Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | cah | |
Entity Registrant Name | CARDINAL HEALTH INC | |
Entity Central Index Key | 0000721371 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 298,059,831 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 35,228 | $ 33,633 | $ 108,181 | $ 101,460 |
Cost of products sold | 33,464 | 31,720 | 103,021 | 96,014 |
Gross margin | 1,764 | 1,913 | 5,160 | 5,446 |
Operating expenses: | ||||
Distribution, selling, general and administrative expenses | 1,097 | 1,132 | 3,315 | 3,325 |
Restructuring and employee severance | 53 | 2 | 97 | 155 |
Amortization and other acquisition-related costs | 154 | 175 | 468 | 543 |
Impairments and (gain)/loss on disposal of assets, net | 11 | (6) | (492) | 62 |
Litigation (recoveries)/charges, net | 17 | 64 | 20 | 155 |
Operating earnings | 432 | 546 | 1,752 | 1,206 |
Other (income)/expense, net | (13) | (2) | 13 | (6) |
Interest expense, net | 75 | 84 | 227 | 251 |
Loss on Extinguishment of Debt | 0 | 0 | 0 | 2 |
Earnings before income taxes | 370 | 464 | 1,512 | 959 |
Provision for/(benefit from) income taxes | 74 | 209 | 342 | (466) |
Net earnings | 296 | 255 | 1,170 | 1,425 |
Net earnings attributable to noncontrolling interests | 0 | 0 | (1) | (3) |
Net earnings attributable to Cardinal Health, Inc. | $ 296 | $ 255 | $ 1,169 | $ 1,422 |
Earnings per common share attributable to Cardinal Health, Inc.: | ||||
Basic (in shares) | $ 0.99 | $ 0.81 | $ 3.89 | $ 4.52 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.99 | $ 0.81 | $ 3.88 | $ 4.50 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 298 | 313 | 301 | 314 |
Diluted (in shares) | 299 | 315 | 302 | 316 |
Cash dividends declared per common share | $ 0.4763 | $ 0.4624 | $ 1.4289 | $ 1.3872 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net earnings | $ 296 | $ 255 | $ 1,170 | $ 1,425 |
Other comprehensive income/(loss): | ||||
Foreign currency translation adjustments and other | 13 | 110 | (16) | 141 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | (23) | 0 | (23) |
Net unrealized gain/(loss) on derivative instruments, net of tax | (1) | 3 | (3) | 2 |
Total other comprehensive income/(loss), net of tax | 90 | (19) | 120 | |
Total comprehensive income | 308 | 345 | 1,151 | 1,545 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 1 | 3 |
Total comprehensive income attributable to Cardinal Health, Inc. | $ 308 | $ 345 | $ 1,150 | $ 1,542 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and equivalents | $ 3,438 | $ 1,763 |
Trade receivables, net | 7,879 | 7,800 |
Inventories, net | 12,622 | 12,308 |
Prepaid expenses and other | 1,643 | 1,926 |
Assets held for sale | 0 | 756 |
Total current assets | 25,582 | 24,553 |
Property and equipment, net | 2,322 | 2,487 |
Goodwill and other intangibles, net | 11,860 | 12,229 |
Other assets | 1,045 | 682 |
Total assets | 40,809 | 39,951 |
Current liabilities: | ||
Accounts payable | 20,517 | 19,677 |
Current portion of long-term obligations and other short-term borrowings | 1,451 | 1,001 |
Other accrued liabilities | 1,951 | 2,002 |
Liabilities related to assets held for sale | 0 | 213 |
Total current liabilities | 23,919 | 22,893 |
Long-term obligations, less current portion | 7,629 | 8,012 |
Deferred income taxes and other liabilities | 3,029 | 2,975 |
Redeemable noncontrolling interests | 0 | 12 |
Preferred shares, without par value: | ||
Authorized—500 thousand shares, Issued—none | 0 | 0 |
Common shares, without par value: | ||
Authorized—755 million shares, Issued—327 million shares at March 31, 2019 and June 30, 2018, respectively | 2,748 | 2,730 |
Retained earnings | 5,386 | 4,645 |
Common shares in treasury, at cost: 29 million shares and 18 million shares at March 31, 2019 and June 30, 2018, respectively | (1,793) | (1,224) |
Accumulated other comprehensive loss | (111) | (92) |
Total Cardinal Health, Inc. shareholders' equity | 6,230 | 6,059 |
Noncontrolling interests | 2 | 0 |
Total shareholders’ equity | 6,232 | 6,059 |
Total liabilities, redeemable noncontrolling interests and shareholders’ equity | $ 40,809 | $ 39,951 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Mar. 31, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred shares, authorized | 500,000 | 500,000 |
Preferred shares, issued | 0 | 0 |
Common shares, authorized | 755,000,000 | 755,000,000 |
Common shares, issued | 327,000,000 | 327,000,000 |
Common shares in treasury | 29,000,000 | 18,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest |
Net Income (Loss) Attributable to Parent | $ 1,422 | $ 1,422 | ||||
Balance at beginning of period (in shares) at Jun. 30, 2017 | 327 | |||||
Balance at beginning of period at Jun. 30, 2017 | 6,828 | $ 2,697 | 4,967 | $ (125) | $ 20 | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2017 | (11) | |||||
Treasury, balance at beginning of period at Jun. 30, 2017 | $ (731) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 1,425 | |||||
Net Earnings Including Portion Attributable to Noncontrolling Interest Excluding Redeemable Noncontrolling Interest | 1,422 | |||||
Other Comprehensive Income (Loss), Net of Tax | 120 | 120 | ||||
Other Comprehensive Income (Loss), Net of Tax | 120 | |||||
Purchase from noncontrolling interests | (19) | (19) | ||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1 | |||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 68 | $ 13 | $ 55 | |||
Treasury shares acquired (in shares) | (6.5) | |||||
Treasury shares acquired | (450) | $ (450) | ||||
Dividends declared | (436) | (436) | ||||
Other | 5 | 5 | ||||
Balance at end of period (in shares) at Mar. 31, 2018 | 327 | |||||
Balance at end of period at Mar. 31, 2018 | 7,538 | $ 2,710 | 5,958 | (5) | 1 | |
Treasury, balance at end of period (in shares) at Mar. 31, 2018 | (16) | |||||
Treasury, balance at end of period at Mar. 31, 2018 | $ (1,126) | |||||
Net Income (Loss) Attributable to Parent | 255 | 255 | ||||
Balance at beginning of period (in shares) at Dec. 31, 2017 | 327 | |||||
Balance at beginning of period at Dec. 31, 2017 | 7,619 | $ 2,694 | 5,848 | (95) | 20 | |
Treasury, balance at beginning of period (in shares) at Dec. 31, 2017 | (12) | |||||
Treasury, balance at beginning of period at Dec. 31, 2017 | $ (848) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 255 | |||||
Net Earnings Including Portion Attributable to Noncontrolling Interest Excluding Redeemable Noncontrolling Interest | 255 | |||||
Other Comprehensive Income (Loss), Net of Tax | 90 | 90 | ||||
Other Comprehensive Income (Loss), Net of Tax | 90 | |||||
Purchase from noncontrolling interests | (19) | (19) | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 38 | $ 16 | $ 22 | |||
Treasury shares acquired (in shares) | (4) | |||||
Treasury shares acquired | (300) | $ (300) | ||||
Dividends declared | (144) | (144) | ||||
Other | (1) | (1) | ||||
Balance at end of period (in shares) at Mar. 31, 2018 | 327 | |||||
Balance at end of period at Mar. 31, 2018 | 7,538 | $ 2,710 | 5,958 | (5) | 1 | |
Treasury, balance at end of period (in shares) at Mar. 31, 2018 | (16) | |||||
Treasury, balance at end of period at Mar. 31, 2018 | $ (1,126) | |||||
Net Income (Loss) Attributable to Parent | $ 1,169 | 1,169 | ||||
Balance at beginning of period (in shares) at Jun. 30, 2018 | 327 | 327 | ||||
Balance at beginning of period at Jun. 30, 2018 | $ 6,059 | $ 2,730 | 4,645 | (92) | 0 | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2018 | (18) | (18) | ||||
Treasury, balance at beginning of period at Jun. 30, 2018 | $ (1,224) | $ (1,224) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 1,170 | 1 | ||||
Net Earnings Including Portion Attributable to Noncontrolling Interest Excluding Redeemable Noncontrolling Interest | 1,170 | |||||
Other Comprehensive Income (Loss), Net of Tax | (19) | (19) | ||||
Other Comprehensive Income (Loss), Net of Tax | (19) | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1 | |||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 49 | $ 18 | $ 31 | |||
Treasury shares acquired (in shares) | (11.5) | |||||
Treasury shares acquired | (600) | $ (600) | ||||
Dividends declared | (429) | (429) | ||||
Other | $ 2 | 1 | 1 | |||
Balance at end of period (in shares) at Mar. 31, 2019 | 327 | 327 | ||||
Balance at end of period at Mar. 31, 2019 | $ 6,232 | $ 2,748 | 5,386 | (111) | 2 | |
Treasury, balance at end of period (in shares) at Mar. 31, 2019 | (29) | (29) | ||||
Treasury, balance at end of period at Mar. 31, 2019 | $ (1,793) | $ (1,793) | ||||
Net Income (Loss) Attributable to Parent | 296 | |||||
Balance at beginning of period (in shares) at Dec. 31, 2018 | 327 | |||||
Balance at beginning of period at Dec. 31, 2018 | 6,043 | $ 2,728 | 5,233 | (123) | 0 | |
Treasury, balance at beginning of period (in shares) at Dec. 31, 2018 | (29) | |||||
Treasury, balance at beginning of period at Dec. 31, 2018 | $ (1,795) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 296 | |||||
Net Earnings Including Portion Attributable to Noncontrolling Interest Excluding Redeemable Noncontrolling Interest | 296 | |||||
Other Comprehensive Income (Loss), Net of Tax | 12 | |||||
Other Comprehensive Income (Loss), Net of Tax | 12 | |||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 22 | $ 20 | $ 2 | |||
Dividends declared | (143) | (143) | ||||
Other | $ 2 | 2 | ||||
Balance at end of period (in shares) at Mar. 31, 2019 | 327 | 327 | ||||
Balance at end of period at Mar. 31, 2019 | $ 6,232 | $ 2,748 | $ 5,386 | $ (111) | $ 2 | |
Treasury, balance at end of period (in shares) at Mar. 31, 2019 | (29) | (29) | ||||
Treasury, balance at end of period at Mar. 31, 2019 | $ (1,793) | $ (1,793) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,170 | $ 1,425 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 759 | 779 |
Loss on Sale of Investments | 2 | 6 |
Impairments and (gain)/loss on disposal of assets, net | (492) | 62 |
Share-based compensation | (64) | (64) |
Provision for bad debts | 59 | 50 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | (2) |
Change in operating assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in trade receivables | (156) | (632) |
Increase in inventories | (345) | (865) |
Increase in accounts payable | 846 | 1,635 |
Other accrued liabilities and operating items, net | 309 | (308) |
Net cash provided by operating activities | 2,216 | 2,214 |
Cash flows from investing activities: | ||
Acquisition of subsidiaries, net of cash acquired | (38) | (6,142) |
Additions to property and equipment | (192) | (246) |
Purchase of available-for-sale securities and other investments | (11) | (7) |
Proceeds from sale of available-for-sale securities and other investments | 3 | 65 |
Proceeds from divestitures and disposal of property and equipment and held for sale assets | 749 | 862 |
Net cash provided by/(used in) investing activities | 511 | (5,468) |
Cash flows from financing activities: | ||
Payment for Contingent Consideration Liability, Financing Activities | 0 | 22 |
Net change in short-term borrowings | 0 | (50) |
Purchase of noncontrolling interests | 0 | (106) |
Proceeds from Issuance of Long-term Debt and Capital Securities, Net | 1 | 3 |
Reduction of long-term obligations | (3) | (403) |
Net proceeds/(tax withholdings) from share-based compensation | (13) | (3) |
Dividends on common shares | (435) | (436) |
Payments for Repurchase of Common Stock | (600) | (450) |
Net cash used in financing activities | (1,050) | (1,467) |
Effect of exchange rates changes on cash and equivalents | (2) | 17 |
Net increase/(decrease) in cash and equivalents | 1,675 | (4,704) |
Cash and equivalents at beginning of period | 1,763 | 6,879 |
