Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-11373 | |
Entity Registrant Name | Cardinal Health, Inc. | |
Entity Central Index Key | 0000721371 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0958666 | |
Entity Address, Address Line One | 7000 Cardinal Place | |
Entity Address, City or Town | Dublin | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43017 | |
City Area Code | 614 | |
Local Phone Number | 757-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common shares (without par value) | |
Trading Symbol | CAH | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 281,788,002 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 43,968 | $ 39,065 |
Cost of Goods and Services Sold | 42,326 | 37,350 |
Gross margin | 1,642 | 1,715 |
Operating expenses: | ||
Distribution, selling, general and administrative expenses | 1,114 | 1,137 |
Restructuring and employee severance | 18 | 37 |
Amortization and other acquisition-related costs | 79 | 118 |
Impairments and (gain)/loss on disposal of assets, net | (2) | 9 |
Litigation (recoveries)/charges, net | 18 | 1,038 |
Operating earnings/(loss) | 415 | (624) |
Other (income)/expense, net | (4) | (7) |
Interest expense, net | 40 | 45 |
Loss on early extinguishment of debt | 1 | |
Loss on Early Extinguishment of Debt | 10 | 0 |
Earnings/(loss) before income taxes | 369 | (663) |
Income Tax Expense (Benefit) | 97 | (410) |
Net earnings/(loss) | 272 | (253) |
Less: Net earnings attributable to noncontrolling interests | (1) | 0 |
Net earnings/(loss) attributable to Cardinal Health, Inc. | $ 271 | $ (253) |
Earnings/(loss) per common share attributable to Cardinal Health, Inc.: | ||
Basic (in shares) | $ 0.94 | $ (0.86) |
Diluted (in shares) | $ 0.94 | $ (0.86) |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 287 | 293 |
Diluted (in shares) | 289 | 293 |
Cash dividends declared per common share | $ 0.4908 | $ 0.4859 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings/(loss) | $ 272 | $ (253) |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments and other | (25) | 12 |
Net unrealized gain/(loss) on derivative instruments, net of tax | (2) | 5 |
Total other comprehensive income/(loss), net of tax | (27) | 17 |
Total comprehensive income/(loss) | 245 | (236) |
Less: comprehensive income attributable to noncontrolling interests | (1) | 0 |
Total comprehensive income attributable to Cardinal Health, Inc. | $ 244 | $ (236) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Current assets: | ||
Cash and equivalents | $ 2,463 | $ 3,407 |
Trade receivables, net | 9,305 | 9,103 |
Inventories, net | 14,720 | 14,594 |
Prepaid expenses and other | 3,243 | 2,843 |
Total assets held for sale | 0 | 1,101 |
Total current assets | 29,731 | 31,048 |
Property and equipment, net | 2,336 | 2,360 |
Goodwill and other intangibles, net | 10,005 | 10,094 |
Other Assets | 921 | 951 |
Total assets | 42,993 | 44,453 |
Current liabilities: | ||
Accounts Payable, Current | 23,408 | 23,700 |
Current portion of long-term obligations and other short-term borrowings | 301 | 871 |
Other accrued liabilities | 2,790 | 2,957 |
Disposal Group, Including Discontinued Operation, Liabilities | 0 | 96 |
Total current liabilities | 26,499 | 27,624 |
Long-term obligations, less current portion | 5,353 | 5,365 |
Deferred income taxes and other liabilities | $ 9,745 | $ 9,670 |
Preferred shares, without par value: | ||
Preferred Stock, Shares Authorized | 500 | 500 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Value, Issued | $ 0 | $ 0 |
Common shares, without par value: | ||
Common Stock, Shares Authorized | 755,000 | 755,000 |
Common Stock, Shares, Issued | 327,000 | 327,000 |
Common Stock, Value, Issued | $ 2,666 | $ 2,806 |
Retained earnings | 1,335 | 1,205 |
Treasury Stock, Value | $ (2,547) | $ (2,186) |
Treasury Stock, Shares | 43,000 | 36,000 |
Accumulated other comprehensive loss | $ (61) | $ (34) |
Total Cardinal Health, Inc. shareholders' equity | 1,393 | 1,791 |
Noncontrolling interests | 3 | 3 |
Total shareholders' equity | 1,396 | 1,794 |
Total liabilities and shareholders’ equity | $ 42,993 | $ 44,453 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Retained Earnings | Treasury Shares | AOCI Attributable to Parent | Noncontrolling Interest |
Balance at beginning of period (in shares) at Jun. 30, 2020 | 327,000 | |||||
Balance at beginning of period at Jun. 30, 2020 | $ (1,792) | $ (2,789) | $ (1,170) | $ 104 | $ (3) | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2020 | (35,000) | |||||
Treasury, balance at beginning of period at Jun. 30, 2020 | $ (2,066) | |||||
Statement of Stockholders' Equity | ||||||
Net Earnings/(Loss) | (253) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (253) | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 17 | 17 | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | 2,000 | ||||
Employee stock plans activity, net of shares withheld for employee taxes | (15) | $ (29) | $ (44) | |||
Payments for Repurchase of Common Stock | 0 | |||||
Dividends | 146 | 146 | ||||
Balance at end of period (in shares) at Sep. 30, 2020 | 327,000 | |||||
Balance at end of period at Sep. 30, 2020 | $ (1,425) | $ (2,760) | (771) | 87 | (3) | |
Treasury, balance at end of period (in shares) at Sep. 30, 2020 | (33,000) | |||||
Treasury, balance at end of period at Sep. 30, 2020 | $ (2,022) | |||||
Balance at beginning of period (in shares) at Jun. 30, 2021 | 327,000 | 327,000 | ||||
Balance at beginning of period at Jun. 30, 2021 | $ (1,794) | $ (2,806) | (1,205) | 34 | (3) | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2021 | (36,000) | (36,000) | ||||
Treasury, balance at beginning of period at Jun. 30, 2021 | $ (2,186) | $ (2,186) | ||||
Statement of Stockholders' Equity | ||||||
Net Earnings/(Loss) | 271 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 272 | 1 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (27) | (27) | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 0 | 1,000 | ||||
Employee stock plans activity, net of shares withheld for employee taxes | 1 | $ (40) | $ (39) | |||
Treasury Stock, Shares, Acquired | (8,000) | |||||
Payments for Repurchase of Common Stock | 500 | $ 100 | $ 400 | |||
Dividends | 141 | 141 | ||||
Stockholders' Equity, Other | $ (1) | (1) | ||||
Balance at end of period (in shares) at Sep. 30, 2021 | 327,000 | 327,000 | ||||
Balance at end of period at Sep. 30, 2021 | $ (1,396) | $ (2,666) | $ (1,335) | $ 61 | $ (3) | |
Treasury, balance at end of period (in shares) at Sep. 30, 2021 | (43,000) | (43,000) | ||||
Treasury, balance at end of period at Sep. 30, 2021 | $ (2,547) | $ (2,547) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net earnings/(loss) | $ 272 | $ (253) |
Adjustments to reconcile net earnings/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 168 | 205 |
Impairments and (gain)/loss on disposal of assets, net | (2) | 9 |
Loss on Early Extinguishment of Debt | 10 | 0 |
Share-based compensation | 24 | 28 |
Provision for bad debts | 12 | 16 |
Change in operating assets and liabilities, net of effects from acquisitions and divestitures: | ||
Increase in trade receivables | (214) | (388) |
Increase in inventories | (129) | (245) |
Increase/(decrease) in accounts payable | (292) | 313 |
Other accrued liabilities and operating items, net | (495) | 585 |
Net cash provided by/(used in) operating activities | (646) | 270 |
Cash flows from investing activities: | ||
Proceeds from divestitures and disposal of property and equipment and held for sale assets | 927 | 0 |
Additions to property and equipment | (67) | (78) |
Purchases of investments | (2) | (17) |
Proceeds from investments | 4 | 1 |
Net cash provided by/(used in) investing activities | 862 | (94) |
Cash flows from financing activities: | ||
Reduction of long-term obligations | (587) | (40) |
Net tax withholdings from share-based compensation | (28) | (12) |
Dividends on common shares | (149) | (146) |
Purchase of treasury shares | (500) | 0 |
Net cash used in financing activities | (1,264) | (198) |
Effect of exchange rate changes on cash and equivalents | (5) | (3) |
Cash Reclassified to Assets Held for Sale | 109 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | (944) | (25) |
Cash and equivalents at beginning of period | 3,407 | 2,771 |
Cash and equivalents at end of period | $ 2,463 | $ 2,746 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2021 | |
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. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. References to "we," "our," and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (this "Form 10-Q") 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 2022 and 2021 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2022 and June 30, 2021, 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. The COVID-19 pandemic ("COVID-19") continues to affect the U.S. and global economies, and as previously disclosed, the pandemic began to materially affect our businesses during the third quarter of fiscal 2020. The length and severity of the pandemic and its impacts on our businesses and results of operations are uncertain. 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. In addition, financial results presented for this fiscal 2022 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2022. 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, 2021 (the "2021 Form 10-K"). Recently Issued Financial Accounting Standards Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board ("FASB") on our condensed consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2021 Form 10-K. There were no accounting standards issued in fiscal 2022 that will have a material impact on our condensed consolidated financial statements. Recently Adopted Financial Accounting Standards There were no new material accounting standards adopted in the three months ended September 30, 2021. |
