Cardinal Health 2009 Annual Report Download - page 68

All Other Segment Performance
Fiscal Year Ended June 30, 2009 Compared to Fiscal Year Ended June 30, 2008
All Other segment revenue declined $172 million or 14% during fiscal 2009. All Other segment profit
decreased $5 million or 5% during fiscal 2009. A decline in gross margin decreased segment profit by $40
million and a decline in SG&A expenses increased segment profit by $35 million.
Fiscal Year Ended June 30, 2008 Compared to Fiscal Year Ended June 30, 2007
All Other segment revenue increased $39 million or 3% during fiscal 2008. All Other segment profit
decreased $6 million or 6% during fiscal 2008. An increase in gross margin increased segment profit by $22
million and an increase in SG&A expenses decreased segment profit by $28 million.
New Segment Structure for Fiscal 2010
Effective July 1, 2009, the Company changed its reportable segments to: 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 medical distribution or supply chain 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 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.
Other Matters
Acquisitions
During fiscal 2009 the Company completed an acquisition that individually was not significant. The
aggregate purchase price of this acquisition, which was paid in cash, was approximately $129 million with
potential maximum contingent payments of $14 million. Assumed liabilities of this acquired business was
approximately $102 million. The consolidated financial statements include the results of operations from this
business combination from the date of acquisition. For further information regarding the Company’s acquisitions
see “Item 1—Business—Acquisitions and Divestitures” and Note 2 of “Notes to Consolidated Financial
Statements.”
During fiscal 2008, the Company acquired the assets of privately held Enturia, which included Enturia’s line
of infection prevention products sold under the ChloraPrep®brand name. The value of the transaction, including
the assumption of liabilities, totaled approximately $490 million. In addition, during fiscal 2008, the Company
completed other acquisitions that individually were not significant. The aggregate purchase price of these other
acquisitions, which was paid in cash, was approximately $35 million. Assumed liabilities of these other acquired
businesses were approximately $6 million. The consolidated financial statements include the results of operations
from each of these business combinations from the date of acquisition.
During fiscal 2007, the Company acquired Viasys, which offered products and services directed at critical
care ventilation, respiratory diagnostics and clinical services and other medical and surgical products markets.
The value of the transaction, including the assumption of liabilities, totaled approximately $1.5 billion. In
addition, during fiscal 2007, the Company completed other acquisitions that individually were not significant.
The aggregate purchase price of these other acquisitions, which was paid in cash, was approximately
$174 million. Assumed liabilities of these other acquired businesses were approximately $22 million. The
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