Cardinal Health 8K Results of Operations and Financial Condition | CAH 18 Aug 09

Exhibit 99.4

CARDINAL HEALTH, INC. AND SUBSIDIARIES

UNAUDITED ADJUSTED CONSOLIDATED FINANCIAL STATEMENTS

AND

GAAP / NON-GAAP RECONCILATIONS AND DEFINITIONS

The Cardinal Health, Inc. and subsidiaries (“Cardinal Health”) unaudited adjusted consolidated financial statements included below consist of unaudited adjusted consolidated statements of earnings for the quarters ended September 30, December 31, March 31 and June 30, 2009 and 2008 and for the fiscal years ended June 30, 2009 and 2008, unaudited adjusted consolidated balance sheets as of June 30, 2009 and 2008, and unaudited adjusted consolidated statements of cash flows for the fiscal years ended June 30, 2009 and 2008. The unaudited adjusted consolidated financial statements included below have been derived from the historical consolidated financial statements and accounting records of Cardinal Health and have been adjusted to present the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. They do not show the planned distribution by CareFusion of $1.4 billion in cash to Cardinal Health in connection with the planned spin-off and the planned use of that cash to reduce Cardinal Health long-term obligations. Certain surgical and exam gloves, drapes and apparel and fluid management businesses that are currently part of the Clinical and Medical Products segment will be retained by Cardinal Health and will continue to be presented within continuing operations.

The unaudited adjusted consolidated financial statements do not necessarily reflect the financial position and results of operations that will be presented within Cardinal Health’s consolidated financial statements subsequent to the completion of the planned spin-off of CareFusion. In addition, they do not reflect what the financial position and results of operations would have been if Cardinal Health had actually operated without the CareFusion businesses during the periods shown nor are they necessarily indicative of Cardinal Health’s future results of operations or financial condition. The assumptions and estimates used and adjustments derived from such assumptions are based on currently available information, and management believes such assumptions and estimates are reasonable under the circumstances.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share

amounts)

Historical
Fiscal 2009

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Fiscal 2009

Revenue

99,512.4

(3,520.9

)

95,991.5

Cost of products sold

93,986.0

(1,742.0

)

92,244.0

Gross margin

5,526.4

(1,778.9

)

3,747.5

Selling, general and administrative expenses

3,438.3

(1,109.3

)

2,329.0

Impairments, (gain)/loss on sale of assets and other, net

25.0

(11.1

)

13.9

(13.9

)

—

Special items:

Restructuring charges

164.3

(63.2

)

101.1

(101.1

)

—

Acquisition integration charges

14.5

(8.2

)

6.3

(6.3

)

—

Litigation and other

(1.4

)

—

(1.4

)

1.4

—

Operating earnings

1,885.7

(587.1

)

1,298.6

1,418.5

Interest expense and other

218.7

(91.0

)

127.7

Earnings before income taxes and discontinued operations

1,667.0

(496.1

)

1,170.9

1,290.8

Provision for income taxes

524.2

(118.5

)

405.7

29.9

39.4

475.0

Earnings from continuing operations

1,142.8

(377.6

)

765.2

815.8

Earnings from discontinued operations

8.8

377.6

386.4

Net earnings

1,151.6

—

1,151.6

1,202.2

Basic earnings per Common Share:

Continuing operations

3.20

(1.06

)

2.14

Discontinued operations

0.02

1.06

1.08

Net basic earnings per Common Share

3.22

—

3.22

Diluted earnings per Common Share:

Continuing operations

3.16

(1.04

)

2.12

0.21

(0.07

)

2.26

Discontinued operations

0.02

1.04

1.06

Net diluted earnings per Common Share

3.18

—

3.18

Weighted average number of Common Shares outstanding:

Basic

357.6

Diluted

361.5

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
September 30, 2008

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
September 30, 2008

Revenue

24,321.0

(883.9

)

23,437.1

Cost of products sold

22,967.5

(431.6

)

22,535.9

Gross margin

1,353.5

(452.3

)

901.2

Selling, general and administrative expenses

876.8

(286.5

)

590.3

Impairments, (gain)/loss on sale of assets and other, net

3.6

—

3.6

(3.6

)

—

Special items:

Restructuring charges

49.7

(26.7

)

23.0

(23.0

)

—

Acquisition integration charges

2.4

(4.8

)

(2.4

)

2.4

—

Litigation and other

0.3

—

0.3

(0.3

)

—

Operating earnings

420.7

(134.3

)

