Cardinal Health 2010 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2010 Cardinal Health annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

CARDINAL HEALTH, INC. AND SUBSIDIARIE
S
NO
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
1
.BA
S
I
SO
F PRE
S
ENTATI
O
N AND
SU
MMARY
O
F
S
I
G
NIFI
C
ANT A
CCOU
NTIN
G
P
O
LI
C
IE
S
C
ardinal Health, Inc., an Ohio corporation formed in 1979, is a global healthcare solutions company
p
roviding products and services that help hospitals, physician offices, pharmacies and other healthcare providers
r
educe costs, improve safety and productivity, and deliver better care to patients. References to “we”, “our” and
similar
p
ronouns in these consolidated financial statements shall be deemed to be references to Cardinal Health
,
Inc. and its majority-owned subsidiaries unless the context otherwise requires
.
O
ur fiscal year ends on June 30. References to fiscal 2010, 2009 and 2008 in these consolidated financia
l
statements shall be deemed to be references to the fiscal years ended June 30, 2010, 2009 and 2008, respectively
.
Spin-O
ff
o
f
CareFusion Corporatio
n
. Effective August 31, 2009, we completed the distribution to ou
r
shareholders of 81% of the then outstanding common stock of CareFusion Corporation (“CareFusion”) an
d
r
etained the remaining 41.4 million shares of CareFusion common stock (the “Spin-Off”). Under the
r
equirements of the Private Letter Ruling obtained from the Internal Revenue Service, we are required to dispose
o
f the retained shares of CareFusion common stock within five years of the Spin-Off. During fiscal 2010, we
dis
p
osed of 10.9 million shares of CareFusion common stock. Refer to Note 7 for additional information
r
egarding our investment in CareFusion. While we are a party to a separation agreement and various other
agreements relating to the separation, including a transition services agreement, a tax matters agreement, an
employee matters agreement, intellectual property agreements and other commercial agreements, we have
determined that we have no significant continuing involvement in the operations of CareFusion. Accordingly, the
net assets of CareFusion are presented separately in these consolidated financial statements as assets fro
m
businesses held for sale and discontinued operations and the operating results of CareFusion are presented within
discontinued operations for all periods presented through the date of the Spin-Off.
F
or fiscal 2009, we had three reportable segments—Healthcare Supply Chain Services, Clinical and Medica
l
Products and All Other. Effective July 1, 2009, we changed our reportable segments to: Pharmaceutical, Medical
and CareFusion. The Pharmaceutical segment encompasses the businesses previously within the Healthcare
Supply Chain Services segment that distributed pharmaceutical, radiopharmaceutical and over-the-counte
r
healthcare products as well as the businesses previously within the All Other segment. The Medical segmen
t
encompasses the remaining businesses within the Healthcare Supply Chain Services segment as well as certain
surgical and exam gloves, surgical drapes and apparel and fluid management businesses previously within th
e
Clinical and Medical Products segment. The CareFusion segment encompasses the businesses previously within
the Clinical and Medical Products segment excluding the above-referenced surgical and exam gloves, surgica
l
drapes and apparel and fluid management businesses and includes all businesses included in the Spin-Off
.
I
n connection with the Spin-Off, we reorganized our reportable segments into two segments: Pharmaceutical
and Medical. See Note 16 for information about these segments.
O
ur Relationshi
p
with CareFusio
n
. On July 22, 2009, we entered into a separation agreement with
CareFusion to effect the S
p
in-Off and
p
rovide a framework for our relationshi
p
with CareFusion after the S
p
in
-
Off. In addition, on August 31, 2009, we entered into a transition services agreement, a tax matters agreement, a
n
employee matters agreement, intellectual property agreements and certain other commercial agreements with
CareFusion. These agreements, including the separation agreement, between CareFusion and us provide fo
r
allocation of assets, employees, liabilities and obligations (including investments, property and employee
benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Spin-Off and govern
certain relationshi
p
s between CareFusion and us after the S
p
in-Off.
44