Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'cah | ' |
Entity Registrant Name | 'CARDINAL HEALTH INC | ' |
Entity Central Index Key | '0000721371 | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 341,476,573 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | |
Revenue | $24,523 | $25,889 | |
Cost of products sold | 23,259 | 24,730 | |
Gross margin | 1,264 | 1,159 | |
Operating expenses: | ' | ' | |
Distribution, selling, general and administrative expenses | 732 | 690 | |
Restructuring and employee severance | 11 | [1] | 5 |
Amortization and other acquisition-related costs | 49 | 28 | |
Impairments and loss on disposal of assets | 0 | 1 | |
Litigation (recoveries)/charges, net | 1 | -22 | |
Operating earnings | 471 | 457 | |
Other income, net | -4 | -8 | |
Interest expense, net | 33 | 26 | |
Earnings before income taxes and discontinued operations | 442 | 439 | |
Provision for income taxes | 102 | 167 | |
Earnings from continuing operations | 340 | 272 | |
Loss from discontinued operations, net of tax | -1 | -1 | |
Net earnings | $339 | $271 | |
Basic earnings per common share: | ' | ' | |
Continuing operations | $1 | $0.80 | |
Discontinued operations | $0 | $0 | |
Net basic earnings per common share | $1 | $0.80 | |
Diluted earnings per common share: | ' | ' | |
Continuing operations | $0.99 | $0.79 | |
Discontinued operations | $0 | $0 | |
Net diluted earnings per common share | $0.99 | $0.79 | |
Weighted-average number of common shares outstanding: | ' | ' | |
Basic | 340 | 341 | |
Diluted | 344 | 344 | |
Cash dividends declared per common share | $0.30 | $0.24 | |
[1] | Includes $1 million of employee-related costs and $5 million of facility exit and other costs related to the restructuring within our Medical segment described further below. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Net earnings | $339 | $271 |
Other comprehensive income: | ' | ' |
Net change in foreign currency translation adjustments | 24 | 25 |
Net unrealized loss on derivative instruments, net of tax | 0 | -1 |
Total other comprehensive income, net of tax | 24 | 24 |
Total comprehensive income | $363 | $295 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $2,753 | $1,901 |
Trade receivables, net | 4,898 | 6,304 |
Inventories, net | 7,275 | 8,373 |
Prepaid expenses and other | 1,111 | 1,192 |
Total current assets | 16,037 | 17,770 |
Property and equipment, net | 1,445 | 1,489 |
Goodwill and other intangibles, net | 5,570 | 5,574 |
Other assets | 764 | 986 |
Total assets | 23,816 | 25,819 |
Current liabilities: | ' | ' |
Accounts payable | 10,442 | 12,295 |
Current portion of long-term obligations and other short-term borrowings | 190 | 168 |
Other accrued liabilities | 1,875 | 2,127 |
Total current liabilities | 12,507 | 14,590 |
Long-term obligations, less current portion | 3,693 | 3,686 |
Deferred income taxes and other liabilities | 1,319 | 1,568 |
Preferred shares, without par value: | ' | ' |
Authorized-500 thousand shares, Issued-none | 0 | 0 |
Common shares, without par value: | ' | ' |
Authorized-755 million shares, Issued-364 million shares at September 30, 2013 and June 30, 2013 | 2,941 | 2,953 |
Retained earnings | 4,273 | 4,038 |
Common shares in treasury, at cost: 23 million shares and 25 million shares at September 30, 2013 and June 30, 2013, respectively | -1,009 | -1,084 |
Accumulated other comprehensive income | 92 | 68 |
Total shareholders' equity | 6,297 | 5,975 |
Total liabilities and shareholders' equity | $23,816 | $25,819 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Preferred shares, No Par Value | ' | ' |
Preferred shares, Authorized | 0.5 | 0.5 |
Preferred shares, Issued | 0 | 0 |
Common shares, No Par Value | ' | ' |
Common shares, Authorized | 755 | 755 |
Common shares, Issued | 364 | 364 |
Common shares in treasury | 23 | 25 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net earnings | $339 | $271 |
Loss from discontinued operations, net of tax | 1 | 1 |
Earnings from continuing operations | 340 | 272 |
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 117 | 88 |
Impairments and loss on disposal of assets | 0 | 1 |
Share-based compensation | 24 | 24 |
Provision for bad debts | 12 | 1 |
Change in operating assets and liabilities, net of effects from acquisitions: | ' | ' |
Decrease/(increase) in trade receivables | 1,395 | -71 |
Decrease/(increase) in inventories | 1,098 | -207 |
Increase/(decrease) in accounts payable | -1,852 | 464 |
Other accrued liabilities and operating items, net | -183 | -4 |
Net cash provided by operating activities | 951 | 568 |
Cash flows from investing activities: | ' | ' |
Acquisition of subsidiaries, net of cash acquired | -25 | -100 |
Additions to property and equipment | -26 | -26 |
Proceeds from maturities of held-to-maturity securities | 0 | 23 |
Net cash used in investing activities | -51 | -103 |
Cash flows from financing activities: | ' | ' |
Net change in short-term borrowings | 20 | -10 |
Reduction of long-term obligations | 0 | -4 |
Proceeds from issuance of common shares | 102 | 21 |
Net tax disbursements from share-based compensation | -15 | -22 |
Dividends on common shares | -105 | -84 |
Purchase of treasury shares | -50 | -200 |
Net cash used in financing activities | -48 | -299 |
Net increase in cash and equivalents | 852 | 166 |
Cash and equivalents at beginning of period | 1,901 | 2,274 |
Cash and equivalents at end of period | $2,753 | $2,440 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Basis of Presentation | |
Our condensed consolidated financial statements include the accounts of all majority-owned and controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. References to "we," "our" and similar pronouns in this Quarterly Report on Form 10-Q refer to Cardinal Health, Inc. and its majority-owned and controlled subsidiaries unless the context requires otherwise. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the effective date of the acquisition or up to the date of disposal, respectively. | |
Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In addition, operating results presented for this fiscal 2014 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2014. | |
These condensed consolidated financial statements are unaudited and are presented pursuant to the rules and regulations of the SEC. Accordingly, the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (this "Form 10-Q") should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 (the "2013 Form 10-K"). In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. | |
Recent Financial Accounting Standards | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to reclassifications out of accumulated other comprehensive income ("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 8 in this Form 10-Q. 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 7 for additional information. | |
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. |
Acquisitions
Acquisitions | 3 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
Acquisitions | ||||
While we have completed acquisitions during the three months ended September 30, 2013, the pro forma results of operations and the results of operations for acquisitions since the acquisition date have not been separately disclosed because the effects were not significant enough compared to the consolidated financial statements, individually or in the aggregate. | ||||
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. The acquisition of AssuraMed, a provider of medical supplies to homecare providers and patients in the home, expands our ability to serve this patient base. The assessment of fair value is preliminary and is based on information that was available at the time the condensed consolidated financial statements were prepared. | ||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date for AssuraMed: | ||||
(in millions) | Amount | |||
Identifiable intangible assets | $ | 627 | ||
Cash and equivalents | 25 | |||
Trade receivables | 118 | |||
Inventories | 70 | |||
Prepaid expenses and other | 88 | |||
Property and equipment | 40 | |||
Accounts payable | (71 | ) | ||
Other accrued liabilities | (24 | ) | ||
Deferred income taxes and other liabilities | (180 | ) | ||
Total identifiable net assets acquired | 693 | |||
Goodwill | 1,402 | |||
Total net assets acquired | $ | 2,095 | ||
Restructuring_and_Employee_Sev
Restructuring and Employee Severance | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Restructuring and Employee Severance | ' | |||||||||||
