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04/13/2021

Cardinal Health (NYSE: CAH) was awarded a $57.8 million contract, including options that if exercised by the U.S. Department of Health and Human Services (HHS) could reach $91.6 million, for the...

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Cardinal Health Reports Fiscal 2015 First-Quarter Results
10/30/2014
- Non-GAAP(1) operating earnings increased 6 percent to $566 million
- Non-GAAP diluted earnings per share (EPS) from continuing operations decreased 9 percent to $1.00
- Prior year first quarter included an $0.18 benefit related to tax settlements; excluding this impact, non-GAAP diluted EPS increased 9 percent

DUBLIN, Ohio, Oct. 30, 2014 /PRNewswire/ -- Cardinal Health today reported fiscal year 2015 first-quarter revenue of $24.1 billion and non-GAAP diluted earnings per share (EPS) from continuing operations of $1.00. Non-GAAP operating earnings increased 6 percent to $566 million. On a GAAP basis, operating earnings decreased 1 percent to $466 million, and diluted EPS from continuing operations decreased 21 percent to $0.78. Prior year first quarter GAAP and non-GAAP EPS included an $0.18 benefit related to tax settlements. Excluding the impact of these tax settlements, non-GAAP diluted EPS for the fiscal year 2015 first quarter increased 9 percent.

"Fiscal year 2015 is off to a good start. Our organization has committed itself to anticipating and acting on the evolving needs of a fast-changing market," said George Barrett, chairman and chief executive officer of Cardinal Health. "Both segments reported solid earnings growth and progress on all strategic fronts. Our Pharmaceutical segment continued its momentum, and we are excited about the potential from Red Oak Sourcing, our generic sourcing joint venture with CVS Health. The Medical segment continued its growth with strategic accounts and our direct-to-customer platforms, now rebranded as Cardinal Health at Home. Our physician preference item program addresses significant health system pain points and now spans orthopedics, interventional cardiology and wound management."

The company reaffirmed its fiscal year 2015 outlook for non-GAAP diluted earnings per share from continuing operations of $4.10 to $4.30.

Q1 FY15 SUMMARY


Q1 FY15

Q1 FY14

Y/Y

Revenue

$24.1 billion

$24.5 billion

(2)%





Operating Earnings

$466 million

$471 million

(1)%

Non-GAAP Operating
Earnings

$566 million

$532 million

6%





Earnings from Continuing
Operations

$266 million

$340 million

(22)%

Non-GAAP Earnings from
Continuing Operations

$340 million

$378 million

(10)%





Diluted EPS from Continuing
Operations

$0.78

$0.99

(21)%

Non-GAAP Diluted EPS from
Continuing Operations

$1.00

$1.10

(9)%


SEGMENT RESULTS

Pharmaceutical segment

Revenue for the Pharmaceutical segment declined 3 percent to $21.2 billion due to the expiration of the Walgreens contract in the prior year first quarter. The decline was partially offset by growth from new and existing customers as well as continued strong growth in China. Segment profit increased 4 percent to $451 million, driven by growth from new and existing customers as well as strong performance from generic programs.



Q1 FY15

Q1 FY14

Y/Y

Revenue

$21.2 billion

$21.8 billion

(3)%

Segment Profit

$451 million

$433 million

4%


Medical segment

Revenue for the Medical segment was up 5 percent to $2.9 billion, driven by strong performance from acquisitions and the positive net impact of customer volume. Segment profit increased 6 percent to $113 million due to growth in Cardinal Health-branded products as well as select service offerings, partially offset by a reduction in contribution from national brand products.



