Cardinal Health 2010 Annual Report Download - page 52

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Consolidated Operating Earnings
I
n addition to revenue, gross margin and SG&A discussed above, operating earnings were impacted by the
f
ollowing
:
2
0
1
0
2
009
2
008
R
estructuring and Employee Severance
.
....................................
$
9
0.7
$
104.7
$
55.3
Ac
q
uisition Related Costs
.
............................................... 8.4 2.8 2.
6
Im
p
airments and (Gain)/Loss on Sale of Assets
...............................
29
.
113
.
9 (33
.
3)
L
itigation (Credits)/Charges, Net
..........................................
(62.4)
5
.2 19.
5
F
i
s
cal 2010
•
R
estructur
i
ng and employee severance
:
F
iscal 2010 restructuring and employee severance charges
i
ncluded
$
65 million of costs arising from the Spin-Off, including approximately
$
19 million of costs
r
elated to the retirement of our former Chairman and Chief Executive Officer. We ex
p
ect to incur
a
dditional costs associated with existing restructuring activities—primarily arising from the Spin-Off—
t
otaling approximately
$
15 million.
•
I
mpairments and
(
gain
)
/loss on sale of assets: We recognized an impairment charge of
$
18 million
related to the write-down of SpecialtyScripts, a business within our Pharmaceutical segment. W
e
c
ompleted the sale of SpecialtyScripts during the third quarter of fiscal 2010
.
•
L
itigation
(
credits
)
/charges, net: We received income of
$
41 million resulting from settlement of a
c
lass action antitrust claim alleging that a defendant branded pharmaceutical manufacturer took
i
mproper actions to delay the entry of a generic version of a branded pharmaceutical. In addition, we
r
eceived
$
26 million of income for insurance proceeds released from escrow after litigation against
c
ertain directors and officers was resolved
.
F
iscal 200
9
•
R
estructur
i
ng and employee severance
:
D
uring fiscal 2009, restructuring and employee severance
p
rimarily related to the Spin-Off (
$
74 million) and realignment of our segment operating structure (
$
16
m
illion).
F
i
s
cal 2008
•
R
estructur
i
ng and employee severance
:
D
uring fiscal 2008, restructuring and employee severance
p
rimarily related to the relocation of our medical products distribution headquarters and certai
n
c
orporate functions from Waukegan, Illinois to our corporate headquarters in Dublin (
$
28 million) an
d
r
ealignment of our business operations (
$
10 million).
•
I
mpairments and
(
gain
)
/loss on sale of assets:
D
uring fiscal 2008, we divested an investment withi
n
our Pharmaceutical segment and recognized a
$
23 million gain.
•
L
itigation
(
credits
)
/charges, net: We recognized litigation charges totaling
$
74 million due to th
e
r
esolution of the DEA license suspensions (
$
34 million) and other matters. These charges were offset
by
$
58 million of income related to the settlement of several derivative actions against certain directors
a
nd officers.
2
6