Exhibit 99.2
SUPPLEMENTAL FINANCIAL INFORMATION
The following tables present unaudited pro forma quarterly financial data for CareFusion Corporation (the “Company”) for the quarters ended September 30, 2010 and December 31, 2010, and for the six-months ended December 31, 2010. In addition, the following tables present unaudited pro forma quarterly financial information for the Company for each of the quarters in the fiscal year ended June 30, 2010 and for the fiscal year ended June 30, 2010. As set forth in the Form 8-K of which this Exhibit 99.2 forms a part, on February 3, 2011, the Company issued a news release in which the Company announced that it had entered into a definitive agreement with Medline Industries, Inc., for the sale of the Company’s International Surgical Products distribution business. The operations of the International Surgical Products business did not meet the criteria for reclassification as discontinued operations for the quarter ended December 31, 2010, and as a result, this business will be reclassified as discontinued operations beginning in the quarter ending March 31, 2011. The Company is voluntarily providing the unaudited pro forma financial data included in the following tables to reflect the reclassification of this business as if it were discontinued operations for all periods presented so investors can more easily understand the impact on the Company’s financial statements beginning with the quarter ending March 31, 2011.
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended September 30, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Statement of Income | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Revenue | | $ | 908 | | | $ | (97 | ) | | $ | 811 | | | $ | — | | | $ | 811 | |
Cost of Products Sold | | | 468 | | | | (70 | ) | | | 398 | | | | — | | | | 398 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 440 | | | | (27 | ) | | | 413 | | | | — | | | | 413 | |
| | | | | |
Selling, General and Administrative Expenses | | | 295 | | | | (25 | ) | | | 270 | | | | (15 | ) | | | 255 | |
Research and Development Expenses | | | 40 | | | | — | | | | 40 | | | | — | | | | 40 | |
Restructuring and Acquisition Integration Charges | | | 23 | | | | — | | | | 23 | | | | (23 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 82 | | | | (2 | ) | | | 80 | | | | 38 | | | | 118 | |
| | | | | |
Interest Expense and Other, Net | | | 24 | | | | — | | | | 24 | | | | — | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 58 | | | | (2 | ) | | | 56 | | | | 38 | | | | 94 | |
Provision for Income Tax | | | 20 | | | | (1 | ) | | | 19 | | | | 11 | | | | 30 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Income | | $ | 38 | | | $ | (1 | ) | | $ | 37 | | | $ | 27 | | | $ | 64 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per Share Amounts:4 | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.17 | | | $ | (0.01 | ) | | $ | 0.17 | | | $ | 0.12 | | | $ | 0.29 | |
Diluted Earnings per Common Share | | $ | 0.17 | | | $ | (0.01 | ) | | $ | 0.16 | | | $ | 0.12 | | | $ | 0.29 | |
| | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 222.1 | | | | 222.1 | | | | 222.1 | | | | 222.1 | | | | 222.1 | |
Diluted | | | 223.9 | | | | 223.9 | | | | 223.9 | | | | 223.9 | | | | 223.9 | |
| | | | | |
Effective Tax Rate | | | 33.9 | % | | | 27.0 | % | | | 34.2 | % | | | 28.2 | % | | | 31.7 | % |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
2 | Reflects nonrecurring charges primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges, and nonrecurring tax items. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended December 31, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Statement of Income | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Revenue | | $ | 1,002 | | | $ | (116 | ) | | $ | 886 | | | $ | — | | | $ | 886 | |
Cost of Products Sold | | | 527 | | | | (86 | ) | | | 441 | | | | — | | | | 441 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 475 | | | | (30 | ) | | | 445 | | | | — | | | | 445 | |
