Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
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 | 2020 | |
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 | 292,488,354 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 37,341 | $ 35,213 |
Cost of Goods and Services Sold | 35,662 | 33,546 |
Gross margin | 1,679 | 1,667 |
Operating expenses: | ||
Distribution, selling, general and administrative expenses | 1,107 | 1,155 |
Restructuring and employee severance | 30 | 32 |
Amortization and other acquisition-related costs | 132 | 156 |
Impairments and (gain)/loss on disposal of assets, net | 1 | (511) |
Litigation (recoveries)/charges, net | 5,673 | 19 |
Operating earnings/(loss) | (5,264) | 816 |
Other (income)/expense, net | 14 | 3 |
Interest expense, net | 66 | 77 |
Earnings/(loss) before income taxes | (5,344) | 736 |
Provision for (benefit from) income taxes | (423) | 142 |
Net earnings/(loss) | (4,921) | 594 |
Less: Net earnings attributable to noncontrolling interests | (1) | (1) |
Net earnings/(loss) attributable to Cardinal Health, Inc. | $ (4,922) | $ 593 |
Earnings/(loss) per common share attributable to Cardinal Health, Inc.: | ||
Basic (in shares) | $ (16.65) | $ 1.95 |
Diluted (in shares) | $ (16.65) | $ 1.94 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 296 | 305 |
Diluted (in shares) | 296 | 306 |
Cash dividends declared per common share | $ 0.4811 | $ 0.4763 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings/(loss) | $ (4,921) | $ 594 |
Other comprehensive income/(loss): | ||
Foreign currency translation adjustments and other | (17) | (3) |
Net unrealized gain/(loss) on derivative instruments, net of tax | (5) | (1) |
Total other comprehensive income/(loss), net of tax | (22) | (4) |
Total comprehensive income/(loss) | (4,943) | 590 |
Less: comprehensive income attributable to noncontrolling interests | (1) | (1) |
Total comprehensive income attributable to Cardinal Health, Inc. | $ (4,944) | $ 589 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash and equivalents | $ 1,212 | $ 2,531 |
Trade receivables, net | 8,190 | 8,448 |
Inventories, net | 12,458 | 12,822 |
Prepaid expenses and other | 1,855 | 1,946 |
Total current assets | 23,715 | 25,747 |
Property and equipment, net | 2,324 | 2,356 |
Goodwill and other intangibles, net | 11,658 | 11,808 |
Other Assets | 1,482 | 1,052 |
Total assets | 39,179 | 40,963 |
Accounts Payable, Current | 19,724 | 21,535 |
Current liabilities: | ||
Current portion of long-term obligations and other short-term borrowings | 631 | 452 |
Other accrued liabilities | 2,194 | 2,122 |
Total current liabilities | 22,549 | 24,109 |
Long-term obligations, less current portion | 7,360 | 7,579 |
Deferred income taxes and other liabilities | 8,367 | 2,945 |
Preferred shares, without par value: | ||
Authorized—500 thousand shares, Issued—none | 0 | 0 |
Common shares, without par value: | ||
Authorized—755 million shares, Issued—327 million shares at September 30, 2019 and June 30, 2019, respectively | 2,669 | 2,763 |
Retained earnings | 371 | 5,434 |
Common shares in treasury, at cost: 34 million shares and 28 million shares at September 30, 2019 and June 30, 2019, respectively | (2,039) | (1,790) |
Accumulated other comprehensive loss | (101) | (79) |
Total Cardinal Health, Inc. shareholders' equity | 900 | 6,328 |
Noncontrolling interests | 3 | 2 |
Total shareholders' equity | 903 | 6,330 |
Total liabilities and shareholders’ equity | $ 39,179 | $ 40,963 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 903 | $ 6,330 |
Preferred Shares, authorized | 500 | 500 |
Preferred Shares, issued | 0 | 0 |
Common Shares, authorized | 755,000 | 755,000 |
Common Shares, issued | 327,000 | 327,000 |
Common Shares in Treasury | 34,000 | 28,000 |
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, 2018 | 327,000 | |||||
Balance at beginning of period at Jun. 30, 2018 | $ (6,059) | $ (2,730) | $ (4,645) | $ 92 | $ 0 | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2018 | (18,000) | |||||
Treasury, balance at beginning of period at Jun. 30, 2018 | $ (1,224) | |||||
Statement of Stockholders' Equity | ||||||
Net Earnings/(Loss) | 593 | 593 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 594 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (4) | (4) | ||||
Employee stock plans activity, net of shares withheld for employee taxes | (6) | (20) | $ (26) | |||
Treasury Stock, Shares, Acquired | (9,500) | |||||
Payments for Repurchase of Common Stock | 600 | $ 120 | $ 480 | |||
Dividends | 143 | 143 | ||||
Stockholders' Equity, Other | 2 | (2) | ||||
Balance at end of period (in shares) at Sep. 30, 2018 | 327,000 | |||||
Balance at end of period at Sep. 30, 2018 | $ (5,913) | $ (2,590) | (5,097) | 96 | 0 | |
Treasury, balance at end of period (in shares) at Sep. 30, 2018 | (27,000) | |||||
Treasury, balance at end of period at Sep. 30, 2018 | $ (1,678) | |||||
Balance at beginning of period (in shares) at Jun. 30, 2019 | 327,000 | 327,000 | ||||
Balance at beginning of period at Jun. 30, 2019 | $ (6,330) | $ (2,763) | (5,434) | 79 | (2) | |
Treasury, balance at beginning of period (in shares) at Jun. 30, 2019 | (28,000) | (28,000) | ||||
Treasury, balance at beginning of period at Jun. 30, 2019 | $ (1,790) | $ (1,790) | ||||
Statement of Stockholders' Equity | ||||||
Net Earnings/(Loss) | (4,922) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (4,921) | 1 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (22) | (22) | ||||
Employee stock plans activity, net of shares withheld for employee taxes | (7) | (24) | $ (31) | |||
Treasury Stock, Shares, Acquired | (6,400) | |||||
Payments for Repurchase of Common Stock | 350 | $ 70 | $ 280 | |||
Dividends | $ 141 | 141 | ||||
Balance at end of period (in shares) at Sep. 30, 2019 | 327,000 | 327,000 | ||||
Balance at end of period at Sep. 30, 2019 | $ (903) | $ (2,669) | $ (371) | $ 101 | $ (3) | |
Treasury, balance at end of period (in shares) at Sep. 30, 2019 | (34,000) | (34,000) | ||||
Treasury, balance at end of period at Sep. 30, 2019 | $ (2,039) | $ (2,039) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net earnings/(loss) | $ (4,921) | $ 594 |
Adjustments to reconcile net earnings/(loss) to net cash provided by/(used in) operating activities: | ||
Depreciation and amortization | 234 | 245 |
Impairments and (gain)/loss on sale of investments | 0 | 2 |
Impairments and (gain)/loss on disposal of assets, net | 1 | (511) |
Share-based compensation | (20) | (19) |
Provision for bad debts | 29 | 21 |
Change in operating assets and liabilities, net of effects from acquisitions and divestitures: | ||
(Increase)/decrease in trade receivables | 229 | (302) |
(Increase)/decrease in inventories | 356 | (178) |
Increase/(decrease) in accounts payable | (1,812) | 559 |
Other accrued liabilities and operating items, net | 5,211 | (84) |
Net cash provided by/(used in) operating activities | (653) | 365 |
Cash flows from investing activities: | ||
Additions to property and equipment | (72) | (58) |
Purchase of available-for-sale securities and other investments | (3) | (4) |
Proceeds from sale of available-for-sale securities and other investments | 2 | 1 |
Proceeds from Sale of Property, Plant, and Equipment | 0 | 740 |
Net cash provided by/(used in) investing activities | (73) | 679 |
Cash flows from financing activities: | ||
Net change in short-term borrowings | (2) | 0 |
Reduction of long-term obligations | (74) | (1) |
Net tax proceeds/(withholdings) from share-based compensation | (13) | (13) |
Dividends on common shares | (146) | (150) |
Purchase of treasury shares | (350) | (600) |
Net cash used in financing activities | (585) | (764) |
Effect of exchange rate changes on cash and equivalents | (8) | 2 |
Net increase/(decrease) in cash and equivalents | (1,319) | 282 |
Cash and equivalents at beginning of period | 2,531 | 1,763 |