Divestitures
Divestitures | 3 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | 2. Divestitures In August 2021, we sold our Cordis business to Hellman & Friedman for proceeds of $927 million, net of cash transferred, and we retained certain working capital accounts and certain liabilities. The purchase price is subject to adjustments based on working capital requirements as set forth in the agreement. Cardinal Health will retain product liability associated with lawsuits and claims related to inferior vena cava ("IVC") filters in the U.S. and Canada, as well as authority for these matters discussed in Note 6 . The Cordis business operated within our Medical segment. |
Restructuring and Employee Seve
Restructuring and Employee Severance | 3 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring and Employee Severance | 3. Restructuring and Employee Severance The following table summarizes restructuring and employee severance costs: Three Months Ended September 30, (in millions) 2021 2020 Employee-related costs $ 8 $ 24 Facility exit and other costs 10 13 Total restructuring and employee severance $ 18 $ 37 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. Facility exit and other costs primarily consist of professional, project management and other service fees to support divestitures, vendor transition fees, accelerated depreciation, lease costs associated with vacant facilities, project consulting fees, and certain other divestiture-related costs. During the three months ended September 30, 2021 and 2020, restructuring costs primarily related to the implementation of certain enterprise-wide cost-savings measures. Restructuring costs during the three months ended September 30, 2021 also included costs related to the divestiture of the Cordis business. The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions) Employee- Facility Exit Total Balance at June 30, 2021 $ 53 $ 26 $ 79 Additions 8 1 9 Payments and other adjustments (12) (2) (14) Balance at September 30, 2021 $ 49 $ 25 $ 74 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | 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, 2021 $ 2,659 $ 5,330 $ 7,989 Goodwill acquired, net of purchase price adjustments — — — Foreign currency translation adjustments and other — (10) (10) Balance at September 30, 2021 $ 2,659 $ 5,320 $ 7,979 Other Intangible Assets The following tables summarize other intangible assets by class at: September 30, 2021 (in millions) Gross Accumulated Net Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: Trademarks and patents $ 12 $ — $ 12 N/A Total indefinite-life intangibles 12 — 12 N/A Definite-life intangibles: Customer relationships 3,325 2,039 1,286 11 Trademarks, trade names and patents 552 336 216 9 Developed technology and other 1,038 526 512 9 Total definite-life intangibles 4,915 2,901 2,014 10 Total other intangible assets $ 4,927 $ 2,901 $ 2,026 N/A June 30, 2021 (in millions) Gross Accumulated Net Indefinite-life intangibles: Trademarks and patents $ 12 $ — $ 12 Total indefinite-life intangibles 12 — 12 Definite-life intangibles: Customer relationships 3,330 1,989 1,341 Trademarks, trade names and patents 551 328 223 Developed technology and other 1,035 506 529 Total definite-life intangibles 4,916 2,823 2,093 Total other intangible assets $ 4,928 $ 2,823 $ 2,105 Total amortization of intangible assets was $78 million and $115 million for the three months ended September 30, 2021 and 2020, respectively. Estimated annual amortization of intangible assets for the remainder of fiscal 2022 through 2026 is as follows: $236 million, $287 million, $264 million, $238 million, and $212 million. |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 3 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations and Other Short-Term Borrowings | 5. Long-Term Obligations and Other Short-Term Borrowings Long-Term Debt We had total long-term obligations, including the current portion and other short-term borrowings, of $5.7 billion and $6.2 billion at September 30, 2021 and June 30, 2021, respectively. All the notes 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 notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $23.4 billion and $23.7 billion at September 30, 2021 and June 30, 2021, respectively. During the three months ended September 30, 2021, we redeemed all outstanding $572 million principal amount of 2.616% Notes due June 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes. In connection with this redemption, we recorded a $10 million loss on early extinguishment of debt. The early redemption was funded with available cash. During the three months ended September 30, 2020, we early repurchased a total of $37 million of notes due in 2022 with available cash. 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. At September 30, 2021, we had no amounts outstanding under our commercial paper program, revolving credit facility, or our committed receivables sales facility. In September 2019, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through September 30, 2022. 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. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation | 3 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation | 6. Commitments, Contingent Liabilities and Litigation Commitments Generic Sourcing Venture with CVS Health Corporation ("CVS Health") In July 2014, we established Red Oak Sourcing, LLC ("Red Oak Sourcing"), a U.S.-based generic pharmaceutical sourcing venture with CVS Health for an initial term of 10 years. Red Oak Sourcing negotiates generic pharmaceutical supply contracts on behalf of its participants. In August 2021, we amended our agreement to extend the term through June 2029. We are required to make quarterly payments to CVS Health for the term of the arrangement. Contingencies 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 share of the total morphine milligram equivalents sold or distributed in New York during the applicable calendar year, beginning in 2017. The constitutionality of portions of the OSA has been challenged in court. In December 2018, the OSA was ruled unconstitutional by the U.S. District Court for the Southern District of New York. Subsequently, New York passed a new statute that modified the assessment going forward and limited the OSA to two years (2017 and 2018). The U.S. Court of Appeals for the Second Circuit reversed the district court's decision on procedural grounds. In February 2021, the Second Circuit stayed the effect of the ruling pending a petition to the U.S. Supreme Court to review the Second Circuit's opinion. In October 2021, the U.S. Supreme Court declined to review the decision. We accrue contingencies if it is probable that a liability has been incurred and the amount can be estimated. Because of the Second Circuit ruling, we recorded an aggregate accrual of $41 million for calendar years 2017 and 2018 during the three months ended September 30, 2020 based on the probable estimated payment amount, which is our best estimate of the OSA payments probable at September 30, 2021. Legal Proceedings We become involved from time to time in disputes, litigation and regulatory matters. From time to time, we determine that products we source, 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 have led to product recalls, costs to repair or replace affected products, temporary interruptions in product sales, product liability claims and lawsuits and can lead to action by regulators. Even absent an identified regulatory or quality issue or product recall, we can become subject to product liability claims and lawsuits. From time to time, we become aware through employees, internal audits or other parties of possible product quality, regulatory or 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 directly or indirectly lead to the assertion of claims or the commencement of legal proceedings against us or result in sanctions. We have been 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. 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, net in our condensed consolidated statements of earnings/(loss). Opioid Lawsuits and Investigations Pharmaceutical wholesale distributors, including us, have been named as defendants in approximately 3,300 lawsuits relating to the distribution of prescription opioid pain medications. The lawsuits seek equitable relief and monetary damages based on a variety of legal theories including various common law claims, such as public nuisance, negligence 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. States & Political Subdivisions Approximately 2,900 of these lawsuits have been filed by counties, municipalities, cities and political subdivisions in various federal, state, and other courts. 