Cardinal Health 2010 Annual Report Download - page 53

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Earnings Be
f
ore Income Taxes an
d
Discontinue
d
O
p
eration
s
I
n addition to items discussed above, earnings before income taxes and discontinued operations wer
e
impacted by the following:
C
hang
e
E
arn
i
ngs Be
f
ore Income Taxe
s
and D
i
scont
i
nued
O
perat
i
ons
2010
2009
2010
2009
2008
Ot
h
er (
i
ncome)/expense, ne
t
...........................
N
.M. N.M. $ (13.5) $ 13.2 $ (38.8
)
I
nterest expense, net
.................................
(
1)% (16)% 113.5 114.4 136.
1
L
oss on ext
i
n
g
u
i
s
h
ment o
fd
e
bt
.........................
N
.M. N.M. 39.9 0.0 0.
0
G
a
i
nonsa
l
eo
fC
areFus
i
on common stoc
k
................
N
.M. N.M. (44.
6
) 0.0 0.0
F
isca
l
2010 Com
p
are
d
to Fisca
l
200
9
•
O
ther (income)/ex
p
ense, net
:
Ot
h
er (
i
ncome)/expense, net
i
s
f
avora
bl
e compare
d
to
fi
sca
l
200
9
p
rimaril
y
due to income of $6 million related to the performance of our deferred compensation plan
a
ssets versus a $12 million expense in fiscal 2009. The income and expense related to the performanc
e
of
t
h
e
d
e
f
erre
d
com
p
ensat
i
on
pl
an assets
i
so
ff
set w
i
t
hi
n SG&A. Ot
h
er (
i
ncome)/ex
p
ense, net was a
l
s
o
f
avorabl
y
impacted b
y
forei
g
n exchan
g
e ($16 million)
.
•
L
oss on extin
g
uishment of debt:
O
n September 24, 2009, we completed a debt tender for up to $1.
2
billion of certain outstandin
g
debt securities, ultimatel
y
purchasin
g
more than $1.1 billion. The offer
was funded b
y
a $1.4 billion cash distribution received from CareFusion immediatel
y
prior to the Spin-
Off
. In connect
i
on w
i
t
h
t
h
e
d
e
b
t ten
d
er, we
i
ncurre
d
a pre-tax
l
oss
f
or t
h
e ear
ly
ret
i
rement o
fd
e
b
to
f
a
pproximatel
y
$40 million, which included an earl
y
tender premium of $66 million, the write-off of $
5
m
illion of unamortized debt issuance costs, and an offsettin
g
$32 million fair value ad
j
ustment to th
e
d
e
b
tre
l
ate
d
to prev
i
ous
ly
term
i
nate
di
nterest rate swaps.
•
G
ain on sale of CareFusion common stock
:
We reco
g
nized $45 million of income related to realized
g
a
i
ns
f
rom t
h
esa
l
eo
f
s
h
ares o
f
CareFus
i
on common stoc
k.
F
isca
l
2009 Compare
d
to Fisca
l
2008
•
O
ther (income)/expense, net
:
Ot
h
er (
i
ncome)/expense, net was un
f
avora
bl
e compare
d
to
fi
sca
l
200
8
p
r
i
mar
ily d
ue to t
h
e
i
mpact o
ff
ore
ig
n exc
h
an
g
e
.
•
I
nterest expense, net: T
h
e
d
ecrease
i
n
i
nterest expense, net was
d
ue to t
h
e
f
avora
bl
e
i
mpact o
fi
nterest
r
ate swaps on
fi
xe
d
rate
d
e
b
t.
2
7