Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
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 Well-Known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Public Float | ' | ' | $22,846,077,361 |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 336,654,178 | ' |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||
Income Statement [Abstract] | ' | ' | ' | ||
Revenue | $91,084 | $101,093 | $107,552 | ||
Cost of products sold | 85,923 | 96,172 | 103,011 | ||
Gross margin | 5,161 | 4,921 | 4,541 | ||
Operating expenses: | ' | ' | ' | ||
Distribution, selling, general and administrative expenses | 3,028 | 2,875 | 2,677 | ||
Restructuring and employee severance | 31 | [1] | 71 | [2] | 21 |
Amortization and other acquisition-related costs | 223 | 158 | 33 | ||
Impairments and loss on disposal of assets | 15 | 859 | 21 | ||
Litigation (recoveries)/charges, net | -21 | -38 | -3 | ||
Operating earnings | 1,885 | 996 | 1,792 | ||
Other income, net | -46 | -15 | -1 | ||
Interest expense, net | 133 | 123 | 95 | ||
Earnings before income taxes and discontinued operations | 1,798 | 888 | 1,698 | ||
Provision for income taxes | 635 | 553 | 628 | ||
Earnings from continuing operations | 1,163 | 335 | 1,070 | ||
Earnings/(loss) from discontinued operations, net of tax | 3 | -1 | -1 | ||
Net earnings | $1,166 | $334 | $1,069 | ||
Basic earnings per common share: | ' | ' | ' | ||
Continuing operations | $3.41 | $0.98 | $3.10 | ||
Discontinued operations | $0.01 | $0 | $0 | ||
Net basic earnings per common share | $3.42 | $0.98 | $3.10 | ||
Diluted earnings per common share: | ' | ' | ' | ||
Continuing operations | $3.37 | $0.97 | $3.06 | ||
Discontinued operations | $0.01 | $0 | $0 | ||
Net diluted earnings per common share | $3.38 | $0.97 | $3.06 | ||
Weighted-average number of common shares outstanding: | ' | ' | ' | ||
Basic | 341 | 341 | 345 | ||
Diluted | 345 | 344 | 349 | ||
[1] | Includes $10 million of primarily facility exit and other costs related to the restructuring within our Medical segment described further below. | ||||
[2] | Includes $30 million of employee-related costs and $10 million of facility exit and other costs related to the restructuring within our Medical segment described further below. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net earnings | $1,166 | $334 | $1,069 |
Other comprehensive income/(loss): | ' | ' | ' |
Net change in foreign currency translation adjustments | 9 | 18 | -34 |
Net unrealized gain/(loss) on derivative instruments, net of tax | -7 | 13 | -6 |
Total other comprehensive income/(loss), net of tax | 2 | 31 | -40 |
Total comprehensive income | $1,168 | $365 | $1,029 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and equivalents | $2,865 | $1,901 |
Trade receivables, net | 5,380 | 6,304 |
Inventories, net | 8,266 | 8,373 |
Prepaid expenses and other | 1,428 | 1,192 |
Total current assets | 17,939 | 17,770 |
Property and equipment, net | 1,459 | 1,489 |
Goodwill and other intangibles, net | 5,870 | 5,574 |
Other assets | 765 | 986 |
Total assets | 26,033 | 25,819 |
Current liabilities: | ' | ' |
Accounts payable | 12,149 | 12,295 |
Current portion of long-term obligations and other short-term borrowings | 801 | 168 |
Other accrued liabilities | 2,165 | 2,127 |
Total current liabilities | 15,115 | 14,590 |
Long-term obligations, less current portion | 3,171 | 3,686 |
Deferred income taxes and other liabilities | 1,346 | 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 June 30, 2014 and 2013 | 2,980 | 2,953 |
Retained earnings | 4,774 | 4,038 |
Common shares in treasury, at cost: 27 million shares and 25 million shares at June 30, 2014 and 2013, respectively | -1,423 | -1,084 |
Accumulated other comprehensive income | 70 | 68 |
Total shareholders' equity | 6,401 | 5,975 |
Total liabilities and shareholders' equity | $26,033 | $25,819 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
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 | 27 | 25 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Shares | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Income/(Loss) |
In Millions | |||||
Total shareholders' equity at Beginning of Period at Jun. 30, 2011 | $5,849 | ' | ' | ' | ' |
Common shares in treasury, Value at Beginning of Period at Jun. 30, 2011 | ' | ' | ' | -457 | ' |
Retained earnings at Beginning of Period at Jun. 30, 2011 | ' | ' | 3,331 | ' | ' |
Accumulated other comprehensive income at Beginning of Period at Jun. 30, 2011 | ' | ' | ' | ' | 77 |
Common shares, Value, Outstanding at Beginning of Period at Jun. 30, 2011 | ' | 2,898 | ' | ' | ' |
Common shares, Issued at Beginning of Period at Jun. 30, 2011 | ' | 364 | ' | ' | ' |
Common shares in treasury at Beginning of Period at Jun. 30, 2011 | ' | ' | ' | -12 | ' |
Net earnings | 1,069 | ' | 1,069 | ' | ' |
Other comprehensive income/(loss), net of tax | -40 | ' | ' | ' | -40 |
Employee stock plans activity, including tax impact, Shares | ' | 0 | ' | 1 | ' |
Employee stock plans activity, including tax impact, Value | 123 | 32 | ' | 91 | ' |
Treasury shares acquired (using Cost Method), Shares | ' | ' | ' | -10.3 | ' |
Treasury shares acquired (using Cost Method), Value | -450 | ' | ' | -450 | ' |
Dividends declared | -307 | ' | -307 | ' | ' |
Common shares in treasury, Value at End of Period at Jun. 30, 2012 | ' | ' | ' | -816 | ' |
Accumulated other comprehensive income at End of Period at Jun. 30, 2012 | 37 | ' | ' | ' | 37 |
Retained earnings at End of Period at Jun. 30, 2012 | ' | ' | 4,093 | ' | ' |
Total shareholders' equity at End of Period at Jun. 30, 2012 | 6,244 | ' | ' | ' | ' |
Common shares, Value, Outstanding at End of Period at Jun. 30, 2012 | ' | 2,930 | ' | ' | ' |
Common shares, Issued at End of Period at Jun. 30, 2012 | ' | 364 | ' | ' | ' |
Common shares in treasury at End of Period at Jun. 30, 2012 | ' | ' | ' | -21 | ' |
Net earnings | 334 | ' | 334 | ' | ' |
Other comprehensive income/(loss), net of tax | 31 | ' | ' | ' | 31 |
Employee stock plans activity, including tax impact, Shares | ' | 0 | ' | 6 | ' |
Employee stock plans activity, including tax impact, Value | 205 | 23 | ' | 182 | ' |
Treasury shares acquired (using Cost Method), Shares | ' | ' | ' | -10.2 | ' |
Treasury shares acquired (using Cost Method), Value | -450 | ' | ' | -450 | ' |
Dividends declared | -374 | ' | -374 | ' | ' |
Other | -15 | ' | -15 | ' | ' |
Common shares in treasury, Value at End of Period at Jun. 30, 2013 | -1,084 | ' | ' | -1,084 | ' |
Accumulated other comprehensive income at End of Period at Jun. 30, 2013 | 68 | ' | ' | ' | 68 |
Retained earnings at End of Period at Jun. 30, 2013 | 4,038 | ' | 4,038 | ' | ' |
Total shareholders' equity at End of Period at Jun. 30, 2013 | 5,975 | ' | ' | ' | ' |
Common shares, Value, Outstanding at End of Period at Jun. 30, 2013 | 2,953 | 2,953 | ' | ' | ' |
Common shares, Issued at End of Period at Jun. 30, 2013 | 364 | 364 | ' | ' | ' |
Common shares in treasury at End of Period at Jun. 30, 2013 | -25 | ' | ' | -25 | ' |
Net earnings | 1,166 | ' | 1,166 | ' | ' |
Other comprehensive income/(loss), net of tax | 2 | ' | ' | ' | 2 |
Employee stock plans activity, including tax impact, Shares | ' | 0 | ' | 8 | ' |
Employee stock plans activity, including tax impact, Value | 361 | 27 | ' | 334 | ' |
Treasury shares acquired (using Cost Method), Shares | ' | ' | ' | -9.9 | ' |
Treasury shares acquired (using Cost Method), Value | -673 | ' | ' | -673 | ' |
Dividends declared | -430 | ' | -430 | ' | ' |
Common shares in treasury, Value at End of Period at Jun. 30, 2014 | -1,423 | ' | ' | -1,423 | ' |
Accumulated other comprehensive income at End of Period at Jun. 30, 2014 | 70 | ' | ' | ' | 70 |
Retained earnings at End of Period at Jun. 30, 2014 | 4,774 | ' | 4,774 | ' | ' |
Total shareholders' equity at End of Period at Jun. 30, 2014 | 6,401 | ' | ' | ' | ' |
Common shares, Value, Outstanding at End of Period at Jun. 30, 2014 | $2,980 | $2,980 | ' | ' | ' |
Common shares, Issued at End of Period at Jun. 30, 2014 | 364 | 364 | ' | ' | ' |
Common shares in treasury at End of Period at Jun. 30, 2014 | -27 | ' | ' | -27 | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (Stock Options, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Stock Options | ' | ' | ' |
Tax (expense)/benefit associated with employee stock plans | $39 | ($19) | ($4) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash flows from operating activities: | ' | ' | ' |
Net earnings | $1,166 | $334 | $1,069 |
(Earnings)/loss from discontinued operations, net of tax | -3 | 1 | 1 |
Earnings from continuing operations | 1,163 | 335 | 1,070 |
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 459 | 397 | 325 |
Gain on sale of investments | -32 | 0 | 0 |
Impairments and loss on disposal of assets | 15 | 859 | 21 |
Share-based compensation | 96 | 93 | 85 |
Provision for deferred income taxes | 26 | 21 | 158 |
Provision for bad debts | 42 | 31 | 22 |
Change in fair value of contingent consideration obligation | 0 | 0 | -71 |
Change in operating assets and liabilities, net of effects from acquisitions: | ' | ' | ' |
Decrease/(increase) in trade receivables | 925 | 216 | -129 |
Decrease/(increase) in inventories | 142 | -370 | -495 |
Increase/(decrease) in accounts payable | -196 | 426 | 319 |
Other accrued liabilities and operating items, net | -116 | -281 | -129 |
Net cash provided by operating activities | 2,524 | 1,727 | 1,176 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of subsidiaries, net of cash acquired | -519 | -2,239 | -174 |
Additions to property and equipment | -249 | -195 | -260 |
Purchase of available-for-sale securities, held-to-maturity securities and other investments | -129 | -12 | -35 |
Proceeds from sale of investments | 47 | 0 | 0 |
Proceeds from maturities of held-to-maturity securities | 0 | 71 | 92 |
Net cash used in investing activities | -850 | -2,375 | -377 |
Cash flows from financing activities: | ' | ' | ' |
Payment of contingent consideration obligation | 0 | -4 | 0 |
Net change in short-term borrowings | 114 | -1 | 13 |
Reduction of long-term obligations | -2 | -305 | -251 |
Proceeds from long-term obligations, net of issuance costs | 0 | 1,286 | 496 |
Net proceeds from issuance of common shares | 227 | 121 | 42 |
Tax proceeds/(disbursements) from share-based compensation | 39 | -19 | -4 |
Dividends on common shares | -415 | -353 | -300 |
Purchase of treasury shares | -673 | -450 | -450 |
Net cash provided by/(used in) financing activities | -710 | 275 | -454 |
Net increase/(decrease) in cash and equivalents | 964 | -373 | 345 |
Cash and equivalents at beginning of period | 1,901 | 2,274 | 1,929 |
Cash and equivalents at end of period | 2,865 | 1,901 | 2,274 |
Supplemental information: | ' | ' | ' |
Cash payments for interest | 152 | 128 | 118 |
Cash payments for income taxes | $632 | $899 | $513 |
Basis_of_Presentation_Summary_
Basis of Presentation, Summary of Significant Accounting Policies and Other | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Basis of Presentation and Summary of Significant Accounting Policies | ' | ||||||||||||||
Basis of Presentation, Summary of Significant Accounting Policies and Other | |||||||||||||||
Cardinal Health, Inc. is a healthcare services company providing pharmaceutical and medical products and services that help pharmacies, hospitals and other healthcare providers focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health, Inc. also provides medical products to patients in the home. References to “we”, “our” and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries unless the context otherwise requires. | |||||||||||||||
Our fiscal year ends on June 30. References to fiscal 2014, 2013 and 2012 in these consolidated financial statements are to the fiscal years ended June 30, 2014, 2013 and 2012, respectively. | |||||||||||||||
Basis of Presentation | |||||||||||||||
Our consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. To conform to the current year presentation, certain prior year amounts have been reclassified. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. | |||||||||||||||
Use of Estimates | |||||||||||||||
Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in accordance with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation, business combinations, goodwill and other intangible asset impairment, vendor reserves, loss contingencies, income taxes and share-based compensation. Actual amounts could ultimately differ from these estimated amounts. | |||||||||||||||
Joint Venture With CVS Caremark | |||||||||||||||
In July 2014, we established Red Oak Sourcing, LLC ("Red Oak Sourcing"), a U.S.-based generic pharmaceutical sourcing entity with CVS Caremark Corporation (“CVS”) with an initial term of 10 years. Both companies have contributed sourcing and supply chain expertise to the 50/50 joint venture and have committed to source generic pharmaceuticals through arrangements negotiated by it. Red Oak Sourcing will negotiate generic pharmaceutical supply contracts on behalf of both companies, but will not own products or hold inventory on behalf of either company. We are required to pay 39 quarterly payments of $25.6 million to CVS commencing in October 2014 and, only if certain milestones are achieved, to pay additional predetermined amounts to CVS beginning in fiscal 2016. The fixed payments of $25.6 million will be expensed evenly commencing with the ramp-up of the venture, which we expect to begin by the end of the first quarter of fiscal 2015. No physical assets were contributed by either company to Red Oak Sourcing, and minimal funding has been provided to capitalize the entity. | |||||||||||||||
Cash Equivalents | |||||||||||||||
We consider liquid investments purchased with a maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. | |||||||||||||||
Receivables | |||||||||||||||
Trade receivables are primarily comprised of amounts owed to us through our distribution businesses and are presented net of an allowance for doubtful accounts of $137 million and $134 million at June 30, 2014 and 2013, respectively. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We continuously monitor past due accounts and establish appropriate reserves to cover potential losses, which are based primarily on historical collection rates and the credit worthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. | |||||||||||||||
We provide financing to various customers. Such financing arrangements range from 270 days to 5 years, at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes and related accrued interest were $158 million (current portion $51 million) and $161 million (current portion $29 million) at June 30, 2014 and 2013, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable are reported net of an allowance for doubtful accounts of $18 million and $17 million at June 30, 2014 and 2013, respectively. We estimate an allowance for these financing receivables based on historical collection rates and the credit worthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. | |||||||||||||||
Concentrations of Credit Risk | |||||||||||||||
We maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses. Investments in marketable securities consist of a portfolio of high-grade instruments. Such investments are made only in instruments issued by highly-rated institutions, whose financial condition we monitor. | |||||||||||||||
Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. Such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform ongoing credit evaluations of our customers’ financial conditions and maintain reserves for credit losses. Historically, such losses have been within our expectations. | |||||||||||||||
Major Customers | |||||||||||||||
The following table summarizes all of our customers that individually account for at least 10 percent of revenue and their corresponding percent of gross trade receivables. The customers in the table below are primarily serviced through our Pharmaceutical segment. | |||||||||||||||
Percent of Revenue | Percent of Gross Trade Receivables at June 30 | ||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||
CVS | 28 | % | 23 | % | 22 | % | 22 | % | 19 | % | |||||
Walgreen Co. | 4 | % | 20 | % | 21 | % | — | % | 24 | % | |||||
Our pharmaceutical distribution contract with Walgreen Co. ("Walgreens") expired on August 31, 2013. | |||||||||||||||
We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Novation, LLC and Premier Purchasing Partners, L.P. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 17 percent, 13 percent and 13 percent of revenue for fiscal 2014, 2013 and 2012, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements. | |||||||||||||||
Inventories | |||||||||||||||
A substantial portion of our inventories (61 percent and 65 percent at June 30, 2014 and 2013, respectively) are valued at the lower of cost, using the last-in, first-out ("LIFO") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within these distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation. | |||||||||||||||
If we had used the average cost method of inventory valuation for all inventory within the distribution facilities, the value of our inventories would not have changed in fiscal 2014 or 2013. Inventories valued at LIFO were $98 million and $97 million higher than the average cost value at June 30, 2014 and 2013, respectively. We do not record inventories in excess of replacement cost. As such, we did not record any changes in our LIFO reserve in fiscal 2014 and 2013. Our remaining inventory is primarily stated at the lower of cost, using the first-in, first-out method, or market. | |||||||||||||||
Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $44 million and $40 million at June 30, 2014 and 2013, respectively. We reserve for inventory obsolescence using estimates based on historical experience, sales trends, specific categories of inventory and age of on-hand inventory. | |||||||||||||||
Cash Discounts | |||||||||||||||
Manufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold when the related inventory is sold. | |||||||||||||||
Property and Equipment | |||||||||||||||
Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. | |||||||||||||||
During fiscal 2013, as a result of the reductions in the anticipated future cash flows in our Nuclear Pharmacy Services division as discussed in Note 5, we also performed recoverability testing for the long-lived assets of this division, which consist primarily of leasehold improvements, machinery and equipment. Based on the assessment performed, we determined that the carrying amounts of the long-lived assets are recoverable. | |||||||||||||||
Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including capital lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; and furniture and fixtures—3 to 7 years. We recorded depreciation expense of $265 million, $269 million and $243 million, for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||
The following table presents the components of property and equipment, net at June 30: | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Land, building and improvements | $ | 1,419 | $ | 1,398 | |||||||||||
Machinery and equipment | 2,326 | 2,149 | |||||||||||||
Furniture and fixtures | 125 | 122 | |||||||||||||
Total property and equipment, at cost | 3,870 | 3,669 | |||||||||||||
Accumulated depreciation and amortization | (2,411 | ) | (2,180 | ) | |||||||||||
Property and equipment, net | $ | 1,459 | $ | 1,489 | |||||||||||
Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 3.68 percent at June 30, 2014. The amount of capitalized interest was immaterial for all periods presented. | |||||||||||||||
Business Combinations | |||||||||||||||
The assets acquired and liabilities assumed in a business combination, including identifiable intangible assets, are based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired is recorded as goodwill. We base the fair values of identifiable intangible assets on detailed valuations that require management to make significant judgments, estimates and assumptions. Critical estimates and assumptions include: expected future cash flows for customer relationships, trade names and other identifiable intangible assets; discount rates that reflect the risk factors associated with future cash flows; and estimates of useful lives. When an acquisition involves contingent consideration, we recognize a liability equal to the fair value of the contingent consideration obligation at the acquisition date. The estimate of fair value of a contingent consideration obligation requires subjective assumptions to be made regarding future business results, discount rates and probabilities assigned to various potential business result scenarios. Subsequent revisions to these assumptions could materially change the estimate of the fair value of contingent consideration obligations and therefore could materially affect our financial position or results of operations. See Note 2 for additional information regarding our acquisitions. | |||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||
Purchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. Intangible assets with finite lives, primarily customer relationships; trademarks, trade names and patents; and non-compete agreements, are amortized over their useful lives. | |||||||||||||||
Goodwill impairment testing involves a comparison of the estimated fair value of reporting units to the respective carrying amount, which may be performed utilizing either a qualitative or quantitative assessment. A reporting unit is defined as an operating segment or one level below an operating segment (also known as a component). If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. An impairment charge is the amount by which the carrying amount of goodwill exceeds the estimated implied fair value of goodwill. We estimate the implied fair value of goodwill as the excess of the estimated fair value of the reporting unit over the estimated fair value of its net tangible and identifiable intangible assets. This is the same manner we use to recognize goodwill from a business combination. Goodwill impairment testing involves judgment, including the identification of reporting units, the estimation of the fair value of each reporting unit and, if necessary, the estimation of the implied fair value of goodwill. | |||||||||||||||
We have two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. These operating segments are comprised of divisions (components), for which discrete financial information is available. Components are aggregated into reporting units for purposes of goodwill impairment testing to the extent that they share similar economic characteristics. Our reporting units are: Pharmaceutical operating segment (excluding our Nuclear Pharmacy Services division and Cardinal Health China - Pharmaceutical division); Nuclear Pharmacy Services division; Cardinal Health China - Pharmaceutical division; Medical operating segment (excluding our Cardinal Health at Home division ("Home division")); and Home division. | |||||||||||||||
Fair value can be determined using market, income or cost-based approaches. Our determination of estimated fair value of the reporting units is based on a combination of the income-based and market-based approaches. Under the income-based approach, we use a discounted cash flow model in which cash flows anticipated over several future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate risk-adjusted rate of return. We use our internal forecasts to estimate future cash flows and include an estimate of long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ materially from those used in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. Discount rates used in our reporting unit valuations ranged from 9 to 12 percent. Under the market-based approach, we determine fair value by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. To further confirm fair value, we compare the aggregate fair value of our reporting units to our total market capitalization. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. The use of alternate estimates and assumptions or changes in the industry or peer groups could materially affect the determination of fair value for each reporting unit and potentially result in goodwill impairment. | |||||||||||||||
We performed annual impairment testing in fiscal 2014, 2013 and 2012 and, with the exception of our Nuclear Pharmacy Services division in fiscal 2013, concluded that there were no impairments of goodwill as the estimated fair value of each reporting unit exceeded its carrying value. For our fiscal 2014, 2013 and 2012 testing, we elected to bypass the optional qualitative assessment. As discussed further in Note 5, during the fourth quarter of fiscal 2013 we recognized an $829 million ($799 million, net of tax) goodwill impairment charge related to our Nuclear Pharmacy Services division, which is included in impairments and loss on disposal of assets in our consolidated statements of earnings. | |||||||||||||||
We review intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of the undiscounted cash flows expected to be generated by the asset. | |||||||||||||||
Investments | |||||||||||||||
Investments in non-marketable equity securities are accounted for under either the cost or equity method of accounting and are included in other assets in the consolidated balance sheets. For investments in which we can exercise significant influence, we use the equity method of accounting and our share of the earnings and losses, which was immaterial, both individually and in the aggregate, for all periods presented, is recorded in other income, net in the consolidated statements of the earnings. We monitor investments for other-than-temporary impairment by considering factors such as the operating performance of the investment and current economic and market conditions. | |||||||||||||||
During fiscal 2014, we sold our minority equity interests in two investments for proceeds of $47 million, which resulted in a pre-tax gain of $32 million ($20 million, net of tax) included in other income, net in the consolidated statements of earnings. | |||||||||||||||
Also during fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Unrealized gains and losses on available-for-sale securities, net of applicable taxes, are included within shareholders’ equity in accumulated other comprehensive income ("AOCI"). We monitor these securities for other-than-temporary impairment by considering factors such as the duration that, and the extent to which, the fair value is below cost, the operating performance and credit worthiness of the issuer of the securities and current economic and market conditions. See Note 6 for additional information regarding available-for-sale securities. | |||||||||||||||
We previously held $72 million of investments in fixed income corporate debt securities, which were classified as held-to-maturity and matured during fiscal 2013. | |||||||||||||||
Vendor Reserves | |||||||||||||||
In the ordinary course of business, our vendors may dispute deductions taken against payments otherwise due to them or assert other billing disputes. These disputed transactions are researched and resolved based upon our policy and findings of the research performed. At any given time, there are outstanding items in various stages of research and resolution. In determining appropriate reserves for areas of exposure with our vendors, we assess historical experience and current outstanding claims. We have established various levels of reserves based on the type of claim and status of review. Though the claim types are relatively consistent, we periodically refine our methodology by updating the reserve estimate percentages to reflect actual historical experience. The ultimate outcome of certain claims may be different than our original estimate and may require an adjustment. All adjustments to vendor reserves are included in cost of products sold. In addition, the reserve balance will fluctuate due to variations of outstanding claims from period-to-period, timing of settlements and specific vendor issues, such as bankruptcies. Vendor reserves were $82 million and $66 million at June 30, 2014 and 2013, respectively, excluding third-party returns. See separate section in Note 1 for a description of third-party returns. | |||||||||||||||
Vendor Incentives | |||||||||||||||
Fees for services and other incentives received from vendors relating to the purchase or distribution of inventory represent product discounts and are recorded as a reduction of cost of products sold in the consolidated statements of earnings upon sale of the related inventory. | |||||||||||||||
Loss Contingencies | |||||||||||||||