Cash and equivalents at end of period | $ 3,438 | $ 2,175 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. References to "we," "our," and similar pronouns in these condensed consolidated financial statements refer to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries unless the context requires otherwise. Our fiscal year ends on June 30. References to fiscal 2019 and 2018 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2019 and June 30, 2018 , respectively. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. To conform to the current year presentation, certain prior year amounts have been reclassified. In addition, financial results presented for this fiscal 2019 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2019 . These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the " 2018 Form 10-K"). Recent Financial Accounting Standards In October 2018, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to derivatives and hedging which permits the use of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") as a Benchmark Interest Rate for Hedge Accounting Purposes. This guidance will be effective for us in the first quarter of fiscal 2020 and must be applied on a prospective basis. The impact of adoption on our condensed consolidated financial statements is contingent upon future events. In March 2018, the FASB issued amended accounting guidance to codify SEC staff accounting bulletin 118 (“SAB 118”), which was issued in connection with the Tax Cuts and Jobs Act (the “Tax Act”) of December 2017. The guidance allows companies to use provisional estimates to record the effects of the Tax Act and also provides a measurement period (not to exceed one year from the date of enactment) to complete the accounting for the impacts of the Tax Act. We adopted this guidance in the second quarter of fiscal 2018 when it was initially issued as SAB 118. We completed our accounting for the impacts from enactment of the Tax Act during the three months ended December 31, 2018. Future adjustments to the financial statements may be necessary as final tax regulations and any additional pending regulatory changes are issued, the impacts of which are being currently assessed, or will be assessed, as final regulations are issued. See Note 7 for additional information regarding income taxes. In June 2016, the FASB issued amended accounting guidance that will require entities to measure credit losses on trade and other receivables, held-to-maturity debt securities, loans and other instruments using an "expected credit loss" model that considers historical experience, current conditions and reasonable supportable forecasts. This guidance also requires that credit losses on available-for-sale debt securities with unrealized losses be recognized as allowances rather than as deductions in the amortized cost of the securities. This guidance will be effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of adoption on our condensed consolidated financial statements. Leases In February 2016, the FASB issued amended accounting guidance that requires lessees to recognize most leases on the balance sheet as a lease liability and corresponding right-of-use asset. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing and uncertainty of cash flows arising from leases. We will adopt this guidance when it is effective for us in the first quarter of fiscal 2020 and we expect to elect the transition option which will allow us to not apply the amended lease accounting guidance to comparative periods that will be presented. We are continuing to evaluate the impact of this standard on our condensed consolidated financial statements, including identification of embedded leases and performing lease contract reviews. The majority of our lease spend relates to certain real estate with the remaining lease spend primarily related to equipment. Although we are continuing to assess the impact of the amended guidance, we generally anticipate that the adoption of the amended lease guidance will result in an increase to the assets and liabilities on our condensed consolidated balance sheets and will require certain changes to our systems and processes. Revenue Recognition In May 2014, the FASB issued amended accounting guidance related to revenue recognition which we adopted in the first quarter of fiscal 2019 using the modified retrospective method and that we applied to customer contracts that were not completed as of June 30, 2018. The adoption of the amended accounting guidance did not have a material impact on our condensed consolidated financial statements. We did not record any material contract assets, contract liabilities, or deferred contract costs in our condensed consolidated balance sheets upon adopting the amended accounting guidance. Assets recorded for the right to recover products from customers and the associated refund liabilities for return allowances were not material. We elected the practical expedient to expense costs to obtain a contract when incurred when the amortization period would have been one year or less. Additionally, we elected the practical expedients to not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed and for contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. See Note 13 for additional information regarding our disaggregation of revenue. Revenue in both segments is primarily related to the distribution of pharmaceutical and medical products, which we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise. Service revenues are recognized over the period that services are provided to the customer. Revenues derived from services are not material for either segment for all periods presented. We are generally the principal in a transaction, therefore our revenue is primarily recorded on a gross basis. When we are a principal in a transaction, we have determined that we control the ability to direct the use of the product or service prior to transfer to a customer, are primarily responsible for fulfilling the promise to provide the product or service to our customer, have discretion in establishing prices, and ultimately control the transfer of the product or services provided to the customer. Revenue is recorded net of sales returns and allowances. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts, rebates and other variable consideration. Sales returns are recorded based on estimates using historical data. Shipping and handling costs are primarily included in distribution, selling, general and administrative ("SG&A") expenses in our condensed consolidated statements of earnings and include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs incurred after control has transferred to the customer are treated as fulfillment costs. In the first quarter of fiscal 2019, we adopted the following Accounting Standards Updates ("ASU"). ASU 2016-01 Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities; ASU 2018-03 Technical Corrections and Improvements to Financial Instruments; ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments; ASU 2016-16 Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory; and ASU 2017-12 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The adoption of these ASU's did not have a material impact on our condensed consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions and Divestitures Acquisitions Patient Recovery Business On July 29, 2017, we acquired the Patient Care, Deep Vein Thrombosis, and Nutritional Insufficiency businesses (the "Patient Recovery Business") from Medtronic plc for $6.1 billion in cash. The acquisition further expands our Medical segment's portfolio of self-manufactured products. Transaction and integration costs associated with the acquisition of the Patient Recovery business were $17 million and $25 million for the three months ended March 31, 2019 and 2018 , respectively, and $62 million and $85 million for the nine months ended March 31, 2019 and 2018 , respectively. These costs are included in amortization and other acquisition-related costs in the condensed consolidated statements of earnings. Fair Value of Assets Acquired and Liabilities Assumed The allocation of the fair value of assets acquired and liabilities assumed for the acquisition of the Patient Recovery Business was finalized during the three months ended September 30, 2018, resulting in goodwill of $ 3.3 billion . There were no significant adjustments to the allocation of the fair value of assets acquired and liabilities assumed for the Patient Recovery Business acquisition from those disclosed in our fiscal 2018 Form 10-K. Divestitures In August 2018, we sold our 98 percent ownership interest in naviHealth Holdings, LLC ("naviHealth") to investor entities controlled by Clayton, Dubilier & Rice in exchange for cash proceeds of $737 million (after adjusting for certain fees and expenses) and a 44 percent equity interest in a partnership that owns 100 percent of the equity interest of naviHealth. We also have certain call rights to reacquire naviHealth. Refer to Note 5 for further discussion regarding this investment. During the nine months ended March 31, 2019 , we recognized a pre-tax gain of $508 million related to this divestiture in impairments and (gain)/loss on disposal of assets in our condensed consolidated statement of earnings. This gain includes our initial recognition of an equity method investment for $358 million and the derecognition of redeemable noncontrolling interests of $12 million . The fiscal 2019 tax expense as a result of this transaction will be approximately $130 million . We determined that the sale of the naviHealth business does not meet the criteria to be classified as discontinued operations. The naviHealth business operated within our Medical segment. |
Restructuring and Employee Seve
Restructuring and Employee Severance | 9 Months Ended |
Mar. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring and Employee Severance | 3. Restructuring and Employee Severance The following table summarizes restructuring and employee severance costs: Three Months Ended March 31, (in millions) 2019 2018 Employee-related costs (1) $ 29 $ (1 ) Facility exit and other costs (2) 24 3 Total restructuring and employee severance $ 53 $ 2 Nine Months Ended March 31, (in millions) 2019 2018 Employee-related costs (1) $ 70 $ 18 Facility exit and other costs (2) 27 137 Total restructuring and employee severance $ 97 $ 155 (1) Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. (2) Facility exit and other costs primarily consist of product distribution and lease contract termination costs, lease costs associated with vacant facilities, accelerated depreciation, equipment relocation costs, project consulting fees, costs associated with restructuring our delivery of information technology infrastructure services and certain other divestiture-related costs. In early fiscal 2019, we began implementing certain enterprise-wide cost-saving measures, which we expect to reduce our future operating expenses. As a result of these measures, we incurred pre-tax employee-related severance costs of $27 million and $60 million , during the three and nine months ended March 31, 2019, respectively, which are reflected in restructuring and employee severance in the condensed consolidated statements of earnings. In fiscal 2018, we entered into an agreement to transition the distribution of our Medical segment's surgeon gloves in certain international markets from a third-party distribution arrangement to a direct distribution model. The costs associated with this restructuring included $125 million , on a pre-tax basis, in contract termination costs that were paid during fiscal 2018. These costs are reflected in restructuring and employee severance in the condensed consolidated statements of earnings during the nine months ended March 31, 2018. The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions) Employee- Related Costs Facility Exit and Other Costs Total Balance at June 30, 2018 $ 24 $ 4 $ 28 Additions 60 14 74 Payments and other adjustments (32 ) (2 ) (34 ) Balance at March 31, 2019 $ 52 $ 16 $ 68 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill by segment and in total: (in millions) Pharmaceutical Medical Total Balance at June 30, 2018 $ 2,621 $ 5,695 $ 8,316 Goodwill acquired, net of purchase price adjustments 19 7 26 Foreign currency translation adjustments and other (3 ) (9 ) (12 ) Balance at March 31, 2019 $ 2,637 $ 5,693 $ 8,330 Other Intangible Assets The following tables summarize other intangible assets by class at: March 31, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: IPR&D, trademarks and other $ 59 $ — $ 59 N/A Total indefinite-life intangibles 59 — 59 N/A Definite-life intangibles: Customer relationships 3,528 1,432 2,096 14 Trademarks, trade names and patents 669 283 386 14 Developed technology and other 1,563 574 989 12 Total definite-life intangibles 5,760 2,289 3,471 14 Total other intangible assets $ 5,819 $ 2,289 $ 3,530 N/A June 30, 2018 (in millions) Gross Intangible Accumulated Amortization Net Intangible Indefinite-life intangibles: IPR&D, trademarks and other $ 62 $ — $ 62 Total indefinite-life intangibles 62 — 62 Definite-life intangibles: Customer relationships 3,513 1,191 2,322 Trademarks, trade names and patents 667 246 421 Developed technology and other 1,562 454 1,108 Total definite-life intangibles 5,742 1,891 3,851 Total other intangible assets $ 5,804 $ 1,891 $ 3,913 Total amortization of intangible assets was $133 million and $148 million for the three months ended March 31, 2019 and 2018 , respectively, and $399 million and $435 million for the nine months ended March 31, 2019 and 2018 , respectively. For acquisitions closed on or before March 31, 2019 , estimated annual amortization of intangible assets for the remainder of fiscal 2019 through 2023 is as follows: $133 million , $504 million , $436 million , $401 million and $351 million . |