| | | | | |
Selling, General and Administrative Expenses | | | 295 | | | | (27 | ) | | | 268 | | | | (9 | ) | | | 259 | |
Research and Development Expenses | | | 36 | | | | — | | | | 36 | | | | — | | | | 36 | |
Restructuring and Acquisition Integration Charges | | | 18 | | | | — | | | | 18 | | | | (18 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 126 | | | | (3 | ) | | | 123 | | | | 27 | | | | 150 | |
| | | | | |
Interest Expense and Other, Net | | | 21 | | | | — | | | | 21 | | | | — | | | | 21 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 105 | | | | (3 | ) | | | 102 | | | | 27 | | | | 129 | |
Provision for Income Tax | | | 29 | | | | — | | | | 29 | | | | 6 | | | | 35 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Income | | $ | 76 | | | $ | (3 | ) | | $ | 73 | | | $ | 21 | | | $ | 94 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per Share Amounts:4 | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.34 | | | $ | (0.01 | ) | | $ | 0.33 | | | $ | 0.09 | | | $ | 0.42 | |
Diluted Earnings per Common Share | | $ | 0.34 | | | $ | (0.01 | ) | | $ | 0.33 | | | $ | 0.09 | | | $ | 0.42 | |
| | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 222.8 | | | | 222.8 | | | | 222.8 | | | | 222.8 | | | | 222.8 | |
Diluted | | | 224.5 | | | | 224.5 | | | | 224.5 | | | | 224.5 | | | | 224.5 | |
| | | | | |
Effective Tax Rate | | | 27.9 | % | | | 15.9 | % | | | 28.2 | % | | | 21.5 | % | | | 26.8 | % |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
2 | Reflects nonrecurring charges primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges, and nonrecurring tax items. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Six Months Ended December 31, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Statement of Income | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Revenue | | $ | 1,910 | | | $ | (213 | ) | | $ | 1,697 | | | $ | — | | | $ | 1,697 | |
Cost of Products Sold | | | 995 | | | | (156 | ) | | | 839 | | | | — | | | | 839 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 915 | | | | (57 | ) | | | 858 | | | | — | | | | 858 | |
| | | | | |
Selling, General and Administrative Expenses | | | 590 | | | | (52 | ) | | | 538 | | | | (24 | ) | | | 514 | |
Research and Development Expenses | | | 76 | | | | — | | | | 76 | | | | — | | | | 76 | |
Restructuring and Acquisition Integration Charges | | | 41 | | | | — | | | | 41 | | | | (41 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 208 | | | | (5 | ) | | | 203 | | | | 65 | | | | 268 | |
| | | | | |
Interest Expense and Other, Net | | | 45 | | | | — | | | | 45 | | | | — | | | | 45 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 163 | | | | (5 | ) | | | 158 | | | | 65 | | | | 223 | |
Provision for Income Tax | | | 49 | | | | (1 | ) | | | 48 | | | | 17 | | | | 65 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Income | | $ | 114 | | | $ | (4 | ) | | $ | 110 | | | $ | 48 | | | $ | 158 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per Share Amounts:4 | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.51 | | | $ | (0.02 | ) | | $ | 0.50 | | | $ | 0.22 | | | $ | 0.71 | |
Diluted Earnings per Common Share | | $ | 0.51 | | | $ | (0.02 | ) | | $ | 0.49 | | | $ | 0.22 | | | $ | 0.71 | |
| | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 222.4 | | | | 222.4 | | | | 222.4 | | | | 222.4 | | | | 222.4 | |
Diluted | | | 224.2 | | | | 224.2 | | | | 224.2 | | | | 224.2 | | | | 224.2 | |
| | | | | |
Effective Tax Rate | | | 30.0 | % | | | 21.1 | % | | | 30.3 | % | | | 25.5 | % | | | 28.9 | % |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
2 | Reflects nonrecurring charges primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges, and nonrecurring tax items. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended September 30, 2009 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Discontinued Operations1 | | | Pro Forma Adjustments 2 | | | Pro Forma Statement of Income | | | Nonrecurring Items3 | | | Adjusted Pro Forma 4 | |