286.4

310.9

Interest expense and other

62.0

(30.2

)

31.8

Earnings before income taxes and discontinued operations

358.7

(104.1

)

254.6

279.1

Provision for income taxes

112.5

(29.9

)

82.6

7.6

20.9

111.1

Earnings from continuing operations

246.2

(74.2

)

172.0

168.0

Earnings from discontinued operations

2.9

74.2

77.1

Net earnings

249.1

—

249.1

245.1

Basic earnings per Common Share:

Continuing operations

0.69

(0.21

)

0.48

Discontinued operations

0.01

0.21

0.22

Net basic earnings per Common Share

0.70

—

0.70

Diluted earnings per Common Share:

Continuing operations

0.68

(0.20

)

0.48

0.04

(0.05

)

0.47

Discontinued operations

0.01

0.20

0.21

Net diluted earnings per Common Share

0.69

—

0.69

Weighted average number of Common Shares outstanding:

Basic

356.7

Diluted

361.1

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
December 31, 2008

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
December 31, 2008

Revenue

25,074.8

(957.0

)

24,117.8

Cost of products sold

23,668.0

(465.3

)

23,202.7

Gross margin

1,406.8

(491.7

)

915.1

Selling, general and administrative expenses

846.6

(268.1

)

578.5

Impairments, (gain)/loss on sale of assets and other, net

6.9

—

6.9

(6.9

)

—

Special items:

Restructuring charges

14.2

(0.4

)

13.8

(13.8

)

—

Acquisition integration charges

5.8

(2.7

)

3.1

(3.1

)

—

Litigation and other

(0.3

)

—

(0.3

)

0.3

—

Operating earnings

533.6

(220.5

)

313.1

336.6

Interest expense and other

62.1

(20.2

)

41.9

Earnings before income taxes and discontinued operations

471.5

(200.3

)

271.2

294.7

Provision for income taxes

155.4

(53.2

)

102.2

6.6

3.4

112.2

Earnings from continuing operations

316.1

(147.1

)

169.0

182.5

Earnings from discontinued operations

0.4

147.1

147.5

Net earnings

316.5

—

316.5

330.0

Basic earnings per Common Share:

Continuing operations

0.89

(0.41

)

0.48

Discontinued operations

—

0.41

Net basic earnings per Common Share

0.89

—

0.89

Diluted earnings per Common Share:

Continuing operations

0.88

(0.41

)

0.47

0.03

0.01

0.51

Discontinued operations

—

0.41

Net diluted earnings per Common Share

0.88

—

0.88

Weighted average number of Common Shares outstanding:

Basic

357.3

Diluted

360.3

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
March 31, 2009

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
March 31, 2009

Revenue

24,917.7

(828.4

)

24,089.3

Cost of products sold

23,522.8

(420.4

)

23,102.4

Gross margin

1,394.9

(408.0

)

986.9

Selling, general and administrative expenses

844.9

(272.6

)

572.3

Impairments, (gain)/loss on sale of assets and other, net

3.0

(2.3

)

0.7

(0.7

)

—

Special items:

Restructuring charges

47.4

(17.0

)

30.4

(30.4

)

—

Acquisition integration charges

3.5

(2.2

)

1.3

(1.3

)

—

Litigation and other

0.6

(0.1

)

0.5

(0.5

)

—

Operating earnings

495.5

(113.8

)

381.7

414.6

Interest expense and other

59.9

(23.0

)

36.9

Earnings before income taxes and discontinued operations

435.6

(90.8

)

344.8

377.7

Provision for income taxes

122.5

6.8

129.3

5.1

6.7

141.1

Earnings from continuing operations

313.1

(97.6

)

215.5

236.6

Earnings / (loss) from discontinued operations

(0.2

)

97.6

97.4

Net earnings

312.9

—

312.9

334.0

Basic earnings per Common Share:

Continuing operations

0.88

(0.27

)

0.61

Discontinued operations

—

0.27

Net basic earnings per Common Share

0.88

—

0.88

Diluted earnings per Common Share:

Continuing operations

0.87

(0.27

)

0.60

0.08

(0.02

)

0.66

Discontinued operations

—

0.27

Net diluted earnings per Common Share

0.87

—

0.87

Weighted average number of Common Shares outstanding:

Basic

358.1

Diluted

360.9

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
June 30, 2009

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
June 30, 2009

Revenue

25,198.9

(851.6

)

24,347.3

Cost of products sold

23,827.7

(424.7

)

