Cardinal Health 2013 Annual Report Download - page 50

Cardinal Health, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
48
The following tables present depreciation and amortization and additions
to property and equipment by reportable segment and at Corporate:
(in millions) 2013 2012 2011
Pharmaceutical (1) $ 125 $ 114 $ 107
Medical (1) 137 119 108
Corporate 135 92 98
Total depreciation and amortization $ 397 $ 325 $ 313
(1) Depreciation incurred at Corporate for shared information technology is allocated to
the segments. Prior-year amounts have been reclassified to reflect this presentation,
which resulted in no impact to segment profit or consolidated operating earnings.
(in millions) 2013 2012 2011
Pharmaceutical $ 46 $ 44 $ 55
Medical 48 100 123
Corporate 101 119 113
Total additions to property and equipment $ 195 $ 263 $ 291
The following table presents total assets for each segment as well as
reconciling items necessary to total the amounts reported in the
consolidated balance sheets at June 30:
(in millions) 2013 2012 2011
Pharmaceutical $ 16,258 $ 16,642 $ 16,126
Medical 6,521 4,399 3,895
Corporate 3,040 3,219 2,825
Total assets $ 25,819 $ 24,260 $ 22,846
The following table presents revenue and property and equipment, net by
geographic area:
Revenue Property and Equipment, net
(in millions) 2013 2012 2011 2013 2012 2011
United States $97,994 $ 105,205 $ 101,080 $ 1,355 $ 1,425 $ 1,398
International 3,099 2,347 1,564 134 126 114
Total $ 101,093 $ 107,552 $ 102,644 $ 1,489 $ 1,551 $ 1,512
15. Share-Based Compensation and Savings Plans
Share-Based Compensation Plans
We maintain stock incentive plans (collectively, the “Plans”) for the benefit
of certain of our officers, directors and employees. At June 30, 2013, 30
million shares remain available for future issuances under the Cardinal
Health, Inc. 2011 Long-Term Incentive Plan (“2011 LTIP”). The number of
shares authorized for issuance under the 2011 LTIP will increase by shares
that are not issued under outstanding equity awards. Under the 2011 LTIP's
fungible share counting provisions, stock options are counted against the
plan as one share for every share issued; awards other than stock options
are counted against the plan as two and one-half shares for every share
issued. This means that only 12 million shares could be issued under
awards other than stock options while 30 million shares could be issued
under stock options.
The following table provides total share-based compensation expense by
type of award:
(in millions) 2013 2012 2011
Restricted share and share unit expense $ 60 $ 55 $ 52
Employee stock option expense 23 25 26
Performance share unit expense 10 6 —
Stock appreciation right (income)/expense —(1) 2
Total $ 93 $ 85 $ 80
The total tax benefit related to share-based compensation was $32 million,
$31 million and $29 million for fiscal 2013, 2012 and 2011, respectively.
During fiscal 2013, certain share-based compensation awards were
modified. The modifications resulted in incremental compensation cost of
$3 million, $2 million of which is included in restructuring and employee
severance in the consolidated statements of earnings. See Note 3 for
information regarding our restructuring activities.
Stock Options
Employee stock options granted under the Plans generally vest in equal
annual installments over three years and are exercisable for periods
ranging from seven to ten years from the grant date. All employee stock
options are exercisable at a price equal to the market value of the common
shares underlying the option at the grant date and, when exercised, are
issued out of treasury shares.
The following table summarizes all stock option transactions under the
Plans:
(in millions, except per share
amounts) Stock Options Weighted-Average Exercise Price per Common Share
Outstanding at June 30, 2011 23 $ 37.02
Granted 2 41.58
Exercised (2) 30.26
Canceled and forfeited (2) 47.19
Outstanding at June 30, 2012 21 $ 37.29
Granted 3 39.81
Exercised (6) 33.19
Canceled and forfeited (3) 46.91
Outstanding at June 30, 2013 15 $ 36.97
Exercisable at June 30, 2013 10 $ 36.20