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 “MDL”). In addition, 25 state attorneys general have filed lawsuits against distributors, including us, in various state courts. We have also received requests, civil investigative demands, subpoenas or requests for information from additional state attorneys general offices and governmental authorities. In October 2019, we agreed in principle to a global settlement framework with a leadership group of state attorneys general; the framework is designed to resolve pending and future opioid lawsuits and claims by states and political subdivisions, but not private plaintiffs (the "Settlement Framework"). We continued to build out the Settlement Framework and to negotiate the terms of the settlement with the leadership group and other representatives of states and political subdivisions. In July, 2021, we announced that we and two other national distributors have negotiated a proposed settlement agreement (the “Proposed Settlement Agreement”) and settlement process that, if all conditions are satisfied, would result in the settlement of the vast majority of opioid lawsuits filed by state and local governmental entities. The settlement process does not contemplate participation by any non-governmental or non-political entities or individuals. In September 2021, the three distributors determined that enough states had agreed to participate in the Proposed Settlement Agreement to proceed to the next phase of the settlement process, which is the subdivision sign-on period. However, the Proposed Settlement Agreement is still subject to contingencies and will not become effective unless and until the three distributors each make separate independent determinations that a sufficient number of political subdivisions, including those that have not sued, have agreed to participate in the Agreement (or otherwise have had their claims foreclosed) to proceed to effectiveness. Prior to that determination, the participating states will also have an opportunity to make a determination as to whether a sufficient number of political subdivisions have agreed to the Proposed Settlement Agreement (or otherwise had their claims foreclosed) to proceed with the Proposed Settlement Agreement. This process is currently contemplated to end in February 2022, although it may be extended by agreement. It is possible that a sufficient number of states and subdivisions will not agree to the Proposed Settlement Agreement or that other required contingencies will not be satisfied. If the required contingencies are satisfied, the Proposed Settlement Agreement would become effective sixty (60) days after the distributors determine that there is sufficient participation to proceed to effectiveness. During this 60-day period, the participating states and the distributors would cooperate to obtain consent judgments embodying the terms of the Settlement in each participating state. The Proposed Settlement Agreement includes a cash component, pursuant to which the Company would pay up to approximately $6.37 billion, the majority of which would be paid over 18 years. The exact payment amount will depend on several factors, including the participation rate of states and political subdivisions, the extent to which states take action to foreclose opioid lawsuits by political subdivisions (e.g., laws barring or limiting opioid lawsuits by political subdivisions), and the extent to which political subdivisions in participating states file additional opioid lawsuits against the Company after the Proposed Settlement Agreement becomes effective. The Proposed Settlement Agreement also includes injunctive relief terms related to distributors’ controlled substance anti-diversion programs, including with respect to: (1) governance; (2) independence and training of the personnel operating controlled substances monitoring programs; (3) due diligence for new and existing customers; (4) ordering limits for certain products; and (5) suspicious order monitoring. A monitor will be selected to oversee compliance with these provisions for a period of five years. In addition, we and the two other settling distributors will engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which distributors will fund the for ten years. In connection with the negotiations of the Proposed Settlement Agreement, we and the two other national distributors entered into a settlement with each of the States of New York and Ohio and their participating subdivisions. If the Proposed Settlement Agreement becomes effective, New York and Ohio and their participating subdivisions will become a part of it. West Virginia subdivisions and Native American tribes are not a part of this settlement process and we have been involved in separate negotiations with these groups. In September 2021 we announced that we, along with two other national distributors, had reached an agreement with the Cherokee Nation in connection with ongoing negotiations toward a broader agreement with Native American tribes. A trial before a federal judge in West Virginia brought by Cabell County and City of Huntington against us and two other national distributors concluded in July 2021. The judge has not yet issued a decision. In addition, a trial in the case brought by the Washington Attorney General against the Company and the same two other national distributors is scheduled to begin in November 2021 and the Washington Attorney General has issued a press release stating that Washington will not agree to the Proposed Settlement Agreement. A trial in the case brought by the Rhode Island Attorney General is scheduled to begin in January 2022 and a trial in the Dallas County case is scheduled to begin in Texas in February 2022. During the three months ended September 30, 2021, we paid into escrow the majority of our first annual payment, which is reflected in prepaid expenses and other assets in our condensed consolidated balance sheets. We also made certain payments under the separate New York and Ohio settlements. In total, we have $6.68 billion accrued at September 30, 2021, of which $441 million is included in other accrued liabilities and the remainder is included in deferred income taxes and other liabilities in our condensed consolidated balance sheets. During the three months ended September 30, 2020, we recorded total pre-tax charges of $1.02 billion in litigation (recoveries)/charges, net in our condensed consolidated statements of earnings/(loss). Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. We regularly review these opioid litigation matters to determine whether our accrual is adequate. The amount of ultimate loss may differ materially from this accrual, whether as a result of settlement discussions, a judicial decision or verdict or otherwise, but we are not able to estimate a range of reasonably possible additional losses for these matters. We continue to strongly dispute the allegations made in these lawsuits and reaching an agreement in principle on a global settlement framework is not an admission of liability or wrongdoing. Department of Justice Investigations We have received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice ("DOJ"). We have also received civil requests for information from other DOJ offices. We believe that these investigations concern operation of our anti-diversion program, our anti-diversion policies and procedures, and distribution of certain controlled substances. We are cooperating with these investigations. We are unable to predict the outcome of any of these investigations. Private Plaintiffs The Proposed Settlement Agreement does not address claims by private parties, which includes unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals alleging personal injury. Private parties had brought approximately 446 lawsuits as of November 4, 2021. Of these, 129 are purported class actions. The causes of action asserted by these plaintiffs are similar to those asserted by public plaintiffs. We are vigorously defending ourselves in these matters. Insurance Litigation We are involved in legal proceedings with two insurers related to the availability of insurance coverage for the lawsuits described above. In October 2020, we filed a complaint for declaratory judgment against National Union Fire Insurance Company of Pittsburgh, PA (“National Union”) seeking a declaration that National Union is obligated to reimburse us for defense costs incurred in connection with the lawsuits described above. In January, 2021, Swiss Re International SE commenced an arbitration in London seeking a determination that it does not have an obligation to reimburse us for defense and indemnity expenses incurred in connection with the lawsuits described above. We have not recorded a receivable for any recoveries related to these insurance litigation matters as of September 30, 2021. Cordis IVC Filter Matters Product Liability Lawsuits As of November 4, 2021, we are named as a defendant in 434 product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by approximately 5,614 plaintiffs that allege personal injuries associated with the use of Cordis OptEase and TrapEase inferior vena cava ("IVC") filter products. Another 33 lawsuits involving similar claims by approximately 38 plaintiffs are pending in other jurisdictions. These lawsuits seek a variety of remedies, including unspecified monetary damages. In July 2021, we entered into an agreement to settle approximately 