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 these matters are 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. See Note 9 for additional information regarding loss contingencies. | |||||||||||||||
Income Taxes | |||||||||||||||
We account for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax bases and financial reporting bases of our assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. Deferred taxes are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are permanently reinvested. | |||||||||||||||
Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. See Note 8 for additional information regarding income taxes. | |||||||||||||||
Other Accrued Liabilities | |||||||||||||||
Other accrued liabilities represent various current obligations, including certain accrued operating expenses and taxes payable. | |||||||||||||||
Share-Based Compensation | |||||||||||||||
Share-based compensation to employees is recognized in the consolidated statements of earnings based on the grant date fair value of the awards. The fair value of stock options is determined on the grant date using a lattice valuation model. The fair value of restricted share units and 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, which may vary over time, of the number of shares that ultimately will be issued. The compensation expense recognized for share-based awards is net of estimated forfeitures and is recognized ratably over the service period of the awards. We classify share-based compensation expense in distribution, selling, general and administrative ("SG&A") expenses to correspond with the same line item as the majority of the cash compensation paid to employees. If awards are modified in connection with a restructuring activity, the incremental share-based compensation expense is classified in restructuring and employee severance. See Note 16 for additional information regarding share-based compensation. | |||||||||||||||
Dividends | |||||||||||||||
We paid cash dividends per common share of $1.21, $1.025 and $0.86 in fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||
Revenue Recognition | |||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||
Pharmaceutical Segment | |||||||||||||||
The Pharmaceutical segment recognizes distribution revenue when title transfers to its customers and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Revenue for deliveries that are directly shipped to customer warehouses from the manufacturer when we act as an intermediary in the ordering and delivery of products is recorded gross. This is in accordance with accounting standards addressing reporting revenue on a gross basis as a principal versus on a net basis as an agent. This revenue is recorded on a gross basis since we incur credit risk from the customer, bear the risk of loss for incomplete shipments and do not receive a separate fee or commission for the transaction and, as such, are the primary obligor. Revenue from these sales is recognized when title transfers to the customer and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Radiopharmaceutical revenue is recognized upon delivery of the product to the customer and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Medical Segment | |||||||||||||||
The Medical segment recognizes revenue when title transfers to its customers and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Sales Returns and Allowances | |||||||||||||||
Revenue is recorded net of sales returns and allowances. Our customer return policies generally require that the product be physically returned, subject to restocking fees, in a condition suitable to be added back to inventory and resold at full value, or returned to vendors for credit (“merchantable product”). Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer. | |||||||||||||||
Effective June 30, 2013, we updated our policy to accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. This prospective change did not have a material effect on consolidated revenue, cost of products sold or operating earnings. At June 30, 2014 and 2013, the accrual for estimated sales returns and allowances was $273 million and $291 million, respectively, the impact of which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Prior to this change in policy, we recognized sales returns as a reduction of revenue and cost of products sold for the sales price and cost, respectively, when products were returned. Amounts recorded in revenue and cost of products sold under our prior accounting policy closely approximated what would have been recorded had we accrued for estimated sales returns and allowances at the time of the sale transaction. As such, retrospective adoption of our new policy to accrue for estimated sales returns and allowances would not have materially changed our results of operations and financial position in fiscal 2012. Sales returns and allowances were $1.7 billion, $2.3 billion and $1.9 billion, for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||
Third-Party Returns | |||||||||||||||
Since we generally do not accept non-merchantable product returns from our customers, many of our customers return non-merchantable pharmaceutical products to our vendors through third parties. Since our customers generally do not have a direct relationship with our vendors, our vendors pass the value of the returns to us (usually in the form of an accounts payable deduction). We in turn pass the value received, less an administrative fee, to our customer. In certain instances, we pass the estimated value of the return to our customer prior to processing the deduction with our vendors. Although we believe we have satisfactory protections, we could be subject to claims from customers or vendors if our administration of this overall process was deficient in some respect or our contractual terms with vendors are in conflict with our contractual terms with our customers. We have maintained reserves for some of these situations based on their nature and our historical experience with their resolution. | |||||||||||||||
Distribution Service Agreement and Other Vendor Fees | |||||||||||||||
Our Pharmaceutical segment recognizes fees received from its distribution service agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment. Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings when the inventory is sold. | |||||||||||||||
Shipping and Handling | |||||||||||||||
Shipping and handling costs are primarily included in SG&A expenses in our consolidated statements of earnings. Shipping and handling costs include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs were $430 million, $419 million and $389 million, for fiscal 2014, 2013 and 2012, respectively. Revenue received for shipping and handling was immaterial for all periods presented. | |||||||||||||||
Restructuring and Employee Severance | |||||||||||||||
We consider restructuring activities to be programs by which we fundamentally change our operations, such as closing and consolidating facilities, moving manufacturing of a product to another location, production or business process sourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure of a business unit in response to changing market conditions). See Note 3 for additional information regarding our restructuring activities. | |||||||||||||||
Amortization and Other Acquisition-Related Costs | |||||||||||||||
We classify costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings. These costs consist primarily of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations. Transaction costs are incurred during the initial evaluation of a potential acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as due diligence activities. Integration costs relate to activities required to combine the operations of an acquired enterprise into our operations. We record changes in the fair value of contingent consideration obligations relating to acquisitions as income or expense in amortization and other acquisition-related costs. See Note 5 for additional information regarding amortization of acquisition-related intangible assets. | |||||||||||||||
In fiscal 2011, we completed the acquisition of privately-held Healthcare Solutions Holding, LLC ("P4 Healthcare") for cash and certain contingent consideration. In connection with this acquisition, the former owners of P4 Healthcare had the right to receive certain contingent payments based on earnings before interest, taxes, depreciation and amortization. As a result of changes in our estimate of performance in future periods, coupled with the progress of discussions with the former owners regarding an early termination and settlement, we recorded a $71 million decrease in fair value of the obligation during fiscal 2012; and settled and terminated the remaining contingent consideration obligation for $4 million in fiscal 2013. | |||||||||||||||
Translation of Foreign Currencies | |||||||||||||||
Financial statements of our subsidiaries outside the United States are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of these foreign subsidiaries into U.S. dollars are accumulated in shareholders’ equity through AOCI utilizing period-end exchange rates. Revenues and expenses of these foreign subsidiaries are translated using average exchange rates during the year. | |||||||||||||||
The foreign currency translation gains/(losses) included in AOCI at June 30, 2014 and 2013 are presented in Note 13. Foreign currency transaction gains and losses for the period are included in the consolidated statements of earnings in other income, net, and were immaterial for all periods presented. | |||||||||||||||
Interest Rate, Currency and Commodity Risk | |||||||||||||||
All derivative instruments are recognized at fair value on the consolidated balance sheets and all changes in fair value are recognized in net earnings or shareholders’ equity through AOCI, net of tax. | |||||||||||||||
For contracts that qualify for hedge accounting treatment, our policy requires that the hedge contracts must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. Hedge effectiveness is assessed periodically. Any contract not designated as a hedge, or so designated but ineffective, is adjusted to fair value and recognized immediately in net earnings. If a fair value or cash flow hedge ceases to qualify for hedge accounting treatment, the contract continues to be carried on the balance sheet at fair value until settled and future adjustments to the contract’s fair value are recognized immediately in net earnings. If a forecasted transaction is no longer considered probable of occurring, amounts previously deferred in AOCI are recognized immediately in net earnings. See Note 12 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow and economic hedges. | |||||||||||||||
Earnings per Common Share | |||||||||||||||
Basic earnings per share (“EPS”) is computed by dividing net earnings (the numerator) by the weighted-average number of common shares outstanding during each period (the denominator). Diluted EPS is similar to the computation for basic EPS, except that the denominator is increased by the dilutive effect of vested and nonvested stock options, restricted shares, restricted share units and performance share units, computed using the treasury stock method. The total number of common shares issued, less the common shares held in treasury, is used to determine the common shares outstanding. See Note 14 for additional information regarding EPS. | |||||||||||||||
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: | |||||||||||||||
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. | ||||||||||||||
See Note 11 for additional information regarding fair value measurements. | |||||||||||||||
Recent Financial Accounting Standards | |||||||||||||||
In June 2014, the Financial Accounting Standards Board ("FASB") issued guidance on accounting for share-based payments with performance targets. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance will be effective for us in the first quarter of fiscal 2017, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations. | |||||||||||||||
In May 2014, the FASB issued amended accounting guidance related to revenue recognition. This guidance is based on the principle that revenue is recognized in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of goods or services to customers. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This amendment will be effective for us in the first quarter of fiscal 2018. We are currently evaluating the options for adoption and the impact on our financial position and results of operations. | |||||||||||||||
In April 2014, the FASB issued amended accounting guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. The amended guidance changes the thresholds for disposals to qualify as discontinued operations and requires additional disclosures. This amendment will be effective for us in the first quarter of fiscal 2016, with early adoption permitted. We will adopt this guidance on a prospective basis, and we do not expect the adoption to impact our financial position or results of operations. | |||||||||||||||
In July 2013, the FASB issued amended accounting guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain conditions exists. This guidance will be effective for us in the first quarter of fiscal 2015. We do not expect the adoption of this guidance to impact our financial position or results of operations. | |||||||||||||||
In March 2013, the FASB issued amended accounting guidance related to a parent company's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The amended guidance requires the release of any cumulative translation adjustment into net income only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. Also, it requires the release of all or a pro rata portion of the cumulative translation adjustment to net income in the case of sale of an equity method investment that is a foreign entity. This amendment will be effective for us in the first quarter of fiscal 2015. We do not expect the adoption of this guidance to impact our financial position or results of operations. | |||||||||||||||
In February 2013, the FASB issued amended accounting guidance related to reclassifications out of AOCI. An entity is required to present, either parenthetically on the face of the statement where net income is presented or in the notes, the significant amounts, by component, reclassified out of AOCI by the respective line items of net income and to report changes in its AOCI balances by component. We adopted this amended guidance on a prospective basis in the first quarter of fiscal 2014 and have elected to report reclassifications out of AOCI in Note 13. The adoption of this guidance did not impact our financial position or results of operations. | |||||||||||||||
In January 2013, the FASB issued updated guidance to limit the scope of the balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar arrangement. We adopted this amended guidance on a retrospective basis in the first quarter of fiscal 2014. The adoption of this guidance did not impact our financial position or results of operations. See Note 11 for additional information regarding fair value measurements of our derivative instruments. | |||||||||||||||
In July 2012, the FASB issued amended accounting guidance related to testing indefinite-lived intangible assets for impairment. Under this guidance, a company is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the company determines, based on a qualitative assessment, that it is more likely than not that its estimated fair value is less than its carrying amount. We adopted this amended guidance in the first quarter of fiscal 2014. The adoption of this guidance did not impact our financial position or results of operations. |
Acquisitions
Acquisitions | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
Business Combinations [Abstract] | ' | |||||
Acquisitions | ' | |||||
Acquisitions | ||||||
We have completed several acquisitions since July 1, 2011, including the acquisitions within our Medical segment described below. The pro forma results of operations and the results of operations for acquisitions since the acquisition dates have not been separately disclosed because the effects were not significant compared to the consolidated financial statements, individually or in the aggregate. | ||||||
AccessClosure | ||||||
On May 9, 2014, we completed the acquisition of Access Closure, Inc. ("AccessClosure") for $320 million in an all-cash transaction. We funded the acquisition with cash on hand. The acquisition of AccessClosure, a manufacturer and distributor of extravascular closure devices, expands the Medical segment's portfolio of self-manufactured products. | ||||||
AssuraMed | ||||||
On March 18, 2013, we completed the acquisition of AssuraMed, Inc. ("AssuraMed") for $2.07 billion, net of cash acquired, in an all-cash transaction. We funded the acquisition through the issuance of $1.3 billion in fixed rate notes, as discussed in Note 7, and cash on hand. The acquisition of AssuraMed, a provider of medical supplies to homecare providers and patients in the home, expands the Medical segment's ability to serve this patient base. AssuraMed is now known as our Home division. We recognized $20 million of transaction costs associated with the purchase of AssuraMed during fiscal 2013, which are included in amortization and other acquisition-related costs in the consolidated statements of earnings. | ||||||
Fair Value of Assets Acquired and Liabilities Assumed | ||||||
The estimation of the fair value of assets acquired and liabilities assumed for AccessClosure resulted in goodwill of $159 million and identifiable intangible assets, primarily developed technology, of $133 million with a weighted-average useful life of 9 years. The assessment of fair value for AccessClosure is preliminary and is based on information that was available at the time the consolidated financial statements were prepared. | ||||||
The estimation of the fair value of assets acquired and liabilities assumed for AssuraMed was completed during fiscal 2014. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date for AssuraMed: | ||||||
(in millions) | Amount | Weighted-Average Useful Lives of Identifiable Intangible Assets | ||||
Identifiable intangible assets: | ||||||
Customer relationships | $ | 460 | 9 | |||
Trade names | 160 | 11 | ||||
Other | 7 | 3 | ||||
Total identifiable intangible assets | 627 | 9 | ||||
Cash and equivalents | 25 | |||||
Trade receivables | 103 | |||||
Inventories | 69 | |||||
Prepaid expenses and other | 102 | |||||
Property and equipment | 40 | |||||
Accounts payable | (71 | ) | ||||
Other accrued liabilities | (24 | ) | ||||
Deferred income taxes and other liabilities | (180 | ) | ||||
Total identifiable net assets acquired | 691 | |||||
Goodwill | 1,404 | |||||
Total net assets acquired | $ | 2,095 | ||||
Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements. The estimated fair value of the identifiable intangible assets was determined primarily using an income-based approach, which includes market participant expectations of the cash flows that an asset could generate over its remaining useful life, discounted back to present value using an appropriate rate of return. The useful lives were determined primarily using inputs such as projected customer retention rates, expected trade name utilization periods, and projected technology obsolescence rates. For AccessClosure and AssuraMed, the discount rates used to arrive at the present value of identifiable intangible assets were 10 and 9.5 percent, respectively, to reflect the internal rate of return and uncertainty in the cash flow projections. |
Restructuring_and_Employee_Sev
Restructuring and Employee Severance | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Restructuring and Employee Severance | ' | |||||||||||
Restructuring and Employee Severance | ||||||||||||
The following table summarizes restructuring and employee severance costs related to our restructuring activities: | ||||||||||||
(in millions) | 2014 (3) | 2013 (4) | 2012 | |||||||||
Employee-related costs (1) | $ | 13 | $ | 59 | $ | 20 | ||||||
Facility exit and other costs (2) | 18 | 12 | 1 | |||||||||
Total restructuring and employee severance | $ | 31 | $ | 71 | $ | 21 | ||||||
-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 $10 million of primarily facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||||||||
-4 | Includes $30 million of employee-related costs and $10 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 have reorganized our Medical segment, moved production of procedure kits from our facility in Waukegan, Illinois to other facilities, and consolidated office space in Waukegan, Illinois. In addition, we are selling property in Waukegan, Illinois and are exiting our gamma sterilization business in El Paso, Texas. | ||||||||||||
We currently estimate the total costs associated with this restructuring plan to be approximately $74 million on a pre-tax basis, of which $18 million was recognized in fiscal 2014, including the loss to write down the property in Waukegan, Illinois as discussed in Note 4. Costs of $51 million associated with this restructuring plan were recognized in fiscal 2013, including the loss to write down our gamma sterilization assets as discussed in Note 4. The estimated $5 million remaining costs to be recognized in fiscal 2015 consist of facility exit and other costs. | ||||||||||||
During the fourth quarter of fiscal 2013, we recognized $11 million of employee-related costs related to a restructuring plan within our Nuclear Pharmacy Services division. | ||||||||||||
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, 2011 | $ | 6 | $ | 4 | $ | 10 | ||||||
Additions | 22 | 1 | 23 | |||||||||
Payments and other adjustments | (12 | ) | (3 | ) | (15 | ) | ||||||
Balance at June 30, 2012 | $ | 16 | $ | 2 | $ | 18 | ||||||
Additions | 63 | 2 | 65 | |||||||||
Payments and other adjustments | (24 | ) | (2 | ) | (26 | ) | ||||||
Balance at June 30, 2013 | $ | 55 | $ | 2 | $ | 57 | ||||||
Additions | 23 | 1 | 24 | |||||||||
Payments and other adjustments | (54 | ) | (3 | ) | (57 | ) | ||||||
Balance at June 30, 2014 | $ | 24 | $ | — | $ | 24 | ||||||
Impairments_and_Loss_on_Dispos
Impairments and Loss on Disposal of Assets | 12 Months Ended |
Jun. 30, 2014 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | ' |
Impairments and loss on disposal of assets, Disclosure | ' |
Impairments and Loss on Disposal of Assets | |
In connection with our Medical segment restructuring plan discussed in Note 3, the property in Waukegan, Illinois meets the criteria for classification as held for sale. As a result, during fiscal 2014, we recognized an $8 million loss to write down this property to the estimated fair value, less costs to sell, of $24 million, which is included in prepaid expenses and other in the consolidated balance sheets. The fair value was estimated using inputs such as broker listings and sales agreements and thus represents a Level 2 nonrecurring fair value measurement. | |
Also in connection with our Medical segment restructuring plan, during fiscal 2013 we recognized an $11 million loss to write down our gamma sterilization assets in El Paso, Texas. | |
During fiscal 2013, we recognized an $829 million ($799 million, net of tax) goodwill impairment charge related to our Nuclear Pharmacy Services division, as discussed further in Note 5. We also recognized an $8 million loss during fiscal 2013 to write down commercial software under development within our Pharmaceutical segment in connection with our decision to discontinue this project. | |
During fiscal 2012, we recognized a $16 million loss to write down an indefinite-life intangible asset related to the P4 Healthcare trade name, an asset within our Pharmaceutical segment. We rebranded P4 Healthcare under the Cardinal Health Specialty Solutions name. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 (1) | Medical | Total | |||||||||
Balance at June 30, 2012 | $ | 2,876 | $ | 1,102 | $ | 3,978 | ||||||
Goodwill acquired, net of purchase price adjustments | 40 | 1,409 | 1,449 | |||||||||
Foreign currency translation adjustments and other | 7 | (4 | ) | 3 | ||||||||
Impairment | (829 | ) | — | (829 | ) | |||||||
Balance at June 30, 2013 | $ | 2,094 | $ | 2,507 | $ | 4,601 | ||||||
Goodwill acquired, net of purchase price adjustments | 68 | 216 | 284 | |||||||||
Foreign currency translation adjustments and other | (4 | ) | (3 | ) | (7 | ) | ||||||
Balance at June 30, 2014 | $ | 2,158 | $ | 2,720 | $ | 4,878 | ||||||
-1 | At June 30, 2014 and 2013, the accumulated goodwill impairment loss was $829 million. | |||||||||||
Fiscal 2014 | ||||||||||||
The increase in the Medical segment goodwill during fiscal 2014 is primarily due to the AccessClosure acquisition. Goodwill recognized in connection with this acquisition primarily represents the expected benefits from synergies of integrating this business, the existing workforce of the acquired entity, and expected growth from new customers, new products, and improvements to existing technologies. See Note 2 for further discussion of this acquisition. | ||||||||||||
Fiscal 2013 | ||||||||||||
The increase in the Medical segment goodwill during fiscal 2013 is primarily due to the AssuraMed acquisition. Goodwill recognized in connection with this acquisition primarily represents the expected benefits from synergies of integrating this business, the existing workforce of the acquired entity, expected growth from new customers and long-term brand value. See Note 2 for further discussion of this acquisition. | ||||||||||||
The decrease in the Pharmaceutical segment goodwill during fiscal 2013 is primarily due to an $829 million ($799 million, net of tax) non-cash goodwill impairment charge related to our Nuclear Pharmacy Services division, which is included in impairments and loss on disposal of assets in our consolidated statements of earnings. This impairment charge did not impact our liquidity, cash flows from operations, or compliance with debt covenants. | ||||||||||||
As a result of significant softness in the low-energy diagnostics market, we performed interim goodwill impairment testing for our Nuclear Pharmacy Services division during the three months ended December 31, 2012 and determined that there was no impairment, as the fair value of the reporting unit was estimated to be in excess of its carrying amount. During the second half of fiscal 2013, we experienced sustained volume declines and price erosion for the core, low-energy products provided by this division. In addition, we experienced reduced sales for some existing high-energy diagnostic products, slower-than-expected adoption of new high-energy diagnostic products, and reimbursement developments that could have adversely impacted the future growth of these products. Using this information, we adjusted our outlook and long-term business plans for this division during our annual budgeting process. This update resulted in significant reductions in the anticipated future cash flows and estimated fair value for this reporting unit. | ||||||||||||
We completed our annual goodwill impairment test for fiscal 2013, which we perform annually in the fourth quarter, in conjunction with the preparation of our fiscal 2013 consolidated financial statements. Using a combination of the income-based approach (using a discount rate of 10 percent) and the market-based approach, the fair value of this reporting unit was estimated to be below the carrying amount and therefore indicated impairment. The second step of the impairment test resulted in the impairment of the entire $829 million carrying amount of goodwill for this reporting unit. Our fair value estimates utilize significant unobservable inputs and thus represent Level 3 fair value measurements. | ||||||||||||
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 June 30: | ||||||||||||
2014 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 14 | $ | — | $ | 14 | ||||||
Total indefinite-life intangibles | 14 | — | 14 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 1,043 | 388 | 655 | |||||||||
Trademarks, trade names and patents | 213 | 69 | 144 | |||||||||
Non-compete agreements | 15 | 11 | 4 | |||||||||
Developed technology and other | 243 | 68 | 175 | |||||||||
Total definite-life intangibles | 1,514 | 536 | 978 | |||||||||
Total other intangible assets | $ | 1,528 | $ | 536 | $ | 992 | ||||||
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 | |||||||||
Developed technology and 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 was $188 million, $121 million and $79 million for fiscal 2014, 2013 and 2012, respectively. Estimated annual amortization of intangible assets for fiscal 2015 through 2019 is as follows: $177 million, $165 million, $153 million, $116 million and $65 million. | ||||||||||||
