Cardinal Health (CAH) 10-Q 9 Nov 09 2010 Q1 Quarterly report Financial data

Statement Of Income

Statement Of Income (USD $)
In Millions, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008
Revenue	24780.7	23437.1
Cost of products sold	23871.9	22535.9
Gross margin	908.8	901.2
Operating expenses
Distribution, selling, general and administrative expenses	586.1	590.3
Restructuring and employee severance	59.7	20.7
Impairments and loss on sale of assets	23.6	3.6
Litigation (credits)/charges, net	-0.5	0
Operating earnings	239.9	286.6
Other (income)/expense, net	-8.9	2.5
Interest expense, net	33.9	29.3
Loss on extinguishment of debt	39.9	0
Earnings before income taxes and discontinued operations	175	254.8
Provision for income taxes	236.8	82.6
Earnings/(loss) from continuing operations	-61.8	172.2
Earnings from discontinued operations (net of tax expense of $26.0 and $32.0 for the three months ended September 30, 2009 and 2008, respectively)	23.6	76.9
Net earnings/(loss)	-38.2	249.1
Basic earnings/(loss) per Common Share:
Continuing operations	-0.17	0.48
Discontinued operations	0.06	0.22
Net basic earnings/(loss) per Common Share	-0.11	0.7
Diluted earnings/(loss) per Common Share:
Continuing operations	-0.17	0.48
Discontinued operations	0.06	0.21
Net diluted earnings/(loss) per Common Share	-0.11	0.69
Weighted average number of Common Shares outstanding:
Basic	359.1	356.7
Diluted	359.1	361.1
Cash dividends declared per Common Share	0.175	0.14

Statement Of Income (Parentheti

Statement Of Income (Parenthetical) (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008
Earnings from discontinued operations, tax expense	$26	$32

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Sep. 30, 2009	Jun. 30, 2009
Current assets:
Cash and equivalents	1584.8	1221.6
Trade receivables, net	5921.9	5214.9
Inventories	6861.9	6832.8
Prepaid expenses and other	557.8	523
Assets from businesses held for sale and discontinued operations	162.6	7189.4
Total current assets	15,089	20981.7
Property and equipment, at cost	3045.8	3139.6
Accumulated depreciation and amortization	-1607.2	-1675.1
Property and equipment, net	1438.6	1464.5
Other assets:
Investment in CareFusion	902.4	0
Goodwill and other intangibles, net	2269.3	2266.9
Other	735.4	405.7
Total assets	20434.7	25118.8
Current liabilities:
Current portion of long-term obligations and other short-term borrowings	362.3	366.2
Accounts payable	10047.1	9041.9
Other accrued liabilities	1701.7	1496.2
Liabilities from businesses held for sale and discontinued operations	35.6	1370.9
Total current liabilities	12146.7	12275.2
Long-term obligations, less current portion and other short-term borrowings	2103.5	3271.6
Deferred income taxes and other liabilities	1243.3	847.3
Shareholders' equity:
Preferred Shares, without par value: Authorized - 0.5 million shares, Issued - none	0	0
Common Shares, without par value: Authorized - 755.0 million shares, Issued - 363.6 million shares and 363.7 million shares at September 30, 2009 and June 30, 2009, respectively	2929.1	3031.6
Retained earnings	2124.1	5953.9
Common Shares in treasury, at cost, 1.1 million shares and 3.7 million shares at September 30, 2009 and June 30, 2009, respectively	-188.9	(343)
Accumulated other comprehensive income	76.9	82.2
Total shareholders' equity	4941.2	8724.7
Total liabilities and shareholders' equity	20434.7	25118.8

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
Share data in Millions	Sep. 30, 2009	Jun. 30, 2009
Preferred Shares, without par value	$0	$0
Preferred Shares, Authorized	0.5	0.5
Preferred Shares, Issued	0	0
Common Shares, without par value	$0	$0
Common Shares, Authorized	755	755
Common Shares, Issued	363.6	363.7
Common Shares in treasury, shares	1.1	3.7