Restructuring and Employee Severance | ||||||||||||
The following table summarizes restructuring and employee severance costs relating to our restructuring activities: | ||||||||||||
Three Months Ended September 30 | ||||||||||||
(in millions) | 2013 (3) | 2012 | ||||||||||
Employee-related costs (1) | $ | 4 | $ | 5 | ||||||||
Facility exit and other costs (2) | 7 | — | ||||||||||
Total restructuring and employee severance | $ | 11 | $ | 5 | ||||||||
-1 | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. | |||||||||||
-2 | Facility exit and other costs primarily consist of lease termination costs, accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services. | |||||||||||
-3 | Includes $1 million of employee-related costs and $5 million of facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||||||||
On January 30, 2013, we announced a restructuring plan within our Medical segment. Under this restructuring plan, among other things, we are moving production of procedure kits from our facility in Waukegan, Illinois to other facilities and selling property and consolidating office space in Waukegan, Illinois. | ||||||||||||
At this time, we estimate the total costs associated with this restructuring plan to be approximately $79 million on a pre-tax basis, of which $51 million was recognized in fiscal 2013 and $6 million was recognized during the three months ended September 30, 2013. Of the estimated $22 million remaining costs to be recognized through the end of fiscal 2014, approximately $8 million will be facility exit and other costs and $14 million will be an expected loss on disposal of the property in Waukegan, Illinois described above. We have evaluated this property and have determined that at September 30, 2013 it does not meet the criteria for classification as held for sale. | ||||||||||||
The following table summarizes activity related to liabilities associated with restructuring and employee severance: | ||||||||||||
(in millions) | Employee- | Facility Exit | Total | |||||||||
Related Costs | and Other Costs | |||||||||||
Balance at June 30, 2013 | $ | 55 | $ | 2 | $ | 57 | ||||||
Additions | 7 | — | 7 | |||||||||
Payments and other adjustments | (15 | ) | (1 | ) | (16 | ) | ||||||
Balance at September 30, 2013 | $ | 47 | $ | 1 | $ | 48 | ||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
Goodwill | ||||||||||||
The following table summarizes the changes in the carrying amount of goodwill, by segment and in total: | ||||||||||||
(in millions) | Pharmaceutical | Medical | Total | |||||||||
Balance at June 30, 2013 | $ | 2,094 | $ | 2,507 | $ | 4,601 | ||||||
Goodwill acquired, net of purchase price adjustments | 4 | 8 | 12 | |||||||||
Foreign currency translation adjustments and other | 3 | 3 | 6 | |||||||||
Balance at September 30, 2013 | $ | 2,101 | $ | 2,518 | $ | 4,619 | ||||||
Other Intangible Assets | ||||||||||||
Other intangible assets are amortized over periods ranging from one to twenty years. The following tables summarize other intangible assets by class at: | ||||||||||||
September 30, 2013 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 11 | $ | — | $ | 11 | ||||||
Total indefinite-life intangibles | 11 | — | 11 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 989 | 270 | 719 | |||||||||
Trademarks, trade names and patents | 213 | 55 | 158 | |||||||||
Non-compete agreements | 15 | 11 | 4 | |||||||||
Other | 115 | 56 | 59 | |||||||||
Total definite-life intangibles | 1,332 | 392 | 940 | |||||||||
Total other intangible assets | $ | 1,343 | $ | 392 | $ | 951 | ||||||
June 30, 2013 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 11 | $ | — | $ | 11 | ||||||
Total indefinite-life intangibles | 11 | — | 11 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 982 | 230 | 752 | |||||||||
Trademarks, trade names and patents | 209 | 49 | 160 | |||||||||
Non-compete agreements | 15 | 10 | 5 | |||||||||
Other | 101 | 56 | 45 | |||||||||
Total definite-life intangibles | 1,307 | 345 | 962 | |||||||||
Total other intangible assets | $ | 1,318 | $ | 345 | $ | 973 | ||||||
Total amortization of intangible assets for the three months ended September 30, 2013 and 2012 was $46 million and $21 million, respectively. Estimated annual amortization of intangible assets for the remainder of fiscal 2014 through 2018 is as follows: $136 million, $154 million, $140 million, $128 million and $94 million. |
Income_Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Fluctuations in our provision for income taxes as a percentage of pretax earnings (“effective tax rate”) are due to changes in international and U.S. state effective tax rates and discrete items. | |
During the three months ended September 30, 2013, the effective tax rate of 23.2 percent was impacted by net favorable discrete items of $61 million, which reduced the rate by 13.7 percentage points. The discrete items include the favorable impact of the settlement of federal and state tax controversies ($63 million). | |
During the three months ended September 30, 2012, the effective tax rate of 38.1 percent was impacted by net unfavorable discrete items of $4 million, which increased the rate by 1.0 percentage point. The discrete items include unfavorable amounts related to remeasurement of certain unrecognized tax benefits. | |
We had $452 million and $650 million of unrecognized tax benefits at September 30, 2013 and June 30, 2013, respectively. The September 30, 2013 and June 30, 2013 balances include $281 million and $371 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We include the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the condensed consolidated balance sheets. | |
We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At September 30, 2013 and June 30, 2013 we had $131 million and $198 million, respectively, accrued for the payment of interest and penalties. These balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the condensed consolidated balance sheets. | |
It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service ("IRS") or other taxing authorities, including proposed assessments of additional tax, possible settlement of audit issues, reassessment of existing unrecognized tax benefits or the expiration of applicable statutes of limitations. We estimate that the range of the possible change in unrecognized tax benefits within the next 12 months is a decrease of approximately $20 million to an increase of approximately $5 million, exclusive of penalties and interest. | |
We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. We are generally subject to audit by taxing authorities for fiscal years 2003 through the current fiscal year. | |
During the three months ended September 30, 2013, the IRS closed audits of fiscal years 2003 through 2005. The IRS is currently conducting audits of fiscal years 2006 through 2010, and our transfer pricing arrangements continue to be under consideration as part of these audits. While the IRS has made and could make proposed adjustments to our transfer pricing arrangements, or other matters, we are defending our reported tax positions, and have accounted for the unrecognized tax benefits associated with our tax positions. | |
We are a party to a tax matters agreement with CareFusion Corporation ("CareFusion"), under which CareFusion is obligated to indemnify us for certain tax exposures and transaction taxes prior to our fiscal 2010 spin-off of CareFusion. The indemnification receivable was $171 million and $186 million at September 30, 2013 and June 30, 2013, respectively, and is included in other assets in the condensed consolidated balance sheets. |
Contingent_Liabilities_and_Lit
Contingent Liabilities and Litigation | 3 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent liabilities and litigation | ' |
Contingent Liabilities and Litigation | |
Legal Proceedings | |
We become involved from time to time in disputes, litigation and regulatory matters incidental to our business, including governmental investigations and enforcement actions, personal injury claims, employment matters, commercial disputes, intellectual property matters, government contract compliance matters, disputes regarding environmental clean-up costs, litigation in connection with acquisitions and divestitures, and other matters arising out of the normal conduct of our business. We intend to vigorously defend ourselves in such litigation. | |