Cash and equivalents at end of period | $ 1,212 | $ 2,045 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 1. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Our condensed consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Refer to Note 4 for further information on our equity method investments. References to "we," "our," and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (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 2020 and 2019 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2020 and June 30, 2019 , respectively. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. To conform to the current year presentation, certain prior year amounts have been reclassified. In addition, financial results presented for this fiscal 2020 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2020 . 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, 2019 (the " 2019 Form 10-K"). Recently Adopted Financial Accounting Standards Derivatives and Hedging In October 2018, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to derivatives and hedging which permits the use of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") as a Benchmark Interest Rate for Hedge Accounting Purposes. This guidance is effective beginning the first quarter of fiscal 2020 and must be applied on a prospective basis. The adoption did not have a material impact on our consolidated financial statements. Leases In February 2016, the FASB issued amended accounting guidance that requires lessees to recognize most leases on the balance sheet as a lease liability and corresponding right-of-use asset. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing and uncertainty of cash flows arising from leases. We adopted this guidance during the first quarter of fiscal 2020 and elected the transition option which allows us to apply the guidance prospectively. The adoption resulted in the recognition of lease liabilities in the amount of $422 million and did not have a material impact on our results of operations, liquidity or debt covenant compliance under our current debt agreements. The majority of our lease spend relates to certain real estate with the remaining lease spend primarily related to vehicles and equipment. The adoption required certain changes to our systems and processes. S ee Note 5 for additional information regarding leases. Recently Issued Financial Accounting Standards Not Yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued amended accounting guidance that will require entities to measure credit losses on trade and other receivables, held-to-maturity debt securities, loans and other instruments using an "expected credit loss" model that considers historical experience, current conditions and reasonable supportable forecasts. This guidance also requires that credit losses on available for-sale debt securities with unrealized losses be recognized as allowances rather than as deductions in the amortized cost of the securities. This guidance will be effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of adoption on our consolidated financial statements. |
Restructuring and Employee Seve
Restructuring and Employee Severance | 3 Months Ended |
Sep. 30, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring and Employee Severance | 2. Restructuring and Employee Severance The following table summarizes restructuring and employee severance costs: Three months ended September 30, (in millions) 2019 2018 Employee-related costs (1) $ 20 $ 29 Facility exit and other costs (2) 10 3 Total restructuring and employee severance $ 30 $ 32 (1) Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. (2) Facility exit and other costs primarily consist of product distribution and lease contract termination costs, lease costs associated with vacant facilities, accelerated depreciation, equipment relocation costs, project consulting fees, costs associated with restructuring our delivery of information technology infrastructure services and certain other divestiture-related costs. During fiscal 2020 and 2019, we implemented certain enterprise-wide cost-saving initiatives affecting various functional and commercial areas intended to optimize and simplify our operating model and cost structure. We incurred $20 million and $26 million for the three months ended September 30, 2019 and 2018 , respectively, in expenses related to these cost savings initiatives, which are reflected in restructuring and employee severance in the condensed consolidated statements of earnings. The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions) Employee- Related Costs Facility Exit and Other Costs Total Balance at June 30, 2019 $ 64 $ 8 $ 72 Additions 19 6 25 Payments and other adjustments (10 ) (2 ) (12 ) Balance at September 30, 2019 $ 73 $ 12 $ 85 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 3. Goodwill and Other Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill by segment and in total: (in millions) Pharmaceutical Medical Total Balance at June 30, 2019 $ 2,663 $ 5,715 $ 8,378 Goodwill acquired, net of purchase price adjustments (5 ) — (5 ) Foreign currency translation adjustments and other — (13 ) (13 ) Balance at September 30, 2019 $ 2,658 $ 5,702 $ 8,360 Other Intangible Assets The following tables summarize other intangible assets by class at: September 30, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: IPR&D, trademarks and other $ 22 $ — $ 22 N/A Total indefinite-life intangibles 22 — 22 N/A Definite-life intangibles: Customer relationships 3,555 1,592 1,963 13 Trademarks, trade names and patents 673 307 366 13 Developed technology and other 1,603 656 947 11 Total definite-life intangibles 5,831 2,555 3,276 12 Total other intangible assets $ 5,853 $ 2,555 $ 3,298 N/A June 30, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Indefinite-life intangibles: IPR&D, trademarks and other $ 22 $ — $ 22 Total indefinite-life intangibles 22 — 22 Definite-life intangibles: Customer relationships 3,562 1,517 2,045 Trademarks, trade names and patents 672 295 377 Developed technology and other 1,602 616 986 Total definite-life intangibles 5,836 2,428 3,408 Total other intangible assets $ 5,858 $ 2,428 $ 3,430 Total amortization of intangible assets was $129 million and $133 million for the three months ended September 30, 2019 and 2018 , respectively. Estimated annual amortization of intangible assets for the remainder of fiscal 2020 through 2024 is as follows: $382 million , $442 million , $408 million , $358 million , and $328 million . |
Investments
Investments | 3 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | 4. Investments In August 2018, we sold our 98 percent ownership interest in naviHealth Holdings, LLC ("naviHealth") to investor entities controlled by Clayton, Dubilier & Rice in exchange for cash proceeds of $737 million (after adjusting for certain fees and expenses) and a 44 percent equity interest in a partnership that owns 100 percent of the equity interest of naviHealth. We also have certain call rights to reacquire naviHealth. We are accounting for this investment using the equity method of accounting and on a one-month reporting lag. During the three months ended September 30, 2018, we recognized a pre-tax gain of $508 million related to this divestiture in impairments and (gain)/loss on disposal of assets in our condensed consolidated statement of earnings. The carrying value of this investment was $329 million and $334 million as of September 30, 2019 and June 30, 2019 , respectively. For the three months ended September 30, 2019 , our proportionate share of naviHealth’s net loss, which was recorded in Other (income)/expense, net in the condensed consolidated statement of earnings, was immaterial. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 5. Leases We primarily have operating leases for corporate offices, distribution facilities, vehicles, and equipment. We determine if an arrangement is a lease at inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Beginning July 1, 2019, operating leases are included in other assets, other accrued liabilities, and deferred income taxes and other liabilities in our condensed consolidated balance sheet. Operating lease right-of-use assets and corresponding operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Finance leases are included in property and equipment, net, current portion of long-term obligations and other short-term borrowings, and long-term obligations, less current portion in our condensed consolidated balance sheet. Our lease agreements include leases that contain lease components and non-lease components. For all asset classes, we have elected to account for both of these provisions as a single lease component. We also, from time to time, sublease portions of our real estate property, resulting in sublease income. Sublease income and the related assets and cash flows are not material to the condensed consolidated financial statements at or for the three months ended September 30, 2019 . We also have elected to apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of less than 12 months. Short-term lease expense recognized in the three months ended September 30, 2019 was not material. In addition, we elected the package of three practical expedients permitted under the transition guidance, which include the carry forward of our leases without reassessing 1) whether any contracts are leases or contain leases, 2) lease classification and 3) initial direct costs. Our leases have remaining lease terms from less than 1 year up to approximately 23 years . Our lease terms may include options to extend or terminate the lease when it is reasonably certain and there is a significant economic incentive to exercise that option. The following table summarizes the components of lease cost: Three Months Ended September 30, (in millions) 2019 Operating lease cost $ 31 Finance lease cost Amortization of right-of-use assets 4 Total finance lease cost 4 Variable lease cost 1 Total lease cost $ 36 The following tables summarizes supplemental balance sheet information related to leases: (in millions) September 30, 2019 Operating Leases Operating lease assets $ 394 Current portion of operating lease liabilities 103 Operating lease liabilities 312 Total operating