The increase in amortization during fiscal 2014 and 2013 is primarily due to the acquisition of AssuraMed. See Note 2 for further discussion of this acquisition. |
AvailableforSale_Securities
Available-for-Sale Securities | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Investments, Debt and Equity Securities [Abstract] | ' | |||
Available-for-Sale Securities Disclosure | ' | |||
Available-for-Sale Securities | ||||
During fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. We held the following investments in marketable securities at fair value at June 30: | ||||
(in millions) | 2014 | |||
Current available-for-sale securities: | ||||
Commercial paper | $ | 4 | ||
Treasury bills | 85 | |||
International bonds | 1 | |||
Corporate bonds | 3 | |||
Total current available-for-sale securities | 93 | |||
Long-term available-for-sale securities: | ||||
Corporate bonds | 5 | |||
U.S. agency bonds | 2 | |||
Total long-term available-for-sale securities | 7 | |||
Total available-for-sale securities | $ | 100 | ||
Gross unrealized gains and losses were immaterial at June 30, 2014. We did not recognize any other-than-temporary impairments during fiscal 2014. At June 30, 2014, the weighted-average effective maturity of our current and long-term investments was approximately 11 months and 21 months, respectively. |
LongTerm_Obligations_and_Other
Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt Disclosure | ' | |||||||
Long-Term Obligations and Other Short-Term Borrowings | ||||||||
The following table summarizes long-term obligations and other short-term borrowings at June 30: | ||||||||
(in millions) | 2014 | 2013 | ||||||
1.7% Notes due 2018 | $ | 401 | $ | 399 | ||||
1.9% Notes due 2017 | 251 | 250 | ||||||
3.2% Notes due 2022 | 248 | 247 | ||||||
3.2% Notes due 2023 | 549 | 549 | ||||||
4.0% Notes due 2015 | 513 | 524 | ||||||
4.6% Notes due 2043 | 349 | 349 | ||||||
4.625% Notes due 2020 | 525 | 527 | ||||||
5.8% Notes due 2016 | 301 | 301 | ||||||
5.85% Notes due 2017 | 158 | 157 | ||||||
6.0% Notes due 2017 | 197 | 200 | ||||||
7.0% Debentures due 2026 | 124 | 124 | ||||||
7.8% Debentures due 2016 | 37 | 37 | ||||||
Other obligations | 319 | 190 | ||||||
Total | $ | 3,972 | $ | 3,854 | ||||
Less: current portion of long-term obligations and other short-term borrowings | 801 | 168 | ||||||
Long-term obligations, less current portion | $ | 3,171 | $ | 3,686 | ||||
Maturities of long-term obligations and other short-term borrowings for fiscal 2015 through 2019 and thereafter are as follows: $801 million, $22 million, $788 million, $561 million, $1 million and $1,799 million. | ||||||||
Long-Term Debt | ||||||||
The 1.7%, 1.9%, 3.2%, 4.0%, 4.6%, 4.625%, 5.8%, 5.85% and 6.0% Notes represent unsecured obligations of Cardinal Health, Inc. The 7.0% and 7.8% Debentures represent unsecured obligations of Allegiance Corporation (a wholly-owned subsidiary), which Cardinal Health, Inc. has guaranteed. None of these obligations are subject to a sinking fund and the Allegiance obligations are not redeemable prior to maturity. Interest is paid pursuant to the terms of the obligations. These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $12.1 billion. | ||||||||
In June 2013, we used cash on hand to repay $300 million of our 5.5% Notes that were due on June 15, 2013. | ||||||||
In February 2013, we sold in a registered offering $400 million aggregate principal amount of 1.7% Notes that mature on March 15, 2018, $550 million aggregate principal amount of 3.2% Notes that mature on March 15, 2023 and $350 million aggregate principal amount of 4.6% Notes that mature on March 15, 2043. These notes are unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. We used the proceeds to fund a portion of the purchase price of AssuraMed as discussed in Note 2. | ||||||||
In May 2012, we sold in a registered offering $250 million aggregate principal amount of 1.9% Notes that mature on June 15, 2017 and $250 million aggregate principal amount of 3.2% Notes that mature on June 15, 2022. These notes are unsecured and unsubordinated obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. | ||||||||
The 6.0% Notes due 2017, 1.9% Notes due 2017, 1.7% Notes due 2018, 4.625% Notes due 2020, 3.2% Notes due 2022, 3.2% Notes due 2023 and 4.6% Notes due 2043 require us to offer to purchase the notes at 101% of the principal amount plus accrued and unpaid interest, if we have a defined change of control and specified ratings below investment grade by Standard & Poor's Ratings Services, Moody's Investors Service, Inc. and Fitch Ratings. | ||||||||
Other Financing Arrangements | ||||||||
In addition to cash and equivalents, at June 30, 2014 and 2013, our sources of liquidity include a $1.5 billion revolving credit facility and a commercial paper program of up to $1.5 billion, backed by the revolving credit facility. The revolving credit facility exists largely to support issuances of commercial paper as well as other short-term borrowings for general corporate purposes. | ||||||||
On November 6, 2012, we renewed our $950 million committed receivables sales facility program through Cardinal Health Funding, LLC ("CHF") until November 6, 2014. On October 15, 2013, we reduced our committed receivables sales facility program from $950 million to $700 million in light of the Walgreens contract expiration. CHF 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. | ||||||||
We had no outstanding balance under the revolving credit facility at June 30, 2014 and 2013, except for standby letters of credit of zero and $43 million at June 30, 2014 and 2013, respectively. We had no outstanding borrowings from the commercial paper program at June 30, 2014 and 2013. We had no outstanding balance under the committed receivables sales facility program at June 30, 2014 and 2013, except for standby letters of credit of $41 million and zero at June 30, 2014 and 2013, respectively. Our revolving credit facility and committed receivables sales facility program require us to maintain a consolidated interest coverage ratio, as of any fiscal quarter end, of at least 4-to-1 and a consolidated leverage ratio of no more than 3.25-to-1. As of June 30, 2014, we were in compliance with these financial covenants. | ||||||||
We also maintain other short-term credit facilities and an unsecured line of credit that allowed for borrowings up to $369 million and $304 million at June 30, 2014 and 2013, respectively. The $319 million and $190 million balance of other obligations at June 30, 2014 and 2013, respectively, consisted of short-term borrowings and capital leases. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Earnings before income taxes and discontinued operations are: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
U.S. Operations | $ | 1,665 | $ | 651 | $ | 1,514 | ||||||
Non-U.S. Operations | 133 | 237 | 184 | |||||||||
Earnings before income taxes and discontinued operations | $ | 1,798 | $ | 888 | $ | 1,698 | ||||||
The provision for income taxes from continuing operations consists of the following: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 521 | $ | 451 | $ | 430 | ||||||
State and local | 51 | 62 | 27 | |||||||||
Non-U.S. | 37 | 19 | 13 | |||||||||
Total current | $ | 609 | $ | 532 | $ | 470 | ||||||
Deferred: | ||||||||||||
Federal | $ | 24 | $ | 28 | $ | 124 | ||||||
State and local | 3 | (5 | ) | 28 | ||||||||
Non-U.S. | (1 | ) | (2 | ) | 6 | |||||||
Total deferred | 26 | 21 | 158 | |||||||||
Provision for income taxes | $ | 635 | $ | 553 | $ | 628 | ||||||
The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate from continuing operations: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State and local income taxes, net of federal benefit | 2.2 | 2.5 | 2.3 | |||||||||
Foreign tax rate differential | (1.2 | ) | (4.0 | ) | (2.2 | ) | ||||||
Nondeductible/nontaxable items | (0.2 | ) | (0.5 | ) | — | |||||||
Nondeductible goodwill impairment | — | 33.2 | — | |||||||||
Change in measurement of an uncertain tax position and impact of IRS settlements | (0.4 | ) | (5.7 | ) | 0.9 | |||||||
Other | (0.1 | ) | 1.8 | 1 | ||||||||
Effective income tax rate | 35.3 | % | 62.3 | % | 37 | % | ||||||
The fiscal 2014 effective tax rate was impacted by net favorable discrete items of $37 million, which reduced the rate by 2.1 percentage points. The discrete items include the favorable impact of the settlement of federal and state tax controversies ($80 million) and release of valuation allowances ($12 million) and the unfavorable impact of remeasurement of unrecognized tax benefits ($65 million), primarily as a result of proposed assessments of additional tax. | ||||||||||||
The fiscal 2013 effective tax rate was unfavorably impacted by 33.2 percentage points ($295 million) due to the nondeductibility of substantially all of the goodwill impairment which was partially offset by the favorable impact of the revaluation of our deferred tax liability and related interest on unrepatriated foreign earnings as a result of an agreement with tax authorities ($64 million or 7.2 percentage points). During the fourth quarter of fiscal 2013, we recorded an out-of-period increase in income tax expense of $14 million (of which generally less than $1 million pertained to each of the first three quarters of fiscal 2013 and each of the quarters in fiscal 2012 through 2008), which related to uncertain tax benefits, and a decrease in retained earnings of $15 million, which related to the adoption of accounting guidance for uncertain tax benefits in 2008. The amounts were not material individually or in the aggregate to current or prior periods. | ||||||||||||
At June 30, 2014, we had $1.7 billion of undistributed earnings from non-U.S. subsidiaries that are intended to be permanently reinvested in non-U.S. operations. Because these earnings are considered permanently reinvested, no U.S. tax provision has been accrued related to the repatriation of these earnings. It is not practicable to estimate the amount of U.S. tax that might be payable on the eventual remittance of such earnings. | ||||||||||||
Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. The following table presents the components of the deferred income tax assets and liabilities at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred income tax assets: | ||||||||||||
Receivable basis difference | $ | 59 | $ | 50 | ||||||||
Accrued liabilities | 111 | 115 | ||||||||||
Share-based compensation | 51 | 66 | ||||||||||
Loss and tax credit carryforwards | 191 | 158 | ||||||||||
Deferred tax assets related to uncertain tax positions | 84 | 127 | ||||||||||
Other | 42 | 82 | ||||||||||
Total deferred income tax assets | 538 | 598 | ||||||||||
Valuation allowance for deferred income tax assets | (94 | ) | (88 | ) | ||||||||
Net deferred income tax assets | $ | 444 | $ | 510 | ||||||||
Deferred income tax liabilities: | ||||||||||||
Inventory basis differences | $ | (1,164 | ) | $ | (1,160 | ) | ||||||
Property-related | (142 | ) | (173 | ) | ||||||||
Goodwill and other intangibles | (340 | ) | (299 | ) | ||||||||
Other | (7 | ) | (6 | ) | ||||||||
Total deferred income tax liabilities | (1,653 | ) | (1,638 | ) | ||||||||
Net deferred income tax liability | $ | (1,209 | ) | $ | (1,128 | ) | ||||||
Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the consolidated balance sheets at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Current deferred income tax asset (1) | $ | 18 | $ | 15 | ||||||||
Noncurrent deferred income tax asset (2) | 15 | 17 | ||||||||||
Current deferred income tax liability (3) | (918 | ) | (908 | ) | ||||||||
Noncurrent deferred income tax liability (4) | (324 | ) | (252 | ) | ||||||||
Net deferred income tax liability | $ | (1,209 | ) | $ | (1,128 | ) | ||||||
-1 | Included in prepaid expenses and other in the consolidated balance sheets. | |||||||||||
-2 | Included in other assets in the consolidated balance sheets. | |||||||||||
-3 | Included in other accrued liabilities in the consolidated balance sheets. | |||||||||||
-4 | Included in deferred income taxes and other liabilities in the consolidated balance sheets. | |||||||||||
At June 30, 2014, we had gross federal, state and international loss and credit carryforwards of $210 million, $1.3 billion and $85 million, respectively, the tax effect of which is an aggregate deferred tax asset of $191 million. Substantially all of these carryforwards are available for at least three years. Approximately $92 million of the valuation allowance at June 30, 2014 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance would reduce income tax expense. | ||||||||||||
We had $510 million, $650 million and $654 million of unrecognized tax benefits at June 30, 2014, 2013 and 2012, respectively. The June 30, 2014, 2013 and 2012 balances include $322 million, $371 million and $337 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 consolidated balance sheets. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of fiscal year | $ | 650 | $ | 654 | $ | 747 | ||||||
Additions for tax positions of the current year | 16 | 22 | 16 | |||||||||
Additions for tax positions of prior years | 94 | 97 | 68 | |||||||||
Reductions for tax positions of prior years | (40 | ) | (30 | ) | (3 | ) | ||||||
Settlements with tax authorities | (210 | ) | (93 | ) | (172 | ) | ||||||
Expiration of the statute of limitations | — | — | (2 | ) | ||||||||
Balance at end of fiscal year | $ | 510 | $ | 650 | $ | 654 | ||||||
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 $25 million to an increase of approximately $10 million, exclusive of penalties and interest. | ||||||||||||
We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At June 30, 2014, 2013 and 2012 we had $143 million, $198 million and $209 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 consolidated balance sheets. During fiscal 2014 and 2012, we recognized $46 million and $28 million of benefit for interest and penalties in income tax expense, respectively. During fiscal 2013, we recognized $24 million of interest and penalties in income tax expense. | ||||||||||||
We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. We are subject to audit by the IRS for fiscal years 2006 through the current fiscal year. We are generally subject to audit by taxing authorities in various U.S. state and foreign jurisdictions for fiscal years 2003 through the current fiscal year. | ||||||||||||
During fiscal 2014, 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 $210 million and $186 million at June 30, 2014 and 2013, respectively, and is included in other assets in the consolidated balance sheets. |
Commitments_Contingent_Liabili
Commitments, Contingent Liabilities and Litigation | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments, contingent liabilities and litigation | ' |
Contingent Liabilities and Litigation | |
Commitments | |
The future minimum rental payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2014 for fiscal 2015 through 2019 and thereafter are as follows: $97 million, $80 million, $60 million, $45 million, $31 million and $74 million. Rental expense relating to operating leases was $107 million, $92 million and $86 million in fiscal 2014, 2013 and 2012, respectively. Sublease rental income was immaterial for all periods presented. | |
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, claims 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 matters. | |
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 private party has filed a qui tam action, the government must investigate the private party's claim 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 these matters are 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 or the proceedings are at stages where significant uncertainty exists as to legal or factual issues and as to whether such matters will proceed to trial. We do not believe, based on currently available information, that the outcomes of these matters will have a material adverse effect on our financial position, results of operations or cash flows, though the outcome of one or more of these matters 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 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 that resolved the administrative aspects of the DEA's action, but 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 continuing to provide information to and engage in discussions, including preliminary discussions regarding the feasibility of a settlement, with the DEA and the DOJ. | |
State of West Virginia vs. Cardinal Health, Inc. | |
In June 2012, the West Virginia Attorney General filed, and in January 2014 amended, complaints against 13 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. | |
Federal False Claims Investigation | |
The DOJ has requested information in connection with an investigation of possible violations of the federal False Claims Act with respect to our Medical segment’s administration of a prime vendor agreement with the federal government. We are cooperating with the DOJ in this matter. | |
Antitrust Litigation Proceeds | |
We recognized income resulting from settlements of class action antitrust claims in which we were a class member of $24 million and $38 million during fiscal 2014 and 2013, respectively. |
Guarantees
Guarantees | 12 Months Ended |
Jun. 30, 2014 | |
Guarantees [Abstract] | ' |
Guarantees, disclosure | ' |
Guarantees | |
In the ordinary course of business, we agree to indemnify certain other parties under acquisition and disposition agreements, customer agreements, intellectual property licensing agreements, and other agreements. Such indemnification obligations vary in scope and, when defined, in duration. In many cases, a maximum obligation is not explicitly stated, and therefore the overall maximum amount of the liability under such indemnification obligations cannot be reasonably estimated. Where appropriate, such indemnification obligations are recorded as a liability. Historically, we have not, individually or in the aggregate, made payments under these indemnification obligations in any material amounts. In certain circumstances, we believe that existing insurance arrangements, subject to the general deduction and exclusion provisions, would cover portions of the liability that may arise from these indemnification obligations. In addition, we believe that the likelihood of a material liability being triggered under these indemnification obligations is not significant. | |
From time to time we enter into agreements that obligate us to make fixed payments upon the occurrence of certain events. Such obligations primarily relate to obligations arising under acquisition transactions, where we have agreed to make payments based upon the achievement of certain financial performance measures by the acquired business. Generally, the obligation is capped at an explicit amount. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The following tables present the fair values for those assets measured on a recurring basis at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 740 | $ | — | $ | — | $ | 740 | ||||||||
Forward contracts (2) | — | 10 | — | 10 | ||||||||||||
Available-for-sale securities (3) | — | 100 | — | 100 | ||||||||||||
Other investments (4) | 106 | — | — | 106 | ||||||||||||
Total | $ | 846 | $ | 110 | $ | — | $ | 956 | ||||||||
2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 348 | $ | — | $ | — | $ | 348 | ||||||||
Forward contracts (2) | — | 12 | — | 12 | ||||||||||||
Other investments (4) | 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 consolidated balance sheets. | |||||||||||||||
-3 | During fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Observable level 2 inputs such as quoted prices for similar securities, interest rate spreads, yield curves and credit risk are used to determine the fair value. See Note 6 for additional information regarding available-for-sale securities. | |||||||||||||||
-4 | 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. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||
Financial Instruments and Other Financing Arrangements | ' | |||||||||||||||
Financial Instruments | ||||||||||||||||
We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk, but are not designated as hedging instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. | ||||||||||||||||
We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and enter into derivative instruments only with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements. | ||||||||||||||||
Interest Rate Risk Management | ||||||||||||||||
We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities along with both fixed-rate and variable-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs. | ||||||||||||||||
Currency Exchange Risk Management | ||||||||||||||||
We conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses. | ||||||||||||||||
Commodity Price Risk Management | ||||||||||||||||
We are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts to manage the price risk associated with these forecasted purchases. | ||||||||||||||||
The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Assets: | ||||||||||||||||
Foreign currency contracts (1) | $ | 1 | $ | 4 | ||||||||||||
Forward interest rate swaps (1) | 10 | — | ||||||||||||||
Forward interest rate swaps (2) | — | 20 | ||||||||||||||
Pay-floating interest rate swaps (2) | 5 | — | ||||||||||||||
Commodity contracts (2) | 1 | — | ||||||||||||||
Total assets | $ | 17 | $ | 24 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency contracts (3) | $ | 1 | $ | 1 | ||||||||||||
Forward interest rate swaps (4) | 1 | — | ||||||||||||||
Pay-floating interest rate swaps (4) | 5 | 11 | ||||||||||||||
Total liabilities | $ | 7 | $ | 12 | ||||||||||||
-1 | Included in prepaid expenses and other in the consolidated balance sheets. | |||||||||||||||
-2 | Included in other assets in the consolidated balance sheets. | |||||||||||||||
-3 | Included in other accrued liabilities in the consolidated balance sheets. | |||||||||||||||
-4 | Included in deferred income taxes and other liabilities in the consolidated balance sheets. | |||||||||||||||
Fair Value Hedges | ||||||||||||||||
We enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates. These contracts are designated and qualify as fair value hedges. Accordingly, the gain or loss recorded on the pay-floating interest rate swaps is directly offset by the change in fair value of the underlying debt. Both the derivative instrument and the underlying debt are adjusted to market value at the end of each period with any resulting gain or loss recorded in interest expense, net in the consolidated statements of earnings. | ||||||||||||||||
During fiscal 2014 and 2013, we entered into pay-floating interest rate swaps with total notional amounts of $300 million and $775 million, respectively. These swaps have been designated as fair value hedges of our fixed rate debt. | ||||||||||||||||
During fiscal 2013, we terminated notional amounts of $350 million of pay-floating interest rate swaps and received net settlement proceeds of $43 million. These swaps were previously designated as fair value hedges. There was no immediate impact to earnings; however, the fair value adjustment to debt is being amortized over the life of the underlying debt as a reduction to interest expense, net in the consolidated statements of earnings. | ||||||||||||||||
The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Pay-floating interest rate swaps | $ | 1,438 | Jun-15 | - | Jun-22 | |||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Pay-floating interest rate swaps | $ | 1,138 | Jun-15 | - | Jun-22 | |||||||||||
The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Pay-floating interest rate swaps (1) | $ | 23 | $ | 28 | $ | 38 | ||||||||||
Fixed-rate debt (1) | (23 | ) | (28 | ) | (38 | ) | ||||||||||
-1 | Included in interest expense, net in the consolidated statements of earnings. | |||||||||||||||
There was no ineffectiveness associated with these derivative instruments. | ||||||||||||||||
Cash Flow Hedges | ||||||||||||||||
We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in earnings immediately. | ||||||||||||||||
We enter into forward interest rate swaps to manage variability of expected future cash flows from changing interest rates. During fiscal 2014 and 2013, we entered into forward interest rate swaps with total notional amounts of $50 million and $250 million, respectively, to hedge probable, but not firmly committed, future transactions associated with our debt. | ||||||||||||||||
We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses. At June 30, 2014 and 2013, we held contracts to hedge probable, but not firmly committed, revenue and expenses. The principal currencies hedged are the Canadian dollar, Mexican peso, European euro and Thai baht. | ||||||||||||||||
We enter into commodity contracts to manage the price risk associated with forecasted purchases of certain commodities used in our Medical segment. | ||||||||||||||||
The following tables summarize the outstanding cash flow hedges at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Forward interest rate swaps | $ | 300 | Jun-25 | - | Oct-26 | |||||||||||
Foreign currency contracts | 182 | Jul-14 | - | Jun-15 | ||||||||||||
Commodity contracts | 24 | Jul-14 | - | Mar-17 | ||||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Forward interest rate swaps | $ | 250 | Jun-25 | |||||||||||||
Foreign currency contracts | 164 | Jul-13 | - | Jun-14 | ||||||||||||
Commodity contracts | 24 | Jul-13 | - | Mar-16 | ||||||||||||
The following table summarizes the gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges at June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Forward interest rate swaps | $ | 9 | $ | 20 | ||||||||||||
Commodity contracts | 1 | — | ||||||||||||||
Foreign currency contracts | (1 | ) | 3 | |||||||||||||
The following table summarizes the gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency contracts (1) | $ | — | $ | 1 | $ | 1 | ||||||||||
Foreign currency contracts (2) | 2 | 1 | (1 | ) | ||||||||||||
Foreign currency contracts (3) | 1 | 1 | (1 | ) | ||||||||||||
Commodity contracts (3) | — | 1 | 2 | |||||||||||||
Forward interest rate swaps (4) | — | 1 | — | |||||||||||||
-1 | Included in revenue in the consolidated statements of earnings. | |||||||||||||||
-2 | Included in cost of products sold in the consolidated statements of earnings. | |||||||||||||||
-3 | Included in SG&A expenses in the consolidated statements of earnings. | |||||||||||||||
-4 | Included in interest expense, net in the consolidated statements of earnings. | |||||||||||||||
The amount of ineffectiveness associated with these derivative instruments was immaterial for all periods presented. | ||||||||||||||||
Economic (Non-Designated) Hedges | ||||||||||||||||
We enter into foreign currency contracts to manage our foreign exchange exposure related to intercompany financing transactions and other balance sheet items subject to revaluation that do not meet the requirements for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net at the end of each period. | ||||||||||||||||
The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Foreign currency contracts | $ | 461 | Jul-14 | - | Sep-14 | |||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Foreign currency contracts | $ | 479 | Jul-13 | - | Sep-13 | |||||||||||
The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency contracts (1) | $ | 12 | $ | 6 | $ | (39 | ) | |||||||||
Commodity contracts (1) | — | — | (1 | ) | ||||||||||||
-1 | Included in other income, net in the consolidated statements of earnings. | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at June 30, 2014 and June 30, 2013 approximate fair value due to their short-term maturities. | ||||||||||||||||
Cash balances are invested in accordance with our investment policy. These investments are exposed to market risk from interest rate fluctuations and credit risk from the underlying issuers, although this is mitigated through diversification. | ||||||||||||||||
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 June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Estimated fair value | $ | 4,115 | $ | 3,899 | ||||||||||||
Carrying amount | 3,972 | 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. | ||||||||||||||||
The following table is a summary of the fair value gain/(loss) of our derivative instruments, based upon the estimated amount that we would receive (or pay) to terminate the contracts at June 30: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in millions) | Notional | Fair Value | Notional | Fair Value | ||||||||||||
Amount | Gain/(Loss) | Amount | Gain/(Loss) | |||||||||||||
Pay-floating interest rate swaps | $ | 1,438 | $ | — | $ | 1,138 | $ | (11 | ) | |||||||
