Cardinal Health 2010 Annual Report Download - page 58

(2) Represents matur
i
t
i
es o
f
our cap
i
ta
ll
ease o
blig
at
i
ons
i
nc
l
u
d
e
d
w
i
t
hi
n
l
on
g
-term
d
e
b
t on our conso
lid
ate
d
b
a
l
ance s
h
eet an
d
t
h
ere
l
ate
d
est
i
mate
df
uture
i
nterest pa
y
ments
.
(3) Represents cash outflows by period for certain of our long-term liabilities in which cash outflows could be
reasona
bly
est
i
mate
d
. Certa
i
n
l
on
g
-term
li
a
bili
t
i
es, suc
h
as unreco
g
n
i
ze
d
tax
b
ene
fi
ts an
dd
e
f
erre
d
taxes
,
h
ave
b
een exc
l
u
d
e
df
rom t
h
eta
bl
ea
b
ove
b
ecause o
f
t
h
e
i
n
h
erent uncerta
i
nt
y
o
f
t
h
eun
d
er
lyi
n
g
tax pos
i
t
i
on
s
or because of the inability to reasonably estimate the timing of any cash outflows. See Note 9 of “Notes to
C
onso
lid
ate
d
F
i
nanc
i
a
lS
tatements”
f
or
f
urt
h
er
di
scuss
i
on o
fi
ncome taxes
.
(4) Represents m
i
n
i
mum renta
l
pa
y
ments an
d
t
h
ere
l
ate
d
est
i
mate
df
uture
i
nterest pa
y
ments
f
or operat
i
n
gl
eases
h
aving initial or remaining non-cancelable lease terms as described in Note 10 of “Notes to Consolidated
Fi
nanc
i
a
lS
tatements.”
(5) Purchase obli
g
ations are defined as an a
g
reement to purchase
g
oods or services that is enforceable and
legally binding and specifying all significant terms, including the following: fixed or minimum quantities t
o
b
e purc
h
ase
d
;
fi
xe
d
,m
i
n
i
mum or var
i
a
bl
epr
i
ce prov
i
s
i
ons; an
d
approx
i
mate t
i
m
i
n
g
o
f
t
h
e transact
i
on. T
h
e
purc
h
ase o
blig
at
i
on amounts
di
sc
l
ose
d
a
b
ove represent est
i
mates o
f
t
h
em
i
n
i
mum
f
or w
hi
c
h
we ar
e
obligated and the time period in which cash outflows will occur. Purchase orders and authorizations to
purc
h
ase t
h
at
i
nvo
l
ve no
fi
rm comm
i
tment
f
rom e
i
t
h
er part
y
are exc
l
u
d
e
df
rom t
h
ea
b
ove ta
bl
e. In a
ddi
t
i
on
,
contracts t
h
at can
b
eun
il
atera
lly
cance
l
e
d
w
i
t
h
no term
i
nat
i
on
f
ee or w
i
t
h
proper not
i
ce are exc
l
u
d
e
df
rom
our total purchase obligations except for the amount of the termination fee or the minimum amount of good
s
t
h
at must
b
e purc
h
ase
dd
ur
i
n
g
t
h
e requ
i
s
i
te not
i
ce per
i
o
d
.
O
ff-Balance
S
heet Arrangements
S
ee “L
i
qu
idi
ty an
d
Cap
i
ta
l
Resources—Cap
i
ta
l
Resources” a
b
ove an
d
Note 18
i
n “Notes to Conso
lid
ate
d
F
i
nanc
i
a
l
Statements,” w
hi
c
hi
s
i
ncorporate
dh
ere
i
n
b
yre
f
erence,
f
or a
di
scuss
i
on o
f
o
ff
-
b
a
l
ance s
h
ee
t
arrangements.
R
ecent Financial Accounting Standard
s
S
ee Note 1 in “Notes to Consolidated Financial Statements” for a discussion of recent financial accountin
g
standards
.
Critical Accountin
g
Policies and
S
ensitive Accountin
g
Estimates
Critical accountin
g
policies are those accountin
g
policies that (i) can have a si
g
nificant impact on the
p
resentation of our financial condition and results of operations for continuin
g
operations and (ii) require use o
f
complex and sub
j
ective estimates based upon past experience and mana
g
ement’s
j
ud
g
ment. Other companie
s
appl
y
in
g
reasonable
j
ud
g
ment to the same facts and circumstances could develop different estimates. Becaus
e
o
ur estimates are inherentl
y
uncertain, actual results ma
y
differ. In this section, we describe the policies applie
d
in preparin
g
our consolidated financial statements that mana
g
ement believes are the most dependent on estimate
s
and assumptions. For additional accountin
g
policies, see Note 1 of “Notes to Consolidated Financial Statements.
”
A
llowance for Doubtful Account
s
Tra
d
e rece
i
va
bl
es—amounts owe
d
to us t
h
roug
h
our operat
i
ng act
i
v
i
t
i
es—are presente
d
net o
f
an a
ll
owanc
e
f
or
d
ou
b
t
f
u
l
accounts. We a
l
so prov
id
e
fi
nanc
i
ng to var
i
ous customers. Suc
hfi
nanc
i
ng arrangements range
f
rom
90
d
ays to 10 years at
i
nterest rates t
h
at genera
ll
y are su
bj
ect to
fl
uctuat
i
on. F
i
nanc
i
ngs may
b
eco
ll
atera
li
ze
d,
guarantee
db
yt
hi
r
d
part
i
es or unsecure
d
.F
i
nance notes an
d
accrue
di
nterest rece
i
va
bl
es are recor
d
e
d
net o
f
an
a
ll
owance
f
or
d
ou
b
t
f
u
l
accounts an
d
are
i
nc
l
u
d
e
di
not
h
er assets. We must use
j
u
d
gment w
h
en
d
ec
idi
ng w
h
et
h
e
r
to exten
d
cre
di
tan
d
w
h
en ca
l
cu
l
at
i
ng t
h
e requ
i
re
d
a
ll
owance
f
or
d
ou
b
t
f
u
l
accounts.
T
h
ea
ll
owance
f
or
d
ou
b
t
f
u
l
accounts
i
nc
l
u
d
es port
f
o
li
oan
d
spec
ifi
c reserves. We
d
eterm
i
ne t
h
e appropr
i
ate
a
ll
owance
by
rev
i
ew
i
n
g
accounts rece
i
va
bl
ea
gi
n
g
,
i
n
d
ustr
y
tren
d
s, customer
fi
nanc
i
a
l
stren
g
t
h
an
d
cre
dit
stan
di
n
g
,
hi
stor
i
ca
l
wr
i
te-o
ff
tren
d
san
d
pa
y
ment
hi
stor
y
.Wea
l
so re
g
u
l
ar
ly
eva
l
uate
h
ow c
h
an
g
es
i
n econom
i
c
con
di
t
i
ons ma
y
a
ff
ect cre
di
tr
i
s
k
s.
32