lease liabilities 415 Finance Leases Property and equipment, net 18 Current portion of long-term obligations 5 Long-term obligations, less current portion 12 Total finance lease liabilities $ 17 The following tables summarizes supplemental cash flow information related to leases: Three Months Ended September 30, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 31 Financing cash flows paid for finance lease 2 Non-cash right-of-use assets obtained in exchange for lease obligations: New operating leases 15 New finance leases 17 Amended lease standard adoption impact as of July 1, 2019 (1) 400 (1) Includes the effect of $22 million from reclassifying deferred rent as an offset in accordance with the transition guidance. Our operating leases had a weighted-average remaining lease term of 6.2 years and a weighted-average discount rate of 3.0 percent . Future lease payments under non-cancellable leases as of September 30, 2019 were as follows: (in millions) Operating Leases Finance Leases Total Years Ending September 30, Remainder of 2020 $ 91 $ 4 $ 95 2021 101 6 107 2022 79 4 83 2023 58 4 62 2024 41 1 42 Thereafter 149 — 149 Total future lease payments 519 19 538 Less: leases not yet commenced (1) 61 — 61 Less: imputed interest 43 2 45 Total lease liabilities $ 415 $ 17 $ 432 (1) As of September 30, 2019, we had certain leases that were executed but did not have control of the underlying assets; therefore, the lease liabilities and right-of-use assets are not recorded in the condensed consolidated balance sheets. As previously disclosed in our fiscal 2019 Form 10-K under the prior accounting guidance, the future minimum rental payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2019 for fiscal 2020 through 2024 and thereafter were as follows: $126 million , $100 million , $76 million , $54 million , $33 million and $94 million . |
Long-Term Obligations and Other
Long-Term Obligations and Other Short-Term Borrowings | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations and Other Short-Term Borrowings | 6. 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 $8.0 billion at both September 30, 2019 and June 30, 2019 . 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 $19.7 billion and $21.5 billion at September 30, 2019 and June 30, 2019 , respectively. During the three months ended September 30, 2019 , we repurchased a total of $74 million of notes due in 2022 and 2047 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. 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. Our revolving credit facility and committed receivables sales facilities require us to maintain, as of the end of every fiscal quarter from September 30, 2019 through December 2020, a consolidated net leverage ratio of no more than 4.00-to-1. The maximum permitted ratio will reduce to 3.75-to-1 in March 2021 and as of the end of every fiscal quarter thereafter. As of September 30, 2019, we were in compliance with our financial covenants. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Litigation | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Litigation | 7. 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. Due to the achievement of predetermined milestones, we are required to make quarterly payments of $45.6 million to CVS Health for the remainder of the initial term. Legal Proceedings We become involved from time to time in disputes, litigation and regulatory matters. We are named from time to time in qui tam actions initiated by private third parties. In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful. After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on his or her own purporting to act on behalf of the government . From time to time, we become aware through employees, internal audits or other parties of possible compliance matters, such as complaints or concerns relating to accounting, internal accounting controls, financial reporting, auditing, or other ethical matters or relating to compliance with laws such as healthcare fraud and abuse, anti-corruption or anti-bribery laws. When we become aware of such possible compliance matters, we investigate internally and take appropriate corrective action. In addition, from time to time, we receive subpoenas or requests for information from various federal or state agencies relating to our business or to the business of a customer, supplier or other industry participants. Internal investigations, subpoenas or requests for information have led, and may in the future lead, to the assertion of claims or the commencement of legal proceedings against us or result in sanctions. From time to time, we determine that products we manufacture or market do not meet our specifications, regulatory requirements, or published standards. When we or a regulatory agency identify a potential quality or regulatory issue, we investigate and take appropriate corrective action. Such actions can lead to product recalls, costs to repair or replace affected products, temporary interruptions in product sales, action by regulators and product liability claims and lawsuits, including class actions. Even absent an identified regulatory or quality issue or product recall, we can become subject to product liability claims and lawsuits. We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because these matters are inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review contingencies to determine whether our accruals and related disclosures are adequate. The amount of ultimate loss may differ from these estimates. We recognize income from the favorable outcome of litigation when we receive the associated cash or assets. We recognize estimated loss contingencies for certain litigation and regulatory matters and income from favorable resolution of litigation in litigation (recoveries)/charges in our condensed consolidated statements of earnings. Opioid Lawsuits Pharmaceutical wholesale distributors, including us, have been named as defendants in approximately 2,400 lawsuits relating to the distribution of prescription opioid pain medications. These lawsuits have been filed by counties, municipalities, cities and political subdivisions in various federal, state, and other courts. The lawsuits seek equitable relief and monetary damages based on a variety of legal theories including various common law claims, such as negligence, public nuisance and unjust enrichment as well as violations of controlled substance laws, the Racketeer Influenced and Corrupt Organizations Act and various other statutes. These lawsuits also name pharmaceutical manufacturers, retail pharmacy chains and other entities as defendants. The vast majority of these lawsuits were filed in U.S. federal court and have been transferred for consolidated pre-trial proceedings in a Multi-District Litigation proceeding in the U.S. District Court for the Northern District of Ohio (the “MDL”). In addition, 21 state attorneys general have filed lawsuits against distributors, including us, in various state courts. Additionally, 43 state attorneys general have formed a multi-state task force to investigate the manufacturing, distribution, dispensing and prescribing practices of opioid medications. We have received requests related to the multi-state investigation, as well as separate civil investigative demands, subpoenas or requests for information from these and other state attorneys general offices. In October 2019, we agreed in principle to a global settlement framework with a leadership group of four state attorneys general from the multi-state task force that is designed to resolve all pending and future opioid lawsuits and claims by states and political subdivisions, but not private plaintiffs (the "Settlement Framework"). This Settlement Framework is subject to contingencies and uncertainties as to final terms, but is the basis for our negotiation of definitive terms and documentation. The Settlement Framework includes (1) a cash component, pursuant to which we would pay up to $5.56 billion over eighteen years , (2) development and participation in a program for free or rebated distribution of opioid abuse treatment medications for a period of ten years, and (3) industry-wide changes to be specified to controlled substance anti-diversion programs. The Settlement Framework is in its early phases, and there is no assurance that the necessary parties will agree to a definitive settlement agreement or that the contingencies to any agreement will be satisfied. We have included a $5.56 billion accrual related to the Settlement Framework in deferred income taxes and other liabilities in the condensed consolidated balance sheets and litigation (recoveries)/charges, net, in the condensed consolidated statements of earnings. On October 21, 2019, we and two other national distributors agreed to a $215 million settlement with two Ohio counties, Cuyahoga and Summit, to resolve all claims in the first bellwether trial in the MDL that had been scheduled for trial in October 2019. In connection with this settlement, we have accrued $66 million , which is included in other accrued liabilities in the condensed consolidated balance sheets and litigation (recoveries)/charges, net, in the condensed consolidated statements of earnings. In connection with these matters, we recorded a total pre-tax charge of $5.63 billion ( $5.14 billion after tax) during the three-months ended September 30, 2019 for the cash component. Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. Moreover, the global Settlement Framework is in early stages and there is no assurance that the necessary parties will agree to a definitive settlement agreement or that the contingencies to any agreement will be satisfied. We will regularly review these opioid litigation matters to determine whether our accrual is adequate. We are unable to reasonably estimate the liability associated with any potential distribution of treatment medications and any incremental costs for changes to our controlled substance anti-diversion program that we may agree to under the Settlement Framework. The amount of ultimate loss may differ materially from this accrual. 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. The Settlement Framework 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. Private parties had brought approximately 325 lawsuits as of November 1, 2019. Of these, 97 are purported class actions. The causes of action asserted by these plaintiffs are similar to those asserted by public plaintiffs. We will continue to vigorously defend ourselves in these matters. Product Liability Lawsuits As of November 1, 2019, we are named as a defendant in 280 product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by approximately 3,463 plaintiffs that allege personal injuries associated with the use of Cordis OptEase and TrapEase inferior vena cava (IVC) filter products. Another 24 lawsuits involving similar claims by approximately 28 plaintiffs are pending in other jurisdictions. These lawsuits seek a variety of remedies, including unspecified monetary damages. We are vigorously defending ourselves in these lawsuits. At September 30, 2019, we had a total of $414 million , net of estimated insurance recoveries, accrued for losses and legal defense costs related to the Cordis IVC filter lawsuits which are presented on a gross basis in the condensed consolidated balance sheets. We believe there is a range of estimated losses with respect to these matters. Because no amount within the range is a better estimate than any other amount within the range, we have accrued the minimum amount in the range. We estimate the high end of the range to be approximately $836 million , net of estimated insurance recoveries. Shareholder Securities Litigation |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Fluctuations in our provision for income taxes as a percentage of pre-tax earnings (“effective tax rate”) are due to changes in international and U.S. state effective tax rates resulting from our business mix and discrete items. Opioid Settlement Framework In connection with the $5.63 billion pre-tax charge for the opioid litigation, we recorded a tax benefit of $487 million , which is net of unrecognized tax benefits of $468 million , reflecting our current assessment of the estimated future deductibility of the amount that may be paid. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the Tax Act; however, these estimates require significant judgment since the definitive settlement terms and documentation, including provisions related to deductibility, under the Settlement Framework have not been negotiated and the U.S. tax law governing deductibility was changed by the Tax Act. Further, it is possible that 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 related to uncertain tax positions may differ materially from these estimates. See Note 7 for more information regarding these matters. Effective Tax Rate During the three months ended September 30, 2019 and 2018 , the effective tax rate was 7.9 percent and 19.4 percent, respectively. The change in the effective tax rate from fiscal 2019 to fiscal 2020 is primarily due to the net effects of the Settlement Framework, partially offset by the prior-year benefit of discrete tax items . Unrecognized Tax Benefits We had $943 million and $456 million of unrecognized tax benefits at September 30, 2019 and June 30, 2019 , respectively. The September 30, 2019 and June 30, 2019 balances include $795 million and $303 million , respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. At September 30, 2019 and June 30, 2019 , we had $126 million and $122 million , respectively, accrued for the payment of interest and penalties related to unrecognized tax benefits, which we recognize in the provision for/(benefit from) income taxes in the condensed consolidated statements of earnings. These balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the condensed consolidated balance sheets. It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service ("IRS") or other taxing authorities, possible settlement of audit issues, reassessment of existing unrecognized tax benefits or the expiration of statutes of limitations. We estimate that the range of the possible change in unrecognized tax benefits within the next 12 months is between zero and a net decrease of $10 million , exclusive of penalties and interest. Other Tax Matters We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2008 through the current fiscal year. Tax laws are complex and subject to varying interpretations. Tax authorities have challenged some of our tax positions, including IRS challenges to our international transfer pricing for the periods from 2008 to 2014, and it is possible that they will challenge others. These challenges may adversely affect our effective tax rate or tax payments. 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 $168 million and $165 million at September 30, 2019 and June 30, 2019 , respectively, and is included in other assets in the condensed consolidated balance sheets. As a result of the acquisition of the Patient Recovery Business, Medtronic plc is obligated to indemnify us for certain tax exposures and transaction taxes related to periods prior to the acquisition. The indemnification receivable was $23 million and $22 million at September 30, 2019 and June 30, 2019 , respectively, and is included in other assets in the condensed consolidated balance sheet. Future adjustments to the financial statements may be necessary as final tax regulations related to U.S. Tax Reform are issued. We will assess any impact as additional guidance is issued. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9. Fair Value Measurements The following tables present the fair values for assets and (liabilities) measured on a recurring basis at: September 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Other investments (1) $ 109 $ — $ — $ 109 Forward contracts (2) — 95 — 95 June 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Other investments (1) $ 118 $ — $ — $ 118 Forward contracts (2) — 53 — 53 (1) The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 10. Financial Instruments We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk, and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk, but are not designated as hedging instruments. These derivative instruments are adjusted to fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and only enter into derivative instruments with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements. Interest Rate Risk Management We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities along with both fixed-rate and variable-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs. Currency Exchange Risk Management We conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce volatility in earnings, cash flow and net investments in certain subsidiaries to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses. Commodity Price Risk Management We are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts when possible to manage the price risk associated with certain forecasted purchases. Fair Value Hedges We enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates. These contracts are designated and qualify as fair value hedges. Accordingly, the gain or loss recorded on the pay-floating interest rate swaps is directly offset by the change in fair value of the underlying debt. Both the derivative instrument and the underlying debt are adjusted to market value at the end of each period with any resulting gain or loss recorded in interest expense, net in the condensed consolidated statements of earnings. For the three months ended September 30, 2019 and 2018 , there was no gain or loss recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt. Cash Flow Hedges We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. During the three months ended September 30, 2019 , we entered into a forward interest rate swap with a total notional amount of $50 million to hedge probable, but not firmly committed, future transactions associated with our debt. Gains and losses