Foreign currency contracts | 643 | — | 643 | 3 | ||||||||||||
Forward interest rate swaps | 300 | 9 | 250 | 20 | ||||||||||||
Commodity contracts | 24 | 1 | 24 | — | ||||||||||||
The fair values are based on quoted market prices for the same or similar instruments, which represents a Level 2 measurement. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Shareholders' Equity | ' | |||||||||||
Shareholders' Equity | ||||||||||||
At June 30, 2014 and 2013, authorized capital shares consisted of the following: 750 million Class A common shares, without par value; 5 million Class B common shares, without par value; and 500 thousand non-voting preferred shares, without par value. The Class A common shares and Class B common shares are collectively referred to below as “common shares”. Holders of common shares are entitled to share equally in any dividends declared by the Board of Directors and to participate equally in all distributions of assets upon liquidation. Generally, the holders of Class A common shares are entitled to one vote per share, and the holders of Class B common shares are entitled to one-fifth of one vote per share on proposals presented to shareholders for vote. Under certain circumstances, the holders of Class B common shares are entitled to vote as a separate class. Only Class A common shares were outstanding at June 30, 2014 and 2013. | ||||||||||||
We repurchased $1.6 billion of our common shares, in the aggregate, through share repurchase programs during fiscal 2014, 2013 and 2012, as described below. We funded the repurchases with available cash. The common shares repurchased are held in treasury to be used for general corporate purposes. | ||||||||||||
During fiscal 2014, we repurchased 9.9 million common shares having an aggregate cost of $673 million. The average price paid per common share was $67.85. | ||||||||||||
During fiscal 2013, we repurchased 10.2 million common shares having an aggregate cost of $450 million. The average price paid per common share was $44.11. | ||||||||||||
During fiscal 2012, we repurchased 10.3 million common shares having an aggregate cost of $450 million. The average price paid per common share was $43.64. | ||||||||||||
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, 2012 | $ | 36 | $ | 1 | $ | 37 | ||||||
Other comprehensive income/(loss), net of tax before reclassifications | 18 | 8 | 26 | |||||||||
Amounts reclassified to earnings | — | 5 | 5 | |||||||||
Total other comprehensive income, net of tax of $9 million | 18 | 13 | 31 | |||||||||
Balance at June 30, 2013 | $ | 54 | $ | 14 | $ | 68 | ||||||
Other comprehensive income/(loss), net of tax before reclassifications | 9 | (10 | ) | (1 | ) | |||||||
Amounts reclassified to earnings | — | 3 | 3 | |||||||||
Total other comprehensive income/(loss), net of tax of $5 million | 9 | (7 | ) | 2 | ||||||||
Balance at June 30, 2014 | $ | 63 | $ | 7 | $ | 70 | ||||||
Activity related to unrealized gains and losses on available-for-sale securities as described in Note 6, was immaterial during fiscal 2014. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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: | |||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||
Weighted-average common shares–basic | 341 | 341 | 345 | ||||||
Effect of dilutive securities: | |||||||||
Employee stock options, restricted shares, restricted share units and performance share units | 4 | 3 | 4 | ||||||
Weighted-average common shares–diluted | 345 | 344 | 349 | ||||||
The potentially dilutive employee stock options, restricted shares, restricted share units and performance share units that were antidilutive for fiscal 2014, 2013 and 2012 were zero, 9 million and 10 million, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products in the United States. This segment also operates nuclear pharmacies and cyclotron facilities, provides pharmacy services to hospitals and other healthcare facilities, and provides services to healthcare companies supporting the marketing, distribution and payment for specialty pharmaceutical products. Through our Cardinal Health China division, this segment imports and distributes pharmaceuticals, over-the-counter healthcare and consumer products as well as provides specialty pharmacy and other services in China. | ||||||||||||
The Medical segment distributes a broad range of medical, surgical and laboratory products to hospitals, ambulatory surgery centers, clinical laboratories, physician offices and other healthcare providers in the United States, Canada and China and to patients in the home in the United States. This segment also manufactures, sources and develops its own line of private brand medical and surgical products. Our medical and surgical products are sold directly or through third-party distributors in the United States, Canada, Europe and other regions internationally. | ||||||||||||
The following table presents revenue for each reportable segment and Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical (1) | $ | 80,110 | $ | 91,097 | $ | 97,925 | ||||||
Medical | 10,962 | 10,060 | 9,642 | |||||||||
Total segment revenue | 91,072 | 101,157 | 107,567 | |||||||||
Corporate (2) | 12 | (64 | ) | (15 | ) | |||||||
Total revenue | $ | 91,084 | $ | 101,093 | $ | 107,552 | ||||||
-1 | Our pharmaceutical distribution contract with Walgreens expired on August 31, 2013. Our pharmaceutical distribution contract with Express Scripts, Inc. expired on September 30, 2012. | |||||||||||
-2 | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. | |||||||||||
We evaluate segment performance based upon segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment 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 other ratable allocation methodologies. 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 $33 million, $37 million and $21 million for fiscal 2014, 2013 and 2012, respectively. | ||||||||||||
The following table presents segment profit by reportable segment and Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 1,745 | $ | 1,734 | $ | 1,558 | ||||||
Medical | 444 | 372 | 332 | |||||||||
Total segment profit | 2,189 | 2,106 | 1,890 | |||||||||
Corporate | (304 | ) | (1,110 | ) | (98 | ) | ||||||
Total operating earnings | $ | 1,885 | $ | 996 | $ | 1,792 | ||||||
The following tables present depreciation and amortization and additions to property and equipment by reportable segment and at Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 128 | $ | 125 | $ | 114 | ||||||
Medical | 130 | 137 | 119 | |||||||||
Corporate | 201 | 135 | 92 | |||||||||
Total depreciation and amortization | $ | 459 | $ | 397 | $ | 325 | ||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 72 | $ | 46 | $ | 44 | ||||||
Medical | 72 | 48 | 100 | |||||||||
Corporate | 105 | 101 | 116 | |||||||||
Total additions to property and equipment | $ | 249 | $ | 195 | $ | 260 | ||||||
The following table presents total assets for each reportable segment and Corporate at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 15,361 | $ | 16,258 | $ | 16,642 | ||||||
Medical | 6,768 | 6,521 | 4,399 | |||||||||
Corporate | 3,904 | 3,040 | 3,219 | |||||||||
Total assets | $ | 26,033 | $ | 25,819 | $ | 24,260 | ||||||
The following tables present revenue and property and equipment, net by geographic area: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 87,449 | $ | 97,994 | $ | 105,205 | ||||||
International | 3,635 | 3,099 | 2,347 | |||||||||
Total revenue | $ | 91,084 | $ | 101,093 | $ | 107,552 | ||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 1,301 | $ | 1,355 | $ | 1,425 | ||||||
International | 158 | 134 | 126 | |||||||||
Property and equipment, net | $ | 1,459 | $ | 1,489 | $ | 1,551 | ||||||
ShareBased_Compensation_and_Sa
Share-Based Compensation and Savings Plans | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments | ' | |||||||||||
Share-Based Compensation and Savings Plans | ||||||||||||
Share-Based Compensation Plans | ||||||||||||
We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. At June 30, 2014, 26 million shares remain available for future issuances under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (“2011 LTIP”). Under the 2011 LTIP's fungible share counting provisions, stock options are counted against the plan as one share for every share issued; awards other than stock options are counted against the plan as two and one-half shares for every share issued. This means that only 10 million shares could be issued under awards other than stock options while 26 million shares could be issued under stock options. Shares are issued out of treasury shares when stock options are exercised and when restricted share units and performance share units vest. | ||||||||||||
The following table provides total share-based compensation expense by type of award: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Restricted shares and share unit expense | $ | 62 | $ | 60 | $ | 55 | ||||||
Employee stock option expense | 21 | 23 | 25 | |||||||||
Performance share unit expense | 13 | 10 | 6 | |||||||||
Stock appreciation right income | — | — | (1 | ) | ||||||||
Total share-based compensation | $ | 96 | $ | 93 | $ | 85 | ||||||
The total tax benefit related to share-based compensation was $33 million, $32 million and $31 million for fiscal 2014, 2013 and 2012, 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 on the grant date. | ||||||||||||
The following table summarizes all stock option transactions under the Plans: | ||||||||||||
(in millions, except per share amounts) | Stock | Weighted-Average | ||||||||||
Options | Exercise Price per | |||||||||||
Common Share | ||||||||||||
Outstanding at June 30, 2012 | 21 | $ | 37.29 | |||||||||
Granted | 3 | 39.81 | ||||||||||
Exercised | (6 | ) | 33.19 | |||||||||
Canceled and forfeited | (3 | ) | 46.91 | |||||||||
Outstanding at June 30, 2013 | 15 | $ | 36.97 | |||||||||
Granted | 2 | 51.77 | ||||||||||
Exercised | (7 | ) | 38.29 | |||||||||
Canceled and forfeited | — | — | ||||||||||
Outstanding at June 30, 2014 | 10 | $ | 39.16 | |||||||||
Exercisable at June 30, 2014 | 5 | $ | 33.62 | |||||||||
The following tables provide additional data related to stock option activity: | ||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2012 | |||||||||
Aggregate intrinsic value of outstanding options at period end | $ | 282 | $ | 156 | $ | 137 | ||||||
Aggregate intrinsic value of exercisable options at period end | 185 | 113 | 84 | |||||||||
Aggregate intrinsic value of exercised options | 155 | 64 | 27 | |||||||||
Cash received upon exercise | 227 | 121 | 42 | |||||||||
Cash tax proceeds/(disbursements) realized related to exercise | 39 | (19 | ) | (4 | ) | |||||||
Total compensation cost, net of estimated forfeitures, related to unvested stock options not yet recognized, pre-tax | 24 | 22 | 25 | |||||||||
Total fair value of shares vested during the year | 20 | 28 | 26 | |||||||||
Weighted-average grant date fair value per stock option | 10.32 | 8.15 | 9.26 | |||||||||
(in years) | 2014 | 2013 | 2012 | |||||||||
Weighted-average remaining contractual life of outstanding options | 6 | 4 | 3 | |||||||||
Weighted-average remaining contractual life of exercisable options | 4 | 3 | 2 | |||||||||
Weighted-average period over which stock option compensation cost is expected to be recognized | 2 | 2 | 2 | |||||||||
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, which are disclosed in the table below. The risk-free rate is based on the U.S. Treasury yield curve at the time of the grant. We analyzed historical data to estimate option exercise behaviors and employee terminations to be used within the lattice model. The expected life of the options granted was calculated from the option valuation model and represents the length of time in years that the options granted are expected to be outstanding. Expected volatilities are based on implied volatility from traded options on our common shares and historical volatility over a period of time commensurate with the contractual term of the option grant (up to ten years). The following table provides the range of assumptions used to estimate the fair value of stock options: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 1.90% | - | 2.00% | 1.10% | - | 1.30% | 1.20% | - | 1.30% | |||
Expected volatility | 27% | 29% | 29% | |||||||||
Dividend yield | 1.80% | - | 2.40% | 2.10% | - | 2.50% | 2.00% | - | 2.10% | |||
Expected life in years | 6 | 6 | 6 | |||||||||
Restricted Shares and Restricted Share Units | ||||||||||||
Restricted shares and restricted share units granted under the Plans generally vest in equal annual installments over three years. Restricted shares and restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards. | ||||||||||||
The following table summarizes all transactions related to restricted shares and restricted share units under the Plans: | ||||||||||||
(in millions, except per share amounts) | Shares | Weighted-Average | ||||||||||
Grant Date Fair | ||||||||||||
Value per Share | ||||||||||||
Nonvested at June 30, 2012 | 4 | $ | 35.46 | |||||||||
Granted | 2 | 40.02 | ||||||||||
Vested | (2 | ) | 33.41 | |||||||||
Canceled and forfeited | (1 | ) | 38.84 | |||||||||
Nonvested at June 30, 2013 | 3 | $ | 38.74 | |||||||||
Granted | 1 | 52.4 | ||||||||||
Vested | (1 | ) | 37.59 | |||||||||
Canceled and forfeited | — | — | ||||||||||
Nonvested at June 30, 2014 | 3 | $ | 45.65 | |||||||||
The following table provides additional data related to restricted share and restricted share unit activity: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax | $ | 75 | $ | 67 | $ | 67 | ||||||
Weighted-average period over which restricted share and share unit cost is expected to be recognized (in years) | 2 | 2 | 2 | |||||||||
Total fair value of shares vested during the year | $ | 55 | $ | 60 | $ | 54 | ||||||
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. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. | ||||||||||||
The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): | ||||||||||||
(in millions, except per share amounts) | Performance | Weighted-Average | ||||||||||
Share Units | Grant Date Fair | |||||||||||
Value per Share | ||||||||||||
Nonvested at June 30, 2012 | 0.5 | $ | 42.6 | |||||||||
Granted | 0.3 | 39.81 | ||||||||||
Vested | — | — | ||||||||||
Canceled and forfeited | — | — | ||||||||||
Nonvested at June 30, 2013 | 0.8 | $ | 41.37 | |||||||||
Granted | 0.3 | 51.49 | ||||||||||
Vested (1) | (0.2 | ) | 41.6 | |||||||||
Canceled and forfeited | — | — | ||||||||||
Nonvested at June 30, 2014 | 0.9 | $ | 44.41 | |||||||||
-1 | Vested based on achievement of 143 percent of the target performance goal. | |||||||||||
The following table provides additional data related to performance share unit activity: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Total compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized, pre-tax | $ | 15 | $ | 12 | $ | 12 | ||||||
Weighted-average period over which performance share unit cost is expected to be recognized (in years) | 2 | 2 | 2 | |||||||||
Total fair value of shares vested during the year | $ | 7 | $ | — | $ | — | ||||||
Employee Retirement Savings Plans | ||||||||||||
Substantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored contributory retirement savings plans, which include features under Section 401(k) of the Internal Revenue Code of 1986, as amended, and provide for matching and profit sharing contributions by us. Our contributions to the plans are determined by the Board of Directors subject to certain minimum requirements as specified in the plans. The total expense for our employee retirement savings plans was $75 million, $68 million and $53 million for fiscal 2014, 2013 and 2012, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Information, Disclosure | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following is selected quarterly financial data for fiscal 2014 and 2013. The sum of the quarters may not equal year-to-date due to rounding. | ||||||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | |||||||||||||
Fiscal 2014 | ||||||||||||||||
Revenue | $ | 24,523 | $ | 22,240 | $ | 21,427 | $ | 22,894 | ||||||||
Gross margin | 1,264 | 1,345 | 1,297 | 1,256 | ||||||||||||
Distribution, selling, general and administrative expenses | 732 | 766 | 736 | 795 | ||||||||||||
Earnings from continuing operations | 340 | 275 | 315 | 234 | ||||||||||||
Earnings/(loss) from discontinued operations | (1 | ) | 3 | — | — | |||||||||||
Net earnings | 339 | 278 | 315 | 234 | ||||||||||||
Earnings from continuing operations per common share: | ||||||||||||||||
Basic | $ | 1 | $ | 0.8 | $ | 0.92 | $ | 0.69 | ||||||||
Diluted | 0.99 | 0.79 | 0.91 | 0.68 | ||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (2) | |||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 25,889 | $ | 25,232 | $ | 24,552 | $ | 25,420 | ||||||||
Gross margin | 1,159 | 1,224 | 1,291 | 1,247 | ||||||||||||
Distribution, selling, general and administrative expenses | 690 | 699 | 712 | 775 | ||||||||||||
Earnings/(loss) from continuing operations | 272 | 303 | 346 | (586 | ) | |||||||||||
Loss from discontinued operations, net of tax | (1 | ) | — | (1 | ) | — | ||||||||||
Net earnings/(loss) | 271 | 303 | 345 | (586 | ) | |||||||||||
Earnings/(loss) from continuing operations per common share: | ||||||||||||||||
Basic | $ | 0.8 | $ | 0.89 | $ | 1.01 | $ | (1.72 | ) | |||||||
Diluted (3) | 0.79 | 0.88 | 1 | (1.72 | ) | |||||||||||
-1 | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-2 | During the fourth quarter of fiscal 2013, we recorded an out-of-period increase in income tax expense of $14 million related to uncertain tax benefits, of which generally less than $1 million pertained to the each of the first three quarters of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-3 | Due to the loss from continuing operations incurred during the fourth quarter of fiscal 2013, potential dilutive common shares have not been included in the denominator of the diluted per share computation for this period due to their antidilutive effect. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | ' | |||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts (1) | ||||||||||||||||||||
(in millions) | Balance at | Charged to Costs | Charged to | Deductions (4) | Balance at | |||||||||||||||
Beginning of Period | and Expenses (2) | Other Accounts (3) | End of Period | |||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||
Accounts receivable | $ | 134 | $ | 51 | $ | 2 | $ | (50 | ) | $ | 137 | |||||||||
Finance notes receivable | 17 | — | 2 | (1 | ) | 18 | ||||||||||||||
Sales returns and allowances (5) | 291 | 1,735 | — | (1,753 | ) | 273 | ||||||||||||||
Other | 1 | — | — | — | 1 | |||||||||||||||
$ | 443 | $ | 1,786 | $ | 4 | $ | (1,804 | ) | $ | 429 | ||||||||||
Fiscal 2013 | ||||||||||||||||||||
Accounts receivable | $ | 126 | $ | 40 | $ | 2 | $ | (34 | ) | $ | 134 | |||||||||
Finance notes receivable | 16 | 1 | — | — | 17 | |||||||||||||||
Sales returns and allowances (5) | — | 291 | — | — | 291 | |||||||||||||||
Other | 1 | — | — | — | 1 | |||||||||||||||
$ | 143 | $ | 332 | $ | 2 | $ | (34 | ) | $ | 443 | ||||||||||
Fiscal 2012 | ||||||||||||||||||||
Accounts receivable | $ | 134 | $ | 22 | $ | 1 | $ | (31 | ) | $ | 126 | |||||||||
Finance notes receivable | 15 | — | — | 1 | 16 | |||||||||||||||
Other | 1 | — | — | — | 1 | |||||||||||||||
$ | 150 | $ | 22 | $ | 1 | $ | (30 | ) | $ | 143 | ||||||||||
-1 | Amounts included herein pertain to the continuing operations of the Company. | |||||||||||||||||||
-2 | Fiscal 2014 and 2013 include $9 million and $10 million, respectively, for reserves related to customer pricing disputes, excluded from provision for bad debts on the consolidated statements of cash flows and classified as a reduction in gross margin in the consolidated statements of earnings. | |||||||||||||||||||
-3 | Recoveries of amounts provided for or written off in prior years were $3 million for fiscal 2014 and $1 million for both fiscal 2013 and 2012, respectively. | |||||||||||||||||||
-4 | Write-off of uncollectible accounts or actual sales returns. | |||||||||||||||||||
-5 | Effective June 30, 2013, we prospectively updated our policy to accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. Prior to this change in policy, we recognized sales returns as a reduction of revenue and cost of products sold for the sales price and cost, respectively, when products were returned. |
Basis_of_Presentation_Summary_1
Basis of Presentation, Summary of Significant Accounting Policies and Other (Policies) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Basis of Presentation, Policy | ' | ||||||||||||||
Basis of Presentation | |||||||||||||||
Our consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. To conform to the current year presentation, certain prior year amounts have been reclassified. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. | |||||||||||||||
Use of Estimates, Policy | ' | ||||||||||||||
Use of Estimates | |||||||||||||||
Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in accordance with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation, business combinations, goodwill and other intangible asset impairment, vendor reserves, loss contingencies, income taxes and share-based compensation. Actual amounts could ultimately differ from these estimated amounts. | |||||||||||||||
Cash Equivalents, Policy | ' | ||||||||||||||
Cash Equivalents | |||||||||||||||
We consider liquid investments purchased with a maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value. | |||||||||||||||
Receivables, Policy | ' | ||||||||||||||
Receivables | |||||||||||||||
Trade receivables are primarily comprised of amounts owed to us through our distribution businesses and are presented net of an allowance for doubtful accounts of $137 million and $134 million at June 30, 2014 and 2013, respectively. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We continuously monitor past due accounts and establish appropriate reserves to cover potential losses, which are based primarily on historical collection rates and the credit worthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. | |||||||||||||||
We provide financing to various customers. Such financing arrangements range from 270 days to 5 years, at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes and related accrued interest were $158 million (current portion $51 million) and $161 million (current portion $29 million) at June 30, 2014 and 2013, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable are reported net of an allowance for doubtful accounts of $18 million and $17 million at June 30, 2014 and 2013, respectively. We estimate an allowance for these financing receivables based on historical collection rates and the credit worthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. | |||||||||||||||
Concentrations of Credit Risk, Policy | ' | ||||||||||||||
Concentrations of Credit Risk | |||||||||||||||
We maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses. Investments in marketable securities consist of a portfolio of high-grade instruments. Such investments are made only in instruments issued by highly-rated institutions, whose financial condition we monitor. | |||||||||||||||
Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. Such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform ongoing credit evaluations of our customers’ financial conditions and maintain reserves for credit losses. Historically, such losses have been within our expectations. | |||||||||||||||
Major Customers, Policy | ' | ||||||||||||||
Major Customers | |||||||||||||||
The following table summarizes all of our customers that individually account for at least 10 percent of revenue and their corresponding percent of gross trade receivables. The customers in the table below are primarily serviced through our Pharmaceutical segment. | |||||||||||||||
Percent of Revenue | Percent of Gross Trade Receivables at June 30 | ||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||
CVS | 28 | % | 23 | % | 22 | % | 22 | % | 19 | % | |||||
Walgreen Co. | 4 | % | 20 | % | 21 | % | — | % | 24 | % | |||||
Our pharmaceutical distribution contract with Walgreen Co. ("Walgreens") expired on August 31, 2013. | |||||||||||||||
We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Novation, LLC and Premier Purchasing Partners, L.P. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 17 percent, 13 percent and 13 percent of revenue for fiscal 2014, 2013 and 2012, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements. | |||||||||||||||
Inventories, Policy | ' | ||||||||||||||
Inventories | |||||||||||||||
A substantial portion of our inventories (61 percent and 65 percent at June 30, 2014 and 2013, respectively) are valued at the lower of cost, using the last-in, first-out ("LIFO") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within these distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation. | |||||||||||||||
If we had used the average cost method of inventory valuation for all inventory within the distribution facilities, the value of our inventories would not have changed in fiscal 2014 or 2013. Inventories valued at LIFO were $98 million and $97 million higher than the average cost value at June 30, 2014 and 2013, respectively. We do not record inventories in excess of replacement cost. As such, we did not record any changes in our LIFO reserve in fiscal 2014 and 2013. Our remaining inventory is primarily stated at the lower of cost, using the first-in, first-out method, or market. | |||||||||||||||
Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $44 million and $40 million at June 30, 2014 and 2013, respectively. We reserve for inventory obsolescence using estimates based on historical experience, sales trends, specific categories of inventory and age of on-hand inventory. | |||||||||||||||
Cash Discounts, Policy | ' | ||||||||||||||
Cash Discounts | |||||||||||||||
Manufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold when the related inventory is sold. | |||||||||||||||
Property and Equipment, Policy | ' | ||||||||||||||
Property and Equipment | |||||||||||||||
Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. | |||||||||||||||
During fiscal 2013, as a result of the reductions in the anticipated future cash flows in our Nuclear Pharmacy Services division as discussed in Note 5, we also performed recoverability testing for the long-lived assets of this division, which consist primarily of leasehold improvements, machinery and equipment. Based on the assessment performed, we determined that the carrying amounts of the long-lived assets are recoverable. | |||||||||||||||
Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including capital lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; and furniture and fixtures—3 to 7 years. We recorded depreciation expense of $265 million, $269 million and $243 million, for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||
The following table presents the components of property and equipment, net at June 30: | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Land, building and improvements | $ | 1,419 | $ | 1,398 | |||||||||||
Machinery and equipment | 2,326 | 2,149 | |||||||||||||
Furniture and fixtures | 125 | 122 | |||||||||||||
Total property and equipment, at cost | 3,870 | 3,669 | |||||||||||||
Accumulated depreciation and amortization | (2,411 | ) | (2,180 | ) | |||||||||||
Property and equipment, net | $ | 1,459 | $ | 1,489 | |||||||||||
Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 3.68 percent at June 30, 2014. The amount of capitalized interest was immaterial for all periods presented. | |||||||||||||||
Business Combinations, Policy | ' | ||||||||||||||
Business Combinations | |||||||||||||||
The assets acquired and liabilities assumed in a business combination, including identifiable intangible assets, are based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired is recorded as goodwill. We base the fair values of identifiable intangible assets on detailed valuations that require management to make significant judgments, estimates and assumptions. Critical estimates and assumptions include: expected future cash flows for customer relationships, trade names and other identifiable intangible assets; discount rates that reflect the risk factors associated with future cash flows; and estimates of useful lives. When an acquisition involves contingent consideration, we recognize a liability equal to the fair value of the contingent consideration obligation at the acquisition date. The estimate of fair value of a contingent consideration obligation requires subjective assumptions to be made regarding future business results, discount rates and probabilities assigned to various potential business result scenarios. Subsequent revisions to these assumptions could materially change the estimate of the fair value of contingent consideration obligations and therefore could materially affect our financial position or results of operations. See Note 2 for additional information regarding our acquisitions. | |||||||||||||||