Revenue | | $ | 923 | | | $ | — | | | $ | (110 | ) | | $ | 813 | | | $ | — | | | $ | 813 | |
Cost of Products Sold | | | 472 | | | | — | | | | (75 | ) | | | 397 | | | | — | | | | 397 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 451 | | | | — | | | | (35 | ) | | | 416 | | | | — | | | | 416 | |
| | | | | | |
Selling, General and Administrative Expenses | | | 297 | | | | — | | | | (28 | ) | | | 269 | | | | (13 | ) | | | 256 | |
Research and Development Expenses | | | 36 | | | | — | | | | — | | | | 36 | | | | — | | | | 36 | |
Restructuring and Acquisition Integration Charges | | | 1 | | | | — | | | | — | | | | 1 | | | | (1 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 117 | | | | — | | | | (7 | ) | | | 110 | | | | 14 | | | | 124 | |
| | | | | | |
Interest Expense and Other, Net | | | 42 | | | | — | | | | — | | | | 42 | | | | (22 | ) | | | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 75 | | | | — | | | | (7 | ) | | | 68 | | | | 36 | | | | 104 | |
Provision for Income Tax | | | 20 | | | | — | | | | (1 | ) | | | 19 | | | | 6 | | | | 25 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from Continuing Operations | | | 55 | | | | — | | | | (6 | ) | | | 49 | | | | 30 | | | | 79 | |
Income from Discontinued Operations, Net of Tax | | | 26 | | | | (26 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Income | | $ | 81 | | | $ | (26 | ) | | $ | (6 | ) | | $ | 49 | | | $ | 30 | | | $ | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Per Share Amounts:5 | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.37 | | | $ | (0.12 | ) | | $ | (0.03 | ) | | $ | 0.22 | | | $ | 0.14 | | | $ | 0.36 | |
Diluted Earnings per Common Share | | $ | 0.37 | | | $ | (0.12 | ) | | $ | (0.03 | ) | | $ | 0.22 | | | $ | 0.14 | | | $ | 0.36 | |
| | | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 220.6 | | | | 220.6 | | | | 220.6 | | | | 220.6 | | | | 220.6 | | | | 220.6 | |
Diluted | | | 221.2 | | | | 221.2 | | | | 221.2 | | | | 221.2 | | | | 221.2 | | | | 221.2 | |
| | | | | | |
Effective Tax Rate | | | 27.0 | % | | | n/a | | | | 11.3 | % | | | 28.4 | % | | | 16.5 | % | | | 24.3 | % |
1 | Reflects the impact of (a) removing certain businesses that manufacture and sell surgical and exam gloves, surgical drapes and apparel and fluid management products in the U.S. market that were previously part of the Clinical and Medical Products segment of Cardinal Health and were retained by Cardinal Health upon the spinoff, and (b) the divestiture of the Company’s audiology business. |
2 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
3 | Reflects nonrecurring charges primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges, and nonrecurring charges related to the bridge loan entered into in connection with the spinoff. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
4 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
5 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended December 31, 2009 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Discontinued Operations1 | | | Pro Forma Adjustments 2 | | | Pro Forma Statement of Income | | | Nonrecurring Items3 | | | Adjusted Pro Forma 4 | |
Revenue | | $ | 1,019 | | | $ | — | | | $ | (127 | ) | | $ | 892 | | | $ | — | | | $ | 892 | |
Cost of Products Sold | | | 541 | | | | — | | | | (98 | ) | | | 443 | | | | — | | | | 443 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 478 | | | | — | | | | (29 | ) | | | 449 | | | | — | | | | 449 | |
| | | | | | |
Selling, General and Administrative Expenses | | | 305 | | | | — | | | | (29 | ) | | | 276 | | | | (12 | ) | | | 264 | |
Research and Development Expenses | | | 37 | | | | — | | | | — | | | | 37 | | | | — | | | | 37 | |
Restructuring and Acquisition Integration Charges | | | 9 | | | | — | | | | — | | | | 9 | | | | (9 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 127 | | | | — | | | | — | | | | 127 | | | | 21 | | | | 148 | |
| | | | | | |