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings/(loss)	-38.2	249.1
Earnings from discontinued operations	-23.6	-76.9
Earnings/(loss) from continuing operations	-61.8	172.2
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
Depreciation and amortization	66.3	47.4
Loss on extinguishment of debt	39.9	0
Impairments and loss on sale of assets	23.6	3.6
Equity compensation	22	21
Provision for bad debts	12.3	12.4
Change in operating assets and liabilities, net of effects from acquisitions:
Increase in trade receivables	-716.1	-858.2
Increase in inventories	-28.1	-864.1
Increase in accounts payable	1003.1	978.1
Other accrued liabilities and operating items, net	-99.6	-4.4
Net cash provided by/(used in) operating activities - continuing operations	261.6	(492)
Net cash provided by operating activities - discontinued operations	144.4	336.8
Net cash provided by/(used in) operating activities	406	-155.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of divestitures and cash acquired	(32)	-6.2
Proceeds from sale of property and equipment	4.8	0.7
Additions to property and equipment	(37)	-57.4
Net cash used in investing activities - continuing operations	-64.2	-62.9
Net cash used in investing activities - discontinued operations	-9.9	-31.8
Net cash used in investing activities	-74.1	-94.7
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in commercial paper and short-term borrowings	0	1.2
Reduction of long-term obligations	-1134.4	-150.7
Proceeds from long-term obligations, net of issuance costs	0	8.1
Proceeds from issuance of Common Shares	18.7	17.9
Tax benefit/(expense) from stock options	-6.2	3.3
Payment of premiums for debt extinguishment	-66.4	0
Dividends on Common Shares	-64.2	-49.7
Net cash used in financing activities - continuing operations	-1252.5	-169.9
Net cash provided by/(used in) financing activities - discontinued operations	1283.8	-1.6
Net cash provided by/(used in) financing activities	31.3	-171.5
NET INCREASE/(DECREASE) IN CASH AND EQUIVALENTS	363.2	-421.4
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD	1221.6	808.8
CASH AND EQUIVALENTS AT END OF PERIOD	1584.8	387.4
Non-cash investing and financing transactions for:
Investment in CareFusion	860.8	0
Non-cash dividend in connection with Spin-Off (as hereinafter defined)	3728.4	$0

1. SUMMARY OF SIGNIFICANT ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Spin-Off of CareFusion Corporation Effective August31, 2009, Cardinal Health, Inc. (the Company) completed the distribution to its shareholders of approximately 81% of the then outstanding common stock of CareFusion Corporation (CareFusion), with the Company retaining 41.4million shares of CareFusion common stock (the Spin-Off). Per the requirements of the Private Letter Ruling obtained from the Internal Revenue Service, the Company is required to dispose of the retained shares of CareFusion common stock within five years of the Spin-Off. While Cardinal Health is a party to a separation agreement and various other agreements relating to the separation, including a transition services agreement, a tax matters agreement, an employee matters agreement, intellectual property agreements and certain other commercial agreements, the Company has determined that it has no significant continuing involvement in the operations of CareFusion. Accordingly, the net assets of CareFusion are presented separately in these condensed consolidated financial statements as assets from businesses held for sale and discontinued operations and the operating results of CareFusion are presented within discontinued operations for all periods presented through the date of the Spin-Off. The Company retained certain surgical and exam gloves, surgical drapes and apparel and fluid management businesses previously within the Clinical and Medical Products segment following the Spin-Off. For fiscal 2009, the Company had three reportable segments Healthcare Supply Chain Services, Clinical and Medical Products and All Other. Effective July1, 2009, the Company changed its reportable segments to: Pharmaceutical, Medical and CareFusion. 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, surgical drapes and apparel and fluid management businesses previously within the Clinical and Medical Products segment.The CareFusion segment encompasses the businesses previously within the Clinical and Medical Products segment excluding the above-referenced surgical and exam gloves, surgical drapes and apparel and fluid management businesses and includes all businesses included in the Spin-Off. In connection with the Spin-Off, the Company reorganized its reportable segments into two segments: Pharmaceutical and Medical. See Note 14 for information about these segments. Basis of Presentation The condensed consolidated financial statements of the Company include the accounts of all majority-owned subsidiaries and all significant intercompany amounts have been eliminated. References to the Company or Cardinal Health in these condensed consolidated financial statements shall be deemed to be references to Cardinal Health, Inc. and its majority-owned subsidiaries un

