
Revenue ............................................................. $100.5 $115.9 $264.1
Impairments/loss on sale ................................................ — — (52.5)
Operating income/(loss) before taxes ....................................... 17.4 27.7 (49.7)
Income tax benefit/(expense) ............................................. (4.9) (7.8) 12.3
Earnings/(loss) from discontinued operations ................................ 12.5 19.9 (37.4)
84