Interest Expense and Other, Net | | | 24 | | | | — | | | | — | | | | 24 | | | | — | | | | 24 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 103 | | | | — | | | | — | | | | 103 | | | | 21 | | | | 124 | |
Provision for Income Tax | | | 30 | | | | — | | | | — | | | | 30 | | | | 7 | | | | 37 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from Continuing Operations | | | 73 | | | | — | | | | — | | | | 73 | | | | 14 | | | | 87 | |
Loss from Discontinued Operations, Net of Tax | | | (3 | ) | | | 3 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Income | | $ | 70 | | | $ | 3 | | | $ | — | | | $ | 73 | | | $ | 14 | | | $ | 87 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Per Share Amounts:5 | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.32 | | | $ | 0.01 | | | $ | — | | | $ | 0.33 | | | $ | 0.06 | | | $ | 0.39 | |
Diluted Earnings per Common Share | | $ | 0.32 | | | $ | 0.01 | | | $ | — | | | $ | 0.32 | | | $ | 0.06 | | | $ | 0.39 | |
| | | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 220.8 | | | | 220.8 | | | | 220.8 | | | | 220.8 | | | | 220.8 | | | | 220.8 | |
Diluted | | | 222.2 | | | | 222.2 | | | | 222.2 | | | | 222.2 | | | | 222.2 | | | | 222.2 | |
| | | | | | |
Effective Tax Rate | | | 29.4 | % | | | n/a | | | | 1.4 | % | | | 29.6 | % | | | 33.6 | % | | | 30.2 | % |
1 | Reflects the impact of the divestiture of the Company’s audiology business. |
2 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
3 | Reflects nonrecurring charges related to the spinoff, nonrecurring charges related to the bridge loan entered into in connection with the spinoff, nonrecurring restructuring and acquisition integration charges and nonrecurring tax items. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
4 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
5 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended March 31, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Statement of Income | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Revenue | | $ | 952 | | | $ | (115 | ) | | $ | 837 | | | $ | — | | | $ | 837 | |
Cost of Products Sold | | | 500 | | | | (77 | ) | | | 423 | | | | — | | | | 423 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 452 | | | | (38 | ) | | | 414 | | | | — | | | | 414 | |
| | | | | |
Selling, General and Administrative Expenses | | | 316 | | | | (31 | ) | | | 285 | | | | (17 | ) | | | 268 | |
Research and Development Expenses | | | 42 | | | | — | | | | 42 | | | | — | | | | 42 | |
Restructuring and Acquisition Integration Charges | | | 1 | | | | — | | | | 1 | | | | (1 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 93 | | | | (7 | ) | | | 86 | | | | 18 | | | | 104 | |
| | | | | |
Interest Expense and Other, Net | | | 29 | | | | — | | | | 29 | | | | — | | | | 29 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 64 | | | | (7 | ) | | | 57 | | | | 18 | | | | 75 | |
Provision for Income Tax | | | 73 | | | | (1 | ) | | | 72 | | | | (48 | ) | | | 24 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Income (Loss) | | $ | (9 | ) | | $ | (6 | ) | | $ | (15 | ) | | $ | 66 | | | $ | 51 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per Share Amounts:4 | | | | | | | | | | | | | | | | | | | | |
Basic Earnings (Loss) per Common Share | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | (0.07 | ) | | $ | 0.30 | | | $ | 0.23 | |
Diluted Earnings (Loss) per Common Share | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | (0.07 | ) | | $ | 0.30 | | | $ | 0.23 | |
| | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 221.6 | | | | 221.6 | | | | 221.6 | | | | 221.6 | | | | 221.6 | |
Diluted5 | | | 221.6 | | | | 221.6 | | | | 221.6 | | | | 221.6 | | | | 221.6 | |
| | | | | |
Effective Tax Rate | | | 114.1 | % | | | 15.5 | % | | | 125.5 | % | | | (258.3 | %) | | | 31.8 | % |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