2. RESTRUCTURING AND EMPLOYEE S

2. RESTRUCTURING AND EMPLOYEE SEVERANCE
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
2. RESTRUCTURING AND EMPLOYEE SEVERANCE	2. RESTRUCTURING AND EMPLOYEE SEVERANCE Restructuring Policy The Company classifies a restructuring activity as a program whereby the Company fundamentally changes its operations such as closing facilities, moving manufacturing of a product to another location or outsourcing the production of a product. Restructuring activities may also involve substantial re-alignment of the management structure of a business unit in response to changing market conditions. A liability for a cost associated with an exit or disposal activity is recognized and measured initially at its fair value in the period in which it is incurred except for a liability for a one-time termination benefit which is recognized over its future service period. Restructuring and Employee Severance During fiscal 2005, the Company launched a global restructuring program with the goal of increasing the value the Company provides its customers through better integration of existing businesses and improved efficiency from a more disciplined approach to procurement and resource allocation. As part of the program, in April 2007, the Company announced a restructuring plan to move the Companys medical products distribution headquarters and certain corporate functions from Waukegan, Illinois to the Companys corporate headquarters in Dublin, Ohio. The program was substantially complete by the end of fiscal 2009. At the beginning of fiscal 2009, the Company undertook a major restructuring of its segment operating structure. Effective July1, 2008, the Company consolidated its businesses into two primary operating and reportable segments to reduce costs and align resources with the needs of each segment. In connection with the Spin-Off, these reportable segments have since been reorganized. Refer to Notes 1 and 14 for additional information regarding the Companys current reportable segments. Also, during fiscal 2009 and the first quarter of fiscal 2010, the Company incurred restructuring expenses related to the Spin-Off consisting of employee-related costs, costs to evaluate and execute the transaction, costs to separate certain functions and information technology systems and other one-time transaction related costs. In addition to the restructuring programs discussed above, from time to time the Company incurs costs to implement smaller restructuring efforts for specific operations within its segments. These restructuring plans focus on various aspects of operations, including closing and consolidating certain manufacturing and distribution operations, rationalizing headcount, and aligning operations in the most strategic and cost-efficient structure. The following table summarizes activity related to the Companys restructuring and employee severance costs during the three months ended September30, 2009 and 2008: ThreeMonthsEnded September 30, (in millions) 2009 2008 Employee related costs (1) $ 27.1 $ 21.0 Facility exit and other costs (2) 32.6 (0.3 ) Total restructuring and employee severance $ 59.7 $ 20.7 (1) Employee-Related Costs.These costs primarily consist of on

3. IMPAIRMENTS AND LOSS ON SALE

3. IMPAIRMENTS AND LOSS ON SALE OF ASSETS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
3. IMPAIRMENTS AND LOSS ON SALE OF ASSETS	3. IMPAIRMENTS AND LOSS ON SALE OF ASSETS Asset impairments and losses from the sale of assets are classified within impairments and loss on sale of assets within the condensed consolidated statements of earnings. In the first quarter of fiscal 2010, the Company recognized a $22.5 million impairment loss related to the write-down of SpecialtyScripts, LLC (SpecialtyScripts), a business within the Pharmaceutical segment, to expected fair value less costs to sell. See Note 4 for further information regarding the anticipated sale of SpecialtyScripts.

4. DISCONTINUED OPERATIONS AND

4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE	4. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE CareFusion Effective August31, 2009, the Company completed the distribution to its shareholders of approximately 81% of the then outstanding common stock of CareFusion, with the Company retaining 41.4million shares of CareFusion common stock, and met the criteria for classification as assets held for sale in the Companys financial statements. The Companys approximately 19% investment in the then outstanding CareFusion common stock does not provide the Company the ability to influence the operating or financial policies of CareFusion and accordingly does not constitute significant continuing involvement. Furthermore, while the Company is a party to a separation agreement and various other agreements relating to the separation, including a transition services agreement, a tax matters agreement, an employee matters agreement, intellectual property agreements and certain other commercial agreements, the Company has determined that the continuing cash flows generated by these agreements, which are expected to be eliminated within 5 years, and its investment in CareFusion common stock do not constitute significant continuing involvement in the operations of CareFusion. Accordingly, the net assets of CareFusion are presented separately as held for sale and discontinued operations and the operating results are presented within discontinued operations for all periods presented through the date of the Spin-Off. CareFusion is a stand-alone public company which separately reports its financial results. Due to differences between the basis of presentation for discontinued operations and the basis of presentation for a stand-alone company, the financial results of CareFusion included within discontinued operations for the Company may not be indicative of actual financial results of CareFusion as a stand-alone company. The results of CareFusion included in discontinued operations for the three months ended September30, 2009 and 2008 are summarized as follows: ThreeMonthsEnded September30, (in millions) 2009(1) 2008 Revenue $ 592.1 $ 883.9 Earnings before income taxes and discontinued operations 43.7 103.9 Income tax expense (23.6 ) (29.9 ) Earnings from discontinued operations 20.1 74.0 (1) Reflects the results of CareFusion through August31, 2009, the date the Spin-Off was completed. Interest expense allocated to discontinued operations for CareFusion was $12.8million and $21.6 million for the three months ended September30, 2009 and 2008, respectively. Interest expense was allocated considering the debt issued by CareFusion in connection with the Spin-Off and the overall debt balance of the Company. In addition, a portion of the corporate costs previously allocated to CareFusion have been reclassified to the remaining two segments. There were no assets and liabilities from businesses held for sale for CareFusion at September30, 2009. At June30, 2009, the major components of assets and liabilities from businesses held for sale for CareFusion were as follows: (in millions) June

