Cardinal Health 2009 Annual Report Download - page 28

Changes to Reportable Segments For Fiscal 2010
Effective July 1, 2009, the Company changed its reportable segments to three segments: Pharmaceutical,
Medical and CareFusion. The Pharmaceutical segment encompasses the businesses previously within the
Healthcare Supply Chain Services segment that distributed pharmaceutical, radiopharmaceutical and
over-the-counter healthcare products as well as the businesses previously within the All Other segment. The
Medical segment encompasses the remaining businesses within the Healthcare Supply Chain Services segment as
well as certain surgical and exam gloves, surgical drapes and apparel and fluid management businesses
previously within the Clinical and Medical Products segment. The CareFusion segment encompasses the
businesses previously within the Clinical and Medical Products segment excluding the above-referenced surgical
and exam gloves, surgical drapes and apparel and fluid management businesses and includes all businesses to be
included in the Spin-Off. Upon completion of the Spin-Off, the CareFusion segment will be reported as
discontinued operations, and the Company will operate with the two remaining segments.
Acquisitions and Divestitures
From July 1, 2004 to June 30, 2009, the Company completed the acquisitions described below.
Consideration Paid
Date (1) Company Location Line of Business Cash
Stock
Options
Converted (2)
(Amounts in millions)
June 21, 2007 VIASYS Healthcare Inc. Conshohocken,
Pennsylvania
Respiratory, neurology,
medical disposable and
orthopedic products
$1,526(3) 0.1
May 12, 2008 Enturia Inc. Leawood,
Kansas
Infection prevention
products
$ 490(4) —
(1) Represents the date the Company became the majority shareholder.
(2) As a result of the acquisition, the outstanding stock options of the acquired company were converted into options to
purchase the Company’s Common Shares. This column represents the number of the Company’s Common Shares
subject to such converted stock options immediately following conversion.
(3) Includes the assumption of approximately $54 million in debt; also includes approximately $88 million of shares
purchased under equity compensation plans in July 2007.
(4) Includes the assumption of approximately $5 million in debt.
The Company also has completed a number of other smaller acquisitions (asset purchases, stock purchases
and mergers) during the last five fiscal years, including the following: Geodax Technology, Inc. during fiscal
2005; ParMed Pharmaceutical, Inc., Denver Biomedical, Inc., the wholesale pharmaceutical, health and beauty
and related drugstore products distribution business of F. Dohmen Co., and certain of its subsidiaries, and the
remaining shares of Source Medical Corporation, its Canadian joint venture during fiscal 2006; MedMined, Inc.,
Care Fusion Incorporated and SpecialtyScripts, LLC (“SpecialtyScripts”) during fiscal 2007; and Borschow
Hospital & Medical Supplies, Inc. during fiscal 2009.
On an ongoing basis, the Company evaluates possible candidates for merger or acquisition and considers
opportunities to expand its operations and services across all reportable segments. These acquisitions may
involve the use of cash, stock or other securities as well as the assumption of indebtedness and liabilities.
From July 1, 2004 to June 30, 2009, the Company completed several divestiture transactions. These
transactions include divesting the non-core domestic businesses of Syncor International Corporation (“Syncor”)
in several transactions since acquiring Syncor in fiscal 2003. During fiscal 2006, the Company divested a
significant portion of its specialty distribution business. During fiscal 2007, the Company completed the sale of
its former Pharmaceutical Technologies and Services segment, other than certain generic-focused businesses (the
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