2 | Reflects nonrecurring charges related to the spinoff, nonrecurring restructuring and acquisition integration charges, nonrecurring charges related to a tax reserve adjustment ($58 million) for uncertain tax positions, and nonrecurring tax items associated with the other non-tax adjustments. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
5 | Dilutive shares outstanding equal basic shares outstanding for the quarter ended March 31, 2010 as the impact would be anti-dilutive. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended June 30, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Statement of Income | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Revenue | | $ | 1,035 | | | $ | (105 | ) | | $ | 930 | | | $ | — | | | $ | 930 | |
Cost of Products Sold | | | 550 | | | | (73 | ) | | | 477 | | | | — | | | | 477 | |
| | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 485 | | | | (32 | ) | | | 453 | | | | — | | | | 453 | |
| | | | | |
Selling, General and Administrative Expenses | | | 310 | | | | (23 | ) | | | 287 | | | | (17 | ) | | | 270 | |
Research and Development Expenses | | | 44 | | | | — | | | | 44 | | | | — | | | | 44 | |
Restructuring and Acquisition Integration Charges | | | 8 | | | | — | | | | 8 | | | | (8 | ) | | | — | |
Gain on the Sale of Assets | | | (12 | ) | | | — | | | | (12 | ) | | | 12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 135 | | | | (9 | ) | | | 126 | | | | 13 | | | | 139 | |
| | | | | |
Interest Expense and Other, Net | | | 20 | | | | — | | | | 20 | | | | — | | | | 20 | |
| | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 115 | | | | (9 | ) | | | 106 | | | | 13 | | | | 119 | |
Provision for Income Tax | | | 63 | | | | (3 | ) | | | 60 | | | | (20 | ) | | | 40 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net Income | | $ | 52 | | | $ | (6 | ) | | $ | 46 | | | $ | 33 | | | $ | 79 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Per Share Amounts:4 | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.24 | | | $ | (0.03 | ) | | $ | 0.21 | | | $ | 0.15 | | | $ | 0.36 | |
Diluted Earnings per Common Share | | $ | 0.23 | | | $ | (0.03 | ) | | $ | 0.21 | | | $ | 0.15 | | | $ | 0.35 | |
| | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | |
Basic | | | 221.8 | | | | 221.8 | | | | 221.8 | | | | 221.8 | | | | 221.8 | |
Diluted | | | 224.0 | | | | 224.0 | | | | 224.0 | | | | 224.0 | | | | 224.0 | |
| | | | | |
Effective Tax Rate | | | 54.5 | % | | | 34.8 | % | | | 56.2 | % | | | (164.7 | %) | | | 33.1 | % |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
2 | Reflects nonrecurring charges, primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges, nonrecurring gain on the sale of assets and nonrecurring tax items. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
PRO FORMA ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended June 30, 2010 | |
(in millions, except per share amounts) | | GAAP As Reported | | | Discontinued Operations1 | | | Pro Forma Adjustments 2 | | | Pro Forma Statement of Income | | | Nonrecurring Items3 | | | Adjusted Pro Forma 4 | |
Revenue | | $ | 3,929 | | | $ | — | | | $ | (457 | ) | | $ | 3,472 | | | $ | — | | | $ | 3,472 | |
Cost of Products Sold | | | 2,063 | | | | — | | | | (323 | ) | | | 1,740 | | | | — | | | | 1,740 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross Margin | | | 1,866 | | | | — | | | | (134 | ) | | | 1,732 | | | | — | | | | 1,732 | |
| | | | | | |
Selling, General and Administrative Expenses | | | 1,228 | | | | — | | | | (111 | ) | | | 1,117 | | | | (59 | ) | | | 1,058 | |
Research and Development Expenses | | | 159 | | | | — | | | | — | | | | 159 | | | | — | | | | 159 | |
Restructuring and Acquisition Integration Charges | | | 19 | | | | | | | | — | | | | 19 | | | | (19 | ) | | | — | |
Gain on the Sale of Assets | | | (12 | ) | | | — | | | | — | | | | (12 | ) | | | 12 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Income | | | 472 | | | | — | | | | (23 | ) | | | 449 | | | | 66 | | | | 515 | |
| | | | | | |