23,403.0

Gross margin

1,371.2

(426.9

)

944.3

Selling, general and administrative expenses

870.1

(282.2

)

587.9

Impairments, (gain)/loss on sale of assets and other, net

11.5

(8.8

)

2.7

(2.7

)

—

Special items:

Restructuring charges

53.0

(19.1

)

33.9

(33.9

)

—

Acquisition integration charges

2.8

1.5

4.3

(4.3

)

—

Litigation and other

(2.0

)

0.1

(1.9

)

1.9

—

Operating earnings

435.8

(118.4

)

317.4

356.4

Interest expense and other

34.6

(17.5

)

17.1

Earnings before income taxes and discontinued operations

401.2

(100.9

)

300.3

339.3

Provision for income taxes

133.7

(42.1

)

91.6

10.6

8.5

110.7

Earnings from continuing operations

267.5

(58.8

)

208.7

228.6

Earnings from discontinued operations

5.7

58.8

64.5

Net earnings

273.2

—

273.2

293.1

Basic earnings per Common Share:

Continuing operations

0.75

(0.17

)

0.58

Discontinued operations

0.01

0.17

0.18

Net basic earnings per Common Share

0.76

—

0.76

Diluted earnings per Common Share:

Continuing operations

0.74

(0.16

)

0.58

0.07

(0.02

)

0.63

Discontinued operations

0.01

0.16

0.17

Net diluted earnings per Common Share

0.75

—

0.75

Weighted average number of Common Shares outstanding:

Basic

358.2

Diluted

361.1

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share

amounts)

Historical
Fiscal 2008

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Fiscal 2008

Revenue

90,975.5

(3,567.3

)

87,408.2

Cost of products sold

85,395.8

(1,764.7

)

83,631.1

Gross margin

5,579.7

(1,802.6

)

3,777.1

Selling, general and administrative expenses

3,390.1

(1,049.5

)

2,340.6

Impairments, (gain)/loss on sale of assets and other, net

(32.0

)

(1.3

)

(33.3

)

33.3

—

Special items:

Restructuring charges

65.7

(10.4

)

55.3

(55.3

)

—

Acquisition integration charges

44.9

(42.3

)

2.6

(2.6

)

—

Litigation and other

19.5

—

19.5

(19.5

)

—

Operating earnings

2,091.5

(699.1

)

1,392.4

1,436.5

Interest expense and other

169.4

(72.1

)

97.3

Earnings before income taxes and discontinued operations

1,922.1

(627.0

)

1,295.1

1,339.2

Provision for income taxes

626.1

(178.2

)

447.9

16.1

(14.8

)

449.2

Earnings from continuing operations

1,296.0

(448.8

)

847.2

890.0

Earnings from discontinued operations

4.6

448.8

453.4

Net earnings

1,300.6

—

1,300.6

1,343.4

Basic earnings per Common Share:

Continuing operations

3.62

(1.25

)

2.37

Discontinued operations

0.01

1.25

1.26

Net basic earnings per Common Share

3.63

—

3.63

Diluted earnings per Common Share:

Continuing operations

3.56

(1.23

)

2.33

0.17

(0.05

)

2.45

Discontinued operations

0.01

1.23

1.24

Net diluted earnings per Common Share

3.57

—

3.57

Weighted average number of Common Shares outstanding:

Basic

358.2

Diluted

364.0

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
September 30, 2007

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
September 30, 2007

Revenue

21,945.4

(787.6

)

21,157.8

Cost of products sold

20,616.3

(391.1

)

20,225.2

Gross margin

1,329.1

(396.5

)

932.6

Selling, general and administrative expenses

824.0

(247.6

)

576.4

Impairments, (gain)/loss on sale of assets and other, net

(0.2

)

0.6

0.4

(0.4

)

—

Special items:

Restructuring charges

14.8

(0.5

)

14.3

(14.3

)

—

Acquisition integration charges

5.4

(4.5

)

0.9

(0.9

)

—

Litigation and other

2.3

0.1

2.4

(2.4

)

—

Operating earnings

482.8

(144.6

)

338.2

356.2

Interest expense and other

42.3

(17.4

)

24.9

Earnings before income taxes and discontinued operations

440.5

(127.2

)

313.3

331.3

Provision for income taxes

141.9

(39.9

)

102.0

6.9

0.1

109.0

Earnings from continuing operations

298.6

(87.3

)