Investments
Investments | 9 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5. Investments Investments in non-marketable equity securities are accounted for under the fair value, equity or net asset value method of accounting and are included in other assets in the condensed consolidated balance sheets. For equity securities without a readily determinable fair value, we use the fair value measurement alternative and measure the securities at cost less impairment, if any, including adjustments for observable price changes in orderly transactions for an identical or similar investment of the same issuer. For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Our share of the earnings and losses are recorded in other income, net in the condensed consolidated statements of earnings. We closely monitor our investments for other-than-temporary impairment by considering factors such as the operating performance of the investment and current economic and market conditions. In connection with the naviHealth divestiture discussed in Note 2 , we obtained a 44 percent equity interest in a partnership that owns 100 percent of the equity interest of naviHealth. We accounted for this investment initially at its fair value using Level 3 unobservable inputs based on expected sales proceeds following a competitive bidding process. We initially recognized a $358 million equity method investment. We are accounting for our equity interest in naviHealth using the equity method of accounting on a one-month reporting lag. The impact of our proportionate share of naviHealth's results was not material to our condensed consolidated statements of earnings for the nine months ended March 31, 2019 . Upon the divestiture closing, we received a non-cash distribution of $14 million in the form of the partnership's payment for certain of our divestiture transaction costs directly to the applicable third-party. At March 31, 2019 the carrying value of this investment was $339 million . |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 9 Months Ended |
Mar. 31, 2019 | |
Long-Term Obligations and Other Short-Term Borrowings [Abstract] | |
Debt Disclosure [Text Block] | 6. Long-Term Obligations and Other Short-Term Borrowings Long-Term Debt At March 31, 2019 and June 30, 2018 , we had total long-term obligations, including the current portion and other short-term borrowings, of $9.1 billion and $9.0 billion , respectively. All the borrowings represent unsecured obligations of Cardinal Health, Inc. and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. Interest is paid pursuant to the terms of the obligations. These obligations are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $20.5 billion . Other Financing Arrangements In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $2.0 billion commercial paper program backed by a $2.0 billion revolving credit facility. We also have a $1.0 billion committed receivables sales facility. On November 6, 2018, we increased the maximum consolidated leverage ratio permitted under our revolving credit and committed receivables facilities to provide that, as of the end of any calendar quarter, our maximum consolidated leverage ratio may be no more than 4.25-to-1. The maximum permitted ratio will reduce to 4.00-to-1 in September 2019, to 3.75-to-1 in March 2020 and to 3.25-to-1 in September 2020. As of March 31, 2019, we were in compliance with this financial covenant. In November 2016, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through November 1, 2019. CHF was organized for the sole purpose of buying receivables and selling undivided interests in those receivables to third-party purchasers. Although consolidated with Cardinal Health, Inc. in accordance with GAAP, CHF is a separate legal entity from Cardinal Health, Inc. and from our subsidiary that sells 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Fluctuations in our provision for/(benefit from) income taxes as a percentage of pretax earnings (“effective tax rate”) are generally due to changes in international and U.S. state effective tax rates resulting from our business mix and discrete items. U.S. Tax Cuts and Jobs Act On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code that affected fiscal 2018 and will incrementally affect our fiscal year 2019 financial results in several ways. First, the U.S. statutory tax rate in fiscal 2019 is reduced to 21 percent. Second, the Tax Act established new tax provisions that affected us beginning July 1, 2018 including, (1) eliminating the U.S. manufacturing deduction; (2) establishing new limitations on deductible interest expense and certain executive compensation; (3) eliminating the corporate alternative minimum tax; (4) creating the base erosion anti-abuse tax; (5) creating a new provision designed to tax global intangible low-tax income (“GILTI”) and allow for a deduction related to foreign derived intangible income ("FDII"); (6) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; and (7) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. Regarding the new GILTI tax rules, we elected to treat taxes due on future GILTI inclusions in U.S. taxable income as a current period expense when incurred. In accordance with SAB 118, we finalized our provisional estimates related to transitional tax benefits (i.e., remeasurement of deferred tax assets and liabilities and the repatriation tax on undistributed foreign earnings) which did not have a significant impact on tax expense during the nine months ended March 31, 2019. Future adjustments to the financial statements may be necessary as final tax regulations, including issued and pending regulatory changes, the impact of which is or will be assessed as final regulations are issued. Effective Tax Rate During the three months ended March 31, 2019 and 2018, the effective tax rate was 20.0 percent and 45.1 percent, respectively. The change in the effective tax rates for the t hree months ended March 31, 2019 compared to the prior period was due to discrete tax items, a lower federal statutory tax rate applied to our U.S. pre-tax earnings as a result of the Tax Act and the prior year unfavorable impact from changes in jurisdictional mix. The three months ended March 31, 2019 benefited from net favorable discrete items of $12 million and the three months ended March 31, 2018 were adversely affected by net unfavorable discrete items of $18 million . During the nine months ended March 31, 2019 and 2018, the effective tax rate was 22.6 percent and (48.6) percent, respectively. The change in the effective tax rates for the nine months ended March 31, 2019 c ompared to the prior period was primarily due to the prior year transitional tax benefits from the enactment of the Tax Act. The nine months ended March 31, 2019 also included net discrete benefits of $50 million , primarily related to international legal entity changes, and the nine months ended March 31, 2018 were adversely affected by net unfavorable discrete items of $12 million . The transitional tax benefits from the Tax Act during the three and nine months ended March 31, 2018 included a provisional net tax benefit of $18 million and $952 million , respectively, related to the remeasurement of our deferred tax assets and liabilities to the new federal statutory rate and the nine months ended March 31, 2018 a provisional tax expense of $41 million for the one-time repatriation tax applied to our undistributed foreign earnings. Our effective tax rates for the three and nine months ended March 31, 2018 also included $57 million of tax expense recognized in connection with the sale of our China distribution business. Unrecognized Tax Benefits At March 31, 2019 and June 30, 2018 , we had $436 million and $423 million of unrecognized tax benefits, respectively. The March 31, 2019 and June 30, 2018 balances include $275 million and $262 million of unrecognized tax benefits, respectively, that if recognized, would have an impact on the effective tax rate. At March 31, 2019 and June 30, 2018 , we had $116 million and $110 million , respectively, accrued for the payment of interest and penalties related to unrecognized tax benefits, which we recognize in the provision for/(benefit from) income taxes in the condensed consolidated statements of earnings. These balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the condensed consolidated balance sheets. It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service ("IRS") or other taxing authorities, possible settlement of audit issues, reassessment of existing unrecognized tax benefits or the expiration of statutes of limitations. We estimate that the range of the possible change in unrecognized tax benefits within the next 12 months is between zero and a net decrease of $20 million , exclusive of penalties and interest. Other Tax Matters We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2008 through the current fiscal year. We are a party to a tax matters agreement with CareFusion Corporation ("CareFusion"), which has been acquired by Becton, Dickinson and Company. Under the tax matters agreement, 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 $159 million and $151 million at March 31, 2019 and June 30, 2018 , respectively, and is included in other assets in the condensed consolidated balance sheets. As a result of the acquisition of the Patient Recovery Business, Medtronic plc is obligated to indemnify us for certain tax exposures and transaction taxes related to periods prior to the acquisition under the purchase agreement. The indemnification receivable was $24 million and $21 million at March 31, 2019 and June 30, 2018, respectively, and is included in other assets in the condensed consolidated balance sheet. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation | 9 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation | 8. Commitments, Contingent Liabilities and Litigation Commitments Generic Sourcing Venture with CVS Health Corporation ("CVS Health") Red Oak Sourcing, LLC ("Red Oak Sourcing") is a U.S.