Interest Expense and Other, Net | | | 115 | | | | — | | | | — | | | | 115 | | | | (22 | ) | | | 93 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income Before Income Tax | | | 357 | | | | — | | | | (23 | ) | | | 334 | | | | 88 | | | | 422 | |
Provision for Income Tax | | | 186 | | | | — | | | | (5 | ) | | | 181 | | | | (55 | ) | | | 126 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income from Continuing Operations | | | 171 | | | | — | | | | (18 | ) | | | 153 | | | | 143 | | | | 296 | |
Income from Discontinued Operations, Net of Tax | | | 23 | | | | (23 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net Income | | $ | 194 | | | $ | (23 | ) | | $ | (18 | ) | | $ | 153 | | | $ | 143 | | | $ | 296 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Per Share Amounts:5 | | | | | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.88 | | | $ | (0.10 | ) | | $ | (0.08 | ) | | $ | 0.69 | | | $ | 0.65 | | | $ | 1.34 | |
Diluted Earnings per Common Share | | $ | 0.87 | | | $ | (0.10 | ) | | $ | (0.08 | ) | | $ | 0.69 | | | $ | 0.64 | | | $ | 1.33 | |
| | | | | | |
Weighted-Average Number of Common Shares Outstanding: | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 221.5 | | | | 221.5 | | | | 221.5 | | | | 221.5 | | | | 221.5 | | | | 221.5 | |
Diluted | | | 223.0 | | | | 223.0 | | | | 223.0 | | | | 223.0 | | | | 223.0 | | | | 223.0 | |
| | | | | | |
Effective Tax Rate | | | 52.1 | % | | | n/a | | | | 21.5 | % | | | 54.2 | % | | | (63.1 | %) | | | 29.8 | % |
1 | Reflects the impact of (a) removing certain businesses that manufacture and sell surgical and exam gloves, surgical drapes and apparel and fluid management products in the U.S. market that were previously part of the Clinical and Medical Products segment of Cardinal Health and were retained by Cardinal Health upon the spinoff, and (b) the divestiture of the Company’s audiology business. |
2 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. These amounts do not consider an allocation of general corporate overhead costs not specifically related to the ISP business and therefore, selling, general and administrative expenses do not reflect any potential reductions in corporate costs in response to this change in the Company subsequent to the divestiture. |
3 | Reflects nonrecurring charges primarily related to the spinoff, nonrecurring charges related to the bridge loan entered into in connection with the spinoff, nonrecurring restructuring and acquisition integration charges, nonrecurring gain on sale of assets, nonrecurring charges related to a tax reserve adjustment ($58 million) for uncertain tax positions recorded in the quarter ended March 31, 2010, and nonrecurring tax items associated with the other non-tax adjustments. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
4 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
5 | Earnings per share calculations are performed separately for each adjustment presented. Therefore, the sum of the per share adjustments from the table above may not equal the adjusted per share totals presented. |
CAREFUSION CORPORATION
ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended September 30, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 617 | | | $ | — | | | $ | 617 | | | $ | — | | | $ | 617 | |
Operating Income | | | 71 | | | | — | | | | 71 | | | | 29 | | | | 100 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 291 | | | $ | (97 | ) | | $ | 194 | | | $ | — | | | $ | 194 | |
Operating Income | | | 11 | | | | (2 | ) | | | 9 | | | | 9 | | | | 18 | |
| |
| | Quarter Ended December 31, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 684 | | | $ | — | | | $ | 684 | | | $ | — | | | $ | 684 | |
Operating Income | | | 110 | | | | — | | | | 110 | | | | 18 | | | | 128 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 318 | | | $ | (116 | ) | | $ | 202 | | | $ | — | | | $ | 202 | |
Operating Income | | | 16 | | | | (3 | ) | | | 13 | | | | 9 | | | | 22 | |
| |
| | Six Months Ended December 31, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 1,301 | | | $ | — | | | $ | 1,301 | | | $ | — | | | $ | 1,301 | |