211.3

222.3

Earnings from discontinued operations

3.2

87.3

90.5

Net earnings

301.8

—

301.8

312.8

Basic earnings per Common Share:

Continuing operations

0.82

(0.24

)

0.58

Discontinued operations

0.01

0.24

0.25

Net basic earnings per Common Share

0.83

—

0.83

Diluted earnings per Common Share:

Continuing operations

0.81

(0.24

)

0.57

0.03

0.00

0.60

Discontinued operations

0.01

0.24

0.25

Net diluted earnings per Common Share

0.82

—

0.82

Weighted average number of Common Shares outstanding:

Basic

363.0

Diluted

370.2

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
December 31, 2007

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
December 31, 2007

Revenue

23,253.4

(873.1

)

22,380.3

Cost of products sold

21,913.2

(436.8

)

21,476.4

Gross margin

1,340.2

(436.3

)

903.9

Selling, general and administrative expenses

822.0

(254.2

)

567.8

Impairments, (gain)/loss on sale of assets and other, net

(23.0

)

0.3

(22.7

)

22.7

—

Special items:

Restructuring charges

31.5

(0.6

)

30.9

(30.9

)

—

Acquisition integration charges

10.0

(9.1

)

0.9

(0.9

)

—

Litigation and other

(12.0

)

—

(12.0

)

12.0

—

Operating earnings

511.7

(172.7

)

339.0

336.1

Interest expense and other

49.5

(18.5

)

31.0

Earnings before income taxes and discontinued operations

462.2

(154.2

)

308.0

305.1

Provision for income taxes

142.1

(48.8

)

93.3

6.9

(8.7

)

91.5

Earnings from continuing operations

320.1

(105.4

)

214.7

213.6

Earnings from discontinued operations

4.6

105.4

110.0

Net earnings

324.7

—

324.7

323.6

Basic earnings per Common Share:

Continuing operations

0.89

(0.29

)

0.60

Discontinued operations

0.02

0.29

0.31

Net basic earnings per Common Share

0.91

—

0.91

Diluted earnings per Common Share:

Continuing operations

0.88

(0.29

)

0.59

0.04

(0.04

)

0.59

Discontinued operations

0.01

0.29

0.30

Net diluted earnings per Common Share

0.89

—

0.89

Weighted average number of Common Shares outstanding:

Basic

358.7

Diluted

364.6

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
March 31, 2008

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
March 31, 2008

Revenue

22,882.4

(906.4

)

21,976.0

Cost of products sold

21,426.7

(447.1

)

20,979.6

Gross margin

1,455.7

(459.3

)

996.4

Selling, general and administrative expenses

849.1

(260.3

)

588.8

Impairments, (gain)/loss on sale of assets and other, net

1.2

(0.4

)

0.8

(0.8

)

—

Special items:

Restructuring charges

8.5

(5.2

)

3.3

(3.3

)

—

Acquisition integration charges

4.4

(3.3

)

1.1

(1.1

)

—

Litigation and other

22.7

—

22.7

(22.7

)

—

Operating earnings

569.8

(190.1

)

379.7

407.6

Interest expense and other

30.8

(9.8

)

21.0

Earnings before income taxes and discontinued operations

539.0

(180.3

)

358.7

386.6

Provision for income taxes

177.7

(56.4

)

121.3

10.4

0.3

132.0

Earnings from continuing operations

361.3

(123.9

)

237.4

254.6

Earnings / (loss) from discontinued operations

(5.3

)

123.9

118.6

Net earnings

356.0

—

356.0

373.2

Basic earnings / (loss) per Common Share:

Continuing operations

1.01

(0.34

)

0.67

Discontinued operations

(0.01

)

0.34

0.33

Net basic earnings per Common Share

1.00

—

1.00

Diluted earnings / (loss) per Common Share:

Continuing operations

1.00

(0.34

)

0.66

0.05

0.00

0.71

Discontinued operations

(0.01

)

0.34

0.33

Net diluted earnings per Common Share

0.99

—

0.99

Weighted average number of Common Shares outstanding:

Basic

355.5

Diluted

360.2

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

(in millions, except per Common Share
amounts)

Historical
Three Months Ended
June 30, 2008

Adjustment: Estimated
Impact of Removal of
CareFusion Business

Adjusted ¹

Special Items

Impairments,
Gain/(Loss)
on Sale of Assets
and Other, Net

Non-GAAP
Adjusted ¹
Three Months Ended
June 30, 2008

Revenue

22,894.3

(1,000.3

)