5. GOODWILL AND OTHER INTANGIBL

5. GOODWILL AND OTHER INTANGIBLE ASSETS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
5. GOODWILL AND OTHER INTANGIBLE ASSETS	5. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table summarizes the changes in the carrying amount of goodwill by segment for the three months ended September30, 2009: (in millions) Pharmaceutical Medical Total Balance at June30, 2009 $ 1,232.8 $ 963.7 $ 2,196.5 Goodwill acquirednet of purchase price adjustments, foreign currency translation adjustments and other (1.9 ) 7.8 5.9 Balance at September30, 2009 $ 1,230.9 $ 971.5 $ 2,202.4 Due to the Spin-Off and reorganization of the reporting units, goodwill was tested for impairment in the first quarter of fiscal 2010. Based on this analysis, there was no impairment. The Companys determination of estimated fair value of the reporting units is based on a combination of a discounted cash flow analysis, a multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) and, if available, a review of the price/earnings ratio for publicly traded companies similar in nature, scope and size of the respective reporting units. The methods and assumptions used to test impairment have been revised for any segment realignments for the periods presented. The discount rates used for impairment testing are based on the risk-free rate plus an adjustment for risk factors. The EBITDA multiples used for impairment testing are judgmentally selected based on factors such as the nature, scope and size of the applicable reporting unit. The use of alternative estimates, peer groups or changes in the industry, or adjusting the discount rate, EBITDA multiples or price earnings ratios used could affect the estimated fair value of the reporting units and potentially result in goodwill impairment. The allocations of the purchase price related to certain small acquisitions are not yet finalized and are subject to adjustment as the Company completes the valuation analyses for acquisitions prior to June30, 2009. The Company expects any future adjustments to the allocations of the purchase prices and potential future contingent payments to be recorded to goodwill. Intangible Assets Intangible assets with definite lives are amortized over their useful lives which range from three to twenty years. The detail of other intangible assets by class as of June30, 2009 and September30, 2009 is as follows: (in millions) Gross Intangible Accumulated Amortization Net Intangible June30, 2009 Unamortized intangibles: Trademarks and patents $ 11.4 $ $ 11.4 Total unamortized intangibles 11.4 11.4 Amortized intangibles: Trademarks and patents 30.2 12.9 17.3 Non-compete agreements 3.9 2.5 1.4 Customer relationships 46.6 35.1 11.5 Other 66.2 37.4 28.8 Total amortized intangibles 146.9 87.9 59.0 Total intangibles $ 158.3 $ 87.9 $ 70.4 September30, 2009 Unamortized intangibles:

6. INVESTMENT IN CAREFUSION

6. INVESTMENT IN CAREFUSION
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
6. INVESTMENT IN CAREFUSION	6. INVESTMENT IN CAREFUSION The following table provides a summary of the Companys available-for-sale securities as of September30, 2009: Available-for-Sale Securities (in millions) Cost(2) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Equity securities(1) $ 860.8 $ 41.6 $ $ 902.4 Total $ 860.8 $ 41.6 $ $ 902.4 (1) Equity securities consist of the Companys ownership of 41.4 million shares of CareFusion common stock retained in connection with the Spin-Off. These securities are stated at fair value, with unrealized gains and losses reported in other comprehensive income. Realized gains and losses, and declines in fair value deemed to be other-than-temporary are recognized in net earnings immediately. The Company has not recognized any realized gains or losses related to these securities. (2) Represents the Companys approximately 19% investment in the net book value of CareFusions assets immediately following the Spin-Off.