We may be named from time to time in qui tam actions, which are cases initiated by private parties purporting to act on behalf of federal or state governments that allege that false claims have been submitted or have been caused to be submitted for payment by the government. After a qui tam action has been filed, the government must investigate and determine whether to intervene in the matter. These actions may remain under seal while the government makes this determination. | |
In addition, we occasionally may suspect that products we manufacture, market or distribute do not meet product specifications, published standards or regulatory requirements. In such circumstances, we investigate and take appropriate corrective action. Such actions can lead to product recalls, costs to repair or replace affected products, temporary interruptions in product sales and action by regulators. | |
We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review contingencies to determine whether our accruals and related disclosures are adequate. The amount of ultimate loss may differ from these estimates. | |
We are unable to estimate a range of reasonably possible loss for matters described below, since damages or fines have not been specified and the proceedings are in early stages with significant uncertainty as to factual issues. We do not believe, based on currently available information, that the outcomes of these matters will have a material adverse effect on our financial condition, though the outcomes could be material to our results of operations for a particular period. | |
We recognize income from the favorable outcome of litigation when we receive the associated cash or assets. | |
We recognize estimated loss contingencies for litigation and regulatory matters and income from favorable resolution of litigation in litigation (recoveries)/charges, net in our condensed consolidated statements of earnings. | |
Lakeland, Florida Distribution Center DEA Investigation and Related Matters | |
In February 2012, the U.S. Drug Enforcement Administration (the "DEA") issued an order to show cause and immediate suspension of our Lakeland, Florida distribution center's registration to distribute controlled substances, asserting that we failed to maintain required controls against the diversion of controlled substances. In May 2012, we entered into a settlement agreement with the DEA under which our Lakeland registration will remain suspended until May 2014 and the DEA confirmed that it was planning no further administrative actions at any of our other facilities based on conduct prior to the settlement. The settlement agreement did not foreclose the possibility of the U.S. Department of Justice (the “DOJ”) seeking civil fines for conduct covered by the settlement agreement. In that regard, we are providing information to and communicating with local offices within the DEA and the DOJ. | |
State of West Virginia vs. Cardinal Health, Inc. | |
In June 2012, the West Virginia Attorney General filed complaints against 14 pharmaceutical wholesale distributors, including us, in the Circuit Court of Boone County, West Virginia alleging, among other things, that the distributors failed to maintain effective controls to guard against diversion of controlled substances in West Virginia, failed to report suspicious orders of controlled substances in accordance with the West Virginia Uniform Controlled Substances Act and were negligent in distributing controlled substances to pharmacies that serve individuals who abuse controlled substances. In addition to injunctive and other equitable relief, the complaints seek monetary damages and the creation of a court-supervised fund, to be financed by the defendants in these actions, for a medical monitoring program focused on prescription drug abuse. | |
Qui Tam Action | |
Our P4 Healthcare subsidiaries and a former P4 Healthcare employee were named as additional defendants with another third-party defendant in a civil qui tam action filed in the U.S. District Court for the Central District of California. The action, which was filed under seal in January 2012 and was unsealed in July 2013, alleged violations of the federal healthcare fraud and abuse laws and federal False Claims Act, both before and after we acquired P4 Healthcare. Following an investigation, the DOJ declined to intervene as to us, and, together with the claimant, dismissed us from the action. | |
DOJ Civil Investigative Demand | |
In September 2012, we received a civil investigative demand from the DOJ under the Federal False Claims Act. The demand required us to produce documents relating to the structure of discounts offered or provided to our customers. We believe the focus of the investigation to have been whether the discounts complied with federal healthcare fraud and abuse laws. In October 2013, the DOJ informed us that it was closing its investigation. | |
Antitrust Litigation Proceeds | |
During the three months ended September 30, 2012, we recognized $22 million of income resulting from settlements of class action antitrust claims in which we were a class member. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: | ||||||||||||||||
Level 1 - | Observable prices in active markets for identical assets and liabilities. | |||||||||||||||
Level 2 - | Observable inputs other than quoted prices in active markets for identical assets and liabilities. | |||||||||||||||
Level 3 - | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. | |||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||
The following tables present the fair values for those assets measured on a recurring basis at: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 810 | $ | — | $ | — | $ | 810 | ||||||||
Forward contracts (2) | — | 20 | — | 20 | ||||||||||||
Other investments (3) | 97 | — | — | 97 | ||||||||||||
Total | $ | 907 | $ | 20 | $ | — | $ | 927 | ||||||||
June 30, 2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 348 | $ | — | $ | — | $ | 348 | ||||||||
Forward contracts (2) | — | 12 | — | 12 | ||||||||||||
Other investments (3) | 89 | — | — | 89 | ||||||||||||
Total | $ | 437 | $ | 12 | $ | — | $ | 449 | ||||||||
-1 | Cash equivalents are comprised of highly liquid investments purchased with a maturity of three months or less. The carrying value of these cash equivalents approximates fair value due to their short-term maturities. | |||||||||||||||
-2 | The fair value of interest rate swaps, foreign currency contracts and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets. | |||||||||||||||
-3 | The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds primarily invest in the equity securities of companies with large market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at September 30, 2013 and June 30, 2013 approximate fair value due to their short-term maturities. | ||||||||||||||||
The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: | ||||||||||||||||
(in millions) | September 30, | June 30, | ||||||||||||||
2013 | 2013 | |||||||||||||||
Estimated fair value | $ | 3,916 | $ | 3,899 | ||||||||||||
Carrying amount | 3,883 | 3,854 | ||||||||||||||
The estimated fair value of our long-term obligations and other short-term borrowings is estimated based on either the quoted market prices for the same or similar issues or other inputs derived from available market information, which represents a Level 2 measurement. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Shareholders' Equity | ' | |||||||||||
Shareholders' Equity | ||||||||||||
During the three months ended September 30, 2013, we repurchased 1.0 million common shares having an aggregate cost of $50 million. The average price paid per common share was $51.65. | ||||||||||||
During the three months ended September 30, 2012, we repurchased 4.9 million common shares having an aggregate cost of $200 million. The average price paid per common share was $40.63. | ||||||||||||
We funded the repurchases with available cash. The common shares repurchased are held in treasury to be used for general corporate purposes. | ||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
The following table summarizes the changes in the balance of AOCI by component and in total: | ||||||||||||
(in millions) | Foreign | Unrealized | Accumulated Other | |||||||||
Currency | Gain on | Comprehensive | ||||||||||
Translation | Derivatives, | Income | ||||||||||
Adjustments | net of tax | |||||||||||
Balance at June 30, 2013 | $ | 54 | $ | 14 | $ | 68 | ||||||
Other comprehensive income, net of tax before reclassifications | 24 | 1 | 25 | |||||||||
