Cardinal Health 2012 Annual Report Download - page 16

Cardinal Health, Inc. and Subsidiaries
Business Overview
14
General
As used in this annual report, "we," "our," "us" and similar pronouns refer
to Cardinal Health, Inc. and its subsidiaries, unless the context requires
otherwise. We are a healthcare services company providing
pharmaceutical and medical products and services that help pharmacies,
hospitals, surgery centers, physician offices and other healthcare
providers focus on patient care while reducing costs, enhancing efficiency
and improving quality.
Our fiscal year ends on June 30. References to fiscal 2012, 2011 and 2010
are to the fiscal years ended June 30, 2012, 2011 and 2010, respectively.
Except as otherwise specified, information in this report is provided as of
June 30, 2012.
Pharmaceutical Segment
In the United States, including Puerto Rico, the Pharmaceutical segment:
• distributes branded and generic pharmaceutical, over-the-counter
healthcare, and consumer products through its pharmaceutical
distribution business to retailers (including chain and independent drug
stores and pharmacy departments of supermarkets and mass
merchandisers), hospitals, and other healthcare providers (including
mail order pharmacies). This business:
• maintains prime vendor relationships that streamline the purchasing
process resulting in greater efficiency and lower costs for our
customers; and
• renders services to pharmaceutical manufacturers including
distribution, inventory management, data reporting, new product
launch support, and contract pricing and chargeback administration.
• operates nuclear pharmacies and cyclotron facilities that manufacture,
prepare and deliver radiopharmaceuticals for use in nuclear imaging
and other procedures in hospitals and clinics;
• distributes specialty pharmaceutical products and provides services to
pharmaceutical manufacturers, third-party payors and healthcare
service providers supporting the marketing, distribution, and payment
for specialty pharmaceutical products;
• franchises retail pharmacies under the Medicine Shoppe® and
Medicap® brands; and
• provides pharmacy services to hospitals and other healthcare facilities.
In China, the Pharmaceutical segment distributes branded, generic and
specialty pharmaceuticals, over-the-counter and consumer products as
well as provides logistics, marketing and other services through Cardinal
Health China.
Medical Segment
The Medical segment distributes a broad range of medical, surgical and
laboratory products to hospitals, surgery centers, laboratories, physician
offices and other healthcare providers in the United States, Canada and
China. This segment also manufactures, sources and develops its own
line of private brand medical and surgical products. Manufactured products
include: single-use surgical drapes, gowns and apparel; exam and surgical
gloves; and fluid suction and collection systems. The segment also offers
sterile and non-sterile procedure kits. Our manufactured products are sold
directly or through third-party distributors in the United States, Canada,
Europe, South America and the Asia/Pacific region. In addition, the
segment provides supply chain services, including spend management,
distribution management, and inventory management services, to
healthcare providers.
Selected Financial Data
The consolidated financial data below includes all business combinations as of the date of acquisition that occurred during these periods. The following
selected consolidated financial data should be read in conjunction with the consolidated financial statements and related notes and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
(in millions, except per Common Share amounts) 2012 2011 2010 2009 2008
Earnings Data:
Revenue $ 107,552 $ 102,644 $ 98,503 $ 95,992 $ 87,408
Earnings from continuing operations $ 1,070 $ 966 $ 587 $ 758 $ 847
Earnings/(loss) from discontinued operations (1) (1) (7) 55 394 454
Net earnings $ 1,069 $ 959 $ 642 $1,152 $1,301
Basic earnings/(loss) per Common Share:
Continuing operations $ 3.10 $ 2.77 $ 1.64 $ 2.12 $ 2.37
Discontinued operations (1) —(0.02) 0.15 1.10 1.26
Net basic earnings per Common Share $ 3.10 $2.75 $1.79 $3.22 $ 3.63
Diluted earnings/(loss) per Common Share:
Continuing operations $ 3.06 $ 2.74 $ 1.62 $ 2.10 $ 2.33
Discontinued operations (1) —(0.02) 0.15 1.08 1.24
Net diluted earnings per Common Share $ 3.06 $2.72 $1.77 $3.18 $ 3.57
Cash dividends declared per Common Share 0.8825 0.800 0.720 0.595 0.500
Balance Sheet Data:
Total assets $ 24,260 $ 22,846 $ 19,990 $ 25,119 $ 23,448
Long-term obligations, less current portion 2,418 2,175 1,896 3,272 3,682
Shareholders’ equity (2) 6,244 5,849 5,276 8,725 7,748
(1) On August 31, 2009, we separated the clinical and medical products businesses from our other businesses through a pro rata distribution to shareholders of 81 percent of the then
outstanding common stock of CareFusion Corporation (the "Spin-Off") and met the criteria for classification of these businesses as discontinued operations. During the fourth quarter
of fiscal 2009, we committed to plans to sell our United Kingdom-based Martindale injectable manufacturing business within our Pharmaceutical segment, and met the criteria for
classification of this business as discontinued operations. For additional information regarding discontinued operations, see Note 5 of the “Notes to Consolidated Financial Statements.”
(2) As noted above, on August 31, 2009, we completed the distribution to our shareholders of 81 percent of the then outstanding common stock of CareFusion Corporation ("CareFusion")
and retained the remaining 41 million shares of CareFusion common stock. The distribution of CareFusion common stock to our shareholders resulted in the recognition of a $3.7
billion non-cash dividend.