recognized in accumulated other comprehensive loss and reclassified into earnings were immaterial for the three months ended September 30, 2019 and 2018 . All gains and losses currently included within accumulated other comprehensive loss associated with our foreign exchange forward contracts 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. During three months ended September 30, 2019 , we entered into a ¥64.0 billion cross-currency swap maturing in 2022. During three months ended September 30, 2018, we entered into a €200 million cross-currency swap maturing in 2023. Cross-currency swaps designated as net investment hedges are marked to market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive income/(loss) until the sale or substantial liquidation of the underlying net investments. To the extent the cross-currency swaps designated as net investment hedges are not highly effective, changes in carrying value attributable to the change in spot rates are recorded in earnings. There was no ineffectiveness in our net investment hedges during the three months ended September 30, 2019 . Economic (Non-Designated) Hedges We enter into foreign currency contracts to manage our foreign exchange exposure related to sales transactions, intercompany financing transactions and other balance sheet items subject to revaluation that do not meet the requirements for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net. The gain and losses recognized in the three months ended September 30, 2019 and 2018 were immaterial. The principal currencies managed through foreign currency contracts are the euro, Canadian dollar, British pound, Japanese yen, and Chinese renminbi. Fair Value of Financial Instruments The carrying amounts of cash and equivalents, trade receivables, accounts payable, and other accrued liabilities at September 30, 2019 and June 30, 2019 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, 2019 June 30, 2019 Estimated fair value $ 8,001 $ 8,065 Carrying amount 7,991 8,031 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, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 11. Shareholders' Equity During the three months ended September 30, 2019 , we entered in an accelerated share repurchase ("ASR") program to purchase common shares for an aggregate purchase price of $350 million and received an initial delivery of 6.4 million common shares having an aggregate cost of $280 million . The average price paid per common share was $43.76 . The ASR program began on August 20, 2019 and is expected to conclude in the second quarter of fiscal 2020. We funded the repurchases with available cash and short-term borrowings. During the three months ended September 30, 2018 , we entered in an ASR program to purchase common shares for an aggregate purchase price of $600 million and received an initial delivery of 9.5 million common shares having an aggregate cost of $480 million . The average price paid per common share was $50.45 . The ASR program began on August 16, 2018 and was completed on October 25, 2018 when we received the final delivery of 2.0 million common shares. We funded the repurchases with available cash and short-term borrowings. The common shares repurchased are held in treasury to be used for general corporate purposes. Accumulated Other Comprehensive Loss The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions) Foreign Currency Translation Adjustments Unrealized Gain/(Loss) on Derivatives, net of tax Accumulated Other Comprehensive Loss Balance at June 30, 2019 $ (95 ) $ 16 $ (79 ) Other comprehensive income/(loss), before reclassifications (17 ) — (17 ) Amounts reclassified to earnings — (5 ) (5 ) Other comprehensive income/(loss), net of tax (17 ) (5 ) (22 ) Balance at September 30, 2019 $ (112 ) $ 11 $ (101 ) |
Earnings Per Share Attributable
Earnings Per Share Attributable to Cardinal Health, Inc. | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Attributable to Cardinal Health, Inc. | 12. Earnings Per Share Attributable to Cardinal Health, Inc. The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to Cardinal Health, Inc.: Three Months Ended September 30, (in millions) 2019 2018 Weighted-average common shares–basic 296 305 Effect of dilutive securities: Employee stock options, restricted share units, and performance share units — 1 Weighted-average common shares–diluted 296 306 For the three months ended September 30, 2019 , 6 million employee stock options, restricted share units and performance share units were excluded from the calculation of diluted shares outstanding, 1 million of which would be anti-dilutive as a result of the net loss for the period. The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for the three months ended September 30, 2018 were 6 million |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information Our operations are principally managed on a products and services basis and are comprised of two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. The factors for determining the reportable segments include the manner in which management evaluates performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities. 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) 2019 2018 Pharmaceutical Distribution and Specialty Solutions (1) $ 33,212 $ 31,209 Nuclear and Precision Health Solutions 216 207 Pharmaceutical segment revenue 33,428 31,416 Medical distribution and products (2) 3,446 3,380 Cardinal Health at-Home Solutions 471 421 Medical segment revenue 3,917 3,801 Total segment revenue 37,345 35,217 Corporate (3) (4 ) (4 ) Total revenue $ 37,341 $ 35,213 (1) Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services". (2) Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (3) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents revenue by geographic area: Three Months Ended September 30, (in millions) 2019 2018 United States $ 36,310 $ 34,245 International 1,035 972 Total segment revenue 37,345 35,217 Corporate (1) (4 ) (4 ) Total revenue $ 37,341 $ 35,213 (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); 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 extinguishment of debt; and 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 $3 million and $7 million for the three months ended September 30, 2019 and 2018 , respectively. In connection with the opioid litigation as discussed further in Note 7 , we recognized a pre-tax charge of $5.63 billion during the three months ended September 30, 2019 , which was retained at Corporate. In connection with the naviHealth divestiture, we recognized a pre-tax gain of $508 million during the three months ended September 30, 2018, which was retained at Corporate. The following table presents segment profit by reportable segment and Corporate: Three Months Ended September 30, (in millions) 2019 2018 Pharmaceutical $ 398 $ 409 Medical 170 135 Total segment profit 568 544 Corporate (5,832 ) 272 Total operating earnings/(loss) $ (5,264 ) $ 816 The following table presents total assets for each reportable segment and Corporate at: (in millions) September 30, June 30, Pharmaceutical $ 21,755 $ 22,446 Medical 15,462 15,284 Corporate 1,962 3,233 Total assets $ 39,179 $ 40,963 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 14. Share-Based Compensation We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. The following table provides total share-based compensation expense by type of award: Three Months Ended September 30, (in millions) 2019 2018 Restricted share unit expense $ 17 $ 14 Employee stock option expense 1 4 Performance share unit expense 2 1 Total share-based compensation $ 20 $ 19 The total tax benefit related to share-based compensation was $4 million and $5 million for the three months ended September 30, 2019 and 2018 , respectively. Restricted Share Units Restricted share units granted under the Plans generally vest in equal annual installments over three years . Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts) Restricted Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2019 2 $ 51.65 Granted 2 42.09 Vested (1 ) 60.92 Canceled and forfeited — — Nonvested at September 30, 2019 3 $ 45.29 At September 30, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested restricted share units not yet recognized was $125 million , which is expected to be recognized over a weighted-average period of two years . Stock Options Employee stock options granted under the Plans generally vest in equal annual installments over three years and are exercisable for ten years from the grant date. All stock options are exercisable at a price equal to the market value of the common shares underlying the option on the grant date. The following table summarizes all stock option transactions under the Plans: (in millions, except per share amounts) Stock Options Weighted-Average Exercise Price per Common Share Outstanding at June 30, 2019 6 $ 63.78 Granted — — Exercised — — Canceled and forfeited — — Outstanding at September 30, 2019 6 $ 63.75 Exercisable at September 30, 2019 6 $ 63.67 At September 30, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested stock options not yet recognized was $3 million , which is expected to be recognized over a weighted-average period of one year . The following tables provide additional detail related to stock options: (in millions) September 30, 2019 June 30, 2019 Aggregate intrinsic value of outstanding options at period end $ 10 $ 10 Aggregate intrinsic value of exercisable options at period end 10 10 (in years) September 30, 2019 June 30, 2019 Weighted-average remaining contractual life of outstanding options 5 5 Weighted-average remaining contractual life of exercisable options 5 5 Performance Share Units Performance share units vest over a three -year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 240 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts) Performance Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2019 0.9 $ 51.45 Granted 0.5 43.68 Vested (0.1 ) 48.40 Canceled and forfeited (0.1 ) 50.59 Nonvested at September 30, 2019 1.2 $ 50.84 At September 30, 2019 , the total pre-tax compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized was $25 million , which is expected to be recognized over a weighted-average period of three 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, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our condensed consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. Investments in business entities in which we do not have control, but have the ability to exercise significant influence over operating and financial policies, are accounted for using the equity method. Refer to Note 4 for further information on our equity method investments. References to "we," "our," and similar pronouns in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (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 2020 and 2019 in these condensed consolidated financial statements are to the fiscal years ending or ended June 30, 2020 and June 30, 2019 , respectively. Our condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commission ("SEC") instructions to Quarterly Reports on Form 10-Q and include the information and disclosures required by accounting principles generally accepted in the United States ("GAAP") for interim financial reporting. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect amounts reported in the condensed consolidated financial statements and accompanying notes. Actual amounts may differ from these estimated amounts. In our opinion, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Except as disclosed elsewhere in this Form 10-Q, all such adjustments are of a normal and recurring nature. To conform to the current year presentation, certain prior year amounts have been reclassified. In addition, financial results presented for this fiscal 2020 interim period are not necessarily indicative of the results that may be expected for the full fiscal year ending June 30, 2020 . 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, 2019 (the " 2019 Form 10-K"). |
Recent Financial Accounting Standards | Recently Adopted Financial Accounting Standards Derivatives and Hedging In October 2018, the Financial Accounting Standards Board ("FASB") issued amended accounting guidance related to derivatives and hedging which permits the use of the Secured Overnight Financing Rate ("SOFR") Overnight Index Swap ("OIS") as a Benchmark Interest Rate for Hedge Accounting Purposes. This guidance is effective beginning the first quarter of fiscal 2020 and must be applied on a prospective basis. The adoption did not have a material impact on our consolidated financial statements. Leases In February 2016, the FASB issued amended accounting guidance that requires lessees to recognize most leases on the balance sheet as a lease liability and corresponding right-of-use asset. The guidance also requires disclosures that meet the objective of enabling financial statement users to assess the amount, timing and uncertainty of cash flows arising from leases. We adopted this guidance during the first quarter of fiscal 2020 and elected the transition option which allows us to apply the guidance prospectively. The adoption resulted in the recognition of lease liabilities in the amount of $422 million and did not have a material impact on our results of operations, liquidity or debt covenant compliance under our current debt agreements. The majority of our lease spend relates to certain real estate with the remaining lease spend primarily related to vehicles and equipment. The adoption required certain changes to our systems and processes. S ee Note 5 for additional information regarding leases. Recently Issued Financial Accounting Standards Not Yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued amended accounting guidance that will require entities to measure credit losses on trade and other receivables, held-to-maturity debt securities, loans and other instruments using an "expected credit loss" model that considers historical experience, current conditions and reasonable supportable forecasts. This guidance also requires that credit losses on available for-sale debt securities with unrealized losses be recognized as allowances rather than as deductions in the amortized cost of the securities. This guidance will be effective for us in the first quarter of fiscal 2021. We are currently evaluating the impact of adoption on our consolidated financial statements. |
Restructuring and Employee Se_2
Restructuring and Employee Severance (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 Employee-related costs (1) $ 20 $ 29 Facility exit and other costs (2) 10 3 Total restructuring and employee severance $ 30 $ 32 (1) Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. (2) Facility exit and other costs primarily consist of product distribution and lease contract termination costs, lease costs associated with vacant facilities, accelerated depreciation, equipment relocation costs, project consulting fees, costs associated with restructuring our delivery of information technology infrastructure services and certain other divestiture-related costs. |
Schedule of Activity Related to Liabilities Associated with Restructuring and Employee Severance | The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions) Employee- Related Costs Facility Exit and Other Costs Total Balance at June 30, 2019 $ 64 $ 8 $ 72 Additions 19 6 25 Payments and other adjustments (10 ) (2 ) (12 ) Balance at September 30, 2019 $ 73 $ 12 $ 85 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Segment | The following table summarizes the changes in the carrying amount of goodwill by segment and in total: (in millions) Pharmaceutical Medical Total Balance at June 30, 2019 $ 2,663 $ 5,715 $ 8,378 Goodwill acquired, net of purchase price adjustments (5 ) — (5 ) Foreign currency translation adjustments and other — (13 ) (13 ) Balance at September 30, 2019 $ 2,658 $ 5,702 $ 8,360 |
Schedule of Definite and Indefinite-Lived Intangible Assets | The following tables summarize other intangible assets by class at: September 30, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Weighted- Average Remaining Amortization Period (Years) Indefinite-life intangibles: IPR&D, trademarks and other $ 22 $ — $ 22 N/A Total indefinite-life intangibles 22 — 22 N/A Definite-life intangibles: Customer relationships 3,555 1,592 1,963 13 Trademarks, trade names and patents 673 307 366 13 Developed technology and other 1,603 656 947 11 Total definite-life intangibles 5,831 2,555 3,276 12 Total other intangible assets $ 5,853 $ 2,555 $ 3,298 N/A June 30, 2019 (in millions) Gross Intangible Accumulated Amortization Net Intangible Indefinite-life intangibles: IPR&D, trademarks and other $ 22 $ — $ 22 Total indefinite-life intangibles 22 — 22 Definite-life intangibles: Customer relationships 3,562 1,517 2,045 Trademarks, trade names and patents 672 295 377 Developed technology and other 1,602 616 986 Total definite-life intangibles 5,836 2,428 3,408 Total other intangible assets $ 5,858 $ 2,428 $ 3,430 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Costs | The following table summarizes the components of lease cost: Three Months Ended September 30, (in millions) 2019 Operating lease cost $ 31 Finance lease cost Amortization of right-of-use assets 4 Total finance lease cost 4 Variable lease cost 1 Total lease cost $ 36 |
Leases Supplemental Balance Sheet Information | (in millions) September 30, 2019 Operating Leases Operating lease assets $ 394 Current portion of operating lease liabilities 103 Operating lease liabilities 312 Total operating lease liabilities 415 Finance Leases Property and equipment, net 18 Current portion of long-term obligations 5 Long-term obligations, less current portion 12 Total finance lease liabilities $ 17 |
Schedule of Lease Payments | upplemental cash flow information related to leases: Three Months Ended September 30, (in millions) 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 31 Financing cash flows paid for finance lease 2 Non-cash right-of-use assets obtained in exchange for lease obligations: New operating leases 15 New finance leases 17 Amended lease standard adoption impact as of July 1, 2019 (1) 400 |
