Cardinal Health 2011 Annual Report Download - page 79

$
1.9 million of liabilities. The consolidated financial statements include the results of o
p
erations from thi
s
b
us
i
ness com
bi
nat
i
on
f
rom t
h
e
d
ate o
f
t
h
e acqu
i
s
i
t
i
on
.
Fiscal 200
9
D
ur
i
ng
fi
sca
l
2009, we comp
l
ete
d
an acqu
i
s
i
t
i
on t
h
at
i
n
di
v
id
ua
ll
y was not s
i
gn
ifi
cant. T
h
e aggregate
p
urchase
p
rice of this ac
q
uisition, which was
p
aid in cash, was $128.6 million. Assumed liabilities of thi
s
a
c
q
uired business were
$
102.1 million. The consolidated financial statements include the results of o
p
erations
f
rom t
hi
s
b
us
i
ness com
bi
nat
i
on
f
rom t
h
e
d
ate o
f
acqu
i
s
i
t
i
on.
Acquisition-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
s
t
primaril
y
of transaction costs, inte
g
ration costs and chan
g
es in the fair value of contin
g
ent pa
y
ments. Transactio
n
costs are incurred during the initial evaluation of a potential targeted acquisition and primarily relate to costs t
o
a
na
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
ld
ue
dili
gence act
i
v
i
t
i
es. Integrat
i
o
n
costs relate to activities needed to combine the o
p
erations of an ac
q
uired enter
p
rise into our o
p
erations. As
d
escribed above, we record changes in the fair value of contingent payments relating to acquisitions as income or
expense
i
n our acqu
i
s
i
t
i
on-re
l
ate
d
costs.
3. RE
S
TR
UC
T
U
RIN
G
AND EMPL
O
YEE
S
EVERAN
CE
We cons
id
er restructur
i
ng act
i
v
i
t
i
es as programs w
h
ere
b
ywe
f
un
d
amenta
ll
yc
h
ange our operat
i
ons suc
h
a
s
closin
g
facilities, movin
g
manufacturin
g
of a product to another location or outsourcin
g
the production of
a
product. Restructuring activities may also involve substantial realignment of the management structure of
a
b
us
i
ness un
i
t
i
n response to c
h
ang
i
ng mar
k
et con
di
t
i
ons. A
li
a
bili
ty
f
or a cost assoc
i
ate
d
w
i
t
h
an ex
i
tor
di
sposa
l
a
ctivit
y
is reco
g
nized and measured initiall
y
at its fair value in the period in which it is incurred except for
a
l
iability for a one-time termination benefit, which is recognized over its future service period
.
T
he following table summarizes activity related to our restructuring and employee severance costs during
fi
sca
l
2011
,
2010 an
d
2009:
F
i
scal Year Ende
d
J
une
30,
(
in millions
)
2011
2010
2009
Emplo
y
ee-related costs (1)
.
................................................ $ 6.9
$
32.9 $ 33.
8
Fac
ili
ty ex
i
tan
d
ot
h
er costs (2) .............................................
8
.
6
5
7.8 70.
9
T
otal restructuring and employee severance
.
..................................
$
15.5
$
90.7
$
104.7
(1) Emplo
y
ee-related costs primaril
y
consist of one-time termination benefits provided to emplo
y
ees who hav
e
b
een
i
nvo
l
untar
il
y term
i
nate
d
an
dd
up
li
cate payro
ll
costs
d
ur
i
ng trans
i
t
i
on per
i
o
d
s
.
(2) 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 re
l
ocat
i
on costs, pro
j
ec
t
c
onsultin
g
fees, and costs associated with restructurin
g
our deliver
y
of information technolo
gy
infrastructur
e
s
er
vi
ces.
R
estructur
i
ng an
d
emp
l
oyee severance
f
or
fi
sca
l
2011, 2010 an
d
2009
i
nc
l
u
d
e
d
costs re
l
ate
d
to t
h
e
f
o
ll
ow
i
n
g
s
ig
n
ifi
cant pro
j
ects:
F
iscal Year Ende
d
June
30,
(
in millions
)
2
0
1
1
2
0
1
0
2009
Sp
i
n-O
ff
(1
)
.
.............................................................
$
6.7
$
64.5
$
73.
8
Se
g
ment Rea
lig
nment (2) ....................................................
0
.
02
.
0
1
5
.7
(1) We incurred restructurin
g
expenses related to the Spin-Off consistin
g
of emplo
y
ee-related costs, share
-
based com
p
ensation, costs to evaluate and execute the transaction, costs to se
p
arate certain functions an
d
5
3