-based generic pharmaceutical sourcing venture with CVS Health for an initial term through June 2024. Red Oak Sourcing negotiates generic pharmaceutical supply contracts on behalf of its participants. Due to the achievement of predetermined milestones, we are required to make quarterly payments of $45.6 million to CVS Health for the initial term. Contingent Liabilities New York Opioid Stewardship Act In April 2018, the State of New York passed a budget which included the Opioid Stewardship Act (the "OSA"). The OSA created an aggregate $100 million annual assessment on all manufacturers and distributors licensed to sell or distribute opioids in New York. Under the OSA, each licensed manufacturer and distributor would be required to pay a portion of the assessment based on its ratable share, as determined by the state, of the total morphine milligram equivalents sold or distributed in New York during the applicable calendar year, beginning in 2017. In October, we received notices from the New York Department of Health of our estimated payment amount for calendar year 2017. In December 2018, the U.S. District Court for the Southern District of New York ruled that the OSA is unconstitutional and enjoined its enforcement (the "Ruling"). In January 2019, the State filed notice of its intent to appeal the Ruling. In April 2019, the State, among other things, amended the OSA so that the assessment would only cover opioid sales in 2017 and 2018, subject to the State's pending appeal of the Ruling. We accrue for contingencies if it is probable that a liability has been incurred and the amount can be estimated. At September 30, 2018, we recorded an aggregate accrual of $34 million for calendar year 2017 and the first three quarters of calendar 2018 based on the estimated payment amount, which reflected our best estimate of the OSA payments owed through September 30, 2018. As a result of the Ruling, in the three-months ended December 31, 2018, we reversed this accrual because we no longer believe it is probable that a liability has been incurred. Legal Proceedings We become involved from time to time in disputes, litigation and regulatory matters. We may be named from time to time in qui tam actions initiated by private third parties. In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful. 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 and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on his or her own purporting to act on behalf of the government . From time to time, we become aware through employees, internal audits or other parties of possible compliance matters, such as complaints or concerns relating to accounting, internal accounting controls, financial reporting, auditing, or other ethical matters or relating to compliance with laws such as healthcare fraud and abuse, anti-corruption or anti-bribery laws. When we become aware of such possible compliance matters, we investigate internally and take appropriate corrective action. In addition, from time to time, we receive subpoenas or requests for information from various federal or state agencies relating to our business or to the business of a customer, supplier or other industry participants. Internal investigations, subpoenas or requests for information could lead to the assertion of claims or the commencement of legal proceedings against us or result in sanctions. From time to time, we may determine that products we manufacture or market do not meet our specifications, regulatory requirements, or published standards. When we or a regulatory agency identify a potential quality or regulatory issue, 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, action by regulators and product liability claims and lawsuits, including class actions. Even absent an identified regulatory or quality issue or product recall, we can become subject to product liability claims and lawsuits. 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 recognize income from the favorable outcome of litigation when we receive the associated cash or assets. We recognize estimated loss contingencies for certain litigation and regulatory matters and income from favorable resolution of litigation in litigation (recoveries)/charges in our condensed consolidated statements of earnings. Opioid Lawsuits Pharmaceutical wholesale distributors, including us, have been named as defendants in over 2,000 lawsuits relating to the distribution of prescription opioid pain medications. These lawsuits have been filed in various federal, state, and other courts by a variety of plaintiffs, primarily counties, municipalities and other political subdivisions. Plaintiffs also include unions and other health and welfare funds, hospital systems and other healthcare providers, as well as individuals. Of these lawsuits, 63 are purported class actions. The lawsuits seek equitable relief and monetary damages based on a variety of legal theories including various common law claims, such as negligence, public nuisance and unjust enrichment as well as violations of controlled substance laws, the Racketeer Influenced and Corrupt Organizations Act and various other statutes. These lawsuits also name pharmaceutical manufacturers, retail pharmacy chains and other entities as defendants. The vast majority of these lawsuits were filed in U.S. federal court and have been transferred for consolidated pre-trial proceedings in a Multi-District Litigation proceeding in the U.S. District Court for the Northern District of Ohio. The court, among other things, has ordered that a bellwether trial begin in October 2019. In December 2018, the court denied distributor defendants' motions to dismiss the complaints associated with the bellwether case. In addition, 15 state attorneys general have filed lawsuits against distributors, including us, in various state courts, and 43 state attorneys general, including 8 that have filed suit, have formed a multi-state task force to investigate the manufacturing, distribution, dispensing and prescribing practices of opioid medications. We have received requests related to this multi-state investigation, as well as separate civil investigative demands, subpoenas or requests for information from these and other state attorneys general offices. We are cooperating with the offices conducting these investigations. In connection with these proceedings, distributors continue to engage in discussions with various parties, including state attorneys general and representatives of the MDL plaintiffs, regarding possible resolution. We are vigorously defending ourselves in all of these opioid-related matters. Given the uncertainty surrounding these lawsuits and investigations, we are unable to predict their outcome or estimate a range of reasonably possible losses. Product Liability Lawsuits As of May 3, 2019, we are named as a defendant in 237 product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by approximately 2,797 plaintiffs that allege personal injuries associated with the use of Cordis OptEase and TrapEase inferior vena cava (IVC) filter products. Another 22 similar lawsuits involving claims by approximately 24 plaintiffs are pending in other jurisdictions. These lawsuits seek a variety of remedies, including unspecified monetary damages. We are vigorously defending ourselves in these lawsuits. At March 31, 2019 , we had a total of $359 million , net of estimated insurance recoveries, accrued for losses and legal defense costs related to the Cordis IVC filter lawsuits which are presented on a gross basis in the condensed consolidated balance sheets. We believe there is a range of estimated losses with respect to these matters. Because no amount within the range is a better estimate than any other amount within the range, we have accrued the minimum amount in the range. We estimate the high end of the range to be approximately $729 million , net of estimated insurance recoveries. Antitrust Litigation Proceeds We received and recognized income resulting from settlements of class action lawsuits in which we were a class member of $46 million and $94 million in the three and nine-months ended March 31, 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements Assets and (liabilities) measured on a recurring basis The following tables present the fair values for assets and (liabilities) measured on a recurring basis at: March 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 875 $ — $ — $ 875 Other investments (1) 112 — — 112 Liabilities: Forward contracts (2) — 5 — 5 June 30, 2018 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 200 $ — $ — $ 200 Other investments (1) 117 — — 117 Liabilities: Forward contracts (2) — (76 ) — (76 ) (1) The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. (2) The fair value of interest rate swaps, foreign currency contracts, net investment hedges and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 10. 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 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 only enter into derivative instruments with major financial institutions that are rated 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 volatility in earnings, cash flow and net investments in certain subsidiaries 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 when possible to manage the price risk associated with certain forecasted purchases. 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 in the condensed consolidated statements of earnings. For the three and nine months ended March 31, 2019 and 2018, there was no gain or loss recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt. During the nine months ended March 31, 2019 , no new pay-floating interest rate swaps were executed. During the nine months ended March 31, 2018 , we entered into pay-floating interest rate swaps with a total notional amount of $650 million . These swaps have been designated as fair value hedges of our fixed rate debt and are included in other assets in the condensed consolidated balance sheet. 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 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. Gains and losses recognized in accumulated other comprehensive loss and reclassified into earnings were immaterial for the three and nine months ended March 31, 2019 and 2018. All gains and losses currently included within accumulated other comprehensive loss associated with our foreign exchange forward contracts that are expected to be reclassified into net earnings within the next 12 months are immaterial. Net Investment Hedges We hedge the foreign currency risk associated with certain net investment positions in European subsidiaries. To accomplish this, we enter into cross-currency swaps that are designated as hedges of net investments. In September 2018, we entered into a €200 million cross-currency swap maturing in 2023. Cross-currency swaps designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive loss until the sale or substantial liquidation of the underlying net investments. To the extent the cross-currency swaps designated as net investment hedges are not highly effective, changes in carrying value attributable to the change in spot rates are recorded in earnings. There was no ineffectiveness in our net investment hedges during the nine months ended March 31, 2019 . Economic (Non-Designated) Hedges We enter into foreign currency contracts to manage our foreign exchange exposure related to sales transactions, 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, net. We recorded an $8 million expense and $9 million income in the nine months ended March 31, 2019 and 2018 , respectively. The principal currencies managed through foreign currency contracts are the Euro, Canadian dollar, British pound, Japanese yen, and Chinese renminbi. Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade receivables, accounts payable and other accrued liabilities at March 31, 2019 and June 30, 2018 approximate fair value due to their short-term maturities. The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: (in millions) March 31, 2019 June 30, 2018 Estimated fair value $ 8,925 $ 8,852 Carrying amount 9,080 9,013 The fair value of our long-term obligations and other short-term borrowings is estimated based on either the quoted market prices for the same or similar issues or other inputs derived from available market information, which represents a Level 2 measurement. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 11. Shareholders' Equity During the nine months ended March 31, 2019 , we repurchased 11.5 million common shares having an aggregate cost of $600 million . The average price paid per common share was $52.32 . These repurchases were made under an accelerated share repurchase ("ASR") program, which began on August 16, 2018 and was completed on October 25, 2018. During the nine months ended March 31, 2018 , we repurchased 6.5 million common shares having an aggregate cost of $450 million . The average price paid per common share was $68.81 . These repurchases include $300 million purchased under an ASR program, which began on February 14, 2018 and was completed on March 21, 2018. We repurchased 4.3 million shares under the ASR at an average price paid per share of $69.26 . We funded the repurchases with available cash and short-term borrowings. The common shares repurchased are held in treasury to be used for general corporate purposes. Accumulated Other Comprehensive Loss The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions) Foreign Currency Translation Adjustments Unrealized Gain/(Loss) on Derivatives, net of tax Accumulated Other Comprehensive Income/(Loss) Balance at June 30, 2018 $ (113 ) $ 21 $ (92 ) Other comprehensive income/(loss), before reclassifications (16 ) — (16 ) Amounts reclassified to earnings — (3 ) (3 ) Other comprehensive income/(loss), net of tax (16 ) (3 ) (19 ) Balance at March 31, 2019 $ (129 ) $ 18 $ (111 ) |