Goodwill and Other Intangible Assets, Policy | ' | ||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||
Purchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. Intangible assets with finite lives, primarily customer relationships; trademarks, trade names and patents; and non-compete agreements, are amortized over their useful lives. | |||||||||||||||
Goodwill impairment testing involves a comparison of the estimated fair value of reporting units to the respective carrying amount, which may be performed utilizing either a qualitative or quantitative assessment. A reporting unit is defined as an operating segment or one level below an operating segment (also known as a component). If the estimated fair value exceeds the carrying amount, then no impairment exists. If the carrying amount exceeds the estimated fair value, then a second step is performed to determine the amount of impairment, if any. An impairment charge is the amount by which the carrying amount of goodwill exceeds the estimated implied fair value of goodwill. We estimate the implied fair value of goodwill as the excess of the estimated fair value of the reporting unit over the estimated fair value of its net tangible and identifiable intangible assets. This is the same manner we use to recognize goodwill from a business combination. Goodwill impairment testing involves judgment, including the identification of reporting units, the estimation of the fair value of each reporting unit and, if necessary, the estimation of the implied fair value of goodwill. | |||||||||||||||
We have two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. These operating segments are comprised of divisions (components), for which discrete financial information is available. Components are aggregated into reporting units for purposes of goodwill impairment testing to the extent that they share similar economic characteristics. Our reporting units are: Pharmaceutical operating segment (excluding our Nuclear Pharmacy Services division and Cardinal Health China - Pharmaceutical division); Nuclear Pharmacy Services division; Cardinal Health China - Pharmaceutical division; Medical operating segment (excluding our Cardinal Health at Home division ("Home division")); and Home division. | |||||||||||||||
Fair value can be determined using market, income or cost-based approaches. Our determination of estimated fair value of the reporting units is based on a combination of the income-based and market-based approaches. Under the income-based approach, we use a discounted cash flow model in which cash flows anticipated over several future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate risk-adjusted rate of return. We use our internal forecasts to estimate future cash flows and include an estimate of long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ materially from those used in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. Discount rates used in our reporting unit valuations ranged from 9 to 12 percent. Under the market-based approach, we determine fair value by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. To further confirm fair value, we compare the aggregate fair value of our reporting units to our total market capitalization. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. The use of alternate estimates and assumptions or changes in the industry or peer groups could materially affect the determination of fair value for each reporting unit and potentially result in goodwill impairment. | |||||||||||||||
We performed annual impairment testing in fiscal 2014, 2013 and 2012 and, with the exception of our Nuclear Pharmacy Services division in fiscal 2013, concluded that there were no impairments of goodwill as the estimated fair value of each reporting unit exceeded its carrying value. For our fiscal 2014, 2013 and 2012 testing, we elected to bypass the optional qualitative assessment. As discussed further in Note 5, during the fourth quarter of fiscal 2013 we recognized an $829 million ($799 million, net of tax) goodwill impairment charge related to our Nuclear Pharmacy Services division, which is included in impairments and loss on disposal of assets in our consolidated statements of earnings. | |||||||||||||||
We review intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of the undiscounted cash flows expected to be generated by the asset. | |||||||||||||||
Investment, Policy | ' | ||||||||||||||
Investments | |||||||||||||||
Investments in non-marketable equity securities are accounted for under either the cost or equity method of accounting and are included in other assets in the consolidated balance sheets. For investments in which we can exercise significant influence, we use the equity method of accounting and our share of the earnings and losses, which was immaterial, both individually and in the aggregate, for all periods presented, is recorded in other income, net in the consolidated statements of the earnings. We monitor investments for other-than-temporary impairment by considering factors such as the operating performance of the investment and current economic and market conditions. | |||||||||||||||
During fiscal 2014, we sold our minority equity interests in two investments for proceeds of $47 million, which resulted in a pre-tax gain of $32 million ($20 million, net of tax) included in other income, net in the consolidated statements of earnings. | |||||||||||||||
Also during fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Unrealized gains and losses on available-for-sale securities, net of applicable taxes, are included within shareholders’ equity in accumulated other comprehensive income ("AOCI"). We monitor these securities for other-than-temporary impairment by considering factors such as the duration that, and the extent to which, the fair value is below cost, the operating performance and credit worthiness of the issuer of the securities and current economic and market conditions. See Note 6 for additional information regarding available-for-sale securities. | |||||||||||||||
We previously held $72 million of investments in fixed income corporate debt securities, which were classified as held-to-maturity and matured during fiscal 2013. | |||||||||||||||
Cost of Sales, Vendor Reserves, Policy | ' | ||||||||||||||
Vendor Reserves | |||||||||||||||
In the ordinary course of business, our vendors may dispute deductions taken against payments otherwise due to them or assert other billing disputes. These disputed transactions are researched and resolved based upon our policy and findings of the research performed. At any given time, there are outstanding items in various stages of research and resolution. In determining appropriate reserves for areas of exposure with our vendors, we assess historical experience and current outstanding claims. We have established various levels of reserves based on the type of claim and status of review. Though the claim types are relatively consistent, we periodically refine our methodology by updating the reserve estimate percentages to reflect actual historical experience. The ultimate outcome of certain claims may be different than our original estimate and may require an adjustment. All adjustments to vendor reserves are included in cost of products sold. In addition, the reserve balance will fluctuate due to variations of outstanding claims from period-to-period, timing of settlements and specific vendor issues, such as bankruptcies. Vendor reserves were $82 million and $66 million at June 30, 2014 and 2013, respectively, excluding third-party returns. See separate section in Note 1 for a description of third-party returns. | |||||||||||||||
Cost Of Sales, Vendor Incentives, Policy | ' | ||||||||||||||
Vendor Incentives | |||||||||||||||
Fees for services and other incentives received from vendors relating to the purchase or distribution of inventory represent product discounts and are recorded as a reduction of cost of products sold in the consolidated statements of earnings upon sale of the related inventory. | |||||||||||||||
Loss Contingencies, Policy | ' | ||||||||||||||
Loss Contingencies | |||||||||||||||
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 these matters are 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. See Note 9 for additional information regarding loss contingencies. | |||||||||||||||
Income Taxes, Policy | ' | ||||||||||||||
Income Taxes | |||||||||||||||
We account for income taxes using the asset and liability method. The asset and liability method requires recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax bases and financial reporting bases of our assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. Deferred taxes are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are permanently reinvested. | |||||||||||||||
Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. See Note 8 for additional information regarding income taxes. | |||||||||||||||
Share-Based Compensation, Policy | ' | ||||||||||||||
Share-Based Compensation | |||||||||||||||
Share-based compensation to employees is recognized in the consolidated statements of earnings based on the grant date fair value of the awards. The fair value of stock options is determined on the grant date using a lattice valuation model. The fair value of restricted share units and 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, which may vary over time, of the number of shares that ultimately will be issued. The compensation expense recognized for share-based awards is net of estimated forfeitures and is recognized ratably over the service period of the awards. We classify share-based compensation expense in distribution, selling, general and administrative ("SG&A") expenses to correspond with the same line item as the majority of the cash compensation paid to employees. If awards are modified in connection with a restructuring activity, the incremental share-based compensation expense is classified in restructuring and employee severance. See Note 16 for additional information regarding share-based compensation. | |||||||||||||||
Revenue Recognition, Policy | ' | ||||||||||||||
Revenue Recognition | |||||||||||||||
We recognize revenue when persuasive evidence of an arrangement exists, product delivery has occurred or the services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. | |||||||||||||||
Pharmaceutical Segment | |||||||||||||||
The Pharmaceutical segment recognizes distribution revenue when title transfers to its customers and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Revenue for deliveries that are directly shipped to customer warehouses from the manufacturer when we act as an intermediary in the ordering and delivery of products is recorded gross. This is in accordance with accounting standards addressing reporting revenue on a gross basis as a principal versus on a net basis as an agent. This revenue is recorded on a gross basis since we incur credit risk from the customer, bear the risk of loss for incomplete shipments and do not receive a separate fee or commission for the transaction and, as such, are the primary obligor. Revenue from these sales is recognized when title transfers to the customer and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Radiopharmaceutical revenue is recognized upon delivery of the product to the customer and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Medical Segment | |||||||||||||||
The Medical segment recognizes revenue when title transfers to its customers and we have no further obligation to provide services related to such merchandise. | |||||||||||||||
Sales Returns and Allowances (including Third-Party Returns), Policy | ' | ||||||||||||||
Sales Returns and Allowances | |||||||||||||||
Revenue is recorded net of sales returns and allowances. Our customer return policies generally require that the product be physically returned, subject to restocking fees, in a condition suitable to be added back to inventory and resold at full value, or returned to vendors for credit (“merchantable product”). Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer. | |||||||||||||||
Effective June 30, 2013, we updated our policy to accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. This prospective change did not have a material effect on consolidated revenue, cost of products sold or operating earnings. At June 30, 2014 and 2013, the accrual for estimated sales returns and allowances was $273 million and $291 million, respectively, the impact of which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Prior to this change in policy, we recognized sales returns as a reduction of revenue and cost of products sold for the sales price and cost, respectively, when products were returned. Amounts recorded in revenue and cost of products sold under our prior accounting policy closely approximated what would have been recorded had we accrued for estimated sales returns and allowances at the time of the sale transaction. As such, retrospective adoption of our new policy to accrue for estimated sales returns and allowances would not have materially changed our results of operations and financial position in fiscal 2012. Sales returns and allowances were $1.7 billion, $2.3 billion and $1.9 billion, for fiscal 2014, 2013 and 2012, respectively. | |||||||||||||||
Third-Party Returns | |||||||||||||||
Since we generally do not accept non-merchantable product returns from our customers, many of our customers return non-merchantable pharmaceutical products to our vendors through third parties. Since our customers generally do not have a direct relationship with our vendors, our vendors pass the value of the returns to us (usually in the form of an accounts payable deduction). We in turn pass the value received, less an administrative fee, to our customer. In certain instances, we pass the estimated value of the return to our customer prior to processing the deduction with our vendors. Although we believe we have satisfactory protections, we could be subject to claims from customers or vendors if our administration of this overall process was deficient in some respect or our contractual terms with vendors are in conflict with our contractual terms with our customers. We have maintained reserves for some of these situations based on their nature and our historical experience with their resolution. | |||||||||||||||
Distribution Service Agreement and Other Vendor Fees, Policy | ' | ||||||||||||||
Distribution Service Agreement and Other Vendor Fees | |||||||||||||||
Our Pharmaceutical segment recognizes fees received from its distribution service agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment. Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings when the inventory is sold. | |||||||||||||||
Shipping and Handling, Policy | ' | ||||||||||||||
Shipping and Handling | |||||||||||||||
Shipping and handling costs are primarily included in SG&A expenses in our consolidated statements of earnings. Shipping and handling costs include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs were $430 million, $419 million and $389 million, for fiscal 2014, 2013 and 2012, respectively. Revenue received for shipping and handling was immaterial for all periods presented. | |||||||||||||||
Restructuring and Employee Severance, Policy | ' | ||||||||||||||
Restructuring and Employee Severance | |||||||||||||||
We consider restructuring activities to be programs by which we fundamentally change our operations, such as closing and consolidating facilities, moving manufacturing of a product to another location, production or business process sourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure of a business unit in response to changing market conditions). See Note 3 for additional information regarding our restructuring activities. | |||||||||||||||
Amortization and Other Acquisition-Related Costs, Policy | ' | ||||||||||||||
Amortization and Other Acquisition-Related Costs | |||||||||||||||
We classify costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings. These costs consist primarily of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations. Transaction costs are incurred during the initial evaluation of a potential acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as due diligence activities. Integration costs relate to activities required to combine the operations of an acquired enterprise into our operations. We record changes in the fair value of contingent consideration obligations relating to acquisitions as income or expense in amortization and other acquisition-related costs. See Note 5 for additional information regarding amortization of acquisition-related intangible assets. | |||||||||||||||
In fiscal 2011, we completed the acquisition of privately-held Healthcare Solutions Holding, LLC ("P4 Healthcare") for cash and certain contingent consideration. In connection with this acquisition, the former owners of P4 Healthcare had the right to receive certain contingent payments based on earnings before interest, taxes, depreciation and amortization. As a result of changes in our estimate of performance in future periods, coupled with the progress of discussions with the former owners regarding an early termination and settlement, we recorded a $71 million decrease in fair value of the obligation during fiscal 2012; and settled and terminated the remaining contingent consideration obligation for $4 million in fiscal 2013. | |||||||||||||||
Translation of Foreign Currencies, Policy | ' | ||||||||||||||
Translation of Foreign Currencies | |||||||||||||||
Financial statements of our subsidiaries outside the United States are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of these foreign subsidiaries into U.S. dollars are accumulated in shareholders’ equity through AOCI utilizing period-end exchange rates. Revenues and expenses of these foreign subsidiaries are translated using average exchange rates during the year. | |||||||||||||||
The foreign currency translation gains/(losses) included in AOCI at June 30, 2014 and 2013 are presented in Note 13. Foreign currency transaction gains and losses for the period are included in the consolidated statements of earnings in other income, net, and were immaterial for all periods presented. | |||||||||||||||
Interest Rate, Currency and Commodity Risk, Policy | ' | ||||||||||||||
Interest Rate, Currency and Commodity Risk | |||||||||||||||
All derivative instruments are recognized at fair value on the consolidated balance sheets and all changes in fair value are recognized in net earnings or shareholders’ equity through AOCI, net of tax. | |||||||||||||||
For contracts that qualify for hedge accounting treatment, our policy requires that the hedge contracts must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. Hedge effectiveness is assessed periodically. Any contract not designated as a hedge, or so designated but ineffective, is adjusted to fair value and recognized immediately in net earnings. If a fair value or cash flow hedge ceases to qualify for hedge accounting treatment, the contract continues to be carried on the balance sheet at fair value until settled and future adjustments to the contract’s fair value are recognized immediately in net earnings. If a forecasted transaction is no longer considered probable of occurring, amounts previously deferred in AOCI are recognized immediately in net earnings. See Note 12 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow and economic hedges. | |||||||||||||||
Earnings per Common Share, Policy | ' | ||||||||||||||
Earnings per Common Share | |||||||||||||||
Basic earnings per share (“EPS”) is computed by dividing net earnings (the numerator) by the weighted-average number of common shares outstanding during each period (the denominator). Diluted EPS is similar to the computation for basic EPS, except that the denominator is increased by the dilutive effect of vested and nonvested stock options, restricted shares, restricted share units and performance share units, computed using the treasury stock method. The total number of common shares issued, less the common shares held in treasury, is used to determine the common shares outstanding. See Note 14 for additional information regarding EPS. | |||||||||||||||
Fair Value Measurements, Policy | ' | ||||||||||||||
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: | |||||||||||||||
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. | ||||||||||||||
See Note 11 for additional information regarding fair value measurements. | |||||||||||||||
Recent Financial Accounting Standards, Policy | ' | ||||||||||||||
Recent Financial Accounting Standards | |||||||||||||||
In June 2014, the Financial Accounting Standards Board ("FASB") issued guidance on accounting for share-based payments with performance targets. This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This guidance will be effective for us in the first quarter of fiscal 2017, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our financial position or results of operations. | |||||||||||||||
In May 2014, the FASB issued amended accounting guidance related to revenue recognition. This guidance is based on the principle that revenue is recognized in an amount that reflects the consideration to which an entity expects to be entitled in exchange for the transfer of goods or services to customers. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This amendment will be effective for us in the first quarter of fiscal 2018. We are currently evaluating the options for adoption and the impact on our financial position and results of operations. | |||||||||||||||
In April 2014, the FASB issued amended accounting guidance related to the reporting of discontinued operations and disclosures of disposals of components of an entity. The amended guidance changes the thresholds for disposals to qualify as discontinued operations and requires additional disclosures. This amendment will be effective for us in the first quarter of fiscal 2016, with early adoption permitted. We will adopt this guidance on a prospective basis, and we do not expect the adoption to impact our financial position or results of operations. | |||||||||||||||
In July 2013, the FASB issued amended accounting guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain conditions exists. This guidance will be effective for us in the first quarter of fiscal 2015. We do not expect the adoption of this guidance to impact our financial position or results of operations. | |||||||||||||||
In March 2013, the FASB issued amended accounting guidance related to a parent company's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or group of assets within a foreign entity or of an investment in a foreign entity. The amended guidance requires the release of any cumulative translation adjustment into net income only upon complete or substantially complete liquidation of a controlling interest in a subsidiary or a group of assets within a foreign entity. Also, it requires the release of all or a pro rata portion of the cumulative translation adjustment to net income in the case of sale of an equity method investment that is a foreign entity. This amendment will be effective for us in the first quarter of fiscal 2015. We do not expect the adoption of this guidance to impact our financial position or results of operations. | |||||||||||||||
In February 2013, the FASB issued amended accounting guidance related to reclassifications out of AOCI. An entity is required to present, either parenthetically on the face of the statement where net income is presented or in the notes, the significant amounts, by component, reclassified out of AOCI by the respective line items of net income and to report changes in its AOCI balances by component. We adopted this amended guidance on a prospective basis in the first quarter of fiscal 2014 and have elected to report reclassifications out of AOCI in Note 13. The adoption of this guidance did not impact our financial position or results of operations. | |||||||||||||||
In January 2013, the FASB issued updated guidance to limit the scope of the balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar arrangement. We adopted this amended guidance on a retrospective basis in the first quarter of fiscal 2014. The adoption of this guidance did not impact our financial position or results of operations. See Note 11 for additional information regarding fair value measurements of our derivative instruments. | |||||||||||||||
In July 2012, the FASB issued amended accounting guidance related to testing indefinite-lived intangible assets for impairment. Under this guidance, a company is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the company determines, based on a qualitative assessment, that it is more likely than not that its estimated fair value is less than its carrying amount. We adopted this amended guidance in the first quarter of fiscal 2014. The adoption of this guidance did not impact our financial position or results of operations. |
Basis_of_Presentation_Summary_2
Basis of Presentation, Summary of Significant Accounting Policies and Other (Tables) | 12 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||
Schedule of Revenue and Gross Trade Receivables Percentage by Major Customers | ' | ||||||||||||||
The customers in the table below are primarily serviced through our Pharmaceutical segment. | |||||||||||||||
Percent of Revenue | Percent of Gross Trade Receivables at June 30 | ||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||
CVS | 28 | % | 23 | % | 22 | % | 22 | % | 19 | % | |||||
Walgreen Co. | 4 | % | 20 | % | 21 | % | — | % | 24 | % | |||||
Components of Property and Equipment | ' | ||||||||||||||
The following table presents the components of property and equipment, net at June 30: | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Land, building and improvements | $ | 1,419 | $ | 1,398 | |||||||||||
Machinery and equipment | 2,326 | 2,149 | |||||||||||||
Furniture and fixtures | 125 | 122 | |||||||||||||
Total property and equipment, at cost | 3,870 | 3,669 | |||||||||||||
Accumulated depreciation and amortization | (2,411 | ) | (2,180 | ) | |||||||||||
Property and equipment, net | $ | 1,459 | $ | 1,489 | |||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||
Jun. 30, 2014 | ||||||
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 | Weighted-Average Useful Lives of Identifiable Intangible Assets | ||||
Identifiable intangible assets: | ||||||
Customer relationships | $ | 460 | 9 | |||
Trade names | 160 | 11 | ||||
Other | 7 | 3 | ||||
Total identifiable intangible assets | 627 | 9 | ||||
Cash and equivalents | 25 | |||||
Trade receivables | 103 | |||||
Inventories | 69 | |||||
Prepaid expenses and other | 102 | |||||
Property and equipment | 40 | |||||
Accounts payable | (71 | ) | ||||
Other accrued liabilities | (24 | ) | ||||
Deferred income taxes and other liabilities | (180 | ) | ||||
Total identifiable net assets acquired | 691 | |||||
Goodwill | 1,404 | |||||
Total net assets acquired | $ | 2,095 | ||||
Restructuring_and_Employee_Sev1
Restructuring and Employee Severance (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Restructuring Charges [Abstract] | ' | |||||||||||
Summary of restructuring and employee severance relating to restructuring activity | ' | |||||||||||
The following table summarizes restructuring and employee severance costs related to our restructuring activities: | ||||||||||||
(in millions) | 2014 (3) | 2013 (4) | 2012 | |||||||||
Employee-related costs (1) | $ | 13 | $ | 59 | $ | 20 | ||||||
Facility exit and other costs (2) | 18 | 12 | 1 | |||||||||
Total restructuring and employee severance | $ | 31 | $ | 71 | $ | 21 | ||||||
-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 $10 million of primarily facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||||||||
-4 | Includes $30 million of employee-related costs and $10 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, 2011 | $ | 6 | $ | 4 | $ | 10 | ||||||
Additions | 22 | 1 | 23 | |||||||||
Payments and other adjustments | (12 | ) | (3 | ) | (15 | ) | ||||||
Balance at June 30, 2012 | $ | 16 | $ | 2 | $ | 18 | ||||||
Additions | 63 | 2 | 65 | |||||||||
Payments and other adjustments | (24 | ) | (2 | ) | (26 | ) | ||||||
Balance at June 30, 2013 | $ | 55 | $ | 2 | $ | 57 | ||||||
Additions | 23 | 1 | 24 | |||||||||
Payments and other adjustments | (54 | ) | (3 | ) | (57 | ) | ||||||
