Cardinal Health 2010 Annual Report Download - page 105

A
t June 30, 2010 and 2009, we had a committed receivables sales facility program available through CH
F
with capacity to sell
$
950.0 million in receivables. Recourse is provided under the program by the requirement
that CHF retain a subordinated interest in the sold receivables. We did not have any receivables outstanding
under the committed receivables sales facility program at June 30, 2010 and 2009. During the second quarter o
f
f
iscal 2010, we amended our committed receivables sales facility program to extend it for an additional 3
6
4 days.
C
ash Flows
f
rom all Receivable-Related Arrangements
Our net cas
hfl
ow
d
ecrease re
l
ate
d
to rece
i
va
bl
e
i
nterest trans
f
ers
f
or
fi
sca
l
2010
,
2009 an
d
2008 were as
f
o
ll
o
w
s:
(
in millions
)
2
0
1
0
2
009
2
008
Cash collected in servicing of related receivable interests .........................
$
0.0
$
0.0
$
0.3
Cas
hi
n
fl
ow to Car
di
na
l
Hea
l
t
h
..............................................
$
0.0
$
0.0
$
0.3
Cas
h
co
ll
ect
i
on rem
i
tte
d
to t
h
e
b
an
k
..........................................
(0
.
0) (2
.
8) (43
.
2)
Net im
p
act to Cardinal Health cash flow
s
......................................
$(0.0) $(2.8) $(42.9
)
CHF was requ
i
re
d
to repurc
h
ase any rece
i
va
bl
es or
i
nterests so
ld if i
t was
d
eterm
i
ne
d
t
h
at t
he
r
epresentat
i
ons an
d
warrant
i
es w
i
t
h
regar
d
to t
h
ere
l
ate
d
rece
i
va
bl
es were not accurate on t
h
e
d
ate so
ld
,an
d
w
i
t
h
r
espect to t
h
e comm
i
tte
d
sa
l
es
f
ac
ili
ty program,
i
nt
h
e event t
h
at we
f
a
il
e
d
to comp
l
yw
i
t
h
t
h
e covenants
i
nt
h
e
Per
f
ormance Guaranty or any ot
h
er customary amort
i
zat
i
on event occurre
d
. Dur
i
ng
fi
sca
l
2010, we sat
i
s
fi
e
d
a
ll
of
our outstan
di
ng o
bli
gat
i
ons un
d
er t
h
ese agreements
.
Operating Leases
I
n a prior
y
ear, we entered into an operatin
g
lease a
g
reement with a third part
y
bank for the construction of
various facilities and equipment. On June 2
6
, 2009, we repurchased all remainin
g
buildin
g
s, equipment and lan
d
which were previousl
y
under this operatin
g
lease a
g
reement for $151.2 million. In addition, as part of th
e
r
epurchase we reco
g
nized a $3.8 million impairment char
g
e.
1
9. SELECTED
Q
UARTERLY FINANCIAL DATA (UNAUDITED
)
The following is selected quarterly financial data for fiscal 2010 and 2009. The sum of the quarters may no
t
equal year-to-date due to rounding.
(
in millions, except per common share amounts)
F
i
rst
Q
uarter
S
econ
d
Q
uarter
Th
i
r
d
Q
uarter
F
ourt
h
Q
uarter (1
)
F
i
scal 2010
R
evenue ............................................
.
$
24
,
780.7
$
24
,
919.7
$
24
,
342.8
$
24
,
459.
6
G
ross marg
i
n
.
.......................................
.
908.8 957.7 1
,
010.1 904.1
D
i
str
ib
ut
i
on, se
lli
ng, genera
l
an
d
a
d
m
i
n
i
strat
i
ve expenses .....
.
586.1 605.2 628.6 588.2
Earn
i
ngs/(
l
oss)
f
rom cont
i
nu
i
ng operat
i
on
s
.
................
.
(
61.8
)
230.2 224.8 193.8
Earn
i
ngs/(
l
oss)
f
rom
di
scont
i
nue
d
operat
i
ons ...............
.
23.6 4.3
(
2.4
)
29.7
Net earn
i
ngs/(
l
oss) ....................................
.
(
38.2
)
234.5 222.4 223.
5
Earn
i
ngs/(
l
oss)
f
rom cont
i
nu
i
ng operat
i
ons per Common S
h
are:
B
as
ic
................................................
$
(
0.17
)
$ 0.64 $ 0.63 $ 0.54
D
il
ute
d
..............................................
(
0.17
)
0.64 0.62 0.54
(1) During the fourth quarter of fiscal 2010, we recorded an out-of-period increase in income tax expense o
f
$
14.7 million related to our state
p
rovision-to-return reconciliation (of which
$
5.1 million
p
ertained to th
e
first three
q
uarters of fiscal 2010 and
$
9.6 million
p
ertained to fiscal 2009). The amounts were not materia
l
individually or in the aggregate to current or prior periods.
7
9