Cardinal Health 2014 Annual Report Download - page 36

Cardinal Health, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
34
investment in a foreign entity. The amended guidance requires
the release of any cumulative translation adjustment into net
income only upon complete or substantially complete liquidation
of a controlling interest in a subsidiary or a group of assets within
a foreign entity. Also, it requires the release of all or a pro rata
portion of the cumulative translation adjustment to net income
in the case of sale of an equity method investment that is a
foreign entity. This amendment will be effective for us in the first
quarter of fiscal 2015. We do not expect the adoption of this
guidance to impact our financial position or results of operations.
In February 2013, the FASB issued amended accounting
guidance related to reclassifications out of AOCI. An entity is
required to present, either parenthetically on the face of the
statement where net income is presented or in the notes, the
significant amounts, by component, reclassified out of AOCI by
the respective line items of net income and to report changes
in its AOCI balances by component. We adopted this amended
guidance on a prospective basis in the first quarter of fiscal 2014
and have elected to report reclassifications out of AOCI in Note
13. The adoption of this guidance did not impact our financial
position or results of operations.
In January 2013, the FASB issued updated guidance to limit the
scope of the balance sheet offsetting disclosures to derivatives,
repurchase agreements and securities lending transactions to
the extent they are offset in the financial statements or subject
to an enforceable master netting arrangement or similar
arrangement. We adopted this amended guidance on a
retrospective basis in the first quarter of fiscal 2014. The
adoption of this guidance did not impact our financial position
or results of operations. See Note 11 for additional information
regarding fair value measurements of our derivative
instruments.
In July 2012, the FASB issued amended accounting guidance
related to testing indefinite-lived intangible assets for
impairment. Under this guidance, a company is no longer
required to calculate the fair value of an indefinite-lived
intangible asset unless the company determines, based on a
qualitative assessment, that it is more likely than not that its
estimated fair value is less than its carrying amount. We adopted
this amended guidance in the first quarter of fiscal 2014. The
adoption of this guidance did not impact our financial position
or results of operations.
2. Acquisitions
We have completed several acquisitions since July 1, 2011,
including the acquisitions within our Medical segment described
below. The pro forma results of operations and the results of
operations for acquisitions since the acquisition dates have not
been separately disclosed because the effects were not
significant compared to the consolidated financial statements,
individually or in the aggregate.
AccessClosure
On May 9, 2014, we completed the acquisition of Access
Closure, Inc. ("AccessClosure") for $320 million in an all-cash
transaction. We funded the acquisition with cash on hand. The
acquisition of AccessClosure, a manufacturer and distributor of
extravascular closure devices, expands the Medical segment's
portfolio of self-manufactured products.
AssuraMed
On March 18, 2013, we completed the acquisition of
AssuraMed, Inc. ("AssuraMed") for $2.07 billion, net of cash
acquired, in an all-cash transaction. We funded the acquisition
through the issuance of $1.3 billion in fixed rate notes, as
discussed in Note 7, and cash on hand. The acquisition of
AssuraMed, a provider of medical supplies to homecare
providers and patients in the home, expands the Medical
segment's ability to serve this patient base. AssuraMed is now
known as our Home division. We recognized $20 million of
transaction costs associated with the purchase of AssuraMed
during fiscal 2013, which are included in amortization and other
acquisition-related costs in the consolidated statements of
earnings.
Fair Value of Assets Acquired and Liabilities
Assumed
The estimation of the fair value of assets acquired and liabilities
assumed for AccessClosure resulted in goodwill of $159 million
and identifiable intangible assets, primarily developed
technology, of $133 million with a weighted-average useful life
of 9 years. The assessment of fair value for AccessClosure is
preliminary and is based on information that was available at
the time the consolidated financial statements were prepared.
The estimation of the fair value of assets acquired and liabilities
assumed for AssuraMed was completed during fiscal 2014. The