7. LONG-TERM OBLIGATIONS AND OT

7. LONG-TERM OBLIGATIONS AND OTHER SHORT-TERM BORROWINGS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
7. LONG-TERM OBLIGATIONS AND OTHER SHORT-TERM BORROWINGS	7. LONG-TERM OBLIGATIONS AND OTHER SHORT-TERM BORROWINGS On September24, 2009, the Company completed a debt tender announced on August27, 2009 for an aggregate purchase price, including an early tender premium but excluding accrued interest, fees and expenses, of up to $1.2 billion of the following series of debt securities (listed in order of acceptance priority): (i)7.80% Debentures due October15, 2016 of Allegiance Corporation; (ii)6.75% Notes due February15, 2011 of the Company; (iii)6.00% Notes due June15, 2017 of the Company; (iv)7.00% Debentures due October15, 2026 of Allegiance Corporation; (v)5.85% Notes due December15, 2017 of the Company; (vi)5.80% Notes due October15, 2016 of the Company; (vii)5.65% Notes due June15, 2012 of the Company; (viii)5.50% Notes due June15, 2013 of the Company; and (ix)4.00% Notes due June15, 2015 of the Company. The Company purchased more than $1.1 billion pursuant to the offer using the order of priority set forth above. In connection with the debt tender, the Company incurred a pre-tax loss for the early extinguishment of debt of approximately $39.9 million, which included an early tender premium of $66.4 million, the write-off of $5.3 million of unamortized debt issuance costs, and an offsetting $31.8 million fair value adjustment to the respective debt related to previously terminated interest rate swaps. Long-term obligations and other short-term borrowings consist of the following as of September30, 2009 and June30, 2009: (in millions) September30, 2009 June30, 2009 4.00%Notes due 2015 $ 521.6 $ 523.8 5.50% Notes due 2013 300.0 300.0 5.65%Notes due 2012 217.1 317.1 5.80%Notes due 2016 310.2 526.4 5.85%Notes due 2017 158.0 500.0 6.00%Notes due 2017 215.7 350.4 6.75%Notes due 2011 217.6 494.6 7.80%Debentures due 2016 44.1 75.7 7.00%Debentures due 2026 124.5 192.0 Floating Rate Notes due 2009 350.0 350.0 Other obligations 7.0 7.8 Total 2,465.8 3,637.8 Less: current portion and other short-term borrowings 362.3 366.2 Long-term obligations, less current portion and other short-term borrowings $ 2,103.5 $ 3,271.6

8. INCOME TAXES

8. INCOME TAXES
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
8. INCOME TAXES	8. INCOME TAXES Effective July 1, 2007, the Company adopted new accounting guidance regarding the accounting for uncertainty in income taxes recognized in the financial statements, resulting in a $139.3 million reduction of retained earnings. This accounting guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The amount recognized is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The balance of unrecognized tax benefits and the amount of interest and penalties were as follows as of September 30, 2009 and June 30, 2009: (in millions) September30, 2009 June30, 2009 Unrecognized tax benefits (1)(2)(3) $ 687.6 $ 848.8 Portion that, if recognized, would reduce tax expense and effective 329.4 610.9 Accrued penalties and interest (2)(3)(4) 232.0 247.0 (1) The Company includes the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the condensed consolidated balance sheets. (2) Due to the anticipated repatriation of certain foreign earnings, taxes associated with a special purpose entity transaction no longer represent uncertain tax benefits and have been classified at September 30, 2009 as deferred tax liabilities. (3) The September 30, 2009 balance includes unrecognized tax benefits related to CareFusion. In accordance with indemnification provisions of the tax matters agreement entered into between the Company and CareFusion, the Company is entitled to reimbursement from CareFusion. The Company has recorded a long term receivable of approximately $212.0 million from CareFusion for these amounts (net of any tax refund claims). (4) Balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the condensed consolidated balance sheets. Upon completion of the Spin-Off, the Company recorded a tax charge of approximately $171.9 million related to the anticipated repatriation of a portion of cash currently loaned to the Companys entities within the United States. This charge is included within earnings/(loss) from continuing operations for the three months ended September 30, 2009. The Company files income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. With few exceptions, the Company is subject to audit by taxing authorities for fiscal years ended June 30, 2001 through the current fiscal year. The Internal Revenue Service (IRS) currently has ongoing audits of fiscal years 2001 through 2007. During the three months ended December 31, 2007, the Company was notified that the IRS transferred jurisdiction over fiscal years 2001 and 2002 from the

9. CONTINGENT LIABILITIES

9. CONTINGENT LIABILITIES
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
9. CONTINGENT LIABILITIES	9. CONTINGENT LIABILITIES Legal Proceedings In addition to commitments and obligations in the ordinary course of business, the Company is subject to various claims, other pending and potential legal actions for damages, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of its business. When accruing for contingencies related to litigation, the Company considers the degree of probability and range of possible loss. An estimated loss contingency is accrued in the Companys consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. The Company recognizes income from the favorable outcome of legal settlements, judgments or other resolution of legal and regulatory matters when the associated cash or assets are received. Estimated loss contingencies related to litigation and regulatory matters and income from favorable resolution of legal and regulatory matters are recognized in litigation (credits)/charges, net in the Companys condensed consolidated statements of earnings. Income Taxes See Note 8 for discussion of contingencies related to the Companys income taxes. Other Matters The Company also becomes involved from time-to-time in litigation and regulatory matters incidental to its business, including, but not limited to, personal injury claims, employment matters, commercial disputes, intellectual property matters, inclusion as a potentially responsible party for environmental clean-up costs, and litigation in connection with acquisitions and divestitures. The Company intends to vigorously defend itself against such litigation and does not currently believe that the outcome of any such litigation will have a material adverse effect on the Companys consolidated financial statements. From time to time, the Company receives subpoenas or requests for information from various government agencies relating to the business, accounting or disclosure practices of customers or suppliers. The responses to these subpoenas and requests for information sometimes require considerable time and effort, and can result in considerable costs being incurred by the Company. The Company expects to incur additional costs in the future in connection with existing and future requests. Such subpoenas and requests also can lead to the assertion of claims or the commencement of legal proceedings against the Company. Also from time to time, the Company may determine that products marketed, manufactured, or distributed by the Company may not meet Company specifications, published sta