Amounts reclassified to earnings | — | (1 | ) | (1 | ) | |||||||
Total other comprehensive income, net of tax | 24 | — | 24 | |||||||||
Balance at September 30, 2013 | $ | 78 | $ | 14 | $ | 92 | ||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
Earnings Per Share | ||||||
The following table reconciles the number of common shares used to compute basic and diluted earnings per share: | ||||||
Three Months Ended September 30 | ||||||
(in millions) | 2013 | 2012 | ||||
Weighted-average common shares–basic | 340 | 341 | ||||
Effect of dilutive securities: | ||||||
Employee stock options, restricted share units and performance share units | 4 | 3 | ||||
Weighted-average common shares–diluted | 344 | 344 | ||||
The potentially dilutive employee stock options, restricted share units and performance share units that were antidilutive for the three months ended September 30, 2013 and 2012 were 1 million and 13 million, respectively. |
Segment_Information
Segment Information | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Segment Information | ' | |||||||
Segment Information | ||||||||
Our operations are principally managed on a products and services basis and are comprised of two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. The factors for determining the reportable segments include the manner in which management evaluates our performance combined with the nature of the individual business activities. | ||||||||
The following table presents revenue for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Pharmaceutical (1) | $ | 21,813 | $ | 23,498 | ||||
Medical | 2,711 | 2,393 | ||||||
Total segment revenue | 24,524 | 25,891 | ||||||
Corporate (2) | (1 | ) | (2 | ) | ||||
Total revenue | $ | 24,523 | $ | 25,889 | ||||
-1 | The decrease in Pharmaceutical segment revenue is primarily due to the expiration of our pharmaceutical distribution contracts with Walgreen Co. ("Walgreens") on August 31, 2013 and Express Scripts, Inc. on September 30, 2012. | |||||||
-2 | Corporate revenue consists of the elimination of inter-segment revenue. | |||||||
We evaluate segment performance based upon segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment distribution, selling, general and administrative ("SG&A") expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate expenses for shared functions, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology and legal. Corporate expenses are allocated to the segments based upon headcount, level of benefit provided and ratable allocation. Other income, net, interest expense, net and provision for income taxes are not allocated to the segments. | ||||||||
Restructuring and employee severance, amortization and other acquisition-related costs, impairments and loss on disposal of assets and litigation (recoveries)/charges, net are not allocated to the segments. In addition, certain investment and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. We encourage our segments and corporate functions to identify investment projects that will promote innovation and provide future returns. As approval decisions for such projects are dependent upon executive management, the expenses for such projects are often retained at Corporate. Investment spending within Corporate was $3 million and zero for the three months ended September 30, 2013 and 2012, respectively. | ||||||||
The following table presents segment profit by reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Pharmaceutical | $ | 433 | $ | 400 | ||||
Medical | 106 | 74 | ||||||
Total segment profit | 539 | 474 | ||||||
Corporate | (68 | ) | (17 | ) | ||||
Total operating earnings | $ | 471 | $ | 457 | ||||
The following table presents total assets for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated balance sheets at the dates indicated below: | ||||||||
(in millions) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
Pharmaceutical (1) | $ | 13,874 | $ | 16,258 | ||||
Medical | 6,473 | 6,521 | ||||||
Corporate | 3,469 | 3,040 | ||||||
Total assets | $ | 23,816 | $ | 25,819 | ||||
-1 | The decrease in Pharmaceutical segment assets is primarily due to the decrease in trade receivables, net and inventories, net as a result of the expiration of our pharmaceutical distribution contract with Walgreens. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | |||||||
Share-Based Compensation | ||||||||
Share-Based Compensation Plans | ||||||||
We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. The following table provides total share-based compensation expense by type of award: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Restricted share unit expense | $ | 16 | $ | 15 | ||||
Employee stock option expense | 5 | 7 | ||||||
Performance share unit expense | 3 | 2 | ||||||
Total share-based compensation | $ | 24 | $ | 24 | ||||
The total tax benefit related to share-based compensation for the three months ended September 30, 2013 and 2012 was $9 million and $8 million, respectively. | ||||||||
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 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 | Weighted-Average Exercise | ||||||
Options | Price per Common Share | |||||||
Outstanding at June 30, 2013 | 15 | $ | 36.97 | |||||
Granted | 2 | 51.5 | ||||||
Exercised | (3 | ) | 39.64 | |||||
Canceled and forfeited | — | — | ||||||
Outstanding at September 30, 2013 | 14 | $ | 38.6 | |||||
Exercisable at September 30, 2013 | 10 | $ | 35.31 | |||||
At September 30, 2013, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $38 million, which is expected to be recognized over a weighted-average period of two years. The following table provides additional data related to stock option activity: | ||||||||
(in millions, except contractual lives) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
Aggregate intrinsic value of outstanding options at period end | $ | 192 | $ | 156 | ||||
Aggregate intrinsic value of exercisable options at period end | $ | 163 | $ | 113 | ||||
Weighted-average remaining contractual life of outstanding options (in years) | 5 | 4 | ||||||
Weighted-average remaining contractual life of exercisable options (in years) | 3 | 3 | ||||||
Stock options are granted to our officers and certain employees. The fair values were estimated on the grant date using a lattice valuation model. We believe the lattice model provides reasonable estimates because it has the ability to take into account individual exercise patterns based on changes in our stock price and other variables, and it provides for a range of input assumptions. | ||||||||
Restricted Share Units | ||||||||
Restricted share units granted under the Plans generally vest in equal annual installments over three years. The fair value is determined by the grant date market price of our common shares. Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards. | ||||||||
The following table summarizes all transactions related to restricted share units under the Plans: | ||||||||
(in millions, except per share amounts) | Restricted Share Units | Weighted-Average Grant Date Fair Value per Share | ||||||
Nonvested at June 30, 2013 | 3 | $ | 38.74 | |||||
Granted | 1 | 51.51 | ||||||
Vested | (1 | ) | 37.45 | |||||
Canceled and forfeited | — | — | ||||||
Nonvested at September 30, 2013 | 3 | $ | 44.77 | |||||
At September 30, 2013, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $113 million, which is expected to be recognized over a weighted-average period of two years. | ||||||||
Performance Share Units | ||||||||
Performance share units vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 200 percent of the target award amount. The fair value of performance share units is determined by the grant date market price of our common shares. The compensation expense associated with nonvested performance share units is dependent on our periodic assessment of the probability of the targets being achieved and our estimate of the number of shares that will ultimately be issued. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. | ||||||||
During the three months ended September 30, 2013, 274 thousand performance share units were granted at target at a weighted-average fair value per share of $51.49. Also during the three months ended September 30, 2013, 157 thousand performance share units with an initial two-year performance period and a weighted-average grant date fair value per share of $41.60 vested based on achievement of 143 percent of the target performance goal. At September 30, 2013, there were 870 thousand nonvested performance share units with a weighted-average grant date fair value per share of $44.40. | ||||||||