Q1 FY15

Q1 FY14

Y/Y

Revenue

$2.9 billion

$2.7 billion

5%

Segment Profit

$113 million

$106 million

6%


ADDITIONAL FIRST-QUARTER AND RECENT HIGHLIGHTS 

  • Completed $360 million of share repurchases in the first quarter under the expanded repurchase authorization approved by the board of directors in August 2014
  • Named Michael C. Kaufmann as chief financial officer and Jon Giacomin to the role of chief executive officer of the Pharmaceutical segment, currently held by Mike Kaufmann, with both positions to be effective on Nov. 11, 2014
  • Acquired Emerge Medical, an orthopedic trauma manufacturer, and Innovative Therapies, a negative pressure wound therapy company
  • Donated more than 1 million products to emergency response efforts to help contain the Ebola outbreak in West Africa
  • Donated more than $4 million to more than 20 universities through the company's nationwide pharmacy scholarship program, now in its fourth year

CONFERENCE CALL

Cardinal Health will host a webcast and conference call today at 8:30 a.m. Eastern to discuss first-quarter results. To access the call and corresponding slide presentation, visit ir.cardinalhealth.com, or dial 816.581.1703, using conference ID# 1088767. There is no access code required for the call.  

There is no pre-registration for the call. Participants are advised to dial into the call at least 10 minutes prior to the start time.

Presentation slides and an audio replay will be archived on the Cardinal Health website after the conclusion of the conference call. The audio replay will also be available for seven days by dialing 719.457.0820, passcode 1088767.

UPCOMING WEBCASTED INVESTOR EVENTS

  • Annual Meeting of Shareholders at 8 a.m. local time on Nov. 5 at the company headquarters in Dublin, Ohio

  • Credit Suisse Healthcare Conference at 8 a.m. local time on Nov. 11 in Phoenix

At these events, Cardinal Health executives will discuss the company's diverse products and services, company performance and strategies for continued growth. To access more details and live webcasts of these events, go to the Investors page at ir.cardinalhealth.com.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $91 billion health care services company that improves the cost-effectiveness of health care. As the business behind health care, Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers, clinical laboratories and physician offices focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation's largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #22 on the Fortune 500, Cardinal Health employs 34,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and @CardinalHealth on Twitter.

1 See the attached tables for definitions of the non-GAAP financial measures presented in this news release and reconciliations of the differences between the non-GAAP financial measures and their most directly comparable GAAP financial measures.

Cardinal Health uses its website as a channel of distribution for material company information. Important information, including news releases, financial information, earnings and analyst presentations, and information about upcoming presentations and events is routinely posted and accessible on the Investors page at ir.cardinalhealth.com. In addition, our website allows investors and other interested persons to sign up automatically to receive e-mail alerts when we post news releases, SEC filings and certain other information on our website.

Cautions Concerning Forward-Looking Statements
This news release contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and expense accruals. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include competitive pressures in Cardinal Health's various lines of business; the ability to achieve the expected benefits from the generic sourcing joint venture with CVS Health; the frequency or rate of pharmaceutical price appreciation or deflation and the timing of generic and branded pharmaceutical introductions; the non-renewal or a default under one or more key customer or supplier arrangements or changes to the terms of or level of purchases under those arrangements; the ability to achieve anticipated results from the AccessClosure and Sonexus Health acquisitions; uncertainties due to government health care reform including federal health care reform legislation; changes in the distribution patterns or reimbursement rates for health care products and services; the effects of any investigation or action by any regulatory authority; and changes in the cost of commodities such as oil-based resins, cotton, latex and diesel fuel. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This news release reflects management's views as of Oct. 30, 2014. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

 

 





Schedule 1

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)







First Quarter




(in millions, except per common share amounts)

2015



2014



% Change

Revenue

$

24,070



$

24,523



(2)

 

%

Cost of products sold

22,729



23,259



(2)

%

Gross margin

1,341



1,264



6

%










Operating expenses:









Distribution, selling, general and administrative expenses

775



732



6

%

Restructuring and employee severance

19



11



N.M.

Amortization and other acquisition-related costs

53



49



N.M.

Impairments and loss on disposal of assets





N.M.

Litigation (recoveries)/charges, net

28



1



N.M.

Operating earnings

466



471



(1)

%










Other income, net

(3)



(4)



N.M.