Balance at June 30, 2014 | $ | 24 | $ | — | $ | 24 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 (1) | Medical | Total | |||||||||
Balance at June 30, 2012 | $ | 2,876 | $ | 1,102 | $ | 3,978 | ||||||
Goodwill acquired, net of purchase price adjustments | 40 | 1,409 | 1,449 | |||||||||
Foreign currency translation adjustments and other | 7 | (4 | ) | 3 | ||||||||
Impairment | (829 | ) | — | (829 | ) | |||||||
Balance at June 30, 2013 | $ | 2,094 | $ | 2,507 | $ | 4,601 | ||||||
Goodwill acquired, net of purchase price adjustments | 68 | 216 | 284 | |||||||||
Foreign currency translation adjustments and other | (4 | ) | (3 | ) | (7 | ) | ||||||
Balance at June 30, 2014 | $ | 2,158 | $ | 2,720 | $ | 4,878 | ||||||
-1 | At June 30, 2014 and 2013, the accumulated goodwill impairment loss was $829 million. | |||||||||||
Schedule of Intangible Assets | ' | |||||||||||
The following tables summarize other intangible assets by class at June 30: | ||||||||||||
2014 | ||||||||||||
(in millions) | Gross | Accumulated | Net | |||||||||
Intangible | Amortization | Intangible | ||||||||||
Indefinite-life intangibles: | ||||||||||||
Trademarks and other | $ | 14 | $ | — | $ | 14 | ||||||
Total indefinite-life intangibles | 14 | — | 14 | |||||||||
Definite-life intangibles: | ||||||||||||
Customer relationships | 1,043 | 388 | 655 | |||||||||
Trademarks, trade names and patents | 213 | 69 | 144 | |||||||||
Non-compete agreements | 15 | 11 | 4 | |||||||||
Developed technology and other | 243 | 68 | 175 | |||||||||
Total definite-life intangibles | 1,514 | 536 | 978 | |||||||||
Total other intangible assets | $ | 1,528 | $ | 536 | $ | 992 | ||||||
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 | |||||||||
Developed technology and other | 101 | 56 | 45 | |||||||||
Total definite-life intangibles | 1,307 | 345 | 962 | |||||||||
Total other intangible assets | $ | 1,318 | $ | 345 | $ | 973 | ||||||
AvailableforSale_Securities_Ta
Available-for-Sale Securities (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Investments, Debt and Equity Securities [Abstract] | ' | |||
Available-for-sale Securities | ' | |||
We held the following investments in marketable securities at fair value at June 30: | ||||
(in millions) | 2014 | |||
Current available-for-sale securities: | ||||
Commercial paper | $ | 4 | ||
Treasury bills | 85 | |||
International bonds | 1 | |||
Corporate bonds | 3 | |||
Total current available-for-sale securities | 93 | |||
Long-term available-for-sale securities: | ||||
Corporate bonds | 5 | |||
U.S. agency bonds | 2 | |||
Total long-term available-for-sale securities | 7 | |||
Total available-for-sale securities | $ | 100 | ||
LongTerm_Obligations_and_Other1
Long-Term Obligations and Other Short-Term Borrowings (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Debt | ' | |||||||
The following table summarizes long-term obligations and other short-term borrowings at June 30: | ||||||||
(in millions) | 2014 | 2013 | ||||||
1.7% Notes due 2018 | $ | 401 | $ | 399 | ||||
1.9% Notes due 2017 | 251 | 250 | ||||||
3.2% Notes due 2022 | 248 | 247 | ||||||
3.2% Notes due 2023 | 549 | 549 | ||||||
4.0% Notes due 2015 | 513 | 524 | ||||||
4.6% Notes due 2043 | 349 | 349 | ||||||
4.625% Notes due 2020 | 525 | 527 | ||||||
5.8% Notes due 2016 | 301 | 301 | ||||||
5.85% Notes due 2017 | 158 | 157 | ||||||
6.0% Notes due 2017 | 197 | 200 | ||||||
7.0% Debentures due 2026 | 124 | 124 | ||||||
7.8% Debentures due 2016 | 37 | 37 | ||||||
Other obligations | 319 | 190 | ||||||
Total | $ | 3,972 | $ | 3,854 | ||||
Less: current portion of long-term obligations and other short-term borrowings | 801 | 168 | ||||||
Long-term obligations, less current portion | $ | 3,171 | $ | 3,686 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | |||||||||||
Earnings before income taxes and discontinued operations are: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
U.S. Operations | $ | 1,665 | $ | 651 | $ | 1,514 | ||||||
Non-U.S. Operations | 133 | 237 | 184 | |||||||||
Earnings before income taxes and discontinued operations | $ | 1,798 | $ | 888 | $ | 1,698 | ||||||
Schedule of Components of Income Tax Expense (Benefit), Current and Deferred | ' | |||||||||||
The provision for income taxes from continuing operations consists of the following: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 521 | $ | 451 | $ | 430 | ||||||
State and local | 51 | 62 | 27 | |||||||||
Non-U.S. | 37 | 19 | 13 | |||||||||
Total current | $ | 609 | $ | 532 | $ | 470 | ||||||
Deferred: | ||||||||||||
Federal | $ | 24 | $ | 28 | $ | 124 | ||||||
State and local | 3 | (5 | ) | 28 | ||||||||
Non-U.S. | (1 | ) | (2 | ) | 6 | |||||||
Total deferred | 26 | 21 | 158 | |||||||||
Provision for income taxes | $ | 635 | $ | 553 | $ | 628 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate from continuing operations: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State and local income taxes, net of federal benefit | 2.2 | 2.5 | 2.3 | |||||||||
Foreign tax rate differential | (1.2 | ) | (4.0 | ) | (2.2 | ) | ||||||
Nondeductible/nontaxable items | (0.2 | ) | (0.5 | ) | — | |||||||
Nondeductible goodwill impairment | — | 33.2 | — | |||||||||
Change in measurement of an uncertain tax position and impact of IRS settlements | (0.4 | ) | (5.7 | ) | 0.9 | |||||||
Other | (0.1 | ) | 1.8 | 1 | ||||||||
Effective income tax rate | 35.3 | % | 62.3 | % | 37 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The following table presents the components of the deferred income tax assets and liabilities at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Deferred income tax assets: | ||||||||||||
Receivable basis difference | $ | 59 | $ | 50 | ||||||||
Accrued liabilities | 111 | 115 | ||||||||||
Share-based compensation | 51 | 66 | ||||||||||
Loss and tax credit carryforwards | 191 | 158 | ||||||||||
Deferred tax assets related to uncertain tax positions | 84 | 127 | ||||||||||
Other | 42 | 82 | ||||||||||
Total deferred income tax assets | 538 | 598 | ||||||||||
Valuation allowance for deferred income tax assets | (94 | ) | (88 | ) | ||||||||
Net deferred income tax assets | $ | 444 | $ | 510 | ||||||||
Deferred income tax liabilities: | ||||||||||||
Inventory basis differences | $ | (1,164 | ) | $ | (1,160 | ) | ||||||
Property-related | (142 | ) | (173 | ) | ||||||||
Goodwill and other intangibles | (340 | ) | (299 | ) | ||||||||
Other | (7 | ) | (6 | ) | ||||||||
Total deferred income tax liabilities | (1,653 | ) | (1,638 | ) | ||||||||
Net deferred income tax liability | $ | (1,209 | ) | $ | (1,128 | ) | ||||||
Schedule of deferred tax assets and liabilities after netting by tax jurisdiction | ' | |||||||||||
Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction, are in the following captions in the consolidated balance sheets at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | ||||||||||
Current deferred income tax asset (1) | $ | 18 | $ | 15 | ||||||||
Noncurrent deferred income tax asset (2) | 15 | 17 | ||||||||||
Current deferred income tax liability (3) | (918 | ) | (908 | ) | ||||||||
Noncurrent deferred income tax liability (4) | (324 | ) | (252 | ) | ||||||||
Net deferred income tax liability | $ | (1,209 | ) | $ | (1,128 | ) | ||||||
-1 | Included in prepaid expenses and other in the consolidated balance sheets. | |||||||||||
-2 | Included in other assets in the consolidated balance sheets. | |||||||||||
-3 | Included in other accrued liabilities in the consolidated balance sheets. | |||||||||||
-4 | Included in deferred income taxes and other liabilities in the consolidated balance sheets. | |||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||||
The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Balance at beginning of fiscal year | $ | 650 | $ | 654 | $ | 747 | ||||||
Additions for tax positions of the current year | 16 | 22 | 16 | |||||||||
Additions for tax positions of prior years | 94 | 97 | 68 | |||||||||
Reductions for tax positions of prior years | (40 | ) | (30 | ) | (3 | ) | ||||||
Settlements with tax authorities | (210 | ) | (93 | ) | (172 | ) | ||||||
Expiration of the statute of limitations | — | — | (2 | ) | ||||||||
Balance at end of fiscal year | $ | 510 | $ | 650 | $ | 654 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 740 | $ | — | $ | — | $ | 740 | ||||||||
Forward contracts (2) | — | 10 | — | 10 | ||||||||||||
Available-for-sale securities (3) | — | 100 | — | 100 | ||||||||||||
Other investments (4) | 106 | — | — | 106 | ||||||||||||
Total | $ | 846 | $ | 110 | $ | — | $ | 956 | ||||||||
2013 | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash equivalents (1) | $ | 348 | $ | — | $ | — | $ | 348 | ||||||||
Forward contracts (2) | — | 12 | — | 12 | ||||||||||||
Other investments (4) | 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 consolidated balance sheets. | |||||||||||||||
-3 | During fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Observable level 2 inputs such as quoted prices for similar securities, interest rate spreads, yield curves and credit risk are used to determine the fair value. See Note 6 for additional information regarding available-for-sale securities. | |||||||||||||||
-4 | 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. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Derivative [Line Items] | ' | |||||||||||||||
Schedule of the fair value of assets and liabilities related to derivatives designated as hedging instruments | ' | |||||||||||||||
The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Assets: | ||||||||||||||||
Foreign currency contracts (1) | $ | 1 | $ | 4 | ||||||||||||
Forward interest rate swaps (1) | 10 | — | ||||||||||||||
Forward interest rate swaps (2) | — | 20 | ||||||||||||||
Pay-floating interest rate swaps (2) | 5 | — | ||||||||||||||
Commodity contracts (2) | 1 | — | ||||||||||||||
Total assets | $ | 17 | $ | 24 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency contracts (3) | $ | 1 | $ | 1 | ||||||||||||
Forward interest rate swaps (4) | 1 | — | ||||||||||||||
Pay-floating interest rate swaps (4) | 5 | 11 | ||||||||||||||
Total liabilities | $ | 7 | $ | 12 | ||||||||||||
-1 | Included in prepaid expenses and other in the consolidated balance sheets. | |||||||||||||||
-2 | Included in other assets in the consolidated balance sheets. | |||||||||||||||
-3 | Included in other accrued liabilities in the consolidated balance sheets. | |||||||||||||||
-4 | Included in deferred income taxes and other liabilities in the consolidated balance sheets. | |||||||||||||||
Schedule of gain/(loss) recognized in earnings for interest rate contracts designated as fair value hedges | ' | |||||||||||||||
The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Pay-floating interest rate swaps (1) | $ | 23 | $ | 28 | $ | 38 | ||||||||||
Fixed-rate debt (1) | (23 | ) | (28 | ) | (38 | ) | ||||||||||
-1 | Included in interest expense, net in the consolidated statements of earnings. | |||||||||||||||
Schedule of gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges | ' | |||||||||||||||
The following table summarizes the gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges at June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Forward interest rate swaps | $ | 9 | $ | 20 | ||||||||||||
Commodity contracts | 1 | — | ||||||||||||||
Foreign currency contracts | (1 | ) | 3 | |||||||||||||
Schedule of gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges | ' | |||||||||||||||
The following table summarizes the gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency contracts (1) | $ | — | $ | 1 | $ | 1 | ||||||||||
Foreign currency contracts (2) | 2 | 1 | (1 | ) | ||||||||||||
Foreign currency contracts (3) | 1 | 1 | (1 | ) | ||||||||||||
Commodity contracts (3) | — | 1 | 2 | |||||||||||||
Forward interest rate swaps (4) | — | 1 | — | |||||||||||||
-1 | Included in revenue in the consolidated statements of earnings. | |||||||||||||||
-2 | Included in cost of products sold in the consolidated statements of earnings. | |||||||||||||||
-3 | Included in SG&A expenses in the consolidated statements of earnings. | |||||||||||||||
-4 | Included in interest expense, net in the consolidated statements of earnings. | |||||||||||||||
Schedule of gain/(loss) recognized in earnings for economic (non-designated) derivative instruments | ' | |||||||||||||||
The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments: | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||
Foreign currency contracts (1) | $ | 12 | $ | 6 | $ | (39 | ) | |||||||||
Commodity contracts (1) | — | — | (1 | ) | ||||||||||||
-1 | Included in other income, net in the consolidated statements of earnings. | |||||||||||||||
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 June 30: | ||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||
Estimated fair value | $ | 4,115 | $ | 3,899 | ||||||||||||
Carrying amount | 3,972 | 3,854 | ||||||||||||||
Schedule of Fair Value Gain Loss Derivative Instrument | ' | |||||||||||||||
The following table is a summary of the fair value gain/(loss) of our derivative instruments, based upon the estimated amount that we would receive (or pay) to terminate the contracts at June 30: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in millions) | Notional | Fair Value | Notional | Fair Value | ||||||||||||
Amount | Gain/(Loss) | Amount | Gain/(Loss) | |||||||||||||
Pay-floating interest rate swaps | $ | 1,438 | $ | — | $ | 1,138 | $ | (11 | ) | |||||||
Foreign currency contracts | 643 | — | 643 | 3 | ||||||||||||
Forward interest rate swaps | 300 | 9 | 250 | 20 | ||||||||||||
Commodity contracts | 24 | 1 | 24 | — | ||||||||||||
Fair Value Hedging | ' | |||||||||||||||
Derivative [Line Items] | ' | |||||||||||||||
Schedule of outstanding instruments | ' | |||||||||||||||
The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Pay-floating interest rate swaps | $ | 1,438 | Jun-15 | - | Jun-22 | |||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Pay-floating interest rate swaps | $ | 1,138 | Jun-15 | - | Jun-22 | |||||||||||
Cash Flow Hedging | ' | |||||||||||||||
Derivative [Line Items] | ' | |||||||||||||||
Schedule of outstanding instruments | ' | |||||||||||||||
The following tables summarize the outstanding cash flow hedges at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Forward interest rate swaps | $ | 300 | Jun-25 | - | Oct-26 | |||||||||||
Foreign currency contracts | 182 | Jul-14 | - | Jun-15 | ||||||||||||
Commodity contracts | 24 | Jul-14 | - | Mar-17 | ||||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Forward interest rate swaps | $ | 250 | Jun-25 | |||||||||||||
Foreign currency contracts | 164 | Jul-13 | - | Jun-14 | ||||||||||||
Commodity contracts | 24 | Jul-13 | - | Mar-16 | ||||||||||||
Not Designated as Hedging Instrument | ' | |||||||||||||||
Derivative [Line Items] | ' | |||||||||||||||
Schedule of outstanding instruments | ' | |||||||||||||||
The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: | ||||||||||||||||
2014 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Foreign currency contracts | $ | 461 | Jul-14 | - | Sep-14 | |||||||||||
2013 | ||||||||||||||||
(in millions) | Notional Amount | Maturity Date | ||||||||||||||
Foreign currency contracts | $ | 479 | Jul-13 | - | Sep-13 | |||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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, 2012 | $ | 36 | $ | 1 | $ | 37 | ||||||
Other comprehensive income/(loss), net of tax before reclassifications | 18 | 8 | 26 | |||||||||
Amounts reclassified to earnings | — | 5 | 5 | |||||||||
Total other comprehensive income, net of tax of $9 million | 18 | 13 | 31 | |||||||||
Balance at June 30, 2013 | $ | 54 | $ | 14 | $ | 68 | ||||||
Other comprehensive income/(loss), net of tax before reclassifications | 9 | (10 | ) | (1 | ) | |||||||
Amounts reclassified to earnings | — | 3 | 3 | |||||||||
Total other comprehensive income/(loss), net of tax of $5 million | 9 | (7 | ) | 2 | ||||||||
Balance at June 30, 2014 | $ | 63 | $ | 7 | $ | 70 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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: | |||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||
Weighted-average common shares–basic | 341 | 341 | 345 | ||||||
Effect of dilutive securities: | |||||||||
Employee stock options, restricted shares, restricted share units and performance share units | 4 | 3 | 4 | ||||||
Weighted-average common shares–diluted | 345 | 344 | 349 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenue by Reportable Segment | ' | |||||||||||
The following table presents revenue for each reportable segment and Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical (1) | $ | 80,110 | $ | 91,097 | $ | 97,925 | ||||||
Medical | 10,962 | 10,060 | 9,642 | |||||||||
Total segment revenue | 91,072 | 101,157 | 107,567 | |||||||||
Corporate (2) | 12 | (64 | ) | (15 | ) | |||||||
Total revenue | $ | 91,084 | $ | 101,093 | $ | 107,552 | ||||||
-1 | Our pharmaceutical distribution contract with Walgreens expired on August 31, 2013. Our pharmaceutical distribution contract with Express Scripts, Inc. expired on September 30, 2012. | |||||||||||
-2 | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. | |||||||||||
Segment Profit by Reportable Segment | ' | |||||||||||
The following table presents segment profit by reportable segment and Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 1,745 | $ | 1,734 | $ | 1,558 | ||||||
Medical | 444 | 372 | 332 | |||||||||
Total segment profit | 2,189 | 2,106 | 1,890 | |||||||||
Corporate | (304 | ) | (1,110 | ) | (98 | ) | ||||||
Total operating earnings | $ | 1,885 | $ | 996 | $ | 1,792 | ||||||
Assets by Reportable Segments | ' | |||||||||||
The following table presents total assets for each reportable segment and Corporate at June 30: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 15,361 | $ | 16,258 | $ | 16,642 | ||||||
Medical | 6,768 | 6,521 | 4,399 | |||||||||
Corporate | 3,904 | 3,040 | 3,219 | |||||||||
Total assets | $ | 26,033 | $ | 25,819 | $ | 24,260 | ||||||
Schedule of Revenue and Property and Equipment, net by Geographical Areas | ' | |||||||||||
The following tables present revenue and property and equipment, net by geographic area: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 87,449 | $ | 97,994 | $ | 105,205 | ||||||
International | 3,635 | 3,099 | 2,347 | |||||||||
Total revenue | $ | 91,084 | $ | 101,093 | $ | 107,552 | ||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
United States | $ | 1,301 | $ | 1,355 | $ | 1,425 | ||||||
International | 158 | 134 | 126 | |||||||||
Property and equipment, net | $ | 1,459 | $ | 1,489 | $ | 1,551 | ||||||
Depreciation and Amortization by Segment | ' | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | |||||||||||
Schedule of Other Significant Items by Segments | ' | |||||||||||
The following tables present depreciation and amortization and additions to property and equipment by reportable segment and at Corporate: | ||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 128 | $ | 125 | $ | 114 | ||||||
Medical | 130 | 137 | 119 | |||||||||
Corporate | 201 | 135 | 92 | |||||||||
Total depreciation and amortization | $ | 459 | $ | 397 | $ | 325 | ||||||
Additions to Property and Equipment by Segment | ' | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | |||||||||||
Schedule of Other Significant Items by Segments | ' | |||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||
Pharmaceutical | $ | 72 | $ | 46 | $ | 44 | ||||||
Medical | 72 | 48 | 100 | |||||||||
Corporate | 105 | 101 | 116 | |||||||||
Total additions to property and equipment | $ | 249 | $ | 195 | $ | 260 | ||||||
ShareBased_Compensation_and_Sa1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
The following is selected quarterly financial data for fiscal 2014 and 2013. The sum of the quarters may not equal year-to-date due to rounding. | ||||||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | |||||||||||||
Fiscal 2014 | ||||||||||||||||
Revenue | $ | 24,523 | $ | 22,240 | $ | 21,427 | $ | 22,894 | ||||||||
Gross margin | 1,264 | 1,345 | 1,297 | 1,256 | ||||||||||||
Distribution, selling, general and administrative expenses | 732 | 766 | 736 | 795 | ||||||||||||
Earnings from continuing operations | 340 | 275 | 315 | 234 | ||||||||||||
Earnings/(loss) from discontinued operations | (1 | ) | 3 | — | — | |||||||||||
Net earnings | 339 | 278 | 315 | 234 | ||||||||||||
Earnings from continuing operations per common share: | ||||||||||||||||
Basic | $ | 1 | $ | 0.8 | $ | 0.92 | $ | 0.69 | ||||||||
Diluted | 0.99 | 0.79 | 0.91 | 0.68 | ||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (2) | |||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 25,889 | $ | 25,232 | $ | 24,552 | $ | 25,420 | ||||||||
Gross margin | 1,159 | 1,224 | 1,291 | 1,247 | ||||||||||||
Distribution, selling, general and administrative expenses | 690 | 699 | 712 | 775 | ||||||||||||
Earnings/(loss) from continuing operations | 272 | 303 | 346 | (586 | ) | |||||||||||
Loss from discontinued operations, net of tax | (1 | ) | — | (1 | ) | — | ||||||||||
Net earnings/(loss) | 271 | 303 | 345 | (586 | ) | |||||||||||
Earnings/(loss) from continuing operations per common share: | ||||||||||||||||
Basic | $ | 0.8 | $ | 0.89 | $ | 1.01 | $ | (1.72 | ) | |||||||
Diluted (3) | 0.79 | 0.88 | 1 | (1.72 | ) | |||||||||||
-1 | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-2 | During the fourth quarter of fiscal 2013, we recorded an out-of-period increase in income tax expense of $14 million related to uncertain tax benefits, of which generally less than $1 million pertained to the each of the first three quarters of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-3 | Due to the loss from continuing operations incurred during the fourth quarter of fiscal 2013, potential dilutive common shares have not been included in the denominator of the diluted per share computation for this period due to their antidilutive effect. |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
The following is selected quarterly financial data for fiscal 2014 and 2013. The sum of the quarters may not equal year-to-date due to rounding. | ||||||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (1) | |||||||||||||
Fiscal 2014 | ||||||||||||||||
Revenue | $ | 24,523 | $ | 22,240 | $ | 21,427 | $ | 22,894 | ||||||||
Gross margin | 1,264 | 1,345 | 1,297 | 1,256 | ||||||||||||
Distribution, selling, general and administrative expenses | 732 | 766 | 736 | 795 | ||||||||||||
Earnings from continuing operations | 340 | 275 | 315 | 234 | ||||||||||||
Earnings/(loss) from discontinued operations | (1 | ) | 3 | — | — | |||||||||||
Net earnings | 339 | 278 | 315 | 234 | ||||||||||||
Earnings from continuing operations per common share: | ||||||||||||||||
Basic | $ | 1 | $ | 0.8 | $ | 0.92 | $ | 0.69 | ||||||||
Diluted | 0.99 | 0.79 | 0.91 | 0.68 | ||||||||||||
(in millions, except per common share amounts) | First | Second | Third | Fourth | ||||||||||||
Quarter | Quarter | Quarter | Quarter (2) | |||||||||||||
Fiscal 2013 | ||||||||||||||||
Revenue | $ | 25,889 | $ | 25,232 | $ | 24,552 | $ | 25,420 | ||||||||
Gross margin | 1,159 | 1,224 | 1,291 | 1,247 | ||||||||||||
Distribution, selling, general and administrative expenses | 690 | 699 | 712 | 775 | ||||||||||||
Earnings/(loss) from continuing operations | 272 | 303 | 346 | (586 | ) | |||||||||||
Loss from discontinued operations, net of tax | (1 | ) | — | (1 | ) | — | ||||||||||
Net earnings/(loss) | 271 | 303 | 345 | (586 | ) | |||||||||||
Earnings/(loss) from continuing operations per common share: | ||||||||||||||||
Basic | $ | 0.8 | $ | 0.89 | $ | 1.01 | $ | (1.72 | ) | |||||||
Diluted (3) | 0.79 | 0.88 | 1 | (1.72 | ) | |||||||||||
-1 | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-2 | During the fourth quarter of fiscal 2013, we recorded an out-of-period increase in income tax expense of $14 million related to uncertain tax benefits, of which generally less than $1 million pertained to the each of the first three quarters of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | |||||||||||||||
-3 | Due to the loss from continuing operations incurred during the fourth quarter of fiscal 2013, potential dilutive common shares have not been included in the denominator of the diluted per share computation for this period due to their antidilutive effect. |
Basis_of_Presentation_Summary_3
Basis of Presentation, Summary of Significant Accounting Policies and Other (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Oct. 31, 2014 | Jul. 31, 2014 | |||||||||||||||
Segments | Segments | Pharmaceutical | Nuclear Pharmacy Services division | Minimum | Maximum | Building and Building Improvements | Building and Building Improvements | Machinery and Equipment | Machinery and Equipment | Furniture and Fixtures | Furniture and Fixtures | Allowance for Accounts Receivable | Allowance for Accounts Receivable | Allowance for Accounts Receivable | Allowance for Accounts Receivable | Allowance for Finance Notes Receivable | Allowance for Finance Notes Receivable | Allowance for Finance Notes Receivable | Allowance for Finance Notes Receivable | Allowance Sales Returns and Allowances | Allowance Sales Returns and Allowances | Allowance Sales Returns and Allowances | CVS Caremark Corporation | CVS Caremark Corporation | CVS Caremark Corporation | Walgreens Co | Walgreens Co | Walgreens Co | Group Purchasing Organizations | Group Purchasing Organizations | Group Purchasing Organizations | Scenario, Forecast | Scenario, Forecast | ||||||||||||||||||
Reportable_Segments | Reportable_Segments | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Pharmaceutical | Pharmaceutical | Pharmaceutical | Pharmaceutical | Pharmaceutical | Pharmaceutical | CVS Caremark Corporation | CVS Caremark Corporation | ||||||||||||||||||||||||||||||||||||
Red Oak Sourcing Establishment Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'July 2014 | |||||||||||||||
Red Oak Sourcing Initial term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | |||||||||||||||
Number of Quarterly Payments to CVS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39 | ' | |||||||||||||||
Quarterly Payment to CVS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25.60 | ' | |||||||||||||||
Quarterly Payment to CVS Commencement Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'October 2014 | ' | |||||||||||||||
Receivable Financing Agreement Term | ' | ' | ' | ' | ' | ' | '270 days | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Finance notes and related accrued interest, net, Total | 158 | 161 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Finance notes and related accrued interest, net, Current | 51 | 29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Valuation Allowances and Reserves, Balance | 429 | [1] | 443 | [1] | 143 | [1] | 150 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 137 | [1] | 134 | [1] | 126 | [1] | 134 | [1] | 18 | [1] | 17 | [1] | 16 | [1] | 15 | [1] | 273 | [1] | 291 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-13 | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Revenue, Major Customer, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.00% | 23.00% | 22.00% | 4.00% | 20.00% | 21.00% | 17.00% | 13.00% | 13.00% | ' | ' | |||||||||||||||
Portion of inventories held at LIFO, Percentage | 61.00% | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Inventories valued at LIFO amount higher than average cost value | 98 | 97 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Reserves for excess and obsolete inventory | 44 | 40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '39 years | '3 years | '20 years | '3 years | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Depreciation | 265 | 269 | 243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Interest rate on long-term projects (approximates weighted-average on long-term obligations) | 3.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Number of Operating Segments | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Number of Reportable Segments | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | ' | 10.00% | 9.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Goodwill, Impairment Loss | ' | -829 | ' | ' | -829 | 829 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Goodwill, Impairment Loss, Net of Tax | ' | ' | ' | ' | ' | 799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Proceeds from sale of investments | 47 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Gain on sale of investments | 32 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Gain on Sale of Investment, net of tax | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Held-to-maturity Securities, Current | ' | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Vendor Reserves | 82 | 66 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Probability Of Realizing Tax Benefit | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $1.21 | $1.02 | $0.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Sales Returns and Allowances | 1,700 | 2,300 | 1,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Shipping and Handling Costs | 430 | 419 | 389 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Change in fair value of contingent consideration obligation | 0 | 0 | 71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Payment Of Contingent Consideration | $0 | $4 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