Schedule of Future Lease Payments | Future lease payments under non-cancellable leases as of September 30, 2019 were as follows: (in millions) Operating Leases Finance Leases Total Years Ending September 30, Remainder of 2020 $ 91 $ 4 $ 95 2021 101 6 107 2022 79 4 83 2023 58 4 62 2024 41 1 42 Thereafter 149 — 149 Total future lease payments 519 19 538 Less: leases not yet commenced (1) 61 — 61 Less: imputed interest 43 2 45 Total lease liabilities $ 415 $ 17 $ 432 (1) As of September 30, 2019, we had certain leases that were executed but did not have control of the underlying assets; therefore, the lease liabilities and right-of-use assets are not recorded in the condensed consolidated balance sheets. As previously disclosed in our fiscal 2019 Form 10-K under the prior accounting guidance, the future minimum rental payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2019 for fiscal 2020 through 2024 and thereafter were as follows: $126 million , $100 million , $76 million , $54 million , $33 million and $94 million . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair values for assets and (liabilities) measured on a recurring basis at: September 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Other investments (1) $ 109 $ — $ — $ 109 Forward contracts (2) — 95 — 95 June 30, 2019 (in millions) Level 1 Level 2 Level 3 Total Assets: Other investments (1) $ 118 $ — $ — $ 118 Forward contracts (2) — 53 — 53 (1) The other investments balance includes investments in mutual funds, which are used to offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. (2) The fair value of interest rate swaps, foreign currency contracts, commodity contracts, and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities, and deferred income taxes and other liabilities within the condensed consolidated balance sheets. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Estimated Fair Value of Long-term Obligations and Other Short-term Borrowings Compared to the Respective Carrying Amount | The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at: (in millions) September 30, 2019 June 30, 2019 Estimated fair value $ 8,001 $ 8,065 Carrying amount 7,991 8,031 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Changes in the Balance of Accumulated Other Comprehensive Loss by Component and in Total | Accumulated Other Comprehensive Loss The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions) Foreign Currency Translation Adjustments Unrealized Gain/(Loss) on Derivatives, net of tax Accumulated Other Comprehensive Loss Balance at June 30, 2019 $ (95 ) $ 16 $ (79 ) Other comprehensive income/(loss), before reclassifications (17 ) — (17 ) Amounts reclassified to earnings — (5 ) (5 ) Other comprehensive income/(loss), net of tax (17 ) (5 ) (22 ) Balance at September 30, 2019 $ (112 ) $ 11 $ (101 ) |
Earnings Per Share Attributab_2
Earnings Per Share Attributable to Cardinal Health, Inc. (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Common Shares Used to Compute Basic and Diluted Earnings Per Share | The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to Cardinal Health, Inc.: Three Months Ended September 30, (in millions) 2019 2018 Weighted-average common shares–basic 296 305 Effect of dilutive securities: Employee stock options, restricted share units, and performance share units — 1 Weighted-average common shares–diluted 296 306 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 United States $ 36,310 $ 34,245 International 1,035 972 Total segment revenue 37,345 35,217 Corporate (1) (4 ) (4 ) Total revenue $ 37,341 $ 35,213 (1) Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. |
Revenue by Reportable Segment | |
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) 2019 2018 Pharmaceutical Distribution and Specialty Solutions (1) $ 33,212 $ 31,209 Nuclear and Precision Health Solutions 216 207 Pharmaceutical segment revenue 33,428 31,416 Medical distribution and products (2) 3,446 3,380 Cardinal Health at-Home Solutions 471 421 Medical segment revenue 3,917 3,801 Total segment revenue 37,345 35,217 Corporate (3) (4 ) (4 ) Total revenue $ 37,341 $ 35,213 (1) Products and services offered by our Specialty Solutions division are referred to as “specialty pharmaceutical products and services". (2) Comprised of all Medical segment businesses except for Cardinal Health at-Home Solutions division. (3) 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) 2019 2018 Pharmaceutical $ 398 $ 409 Medical 170 135 Total segment profit 568 544 Corporate (5,832 ) 272 Total operating earnings/(loss) $ (5,264 ) $ 816 |
Assets by Reportable Segment | The following table presents total assets for each reportable segment and Corporate at: (in millions) September 30, June 30, Pharmaceutical $ 21,755 $ 22,446 Medical 15,462 15,284 Corporate 1,962 3,233 Total assets $ 39,179 $ 40,963 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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) 2019 2018 Restricted share unit expense $ 17 $ 14 Employee stock option expense 1 4 Performance share unit expense 2 1 Total share-based compensation $ 20 $ 19 |
Schedule of Stock Option Transactions Under the Plans | The following table summarizes all stock option transactions under the Plans: (in millions, except per share amounts) Stock Options Weighted-Average Exercise Price per Common Share Outstanding at June 30, 2019 6 $ 63.78 Granted — — Exercised — — Canceled and forfeited — — Outstanding at September 30, 2019 6 $ 63.75 Exercisable at September 30, 2019 6 $ 63.67 |
Schedule of Additional Data Related to Stock Option Activity | The following tables provide additional detail related to stock options: (in millions) September 30, 2019 June 30, 2019 Aggregate intrinsic value of outstanding options at period end $ 10 $ 10 Aggregate intrinsic value of exercisable options at period end 10 10 (in years) September 30, 2019 June 30, 2019 Weighted-average remaining contractual life of outstanding options 5 5 Weighted-average remaining contractual life of exercisable options 5 5 |
Schedule of Transactions Related to Restricted Share Units Under the Plans | The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts) Restricted Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2019 2 $ 51.65 Granted 2 42.09 Vested (1 ) 60.92 Canceled and forfeited — — Nonvested at September 30, 2019 3 $ 45.29 |
Schedule of Transactions Related to Performance Share Units Under the Plans | The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts) Performance Share Units Weighted-Average Grant Date Fair Value per Share Nonvested at June 30, 2019 0.9 $ 51.45 Granted 0.5 43.68 Vested (0.1 ) 48.40 Canceled and forfeited (0.1 ) 50.59 Nonvested at September 30, 2019 1.2 $ 50.84 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies Narrative (Details) $ in Millions | Jul. 01, 2019USD ($) |
Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
Lease Liabilities established as a Result of the adoption of ASC 842 | $ 422 |
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, 2019 | Sep. 30, 2018 | |
Restructuring Charges [Abstract] | ||
Employee-related costs | $ 20 | $ 29 |
Facility Exit and Other Costs | 10 | 3 |
Total restructuring and employee severance | $ 30 | $ 32 |
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, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | $ 72 |
Additions | 25 |
Payments and other adjustments | (12) |
Ending Balance | 85 |
Employee- Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 64 |
Additions | 19 |
Payments and other adjustments | (10) |
Ending Balance | 73 |
Facility Exit and Other Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning Balance | 8 |
Additions | 6 |
Payments and other adjustments | (2) |
Ending Balance | $ 12 |
Restructuring and Employee Se_5
Restructuring and Employee Severance Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 25 | |
Severance Costs | 20 | $ 29 |
Facility Exit and Other Costs | 10 | 3 |
Enterprise Wide Cost Saving Measures [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 20 | $ 26 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Schedule of Goodwill by Reportable Segment) (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Line Items] | |
Goodwill, Transfers | $ (5) |
Goodwill [Roll Forward] | |
Beginning balance | 8,378 |
Foreign currency translation adjustments and other | 13 |
Ending balance | 8,360 |
Pharmaceutical | |
Goodwill [Line Items] | |
Goodwill, Transfers | (5) |
Goodwill [Roll Forward] | |
Beginning balance | 2,663 |
Foreign currency translation adjustments and other | 0 |
Ending balance | 2,658 |
Medical | |
Goodwill [Line Items] | |
Goodwill, Transfers | 0 |
Goodwill [Roll Forward] | |
Beginning balance | 5,715 |
Foreign currency translation adjustments and other | 13 |
Ending balance | $ 5,702 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Schedule of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | $ 22 | $ 22 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 5,831 | 5,836 |
