Cardinal Health 2010 Annual Report Download - page 81

ability to influence the operating or financial policies of CareFusion and accordingly does not constitute
significant continuing involvement. We are required under the separation agreement to vote all of our CareFusio
n
shares in proportion to the votes cast by CareFusion’s other shareholders. Furthermore, while we are a party to
a
separation agreement and various other agreements relating to the separation, including a transition service
s
agreement, a tax matters agreement, an employee matters agreement, intellectual property agreements and certain
o
ther commercial agreements, we have determined that the continuing cash flows generated by these agreements
,
which are expected to be eliminated within five years of the Spin-Off, and our investment in CareFusio
n
common stock, do not constitute significant continuing involvement in the operations of CareFusion
.
Accordingly, the net assets of CareFusion are presented separately as discontinued operations and the operating
r
esults are presented within discontinued operations for all periods presented through the date of the Spin-Off
.
The results of CareFusion included in discontinued o
p
erations for fiscal 2010, 2009 and 2008 ar
e
summarized as follo
w
s:
F
i
sca
lY
ea
rEn
ded
J
une 30
,
(
in millions
)
2010
(
1
)
2
009
2
008
R
evenue
..........................................................
$
592.1
$
3,520.9
$
3,567.3
Earnings before income taxes
.........................................
4
3.7
5
07.2 627.0
Income tax ex
p
ense
.................................................
(
28.7
)(
122.6
)(
178.2
)
Earnings from discontinued operations
..................................
15
.0 384.6 448.8
(1) Re
fl
ects t
h
e resu
l
ts o
f
CareFus
i
on t
h
rou
gh
Au
g
ust 31, 2009, t
h
ee
ff
ect
i
ve
d
ate o
f
t
h
eSp
i
n-O
ff
.
I
nterest expense was a
ll
ocate
d
to
hi
stor
i
ca
l
per
i
o
d
s cons
id
er
i
ng t
h
e
d
e
b
t
i
ssue
db
y CareFus
i
on
i
n connect
i
o
n
w
i
t
h
t
h
eSp
i
n-O
ff
an
d
our overa
ll d
e
b
t
b
a
l
ance. In a
ddi
t
i
on, a port
i
on o
f
t
h
e corporate costs prev
i
ous
ly
a
ll
ocate
d
to CareFus
i
on
h
ave
b
een rec
l
ass
ifi
e
d
to t
h
e rema
i
n
i
n
g
two se
g
ments
.
The following table summarizes the interest expense allocated to discontinued operations for CareFusion
during fiscal 2010, 2009 and 2008
:
Fi
scal Year Ended
J
une 30
,
(
in millions) 201
0
200
9
2008
Interest expense a
ll
ocate
d
to CareFus
i
o
n
.
................................
$
12.8
$
75.2
$
84.
1
There were no assets and liabilities from businesses held for sale for CareFusion at June 30, 2010. At
June 30, 2009, the major components of assets and liabilities from businesses held for sale for CareFusion wer
e
as follows:
(in millions)
June
30,
2
009
C
urrent asset
s
.............................................................
$
1
,
832.
0
Property an
d
equ
i
pment
.....................................................
408.
5
Ot
h
er asset
s
...............................................................
4,
77
4
.
2
T
ota
l
assets
...........................................................
$7,014.
7
C
urrent
li
a
bili
t
i
e
s
........................................................... $ 4
6
9.
2
L
on
g
-term
d
e
b
tan
d
ot
h
er
....................................................
8
7
5
.
4
Tota
lli
ab
ili
t
i
es
........................................................
$
1,344.6
Cash flows from discontinued operations are presented separatel
y
on the consolidated statements of cas
h
f
lo
w
s.
55