1,300 claims. This agreement is subject to certain contingencies. We continue to vigorously defend ourselves in these lawsuits and are engaged in ongoing resolution discussions with certain plaintiffs. At September 30, 2021, we had a total of $547 million net of estimated insurance recoveries, accrued for losses and legal defense costs, related to the Cordis IVC filter lawsuits in our 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 $1.07 billion, net of estimated insurance recoveries. The sale of the Cordis disposal group does not include product liability related to the IVC filters in the U.S. and Canada, which we retained. New Mexico Attorney General Action In August 2021, the Attorney General for the State of New Mexico filed an action against certain IVC filter manufacturers, including us, alleging claims under New Mexico's Unfair Practices Act, Medicaid Fraud Act and Fraud Against Taxpayers Act. The allegations made are similar to those made in the product liability lawsuits, described above. We intend to vigorously defend ourselves against these claims. SEC Investigation In February 2021, we received a subpoena from the U.S. Securities and Exchange Commission requesting the production of documents from 2015 through 2019 relating to inventory in the Cordis business, analysis of goodwill of the Medical segment and other matters. We are cooperating with this inquiry and related requests and cannot predict the outcome or duration of the investigation. Shareholder Securities Litigation In August 2019, the Louisiana Sheriffs' Pension & Relief Fund filed a purported class action complaint against Cardinal Health and certain current and former officers and employees in the United States District Court for the Southern District of Ohio purportedly on behalf of all purchasers of our common shares between March 2015 and May 2018. In June 2020, the court appointed 1199 SEIU Health Care Employees Pension Fund as lead plaintiff and a consolidated amended complaint was filed in September 2020. The amended complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by making misrepresentations and omissions related to the acquisition integration of the Cordis business and inventory and supply chain problems within the Cordis business, and seeks to recover unspecified damages and equitable relief for the alleged misstatements and omissions. The complaint also alleges that one of the individual defendants violated Section 20A of the Exchange Act because he sold shares of Cardinal Health stock during the time period. In November 2020, we filed a motion to dismiss the amended complaint, which was denied in September 2021. We dispute these allegations and intend to vigorously defend against them. Specialty Solutions DOJ Investigation In November 2018, the United States Attorney’s Office for the District of Massachusetts (the "USAO") commenced an investigation pertaining to the U.S. federal healthcare fraud and abuse laws. These requests sought, among other things, documents and information relating to discounts and rebates offered or provided to certain Specialty Solutions customers. We are cooperating with these requests and are engaged in resolution discussions with the USAO and Department of Health and Human Services, Office of Inspector General. In connection with these discussions, we recorded $13 million of expense within litigation (recoveries)/charges, net in our consolidated statements of earnings/(loss) during the fiscal year ended June 30, 2021. We cannot predict the outcome of the discussions and it is possible that we may incur additional losses or agree to other remedial measures; however, we are not currently able to estimate a range of reasonably possible additional losses. Other Civil Litigation Generic Pharmaceutical Pricing Antitrust Litigation In December 2019, pharmaceutical distributors including us were added as defendants in a civil class action lawsuit filed by indirect purchasers of generic drugs, such as hospitals and retail pharmacies. The indirect purchaser case is part of a multidistrict litigation consisting of multiple individual class action matters consolidated in the Eastern District of Pennsylvania. The indirect purchaser plaintiffs allege that pharmaceutical distributors encouraged manufacturers to increase prices, provided anti-competitive pricing information to manufacturers and improperly engaged in customer allocation. We have filed a motion to dismiss the complaints and we intend to vigorously defend ourselves. Active Pharmaceutical Ingredient Impurity Litigation Many participants in the pharmaceutical supply chain, including active pharmaceutical ingredient ("API") manufacturers, finished dose manufacturers, repackagers, distributors, and retailers have been named as defendants in lawsuits arising out of recalls of certain medications due to alleged impurities in the active pharmaceutical ingredients or finished product. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | 7. Income Taxes Fluctuations in our provision for/(benefit from) income taxes as a percentage of pre-tax loss (“effective tax rate”) are due to changes in international and U.S. state effective tax rates resulting from our business mix and discrete items. Cordis Divestiture During the three months ended September 30, 2021, we completed the divestiture of the Cordis business. In connection with the closing, we recorded net tax expense of $9 million. The tax effects of these matters during the three months ended September 30, 2021 were included in our full year effective tax rate forecast. We currently estimate that the tax expense associated with this matter for the full fiscal 2022 will be $38 million. Tax Effects of Opioid Litigation Charges In connection with the $1.02 billion pre-tax charges for the opioid litigation during the three months ended September 30, 2020, the net tax benefit was $450 million for the three months ended September 30, 2020, and $228 million for fiscal 2021. Our tax benefits are estimates, which reflect our current assessment of the estimated future deductibility of the amount that may be paid under the accrual taken in connection with the opioid litigation and are net of unrecognized tax benefits of $34 million during the three months ended September 30, 2020, and $219 million for fiscal 2021. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Jobs Act ("Tax Act"); however, these estimates require significant judgment since the U.S. tax law governing deductibility was changed by the Tax Act. Further, it is possible Congress or the tax authorities could challenge our interpretation of the Tax Act or the estimates and assumptions used to assess the future deductibility of these benefits. The actual amount of the tax benefit may differ materially from these estimates. Effective Tax Rate During the three months ended September 30, 2021 and 2020, the effective tax rate was 26.3 percent and 61.8 percent, respectively. The decrease in the effective tax rate for the three months ended September 30, 2021 compared to the prior year period was primarily due to the treatment of the tax impacts of the opioid litigation accrual recorded in prior year. Unrecognized Tax Benefits We had $931 million and $932 million of unrecognized tax benefits at September 30, 2021 and June 30, 2021, respectively. The September 30, 2021 and June 30, 2021 balances include $848 million and $849 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. At September 30, 2021 and June 30, 2021, we had $51 million and $49 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/(loss). 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 2015 through 2020. 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 $72 million at both September 30, 2021 and June 30, 2021, 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. The indemnification receivable was $12 million at both September 30, 2021 and June 30, 2021, and is included in other assets in the condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements The following tables present the fair values for assets and (liabilities) measured on a recurring basis at: September 30, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 812 $ — $ — $ 812 Other investments (1) 119 — — 119 Forward contracts (2) — 47 — 47 June 30, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 1,883 $ — $ — $ 1,883 Other investments (1) 126 — — 126 Forward contracts (2) — 42 — 42 (1) The other investments balance includes investments in mutual funds, which 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. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments Disclosure | 9. Financial Instruments We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk, and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk, but are not designated as hedging instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and 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 earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses. Commodity Price Risk Management We are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts 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, net in the condensed consolidated statements of earnings/(loss). For the three months ended September 30, 2021 and 2020, 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 three months ended September 30, 2021, we entered into a pay-floating interest rate swap with a total notional amount of $100 million. This swap has been designated as a fair value hedge of our fixed rate debt and is included in deferred income taxes and other liabilities in our condensed consolidated balance sheets. 