21,894.0

Cost of products sold

21,439.6

(489.8

)

20,949.8

Gross margin

1,454.7

(510.5

)

944.2

Selling, general and administrative expenses

895.0

(287.3

)

607.7

Impairments, (gain)/loss on sale of assets and other, net

(10.0

)

(1.8

)

(11.8

)

11.8

—

Special items:

Restructuring charges

10.9

(4.1

)

6.8

(6.8

)

—

Acquisition integration charges

25.1

(25.4

)

(0.3

)

0.3

—

Litigation and other

6.4

—

6.4

(6.4

)

—

Operating earnings

527.3

(191.9

)

335.4

336.5

Interest expense and other

47.0

(26.5

)

20.5

Earnings before income taxes and discontinued operations

480.3

(165.4

)

314.9

316.0

Provision for income taxes

164.4

(33.2

)

131.2

(8.2

)

(6.5

)

116.5

Earnings from continuing operations

315.9

(132.2

)

183.7

199.5

Earnings from discontinued operations

2.1

132.2

134.3

Net earnings

318.0

—

318.0

333.8

Basic earnings per Common Share:

Continuing operations

0.89

(0.38

)

0.51

Discontinued operations

—

0.38

Net basic earnings per Common Share

0.89

—

0.89

Diluted earnings per Common Share:

Continuing operations

0.88

(0.37

)

0.51

0.06

(0.02

)

0.55

Discontinued operations

—

0.37

Net diluted earnings per Common Share

0.88

—

0.88

Weighted average number of Common Shares outstanding:

Basic

355.5

Diluted

359.8

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(in millions)	Historical June 30, 2009		Adjustment: Estimated Impact of Removal of CareFusion Business			Adjusted ¹ June 30, 2009
Assets
Cash and equivalents	$	1,847.5	$	(625.5	)	$	1,222.0
Trade receivables, net		5,643.6		(428.7	)		5,214.9
Current portion of net investment in sales-type leases		398.9		(388.9	)		10.0
Inventories		7,145.5		(312.7	)		6,832.8
Prepaid expenses and other		588.8		(75.8	)		513.0
Assets from businesses held for sale and discontinued operations		174.7		6,923.4			7,098.1

Total current assets		15,799.0		5,091.8			20,890.8

Property and equipment, net		1,873.0		(408.5	)		1,464.5
Net investment in sales-type leases, less current portion		929.8		(913.8	)		16.0
Goodwill and other intangibles, net		6,095.9		(3,738.1	)		2,357.8
Other assets		421.1		(31.4	)		389.7

Total assets	$	25,118.8	$	—		$	25,118.8

Liabilities and Shareholders’ Equity
Current portion of long-term obligations and other short-term borrowings	$	367.3	$	(1.1	)	$	366.2
Accounts payable		9,138.0		(96.1	)		9,041.9
Other accrued liabilities		1,868.2		(390.7	)		1,477.5
Liabilities from businesses held for sale and discontinued operations		26.3		1,363.3			1,389.6

Total current liabilities		11,399.8		875.4			12,275.2

Long-term obligations, less current portion and other short-term borrowings		3,280.0		(8.4	)		3,271.6
Deferred income taxes and other liabilities		1,714.3		(867.0	)		847.3
Total shareholders’ equity		8,724.7		—			8,724.7

Total liabilities and shareholders’ equity	$	25,118.8	$	—		$	25,118.8

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED BALANCE SHEETS (UNAUDITED)


(in millions)	Historical June 30, 2008		Adjustment: Estimated Impact of Removal of CareFusion Business			Adjusted ¹ June 30, 2008
Assets
Cash and equivalents	$	1,291.3	$	(482.5	)	$	808.8
Trade receivables, net		4,987.7		(504.3	)		4,483.4
Current portion of net investment in sales-type leases		383.7		(373.2	)		10.5
Inventories		6,757.7		(402.1	)		6,355.6
Prepaid expenses and other		591.4		(77.2	)		514.2
Assets from businesses held for sale and discontinued operations		264.2		6,955.3			7,219.5

Total current assets		14,276.0		5,116.0			19,392.0

Property and equipment, net		1,714.0		(425.1	)		1,288.9
Net investment in sales-type leases, less current portion		916.8		(899.2	)		17.6
Goodwill and other intangibles, net		6,157.3		(3,761.7	)		2,395.6
Other assets		384.1		(30.0	)		354.1