[1] | Amounts included herein pertain to the continuing operations of the Company. |
Basis_of_Presentation_Summary_4
Basis of Presentation, Summary of Significant Accounting Policies and Other (Revenue and Gross Trade Receivables Percentage by Major Customers) (Details) (Pharmaceutical) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
CVS Caremark Corporation | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenue, Major Customer, Percentage | 28.00% | 23.00% | 22.00% |
Gross Trade Receivables, Major Customer, Percentage | 22.00% | 19.00% | ' |
Walgreens Co | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' |
Revenue, Major Customer, Percentage | 4.00% | 20.00% | 21.00% |
Gross Trade Receivables, Major Customer, Percentage | 0.00% | 24.00% | ' |
Basis_of_Presentation_Summary_5
Basis of Presentation, Summary of Significant Accounting Policies and Other (Components of Property and Equipment) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $3,870 | $3,669 | ' |
Accumulated depreciation and amortization | -2,411 | -2,180 | ' |
Property and equipment, net | 1,459 | 1,489 | 1,551 |
Land, Buildings and Improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 1,419 | 1,398 | ' |
Machinery and Equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 2,326 | 2,149 | ' |
Furniture and Fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $125 | $122 | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Feb. 22, 2013 | 9-May-14 | Jun. 30, 2013 | Mar. 18, 2013 | Jun. 30, 2013 |
AccessClosure | AccessClosure | AssuraMed | AssuraMed | |||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Effective Date of Acquisition | ' | ' | ' | ' | 9-May-14 | ' | 18-Mar-13 | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $519 | $2,239 | $174 | ' | $320 | ' | $2,070 | ' |
Debt Instrument, Face Amount | ' | ' | ' | 1,300 | ' | ' | ' | ' |
Business Combination, Acquisition Related Costs | ' | ' | ' | ' | ' | ' | ' | 20 |
Goodwill | 4,878 | 4,601 | 3,978 | ' | ' | 159 | ' | 1,404 |
Total identifiable intangible assets | ' | ' | ' | ' | ' | $133 | ' | $627 |
Weighted-average useful life | ' | ' | ' | ' | ' | '9 years | ' | '9 years |
Fair Value Inputs, Discount Rate | ' | ' | ' | ' | 10.00% | ' | 9.50% | ' |
Acquisitions_Schedule_of_Estim
Acquisitions (Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
In Millions, unless otherwise specified | AssuraMed | Customer relationships | Trade names | Other | |||
AssuraMed | AssuraMed | AssuraMed | |||||
Identifiable intangible assets: | ' | ' | ' | ' | ' | ' | ' |
Identifiable intangible asset | ' | ' | ' | $627 | $460 | $160 | $7 |
Weighted-average useful life | ' | ' | ' | '9 years | '9 years | '11 years | '3 years |
Cash and equivalents | ' | ' | ' | 25 | ' | ' | ' |
Trade receivables | ' | ' | ' | 103 | ' | ' | ' |
Inventories | ' | ' | ' | 69 | ' | ' | ' |
Prepaid expenses and other | ' | ' | ' | 102 | ' | ' | ' |
Property and equipment | ' | ' | ' | 40 | ' | ' | ' |
Accounts payable | ' | ' | ' | -71 | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -24 | ' | ' | ' |
Deferred income taxes and other liabilities | ' | ' | ' | -180 | ' | ' | ' |
Total identifiable net assets acquired | ' | ' | ' | 691 | ' | ' | ' |
Goodwill | 4,878 | 4,601 | 3,978 | 1,404 | ' | ' | ' |
Total net assets acquired | ' | ' | ' | $2,095 | ' | ' | ' |
Restructuring_and_Employee_Sev2
Restructuring and Employee Severance (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 |
Fiscal 2013 Medical Restructuring | Fiscal 2013 Medical Restructuring | Employee-Related Costs | Scenario, Forecast | |
Nuclear Pharmacy Services division | Fiscal 2013 Medical Restructuring | |||
Restructuring Cost and Reserve | ' | ' | ' | ' |
Restructuring and Related Activities, Initiation Date | 30-Jan-13 | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | $74 | ' | ' |
Restructuring and Related Cost, Cost Incurred to Date | 51 | 18 | 11 | ' |
Restructuring and Related Cost, Expected Cost Remaining | ' | ' | ' | $5 |
Restructuring_and_Employee_Sev3
Restructuring and Employee Severance (Activity Related to Restructuring and Employee Severance Costs) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Restructuring Cost and Reserve | ' | ' | ' | |||
Employee-related costs | $13 | [1],[2] | $59 | [1],[3] | $20 | [1] |
Facility exit and other costs | 18 | [2],[4] | 12 | [3],[4] | 1 | [4] |
Total restructuring and employee severance | 31 | [2] | 71 | [3] | 21 | |
Fiscal 2013 Medical Restructuring | ' | ' | ' | |||
Restructuring Cost and Reserve | ' | ' | ' | |||
Employee-related costs | ' | 30 | ' | |||
Facility exit and other costs | $10 | $10 | ' | |||
[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 $10 million of primarily facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||
[3] | Includes $30 million of employee-related costs and $10 million of facility exit and other costs related to the restructuring within our Medical segment described further below. | |||||
[4] | 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 $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Employee-Related Costs | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Beginning Balance | $55 | $16 | $6 |
Additions to Restructuring Reserve | 23 | 63 | 22 |
Restructuring Reserve, Period Increase (Decrease) | -54 | -24 | -12 |
Ending Balance | 24 | 55 | 16 |
Facility Exit and Other Costs | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Beginning Balance | 2 | 2 | 4 |
Additions to Restructuring Reserve | 1 | 2 | 1 |
Restructuring Reserve, Period Increase (Decrease) | -3 | -2 | -3 |
Ending Balance | 0 | 2 | 2 |
Total | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Beginning Balance | 57 | 18 | 10 |
Additions to Restructuring Reserve | 24 | 65 | 23 |
Restructuring Reserve, Period Increase (Decrease) | -57 | -26 | -15 |
Ending Balance | $24 | $57 | $18 |
Impairments_and_Loss_on_Dispos1
Impairments and Loss on Disposal of Assets (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
Medical | Medical | Medical | Medical | Pharmaceutical | Nuclear Pharmacy Services division | Software Development Costs - Pharmaceutical | Trade Names - Pharmaceutical | ||
Waukegan, Illinois Property | Waukegan, Illinois Property | Gamma Sterilization | |||||||
Fair Value, Inputs, Level 2 | |||||||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Long-Lived Assets to be Disposed of | ' | ' | $8 | ' | $11 | ' | ' | ' | ' |
Assets Held-for-sale, Long Lived | ' | ' | ' | 24 | ' | ' | ' | ' | ' |
Goodwill, Impairment Loss | -829 | 0 | ' | ' | ' | -829 | 829 | ' | ' |
Goodwill, Impairment Loss, Net of Tax | ' | ' | ' | ' | ' | ' | 799 | ' | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | ' | ' | ' | ' | ' | ' | ' | $8 | $16 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Goodwill and Intangible Assets | ' | ' | ' |
Goodwill, Impairment Loss | ' | ($829) | ' |
Amortization of Intangible Assets | 188 | 121 | 79 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 177 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 165 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 153 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 116 | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 65 | ' | ' |
Minimum | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' |
Fair Value Inputs, Discount Rate | 9.00% | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '1 year | ' | ' |
Maximum | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' |
Fair Value Inputs, Discount Rate | 12.00% | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' | ' |
Pharmaceutical | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' |
Goodwill, Impairment Loss | ' | -829 | ' |
Nuclear Pharmacy Services division | ' | ' | ' |
Goodwill and Intangible Assets | ' | ' | ' |
Goodwill, Impairment Loss | ' | 829 | ' |
Goodwill, Impairment Loss, Net of Tax | ' | $799 | ' |
Fair Value Inputs, Discount Rate | ' | 10.00% | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Reportable Segment) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Goodwill [Roll Forward] | ' | ' | ||
Beginning Balance | $4,601 | $3,978 | ||
Goodwill acquired, net of purchase price adjustments | 284 | 1,449 | ||
Foreign currency translation adjustments and other | -7 | 3 | ||
Impairment | ' | -829 | ||
Ending Balance | 4,878 | 4,601 | ||
Pharmaceutical | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ||
Beginning Balance | 2,094 | [1] | 2,876 | |
Goodwill acquired, net of purchase price adjustments | 68 | 40 | ||
Foreign currency translation adjustments and other | -4 | 7 | ||
Impairment | ' | -829 | ||
Ending Balance | 2,158 | [1] | 2,094 | [1] |
Goodwill, Impaired, Accumulated Impairment Loss | 829 | 829 | ||
Medical | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ||
Beginning Balance | 2,507 | 1,102 | ||
Goodwill acquired, net of purchase price adjustments | 216 | 1,409 | ||
Foreign currency translation adjustments and other | -3 | -4 | ||
Impairment | ' | 0 | ||
Ending Balance | $2,720 | $2,507 | ||
[1] | At JuneB 30, 2014 and 2013, the accumulated goodwill impairment loss was $829 million. |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Indefinite-life intangibles: | ' | ' |
Indefinite-Lived Intangible Assets, Gross | $14 | $11 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 14 | 11 |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,514 | 1,307 |
Finite-Lived Intangible Assets, Accumulated Amortization | 536 | 345 |
Finite-Lived Intangible Assets, Net | 978 | 962 |
Total Intangibles, Gross | 1,528 | 1,318 |
Total Intangibles, Accumulated Amortization | 536 | 345 |
Intangible Assets, Net (Excluding Goodwill) | 992 | 973 |
Trademarks and other | ' | ' |
Indefinite-life intangibles: | ' | ' |
Indefinite-Lived Intangible Assets, Gross | 14 | 11 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 14 | 11 |
Customer relationships | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,043 | 982 |
Finite-Lived Intangible Assets, Accumulated Amortization | 388 | 230 |
Finite-Lived Intangible Assets, Net | 655 | 752 |
Trademarks, trade names and patents | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 213 | 209 |
Finite-Lived Intangible Assets, Accumulated Amortization | 69 | 49 |
Finite-Lived Intangible Assets, Net | 144 | 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 |
Developed technology and other | ' | ' |
Definite-life intangibles: | ' | ' |
Finite-Lived Intangible Assets, Gross | 243 | 101 |
Finite-Lived Intangible Assets, Accumulated Amortization | 68 | 56 |
Finite-Lived Intangible Assets, Net | $175 | $45 |
AvailableforSale_Securities_Na
Available-for-Sale Securities (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $0 |
Short Term | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Weighted average effective maturity | '11 months |
Long Term | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Weighted average effective maturity | '21 months |
AvailableforSale_Securities_Sc
Available-for-Sale Securities (Schedule of Available-for-Sale Securities) (Details) (USD $) | Jun. 30, 2014 | |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities | $100 | [1] |
Available-for-sale Securities, Current | 93 | |
Available-for-sale Securities, Noncurrent | 7 | |
Commercial Paper | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, Current | 4 | |
Treasury bills | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, Current | 85 | |
International bonds | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, Current | 1 | |
Corporate bonds | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, Current | 3 | |
Available-for-sale Securities, Noncurrent | 5 | |
U.S. agency bonds | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, Noncurrent | $2 | |
[1] | During fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Observable level 2 inputs such as quoted prices for similar securities, interest rate spreads, yield curves and credit risk are used to determine the fair value. See Note 6 for additional information regarding available-for-sale securities. |
LongTerm_Obligations_and_Other2
Long-Term Obligations and Other Short-Term Borrowings (Narrative) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 22, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | 1.7% Notes due 2018 | 1.7% Notes due 2018 | 1.9% Notes due 2017 | 1.9% Notes due 2017 | 3.2% Notes due 2022 | 3.2% Notes due 2022 | 3.2% Notes due 2023 | 3.2% Notes due 2023 | 4.0% Notes due 2015 | 4.6% Notes due 2043 | 4.6% Notes due 2043 | 4.625% Notes due 2020 | 5.8% Notes due 2016 | 5.85% Notes due 2017 | 6.0% Notes due 2017 | 7.0% Debentures due 2026 | 7.8% Debentures due 2016 | 5.5% Notes due 2013 | Revolving Credit Facility | Revolving Credit Facility | Commercial Paper | Commercial Paper | Committed Receivables Sales Facility Program | Committed Receivables Sales Facility Program | Committed Receivables Sales Facility Program | Short Term Credit Facilities Member | Short Term Credit Facilities Member | Consolidated Interest Coverage Ratio | Consolidated Leverage Ratio | |||
Revolving Credit Facility and Committed Receivables Sales Facility Program | Revolving Credit Facility and Committed Receivables Sales Facility Program | |||||||||||||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $801 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 788 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 561 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 1,799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 1.70% | ' | 1.90% | ' | 3.20% | ' | 3.20% | ' | 4.00% | 4.60% | ' | 4.63% | 5.80% | 5.85% | 6.00% | 7.00% | 7.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 12,149 | 12,295 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Maturity Date | ' | ' | ' | ' | 15-Mar-18 | ' | 15-Jun-17 | ' | 15-Jun-22 | ' | 15-Mar-23 | 15-Jun-15 | ' | 15-Mar-43 | 15-Dec-20 | 15-Oct-16 | 15-Dec-17 | 15-Jun-17 | 15-Oct-26 | 15-Oct-16 | 15-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Offering Date | ' | ' | ' | ' | 19-Feb-13 | ' | 21-May-12 | ' | 21-May-12 | ' | 19-Feb-13 | ' | ' | 19-Feb-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | 1,300 | ' | 400 | ' | 250 | ' | 250 | ' | 550 | ' | ' | 350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Initiation Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Nov-12 | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | 1,500 | 1,500 | 1,500 | 700 | 950 | 950 | 369 | 304 | ' | ' |
Line of Credit Facility, Expiration Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Nov-14 | ' | ' | ' | ' | ' |
Offer As Percentage Of Principal Amount | ' | ' | ' | 101.00% | ' | 101.00% | ' | 101.00% | ' | 101.00% | ' | ' | 101.00% | ' | 101.00% | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Effective Date of Reduction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Oct-13 | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Stand by Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 43 | ' | ' | 41 | 0 | ' | ' | ' | ' | ' |
Debt Instrument, Covenant Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'at least 4-to-1 | 'no more than 3.25-to-1 |
Other obligations | $319 | $190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Obligations_and_Other3
Long-Term Obligations and Other Short-Term Borrowings (Summary of Long-Term Obligations and Other Short-Term Borrowings) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument | ' | ' |
Other obligations | $319 | $190 |
Total debt | 3,972 | 3,854 |
Current portion of long-term obligations and other short-term borrowings | 801 | 168 |
Long-term obligations, less current portion | 3,171 | 3,686 |
1.7% Notes due 2018 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 401 | 399 |
1.9% Notes due 2017 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 251 | 250 |
3.2% Notes due 2022 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 248 | 247 |
3.2% Notes due 2023 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 549 | 549 |
4.0% Notes due 2015 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 513 | 524 |
4.6% Notes due 2043 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 349 | 349 |
4.625% Notes due 2020 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 525 | 527 |
5.8% Notes due 2016 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 301 | 301 |
5.85% Notes due 2017 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 158 | 157 |
6.0% Notes due 2017 | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 197 | 200 |
7.0% Debentures due 2026 | ' | ' |
Debt Instrument | ' | ' |
Debentures | 124 | 124 |
7.8% Debentures due 2016 | ' | ' |
Debt Instrument | ' | ' |
Debentures | $37 | $37 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 30, 2013 |
Federal | Federal | Federal | State | Foreign | State and Foreign Jurisdiction | State and Foreign Jurisdiction | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Retained Earnings | |||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Unfavorable/(Favorable) Discrete Items, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($37) | ' |
Net Unfavorable/(Favorable) Discrete Items, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.10% | ' |
Unfavorable/(favorable) impact of settlements of federal and state tax controversies, settlements and unusual provisions, Amount | -80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(Favorable) Impact of Release of Valuation Allowance, Amount | -12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(Favorable) Impact of remeasurement of unrecognized tax benefits | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(favorable) nondeductible goodwill impairment, Percent | 0.00% | 33.20% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(favorable) nondeductible goodwill impairment, Value | 295 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(favorable) tax adjustments, settlements and unusual provisions, Value | -64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfavorable/(favorable) tax adjustments, settlements and unusual provisions, Percent | -7.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quantifying Misstatement in Current Year Financial Statements, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | ' | 15 |
Undistributed Earnings of Foreign Subsidiaries | 1,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Credit Carryforward, Amount | ' | ' | ' | ' | 210 | ' | ' | 1,300 | 85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards | 191 | 158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate amount of valuation allowance that applies to federal, state and international loss carryforwards that more likely than not will expire unutilized | 92 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 510 | 650 | 654 | 747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 322 | 371 | 337 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Increase/(Decrease) in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound | -25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Increase/(Decrease) in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 143 | 198 | 209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | -46 | 24 | -28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax years open for examination | ' | ' | ' | ' | ' | '2006 | '2014 | ' | ' | '2003 | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax years under examination | ' | ' | ' | ' | ' | '2006 | '2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax years closed that were under examination | ' | ' | ' | ' | ' | '2003 | '2005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount CareFusion is liable under tax matters agreement in the event amount must be paid to the taxing authority | $210 | $186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income before Income Tax, Domestic and Foreign) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. Operations | $1,665 | $651 | $1,514 |
Non-U.S. Operations | 133 | 237 | 184 |
Earnings before income taxes and discontinued operations | $1,798 | $888 | $1,698 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit), Current and Deferred) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Current: | ' | ' | ' |
Federal | $521 | $451 | $430 |
State and local | 51 | 62 | 27 |
Non-U.S. | 37 | 19 | 13 |
Total current | 609 | 532 | 470 |
Deferred: | ' | ' | ' |
Federal | 24 | 28 | 124 |
State and local | 3 | -5 | 28 |
Non-U.S. | -1 | -2 | 6 |
Total deferred | 26 | 21 | 158 |
Provision for income taxes | $635 | $553 | $628 |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Provision at Federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal benefit | 2.20% | 2.50% | 2.30% |
Foreign tax rate differential | -1.20% | 4.00% | 2.20% |
Nondeductible/nontaxable items | -0.20% | 0.50% | 0.00% |
Nondeductible goodwill impairment | 0.00% | 33.20% | 0.00% |
Change in measurement of an uncertain tax position and impact of IRS settlements | 0.40% | -5.70% | -0.90% |
Other | -0.10% | 1.80% | 1.00% |
Effective income tax rate | 35.30% | 62.30% | 37.00% |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Receivable basis difference | $59 | $50 |
Accrued liabilities | 111 | 115 |
Share-based compensation | 51 | 66 |
Loss and tax credit carryforwards | 191 | 158 |
Deferred tax assets related to uncertain tax positions | 84 | 127 |
Other | 42 | 82 |
Total deferred income tax assets | 538 | 598 |
Valuation allowance for deferred income tax assets | -94 | -88 |
Net deferred income tax assets | 444 | 510 |
Deferred income tax liabilities: | ' | ' |
Inventory basis differences | -1,164 | -1,160 |
Property-related | -142 | -173 |
Goodwill and other intangibles | -340 | -299 |
Other | -7 | -6 |
Total deferred income tax liabilities | -1,653 | -1,638 |
Net deferred income tax liability | ($1,209) | ($1,128) |
Recovered_Sheet1
Income Taxes (Schedule of deferred tax assets and liabilities after netting by tax jurisdiction) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Income Tax Disclosure [Abstract] | ' | ' | ||
Current deferred income tax asset | $18 | [1] | $15 | [1] |
Noncurrent deferred income tax asset | 15 | [2] | 17 | [2] |
Current deferred income tax liability | -918 | [3] | -908 | [3] |
Noncurrent deferred income tax liability | -324 | [4] | -252 | [4] |
Net deferred income tax liability | ($1,209) | ($1,128) | ||
[1] | Included in prepaid expenses and other in the consolidated balance sheets. | |||
[2] | Included in other assets in the consolidated balance sheets. | |||
[3] | Included in other accrued liabilities in the consolidated balance sheets. | |||
[4] | Included in deferred income taxes and other liabilities in the consolidated balance sheets. |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at beginning of fiscal year | $650 | $654 | $747 |
Additions for tax positions of the current year | 16 | 22 | 16 |
Additions for tax positions of prior years | 94 | 97 | 68 |
Reductions for tax positions of prior years | -40 | -30 | -3 |
Settlements with tax authorities | -210 | -93 | -172 |
Expiration of the statute of limitations | 0 | 0 | -2 |
Balance at end of fiscal year | $510 | $650 | $654 |
Commitments_Contingent_Liabili1
Commitments, Contingent Liabilities and Litigation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Commitments [Abstract] | ' | ' | ' |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $97 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 80 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 60 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 45 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 31 | ' | ' |
Operating Leases, Future Minimum Payments, Due Thereafter | 74 | ' | ' |
Operating Leases, Rent Expense | 107 | 92 | 86 |
Gain (Loss) Related to Litigation Settlement [Abstract] | ' | ' | ' |
Proceeds from Legal Settlements | $24 | $38 | ' |
State of West Virginia vs Cardinal Health, Inc | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Loss Contingency, Number of Defendants | 13 | ' | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | $740 | [1] | $348 | [1] |
Forward contracts | 10 | [2] | 12 | [2] |
Available-for-sale securities | 100 | [3] | ' | |
Other investments | 106 | [4] | 89 | [4] |
Total | 956 | 449 | ||
Fair Value, Inputs, Level 1 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | 740 | [1] | 348 | [1] |
Forward contracts | 0 | [2] | 0 | [2] |
Available-for-sale securities | 0 | [3] | ' | |
Other investments | 106 | [4] | 89 | [4] |
Total | 846 | 437 | ||
Fair Value, Inputs, Level 2 | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' | ||
Cash equivalents | 0 | [1] | 0 | [1] |
Forward contracts | 10 | [2] | 12 | [2] |
Available-for-sale securities | 100 | [3] | ' | |
Other investments | 0 | [4] | 0 | [4] |
Total | 110 | 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] |
Available-for-sale securities | 0 | [3] | ' | |
Other investments | 0 | [4] | 0 | [4] |
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 consolidated balance sheets. | |||
[3] | During fiscal 2014, we purchased marketable securities, which are classified as available-for-sale and are carried at fair value in the consolidated balance sheets. Observable level 2 inputs such as quoted prices for similar securities, interest rate spreads, yield curves and credit risk are used to determine the fair value. See Note 6 for additional information regarding available-for-sale securities. | |||
[4] | 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. |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details) (Interest Rate Swap, USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Sep. 05, 2012 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value Hedging | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | ' | $1,438 | $1,138 |
Cash Flow Hedging | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | ' | 300 | 250 |
Designated as Hedging Instrument | Fair Value Hedging | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | 350 | 300 | 775 |
Derivative, Cash Received on Hedge | 43 | ' | ' |
Designated as Hedging Instrument | Cash Flow Hedging | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Derivative, Notional Amount | ' | $50 | $250 |
Financial_Instruments_Schedule
Financial Instruments (Schedule of the fair value of assets and liabilities related to derivatives designated as hedging instruments) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | $17 | $24 | ||
Liabilities: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 7 | 12 | ||
Cash Flow Hedging | Prepaid Expenses And Other | Foreign Exchange Contract | Designated as Hedging Instrument | ' | ' | ||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 1 | [1] | 4 | [1] |
Cash Flow Hedging | Prepaid Expenses And Other | Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 10 | [1] | 0 | [1] |
Cash Flow Hedging | Other Assets | Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 0 | [2] | 20 | [2] |
Cash Flow Hedging | Other Assets | Commodity Contract | Designated as Hedging Instrument | ' | ' | ||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 1 | [2] | 0 | [2] |
Cash Flow Hedging | Other Accrued Liabilities | Foreign Exchange Contract | Designated as Hedging Instrument | ' | ' | ||
Liabilities: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 1 | [3] | 1 | [3] |
Cash Flow Hedging | Deferred Income Taxes And Other Liabilities | Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ||
Liabilities: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | 1 | [4] | 0 | [4] |
Fair Value Hedging | Other Assets | Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ||
Assets: | ' | ' | ||
Derivative Asset, Fair Value, Gross Asset | 5 | [2] | 0 | [2] |
Fair Value Hedging | Deferred Income Taxes And Other Liabilities | Interest Rate Swap | Designated as Hedging Instrument | ' | ' | ||
Liabilities: | ' | ' | ||
Derivative Liability, Fair Value, Gross Liability | $5 | [4] | $11 | [4] |
[1] | Included in prepaid expenses and other in the consolidated balance sheets. | |||
[2] | Included in other assets in the consolidated balance sheets. | |||
[3] | Included in other accrued liabilities in the consolidated balance sheets. | |||
[4] | Included in deferred income taxes and other liabilities in the consolidated balance sheets. |
Financial_Instruments_Schedule1
Financial Instruments (Schedule of outstanding instruments, Fair Value Hedges) (Details) (Interest Rate Swap, Fair Value Hedging, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 1,438 | 1,138 |
