Cardinal Health 2010 Annual Report Download - page 35

identifiable healthcare information should be handled, which entities should com
p
ile that information, and how
that work should proceed. Changes in legislation such as the Health Insurance Portability and Accountability Ac
t
o
f 199
6
(“HIPAA”) and its accompanying regulations may affect how some information services or products are
p
rovided. The Health Information Technology for Economic and Clinical Health Act, adopted in February 2009,
augmented HIPAA by increasing existing healthcare privacy requirements, including expanding HIPAA’s reach
to cover additional entities, requiring certain notifications if there is a breach of patient information and
increasing penalties associated with noncompliance. In addition, certain jurisdictions where we do business
r
egulate personal data protection and how information services or products are provided
.
F
ranchising Laws
Our franchising operations, through Medicine Shoppe International, Inc. and Medicap Pharmacies
Incorporated (collectively, “Medicine Shoppe”), are subject to regulation by the Federal Trade Commission. I
n
addition, many states have laws that regulate the franchisor-franchisee relationship
.
Environment
a
lL
a
w
s
We are subject to various federal, state and local environmental laws and we have made, and will continu
e
to make, necessary expenditures to comply with applicable laws. At the present time, we are participating in
cleaning up environmental contamination at several sites, none of which are material to us.
Health and Safety Law
s
We are subject to various federal, state and local laws, regulations and recommendations, both in the Unite
d
States and other countries, relating to safe working conditions, laboratory and manufacturing practices, and th
e
use, transportation and disposal of hazardous or potentially hazardous substances
.
L
aws Relatin
g
to Forei
g
n Trade
Various U.S. and international laws and regulations require us to abide by standards relating to the impor
t
and export of finished goods, raw materials and supplies and the handling of information. We also must comply
with various export control and trade embargo laws and regulations, which may require licenses or other
authorizations for transactions within some countries or with some counter
p
arties
.
S
imilarly, we are subject to laws and regulations concerning the conduct of our foreign operations, including
the U.S. Foreign Corrupt Practices Act, foreign anti-bribery laws and laws pertaining to the accuracy of interna
l
books and records. These laws generally prohibit companies and their intermediaries from making improper
p
ayments to non-U.S. government officials for the purpose of obtaining or retaining business. We operate in
many parts of the world that have experienced some governmental corruption
.
O
ther Information
Our distribution businesses generally are not required by our customers to maintain particular inventor
y
levels other than as needed to meet service level requirements. Certain supply contracts with U.S. governmen
t
entities require us to maintain sufficient inventory to meet emergency demands, but we do not believe those
r
equirements materially affect inventory levels.
Our customer return policies generally require that the product be physically returned, subject to restockin
g
f
ees. We only allow customers to return products that can be added back to inventory and resold at full value, or
that can be returned to vendors for credit.
We offer market payment terms to our customers
.
R
evenue and Lon
g
-Lived Assets by Geo
g
raphic Are
a
S
ee Note 16 to the “Notes Consolidated Financial Statements” for revenue and long-lived assets b
y
geographic area
.
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