Total assets	$	23,448.2	$	—		$	23,448.2

Liabilities and Shareholders’ Equity
Current portion of long-term obligations and other short-term borrowings	$	159.0	$	(7.4	)	$	151.6
Accounts payable		8,303.8		(115.1	)		8,188.7
Other accrued liabilities		1,874.9		(468.7	)		1,406.2
Liabilities from businesses held for sale and discontinued operations		50.0		1,359.4			1,409.4

Total current liabilities		10,387.7		768.2			11,155.9

Long-term obligations, less current portion and other short-term borrowings		3,687.4		(5.7	)		3,681.7
Deferred income taxes and other liabilities		1,625.6		(762.5	)		863.1
Total shareholders’ equity		7,747.5		—			7,747.5

Total liabilities and shareholders’ equity	$	23,448.2	$	—		$	23,448.2

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


(in millions)	Historical June 30, 2009			Adjustment: Estimated Impact of Removal of CareFusion Business			Adjusted ¹ June 30, 2009
Cash Flows From Operating Activities:
Net earnings	$	1,151.6		$	—		$	1,151.6
Earnings from discontinued operations		(8.8	)		(377.6	)		(386.4	)

Earnings from continuing operations		1,142.8			(377.6	)		765.2
Adjustments to reconcile earnings from continuing operations to net cash provided by / (used in) operating activities:
Depreciation and amortization		399.4			(195.4	)		204.0
Asset impairments and (gain)/loss on sale of assets, net		25.0			(11.1	)		13.9
Equity compensation		122.8			(20.4	)		102.4
Provision for deferred income taxes		69.5			79.9			149.4
Provision for bad debts		59.4			(11.3	)		48.1
Change in operating assets and liabilities, net of effects from acquisitions:
(Increase)/decrease in trade receivables		(646.1	)		(64.2	)		(710.3	)
(Increase)/decrease in inventories		(341.8	)		(89.4	)		(431.2	)
(Increase)/decrease in net investment in sales-type leases		(28.2	)		30.2			2.0
Increase/(decrease) in accounts payable		749.0			47.8			796.8
Other accrued liabilities and operating items, net		6.5			(10.5	)		(4.0	)

Net cash provided by operating activities - continuing operations		1,558.3			(622.0	)		936.3
Net cash provided by operating activities - discontinued operations		9.0			479.0			488.0

Net cash provided by operating activities		1,567.3			(143.0	)		1,424.3

Cash Flows From Investing Activities:
Acquisition of subsidiaries, net of divestitures and cash acquired		(5.3	)		(0.1	)		(5.4	)
Proceeds from sale of property and equipment		13.5			(3.3	)		10.2
Additions to property and equipment		(533.4	)		114.7			(418.7	)
Sale of investment securities available for sale, net		—			—			—

Net cash used in investing activities - continuing operations		(525.2	)		111.3			(413.9	)
Net cash used in investing activities - discontinued operations		(17.7	)		(111.3	)		(129.0	)

Net cash used in investing activities		(542.9	)		—			(542.9	)

Cash Flows From Financing Activities:
Reduction of long-term obligations		(304.6	)		3.2			(301.4	)
Proceeds from long-term obligations, net of issuance costs		0.4			(0.4	)		—
Proceeds from issuance of Common Shares		39.3			(0.1	)		39.2
Tax benefit/(expense) from stock options		(2.9	)		—			(2.9	)
Dividends on Common Shares		(200.4	)		—			(200.4	)
Purchase of Common Shares in treasury		—			—			—

Net cash used in financing activities - continuing operations		(468.2	)		2.7			(465.5	)
Net cash used in financing activities - discontinued operations		—			(2.7	)		(2.7	)

Net cash used in financing activities		(468.2	)		—			(468.2	)

Net increase in cash and equivalents		556.2			(143.0	)		413.2
Cash and equivalents at beginning of period		1,291.3			(482.5	)		808.8

Cash and equivalents at end of period		1,847.5			(625.5	)		1,222.0

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


(in millions)	Historical June 30, 2008			Adjustment: Estimated Impact of Removal of CareFusion Business			Adjusted ¹ June 30, 2008
Cash Flows From Operating Activities:
Net earnings	$	1,300.6		$	—		$	1,300.6
Earnings from discontinued operations		(4.6	)		(448.8	)		(453.4	)

