Cardinal Health 2011 Annual Report Download - page 80

i
nformation technology systems, and other one-time transaction related costs. See Note 17 for furthe
r
i
n
f
ormat
i
on regar
di
ng s
h
are-
b
ase
d
compensat
i
on
i
ncurre
di
n connect
i
on w
i
t
h
t
h
eSp
i
n-O
ff
.A
l
so
i
nc
l
u
d
e
d
within these costs is $18.6 million of costs related to the retirement of our former Chairman and Chie
f
Executive Officer u
p
on com
p
letion of the S
p
in-Off.
(2) Dur
i
ng
fi
sca
l
2009, we conso
lid
ate
d
our
b
us
i
nesses
i
nto two pr
i
mary operat
i
ng an
d
reporta
bl
e segments to
reduce costs and ali
g
n resources with the needs of each se
g
ment. In connection with the Spin-Off, thes
e
reportable segments were reorganized. Refer to Note 16 for additional information regarding our current
reporta
bl
e segments
.
I
n addition to the significant restructuring programs discussed above, from time to time, we incur costs to
i
mp
l
ement sma
ll
er restructur
i
ng e
ff
orts
f
or spec
ifi
c operat
i
ons w
i
t
hi
n our segments. T
h
ese restructur
i
ng p
l
ans
f
ocus on various aspects of operations, includin
g
closin
g
and consolidatin
g
certain manufacturin
g
and
d
istribution operations, rationalizing headcount and aligning operations in the most strategic and cost-efficien
t
structure.
Restructuring and Employee Severance Accrual Rollforward
T
he followin
g
table summarizes activit
y
related to liabilities associated with our restructurin
g
and emplo
y
ee
severance projects during fiscal 2011, 2010 and 2009
:
(
in millions)
E
mp
l
oye
e
R
e
l
ate
d
C
ost
s
F
acility
E
xit and
O
ther
C
ost
s
Tota
l
B
alance at June 30, 20
0
8............................................ $22.5 $ 0.4 $ 22.9
A
ddi
t
i
on
s
.
......................................................
.
3
3.8 70.9 104.7
Pa
y
ments an
d
ot
h
er a
dj
ustments
......................................
(
43.1
)(
59.0
)(
102.1
)
B
a
l
ance at June 30
,
20
0
9...........................................
.
1
3
.2 12.
3
2
5
.
5
A
ddi
t
i
on
s
........................................................
3
2.
9
57.8
9
0.7
Pa
y
ments and other ad
j
ustments
......................................
(36.9) (62.7) (99.6)
B
alance at June 30, 20
1
0
............................................
9
.
2
7.
4
1
6
.
6
A
dd
i
t
i
o
n
s
.
....................................................... 6.9 8.
6
1
5
.
5
Payments an
d
ot
h
er a
dj
ustments
......................................
(
10.1
)(
11.4
)(
21.5
)
B
a
l
ance at June 30
,
20
1
1............................................
$
6.0
$
4.6
$
10.6
4
. IMPAIRMENT
S
AND LO
SS
ON
S
ALE OF A
SS
ET
S
D
uring fiscal 2010, we recognized an
$
18.1 million impairment charge related to the write-down o
f
Spec
i
a
l
tyScr
i
pts, LLC (“Spec
i
a
l
tyScr
i
pts”), a
b
us
i
ness w
i
t
hi
nt
h
eP
h
armaceut
i
ca
l
segment, to net expecte
df
a
ir
v
alue less costs to sell. See Note
5
for further information re
g
ardin
g
the sale of Specialt
y
Scripts. We did not
recogn
i
ze any mater
i
a
li
mpa
i
rment c
h
arges
d
ur
i
ng
fi
sca
l
2011.
5. DI
S
CONTINUED OPERATION
S
AND A
SS
ET
S
HELD FOR
S
ALE
C
areFusio
n
We are a part
y
to a trans
i
t
i
on serv
i
ces a
g
reement an
d
a tax matters a
g
reement w
i
t
h
CareFus
i
on, amon
g
ot
h
e
r
ag
reements. We have determined that the continuin
g
cash flows
g
enerated b
y
these a
g
reements do not constitut
e
s
i
gn
ifi
cant cont
i
nu
i
ng
i
nvo
l
vement
i
nt
h
e operat
i
ons o
f
CareFus
i
on. Accor
di
ng
l
y, t
h
e operat
i
ng resu
l
ts o
f
C
areFus
i
on are presente
d
w
i
t
hi
n
di
scont
i
nue
d
operat
i
ons
f
or a
ll
per
i
o
d
s presente
d
t
h
rou
gh
t
h
e
d
ate o
f
t
h
eSp
i
n-
Off.
54