10. GUARANTEES

10. GUARANTEES
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
10. GUARANTEES	10. GUARANTEES In the ordinary course of business, the Company, from time to time, agrees to indemnify certain other parties under agreements with the Company, including under acquisition and disposition agreements, customer agreements and intellectual property licensing agreements. Such indemnification obligations vary in scope and, when defined, in duration. In many cases, a maximum obligation is not explicitly stated and therefore the overall maximum amount of the liability under such indemnification obligations cannot be reasonably estimated. Where appropriate, such indemnification obligations are recorded as a liability. Historically, the Company has not, individually or in the aggregate, made payments under these indemnification obligations in any material amounts. In certain circumstances, the Company believes that its existing insurance arrangements, subject to the general deduction and exclusion provisions, would cover portions of the liability that could arise from any of these indemnification obligations. In addition, the Company believes that the likelihood of a material liability being triggered under these indemnification obligations is not significant. In the ordinary course of business, the Company, from time to time, enters into agreements that obligate the Company to make fixed payments upon the occurrence of certain events. Such obligations primarily relate to obligations arising under acquisition transactions, where the Company has agreed to make payments based upon the achievement of certain financial performance measures by the acquired business. Generally, the obligation is capped at an explicit amount. The Companys aggregate exposure for these obligations, assuming the achievement of all financial performance measures, is not material. Any potential payment for these obligations would be treated as an adjustment to the purchase price of the related entity and would have no impact on the Companys results of operations. In the ordinary course of business, the Company, from time to time, extends loans to its customers which are subsequently sold to a bank. The bank services and administers these loans as well as any new loans the Company may direct. In order for the bank to purchase such loans, it requires the absolute and unconditional obligation of the Company to repurchase such loans upon the occurrence of certain events described in the agreement including, but not limited to, borrower payment default that exceeds 90 days, insolvency and bankruptcy At September30, 2009 and June30, 2009, notes in the program subject to the guaranty of the Company totaled $43.2 million and $39.9 million, respectively. These loans are reported in the Companys condensed consolidated balance sheet.

11. FAIR VALUE MEASUREMENTS

11. FAIR VALUE MEASUREMENTS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
11. FAIR VALUE MEASUREMENTS	11. FAIR VALUE MEASUREMENTS In September 2006, the FASB issued new accounting guidance on fair value measurements. The guidance defines fair value, establishes a framework for measuring fair value in GAAP and expands disclosures about fair value measurements. Additionally, this guidance established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: Level1 Observable prices in active markets for identical assets and liabilities. Level2 Observable inputs other than quoted prices in active markets for identical assets and liabilities. Level3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. In February 2008, the FASB issued additional guidance permitting a one-year deferral with regard to nonfinancial assets and nonfinancial liabilities that are not recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).The Company adopted this new accounting guidance on July1, 2008 with respect to all financial assets and liabilities and on July1, 2009 with respect to all non-financial assets and liabilities. The adoption of this guidance did not have a material impact on the Companys financial position or results of operations in either period. Recurring Fair Value Measurements The following table presents the fair values for those assets and (liabilities) measured on a recurring basis as of September30, 2009: Fair Value Measurements (in millions) Level1 Level2 Level3 Total Cash Equivalents(1) $ 1,035.1 $ $ $ 1,035.1 Equity Securities(2) 902.4 902.4 Forward Contracts(3) 88.3 88.3 Other Investments(4) 64.9 64.9 Total $ 2,002.4 $ 88.3 $ $ 2,090.7 (1) Cash equivalents are comprised of highly liquid investments purchased with a maturity of three months or less. The carrying value of these cash equivalents approximates fair value due to their short-term maturities. (2) Equity securities consist of the Companys investment in CareFusion common stock. The fair value of these securities is determined using the quoted market price of the security. (3) The fair value of the Companys foreign currency forward contracts and commodity contracts is determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the respective maturities. (4) The other investments balance includes investments in mutual funds, which are used to offset fluctuations in the Companys deferred compensation liabilities. The fair value of these investments is determined using quoted market prices. Non-Recurring Fair Value Measurements The following table presen

