Cardinal Health 2012 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2012 Cardinal Health annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 51

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51

Cardinal Health, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
45
Adjustments to Stock Incentive Plans
In connection with the Spin-Off, on August 31, 2009, we adjusted share-
based compensation awards granted under the Plans into awards based
on our Common Shares and/or CareFusion common stock, as applicable.
For purposes of the vesting of these equity awards, continued employment
or service with us or with CareFusion is treated as continued employment
for purposes of both our and CareFusion’s equity awards.
The adjustments to stock incentive plans were treated as a modification
in accordance with share-based compensation accounting guidance and
resulted in a total incremental compensation cost of $1 million.
The following table summarizes the stock options outstanding as of
June 30, 2012:
(in millions) Our Awards CareFusion Awards
Held by our employees and former employees 20 5
Held by CareFusion employees 1
Total 21
Employee Savings Plans
Substantially all of our domestic non-union employees are eligible to be
enrolled in our company-sponsored contributory retirement savings plans,
which include features under Section 401(k) of the Internal Revenue Code
of 1986, as amended, and provide for matching and profit sharing
contributions by us. Our contributions to the plans are determined by the
Board of Directors subject to certain minimum requirements as specified
in the plans. The total expense for our employee retirement savings plans
was $53 million, $70 million and $84 million for fiscal 2012, 2011 and 2010,
respectively.
17. Selected Quarterly Financial Data (Unaudited)
The following is selected quarterly financial data for fiscal 2012 and 2011.
The sum of the quarters may not equal year-to-date due to rounding.
(in millions, except per Common
Share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Fiscal 2012
Revenue $ 26,792 $ 27,078 $ 26,918 $ 26,764
Gross margin 1,084 1,114 1,207 1,136
Distribution, selling, general and
administrative expenses 644 640 683 712
Earnings from continuing operations 237 264 332 236
Earnings/(loss) from discontinued
operations —(2)1—
Net earnings 237 262 333 236
Earnings from continuing operations
per Common Share:
Basic $ 0.69 $ 0.77 $ 0.96 $ 0.68
Diluted 0.68 0.76 0.95 0.68
(in millions, except per Common
Share amounts)
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Fiscal 2011
Revenue $ 24,438 $ 25,372 $ 26,071 $ 26,764
Gross margin 962 994 1,162 1,044
Distribution, selling, general and
administrative expenses 581 607 670 671
Earnings from continuing operations 294 215 250 207
Earnings/(loss) from discontinued
operations 1 — (4) (4)
Net earnings 295 215 246 203
Earnings from continuing operations
per Common Share:
Basic $ 0.84 $ 0.62 $ 0.72 $ 0.59
Diluted 0.84 0.61 0.71 0.58
18. Subsequent Events
On August 8, 2012, our Board of Directors approved a new $750 million
share repurchase program, which expires August 31, 2015, and canceled
the share repurchase program which was to expire November 30, 2013.