Cardinal Health 2010 Annual Report Download - page 104

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f
ollowing the Spin-Off equaled the fair value of the awards held immediately prior to the Spin-Off. Ou
r
o
ther restricted shares or restricted share units granted to employees or directors who joined
C
areFusion in connection with the S
p
in-Off were canceled and re
p
laced with a number of shares of
C
areFusion restricted stock or CareFusion restricted stock units established so that the fair value of th
e
shares subject to the awards held immediately following the Spin-Off equaled the fair value of the
a
wards held immediately prior to the Spin-Off.
• Our a
dj
uste
d
stoc
k
opt
i
ons, restr
i
cte
d
s
h
ares, an
d
restr
i
cte
d
s
h
are un
i
ts an
d
t
h
e CareFus
i
on stoc
k
o
pt
i
ons, restr
i
cte
d
stoc
k
an
d
restr
i
cte
d
stoc
k
un
i
ts t
h
at a
h
o
ld
er rece
i
ve
d
are su
bj
ect to su
b
stant
i
a
lly
t
h
e
same terms, vest
i
n
g
con
di
t
i
ons an
d
ot
h
er restr
i
ct
i
ons,
if
an
y
,t
h
at were app
li
ca
bl
epr
i
or to t
h
eSp
i
n-O
ff
.
T
h
ea
dj
ustments to stoc
ki
ncent
i
ve p
l
ans were treate
d
as a mo
difi
cat
i
on
i
n accor
d
ance w
i
t
h
s
h
are-
b
ase
d
compensation accountin
gg
uidance and resulted in a total incremental compensation cost of $0.6 million
.
The following table summarizes the share-based compensation awards outstanding as of June 30, 2010
:
O
ur Awards
C
areFusion Awards
(
in millions
)
S
tock
Op
t
i
on
s
R
es
tri
c
t
ed
S
hares an
d
S
hare
U
nit
s
S
tock
Op
t
i
on
s
R
es
tri
c
t
ed
S
hares an
d
S
hare
U
nit
s
He
ld b
y our emp
l
oyees an
df
ormer emp
l
oyees
.................
21
.
93
.
2
7.
10
.
1
Held by CareFusion employee
s
.
............................
2
.
20
.
1
Tota
l
..................................................
24
.
13
.
3
Em
pl
o
y
ee Savings P
l
an
S
ubstantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored
contributory retirement savings plan, which include features under Section 401(k) of the Internal Revenue Cod
e
o
f 1986, as amended, and provide for matching and profit sharing contributions by us. Our contributions to the
p
lans are determined by the Board of Directors subject to certain minimum requirements as specified in the plan.
T
h
e
f
o
ll
ow
i
ng ta
bl
e summar
i
zes t
h
e tota
l
expense
f
or emp
l
oyee ret
i
rement sav
i
ngs p
l
ans
f
or
fi
sca
l
2010,
2009 an
d
2008:
F
or the F
i
scal Year Ended June 30
,
(
in millions
)
2010
2009
2008
Emp
l
oyee ret
i
rement sav
i
ngs p
l
ans expens
e
..........................
$
84.3
$
72.4
$
64.2
1
8.
O
FF-BALAN
C
E
S
HEET ARRAN
G
EMENT
S
We per
i
o
di
ca
ll
y enter
i
nto certa
i
no
ff
-
b
a
l
ance s
h
eet arrangements, pr
i
mar
il
y rece
i
va
bl
esa
l
es an
d
operat
i
ng
l
eases,
i
nor
d
er to max
i
m
i
ze
di
vers
ifi
cat
i
on o
ff
un
di
ng an
d
return on assets. T
h
e rece
i
va
bl
esa
l
es, as
d
escr
ib
e
d
b
e
l
ow, a
l
so prov
id
e
f
or t
h
e trans
f
er o
f
cre
di
tr
i
s
k
to t
hi
r
d
part
i
es
.
Receiva
bl
e-Re
l
ate
d
Arrangements
Car
di
na
l
Hea
l
t
h
Fun
di
ng, LLC (“CHF”) was organ
i
ze
df
or t
h
eso
l
e purpose o
fb
uy
i
ng rece
i
va
bl
es an
d
se
lli
ng un
di
v
id
e
di
nterests
i
nt
h
ose rece
i
va
bl
es to mu
l
t
i
-se
ll
er con
d
u
i
ts a
d
m
i
n
i
stere
db
yt
hi
r
d
party
b
an
k
sorot
h
e
r
t
hi
r
d
party
i
nvestors. CHF was
d
es
i
gne
d
to
b
e a spec
i
a
l
purpose,
b
an
k
ruptcy-remote ent
i
ty. A
l
t
h
oug
h
conso
lid
ate
di
n accor
d
ance w
i
t
h
GAAP, CHF
i
s a separate
l
ega
l
ent
i
ty
f
rom Car
di
na
l
Hea
l
t
h
an
df
rom our
su
b
s
idi
ary t
h
at se
ll
san
d
contr
ib
utes t
h
e rece
i
va
bl
es to CHF. T
h
roug
h
June 30, 2010, t
h
esa
l
eo
f
rece
i
va
bl
es
by
CHF qua
lifi
e
df
or sa
l
es treatment
i
n accor
d
ance w
i
t
h
t
h
e account
i
ng gu
id
ance regar
di
ng
fi
nanc
i
a
l
asset trans
f
ers.
As
di
scusse
di
n Note 1, t
h
e FASB
i
ssue
d
new account
i
ng gu
id
ance on t
h
e account
i
ng
f
or trans
f
ers o
ffi
nanc
i
a
l
assets. As a resu
l
to
f
t
hi
s new gu
id
ance, we
h
ave
d
eterm
i
ne
d
t
h
at our comm
i
tte
d
rece
i
va
bl
es sa
l
es
f
ac
ili
ty w
ill
no
t
qua
lif
yasano
ff
-
b
a
l
ance s
h
eet arrangement
b
eg
i
nn
i
ng
i
n
fi
sca
l
2011
.
7
8