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 accumulated other comprehensive loss 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. Pre-tax gains and losses recognized in other comprehensive loss were immaterial during the three months ended September 30, 2021 and 2020. Gains and losses recognized in accumulated other comprehensive loss and reclassified into earnings were immaterial for the three months ended September 30, 2021 and 2020. All gains and losses currently included within accumulated other comprehensive loss associated with our cash flow hedges 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 foreign subsidiaries. To accomplish this, we enter into cross-currency swaps that are designated as hedges of net investments. 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. Pre-tax gain and loss from net investment hedges recorded in the foreign currency translation component of accumulated other comprehensive loss was a $5 million gain and a $25 million loss during the three months ended September 30, 2021 and 2020, respectively. Gains recognized in interest expense, net in the condensed consolidated statements of earnings/(loss) for the portion of the net investment hedges excluded from the assessment of hedge effectiveness were $6 million and $5 million during the three months ended September 30, 2021 and 2020, respectively. 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)/expense, net. The gain and losses recognized in the three months ended September 30, 2021 and 2020 were immaterial. The principal currencies managed through foreign currency contracts are Euro, Chinese renminbi, and Canadian dollar. Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade receivables, accounts payable, and other accrued liabilities at September 30, 2021 and June 30, 2021 approximate fair value due to their short-term maturities. The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: (in millions) September 30, 2021 June 30, 2021 Estimated fair value $ 6,132 $ 6,751 Carrying amount 5,654 6,236 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 | 3 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | 10. Shareholders' Equity During the three months ended September 30, 2021, we entered into an accelerated share repurchase ("ASR") program to repurchase common shares for an aggregate purchase price of $500 million. We received an initial delivery of 7.8 million common shares using a reference price of $51.53. The program concluded on October 4, 2021 at a volume weighted average price per common share of $51.10 resulting in a final delivery of 2.0 million common shares. We funded the repurchases with available cash. The common shares repurchased are held in treasury to be used for general corporate purposes. Accumulated Other Comprehensive Loss The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions) Foreign Unrealized Accumulated Other Balance at June 30, 2021 $ (46) $ 12 $ (34) Other comprehensive loss, before reclassifications (25) (1) (26) Amounts reclassified to earnings — (1) (1) Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax (25) (2) (27) Balance at September 30, 2021 $ (71) $ 10 $ (61) |
Earnings Per Share Attributable
Earnings Per Share Attributable to Cardinal Health, Inc. | 3 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Cardinal Health, Inc. | 11. Earnings/(Loss) 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 September 30, (in millions) 2021 2020 Weighted-average common shares–basic 287 293 Effect of dilutive securities: Employee stock options, restricted share units, and performance share units 2 — Weighted-average common shares–diluted 289 293 The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for the three months ended September 30, 2021 were 4 million. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 12. 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. 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. This segment also distributes medical products to patients' homes in the United States through our Cardinal Health at-Home Solutions division. Revenue The following table presents revenue for each reportable segment, disaggregated revenue within our two reportable segments and Corporate: Three Months Ended September 30, (in millions) 2021 2020 Pharmaceutical Distribution and Specialty Solutions (1) (2) $ 39,614 $ 34,916 Nuclear and Precision Health Solutions 208 196 Pharmaceutical segment revenue 39,822 35,112 Medical distribution and products (3) 3,567 3,438 Cardinal Health at-Home Solutions 582 519 Medical segment revenue 4,149 3,957 Total segment revenue 43,971 39,069 Corporate (4) (3) (4) Total revenue $ 43,968 $ 39,065 (1) Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services". (2) Comprised of all Pharmaceutical segment businesses except for Nuclear and Precision Health Solutions division. (3) Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (4) 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 September 30, (in millions) 2021 2020 United States $ 42,841 $ 37,976 International 1,130 1,093 Total segment revenue 43,971 39,069 Corporate (1) (3) (4) Total revenue $ 43,968 $ 39,065 (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 distribution, selling, general and administrative ("SG&A") expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate expenses for shared functions, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology, and legal and compliance, including certain litigation defense costs. 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); • surgical gown recall costs/(income); • restructuring and employee severance; • amortization and other acquisition-related costs; • impairments and (gain)/loss on disposal of assets; • litigation (recoveries)/charges, net; • state opioid assessment related to prior fiscal years; • other (income)/expense, net; • interest expense, net; • loss on early extinguishment of debt; • (gain)/loss on sale of equity interest in naviHealth; or • provision for 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 $7 million and $5 million for the three months ended September 30, 2021 and 2020, respectively. In connection with the opioid litigation as discussed further in Note 6 , we recognized a pre-tax charge of $1.02 billion during the three months ended September 30, 2020 which was retained at Corporate. The following table presents segment profit by reportable segment and Corporate: Three Months Ended September 30, (in millions) 2021 2020 Pharmaceutical $ 406 $ 402 Medical 123 230 Total segment profit 529 632 Corporate (114) (1,256) Total operating earnings/(loss) $ 415 $ (624) The following table presents total assets for each reportable segment and Corporate at: (in millions) September 30, 2021 June 30, 2021 Pharmaceutical $ 23,955 $ 23,624 Medical (1) 14,156 15,408 Corporate 4,882 5,421 Total assets $ 42,993 $ 44,453 (1) Assets of $1.1 billion classified as held for sale related to the Cordis divestiture were included within Medical at June 30, 2021. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 13. 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 September 30, (in millions) 2021 2020 Restricted share unit expense $ 18 $ 19 Employee stock option expense — — Performance share unit expense 6 9 Total share-based compensation $ 24 $ 28 The total tax benefit related to share-based compensation was $4 million for both the three months ended September 30, 2021 and 2020 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 Nonvested at June 30, 2021 3 $ 49.05 Granted 1 51.71 Vested (1) 48.83 Canceled and forfeited — — Nonvested at September 30, 2021 3 $ 50.67 At September 30, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $116 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 Weighted-Average Outstanding at June 30, 2021 4 $ 68.46 Granted — — Exercised — — Canceled and forfeited — — Outstanding at September 30, 2021 4 $ 69.31 Exercisable at September 30, 2021 4 $ 69.48 At September 30, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $0.3 million, which is expected to be recognized over a weighted-average period of two years. The following tables provide additional detail related to stock options: (in millions) September 30, 2021 June 30, 2021 Aggregate intrinsic value of outstanding options at period end $ 3 $ 11 Aggregate intrinsic value of exercisable options at period end 3 11 (in years) September 30, 2021 June 30, 2021 Weighted-average remaining contractual life of outstanding options 4 4 Weighted-average remaining contractual life of exercisable options 4 4 Performance Share Units Performance share units vest over a 3-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 240 percent of the target award amount for the fiscal 2020 and 2021 grants and zero to 234 percent for the fiscal 2022 grant. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts) Performance Weighted-Average Nonvested at June 30, 2021 1.2 $ 54.89 Granted 0.5 51.91 Vested (0.3) 52.36 Canceled and forfeited — — Nonvested at September 30, 2021 1.4 $ 51.31 At September 30, 2021, the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $36 million, which is expected to be recognized over a weighted-average period of two years if the performance goals are achieved. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
