Cardinal Health 2010 Annual Report Download - page 82

Ot
h
e
r
During the fourth quarter of fiscal 2007, we sold our businesses within the former Pharmaceutica
l
T
echnologies and Services segment, other than certain generic-focused businesses (the “PTS Business”). Se
e
Note 7 of the “Notes to Consolidated Financial Statements” from the Annual Re
p
ort on Form 10-K for the fiscal
y
ear ended June 30, 2009 (the “2009 Form 10-K”) for information regarding the sale of the PTS Business. W
e
incurred minor amounts of activity related to the PTS Business during fiscal 2009 as a result of changes in
certain estimates made at the time of the sale, activity under a transition services agreement and othe
r
adjustments
.
During the fourth quarter of fiscal 2009, we committed to plans to sell the United Kingdom-base
d
Martindale injectable manufacturing business (“Martindale”) within our Pharmaceutical segment, and Martindal
e
met the criteria for classification as discontinued operations in the financial statements. During the fourth quarter
o
f fiscal 2010, we completed the sale of Martindale resulting in a pre-tax gain of
$
36.3 million. Accordingly, th
e
net assets of Martindale are presented separately as discontinued operations and the operating results o
f
Martindale are presented within discontinued operations for all periods presented through the date of sale
.
During the fourth quarter of fiscal 2009, we also committed to plans to sell SpecialtyScripts within ou
r
Pharmaceutical segment, and SpecialtyScripts met the criteria for classification as held for sale in our financia
l
statements. During the third quarter of fiscal 2010, we completed the sale of SpecialtyScripts. Accordingly, th
e
net assets of this business are presented separately as assets held for sale on our consolidated balance sheet
through the date of sale. The results of SpecialtyScripts are reported within earnings from continuing operation
s
o
n our consolidated statements of earnings through the date of sale because it did not satisfy the criteria for
classification as discontinued operations. Additionally, the net assets held for sale of SpecialtyScripts wer
e
r
ecorded at the net expected fair value less costs to sell, as this amount was lower than its net carrying value
.
The results of the PTS Business and Martindale included in discontinued o
p
erations for fiscal 2010, 2009
and 2008 are summarized as follows
:
F
i
scal Year Ende
d
June
30,
(
in millions
)
2010
2009
2008
R
e
v
enue
..............................................................
$
99.1 $100.5 $115.
9
Earn
i
n
g
s
b
e
f
ore
i
ncome taxes
.............................................
4
7.
0
17.4 44.
3
I
ncome tax expense
.....................................................
(6
.8) (8.
6
) (39.7
)
Earn
i
n
g
s
f
rom
di
scont
i
nue
d
operat
i
ons
......................................
40
.2
8
.
8
4.
6
T
h
ere were no assets an
dli
a
bili
t
i
es
f
rom
b
us
i
nesses
h
e
ld f
or sa
l
e
f
or PTS Bus
i
ness, Mart
i
n
d
a
l
eo
r
Spec
i
a
l
t
y
Scr
i
pts at June 30, 2010. At June 30, 2009, t
h
ema
j
or components o
f
assets an
dli
a
bili
t
i
es
f
rom
b
us
i
nesses
h
e
ld f
or sa
l
ere
l
ate
d
to t
h
e PTS Bus
i
ness, Mart
i
n
d
a
l
ean
d
Spec
i
a
l
t
y
Scr
i
pts were as
f
o
ll
ows
:
(
in millions)
J
une
30,
2
009
C
urrent asset
s
........................................................................
$
7
4
.
2
Property an
d
equ
i
pmen
t
...............................................................
.
19
.
3
Ot
h
er asset
s
........................................................................
.
81
.
2
Total asset
s
......................................................................
$
174.
7
C
urrent liabilities ..................................................................... $
16
.
5
L
on
g
-term debt and other
.
............................................................. 9.8
T
ota
lli
ab
ili
t
i
es
...................................................................
$
2
6.
3
56