Minimum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 15-Jun-15 | 15-Jun-15 |
Maximum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 15-Jun-22 | 15-Jun-22 |
Financial_Instruments_Schedule2
Financial Instruments (Schedule of gain/(loss) recognized in earnings for interest rate contracts designated as fair value hedges) (Details) (Fair Value Hedging, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Interest Rate Swap | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instrument gain/(loss) recognized in income | $23 | [1] | $28 | [1] | $38 | [1] |
Fixed Rate Debt | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instrument gain/(loss) recognized in income | ($23) | [1] | ($28) | [1] | ($38) | [1] |
[1] | Included in interest expense, net in the consolidated statements of earnings. |
Financial_Instruments_Schedule3
Financial Instruments (Schedule of outstanding instruments, Cash Flow Hedges) (Details) (Cash Flow Hedging, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Rate Swap | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 300 | 250 |
Interest Rate Swap | Maximum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 17-Oct-26 | 15-Jun-25 |
Interest Rate Swap | Minimum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 15-Jun-25 | 15-Jun-25 |
Foreign Exchange Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 182 | 164 |
Foreign Exchange Contract | Maximum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 2-Jun-15 | 2-Jun-14 |
Foreign Exchange Contract | Minimum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 1-Jul-14 | 2-Jul-13 |
Commodity Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 24 | 24 |
Commodity Contract | Maximum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 31-Mar-17 | 31-Mar-16 |
Commodity Contract | Minimum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 31-Jul-14 | 31-Jul-13 |
Financial_Instruments_Schedule4
Financial Instruments (Schedule of gain/(loss) included in AOCI for derivative instruments designated as cash flow hedges) (Details) (Cash Flow Hedging, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Rate Swap | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative instruments gain/(loss) recognized in AOCI, net | $9 | $20 |
Commodity Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative instruments gain/(loss) recognized in AOCI, net | 1 | 0 |
Foreign Exchange Contract | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative instruments gain/(loss) recognized in AOCI, net | ($1) | $3 |
Financial_Instruments_Schedule5
Financial Instruments (Schedule of gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges) (Details) (Cash Flow Hedging, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Foreign Exchange Contract | Revenue | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instruments gain/(loss) reclassified from AOCI to earnings, net | $0 | [1] | $1 | [1] | $1 | [1] |
Foreign Exchange Contract | Cost of Products Sold | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instruments gain/(loss) reclassified from AOCI to earnings, net | 2 | [2] | 1 | [2] | -1 | [2] |
Foreign Exchange Contract | SG&A Expenses | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instruments gain/(loss) reclassified from AOCI to earnings, net | 1 | [3] | 1 | [3] | -1 | [3] |
Commodity Contract | SG&A Expenses | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instruments gain/(loss) reclassified from AOCI to earnings, net | 0 | [3] | 1 | [3] | 2 | [3] |
Interest Rate Swap | Interest Expense, net | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Derivative instruments gain/(loss) reclassified from AOCI to earnings, net | $0 | [4] | $1 | [4] | $0 | [4] |
[1] | Included in revenue in the consolidated statements of earnings. | |||||
[2] | Included in cost of products sold in the consolidated statements of earnings. | |||||
[3] | Included in SG&A expenses in the consolidated statements of earnings. | |||||
[4] | Included in interest expense, net in the consolidated statements of earnings. |
Financial_Instruments_Schedule6
Financial Instruments (Schedule of outstanding instruments, Economic Hedges) (Details) (Foreign Exchange Contract, Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 461 | 479 |
Minimum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 30-Jul-14 | 30-Jul-13 |
Maximum | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Maturity Date | 29-Sep-14 | 27-Sep-13 |
Financial_Instruments_Schedule7
Financial Instruments (Schedule of gain/(loss) reclassified from AOCI into earnings for derivative not designated as hedging instrument) (Details) (Other (Income)/Expense, Net, Not Designated as Hedging Instrument, USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Foreign Exchange Contract | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Gain/(loss) recognized in earnings for economic hedges | $12 | [1] | $6 | [1] | ($39) | [1] |
Commodity Contract | ' | ' | ' | |||
Derivative [Line Items] | ' | ' | ' | |||
Gain/(loss) recognized in earnings for economic hedges | $0 | [1] | $0 | [1] | ($1) | [1] |
[1] | Included in other income, net in the consolidated statements of earnings. |
Financial_Instruments_Summary_
Financial Instruments (Summary of Estimated Fair Value of Our Long-Term Obligations and Other Short-Term Borrowings) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Carrying amount | $3,972 | $3,854 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Estimated fair value | $4,115 | $3,899 |
Financial_Instruments_Schedule8
Financial Instruments (Schedule of Fair Value Gain Loss Derivative Instrument) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | ||
Interest Rate Swap | Fair Value Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | $1,438 | $1,138 |
Derivative, Fair Value, Net | 0 | -11 |
Interest Rate Swap | Cash Flow Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 300 | 250 |
Derivative, Fair Value, Net | 9 | 20 |
Foreign Exchange Contract | Cash Flow Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 643 | 643 |
Derivative, Fair Value, Net | 0 | 3 |
Commodity Contract | Cash Flow Hedging | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative, Notional Amount | 24 | 24 |
Derivative, Fair Value, Net | $1 | $0 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Common shares, Authorized | 755 | 755 | ' |
Preferred shares, Authorized | 0.5 | 0.5 | ' |
Treasury shares acquired (using Cost Method), Value | $673 | $450 | $450 |
Class A common shares | ' | ' | ' |
Common shares, Authorized | 750 | 750 | ' |
Common shares, Voting rights per share | 'one vote | 'one vote | ' |
Class B common shares | ' | ' | ' |
Common shares, Authorized | 5 | 5 | ' |
Common shares, Voting rights per share | 'one-fifth of one vote | 'one-fifth of one vote | ' |
Treasury Shares | ' | ' | ' |
Treasury shares acquired (using Cost Method), Shares | 9.9 | 10.2 | 10.3 |
Treasury shares acquired (using Cost Method), Value | $673 | $450 | $450 |
Treasury Stock Acquired, Average Cost Per Share | $67.85 | $44.11 | $43.64 |
Treasury Shares | Three Year Aggregate | ' | ' | ' |
Treasury shares acquired (using Cost Method), Shares | 1,600 | ' | ' |
Shareholders_Equity_Schedule_o
Shareholders' Equity (Schedule of the changes in the balance in AOCI by component and in total) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' | ' |
Accumulated other comprehensive income at Beginning of Period | $68 | $37 | ' |
Other comprehensive income/(loss), before reclassifications | -1 | 26 | ' |
Amounts reclassified to earnings | 3 | 5 | ' |
Other comprehensive income/(loss), Foreign currency transaction and translation adjustment, Net of tax | 9 | 18 | -34 |
Other comprehensive income/(loss), Derivatives qualifying as hedges, Net of tax | -7 | 13 | -6 |
Total other comprehensive income/(loss), net of tax | 2 | 31 | -40 |
Accumulated other comprehensive income at End of Period | 70 | 68 | 37 |
Other Comprehensive Income/(loss), Tax | 5 | 9 | ' |
Foreign Currency Translation Adjustments | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' | ' |
Accumulated other comprehensive income at Beginning of Period | 54 | 36 | ' |
Other comprehensive income/(loss), before reclassifications | 9 | 18 | ' |
Amounts reclassified to earnings | 0 | 0 | ' |
Other comprehensive income/(loss), Foreign currency transaction and translation adjustment, Net of tax | 9 | 18 | ' |
Accumulated other comprehensive income at End of Period | 63 | 54 | ' |
Unrealized Gain/(Loss) on Derivatives, net of tax | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Rollforward] | ' | ' | ' |
Accumulated other comprehensive income at Beginning of Period | 14 | 1 | ' |
Other comprehensive income/(loss), before reclassifications | -10 | 8 | ' |
Amounts reclassified to earnings | 3 | 5 | ' |
Other comprehensive income/(loss), Derivatives qualifying as hedges, Net of tax | -7 | 13 | ' |
Accumulated other comprehensive income at End of Period | $7 | $14 | ' |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Potentially dilutive employee stock options, restricted shares, restricted share units and performance share units that were anitdilutive | 0 | 9 | 10 |
Earnings_Per_Share_Reconciliat
Earnings Per Share (Reconciliation of Common Shares Used to Compute Basic and Diluted EPS) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted-average common shares-basic | 341 | 341 | 345 |
Effect of dilutive securities: | ' | ' | ' |
Employee stock options, restricted shares, restricted share units and performance share units | 4 | 3 | 4 |
Weighted-average common shares-diluted | 345 | 344 | 349 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segments | Segments | ||
Reportable_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 | $33 | $37 | $21 |
Segment_Information_Revenue_by
Segment Information (Revenue by Reportable Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | $22,894 | [1] | $21,427 | $22,240 | $24,523 | $25,420 | $24,552 | $25,232 | $25,889 | $91,084 | $101,093 | $107,552 | |||
Pharmaceutical | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 80,110 | [2] | 91,097 | [2] | 97,925 | [2] | |
Medical | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 10,962 | 10,060 | 9,642 | ||||
Reportable Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 91,072 | 101,157 | 107,567 | ||||
Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | $12 | [3] | ($64) | [3] | ($15) | [3] | |
Walgreens Co | Pharmaceutical | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Contract expiration date | ' | ' | ' | ' | ' | ' | ' | ' | 31-Aug-13 | ' | ' | ||||
Express Scripts, Inc. | Pharmaceutical | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Contract expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-12 | ' | ||||
[1] | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | ||||||||||||||
[2] | Our pharmaceutical distribution contract with Walgreens expired on AugustB 31, 2013. Our pharmaceutical distribution contract with Express Scripts, Inc. expired on SeptemberB 30, 2012. | ||||||||||||||
[3] | Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. |
Segment_Information_Segment_Pr
Segment Information (Segment Profit by Reportable Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating earnings | $1,885 | $996 | $1,792 |
Pharmaceutical | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating earnings | 1,745 | 1,734 | 1,558 |
Medical | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating earnings | 444 | 372 | 332 |
Reportable Segments | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating earnings | 2,189 | 2,106 | 1,890 |
Corporate | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' |
Operating earnings | ($304) | ($1,110) | ($98) |
Segment_Information_Depreciati
Segment Information (Depreciation and Amortization by Reportable Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting Information | ' | ' | ' |
Depreciation and amortization | $459 | $397 | $325 |
Pharmaceutical | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Depreciation and amortization | 128 | 125 | 114 |
Medical | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Depreciation and amortization | 130 | 137 | 119 |
Corporate | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Depreciation and amortization | $201 | $135 | $92 |
Segment_Information_Additions_
Segment Information (Additions to Property and Equipment by Reportable Segment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Segment Reporting Information | ' | ' | ' |
Additions to property and equipment | $249 | $195 | $260 |
Pharmaceutical | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Additions to property and equipment | 72 | 46 | 44 |
Medical | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Additions to property and equipment | 72 | 48 | 100 |
Corporate | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Additions to property and equipment | $105 | $101 | $116 |
Segment_Information_Assets_by_
Segment Information (Assets by Reportable Segment) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
In Millions, unless otherwise specified | |||
Segment Reporting, Asset Reconciling Item | ' | ' | ' |
Assets | $26,033 | $25,819 | $24,260 |
Pharmaceutical | ' | ' | ' |
Segment Reporting, Asset Reconciling Item | ' | ' | ' |
Assets | 15,361 | 16,258 | 16,642 |
Medical | ' | ' | ' |
Segment Reporting, Asset Reconciling Item | ' | ' | ' |
Assets | 6,768 | 6,521 | 4,399 |
Corporate | ' | ' | ' |
Segment Reporting, Asset Reconciling Item | ' | ' | ' |
Assets | $3,904 | $3,040 | $3,219 |
Segment_Information_Revenue_an
Segment Information (Revenue and Property and Equipment, net by Geographic Area) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | $22,894 | [1] | $21,427 | $22,240 | $24,523 | $25,420 | $24,552 | $25,232 | $25,889 | $91,084 | $101,093 | $107,552 |
Property and equipment, net | 1,459 | ' | ' | ' | 1,489 | ' | ' | ' | 1,459 | 1,489 | 1,551 | |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 87,449 | 97,994 | 105,205 | |
Property and equipment, net | 1,301 | ' | ' | ' | 1,355 | ' | ' | ' | 1,301 | 1,355 | 1,425 | |
International | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 3,635 | 3,099 | 2,347 | |
Property and equipment, net | $158 | ' | ' | ' | $134 | ' | ' | ' | $158 | $134 | $126 | |
[1] | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. |
ShareBased_Compensation_and_Sa2
Share-Based Compensation and Savings Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $33 | $32 | $31 |
Total expense recognized from employee retirement savings plans | $75 | $68 | $53 |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, in years | '3 years | ' | ' |
Stock Options | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Exercisable period of plans, in years | '7 years | ' | ' |
Stock Options | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Exercisable period of plans, in years | '10 years | ' | ' |
Restricted Shares and Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, in years | '3 years | ' | ' |
Performance Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 143.00% | ' | ' |
Performance Share Units | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ' | ' |
Performance Share Units | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, in years | '3 years | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ' | ' |
2011 LTIP | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 26 | ' | ' |
2011 LTIP | Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 26 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'one share for every share issued | ' | ' |
2011 LTIP | Awards Other than Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 10 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 'two and one-half shares for every share issued | ' | ' |
ShareBased_Compensation_and_Sa3
Share-Based Compensation and Savings Plans (Schedule of Total Share-Based Compensation Expense by Type of Award) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Share-based compensation expense | $96 | $93 | $85 |
Restricted Shares and Share Units | ' | ' | ' |
Share-based compensation expense | 62 | 60 | 55 |
Stock Options | ' | ' | ' |
Share-based compensation expense | 21 | 23 | 25 |
Performance Share Units | ' | ' | ' |
Share-based compensation expense | 13 | 10 | 6 |
Stock Appreciation Rights | ' | ' | ' |
Share-based compensation expense | $0 | $0 | ($1) |
ShareBased_Compensation_and_Sa4
Share-Based Compensation and Savings Plans (Schedule of All Stock Option Transactions Under the Plans) (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' |
Stock Options Outstanding at Beginning of Period | 15 | 21 |
Stock Options Outstanding, Granted | 2 | 3 |
Stock Options Outstanding, Exercised | -7 | -6 |
Stock Options Outstanding, Canceled and forfeited | 0 | -3 |
Stock Options Outstanding at End of Period | 10 | 15 |
Stock Options Outstanding, Exercisable at End of Period | 5 | ' |
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 | $37.29 |
Weighted-Average Exercise Price Per Common Share, Granted | $51.77 | $39.81 |
Weighted-Average Exercise Price Per Common Share, Exercised | $38.29 | $33.19 |
Weighted-Average Exercise Price Per Common Share, Canceled and forfeited | $0 | $46.91 |
Weighted-Average Exercise Price Per Common Share, Outstanding at December 31, 2013 | $39.16 | $36.97 |
Weighted-Average Exercise Price Per Common Share, Exercisable at December 31, 2013 | $33.62 | ' |
ShareBased_Compensation_and_Sa5
Share-Based Compensation and Savings Plans (Schedule of Additional Data Related to Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash received upon exercise | $227 | $121 | $42 |
Stock Options | ' | ' | ' |
Aggregate intrinsic value of outstanding options at period end, Stock Options | 282 | 156 | 0 |
Aggregate intrinsic value of exercisable options at period end, Stock Options | 185 | 113 | 0 |
Aggregate intrinsic value of exercised options | 155 | 64 | 27 |
Cash received upon exercise | 227 | 121 | 42 |
Cash tax proceeds/(disbursements) realized related to exercise | 39 | -19 | -4 |
Total compensation cost, net of estimated forfeitures, related to unvested awards not yet recognized, pre-tax | 24 | 22 | 25 |
Total fair value of shares vested during the year | $20 | $28 | $26 |
Weighted-average grant date fair value per stock option | $10.32 | $8.15 | $9.26 |
ShareBased_Compensation_and_Sa6
Share-Based Compensation and Savings Plans (Schedule of Remaining Stock Option Plan Data) (Details) (Stock Options) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Stock Options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Weighted-average remaining contractual life of outstanding options | '6 years | '4 years | '3 years |
Weighted-average remaining contractual life of exercisable options | '4 years | '3 years | '2 years |
Weighted-average period over which award cost is expected to be recognized (in years) | '2 years | '2 years | '2 years |
ShareBased_Compensation_and_Sa7
Share-Based Compensation and Savings Plans (Schedule of the Range of Assumptions Used to Estimate the Fair Value of Stock Options) (Details) (Stock Options) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Risk-Free Interest Rate, Minimum | 1.90% | 1.10% | 1.20% |
Risk-Free Interest Rate, Maximum | 2.00% | 1.30% | 1.30% |
Expected Volatility Rate | 27.00% | 29.00% | 29.00% |
Expected Life in Years | '6 years | '6 years | '6 years |
Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Dividend Yield | 1.80% | 2.10% | 2.00% |
Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Dividend Yield | 2.40% | 2.50% | 2.10% |
ShareBased_Compensation_and_Sa8
Share-Based Compensation and Savings Plans (Schedule of All Transactions Related to Restricted Shares and Restricted Share Units Under the Plans) (Details) (Restricted Shares and Share Units, USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Restricted Shares and Share Units | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Nonvested at Beginning of Period | 3 | 4 |
Granted | 1 | 2 |
Vested | -1 | -2 |
Canceled and forfeited | 0 | -1 |
Nonvested at End of Period | 3 | 3 |
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 Beginning of Period | $38.74 | $35.46 |
Weighted-Average Grant Date Fair Value Per Share, Granted | $52.40 | $40.02 |
Weighted-Average Grant Date Fair Value Per Share, Vested | $37.59 | $33.41 |
Weighted-Average Grant Date Fair Value Per Share, Canceled and forfeited | $0 | $38.84 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested at End of Period | $45.65 | $38.74 |
ShareBased_Compensation_and_Sa9
Share-Based Compensation and Savings Plans (Additional Data Related to Restricted Share and Restricted Share Unit Activity) (Details) (Restricted Shares and Share Units, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Restricted Shares and Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total compensation cost, net of estimated forfeitures, related to unvested awards not yet recognized, pre-tax | $75 | $67 | $67 |
Weighted-average period over which award cost is expected to be recognized (in years) | '2 years | '2 years | '2 years |
Total fair value of shares vested during the year | $55 | $60 | $54 |
Recovered_Sheet2
Share-Based Compensation and Savings Plans (Schedule of all Transactions Related to Performance Share Units Under the Plans) (Details) (Performance Share Units, USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | |
Performance Share Units | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 143.00% | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | |
Nonvested at Beginning of Period | 0.8 | 0.5 | |
Granted | 0.3 | 0.3 | |
Vested | -0.2 | [1] | 0 |
Canceled and forfeited | 0 | 0 | |
Nonvested at End of Period | 0.9 | 0.8 | |
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 Beginning of Period | $41.37 | $42.60 | |
Weighted-Average Grant Date Fair Value Per Share, Granted | $51.49 | $39.81 | |
Weighted-Average Grant Date Fair Value Per Share, Vested | $41.60 | $0 | |
Weighted-Average Grant Date Fair Value Per Share, Canceled and forfeited | $0 | $0 | |
Weighted-Average Grant Date Fair Value Per Share, Nonvested at End of Period | $44.41 | $41.37 | |
[1] | Vested based on achievement of 143 percent of the target performance goal. |
Recovered_Sheet3
Share-Based Compensation and Savings Plans (Additional Data Related to Performance Share Unit Activity) (Details) (Performance Share Units, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Performance Share Units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Total compensation cost, net of estimated forfeitures, related to unvested awards not yet recognized, pre-tax | $15 | $12 | $12 |
Weighted-average period over which award cost is expected to be recognized (in years) | '2 years | '2 years | '2 years |
Total fair value of shares vested during the year | $7 | $0 | $0 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Schedule of Quarterly Financial Data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | ||
Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | Revenue | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | Provision for income tax | ||||||||||||||
Revenue | $22,894 | [1] | $21,427 | $22,240 | $24,523 | $25,420 | $24,552 | $25,232 | $25,889 | $91,084 | $101,093 | $107,552 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Gross margin | 1,256 | 1,297 | 1,345 | 1,264 | 1,247 | 1,291 | 1,224 | 1,159 | 5,161 | 4,921 | 4,541 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Distribution, selling, general and administrative expenses | 795 | 736 | 766 | 732 | 775 | 712 | 699 | 690 | 3,028 | 2,875 | 2,677 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Earnings/(loss) from continuing operations | 234 | 315 | 275 | 340 | -586 | 346 | 303 | 272 | 1,163 | 335 | 1,070 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Earnings/(loss) from discontinued operations, net of tax | 0 | 0 | 3 | -1 | 0 | -1 | 0 | -1 | 3 | -1 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net earnings/(loss) | 234 | 315 | 278 | 339 | -586 | [2] | 345 | 303 | 271 | 1,166 | 334 | 1,069 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Earnings/(loss) from continuing operations per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Basic | $0.69 | $0.92 | $0.80 | $1 | ($1.72) | $1.01 | $0.89 | $0.80 | $3.41 | $0.98 | $3.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Diluted | $0.68 | $0.91 | $0.79 | $0.99 | ($1.72) | [3] | $1 | $0.88 | $0.79 | $3.37 | $0.97 | $3.06 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Quantifying Misstatement in Current Year Financial Statements, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $14 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | $0.60 | ||
[1] | During the fourth quarter of fiscal 2014, we recorded an out-of-period decrease in revenue of $14 million related to customer pricing adjustments, of which $1 million pertained to each of the first three quarters of fiscal 2014 and each quarter of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | ||||||||||||||||||||||||||||
[2] | During the fourth quarter of fiscal 2013, we recorded an out-of-period increase in income tax expense of $14 million related to uncertain tax benefits, of which generally less than $1 million pertained to the each of the first three quarters of fiscal 2013. The amounts were not material individually or in the aggregate to current or prior periods. | ||||||||||||||||||||||||||||
[3] | Due to the loss from continuing operations incurred during the fourth quarter of fiscal 2013, potential dilutive common shares have not been included in the denominator of the diluted per share computation for this period due to their antidilutive effect. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | $443 | [1] | $143 | [1] | $150 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1,786 | [1],[2] | 332 | [1],[2] | 22 | [1],[2] |
Valuation Allowances and Reserves, Charged to Other Accounts | 4 | [1],[3] | 2 | [1],[3] | 1 | [1],[3] |
Valuation Allowances and Reserves, Deductions | -1,804 | [1],[4] | -34 | [1],[4] | -30 | [1],[4] |
Valuation Allowances and Reserves, Ending Balance | 429 | [1] | 443 | [1] | 143 | [1] |
Valuation Allowances and Reserves, Recoveries | 3 | 1 | 1 | |||
Allowance for Accounts Receivable | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 134 | [1] | 126 | [1] | 134 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 51 | [1],[2] | 40 | [1],[2] | 22 | [1],[2] |
Valuation Allowances and Reserves, Charged to Other Accounts | 2 | [1],[3] | 2 | [1],[3] | 1 | [1],[3] |
Valuation Allowances and Reserves, Deductions | -50 | [1],[4] | -34 | [1],[4] | -31 | [1],[4] |
Valuation Allowances and Reserves, Ending Balance | 137 | [1] | 134 | [1] | 126 | [1] |
Allowance for Finance Notes Receivable | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 17 | [1] | 16 | [1] | 15 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | [1],[2] | 1 | [1],[2] | 0 | [1],[2] |
Valuation Allowances and Reserves, Charged to Other Accounts | 2 | [1],[3] | 0 | [1],[3] | 0 | [1],[3] |
Valuation Allowances and Reserves, Deductions | -1 | [1],[4] | 0 | [1],[4] | 1 | [1],[4] |
Valuation Allowances and Reserves, Ending Balance | 18 | [1] | 17 | [1] | 16 | [1] |
Allowance Sales Returns and Allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 291 | [1] | 0 | [1] | ' | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1,735 | [1],[2] | 291 | [1],[2] | ' | |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | [1],[3] | 0 | [1],[3] | ' | |
Valuation Allowances and Reserves, Deductions | -1,753 | [1],[4] | 0 | [1],[4] | ' | |
Valuation Allowances and Reserves, Ending Balance | 273 | [1] | 291 | [1] | ' | |
Allowance for Other | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Beginning Balance | 1 | [1] | 1 | [1] | 1 | [1] |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | [1],[3] | 0 | [1],[3] | 0 | [1],[3] |
Valuation Allowances and Reserves, Deductions | 0 | [1],[4] | 0 | [1],[4] | 0 | [1],[4] |
Valuation Allowances and Reserves, Ending Balance | 1 | [1] | 1 | [1] | 1 | [1] |
Pricing Disputes | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Valuation Allowances and Reserves, Charged to Cost and Expense | $9 | $10 | ' | |||
[1] | Amounts included herein pertain to the continuing operations of the Company. | |||||
[2] | Fiscal 2014 and 2013 include $9 million and $10 million, respectively, for reserves related to customer pricing disputes, excluded from provision for bad debts on the consolidated statements of cash flows and classified as a reduction in gross margin in the consolidated statements of earnings. | |||||
[3] | Recoveries of amounts provided for or written off in prior years were $3 million for fiscal 2014 and $1 million for both fiscal 2013 and 2012, respectively. | |||||
[4] | Write-off of uncollectible accounts or actual sales returns. |