Operating Income | | | 181 | | | | — | | | | 181 | | | | 47 | | | | 228 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 609 | | | $ | (213 | ) | | $ | 396 | | | $ | — | | | $ | 396 | |
Operating Income | | | 27 | | | | (5 | ) | | | 22 | | | | 18 | | | | 40 | |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. |
2 | Reflects nonrecurring charges primarily related to the spinoff and nonrecurring restructuring and acquisition integration charges. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
CAREFUSION CORPORATION
ADJUSTED FINANCIAL INFORMATION
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | |
| | Quarter Ended September 30, 2009 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma 3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 617 | | | $ | — | | | $ | 617 | | | $ | — | | | $ | 617 | |
Operating Income | | | 101 | | | | — | | | | 101 | | | | 11 | | | | 112 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 306 | | | $ | (110 | ) | | $ | 196 | | | $ | — | | | $ | 196 | |
Operating Income | | | 16 | | | | (7 | ) | | | 9 | | | | 4 | | | | 13 | |
| |
| | Quarter Ended December 31, 2009 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 682 | | | $ | — | | | $ | 682 | | | $ | — | | | $ | 682 | |
Operating Income | | | 111 | | | | — | | | | 111 | | | | 15 | | | | 126 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 337 | | | $ | (127 | ) | | $ | 210 | | | $ | — | | | $ | 210 | |
Operating Income | | | 16 | | | | — | | | | 16 | | | | 6 | | | | 22 | |
| |
| | Quarter Ended March 31, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 629 | | | $ | — | | | $ | 629 | | | $ | — | | | $ | 629 | |
Operating Income | | | 77 | | | | — | | | | 77 | | | | 13 | | | | 90 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 323 | | | $ | (115 | ) | | $ | 208 | | | $ | — | | | $ | 208 | |
Operating Income | | | 16 | | | | (7 | ) | | | 9 | | | | 5 | | | | 14 | |
| |
| | Quarter Ended June 30, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Results | | | Nonrecurring Items2 | | | Adjusted Pro Forma3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 716 | | | $ | — | | | $ | 716 | | | $ | — | | | $ | 716 | |
Operating Income4 | | | 106 | | | | — | | | | 106 | | | | 17 | | | | 123 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 319 | | | $ | (105 | ) | | $ | 214 | | | $ | — | | | $ | 214 | |
Operating Income4 | | | 17 | | | | (9 | ) | | | 8 | | | | 8 | | | | 16 | |
| |
| | Year Ended June 30, 2010 | |
(in millions) | | GAAP As Reported | | | Pro Forma Adjustments 1 | | | Pro Forma Results | | | Nonrecurring Items 2 | | | Adjusted Pro Forma3 | |
Critical Care Technologies | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 2,644 | | | $ | — | | | $ | 2,644 | | | $ | — | | | $ | 2,644 | |
Operating Income4 | | | 395 | | | | — | | | | 395 | | | | 55 | | | | 450 | |
| | | | | |
Medical Technologies and Services | | | | | | | | | | | | | | | | | | | | |
Revenue | | $ | 1,285 | | | $ | (457 | ) | | $ | 828 | | | $ | — | | | $ | 828 | |
Operating Income4 | | | 65 | | | | (23 | ) | | | 42 | | | | 23 | | | | 65 | |
1 | Reflects the impact of the planned divestiture of the International Surgical Products (ISP) business which will be presented as discontinued operations starting in the quarter ending March 31, 2011. |
2 | Reflects nonrecurring charges primarily related to the spinoff and nonrecurring restructuring and acquisition integration charges. Certain nonrecurring costs previously reported were applicable to ISP and therefore were reclassified to be reflected as part of that business. |
3 | Adjusted pro forma financial information reflects GAAP results adjusted on a non-GAAP basis to exclude the ISP business and nonrecurring items noted. |
4 | Not included in segment operating income for the quarter and year ended June 30, 2010 is a gain on the sale of assets associated with the May 2010 divestiture of our Research Services business. |