Earnings from continuing operations		1,296.0			(448.8	)		847.2
Adjustments to reconcile earnings from continuing operations to net cash provided by / (used in) operating activities:
Depreciation and amortization		374.8			(158.8	)		216.0
Asset impairments and (gain)/loss on sale of assets, net		(31.4	)		(1.3	)		(32.7	)
Purchased in-process research and development		18.0			(18.0	)		—
Equity compensation		122.3			(14.4	)		107.9
Provision for deferred income taxes		25.8			(48.1	)		(22.3	)
Provision for bad debts		26.1			(8.5	)		17.6
Change in operating assets and liabilities, net of effects from acquisitions:
(Increase)/decrease in trade receivables		(313.1	)		19.3			(293.8	)
(Increase)/decrease in inventories		614.3			20.0			634.3
(Increase)/decrease in net investment in sales-type leases		(124.9	)		123.0			(1.9	)
Increase/(decrease) in accounts payable		(859.9	)		11.7			(848.2	)
Other accrued liabilities and operating items, net		405.6			(11.7	)		393.9

Net cash provided by operating activities - continuing operations		1,553.6			(535.6	)		1,018.0
Net cash provided by/(used in) operating activities - discontinued operations		(36.0	)		559.7			523.7

Net cash provided by operating activities		1,517.6			24.1			1,541.7

Cash Flows From Investing Activities:
Acquisition of subsidiaries, net of divestitures and cash acquired		(514.9	)		559.3			44.4
Proceeds from sale of property and equipment		32.6			0.1			32.7
Additions to property and equipment		(366.0	)		180.2			(185.8	)
Sale of investment securities available for sale, net		132.0			—			132.0

Net cash provided by/(used in) investing activities - continuing operations		(716.3	)		739.6			23.3
Net cash used in investing activities - discontinued operations		(10.1	)		(739.6	)		(749.7	)

Net cash used in investing activities		(726.4	)		—			(726.4	)

Cash Flows From Financing Activities:
Net change in commercial paper and short-term borrowings		(0.5	)		0.5			—
Reduction of long-term obligations		(21.5	)		17.6			(3.9	)
Proceeds from long-term obligations, net of issuance costs		303.5			(3.2	)		300.3
Proceeds from issuance of Common Shares		227.9			—			227.9
Tax benefit/(expense) from stock options		42.1			—			42.1
Dividends on Common Shares		(173.1	)		—			(173.1	)
Purchase of Common Shares in treasury		(1,181.6	)		—			(1,181.6	)

Net cash used in financing activities - continuing operations		(803.2	)		14.9			(788.3	)
Net cash provided by/(used in) financing activities - discontinued operations		—			(14.9	)		(14.9	)

Net cash used in financing activities		(803.2	)		—			(803.2	)

Net increase/(decrease) in cash and equivalents		(12.0	)		24.1			12.1
Cash and equivalents at beginning of period		1,303.3			(506.6	)		796.7

Cash and equivalents at end of period	$	1,291.3		$	(482.5	)	$	808.8

¹	Adjusted reflects the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. See page 1 of this exhibit for further explanation of the adjusted presentation.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ SEGMENT BUSINESS ANALYSIS


(in millions)	First Quarter 2009			Second Quarter 2009			Third Quarter 2009			Fourth Quarter 2009			Full Year 2009
Pharmaceutical
Revenue²
Amount	$	21,404		$	22,079		$	22,118		$	22,263		$	87,863
Growth Rate		11	%		8	%		11	%		12	%		11	%
Mix		91	%		91	%		92	%		91	%		92	%
Segment Profit³
Amount	$	213		$	262		$	286		$	273		$	1,036
Growth Rate		(24	)%		10	%		2	%		22	%		1	%
Mix		68	%		78	%		69	%		77	%		73	%
Segment Profit Margin		1.0	%		1.2	%		1.3	%		1.2	%		1.2	%

(in millions)	First Quarter 2009			Second Quarter 2009			Third Quarter 2009			Fourth Quarter 2009			Full Year 2009
Medical
Revenue²
Amount	$	2,037		$	2,057		$	1,976		$	2,090		$	8,159
Growth Rate		8	%		4	%		(2	)%		3	%		3	%
Mix		9	%		9	%		8	%		9	%		8	%
Segment Profit³
Amount	$	98		$	75		$	129		$	83		$	384
Growth Rate		29	%		(23	)%		2	%		(25	)%		(7	)%
Mix		32	%		22	%		31	%		23	%		27	%
Segment Profit Margin		4.8	%		3.6	%		6.5	%		4.0	%		4.7	%

Refer to definitions for an explanation of calculations.