Earnings Per Share Attributable
Earnings Per Share Attributable to Cardinal Health, Inc. | 9 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Cardinal Health, Inc. | 12. Earnings Per Share Attributable to Cardinal Health, Inc. The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to Cardinal Health, Inc.: Three Months Ended March 31, (in millions) 2019 2018 Weighted-average common shares–basic 298 313 Effect of dilutive securities: Employee stock options, restricted share units and performance share units 1 2 Weighted-average common shares–diluted 299 315 Nine Months Ended March 31, (in millions) 2019 2018 Weighted-average common shares–basic 301 314 Effect of dilutive securities: Employee stock options, restricted share units and performance share units 1 2 Weighted-average common shares–diluted 302 316 The potentially dilutive employee stock options, restricted share units and performance share units that were antidilutive were 6 million and 5 million for the three months ended March 31, 2019 and 2018 , respectively, and 6 million and 5 million for the nine months ended March 31, 2019 and 2018 , respectively. |
Segment Information
Segment Information | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 13. 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 performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities. Revenue Our Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; provides pharmacy management services to hospitals as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers; and repackages generic pharmaceuticals and over-the-counter healthcare products. Our Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. In addition to distributing Cardinal Health branded products, this segment also distributes a broad range of national brand products and provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. The following table presents revenue for each reportable segment and Corporate: Three Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 31,361 $ 29,720 Medical 3,871 3,916 Total segment revenue 35,232 33,636 Corporate (1) (4 ) (3 ) Total revenue $ 35,228 $ 33,633 Nine Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 96,516 $ 89,786 Medical 11,678 11,684 Total segment revenue 108,194 101,470 Corporate (1) (13 ) (10 ) Total revenue $ 108,181 $ 101,460 (1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents disaggregated revenue within our two reportable segments: Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in millions) Pharmaceutical distribution and specialty $ 31,146 $ 95,888 Nuclear and Precision Health Solutions (1) 215 628 Pharmaceutical segment revenue 31,361 96,516 Medical distribution and products (2) 3,431 10,339 Cardinal Health At Home 440 1,339 Medical segment revenue 3,871 11,678 Total segment revenue 35,232 108,194 Corporate (3) (4 ) (13 ) Total revenue $ 35,228 $ 108,181 (1) Our Nuclear and Precision Health Solutions division was formerly referred to as our Nuclear Pharmacy Services division. (2) Comprised of all Medical segment businesses except for Cardinal Health At Home division. (3) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents revenue by geographic area: Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in millions) United States $ 34,230 $ 105,190 International 1,002 3,004 Total segment revenue 35,232 108,194 Corporate (1) (4 ) (13 ) Total revenue $ 35,228 $ 108,181 (1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. Segment Profit We evaluate segment performance based on 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, legal and compliance. Corporate expenses are allocated to the segments based on headcount, level of benefit provided and other ratable allocation methodologies. The results attributable to noncontrolling interests are recorded within segment profit. We do not allocate the following items to our segments: last-in first-out, or ("LIFO"), inventory charges/(credits); restructuring and employee severance; amortization and other acquisition-related costs; impairments and (gain)/loss on disposal of assets; litigation (recoveries)/charges, net; other (income)/expense, net; interest expense, net; loss on extinguishment of debt; and provision for/(benefit from) income taxes. In addition, certain investment spending, certain portions of enterprise-wide incentive compensation 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. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $17 million and $7 million for the three months ended March 31, 2019 and 2018 , respectively, and $36 million and $17 million for the nine months ended March 31, 2019 and 2018 , respectively. In connection with the naviHealth divestiture discussed in Note 2 , we recognized a pre-tax gain of $508 million during the nine months ended March 31, 2019 , which was retained at Corporate. The following table presents segment profit by reportable segment and Corporate: Three Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 536 $ 596 Medical 155 199 Total segment profit 691 795 Corporate (259 ) (249 ) Total operating earnings $ 432 $ 546 Nine Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 1,388 $ 1,576 Medical 479 548 Total segment profit 1,867 2,124 Corporate (115 ) (918 ) Total operating earnings $ 1,752 $ 1,206 The following table presents total assets for each reportable segment and Corporate at: (in millions) March 31, June 30, Pharmaceutical $ 21,426 $ 21,421 Medical 15,548 16,066 Corporate 3,835 2,464 Total assets $ 40,809 $ 39,951 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 14. Share-Based Compensation We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. The following table provides total share-based compensation expense by type of award: Three Months Ended March 31, (in millions) 2019 2018 Restricted share unit expense $ 17 $ 20 Employee stock option expense 2 7 Performance share unit expense 4 (4 ) Total share-based compensation $ 23 $ 24 The sum of the components may not equal the total due to rounding. Nine Months Ended March 31, (in millions) 2019 2018 Restricted share unit expense $ 47 $ 56 Employee stock option expense 8 17 Performance share unit expense 9 (9 ) Total share-based compensation $ 64 $ 64 The total tax benefit related to share-based compensation was $4 million and $8 million for the three months ended March 31, 2019 and 2018 , respectively, and $13 million and $20 million for the nine months ended March 31, 2019 and 2018 , respectively. Restricted Share Units Restricted share units granted under the Plans generally vest in equal annual installments over three years . Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts) Restricted Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2018 2 $ 71.58 Granted 2 50.50 Vested (1 ) 74.99 Canceled and forfeited — — Nonvested at March 31, 2019 3 $ 52.08 At March 31, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $89 million , which is expected to be recognized over a weighted-average period of two years . Stock Options Employee stock options granted under the Plans generally vest in equal annual installments over three years and are exercisable for 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 Options Weighted-Average Exercise Price per Common Share Outstanding at June 30, 2018 7 $ 64.50 Granted — — Exercised — — Canceled and forfeited — — Outstanding at March 31, 2019 7 $ 63.92 Exercisable at March 31, 2019 6 $ 62.81 At March 31, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $7 million , which is expected to be recognized over a weighted-average period of one year . The following tables provide additional detail related to stock options: (in millions) March 31, 2019 June 30, 2018 Aggregate intrinsic value of outstanding options at period end $ 12 $ 13 Aggregate intrinsic value of exercisable options at period end 12 13 (in years) March 31, 2019 June 30, 2018 Weighted-average remaining contractual life of outstanding options 6 7 Weighted-average remaining contractual life of exercisable options 5 5 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 Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2018 0.4 $ 66.13 Granted 0.5 50.96 Vested (1) (0.1 ) 84.27 Canceled and forfeited (0.1 ) 51.75 Nonvested at March 31, 2019 0.7 $ 51.30 (1) No payout was made because the threshold performance goal was not met. At March 31, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $21 million , which is expected to be recognized over a weighted-average period of two years if targets are achieved. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. References to "we," "our," and similar pronouns in these condensed consolidated financial statements refer to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries unless the context requires otherwise. Our fiscal year ends on June 30. References to fiscal 2019 and 2018 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2019 and June 30, 2018 , respectively. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. To conform to the current year presentation, certain prior year amounts have been reclassified. In addition, financial results presented for this fiscal 2019 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2019 . These condensed consolidated financial statements are unaudited and, accordingly, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 (the " 2018 Form 10-K"). |