12. EARNINGS PER SHARE AND SHAR

12. EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
12. EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY	12. EARNINGS PER SHARE AND SHAREHOLDERS EQUITY Earnings per Share Basic earnings per Common Share (Basic EPS) is computed by dividing net earnings (the numerator) by the weighted average number of Common Shares outstanding during each period (the denominator). Diluted earnings per Common Share (Diluted EPS) is similar to the computation for Basic EPS, except that the denominator is increased by the dilutive effect of vested and unvested stock options, restricted shares and restricted share units computed using the treasury stock method. The following table reconciles the number of Common Shares used to compute Basic EPS and Diluted EPS for the three months ended September30, 2009 and 2008: FortheThreeMonthsEnded September30, (in millions) 2009 2008 Weighted-average Common Shares basic 359.1 356.7 Effect of dilutive securities: Employee stock options, restricted shares and restricted share units (1) 4.4 Weighted-average Common Shares diluted 359.1 361.1 (1) Due to the Company incurring a loss from continuing operations and a net loss during the first quarter of fiscal 2010, potential dilutive common shares have not been included in the denominator of the dilutive per share computation for the three months ended September30, 2009 due to their antidilutive effect. The potentially dilutive employee stock options that were antidilutive for the three months ended September30, 2009 and 2008 were 22.3million and 24.9million, respectively. The total number of Common Shares issued less the Common Shares held in treasury is used to determine the Common Shares outstanding. Shareholders Equity On August5, 2009, the Company cancelled the previously approved share repurchase program and announced a new $500.0 million share repurchase program which expires on August31, 2012. The Company expects to use this repurchase program to offset equity plan issuances. During the three months ended September30, 2009, the Company did not purchase any of its Common Shares under this program.

13. COMPREHENSIVE INCOME

13. COMPREHENSIVE INCOME
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
13. COMPREHENSIVE INCOME	13. COMPREHENSIVE INCOME The following is a summary of the Companys comprehensive income/(loss) for the three months ended September30, 2009 and 2008: ThreeMonthsEnded September30, (in millions) 2009 2008 Net earnings/(loss) $ (38.2 ) $ 249.1 Foreign currency translation adjustments (41.4 ) (83.3 ) Net unrealized gain on derivative instruments, net of tax 10.3 8.9 Net unrealized gain on investment in CareFusion, net of tax 25.8 Total comprehensive income/(loss) $ (43.5 ) $ 174.7

14. SEGMENT INFORMATION

14. SEGMENT INFORMATION
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
14. SEGMENT INFORMATION	14. SEGMENT INFORMATION The Companys operations are principally managed on a products and services basis. In connection with the Spin-Off, the Company reorganized its businesses into two reportable segments - Pharmaceutical and Medical. The factors for determining the reportable segments include the manner in which management evaluates the performance of the Company combined with the nature of the individual business activities. The Pharmaceutical segment distributes pharmaceutical products, over-the-counter healthcare products and consumer health products and provides support services to retail customers, hospitals and alternate care providers in the United States and Puerto Rico. It also provides services to branded pharmaceutical manufacturers and operates a pharmaceutical repackaging and distribution program for chain and independent pharmacy customers and alternate care customers. In addition, this segment operates centralized nuclear (radiopharmaceutical) pharmacies, provides third-party logistics support services and distributes therapeutic plasma to hospitals, clinics and other providers located in the United States. It also franchises apothecary-style retail pharmacies through its Medicine Shoppe International, Inc. and Medicap Pharmacies Incorporated franchise systems. Finally, it provides pharmacy management services to hospitals and other healthcare facilities. The Medical segment develops, manufactures and distributes medical and surgical products including sterile and non-sterile procedure kits to hospitals, surgery centers, laboratories, physician offices and other healthcare providers in the United States, Canada and Puerto Rico. The medical and surgical products manufactured by the business, including single-use surgical drapes, gowns and apparel, exam and surgical gloves and fluid suction and collection systems, are also sold in various regions of the world outside of the United States, including countries in North America, Europe, and Asia. The following table includes revenue for each reportable segment and reconciling items necessary to agree to amounts reported in the condensed consolidated financial statements: Three Months Ended September30, (in millions) 2009 2008 Segment Revenue: Pharmaceutical (1) $ 22,562.3 $ 21,404.0 Medical (2) 2,237.0 2,036.7 Total segment revenue 24,799.3 23,440.7 Corporate (3) (18.6 ) (3.6 ) Total consolidated revenue $ 24,780.7 $ 23,437.1 (1) The Pharmaceutical segments revenue is primarily derived from the distribution of pharmaceutical, radiopharmaceutical and over-the-counter healthcare products. (2) The Medical segments revenue is primarily derived from the manufacturing and distribution of medical, surgical and laboratory products and medical procedure kits. (3) Corporate revenue primarily consists of the elimination of inter-segment revenue. The Company evaluates the performance of the segments based upon, among other things, segment profit. Segment profit is segment revenue less segmen