Interest expense, net

34



33



1

%

Earnings before income taxes and discontinued operations

435



442



(2)

%










Provision for income taxes

169



102



65

%

Earnings from continuing operations

266



340



(22)

%










Loss from discontinued operations, net of tax



(1)



N.M.

Net earnings

$

266



$

339



(22)

%










Basic earnings per common share:









Continuing operations

$

0.79



$

1.00



(21)

%

Discontinued operations





N.M.

Net basic earnings per common share

$

0.79



$

1.00



(21)

%










Diluted earnings per common share:









Continuing operations

$

0.78



$

0.99



(21)

%

Discontinued operations





N.M.

Net diluted earnings per common share

$

0.78



$

0.99



(21)

%










Weighted-average number of common shares outstanding:









Basic

336



340





Diluted

340



344





 

 





Schedule 2

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets





(in millions)

September 30,
 2014


June 30,
 2014


(Unaudited)




Assets






Current assets:






Cash and equivalents

$

2,469



$

2,865


Trade receivables, net

5,662



5,380


Inventories, net

8,069



8,266


Prepaid expenses and other

1,338



1,428


Total current assets

17,538



17,939








Property and equipment, net

1,434



1,459


Goodwill and other intangibles, net

5,923



5,870


Other assets

816



765


Total assets

$

25,711



$

26,033








Liabilities and Shareholders' Equity






Current liabilities:






Accounts payable

$

11,995



$

12,149


Current portion of long-term obligations and other short-term borrowings

843



801


Other accrued liabilities

2,058



2,165


Total current liabilities

14,896



15,115








Long-term obligations, less current portion

3,164



3,171


Deferred income taxes and other liabilities

1,395



1,346


Total shareholders' equity

6,256



6,401


Total liabilities and shareholders' equity

$

25,711



$

26,033


 

 


Schedule 3

Cardinal Health, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)




First Quarter

(in millions)

2015



2014






Cash flows from operating activities:





Net earnings

$

266


$

339

Loss from discontinued operations, net of tax


1

Earnings from continuing operations

266


340






Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:





Depreciation and amortization

108


117

Gain on sale of other investments

(5)


Share-based compensation

25


24

Provision for bad debts

12


12

Change in operating assets and liabilities, net of effects from acquisitions:





  Decrease/(increase) in trade receivables

(291)


1,395

  Decrease in inventories

199


1,098

  Decrease in accounts payable

(157)


(1,852)

  Other accrued liabilities and operating items, net

(96)


(183)

Net cash provided by operating activities

61


951






Cash flows from investing activities:





Acquisition of subsidiaries, net of cash acquired

(61)


(25)

Additions to property and equipment

(36)


(26)

Purchase of available-for-sale securities and other investments

(75)


Proceeds from sale of available-for-sale securities and other investments

91


Net cash used in investing activities

(81)


(51)






Cash flows from financing activities:





Net change in short-term borrowings

40


20

Net proceeds from issuance of common shares

25


75

Tax proceeds from share-based compensation

38


12

Dividends on common shares

(119)


(105)

Purchase of treasury shares

(360)


(50)

Net cash used in financing activities

(376)


(48)






Net increase/(decrease) in cash and equivalents

(396)


852

Cash and equivalents at beginning of period

2,865


1,901

Cash and equivalents at end of period

$

2,469


$

2,753

 

 





Schedule 4

Cardinal Health, Inc. and Subsidiaries

Total Company Business Analysis








Non-GAAP


First Quarter


First Quarter

(in millions)

2015



2014



2015



2014


Revenue












Amount

$

24,070



$

24,523








Growth rate1

(2)

%


(5)

%



















Operating earnings












Amount

$

466



$

471



$

566



$

532


Growth rate

(1)

%


3

%


6

%


13

%













Earnings from continuing operations












Amount

$

266



$

340



$

340



$

378


Growth rate

(22)

%


25

%


(10)

%


35

%













Return on equity

16.8

%


22.1

%


21.5

%


24.7

%













Effective tax rate from continuing operations2

38.9

%


23.2

%


36.5

%


24.7

%













Debt to total capital

39

%


38

%







Net debt to total capital







20

%


15

%



1

Revenue from Walgreens was $3.3 billion for the three months ended September 30, 2013. Excluding the impact of the Walgreens contract expiration, the fiscal 2015 first quarter revenue growth rate would have been 13 percent.