Recent Financial Accounting Standards | Recent Financial Accounting Standards In October 2018, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to derivatives and hedging which permits the use of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") as a Benchmark Interest Rate for Hedge Accounting Purposes. This guidance will be effective for us in the first quarter of fiscal 2020 and must be applied on a prospective basis. The impact of adoption on our condensed consolidated financial statements is contingent upon future events. In March 2018, the FASB issued amended accounting guidance to codify SEC staff accounting bulletin 118 (“SAB 118”), which was issued in connection with the Tax Cuts and Jobs Act (the “Tax Act”) of December 2017. The guidance allows companies to use provisional estimates to record the effects of the Tax Act and also provides a measurement period (not to exceed one year from the date of enactment) to complete the accounting for the impacts of the Tax Act. We adopted this guidance in the second quarter of fiscal 2018 when it was initially issued as SAB 118. We completed our accounting for the impacts from enactment of the Tax Act during the three months ended December 31, 2018. Future adjustments to the financial statements may be necessary as final tax regulations and any additional pending regulatory changes are issued, the impacts of which are being currently assessed, or will be assessed, as final regulations are issued. See Note 7 for additional information regarding income taxes. In June 2016, the FASB issued amended accounting guidance that will require entities to measure credit losses on trade and other receivables, held-to-maturity debt securities, loans and other instruments using an "expected credit loss" model that considers historical experience, current conditions and reasonable supportable forecasts. This guidance also requires that credit losses on available-for-sale debt securities with unrealized losses be recognized as allowances rather than as deductions in the amortized cost of the securities. This guidance will be effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of adoption on our condensed consolidated financial statements. Leases In February 2016, the FASB issued amended accounting guidance that requires lessees to recognize most leases on the balance sheet as a lease liability and corresponding right-of-use asset. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing and uncertainty of cash flows arising from leases. We will adopt this guidance when it is effective for us in the first quarter of fiscal 2020 and we expect to elect the transition option which will allow us to not apply the amended lease accounting guidance to comparative periods that will be presented. We are continuing to evaluate the impact of this standard on our condensed consolidated financial statements, including identification of embedded leases and performing lease contract reviews. The majority of our lease spend relates to certain real estate with the remaining lease spend primarily related to equipment. Although we are continuing to assess the impact of the amended guidance, we generally anticipate that the adoption of the amended lease guidance will result in an increase to the assets and liabilities on our condensed consolidated balance sheets and will require certain changes to our systems and processes. Revenue Recognition In May 2014, the FASB issued amended accounting guidance related to revenue recognition which we adopted in the first quarter of fiscal 2019 using the modified retrospective method and that we applied to customer contracts that were not completed as of June 30, 2018. The adoption of the amended accounting guidance did not have a material impact on our condensed consolidated financial statements. We did not record any material contract assets, contract liabilities, or deferred contract costs in our condensed consolidated balance sheets upon adopting the amended accounting guidance. Assets recorded for the right to recover products from customers and the associated refund liabilities for return allowances were not material. We elected the practical expedient to expense costs to obtain a contract when incurred when the amortization period would have been one year or less. Additionally, we elected the practical expedients to not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less, contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed and for contracts for which the variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. See Note 13 for additional information regarding our disaggregation of revenue. Revenue in both segments is primarily related to the distribution of pharmaceutical and medical products, which we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise. Service revenues are recognized over the period that services are provided to the customer. Revenues derived from services are not material for either segment for all periods presented. We are generally the principal in a transaction, therefore our revenue is primarily recorded on a gross basis. When we are a principal in a transaction, we have determined that we control the ability to direct the use of the product or service prior to transfer to a customer, are primarily responsible for fulfilling the promise to provide the product or service to our customer, have discretion in establishing prices, and ultimately control the transfer of the product or services provided to the customer. Revenue is recorded net of sales returns and allowances. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts, rebates and other variable consideration. Sales returns are recorded based on estimates using historical data. Shipping and handling costs are primarily included in distribution, selling, general and administrative ("SG&A") expenses in our condensed consolidated statements of earnings and include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs incurred after control has transferred to the customer are treated as fulfillment costs. In the first quarter of fiscal 2019, we adopted the following Accounting Standards Updates ("ASU"). ASU 2016-01 Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities; ASU 2018-03 Technical Corrections and Improvements to Financial Instruments; ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments; ASU 2016-16 Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory; and ASU 2017-12 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The adoption of these ASU's did not have a material impact on our condensed consolidated financial statements. |
Restructuring and Employee Se_2
Restructuring and Employee Severance (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Restructuring Charges [Abstract] | |
Summary of Restructuring and Employee Severance | The following table summarizes restructuring and employee severance costs: Three Months Ended March 31, (in millions) 2019 2018 Employee-related costs (1) $ 29 $ (1 ) Facility exit and other costs (2) 24 3 Total restructuring and employee severance $ 53 $ 2 Nine Months Ended March 31, (in millions) 2019 2018 Employee-related costs (1) $ 70 $ 18 Facility exit and other costs (2) 27 137 Total restructuring and employee severance $ 97 $ 155 (1) Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. (2) Facility exit and other costs primarily consist of product distribution and lease contract termination costs, lease costs associated with vacant facilities, accelerated depreciation, equipment relocation costs, project consulting fees, costs associated with restructuring our delivery of information technology infrastructure services and certain other divestiture-related costs. |
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- Related Costs Facility Exit and Other Costs Total Balance at June 30, 2018 $ 24 $ 4 $ 28 Additions 60 14 74 Payments and other adjustments (32 ) (2 ) (34 ) Balance at March 31, 2019 $ 52 $ 16 $ 68 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Segment | The following table summarizes the changes in the carrying amount of goodwill by segment and in total: (in millions) Pharmaceutical Medical Total Balance at June 30, 2018 $ 2,621 $ 5,695 $ 8,316 Goodwill acquired, net of purchase price adjustments 19 7 26 Foreign currency translation adjustments and other (3 ) (9 ) (12 ) Balance at March 31, 2019 $ 2,637 $ 5,693 $ 8,330 |
Schedule of Finite-Lived Intangible Assets | The following tables summarize other intangible assets by class at: March 31, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: IPR&D, trademarks and other $ 59 $ — $ 59 N/A Total indefinite-life intangibles 59 — 59 N/A Definite-life intangibles: Customer relationships 3,528 1,432 2,096 14 Trademarks, trade names and patents 669 283 386 14 Developed technology and other 1,563 574 989 12 Total definite-life intangibles 5,760 2,289 3,471 14 Total other intangible assets $ 5,819 $ 2,289 $ 3,530 N/A June 30, 2018 (in millions) Gross Intangible Accumulated Amortization Net Intangible Indefinite-life intangibles: IPR&D, trademarks and other $ 62 $ — $ 62 Total indefinite-life intangibles 62 — 62 Definite-life intangibles: Customer relationships 3,513 1,191 2,322 Trademarks, trade names and patents 667 246 421 Developed technology and other 1,562 454 1,108 Total definite-life intangibles 5,742 1,891 3,851 Total other intangible assets $ 5,804 $ 1,891 $ 3,913 |
Schedule of Indefinite-Lived Intangible Assets | The following tables summarize other intangible assets by class at: March 31, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: IPR&D, trademarks and other $ 59 $ — $ 59 N/A Total indefinite-life intangibles 59 — 59 N/A Definite-life intangibles: Customer relationships 3,528 1,432 2,096 14 Trademarks, trade names and patents 669 283 386 14 Developed technology and other 1,563 574 989 12 Total definite-life intangibles 5,760 2,289 3,471 14 Total other intangible assets $ 5,819 $ 2,289 $ 3,530 N/A June 30, 2018 (in millions) Gross Intangible Accumulated Amortization Net Intangible Indefinite-life intangibles: IPR&D, trademarks and other $ 62 $ — $ 62 Total indefinite-life intangibles 62 — 62 Definite-life intangibles: Customer relationships 3,513 1,191 2,322 Trademarks, trade names and patents 667 246 421 Developed technology and other 1,562 454 1,108 Total definite-life intangibles 5,742 1,891 3,851 Total other intangible assets $ 5,804 $ 1,891 $ 3,913 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair values for assets and (liabilities) measured on a recurring basis at: March 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 875 $ — $ — $ 875 Other investments (1) 112 — — 112 Liabilities: Forward contracts (2) — 5 — 5 June 30, 2018 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 200 $ — $ — $ 200 Other investments (1) 117 — — 117 Liabilities: Forward contracts (2) — (76 ) — (76 ) (1) The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. (2) The fair value of interest rate swaps, foreign currency contracts, net investment hedges and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in the condensed consolidated balance sheets. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Estimated Fair Value of Long-term Obligations and Other Short-term Borrowings Compared to the Respective Carrying Amount | The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: (in millions) March 31, 2019 June 30, 2018 Estimated fair value $ 8,925 $ 8,852 Carrying amount 9,080 9,013 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in the Balance of Accumulated Other Comprehensive Loss by Component and in Total | Accumulated Other Comprehensive Loss The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions) Foreign Currency Translation Adjustments Unrealized Gain/(Loss) on Derivatives, net of tax Accumulated Other Comprehensive Income/(Loss) Balance at June 30, 2018 $ (113 ) $ 21 $ (92 ) Other comprehensive income/(loss), before reclassifications (16 ) — (16 ) Amounts reclassified to earnings — (3 ) (3 ) Other comprehensive income/(loss), net of tax (16 ) (3 ) (19 ) Balance at March 31, 2019 $ (129 ) $ 18 $ (111 ) |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Cardinal Health, Inc. (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
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 attributable to Cardinal Health, Inc.: Three Months Ended March 31, (in millions) 2019 2018 Weighted-average common shares–basic 298 313 Effect of dilutive securities: Employee stock options, restricted share units and performance share units 1 2 Weighted-average common shares–diluted 299 315 Nine Months Ended March 31, (in millions) 2019 2018 Weighted-average common shares–basic 301 314 Effect of dilutive securities: Employee stock options, restricted share units and performance share units 1 2 Weighted-average common shares–diluted 302 316 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue by Reportable Segment | The following table presents revenue for each reportable segment and Corporate: Three Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 31,361 $ 29,720 Medical 3,871 3,916 Total segment revenue 35,232 33,636 Corporate (1) (4 ) (3 ) Total revenue $ 35,228 $ 33,633 Nine Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 96,516 $ 89,786 Medical 11,678 11,684 Total segment revenue 108,194 101,470 Corporate (1) (13 ) (10 ) Total revenue $ 108,181 $ 101,460 (1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. |
Disaggregation of Revenue [Table Text Block] | The following table presents disaggregated revenue within our two reportable segments: Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in millions) Pharmaceutical distribution and specialty $ 31,146 $ 95,888 Nuclear and Precision Health Solutions (1) 215 628 Pharmaceutical segment revenue 31,361 96,516 Medical distribution and products (2) 3,431 10,339 Cardinal Health At Home 440 1,339 Medical segment revenue 3,871 11,678 Total segment revenue 35,232 108,194 Corporate (3) (4 ) (13 ) Total revenue $ 35,228 $ 108,181 (1) Our Nuclear and Precision Health Solutions division was formerly referred to as our Nuclear Pharmacy Services division. (2) Comprised of all Medical segment businesses except for Cardinal Health At Home division. (3) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents revenue by geographic area: Three Months Ended March 31, 2019 Nine Months Ended March 31, 2019 (in millions) United States $ 34,230 $ 105,190 International 1,002 3,004 Total segment revenue 35,232 108,194 Corporate (1) (4 ) (13 ) Total revenue $ 35,228 $ 108,181 (1) 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: Three Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 536 $ 596 Medical 155 199 Total segment profit 691 795 Corporate (259 ) (249 ) Total operating earnings $ 432 $ 546 Nine Months Ended March 31, (in millions) 2019 2018 Pharmaceutical $ 1,388 $ 1,576 Medical 479 548 Total segment profit 1,867 2,124 Corporate (115 ) (918 ) Total operating earnings $ 1,752 $ 1,206 |
Assets by Reportable Segment | The following table presents total assets for each reportable segment and Corporate at: (in millions) March 31, June 30, Pharmaceutical $ 21,426 $ 21,421 Medical 15,548 16,066 Corporate 3,835 2,464 Total assets $ 40,809 $ 39,951 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Total Share-based Compensation Expense by Type of Award | The following table provides total share-based compensation expense by type of award: Three Months Ended March 31, (in millions) 2019 2018 Restricted share unit expense $ 17 $ 20 Employee stock option expense 2 7 Performance share unit expense 4 (4 ) Total share-based compensation $ 23 $ 24 The sum of the components may not equal the total due to rounding. Nine Months Ended March 31, (in millions) 2019 2018 Restricted share unit expense $ 47 $ 56 Employee stock option expense 8 17 Performance share unit expense 9 (9 ) Total share-based compensation $ 64 $ 64 |
Schedule of Stock Option Transactions Under the Plans | The following table summarizes all stock option transactions under the Plans: (in millions, except per share amounts) Stock Options Weighted-Average Exercise Price per Common Share Outstanding at June 30, 2018 7 $ 64.50 Granted — — Exercised — — Canceled and forfeited — — Outstanding at March 31, 2019 7 $ 63.92 Exercisable at March 31, 2019 6 $ 62.81 |
Schedule of Additional Data Related to Stock Option Activity | The following tables provide additional detail related to stock options: (in millions) March 31, 2019 June 30, 2018 Aggregate intrinsic value of outstanding options at period end $ 12 $ 13 Aggregate intrinsic value of exercisable options at period end 12 13 (in years) March 31, 2019 June 30, 2018 Weighted-average remaining contractual life of outstanding options 6 7 Weighted-average remaining contractual life of exercisable options 5 5 |
Schedule of Transactions Related to Restricted Share Units Under the Plans | The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts) Restricted Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2018 2 $ 71.58 Granted 2 50.50 Vested (1 ) 74.99 Canceled and forfeited — — Nonvested at March 31, 2019 3 $ 52.08 |
Schedule of Transactions Related to Performance Share Units Under the Plans | 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 Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2018 0.4 $ 66.13 Granted 0.5 50.96 Vested (1) (0.1 ) 84.27 Canceled and forfeited (0.1 ) 51.75 Nonvested at March 31, 2019 0.7 $ 51.30 (1) No payout was made because the threshold performance goal was not met. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | Aug. 01, 2018 | Jul. 29, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 |
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | $ 38 | $ 6,142 | |||||
Goodwill | $ 8,330 | 8,330 | $ 8,316 | ||||
Patient Recovery Business | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | $ 6,100 | ||||||
Transaction and integration costs | 17 | $ 25 | 62 | $ 85 | |||
Goodwill | 3,300 | 3,300 | |||||
naviHealth [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Equity Method Investments | $ 358 | $ 339 | 339 | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 98.00% | ||||||
Proceeds from Divestiture of Businesses | $ 737 | ||||||
Pre-Tax Gain on Divestiture | 508 | ||||||
Redeemable Non Controlling Interest Divested | $ 12 | ||||||
Tax Expense From Divestiture of a Business | $ 130 |
Restructuring and Employee Se_3
Restructuring and Employee Severance (Activity Related to Restructuring and Employee Severance Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Employee-related costs | $ 29 | $ (1) | $ 70 | $ 18 |
Facility Exit and Other Costs | 24 | 3 | 27 | 137 |
Total restructuring and employee severance | $ 53 | $ 2 | $ 97 | $ 155 |
Restructuring and Employee Se_4
Restructuring and Employee Severance (Liabilities Associated with Restructuring and Employee Severance Activities) (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 28 |
Additions | 74 |
Payments and other adjustments | (34) |
Ending Balance | 68 |
Employee- Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 24 |
Additions | 60 |
Payments and other adjustments | (32) |
Ending Balance | 52 |
Facility Exit and Other Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 4 |
Additions | 14 |
Payments and other adjustments | (2) |
Ending Balance | $ 16 |
Restructuring and Employee Se_5
Restructuring and Employee Severance Narative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 29 | $ (1) | $ 70 | $ 18 |
Facility Exit and Other Costs | 24 | $ 3 | 27 | $ 137 |
Medline | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Facility Exit and Other Costs | 125 | |||
Enterprise Wide Cost Saving Measures [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 27 | $ 60 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Reportable Segment) (Details) $ in Millions | 9 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 8,316 |
Goodwill acquired, net of purchase price adjustments | 26 |
Foreign currency translation adjustments and other | 12 |
Ending balance | 8,330 |
Pharmaceutical | |
Goodwill [Roll Forward] | |
Beginning balance | 2,621 |
Goodwill acquired, net of purchase price adjustments | 19 |
Foreign currency translation adjustments and other | 3 |
Ending balance | 2,637 |
Medical | |
Goodwill [Roll Forward] | |
Beginning balance | 5,695 |
Goodwill acquired, net of purchase price adjustments | 7 |
Foreign currency translation adjustments and other | 9 |
Ending balance | $ 5,693 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | $ 59 | $ 62 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 5,760 | 5,742 |
Accumulated Amortization | 2,289 | 1,891 |
Net Intangible | $ 3,471 | 3,851 |
Weighted- Average Remaining Amortization Period (Years) | 14 years | |
Gross Intangible, Total other intangible assets | $ 5,819 | 5,804 |
Net Intangible, Total other intangible assets | 3,530 | 3,913 |
IPR&D, trademarks and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | 59 | 62 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 3,528 | 3,513 |
Accumulated Amortization | 1,432 | 1,191 |
Net Intangible | $ 2,096 | 2,322 |
Weighted- Average Remaining Amortization Period (Years) | 14 years | |
Trademarks, trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 669 | 667 |
Accumulated Amortization | 283 | 246 |
Net Intangible | $ 386 | 421 |
Weighted- Average Remaining Amortization Period (Years) | 14 years | |
Developed technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 1,563 | 1,562 |
Accumulated Amortization | 574 | 454 |
Net Intangible | $ 989 | $ 1,108 |
Weighted- Average Remaining Amortization Period (Years) | 12 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 133 | $ 148 | $ 399 | $ 435 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 133 | 133 | ||
Estimated annual amortization of intangible assets - Year Two | 504 | 504 | ||
Estimated annual amortization of intangible assets - Year Three | 436 | 436 | ||
Estimated annual amortization of intangible assets - Year Four | 401 | 401 | ||
Estimated annual amortization of intangible assets - Year Five | $ 351 | $ 351 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - naviHealth [Member] - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2019 | Aug. 01, 2018 | |
Investment [Line Items] | ||
Equity Method Investments | $ 339 | $ 358 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 14 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Carrying amount | $ 9,080 | $ 9,013 |
Accounts payable | 20,517 | $ 19,677 |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |
Short Term Credit Facilities Member | Committed Receivables Sales Facility Program [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Income Taxes | |||||
Remeasurement Deferred Tax Assets and Liabilities expense (benefit) | $ (18) | $ (952) | |||
Foreign income, transition tax | $ 41 | ||||
Unrecognized tax benefits | $ 436 | $ 436 | $ 423 | ||
Unrecognized tax benefits that would impact effective tax rate | 275 | 275 | 262 | ||
Unrecognized tax benefits, interest and penalties accrued | $ 116 | $ 116 | 110 | ||
Effective Income Tax Rate Reconciliation, Percent | 20.00% | 45.10% | 22.60% | (48.60%) | |
Net Discrete Tax Benefit (Expense) | $ 12 | $ (18) | $ 50 | $ (12) | |
Minimum | |||||
Income Taxes | |||||
Estimated range of decrease in unrecognized tax benefits within the next 12 months | 0 | 0 | |||
Maximum | |||||
Income Taxes | |||||
Estimated range of decrease in unrecognized tax benefits within the next 12 months | 20 | 20 | |||
Patient Recovery Business | |||||
Income Taxes | |||||
Indemnification Receivable | 24 | 24 | 21 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||
Income Taxes | |||||
Disposal Group, Including Discontinued Operation, Provisional Tax Expense | $ 57 | ||||
CareFusion [Member] | |||||
Income Taxes | |||||
Indemnification Receivable | $ 159 | $ 159 | $ 151 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Litigation (Details) $ in Millions | May 03, 2019plaintifflawsuit | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($) |
Loss Contingencies [Line Items] | ||||
Opioid Stewardship Act Loss Contingency Accrual | $ 34 | |||
Income from Settlements of Class Action Lawsuits | $ 46 | $ 94 | ||
Product Liability Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | lawsuit | 22 | |||
CVS Health | ||||
Loss Contingencies [Line Items] | ||||
Maximum quarterly payment | 45.6 | |||
Opioid Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | lawsuit | 2,000 | |||
Product Liability Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | lawsuit | 237 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual, Net of Insurance Recoveries | 359 | 359 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual, Net of Insurance Recoveries | $ 729 | $ 729 | ||