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. The results of businesses acquired or disposed of are included in the condensed consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. References to "we," "our," and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (this "Form 10-Q") 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 2022 and 2021 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2022 and June 30, 2021, 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. The COVID-19 pandemic ("COVID-19") continues to affect the U.S. and global economies, and as previously disclosed, the pandemic began to materially affect our businesses during the third quarter of fiscal 2020. The length and severity of the pandemic and its impacts on our businesses and results of operations are uncertain. |
Recent Financial Accounting Standards | Recently Issued Financial Accounting Standards Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the Financial Accounting Standards Board ("FASB") on our condensed consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2021 Form 10-K. There were no accounting standards issued in fiscal 2022 that will have a material impact on our condensed consolidated financial statements. Recently Adopted Financial Accounting Standards There were no new material accounting standards adopted in the three months ended September 30, 2021. |
Restructuring and Employee Se_2
Restructuring and Employee Severance (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges [Abstract] | |
Summary of Restructuring and Employee Severance | The following table summarizes restructuring and employee severance costs: Three Months Ended September 30, (in millions) 2021 2020 Employee-related costs $ 8 $ 24 Facility exit and other costs 10 13 Total restructuring and employee severance $ 18 $ 37 |
Schedule of Activity Related to Liabilities Associated with Restructuring and Employee Severance | The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions) Employee- Facility Exit Total Balance at June 30, 2021 $ 53 $ 26 $ 79 Additions 8 1 9 Payments and other adjustments (12) (2) (14) Balance at September 30, 2021 $ 49 $ 25 $ 74 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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, 2021 $ 2,659 $ 5,330 $ 7,989 Goodwill acquired, net of purchase price adjustments — — — Foreign currency translation adjustments and other — (10) (10) Balance at September 30, 2021 $ 2,659 $ 5,320 $ 7,979 |
Schedule of Definite and Indefinite-Lived Intangible Assets | The following tables summarize other intangible assets by class at: September 30, 2021 (in millions) Gross Accumulated Net Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: Trademarks and patents $ 12 $ — $ 12 N/A Total indefinite-life intangibles 12 — 12 N/A Definite-life intangibles: Customer relationships 3,325 2,039 1,286 11 Trademarks, trade names and patents 552 336 216 9 Developed technology and other 1,038 526 512 9 Total definite-life intangibles 4,915 2,901 2,014 10 Total other intangible assets $ 4,927 $ 2,901 $ 2,026 N/A June 30, 2021 (in millions) Gross Accumulated Net Indefinite-life intangibles: Trademarks and patents $ 12 $ — $ 12 Total indefinite-life intangibles 12 — 12 Definite-life intangibles: Customer relationships 3,330 1,989 1,341 Trademarks, trade names and patents 551 328 223 Developed technology and other 1,035 506 529 Total definite-life intangibles 4,916 2,823 2,093 Total other intangible assets $ 4,928 $ 2,823 $ 2,105 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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: September 30, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 812 $ — $ — $ 812 Other investments (1) 119 — — 119 Forward contracts (2) — 47 — 47 June 30, 2021 (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 1,883 $ — $ — $ 1,883 Other investments (1) 126 — — 126 Forward contracts (2) — 42 — 42 (1) The other investments balance includes investments in mutual funds, which 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. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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) September 30, 2021 June 30, 2021 Estimated fair value $ 6,132 $ 6,751 Carrying amount 5,654 6,236 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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 Unrealized Accumulated Other Balance at June 30, 2021 $ (46) $ 12 $ (34) Other comprehensive loss, before reclassifications (25) (1) (26) Amounts reclassified to earnings — (1) (1) Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax (25) (2) (27) Balance at September 30, 2021 $ (71) $ 10 $ (61) |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Cardinal Health, Inc. (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
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 September 30, (in millions) 2021 2020 Weighted-average common shares–basic 287 293 Effect of dilutive securities: Employee stock options, restricted share units, and performance share units 2 — Weighted-average common shares–diluted 289 293 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents revenue by geographic area: Three Months Ended September 30, (in millions) 2021 2020 United States $ 42,841 $ 37,976 International 1,130 1,093 Total segment revenue 43,971 39,069 Corporate (1) (3) (4) Total revenue $ 43,968 $ 39,065 (1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents revenue for each reportable segment, disaggregated revenue within our two reportable segments and Corporate: Three Months Ended September 30, (in millions) 2021 2020 Pharmaceutical Distribution and Specialty Solutions (1) (2) $ 39,614 $ 34,916 Nuclear and Precision Health Solutions 208 196 Pharmaceutical segment revenue 39,822 35,112 Medical distribution and products (3) 3,567 3,438 Cardinal Health at-Home Solutions 582 519 Medical segment revenue 4,149 3,957 Total segment revenue 43,971 39,069 Corporate (4) (3) (4) Total revenue $ 43,968 $ 39,065 (1) Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services". (2) Comprised of all Pharmaceutical segment businesses except for Nuclear and Precision Health Solutions division. (3) Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (4) 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 September 30, (in millions) 2021 2020 Pharmaceutical $ 406 $ 402 Medical 123 230 Total segment profit 529 632 Corporate (114) (1,256) Total operating earnings/(loss) $ 415 $ (624) |
Assets by Reportable Segment | The following table presents total assets for each reportable segment and Corporate at: (in millions) September 30, 2021 June 30, 2021 Pharmaceutical $ 23,955 $ 23,624 Medical (1) 14,156 15,408 Corporate 4,882 5,421 Total assets $ 42,993 $ 44,453 (1) Assets of $1.1 billion classified as held for sale related to the Cordis divestiture were included within Medical at June 30, 2021. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Total Share-based Compensation Expense by Type of Award | The following table provides total share-based compensation expense by type of award: Three Months Ended September 30, (in millions) 2021 2020 Restricted share unit expense $ 18 $ 19 Employee stock option expense — — Performance share unit expense 6 9 Total share-based compensation $ 24 $ 28 |
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 Weighted-Average Outstanding at June 30, 2021 4 $ 68.46 Granted — — Exercised — — Canceled and forfeited — — Outstanding at September 30, 2021 4 $ 69.31 Exercisable at September 30, 2021 4 $ 69.48 |
Schedule of Additional Data Related to Stock Option Activity | The following tables provide additional detail related to stock options: (in millions) September 30, 2021 June 30, 2021 Aggregate intrinsic value of outstanding options at period end $ 3 $ 11 Aggregate intrinsic value of exercisable options at period end 3 11 (in years) September 30, 2021 June 30, 2021 Weighted-average remaining contractual life of outstanding options 4 4 Weighted-average remaining contractual life of exercisable options 4 4 |
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 Nonvested at June 30, 2021 3 $ 49.05 Granted 1 51.71 Vested (1) 48.83 Canceled and forfeited — — Nonvested at September 30, 2021 3 $ 50.67 |
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 Weighted-Average Nonvested at June 30, 2021 1.2 $ 54.89 Granted 0.5 51.91 Vested (0.3) 52.36 Canceled and forfeited — — Nonvested at September 30, 2021 1.4 $ 51.31 |
Divestitures (Details)
Divestitures (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Cordis Divestiture [Member] | |
Long Lived Assets Held-for-sale [Line Items] | |
Proceeds from Divestiture of Businesses | $ 927 |
Restructuring and Employee Se_3
Restructuring and Employee Severance (Activity Related to Restructuring and Employee Severance Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Charges [Abstract] | ||
Employee-related costs | $ 8 | $ 24 |
Facility Exit and Other Costs | 10 | 13 |
Total restructuring and employee severance | $ 18 | $ 37 |
Restructuring and Employee Se_4
Restructuring and Employee Severance (Liabilities Associated with Restructuring and Employee Severance Activities) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 79 |