2

The settlements of federal and state tax controversies favorably impacted, for fiscal 2014 first quarter, both the effective tax rate from continuing operations and non-GAAP effective tax rate from continuing operations by 14.3 and 12.6 percentage points, respectively. The fiscal 2014 first quarter non-GAAP effective tax rate from continuing operations, excluding the impact of the tax settlements, would have been 37.3 percent.


Refer to the GAAP/Non-GAAP reconciliation for definitions and calculations supporting the Non-GAAP balances.

 

 






Schedule 5

Cardinal Health, Inc. and Subsidiaries

Segment Business Analysis







First Quarter



First Quarter

(in millions)

2015



2014



(in millions)

2015



2014


Pharmaceutical







Medical



















Revenue







Revenue






Amount

$

21,209



$

21,813



Amount

$

2,852



$

2,711


Growth rate1

(3)

%


(7)

%


Growth rate

5

%


13

%














Segment profit







Segment profit






Amount

$

451



$

433



Amount

$

113



$

106


Growth rate

4

%


8

%


Growth rate

6

%


43

%

Segment profit margin

2.13

%


1.99

%


Segment profit margin

3.97

%


3.92

%



1

Revenue from Walgreens was $3.3 billion for the three months ended September 30, 2013. Excluding the impact of the Walgreens contract expiration, the fiscal 2015 first quarter Pharmaceutical segment revenue growth rate would have been 15 percent.


Refer to definitions for an explanation of calculations.


Total consolidated revenue for the three months ended September 30, 2014 was $24,070 million, which included total segment revenue of $24,061 million and Corporate revenue of $9 million. Total consolidated revenue for the three months ended September 30, 2013 was $24,523 million, which included total segment revenue of $24,524 million and Corporate revenue of $(1) million.  Corporate revenue consists primarily of elimination of inter-segment revenue and other revenue not allocated to the segments.


Total consolidated operating earnings for the three months ended September 30, 2014 were $466 million, which included total segment profit of $564 million and Corporate costs of $(98) million. Total consolidated operating earnings for the three months ended September 30, 2013 were $471 million, which included total segment profit of $539 million and Corporate costs of $(68) million. Corporate includes, among other things, restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets, litigation (recoveries)/charges, net and certain investment spending that are not allocated to the segments.

 

 



Schedule 6

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation




First Quarter 2015




Operating

Earnings Before

Provision

Earnings

Earnings from

Diluted EPS

Diluted EPS




Earnings

Income Taxes

for

from

Continuing

from

from Continuing

(in millions, except per common share amounts)

Operating


Growth

and Discontinued

Income

Continuing

Operations

Continuing

Operations

Earnings


Rate

Operations

Taxes

Operations

Growth Rate

Operations

Growth Rate1

GAAP

$

466


(1)

%

$

435


$

169


$

266


(22)

%

$

0.78


(21)

%

Restructuring and employee severance

19




19


7


12




0.04




Amortization and other acquisition-related costs

53




53


19


34




0.10




Impairments and loss on disposal of assets












Litigation (recoveries)/charges, net

28




28



28




0.08




Non-GAAP

$

566


6

%

$

535


$

195


$

340


(10)

%

$

1.00


(9)

%



















First Quarter 2014

GAAP

$

471


3

%

$

442


$

102


$

340


25

%

$

0.99


25

%

Restructuring and employee severance

11




11


4


7




0.02




Amortization and other acquisition-related costs

49




49


18


31




0.09




Impairments and loss on disposal of assets












Litigation (recoveries)/charges, net

1




1



1







Non-GAAP

$

532


13

%

$

503


$

124


$

378


35

%

$

1.10


36

%



 1

The $63 million settlements of federal and state tax controversies favorably impacted, for fiscal 2014 first quarter, both diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations by $0.18. The fiscal 2015 first quarter growth rates for diluted EPS from continuing operations and non-GAAP diluted EPS from continuing operations, excluding the impact of the tax settlements, would have been (4) percent and 9 percent, respectively.