The sum of the quarters may not equal year-to-date due to rounding.

Adjusted represents the new segment structure for Cardinal Health after the estimated impact of the removal of the CareFusion businesses from the historical financial results of Cardinal Health. The Pharmaceutical segment encompasses the businesses previously within the Healthcare Supply Chain Services segment that distributed pharmaceutical, radiopharmaceutical and over-the-counter healthcare products as well as the businesses previously within the All Other segment. The Medical segment encompasses the remaining businesses within the Healthcare Supply Chain Services segment as well as certain surgical and exam gloves, drapes and apparel and fluid management businesses previously within the Clinical and Medical Products segment.

Total consolidated revenue for the first quarter, second quarter, third quarter, fourth quarter and full year was $23,437 million, $24,118 million, $24,089 million, $24,347 million and $95,992 million, respectively, which included total segment revenue of $23,441 million, $24,136 million, $24,094 million, $24,353 million and $96,022 million, respectively, and Corporate revenue of $(4) million, $(18) million, $(5) million, $(6) million and $(30) million, respectively. Corporate consists primarily of elimination of inter-segment revenue.

Total consolidated operating earnings for the first quarter, second quarter, third quarter, fourth quarter and full year was $286 million, $313 million, $382 million, $317 million and $1,299 million, respectively, which included total segment profit of $311 million, $337 million, $415 million, $356 million and $1,420 million, respectively, and Corporate loss of $(25) million, $(24) million, $(33) million, $(39) million and $(121) million, respectively. Corporate includes, among other things, special items and impairments, (gain)/loss on sale of assets and other, net.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

ADJUSTED¹ SEGMENT BUSINESS ANALYSIS


(in millions)	First Quarter 2008			Second Quarter 2008			Third Quarter 2008			Fourth Quarter 2008			Full Year 2008
Pharmaceutical
Revenue²
Amount	$	19,277		$	20,409		$	19,952		$	19,861		$	79,498
Mix		91	%		91	%		91	%		91	%		91	%
Segment Profit³
Amount	$	280		$	238		$	280		$	224		$	1,022
Mix		79	%		71	%		69	%		67	%		71	%
Segment Profit Margin		1.5	%		1.2	%		1.4	%		1.1	%		1.3	%

(in millions)	First Quarter 2008			Second Quarter 2008			Third Quarter 2008			Fourth Quarter 2008			Full Year 2008
Medical
Revenue²
Amount	$	1,883		$	1,973		$	2,026		$	2,035		$	7,917
Mix		9	%		9	%		9	%		9	%		9	%
Segment Profit³
Amount	$	76		$	98		$	127		$	110		$	411
Mix		21	%		29	%		31	%		33	%		29	%
Segment Profit Margin		4.0	%		5.0	%		6.3	%		5.4	%		5.2	%

Refer to definitions for an explanation of calculations.

The sum of the quarters may not equal year-to-date due to rounding.

Total consolidated revenue for the first quarter, second quarter, third quarter, fourth quarter and full year was $21,158 million, $22,380 million, $21,976 million, $21,894 million and $87,408 million, respectively, which included total segment revenue of $21,160 million, $22,382 million, $21,978 million, $21,896 million and $87,415 million, respectively, and Corporate revenue of $(2) million, $(2) million, $(2) million, $(2) million and $(7) million, respectively. Corporate consists primarily of elimination of inter-segment revenue.

Total consolidated operating earnings for the first quarter, second quarter, third quarter, fourth quarter and full year were $338 million, $339 million, $380 million, $335 million and $1,392 million, respectively, which included total segment profit of $356 million, $336 million, $407 million, $334 million and $1,433 million, respectively, and Corporate earnings / (loss) of $(18) million, $3 million, $(27) million, $1 million and $(41) million, respectively. Corporate includes, among other things, special items and impairments, (gain)/loss on sale of assets and other, net.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

RECONCILIATIONS AND DEFINITIONS

GAAP

Diluted EPS from Continuing Operations: earnings from continuing operations divided by diluted weighted average shares outstanding

NON-GAAP

Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding

Non-GAAP Earnings from Continuing Operations:earnings from continuing operations excluding (1) special items and (2) impairments, (gain)/loss on sale of assets and other, net, each net of tax

Non-GAAP Operating Earnings: operating earnings excluding (1) special items and (2) impairments, (gain)/loss on sale of assets and other, net.

Cardinal Health (CAH) 8-KResults of Operations and Financial Condition