Additions | 9 |
Payments and other adjustments | (14) |
Ending Balance | 74 |
Employee- Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 53 |
Additions | 8 |
Payments and other adjustments | (12) |
Ending Balance | 49 |
Facility Exit and Other Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 26 |
Additions | 1 |
Payments and other adjustments | (2) |
Ending Balance | $ 25 |
Restructuring and Employee Se_5
Restructuring and Employee Severance Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 8 | $ 24 |
Facility Exit and Other Costs | $ 10 | $ 13 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Reportable Segment) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill, Transfers | $ 0 |
Goodwill [Roll Forward] | |
Beginning balance | 7,989 |
Foreign currency translation adjustments and other | (10) |
Ending balance | 7,979 |
Pharmaceutical | |
Goodwill [Line Items] | |
Goodwill, Transfers | 0 |
Goodwill [Roll Forward] | |
Beginning balance | 2,659 |
Foreign currency translation adjustments and other | 0 |
Ending balance | 2,659 |
Medical | |
Goodwill [Line Items] | |
Goodwill, Transfers | 0 |
Goodwill [Roll Forward] | |
Beginning balance | 5,330 |
Foreign currency translation adjustments and other | (10) |
Ending balance | $ 5,320 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | $ 12 | $ 12 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 4,915 | 4,916 |
Accumulated Amortization | 2,901 | 2,823 |
Net Intangible | $ 2,014 | 2,093 |
Weighted- Average Remaining Amortization Period (Years) | 10 years | |
Gross Intangible, Total other intangible assets | $ 4,927 | 4,928 |
Net Intangible, Total other intangible assets | 2,026 | 2,105 |
Trademarks and patents | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | 12 | 12 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 3,325 | 3,330 |
Accumulated Amortization | 2,039 | 1,989 |
Net Intangible | $ 1,286 | 1,341 |
Weighted- Average Remaining Amortization Period (Years) | 11 years | |
Trademarks, trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 552 | 551 |
Accumulated Amortization | 336 | 328 |
Net Intangible | $ 216 | 223 |
Weighted- Average Remaining Amortization Period (Years) | 9 years | |
Developed technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 1,038 | 1,035 |
Accumulated Amortization | 526 | 506 |
Net Intangible | $ 512 | $ 529 |
Weighted- Average Remaining Amortization Period (Years) | 9 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 78 | $ 115 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 236 | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 287 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 264 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 238 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 212 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 5,700 | $ 6,200 | |
Accounts Payable | 23,400 | $ 23,700 | |
Notes Payable Repurchased | $ 37 | ||
Loss on Early Extinguishment of Debt | (10) | $ 0 | |
2.616% Notes due 2022 | |||
Debt Instrument [Line Items] | |||
Repayments of Notes Payable | 572 | ||
2.616% Notes | |||
Debt Instrument [Line Items] | |||
Loss on Early Extinguishment of Debt | 10 | ||
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 | |||
Debt Instrument [Line Items] | |||
Other Short-term Borrowings | 0 | ||
Short Term Credit Facilities Member | Committed Receivables Sales Facility Program [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Litigation Narrative (Details) $ in Millions | Nov. 04, 2021lawsuitStateAGplaintiff | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) |
Loss Contingencies [Line Items] | ||||
Gain (Loss) Related to Litigation Settlement | $ (18) | $ (1,038) | ||
Opioid Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Lawsuits, Number | lawsuit | 3,300 | |||
Lawsuits Against Distributors | StateAG | 25 | |||
Product Liability Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, New Claims Filed, Number | lawsuit | 33 | |||
Loss Contingency, Claims Settled, Number | lawsuit | 1,300 | |||
New York Opioid Stewardship Act [Member] | ||||
Loss Contingencies [Line Items] | ||||
Aggregate Annual Assessment | $ 100 | |||
Estimated Liability for New York Opioid Stewardship Act | 41 | |||
Opioid Lawsuits State [Domain] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Lawsuits, Number | lawsuit | 2,900 | |||
DOJ Investigation | ||||
Loss Contingencies [Line Items] | ||||
Gain (Loss) Related to Litigation Settlement | $ 13 | |||
CVS Health | ||||
Loss Contingencies [Line Items] | ||||
Long-term Purchase Commitment, Period | 10 years | |||
Product Liability Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, New Claims Filed, Number | lawsuit | 434 | |||
Minimum | Product Liability Lawsuits [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $ 547 | |||
Alameda County [Member] | Product Liability Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, New Claims Filed, Number | plaintiff | 5,614 | |||
Other Jurisdictions [Member] | Product Liability Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, New Claims Filed, Number | plaintiff | 38 | |||
Total Opioid Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
litigation settlement liability recorded | 6,680 | |||
Litigation Charges | $ 1,020 | |||
Loss Contingency, Estimate of Possible Loss | 6,370 | |||
Total Opioid Litigation [Member] | Accrued Liabilities | ||||
Loss Contingencies [Line Items] | ||||
litigation settlement liability recorded | 441 | |||
Private Parties [Member] | Opioid Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Lawsuits, Number | lawsuit | 446 | |||
Class Action Lawsuits [Member] | Private Parties [Member] | Opioid Lawsuits [Member] | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Lawsuits, Number | lawsuit | 129 | |||
Product Liability Lawsuits [Member] | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency Accrual | $ 1,070 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes | ||||
Income Tax Expense (Benefit) | $ (97) | $ 410 | ||
Effective Income Tax Rate Reconciliation, Percent | 26.30% | 61.80% | ||
Unrecognized tax benefits | $ 931 | $ 932 | ||
Unrecognized tax benefits that would impact effective tax rate | 848 | 849 | ||
Unrecognized tax benefits, interest and penalties accrued | 51 | 49 | ||
Cordis Divestiture [Member] | ||||
Income Taxes | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | 9 | |||
Forecast [Member] | Cordis Divestiture [Member] | ||||
Income Taxes | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 38 | |||
Minimum | ||||
Income Taxes | ||||
Estimated range of decrease in unrecognized tax benefits within the next 12 months | 0 | |||
Maximum | ||||
Income Taxes | ||||
Estimated range of decrease in unrecognized tax benefits within the next 12 months | $ 20 | |||
Federal | Minimum | ||||
Income Taxes | ||||
Open Tax Year | 2015 | |||
Federal | Maximum | ||||
Income Taxes | ||||
Open Tax Year | 2020 | |||
Total Opioid Litigation [Member] | ||||
Income Taxes | ||||
Income Tax Expense (Benefit) | $ (450) | (228) | ||
Unrecognized tax benefits | 34 | 219 | ||
Litigation Charges | $ 1,020 | |||
CareFusion [Member] | ||||
Income Taxes | ||||
Indemnification receivable | $ 72 | 72 | ||
Patient Recovery Business [Member] | ||||
Income Taxes | ||||
Indemnification receivable | $ 12 | $ 12 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Liabilities: | ||
Disposal Group, Including Discontinued Operation, Liabilities | $ 0 | $ 96 |
Recurring | ||
Assets: | ||
Other investments | 119 | 126 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 47 | 42 |
Recurring | Level 1 | ||
Assets: | ||
Other investments | 119 | 126 |
Cash and Cash Equivalents, Fair Value Disclosure | 812 | 1,883 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Other investments | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 47 | 42 |
Recurring | Level 3 | ||
Assets: | ||
Other investments | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Recurring | Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets: | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 812 | $ 1,883 |
Financial Instruments Narrative
Financial Instruments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | ||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0 | |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 5 | $ 25 |
Interest Income (Expense), Nonoperating, Net | 6 | $ 5 |
Designated as Hedging Instrument | Fair Value Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional Amount | $ 100 |
Financial Instruments (Summary
Financial Instruments (Summary of Estimated Fair Value of Long-term Obligations and Other Short-term Borrowings) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Amount of Long-Term and other Short-Term Borrowings | $ 5,654 | $ 6,236 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value | $ 6,132 | $ 6,751 |
Shareholders' Equity Narrative
Shareholders' Equity Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 04, 2021 | |
Class of Stock [Line Items] | |||||
Payments for Repurchase of Common Stock | $ 500 | $ 0 | $ 500 | ||
Treasury Shares | |||||
Class of Stock [Line Items] | |||||
Payments for Repurchase of Common Stock | $ 400 | ||||
Treasury shares acquired (using cost method), shares | 8 | ||||
Treasury shares acquired, average price per share (in usd per share) | $ 51.53 | ||||