The sum of the components may not equal the total due to rounding.


We apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

 

 





Schedule 7

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation







First Quarter




(in millions)

2015






2014





GAAP return on equity

16.8

%





22.1

%
















Non-GAAP return on equity












Net earnings

$

266






$

339





Restructuring and employee severance, net of tax, in continuing operations

12






7





Amortization and other acquisition-related costs, net of tax, in continuing operations

34






31





Impairments and loss on disposal of assets, net of tax, in continuing operations










Litigation (recoveries)/charges, net, net of tax, in continuing operations

28






1





Adjusted net earnings

$

340






$

378





Annualized

$

1,360






$

1,512


















First


Fourth


First


Fourth


Quarter


Quarter


Quarter


Quarter


2015



2014



2014



2013


Total shareholders' equity

$

6,256



$

6,401



$

6,297



$

5,975


Divided by average shareholders' equity

$

6,328






$

6,136





Non-GAAP return on equity

21.5

%





24.7

%




















We apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

 

 


Schedule 8

Cardinal Health, Inc. and Subsidiaries

GAAP / Non-GAAP Reconciliation




First Quarter

(in millions)

2015



2014


GAAP effective tax rate from continuing operations1

38.9

%


23.2

%







Non-GAAP effective tax rate from continuing operations






Earnings before income taxes and discontinued operations

$

435



$

442


Restructuring and employee severance

19



11


Amortization and other acquisition-related costs

53



49


Impairments and loss on disposal of assets




Litigation (recoveries)/charges, net

28



1


Adjusted earnings before income taxes and discontinued operations

$

535



$

503








Provision for income taxes

$

169



$

102


Restructuring and employee severance tax benefit

7



4


Amortization and other acquisition-related costs tax benefit

19



18


Impairments and loss on disposal of assets tax benefit




Litigation (recoveries)/charges, net tax benefit




Adjusted provision for income taxes

$

195



$

124








Non-GAAP effective tax rate from continuing operations1

36.5

%


24.7

%








First Quarter


2015



2014


Debt to total capital

39

%


38

%







Net debt to capital






Current portion of long-term obligations and other short-term borrowings

$

843



$

190


Long-term obligations, less current portion

3,164



3,693


Debt

$

4,007



$

3,883


Cash and equivalents

(2,469)



(2,753)


Net debt

$

1,538



$

1,130


Total shareholders' equity

6,256



6,297


Capital

$

7,794



$

7,427


Net debt to capital

20

%


15

%



 1

The settlements of federal and state tax controversies favorably impacted, for fiscal 2014 first quarter, both the effective tax rate from continuing operations and non-GAAP effective tax rate from continuing operations by 14.3 and 12.6 percentage points, respectively. The fiscal 2014 first quarter non-GAAP effective tax rate from continuing operations, excluding the impact of the tax settlements, would have been 37.3 percent.


We apply varying tax rates depending on the item's nature and tax jurisdiction where it is incurred.

 

Forward-Looking Non-GAAP Financial Measures

We present non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures, including per share calculations) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. We are unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measures because we cannot reliably forecast restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets, litigation (recoveries)/charges, net and LIFO charges/(credits), which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact our future financial results.


Cardinal Health, Inc. and Subsidiaries


Use of Non-GAAP Measures

This earnings release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  In general, the measures exclude items and charges that (i) management does not believe reflect Cardinal Health, Inc.'s (the "Company") core business and relate more to strategic, multi-year corporate activities; or (ii) relate to activities or actions that may have occurred over multiple or in prior periods without predictable trends. Management uses these non-GAAP financial measures internally to evaluate the Company's performance, evaluate the balance sheet, engage in financial and operational planning and determine incentive compensation.


Beginning in fiscal 2015, the Company will exclude last-in, first-out ("LIFO") inventory charges/(credits)5 from its non-GAAP earnings, for consistency with the presentation by some of its peers. The Company did not record any LIFO charges or credits in the first quarter of fiscal 2015 or 2014, respectively.


Management provides these non-GAAP financial measures to investors as supplemental metrics to assist readers in assessing the effects of items and events on its financial and operating results and in comparing the Company's performance to that of its competitors.  However, the non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.


The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements set forth above should be carefully evaluated.


Definitions

Debt: long-term obligations plus short-term borrowings.


Debt to Total Capital: debt divided by (debt plus total shareholders' equity).


Net Debt: a Non-GAAP measure defined as debt minus (cash and equivalents).


Net Debt to Capital: a Non-GAAP measure defined as net debt divided by (net debt plus total shareholders' equity).


Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted-average shares outstanding.


Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding (1) restructuring and employee severance1, (2) amortization and other acquisition-related costs2, (3) impairments and loss on disposal of assets3, (4) litigation (recoveries)/charges, net4 and (5) LIFO charges/(credits), each net of tax.


Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income taxes adjusted for (1) restructuring and employee severance, (2) amortization and other acquisition-related costs, (3) impairments and loss on disposal of assets, (4) litigation (recoveries)/charges, net and (5) LIFO charges/(credits)) divided by (earnings before income taxes and discontinued operations adjusted for the same five items).


Non-GAAP Operating Earnings: operating earnings excluding (1) restructuring and employee severance, (2) amortization and other acquisition-related costs, (3) impairments and loss on disposal of assets, (4) litigation (recoveries)/charges, net and (5) LIFO charges/(credits).


Non-GAAP Return on Equity: (annualized current period net earnings excluding (1) restructuring and employee severance, (2) amortization and other acquisition-related costs, (3) impairments and loss on disposal of assets, (4) litigation (recoveries)/charges, net and (5) LIFO charges/(credits), each net of tax) divided by average shareholders' equity.


Return on Equity: annualized current period net earnings divided by average shareholders' equity.


Segment Profit: segment revenue minus (segment cost of products sold and segment distribution, selling, general and administrative expenses).


Segment Profit Margin: segment profit divided by segment revenue.



1

Programs by which the Company fundamentally changes its operations such as closing and consolidating facilities, moving manufacturing of a product to another location, production or business process sourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure of a business unit in response to changing market conditions).



2

Costs that consist primarily of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations.



3

Asset impairments and losses from the disposal of assets not eligible to be classified as discontinued operations are classified within impairments and loss on disposal of assets within the condensed consolidated statements of earnings.



4

Loss contingencies related to litigation and regulatory matters and income from favorable resolution of legal matters.



5

The inventories of the Company's core pharmaceutical distribution facilities in the Pharmaceutical segment are valued at the lower of cost, using the LIFO method, or market.  These charges or credits are included in cost of products sold, and represent changes in the Company's LIFO inventory reserve.

 

 

SOURCE Cardinal Health

For further information: Media: Debbie Mitchell, (614) 757-6225, debbie.mitchell@cardinalhealth.com; Investors: Sally Curley, (614) 757-7115, sally.curley@cardinalhealth.com
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04/13/2021

Cardinal Health (NYSE: CAH) was awarded a $57.8 million contract, including options that if exercised by the U.S. Department of Health and Human Services (HHS) could reach $91.6 million, for the...

04/07/2021

By Victor Crawford, Chief Executive Officer of the Pharmaceutical segment at Cardinal Health

04/07/2021

Cardinal Health (NYSE: CAH) Specialty Solutions today launched Cardinal Health™ Navista™ Tech Solutions (TS), an advanced suite of technology solutions to help community oncologists improve...

03/30/2021

Cardinal Health (NYSE: CAH) plans to release third-quarter financial results for its fiscal year 2021 on May 6 prior to the opening of trading on the New York Stock Exchange. The company will...

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