At September 30, 2013, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $24 million, which is expected to be recognized over a weighted-average period of two years. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On October 15, 2013, we reduced our committed receivables sales facility program from $950 million to $700 million in light of the expiration of our pharmaceutical distribution contract with Walgreens. Our committed receivables sales facility program is available to us through Cardinal Health Funding, LLC ("CHF"), which was organized for the sole purpose of buying receivables and selling undivided interests in those receivables to third-party purchasers. Although consolidated in accordance with GAAP, CHF is a separate legal entity from Cardinal Health and from our subsidiary that sells the receivables to CHF. CHF is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its creditors. | |
On October 29, 2013, our Board of Directors approved a $1.0 billion share repurchase program, which expires on December 31, 2016. The $350 million remaining under our current repurchase authorization also remains in effect. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation, Policy | ' |
Basis of Presentation | |
Our condensed consolidated financial statements include the accounts of all majority-owned and controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. References to "we," "our" and similar pronouns in this Quarterly Report on Form 10-Q refer to Cardinal Health, Inc. and its majority-owned and controlled subsidiaries unless the context requires otherwise. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the effective date of the acquisition or up to the date of disposal, respectively. | |
Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include all of the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In addition, operating results presented for this fiscal 2014 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2014. | |
These condensed consolidated financial statements are unaudited and are presented pursuant to the rules and regulations of the SEC. Accordingly, the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 (this "Form 10-Q") should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2013 (the "2013 Form 10-K"). In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. | |
Recent Financial Accounting Standards, Policy | ' |
Recent Financial Accounting Standards | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to reclassifications out of accumulated other comprehensive income ("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 8 in this Form 10-Q. 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 7 for additional information. | |
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. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of estimated fair values of the assets acquired and liabilities assumed | ' | |||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date for AssuraMed: | ||||
(in millions) | Amount | |||
Identifiable intangible assets | $ | 627 | ||
Cash and equivalents | 25 | |||
Trade receivables | 118 | |||
Inventories | 70 | |||
Prepaid expenses and other | 88 | |||
Property and equipment | 40 | |||
Accounts payable | (71 | ) | ||
Other accrued liabilities | (24 | ) | ||
Deferred income taxes and other liabilities | (180 | ) | ||
Total identifiable net assets acquired | 693 | |||
Goodwill | 1,402 | |||
Total net assets acquired | $ | 2,095 | ||
Restructuring_and_Employee_Sev1
Restructuring and Employee Severance (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Summary of restructuring and employee severance relating to restructuring activity | ' | |||||||||||
The following table summarizes restructuring and employee severance costs relating to our restructuring activities: | ||||||||||||
Three Months Ended September 30 | ||||||||||||
(in millions) | 2013 (3) | 2012 | ||||||||||
Employee-related costs (1) | $ | 4 | $ | 5 | ||||||||
Facility exit and other costs (2) | 7 | — | ||||||||||
Total restructuring and employee severance | $ | 11 | $ | 5 | ||||||||
-1 | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. | |||||||||||
-2 | Facility exit and other costs primarily consist of lease termination costs, accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services. | |||||||||||
-3 | Includes $1 million of employee-related costs and $5 million of facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||||||||
Schedule of activity related to liabilities associated with restructuring and employee severance | ' | |||||||||||
The following table summarizes activity related to liabilities associated with restructuring and employee severance: | ||||||||||||
(in millions) | Employee- | Facility Exit | Total | |||||||||
Related Costs | and Other Costs | |||||||||||
Balance at June 30, 2013 | $ | 55 | $ | 2 | $ | 57 | ||||||
Additions | 7 | — | 7 | |||||||||
Payments and other adjustments | (15 | ) | (1 | ) | (16 | ) | ||||||
Balance at September 30, 2013 | $ | 47 | $ | 1 | $ | 48 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill by Reportable Segment | ' | |||||||||||
The following table summarizes the changes in the carrying amount of goodwill, by segment and in total: | ||||||||||||
(in millions) | Pharmaceutical | Medical | Total | |||||||||
Balance at June 30, 2013 | $ | 2,094 | $ | 2,507 | $ | 4,601 | ||||||
Goodwill acquired, net of purchase price adjustments | 4 | 8 | 12 | |||||||||
Foreign currency translation adjustments and other | 3 | 3 | 6 | |||||||||
Balance at September 30, 2013 | $ | 2,101 | $ | 2,518 | $ | 4,619 | ||||||
Schedule of Intangible Assets | ' | |||||||||||
The following tables summarize other intangible assets by class at: | ||||||||||||
September 30, 2013 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 11 | $ | — | $ | 11 | ||||||
Total indefinite-life intangibles | 11 | — | 11 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 989 | 270 | 719 | |||||||||
Trademarks, trade names and patents | 213 | 55 | 158 | |||||||||
Non-compete agreements | 15 | 11 | 4 | |||||||||
Other | 115 | 56 | 59 | |||||||||
Total definite-life intangibles | 1,332 | 392 | 940 | |||||||||
Total other intangible assets | $ | 1,343 | $ | 392 | $ | 951 | ||||||
June 30, 2013 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 11 | $ | — | $ | 11 | ||||||
Total indefinite-life intangibles | 11 | — | 11 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 982 | 230 | 752 | |||||||||
Trademarks, trade names and patents | 209 | 49 | 160 | |||||||||
Non-compete agreements | 15 | 10 | 5 | |||||||||
Other | 101 | 56 | 45 | |||||||||
Total definite-life intangibles | 1,307 | 345 | 962 | |||||||||
Total other intangible assets | $ | 1,318 | $ | 345 | $ | 973 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following tables present the fair values for those assets measured on a recurring basis at: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 810 | $ | — | $ | — | $ | 810 | ||||||||
Forward contracts (2) | — | 20 | — | 20 | ||||||||||||
Other investments (3) | 97 | — | — | 97 | ||||||||||||
Total | $ | 907 | $ | 20 | $ | — | $ | 927 | ||||||||
June 30, 2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 348 | $ | — | $ | — | $ | 348 | ||||||||
Forward contracts (2) | — | 12 | — | 12 | ||||||||||||
Other investments (3) | 89 | — | — | 89 | ||||||||||||
Total | $ | 437 | $ | 12 | $ | — | $ | 449 | ||||||||
-1 | Cash equivalents are comprised of highly liquid investments purchased with a maturity of three months or less. The carrying value of these cash equivalents approximates fair value due to their short-term maturities. | |||||||||||||||
-2 | The fair value of interest rate swaps, foreign currency contracts and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets. | |||||||||||||||
-3 | The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds primarily invest in the equity securities of companies with large market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. | |||||||||||||||
Summary of the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts | ' | |||||||||||||||
The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: | ||||||||||||||||
(in millions) | September 30, | June 30, | ||||||||||||||
2013 | 2013 | |||||||||||||||
Estimated fair value | $ | 3,916 | $ | 3,899 | ||||||||||||
Carrying amount | 3,883 | 3,854 | ||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of the changes in the balance of AOCI by component and in total | ' | |||||||||||
The following table summarizes the changes in the balance of AOCI by component and in total: | ||||||||||||
(in millions) | Foreign | Unrealized | Accumulated Other | |||||||||
Currency | Gain on | Comprehensive | ||||||||||
Translation | Derivatives, | Income | ||||||||||
Adjustments | net of tax | |||||||||||
Balance at June 30, 2013 | $ | 54 | $ | 14 | $ | 68 | ||||||
Other comprehensive income, net of tax before reclassifications | 24 | 1 | 25 | |||||||||
Amounts reclassified to earnings | — | (1 | ) | (1 | ) | |||||||
Total other comprehensive income, net of tax | 24 | — | 24 | |||||||||
Balance at September 30, 2013 | $ | 78 | $ | 14 | $ | 92 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Reconciliation of common shares used to compute basic and diluted earnings per share | ' | |||||
The following table reconciles the number of common shares used to compute basic and diluted earnings per share: | ||||||
Three Months Ended September 30 | ||||||
(in millions) | 2013 | 2012 | ||||
Weighted-average common shares–basic | 340 | 341 | ||||
Effect of dilutive securities: | ||||||
Employee stock options, restricted share units and performance share units | 4 | 3 | ||||
Weighted-average common shares–diluted | 344 | 344 | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Revenue by Reportable Segment | ' | |||||||
The following table presents revenue for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Pharmaceutical (1) | $ | 21,813 | $ | 23,498 | ||||
Medical | 2,711 | 2,393 | ||||||
Total segment revenue | 24,524 | 25,891 | ||||||
Corporate (2) | (1 | ) | (2 | ) | ||||
Total revenue | $ | 24,523 | $ | 25,889 | ||||
-1 | The decrease in Pharmaceutical segment revenue is primarily due to the expiration of our pharmaceutical distribution contracts with Walgreen Co. ("Walgreens") on August 31, 2013 and Express Scripts, Inc. on September 30, 2012. | |||||||
-2 | Corporate revenue consists of the elimination of inter-segment revenue. | |||||||
Segment Profit by Reportable Segment | ' | |||||||
The following table presents segment profit by reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated statements of earnings: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Pharmaceutical | $ | 433 | $ | 400 | ||||
Medical | 106 | 74 | ||||||
Total segment profit | 539 | 474 | ||||||
Corporate | (68 | ) | (17 | ) | ||||
Total operating earnings | $ | 471 | $ | 457 | ||||
Assets by Reportable Segments | ' | |||||||
The following table presents total assets for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated balance sheets at the dates indicated below: | ||||||||
(in millions) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
Pharmaceutical (1) | $ | 13,874 | $ | 16,258 | ||||
Medical | 6,473 | 6,521 | ||||||
Corporate | 3,469 | 3,040 | ||||||
Total assets | $ | 23,816 | $ | 25,819 | ||||
-1 | The decrease in Pharmaceutical segment assets is primarily due to the decrease in trade receivables, net and inventories, net as a result of the expiration of our pharmaceutical distribution contract with Walgreens. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of total share-based compensation expense by type of award | ' | |||||||
The following table provides total share-based compensation expense by type of award: | ||||||||
Three Months Ended September 30 | ||||||||
(in millions) | 2013 | 2012 | ||||||
Restricted share unit expense | $ | 16 | $ | 15 | ||||
Employee stock option expense | 5 | 7 | ||||||
Performance share unit expense | 3 | 2 | ||||||
Total share-based compensation | $ | 24 | $ | 24 | ||||
Schedule of all stock option transactions under the Plans | ' | |||||||
The following table summarizes all stock option transactions under the Plans: | ||||||||
(in millions, except per share amounts) | Stock | Weighted-Average Exercise | ||||||
Options | Price per Common Share | |||||||
Outstanding at June 30, 2013 | 15 | $ | 36.97 | |||||
Granted | 2 | 51.5 | ||||||
Exercised | (3 | ) | 39.64 | |||||
Canceled and forfeited | — | — | ||||||
Outstanding at September 30, 2013 | 14 | $ | 38.6 | |||||
Exercisable at September 30, 2013 | 10 | $ | 35.31 | |||||
Schedule of additional data related to stock option activity | ' | |||||||
The following table provides additional data related to stock option activity: | ||||||||
(in millions, except contractual lives) | September 30, | June 30, | ||||||
2013 | 2013 | |||||||
Aggregate intrinsic value of outstanding options at period end | $ | 192 | $ | 156 | ||||
Aggregate intrinsic value of exercisable options at period end | $ | 163 | $ | 113 | ||||
Weighted-average remaining contractual life of outstanding options (in years) | 5 | 4 | ||||||
Weighted-average remaining contractual life of exercisable options (in years) | 3 | 3 | ||||||
Schedule of all transactions related to restricted share units under the Plans | ' | |||||||
The following table summarizes all transactions related to restricted share units under the Plans: | ||||||||
(in millions, except per share amounts) | Restricted Share Units | Weighted-Average Grant Date Fair Value per Share | ||||||
Nonvested at June 30, 2013 | 3 | $ | 38.74 | |||||
Granted | 1 | 51.51 | ||||||
Vested | (1 | ) | 37.45 | |||||
Canceled and forfeited | — | — | ||||||
Nonvested at September 30, 2013 | 3 | $ | 44.77 | |||||
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 18, 2013 |
AssuraMed | |||
Business Acquisition | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | 18-Mar-13 |
Payments to Acquire Businesses, Net of Cash Acquired | $25 | $100 | $2,070 |
Acquisitions_Schedule_of_Estim
Acquisitions (Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Business Acquisition | ' | ' |
Goodwill | $4,619 | $4,601 |
AssuraMed | ' | ' |
Business Acquisition | ' | ' |
Identifiable intangible assets | 627 | ' |
Cash and equivalents | 25 | ' |
Trade receivables | 118 | ' |
Inventories | 70 | ' |
Prepaid expenses and other | 88 | ' |
Property and equipment | 40 | ' |
Accounts payable | -71 | ' |
Other accrued liabilities | -24 | ' |
Deferred income taxes and other liabilities | -180 | ' |
Total identifiable net assets acquired | 693 | ' |
Goodwill | 1,402 | ' |
Total net assets acquired | $2,095 | ' |
Restructuring_and_Employee_Sev2
Restructuring and Employee Severance (Narrative) (Details) (Fiscal 2013 Medical Restructuring, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring and Related Activities, Initiation Date | ' | ' | 30-Jan-13 |
Restructuring and Related Cost, Expected Cost | $79 | $22 | ' |
Restructuring and Related Cost, Cost Incurred to Date | 6 | ' | 51 |
Facility Exit and Other Costs | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | 8 | ' |
Loss on Disposal of Assets | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | $14 | ' |
Restructuring_and_Employee_Sev3
Restructuring and Employee Severance (Activity Related to Restructuring and Employee Severance Costs) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Restructuring Cost and Reserve | ' | ' | ||
Employee-related costs | $4 | [1],[2] | $5 | [1] |
Facility exit and other costs | 7 | [2],[3] | 0 | [3] |
Restructuring and employee severance | 11 | [2] | 5 | |
Fiscal 2013 Medical Restructuring | ' | ' | ||
Restructuring Cost and Reserve | ' | ' | ||
Employee-related costs | 1 | ' | ||
Facility exit and other costs | $5 | ' | ||
[1] | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated and duplicate payroll costs during transition periods. | |||
[2] | Includes $1 million of employee-related costs and $5 million of facility exit and other costs related to the restructuring within our Medical segment described further below. | |||
[3] | Facility exit and other costs primarily consist of lease termination costs, accelerated depreciation, equipment relocation costs, project consulting fees and costs associated with restructuring our delivery of information technology infrastructure services. |
Restructuring_and_Employee_Sev4
Restructuring and Employee Severance (Liabilities Associated with Restructuring and Employee Severance Activities) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Employee-Related Costs | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance at June 30, 2013 | $55 |
Additions to Restructuring Reserve | 7 |
Restructuring Reserve, Period Increase (Decrease) | -15 |
Balance at September 30, 2013 | 47 |
Facility Exit and Other Costs | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance at June 30, 2013 | 2 |
Additions to Restructuring Reserve | 0 |
Restructuring Reserve, Period Increase (Decrease) | -1 |
Balance at September 30, 2013 | 1 |
Total | ' |
Restructuring Reserve [Roll Forward] | ' |
Balance at June 30, 2013 | 57 |
Additions to Restructuring Reserve | 7 |
Restructuring Reserve, Period Increase (Decrease) | -16 |
Balance at September 30, 2013 | $48 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets | ' | ' |
Amortization of Intangible Assets | $46 | $21 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 136 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 154 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 140 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 128 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $94 | ' |
Minimum | ' | ' |
Goodwill and Intangible Assets | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | ' |
Maximum | ' | ' |
Goodwill and Intangible Assets | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Reportable Segment) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Goodwill [Roll Forward] | ' |
Balance at June 30, 2013 | $4,601 |
Goodwill acquired, net of purchase price adjustments | 12 |
Foreign currency translation adjustments and other | 6 |
Balance at September 30, 2013 | 4,619 |
Pharmaceutical | ' |
Goodwill [Roll Forward] | ' |
Balance at June 30, 2013 | 2,094 |
Goodwill acquired, net of purchase price adjustments | 4 |
Foreign currency translation adjustments and other | 3 |
Balance at September 30, 2013 | 2,101 |
Medical | ' |
Goodwill [Roll Forward] | ' |
Balance at June 30, 2013 | 2,507 |
Goodwill acquired, net of purchase price adjustments | 8 |
Foreign currency translation adjustments and other | 3 |
Balance at September 30, 2013 | $2,518 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Total Intangibles, Gross | $1,343 | $1,318 |
Total Intangibles, Accumulated Amortization | 392 | 345 |
Intangible Assets, Net (Excluding Goodwill) | 951 | 973 |
Indefinite-life intangibles: | ' | ' |
Indefinite-Lived Intangible Assets, Gross | 11 | 11 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 11 | 11 |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,332 | 1,307 |
Finite-Lived Intangible Assets, Accumulated Amortization | 392 | 345 |
Finite-Lived Intangible Assets, Net | 940 | 962 |
Customer relationships | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 989 | 982 |
Finite-Lived Intangible Assets, Accumulated Amortization | 270 | 230 |
Finite-Lived Intangible Assets, Net | 719 | 752 |
Trademarks, trade names and patents | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 213 | 209 |
Finite-Lived Intangible Assets, Accumulated Amortization | 55 | 49 |
Finite-Lived Intangible Assets, Net | 158 | 160 |
Non-compete agreements | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 15 | 15 |
Finite-Lived Intangible Assets, Accumulated Amortization | 11 | 10 |
Finite-Lived Intangible Assets, Net | 4 | 5 |
Other | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 115 | 101 |
Finite-Lived Intangible Assets, Accumulated Amortization | 56 | 56 |
Finite-Lived Intangible Assets, Net | 59 | 45 |
Trademarks and other | ' | ' |
Indefinite-life intangibles: | ' | ' |
Indefinite-Lived Intangible Assets, Gross | 11 | 11 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $11 | $11 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Income Taxes | ' | ' | ' |
Effective Income Tax Rate, Continuing Operations | 23.20% | 38.10% | ' |
Net Unfavorable/(Favorable) Discrete Items, Amount | ($61) | $4 | ' |
Net Unfavorable/(Favorable) Discrete Items, Percentage | -13.70% | 1.00% | ' |
(Favorable) impact of settlement of federal and state tax controversies | -63 | ' | ' |
Unrecognized tax benefits | 452 | ' | 650 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 281 | ' | 371 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 131 | ' | 198 |
Significant Increase/(Decrease) in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | -20 | ' | ' |
Significant Increase/(Decrease) in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 5 | ' | ' |
Amount CareFusion is liable under tax matters agreement in the event amount must be paid to the taxing authority | $171 | ' | $186 |
Minimum | ' | ' | ' |
Income Taxes | ' | ' | ' |
Tax years open for examination | '2003 | ' | ' |
Tax years under examination | '2006 | ' | ' |
Tax years closed that were under examination | '2003 | ' | ' |
Maximum | ' | ' | ' |
Income Taxes | ' | ' | ' |
Tax years open for examination | '2014 | ' | ' |
Tax years under examination | '2010 | ' | ' |
Tax years closed that were under examination | '2005 | ' | ' |
Contingent_Liabilities_and_Lit1
Contingent Liabilities and Litigation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 |
State of West Virginia vs Cardinal Health, Inc | ||
Loss Contingencies [Line Items] | ' | ' |
Loss Contingency, Number of Defendants | ' | 14 |
Gain (Loss) Related to Litigation Settlement [Abstract] | ' | ' |
Litigation Settlement, Gross | $22 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | $810 | [1] | $348 | [1] |
Forward contracts | 20 | [2] | 12 | [2] |
Other investments | 97 | [3] | 89 | [3] |
Total | 927 | 449 | ||
Fair Value, Inputs, Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | 810 | [1] | 348 | [1] |
Forward contracts | 0 | [2] | 0 | [2] |
Other investments | 97 | [3] | 89 | [3] |
Total | 907 | 437 | ||
Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | 0 | [1] | 0 | [1] |
Forward contracts | 20 | [2] | 12 | [2] |
Other investments | 0 | [3] | 0 | [3] |
Total | 20 | 12 | ||
Fair Value, Inputs, Level 3 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | 0 | [1] | 0 | [1] |
Forward contracts | 0 | [2] | 0 | [2] |
Other investments | 0 | [3] | 0 | [3] |
Total | $0 | $0 | ||
[1] | Cash equivalents are comprised of highly liquid investments purchased with a maturity of three months or less. The carrying value of these cash equivalents approximates fair value due to their short-term maturities. | |||
[2] | The fair value of interest rate swaps, foreign currency contracts and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets. | |||
[3] | The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds primarily invest in the equity securities of companies with large market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. |
Fair_Value_Measurements_Financ
Fair Value Measurements Financial Instruments (Summary of Estimated Fair Value of Our Long-Term Obligations and Other Short-Term Borrowings) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Carrying amount | $3,883 | $3,854 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Estimated fair value | $3,916 | $3,899 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (Treasury Shares, USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Treasury Shares | ' | ' |
Treasury shares acquired (using Cost Method), Shares | 1 | 4.9 |
Treasury shares acquired (using Cost Method), Value | $50 | $200 |
Treasury Stock Acquired, Average Cost Per Share | $51.65 | $40.63 |
Shareholders_Equity_Schedule_o
Shareholders' Equity (Schedule of the changes in the balance in AOCI by component and in total) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' |
Balance at June 30, 2013 | $68 | ' |
Other comprehensive income, before reclassifications | 25 | ' |
Amounts reclassified to earnings | -1 | ' |
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 24 | 25 |
Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax | 0 | -1 |
Total other comprehensive income, net of tax | 24 | 24 |
Balance at September 30, 2013 | 92 | ' |
Foreign Currency Translation Adjustments | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' |
Balance at June 30, 2013 | 54 | ' |
Other comprehensive income, before reclassifications | 24 | ' |
Amounts reclassified to earnings | 0 | ' |
Other Comprehensive Income, Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 24 | ' |
Balance at September 30, 2013 | 78 | ' |
Unrealized Gain/(Loss) on Derivatives, net of tax | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' |
Balance at June 30, 2013 | 14 | ' |
Other comprehensive income, before reclassifications | 1 | ' |
Amounts reclassified to earnings | -1 | ' |
Other Comprehensive Income, Derivatives Qualifying as Hedges, Net of Tax | 0 | ' |