15. EMPLOYEE EQUITY PLANS

15. EMPLOYEE EQUITY PLANS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
15. EMPLOYEE EQUITY PLANS	15. EMPLOYEE EQUITY PLANS Employee Equity Plans The Company maintains several stock incentive plans (collectively, the Plans) for the benefit of certain of its officers, directors and employees. Employee options granted under the Plans during fiscal 2008 through fiscal 2010 generally vest in equal annual installments over three years and are exercisable for periods up to seven years from the date of grant at a price equal to the fair market value of the Common Shares underlying the option at the date of grant. Employee options granted under the Plans during fiscal 2007 generally vest in equal annual installments over four years and are exercisable for periods up to seven years from the date of grant at a price equal to the fair market value of the Common Shares underlying the option at the date of grant. Employee restricted shares and restricted share units granted under the Plans during fiscal 2007 through fiscal 2010 generally vest in equal installments over three years and entitle holders to dividends or cash dividend equivalents. Restricted shares and restricted share units that were awarded after August1, 2006 accrue dividends or cash dividend equivalents that are payable upon vesting of the awards. The compensation expense recognized for all equity-based awards is net of estimated forfeitures and is recognized using the straight-line method over the applicable service period. The Company classifies equity-based compensation within SGA expenses to correspond with the same line item as the majority of the cash compensation paid to employees. The following table illustrates the impact of equity-based compensation on reported amounts for the three months ended September30, 2009 and 2008: Three Months Ended September 30, 2009 Three Months Ended September 30, 2008 (in millions, except per share amounts) As Reported Impact of Equity-Based Compensation As Reported Impact of Equity-Based Compensation Operating earnings (1) $ 239.9 $ (22.0 ) $ 286.6 $ (21.0 ) Earnings/(loss) from continuing operations $ (61.8 ) $ (14.1 ) $ 172.2 $ (14.2 ) Net earnings/(loss)(2) $ (38.2 ) $ (16.4 ) $ 249.1 $ (16.2 ) Net basic earnings/(loss) per Common Share $ (0.11 ) $ (0.05 ) $ 0.70 $ (0.05 ) Net diluted earnings/(loss) per Common Share $ (0.11 ) $ (0.05 ) $ 0.69 $ (0.04 ) (1) The total equity-based compensation expense for the three months ended September30, 2009 and 2008 includes gross restricted share and restricted share unit expense of approximately $11.3 million and $11.6 million, respectively, gross employee stock option expense of approximately $9.4 million and $6.2 million, respectively, gross employee stock purchase plan expense of approximately $1.1 million and $3.4 million, respectively and gross stock appreciation right (income)/expense of $0.2 million and $(0.2) million, respectively. (2) Equity-based compensation charged to discontinued operations was approximately $2.3 million and $2.0 million, net of tax benefits of $1.5million and $1.4million, during the three mont

16. SUBSEQUENT EVENTS

16. SUBSEQUENT EVENTS
	3 Months Ended Sep. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
16. SUBSEQUENT EVENTS	16. SUBSEQUENT EVENTS On October2, 2009, the Company repaid its $350.0 million floating rate notes that had reached their maturity. On October23, 2009, the Company recognized $27.2 million of income related to amounts released from escrow following the previously disclosed resolution of the Derivative Litigation against certain of the Companys directors and officers. See Note 3 of the Notes to Consolidated Financial Statements from the FY2009 Financial Statements for a discussion of the Derivative Litigation. This amount is comprised of $25.7 million received from directors and officers insurance policies which will be recognized in litigation (credits)/charges, net and $1.5 million of accrued interest income which will be recognized in interest expense, net. The Company has disclosed all material subsequent events through November9, 2009, the date the financial statements were issued.

Document Information

Document Information
	3 Months Ended Sep. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-09-30

Entity Information

Entity Information (USD $)
	3 Months Ended Sep. 30, 2009	Nov. 04, 2009
Entity [Text Block]
Trading Symbol	CAH
Entity Registrant Name	CARDINAL HEALTH INC
Entity Central Index Key	0000721371
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		362,696,508