Treasury Stock Acquired Shares | 7.8 | ||||
Subsequent Event | Treasury Shares | |||||
Class of Stock [Line Items] | |||||
Treasury shares acquired, average price per share (in usd per share) | $ 51.10 | ||||
Final Shares Received from ASR Program | 2 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in the Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 1,794 | $ 1,792 |
Total other comprehensive income/(loss), net of tax | (27) | 17 |
Balance at end of period | 1,396 | 1,425 |
Foreign Currency Translation Adjustments | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (46) | |
Other comprehensive loss, before reclassifications | (25) | |
Amounts reclassified to earnings | 0 | |
Total other comprehensive income/(loss), net of tax | (25) | |
Balance at end of period | (71) | |
Unrealized Gain/(Loss) on Derivatives, net of tax | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 12 | |
Other comprehensive loss, before reclassifications | (1) | |
Amounts reclassified to earnings | (1) | |
Total other comprehensive income/(loss), net of tax | (2) | |
Balance at end of period | 10 | |
Accumulated Other Comprehensive Loss | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (34) | |
Total other comprehensive income/(loss), net of tax | (27) | |
Balance at end of period | (61) | |
AOCI Attributable to Parent | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (34) | (104) |
Other comprehensive loss, before reclassifications | (26) | |
Amounts reclassified to earnings | (1) | |
Balance at end of period | $ (61) | $ (87) |
Earnings Per Share Attributab_3
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 | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted-average common shares–basic (in shares) | 287 | 293 |
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2 | 0 |
Weighted-average common shares–diluted (in shares) | 289 | 293 |
Earnings Per Share Attributab_4
Earnings Per Share Attributable to Cardinal Health, Inc. Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 4,000 | 7,000 |
shares that would be antidilutive as a result of net loss | 2,000 |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Gain (Loss) Related to Litigation Settlement | $ (18) | $ (1,038) |
Number of operating segments | segment | 2 | |
Number of Reportable Segments | segment | 2 | |
Project Costs On Investment And Other Spending | $ 7 | $ 5 |
Total Opioid Litigation [Member] | ||
Estimated Litigation Liability | $ 6,680 |
Segment Information (Revenue by
Segment Information (Revenue by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 43,968 | $ 39,065 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 43,971 | 39,069 |
Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 39,822 | 35,112 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,149 | 3,957 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (3) | (4) |
Nuclear Precision Health Services [Member] | Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 208 | 196 |
Pharmaceutical Distribution and Specialty [Member] | Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 39,614 | 34,916 |
Medical distribution and products [Member] | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,567 | 3,438 |
Cardinal Health At Home Solutions [Member] | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 582 | $ 519 |
Segment Information (Segment Pr
Segment Information (Segment Profit by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | $ 415 | $ (624) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 529 | 632 |
Operating Segments | Pharmaceutical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 406 | 402 |
Operating Segments | Medical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 123 | 230 |
Corporate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | $ (114) | $ (1,256) |
Segment Information (Assets by
Segment Information (Assets by Reportable Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 42,993 | $ 44,453 |
Total assets held for sale | 0 | 1,101 |
Medical | Cordis Divestiture [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets held for sale | 1,100 | |
Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 23,955 | 23,624 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 14,156 | 15,408 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 4,882 | $ 5,421 |
Segment Information Disaggregat
Segment Information Disaggregated Revenue Within Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 43,968 | $ 39,065 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 43,971 | 39,069 |
Operating Segments | Pharmaceutical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 39,822 | 35,112 |
Operating Segments | Pharmaceutical | Nuclear Precision Health Services [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 208 | 196 |
Operating Segments | Pharmaceutical | Pharmaceutical Distribution and Specialty [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 39,614 | 34,916 |
Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 4,149 | 3,957 |
Operating Segments | Medical | Medical distribution and products [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 3,567 | 3,438 |
Corporate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ (3) | $ (4) |
Segment Information Revenue by
Segment Information Revenue by Geographical Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Revenue by Geographic [Line Items] | ||
Revenue | $ 43,968 | $ 39,065 |
UNITED STATES | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 42,841 | 37,976 |
Non-US [Member] | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 1,130 | 1,093 |
Operating Segments | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 43,971 | 39,069 |
Corporate | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | $ (3) | $ (4) |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit related to share-based compensation | $ 4,000,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 300,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||
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 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 116,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||
Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period in years for Shares | 3 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 36,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, 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% | 0.00% | 0.00% |
Performance Share Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target performance goal (as a percent) | 234.00% | 240.00% | 240.00% |
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 | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | $ 24 | $ 28 |
Restricted Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | 18 | 19 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | 0 | 0 |
Performance Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | $ 6 | $ 9 |
Share-Based Compensation (Sch_2
Share-Based Compensation (Schedule of All Stock Option Transactions Under the Plans) (Details) shares in Millions | 3 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Stock Options | |
Outstanding at beginning of period (in shares) | shares | 4 |
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 | 4 |
Exercisable at end of period (in shares) | shares | 4 |
Weighted-Average Exercise Price per Common Share | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 68.46 |
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 | 69.31 |
Exercisable at end of period (in usd per share) | $ / shares | $ 69.48 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Additional Data Related to Stock Options) (Details) - Stock Options - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 300,000 | |
Aggregate intrinsic value of outstanding options at period end | 3,000,000 | $ 11,000,000 |
Aggregate intrinsic value of exercisable options at period end | $ 3,000,000 | $ 11,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years | 4 years |
Share-Based Compensation (Sch_4
Share-Based Compensation (Schedule of All Transactions Related to Restricted Share Units Under the Plans) (Details) - Restricted Share Units shares in Millions | 3 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
Restricted Share Units | |
Nonvested at beginning of period (in shares) | shares | 3 |
Granted (in shares) | shares | 1 |
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 | $ 49.05 |
Granted (in usd per share) | $ / shares | 51.71 |
Vested (in usd per share) | $ / shares | 48.83 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Nonvested at end of period (in usd per share) | $ / shares | $ 50.67 |
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 | 3 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Performance Share Units | |
Nonvested at beginning of period (in shares) | shares | 1.2 |
Granted (in shares) | shares | 0.5 |
Vested (in shares) | shares | (0.3) |
Canceled and forfeited (in shares) | shares | 0 |
Nonvested at end of period (in shares) | shares | 1.4 |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 54.89 |
Granted (in usd per share) | $ / shares | 51.91 |
Vested (in usd per share) | $ / shares | 52.36 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Nonvested at end of period (in usd per share) | $ / shares | $ 51.31 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 36 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |