Cardinal Health 2010 Annual Report Download - page 79

statements include the results of o
p
erations from each of these business combinations from the date of
acquisition. Had the transactions occurred at the beginning of fiscal 2007, consolidated results of operations
would not have differed materially from reported results. In connection with the Spin-Off, some of thes
e
businesses have also been reclassified to discontinued operations for all periods through the date of the Spin-Off
.
A
cquisition Related Cost
s
We c
l
ass
if
y costs
i
ncurre
di
n connect
i
on w
i
t
h
acqu
i
s
i
t
i
ons as acqu
i
s
i
t
i
on re
l
ate
d
costs. T
h
ese costs cons
i
st
p
r
i
mar
il
yo
f
transact
i
on costs,
i
ntegrat
i
on costs an
d
c
h
anges
i
nt
h
e
f
a
i
rva
l
ue o
f
cont
i
ngent payments (earn-
o
uts). Acqu
i
s
i
t
i
on transact
i
on costs are
i
ncurre
dd
ur
i
ng t
h
e
i
n
i
t
i
a
l
eva
l
uat
i
on o
f
a potent
i
a
l
targete
d
acqu
i
s
i
t
i
on
an
d
pr
i
mar
il
yre
l
ate to costs to ana
l
yze, negot
i
ate an
d
consummate t
h
e transact
i
on as we
ll
as
fi
nanc
i
a
l
an
dl
ega
l
d
ue
dili
gence act
i
v
i
t
i
es. Integrat
i
on act
i
v
i
t
i
es are costs
i
ncurre
d
to com
bi
ne t
h
e operat
i
ons o
f
an acqu
i
re
d
enterpr
i
se
i
nto our operat
i
ons.
3. RE
S
TRUCTURING AND EMPLOYEE
S
EVERANCE
Restructuring Po
l
ic
y
We cons
id
er restructur
i
n
g
act
i
v
i
t
i
es as pro
g
rams w
h
ere
by
we
f
un
d
amenta
lly
c
h
an
g
e our operat
i
ons suc
h
as
c
l
os
i
n
gf
ac
ili
t
i
es, mov
i
n
g
manu
f
actur
i
n
g
o
f
a pro
d
uct to anot
h
er
l
ocat
i
on or outsourc
i
n
g
t
h
e pro
d
uct
i
on o
f
a
p
ro
d
uct. Restructur
i
n
g
act
i
v
i
t
i
es ma
y
a
l
so
i
nvo
l
ve su
b
stant
i
a
l
re-a
lig
nment o
f
t
h
e mana
g
ement structure o
fa
b
us
i
ness un
i
t
i
n response to c
h
an
gi
n
g
mar
k
et con
di
t
i
ons. A
li
a
bili
t
yf
or a cost assoc
i
ate
d
w
i
t
h
an ex
i
tor
di
sposa
l
act
i
v
i
t
yi
s reco
g
n
i
ze
d
an
d
measure
di
n
i
t
i
a
lly
at
i
ts
f
a
i
rva
l
ue
i
nt
h
e per
i
o
di
nw
hi
c
hi
t
i
s
i
ncurre
d
except
f
or a
li
a
bili
t
yf
or a one-t
i
me term
i
nat
i
on
b
ene
fi
t, w
hi
c
hi
s reco
g
n
i
ze
d
over
i
ts
f
uture serv
i
ce per
i
o
d
.
Restructuring an
d
Em
pl
o
y
ee Severanc
e
The following table summarizes activity related to our restructuring and employee severance costs during
f
iscal 2010, 2009 and 2008
:
F
i
scal Year Ende
d
June 30,
(
in millions
)
201
0
200
9
2
008
Emp
l
o
y
ee re
l
ate
d
costs (1)
.................................................
$
32.9
$
33.8
$
30.0
Fac
ili
t
y
ex
i
tan
d
ot
h
er costs (2
)
.............................................
57.8 70.9 25.3
T
ota
l
restructur
i
n
g
an
d
emp
l
o
y
ee severance
...................................
$90.7 $104.7 $55.3
(1) Emp
l
o
y
ee-Re
l
ate
d
Costs.
Th
ese costs pr
i
mar
ily
cons
i
st o
f
one-t
i
me term
i
nat
i
on
b
ene
fi
ts prov
id
e
d
t
o
emp
l
o
y
ees w
h
o
h
ave
b
een
i
nvo
l
untar
ily
term
i
nate
d
an
dd
up
li
cate pa
y
ro
ll
costs
d
ur
i
n
g
trans
i
t
i
on per
i
o
d
s.
(2) Faci
l
it
y
Exit an
d
Ot
h
er Costs. Fac
ili
t
y
ex
i
tan
d
ot
h
er costs cons
i
st o
f
acce
l
erate
dd
eprec
i
at
i
on, equ
i
pment
relocation costs, pro
j
ect consultin
g
fees and costs associated with restructurin
g
our deliver
y
of informatio
n
technolo
gy
infrastructure services.
Restructur
i
ng an
d
emp
l
oyee severance
f
or
fi
sca
l
2010, 2009 an
d
2008
i
nc
l
u
d
e
d
costs re
l
ate
d
to t
he
f
o
ll
ow
i
ng s
i
gn
ifi
cant pro
j
ects:
Fi
scal Year Ended
J
une
30,
(
in millions
)
2010
2009
2008
Sp
i
n-O
ff
(1)
.............................................................
$64.5 $73.8 $ 0.0
Se
g
ment Rea
lig
nment (2)
.
.................................................. 2.
0
1
5
.7
0
.2
Me
di
ca
l
Hea
d
quarters Re
l
ocat
i
on (3
)
.........................................
0
.1 1.
0
28
.
3
(1) Dur
i
n
gfi
sca
l
2009 an
dfi
sca
l
2010, we
i
ncurre
d
restructur
i
n
g
expenses re
l
ate
d
to t
h
eSp
i
n-O
ff
cons
i
st
i
n
g
o
f
emp
l
o
y
ee-re
l
ate
d
costs, s
h
are-
b
ase
d
compensat
i
on, costs to eva
l
uate an
d
execute t
h
e transact
i
on, costs t
o
5
3