Alameda County [Member] | Product Liability Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 2,797 | |||
Other Jurisdictions [Member] | Product Liability Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | plaintiff | 24 | |||
Class Action Lawsuits [Member] | Opioid Lawsuits | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits filed | lawsuit | 63 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Recurring Basis) (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Assets: | ||
Cash equivalents | $ 875 | $ 200 |
Other investments | 112 | 117 |
Liabilities: | ||
Forward contracts | 5 | (76) |
Level 1 | ||
Assets: | ||
Cash equivalents | 875 | 200 |
Other investments | 112 | 117 |
Liabilities: | ||
Forward contracts | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Other investments | 0 | 0 |
Liabilities: | ||
Forward contracts | 5 | (76) |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Other investments | 0 | 0 |
Liabilities: | ||
Forward contracts | $ 0 | $ 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019EUR (€) | |
Derivative [Line Items] | |||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0 | $ 0 | $ 0 | $ 0 | |
Currency Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative Liability, Notional Amount | € | € 200 | ||||
Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 650 | 650 | |||
Other Nonoperating Income (Expense) [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | |||||
Derivative [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 8 | $ 9 |
Financial Instruments Summary o
Financial Instruments Summary of Estimated Fair Value of Long-term Obligations and Other Short-term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | $ 9,080 | $ 9,013 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value | $ 8,925 | $ 8,852 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 21, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Class of Stock [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 600 | $ 450 | ||
Treasury Shares | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | (4) | (11.5) | (6.5) | |
Treasury shares acquired, average price per share (in usd per share) | $ 52.32 | $ 68.81 | ||
accelerated share repurchase plan [Member] | Treasury Shares | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | (4.3) | |||
Payments for Repurchase of Common Stock | $ 300 | |||
Treasury shares acquired, average price per share (in usd per share) | $ 69.26 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in the Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 6,043 | $ 7,619 | $ 6,059 | $ 6,828 |
Total other comprehensive income/(loss), net of tax | 90 | (19) | 120 | |
Balance at end of period | 6,232 | $ 7,538 | 6,232 | $ 7,538 |
Foreign Currency Translation Adjustments | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (113) | |||
Other comprehensive income/(loss), before reclassifications | (16) | |||
Amounts reclassified to earnings | 0 | |||
Total other comprehensive income/(loss), net of tax | (16) | |||
Balance at end of period | (129) | (129) | ||
Unrealized Gain/(Loss) on Derivatives, net of tax | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 21 | |||
Other comprehensive income/(loss), before reclassifications | 0 | |||
Amounts reclassified to earnings | (3) | |||
Total other comprehensive income/(loss), net of tax | (3) | |||
Balance at end of period | 18 | 18 | ||
Accumulated Other Comprehensive Income/(Loss) | ||||
AOCI, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (92) | |||
Other comprehensive income/(loss), before reclassifications | (16) | |||
Amounts reclassified to earnings | (3) | |||
Total other comprehensive income/(loss), net of tax | (19) | |||
Balance at end of period | $ (111) | $ (111) |
Earnings Per Share Attributab_3
Earnings Per Share Attributable to Cardinal Health, Inc. (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Potentially dilutive employee stock options, restricted share units and performance share units that were antidilutive (in shares) | 6 | 5 | 6 | 5 |
Earnings Per Share Attributab_4
Earnings Per Share Attributable to Cardinal Health, Inc. (Reconciliation of Common Shares Used to Compute Basic and Diluted EPS) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted-average common shares–basic (in shares) | 298 | 313 | 301 | 314 |
Effect of dilutive securities: | ||||
Employee stock options, restricted share units, and performance share units (in shares) | 1 | 2 | 1 | 2 |
Weighted-average common shares–diluted (in shares) | 299 | 315 | 302 | 316 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 2 | |||
Number of reportable segments | 2 | |||
Project costs on investment and other spending | $ | $ 17 | $ 7 | $ 36 | $ 17 |
Segment Information (Revenue by
Segment Information (Revenue by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 35,228 | $ 33,633 | $ 108,181 | $ 101,460 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 35,232 | 33,636 | 108,194 | 101,470 |
Operating Segments | Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 31,361 | 29,720 | 96,516 | 89,786 |
Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,871 | 3,916 | 11,678 | 11,684 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (4) | $ (3) | (13) | $ (10) |
Pharmaceutical distribution and specialty [Member] | Operating Segments | Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 31,146 | 95,888 | ||
Nuclear Precision Health Services [Member] | Operating Segments | Pharmaceutical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 215 | 628 | ||
Medical distribution and products [Member] | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,431 | 10,339 | ||
Cardinal Health At Home [Member] | Operating Segments | Medical | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 440 | $ 1,339 |
Segment Information (Segment Pr
Segment Information (Segment Profit by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total operating earnings | $ 432 | $ 546 | $ 1,752 | $ 1,206 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total operating earnings | 691 | 795 | 1,867 | 2,124 |
Operating Segments | Pharmaceutical | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total operating earnings | 536 | 596 | 1,388 | 1,576 |
Operating Segments | Medical | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total operating earnings | 155 | 199 | 479 | 548 |
Corporate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total operating earnings | $ (259) | $ (249) | $ (115) | $ (918) |
Segment Information (Assets by
Segment Information (Assets by Reportable Segment) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jun. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 40,809 | $ 39,951 |
Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 21,426 | 21,421 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 15,548 | 16,066 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,835 | $ 2,464 |
Segment Information Revenue Fro
Segment Information Revenue From External Customers By Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Revenue from External Customers by Geographic Area [Line Items] | ||||
Revenue | $ 35,228 | $ 33,633 | $ 108,181 | $ 101,460 |
UNITED STATES | ||||
Segment Revenue from External Customers by Geographic Area [Line Items] | ||||
Revenue | 34,230 | 105,190 | ||
Non-US [Member] | ||||
Segment Revenue from External Customers by Geographic Area [Line Items] | ||||
Revenue | 1,002 | 3,004 | ||
Operating Segments | ||||
Segment Revenue from External Customers by Geographic Area [Line Items] | ||||
Revenue | 35,232 | 33,636 | 108,194 | 101,470 |
Corporate | ||||
Segment Revenue from External Customers by Geographic Area [Line Items] | ||||
Revenue | $ (4) | $ (3) | $ (13) | $ (10) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax benefit related to share-based compensation | $ 4 | $ 8 | $ 13 | $ 20 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 7 | $ 7 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||
Exercisable period of plans (in years) | 10 years | |||
Restricted Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 89 | $ 89 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 21 | $ 21 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||
Performance Share Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target performance goal (as a percent) | 0.00% | |||
Performance Share Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target performance goal (as a percent) | 200.00% |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Total Share-Based Compensation Expense by Type of Award) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 23 | $ 24 | $ 64 | $ 64 |
Restricted Share Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | 17 | 20 | 47 | 56 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | 2 | 7 | 8 | 17 |
Performance Share Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 4 | $ (4) | $ 9 | $ (9) |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of All Stock Option Transactions Under the Plans) (Details) shares in Millions | 9 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Stock Options | |
Outstanding at beginning of period (in shares) | shares | 7 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Canceled and forfeited (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 7 |
Exercisable at end of period (in shares) | shares | 6 |
Weighted-Average Exercise Price per Common Share | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 64.50 |
Granted (in usd per share) | $ / shares | 0 |
Exercised (in usd per share) | $ / shares | 0 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Outstanding at end of period (in usd per share) | $ / shares | 63.92 |
Exercisable at end of period (in usd per share) | $ / shares | $ 62.81 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Additional Data Related to Stock Options) (Details) - Stock Options - USD ($) $ in Millions | 9 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7 | ||
Aggregate intrinsic value of outstanding options at period end | 12 | $ 13 | |
Aggregate intrinsic value of exercisable options at period end | $ 12 | $ 13 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years | 7 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | 5 years |
Share-Based Compensation (Sch_4
Share-Based Compensation (Schedule of All Transactions Related to Restricted Share Units Under the Plans) (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 89 |
Restricted Share Units | |
Nonvested at beginning of period (in shares) | shares | 2 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (1) |
Canceled and forfeited (in shares) | shares | 0 |
Nonvested at end of period (in shares) | shares | 3 |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 71.58 |
Granted (in usd per share) | $ / shares | 50.50 |
Vested (in usd per share) | $ / shares | 74.99 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Nonvested at end of period (in usd per share) | $ / shares | $ 52.08 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 7 |
Share-Based Compensation (Sch_5
Share-Based Compensation (Schedule of All Transactions Related to Performance Share Units Under the Plans) (Details) - Performance Share Units $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Performance Share Units | |
Nonvested at beginning of period (in shares) | shares | 0.4 |
Granted (in shares) | shares | 0.5 |
Vested (in shares) | shares | (0.1) |
Canceled and forfeited (in shares) | shares | (0.1) |
Nonvested at end of period (in shares) | shares | 0.7 |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 66.13 |
Granted (in usd per share) | $ / shares | 50.96 |
Vested (in usd per share) | $ / shares | 84.27 |
Canceled and forfeited (in usd per share) | $ / shares | 51.75 |
Nonvested at end of period (in usd per share) | $ / shares | $ 51.30 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 21 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Award vesting period (in years) | 3 years |