Balance at September 30, 2013 | $14 | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Potentially dilutive employee stock options, restricted share units and performance share units that were anitdilutive | 1 | 13 |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of Common Shares Used to Compute Basic and Diluted EPS) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' |
Weighted-average common shares-basic | 340 | 341 |
Effect of dilutive securities: | ' | ' |
Employee stock options, restricted share units and performance share units | 4 | 3 |
Weighted-average common shares-diluted | 344 | 344 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 |
Reportable_Segments | Segments | ||
Segments | Reportable_Segments | ||
Segment Reporting [Abstract] | ' | ' | ' |
Number of Operating Segments | 2 | ' | 2 |
Number of Reportable Segments | 2 | ' | 2 |
Project Costs On Investment And Other Spending | $3 | $0 | ' |
Segment_Information_Revenue_by
Segment Information (Revenue by Reportable Segment) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Segment Reporting Information | ' | ' | ||
Revenue | $24,523 | $25,889 | ||
Pharmaceutical | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Revenue | 21,813 | [1] | 23,498 | |
Pharmaceutical | Walgreens Co | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Contract expiration date | 31-Aug-13 | ' | ||
Pharmaceutical | Express Scripts, Inc | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Contract expiration date | ' | 30-Sep-12 | ||
Medical | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Revenue | 2,711 | 2,393 | ||
Reportable Segments | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Revenue | 24,524 | 25,891 | ||
Corporate | ' | ' | ||
Segment Reporting Information | ' | ' | ||
Revenue | ($1) | [2] | ($2) | [2] |
[1] | The decrease in Pharmaceutical segment revenue is primarily due to the expiration of our pharmaceutical distribution contracts with Walgreen Co. ("Walgreens") on AugustB 31, 2013 and Express Scripts, Inc. on SeptemberB 30, 2012. | |||
[2] | Corporate revenue consists of the elimination of inter-segment revenue. |
Segment_Information_Segment_Pr
Segment Information (Segment Profit by Reportable Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating earnings | $471 | $457 |
Pharmaceutical | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating earnings | 433 | 400 |
Medical | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating earnings | 106 | 74 |
Reportable Segments | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating earnings | 539 | 474 |
Corporate | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' |
Operating earnings | ($68) | ($17) |
Segment_Information_Segment_In
Segment Information Segment Information (Assets by Reportable Segment) (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | |
In Millions, unless otherwise specified | |||
Segment Reporting, Asset Reconciling Item | ' | ' | |
Assets | $23,816 | $25,819 | |
Pharmaceutical | ' | ' | |
Segment Reporting, Asset Reconciling Item | ' | ' | |
Assets | 13,874 | [1] | 16,258 |
Medical | ' | ' | |
Segment Reporting, Asset Reconciling Item | ' | ' | |
Assets | 6,473 | 6,521 | |
Corporate | ' | ' | |
Segment Reporting, Asset Reconciling Item | ' | ' | |
Assets | $3,469 | $3,040 | |
[1] | The decrease in Pharmaceutical segment assets is primarily due to the decrease in trade receivables, net and inventories, net as a result of the expiration of our pharmaceutical distribution contract with Walgreens. |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Stock Options | Stock Options | Stock Options | Restricted Share Units | Restricted Share Units | Performance Share Units | Performance Share Units | Performance Share Units | |||
Minimum | Maximum | Minimum | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $9 | $8 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, in years | ' | ' | '3 years | ' | ' | '3 years | ' | ' | '2 years | '3 years |
Exercisable period of plans, in years | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | $38 | ' | ' | $113 | ' | $24 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years | ' | ' | '2 years | ' | '2 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | 143.00% | 0.00% | 200.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | 1,000 | ' | 274 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | $51.51 | ' | $51.49 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | 1,000 | ' | 157 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | $37.45 | ' | $41.60 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' | ' | ' | 3,000 | 3,000 | 870 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | $44.77 | $38.74 | $44.40 | ' | ' |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule of Total Share-Based Compensation Expense by Type of Award) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based compensation expense | $24 | $24 |
Restricted Share Units | ' | ' |
Share-based compensation expense | 16 | 15 |
Stock Options | ' | ' |
Share-based compensation expense | 5 | 7 |
Performance Share Units | ' | ' |
Share-based compensation expense | $3 | $2 |
ShareBased_Compensation_Schedu1
Share-Based Compensation (Schedule of All Stock Option Transactions Under the Plans) (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Stock Options Outstanding at June 30, 2013 | 15 |
Stock Options Outstanding, Granted | 2 |
Stock Options Outstanding, Exercised | -3 |
Stock Options Outstanding, Canceled and forfeited | 0 |
Stock Options Outstanding at September 30, 2013 | 14 |
Stock Options Outstanding, Exercisable at September 30, 2013 | 10 |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted-Average Exercise Price [Roll Forward] | ' |
Weighted-Average Exercise Price Per Common Share, Outstanding at June 30, 2013 | $36.97 |
Weighted-Average Exercise Price Per Common Share, Granted | $51.50 |
Weighted-Average Exercise Price Per Common Share, Exercised | $39.64 |
Weighted-Average Exercise Price Per Common Share, Canceled and forfeited | $0 |
Weighted-Average Exercise Price Per Common Share, Outstanding at September 30, 2013 | $38.60 |
Weighted-Average Exercise Price Per Common Share, Exercisable at September 30, 2013 | $35.31 |
ShareBased_Compensation_Schedu2
Share-Based Compensation (Schedule of Additional Data Related to Stock Option Activity) (Details) (Stock Options, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 |
Stock Options | ' | ' |
Aggregate intrinsic value of outstanding options at period end, Stock Options | $192 | $156 |
Aggregate intrinsic value of exercisable options at period end, Stock Options | $163 | $113 |
Weighted-average remaining contractual life of outstanding options (in years) | '5 years | '4 years |
Weighted-average remaining contractual life of exercisable options (in years) | '3 years | '3 years |
ShareBased_Compensation_Schedu3
Share-Based Compensation (Schedule of All Transactions Related to Restricted Share Units Under the Plans) (Details) (Restricted Share Units, USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Restricted Share Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Restricted Share Units Nonvested at June 30, 2013 | 3,000,000 |
Restricted Share Units, Granted | 1,000,000 |
Restricted Share Units, Vested | -1,000,000 |
Restricted Share Units, Canceled and forfeited | 0 |
Restricted Share Units Nonvested at September 30, 2013 | 3,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted-Average Grant Date Fair Value [Roll Forward] | ' |
Weighted-Average Grant Date Fair Value Per Share, Nonvested at June 30, 2013 | $38.74 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $51.51 |
Weighted-Average Grant Date Fair Value Per Share, Vested | $37.45 |
Weighted-Average Grant Date Fair Value Per Share, Canceled and forfeited | $0 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested at September 30, 2013 | $44.77 |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Oct. 15, 2013 | Oct. 29, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Committed Receivables Sales Facility Program | Committed Receivables Sales Facility Program | December 2016 Stock Repurchase Program | December 2016 Stock Repurchase Program | August 2015 Share Repurchase Program | |
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Effective Date of Reduction | 15-Oct-13 | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $950 | $700 | ' | ' | ' |
Subsequent Event, Date | ' | ' | ' | 29-Oct-13 | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | 1,000 | ' | ' |
StockRepurchaseProgramExpirationDate | ' | ' | 31-Dec-16 | ' | ' |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | ' | ' | ' | ' | $350 |