Cardinal Health 2010 Annual Report Download - page 57

C
a
p
ita
l
Ex
p
en
d
iture
s
Capital expenditures durin
g
fiscal 2010, 2009 and 2008 of $260 million, $421 million and $189 million
,
r
espect
i
ve
ly
,pr
i
mar
ily
re
l
ate
d
to
i
n
f
ormat
i
on tec
h
no
l
o
gy
pro
j
ects an
di
nvestments to
i
mprove t
h
ee
ffi
c
i
enc
y
o
f
o
ur distribution facilities. Fiscal 2009 capital expenditures included $151 million to repurchase assets under a
n
o
perat
i
n
gl
ease arran
g
ement
.
We expect cap
i
ta
l
expen
di
tures
i
n
fi
sca
l
2011 to
b
e
g
enera
lly i
n
li
ne w
i
t
h
t
h
e
l
eve
l
o
f
spen
di
n
gi
n
fi
sca
l
2010. We ant
i
c
i
pate t
h
at we w
ill b
ea
bl
eto
f
un
d
t
h
ese expen
di
tures t
h
rou
gh
cas
h
prov
id
e
dby
operat
i
n
g
act
i
v
i
t
i
es.
F
i
sca
l
2011 cap
i
ta
l
expen
di
tures w
ill b
e
l
ar
g
e
ly f
ocuse
d
on
i
n
f
ormat
i
on tec
h
no
l
o
gy
pro
j
ects
.
D
i
v
i
de
n
ds
Durin
g
fiscal 2010, we paid quarterl
y
dividends of $0.175 per share, or $0.70 per share on an annualized basis.
On Ma
y
5, 2010, our board of directors approved an 11 percent increase in the quarterl
y
dividend to $0.195 pe
r
share, or $0.78 per share on an annualized basis, pa
y
able on Jul
y
15, 2010 to shareholders of record on Jul
y
1, 2010.
On Au
g
ust 4, 2010, our board of directors approved our 104th consecutive re
g
ular quarterl
y
dividend.
S
hare Re
p
urchase
s
Durin
g
fiscal 2010, we repurchased $250 million of our Common Shares, of which $20 million cash settle
d
in Jul
y
2010. Durin
g
Jul
y
and Au
g
ust 2010, we repurchased an additional $250 million of our Common Shares
w
hi
c
h
comp
l
etes s
h
are repurc
h
ases un
d
er our current Boar
d
aut
h
or
i
zat
i
on. We
f
un
d
e
d
t
h
e repurc
h
ases t
h
rou
gh
a
v
a
il
a
bl
e cas
h
.
Dur
i
n
gfi
sca
l
2009, we
did
not repurc
h
ase an
y
o
f
our Common S
h
ares. Dur
i
n
gfi
sca
l
2008, we repurc
h
ase
d
approximatel
y
$1.1 billion of our Common Shares. A portion of the after-tax net proceeds of approximatel
y
$3.
1
billi
on
f
rom t
h
esa
l
eo
f
our PTS Bus
i
ness were use
d
to repurc
h
ase s
h
ares
d
ur
i
n
g
t
h
e
fi
rst quarter o
ffi
sca
l
2008
.
Interest Rate and Currenc
y
Risk Managemen
t
We use
f
ore
ig
n currenc
yf
orwar
d
contracts,
i
nterest rate swaps an
d
commo
di
t
y
swaps to mana
g
e our
exposure to cas
hfl
ow var
i
a
bili
t
y
.Wea
l
so use
f
ore
ig
n currenc
yf
orwar
d
contracts to protect t
h
eva
l
ue o
f
our
ex
i
st
i
n
gf
ore
ig
n currenc
y
assets an
dli
a
bili
t
i
es an
di
nterest rate swaps to protect t
h
eva
l
ue o
f
our
d
e
b
t. See
Item 7A
b
e
l
o
w
as
w
e
ll
as Notes 1 an
d
12 o
f
“Notes to
C
onso
lid
ate
d
F
i
nanc
i
a
lS
tatements”
f
or
i
n
f
ormat
i
o
n
r
e
g
ar
di
n
g
t
h
e use o
ffi
nanc
i
a
li
nstruments an
dd
er
i
vat
i
ves as we
ll
as
f
ore
ig
n currenc
y
,
i
nterest rate an
d
commo
di
t
y
exposures.
C
ontractual
O
bl
i
gat
i
on
s
A
so
f
June 30, 2010, our contractua
l
o
blig
at
i
ons,
i
nc
l
u
di
n
g
est
i
mate
d
pa
y
ments
d
ue
by
per
i
o
d
, are as
f
o
ll
ows:
(
in millions
)
2011
2012
-
2013
2014
-
201
5 Therea
f
ter
T
ota
l
On Ba
l
ance S
h
eet
:
Long-term debt (1)
................................
$
232.4
$
517.5
$
530.9
$
843.1
$
2,123.
9
Interest on lon
g
-term debt
..........................
103
.
0
1
85
.7 1
60
.4 1
83
.4
63
2.
5
Cap
i
ta
ll
ease o
bli
gat
i
ons (2
)
........................ 1.6 3.3 1.2 — 6.1
Other long-term liabilities (3)
.
......................
9
.
20
.7
1
.
1—
11
.
0
U
nsettled share re
p
urchases
.........................
19.8 — — — 19.8
O
ff
-Ba
l
ance S
h
eet
:
Operating leases (4)
...............................
65
.8
9
3.
5
3
5
.
9
26.2 221.4
Purchase obli
g
ations (5)
...........................
1
72.
58
2.2 1.2
0
.4 2
56
.
3
T
otal contractual obli
g
ations
........................
$
604.3 $882.9 $730.7 $1,053.1 $3,271.0
(1) Represents maturities of our long-term debt obligations excluding capital lease obligations described below
.
S
ee Note
8
in “Notes to
C
onsolidated Financial
S
tatements” for further information.
31