Cardinal Health 2011 Annual Report Download - page 56

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H
eld-to-Maturit
y
Investments
We hold high quality investment grade held-to-maturity fixed income debt securities with an amortized cos
t
basis of
$
142 million as of June 30, 2011. These investments vary in maturity date, ranging from three months to
sixteen months, and pa
y
interest semi-annuall
y
.
L
on
g
-term Obli
g
ation
s
A
s of June 30, 2011, we had total long-term obligations of
$
2.5 billion compared to
$
2.1 billion at June 30
,
2010. In December 2010, we sold
$
500 million of fixed rate notes due 2020 in a registered offering. The 202
0
Notes mature on December 1
5
, 2020 and accrue interest at 4.62
5
% per
y
ear pa
y
able semi-annuall
y
. We used the
proceeds for general corporate purposes and for the repayment of
$
220 million of our 6.75% Notes due
February 15, 2011
.
Capital Expenditure
s
Capital expenditures durin
g
fiscal 2011, 2010 and 2009 were $291 million, $260 million and $421 million,
respectively, primarily related to information technology projects and investments to improve the efficiency o
f
o
ur
di
str
ib
ut
i
on
f
ac
ili
t
i
es
.
We expect capital expenditures in fiscal 2012 to be generally in line with the level of spending in fiscal
2011. We ant
i
c
i
pate t
h
at we w
ill b
ea
bl
eto
f
un
d
t
h
ese expen
di
tures t
h
roug
h
cas
h
prov
id
e
db
y operat
i
ng act
i
v
i
t
i
es
.
Fiscal 2012 capital expenditures will be lar
g
el
y
focused on information technolo
gy
pro
j
ects
.
D
ivi
d
en
ds
D
uring fiscal 2011, we paid quarterly dividends of
$
0.195 per share, or
$
0.78 per share on an annualized
b
as
i
s, an
i
ncrease o
f
11 percent
f
rom
fi
sca
l
2010. On May 4, 2011, our
b
oar
d
o
fdi
rectors approve
d
a 10 percent
increase in our quarterl
y
dividend to $0.215 per share, or $0.86 per share on an annualized basis, pa
y
able o
n
J
uly 1
5
, 2011 to shareholders of record on July 1, 2011
.
O
nAu
g
ust 3, 2011, our board of directors approved our 108th consecutive re
g
ular quarterl
y
dividend
.
Sh
are Re
p
urc
h
ase
s
D
uring fiscal 2011, we repurchased
$
250 million of our Common Shares. During fiscal 2010, we
repurchased
$
250 million of our Common Shares, of which
$
20 million cash settled in July 2010. Subsequent t
o
J
une 30, 2011 and throu
g
hAu
g
ust 12, 2011, we repurchased approximatel
y
$300 million of our Common Shares
.
We funded the repurchases with available cash. We have
$
450 million remaining under our current Boar
d
repurc
h
ase aut
h
or
i
zat
i
on t
h
roug
h
Novem
b
er 2013.
Interest Rate and Currency Risk Management
We use forei
g
n currenc
y
forward contracts, interest rate swaps and commodit
y
swaps to mana
g
e our
exposure to cash flow variability. We also use foreign currency forward contracts to protect the value of ou
r
ex
i
st
i
ng
f
ore
i
gn currency assets an
dli
a
bili
t
i
es an
di
nterest rate swaps to protect t
h
eva
l
ue o
f
our
d
e
b
t. See
I
tem 7A below as well as Notes 1 and 12 of “Notes to Consolidated Financial Statements” for informatio
n
regarding the use of financial instruments and derivatives as well as foreign currency, interest rate an
d
commo
di
ty exposures
.
30