Accumulated Amortization | 2,555 | 2,428 |
Net Intangible | $ 3,276 | 3,408 |
Weighted- Average Remaining Amortization Period (Years) | 12 years | |
Gross Intangible, Total other intangible assets | $ 5,853 | 5,858 |
Net Intangible, Total other intangible assets | 3,298 | 3,430 |
IPR&D, trademarks and other | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangible | 22 | 22 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | 3,555 | 3,562 |
Accumulated Amortization | 1,592 | 1,517 |
Net Intangible | $ 1,963 | 2,045 |
Weighted- Average Remaining Amortization Period (Years) | 13 years | |
Trademarks, trade names and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 673 | 672 |
Accumulated Amortization | 307 | 295 |
Net Intangible | $ 366 | 377 |
Weighted- Average Remaining Amortization Period (Years) | 13 years | |
Developed technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible | $ 1,603 | 1,602 |
Accumulated Amortization | 656 | 616 |
Net Intangible | $ 947 | $ 986 |
Weighted- Average Remaining Amortization Period (Years) | 11 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 129 | $ 133 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 382 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 442 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 408 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 358 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 328 |
Investments Narrative (Details)
Investments Narrative (Details) - naviHealth [Member] - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Aug. 01, 2018 | |
Investment [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 98.00% | ||||
Proceeds from Divestiture of Businesses | $ 737 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 44.00% | ||||
Partnership Indirect Ownership | 100.00% | ||||
Pre-Tax Gain on Divestiture | $ 508 | ||||
Equity Method Investments | $ 329 | $ 334 |
Leases Narative (Details)
Leases Narative (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 126 | ||
Reclassification of deferred rent in accordance with ASC 842 | $ 22 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years 2 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.00% | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 100 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 76 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 54 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 33 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | $ 94 | ||
Minimum | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Maximum | |||
Lessee, Operating Lease, Term of Contract | 23 years |
Leases Summary of Lease Costs (
Leases Summary of Lease Costs (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 31 |
Finance Lease, Right-of-Use Asset, Amortization | 4 |
Total Finance Lease Cost | 4 |
Variable Lease, Cost | 1 |
Lease, Cost | $ 36 |
Leases Summary of Lease Payment
Leases Summary of Lease Payments (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Sep. 30, 2019 |
Operating cash flows paid for operating leases | $ 31 | |
Financing cash flows paid for finance lease | 2 | |
New Operating Leases | 15 | |
New financing leases | $ 17 | |
ASC 842 | ||
Amended lease standard adoption impact as of July 1, 2019 | $ 400 |
Leases Summary of Minimum Lease
Leases Summary of Minimum Lease Committments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Remainder of 2020 | $ 95 |
2021 | 107 |
2022 | 83 |
2023 | 62 |
2024 | 42 |
Thereafter | 149 |
Total future lease payments | 538 |
Less: leases not yet commenced (1) | 61 |
Less: imputed interest | 45 |
Total lease liabilities | 415 |
Total lease liabilities | 17 |
Total lease liabilities | 432 |
Operating Lease [Member] | |
Remainder of 2020 | 91 |
2021 | 101 |
2022 | 79 |
2023 | 58 |
2024 | 41 |
Thereafter | 149 |
Total future lease payments | 519 |
Less: leases not yet commenced (1) | 61 |
Less: imputed interest | 43 |
Total lease liabilities | 415 |
Finance Lease [Member] | |
Remainder of 2020 | 4 |
2021 | 6 |
2022 | 4 |
2023 | 4 |
2024 | 1 |
Thereafter | 0 |
Total future lease payments | 19 |
Less: leases not yet commenced (1) | 0 |
Less: imputed interest | 2 |
Total lease liabilities | $ 17 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 394 |
Current portion of operating lease liabilities | 103 |
Operating lease liabilities | 312 |
Total operating lease liabilities | 415 |
Net property, plant and equipment | 18 |
Current portion of long-term debt | 5 |
Long-term debt | 12 |
Total finance lease liabilities | $ 17 |
Long-Term Obligations and Oth_2
Long-Term Obligations and Other Short-Term Borrowings Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||
Debt and Lease Obligation | $ 7,991 | $ 8,031 |
Accounts Payable, Current | 19,724 | 21,535 |
Notes Payable Repurchased | $ 74 | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,000 | |
Short Term Credit Facilities Member | Committed Receivables Sales Facility Program [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Litigation Narrative (Details) $ in Millions | Nov. 01, 2019StateAGplaintifflawsuit | Sep. 30, 2019USD ($) | Oct. 21, 2019USD ($) |
Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Opioid Total Settlement, Cuyahoga and Summit Counties | $ 215 | ||
Opioid Litigation, less Cuyahoga and Summit Counties [Member] | |||
Loss Contingencies [Line Items] | |||
litigation settlement liability recorded | $ 5,560 | ||
Cash Component For Settlement Framework, Term | 18 years | ||
Cuyahoga and Summit County [Member] | |||
Loss Contingencies [Line Items] | |||
litigation settlement liability recorded | $ 66 | ||
Opioid Lawsuits [Member] | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Lawsuits, Number | 2,400 | ||
Lawsuits Against Distributors | StateAG | 21 | ||
InvestigationbyMultitateTaskForce | StateAG | 43 | ||
CVS Health | |||
Loss Contingencies [Line Items] | |||
Long-term Purchase Commitment, Period | 10 years | ||
Maximum quarterly payment | $ 45.6 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, Net of Insurance Recoveries | 414 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Loss Contingency Accrual, Net of Insurance Recoveries | 836 | ||
Alameda County [Member] | Product Liability Lawsuits [Member] | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Lawsuits, Number | lawsuit | 280 | ||
Number of plaintiffs | plaintiff | 3,463 | ||
Other Jurisdictions [Member] | Product Liability Lawsuits [Member] | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Lawsuits, Number | plaintiff | 24 | ||
Number of plaintiffs | plaintiff | 28 | ||
Total Opioid Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
litigation settlement liability recorded | 5,630 | ||
Opioid Settlement Framework [Member] | |||
Loss Contingencies [Line Items] | |||
litigation settlement liability recorded | $ 5,140 | ||
Private Parties [Member] | Opioid Lawsuits [Member] | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Lawsuits, Number | lawsuit | 325 | ||
Class Action Lawsuits [Member] | Private Parties [Member] | Opioid Lawsuits [Member] | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Loss Contingency, Lawsuits, Number | lawsuit | 97 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Income Taxes | |||
Income Tax Expense (Benefit) | $ 423 | $ (142) | |
Effective Income Tax Rate Reconciliation, Percent | 7.90% | 19.40% | |
Unrecognized tax benefits | $ 943 | $ 456 | |
Unrecognized tax benefits that would impact effective tax rate | 795 | 303 | |
Unrecognized tax benefits, interest and penalties accrued | 126 | 122 | |
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 | $ 10 | ||
Federal | Minimum | |||
Income Taxes | |||
Open Tax Year | 2008 | ||
Total Opioid Litigation [Member] | |||
Income Taxes | |||
Estimated Litigation Liability | $ 5,630 | ||
Income Tax Expense (Benefit) | 487 | ||
Unrecognized tax benefits that would impact effective tax rate | 468 | ||
Patient Recovery Business [Member] | |||
Income Taxes | |||
Indemnification receivable | 23 | 22 | |
CareFusion [Member] | |||
Income Taxes | |||
Indemnification receivable | $ 168 | $ 165 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Assets: | ||
Other investments | $ 109 | $ 118 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 95 | 53 |
Level 1 | ||
Assets: | ||
Other investments | 109 | 118 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Level 2 | ||
Assets: | ||
Other investments | 0 | 0 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | 95 | 53 |
Level 3 | ||
Assets: | ||
Other investments | 0 | 0 |
Liabilities: | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 0 | $ 0 |
Financial Instruments Narrative
Financial Instruments Narrative (Details) € in Millions, ¥ in Millions, $ in Millions | 3 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2019JPY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018EUR (€) | |
Derivative [Line Items] | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | $ 0 | |||
Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 50 | |||
Currency Swap [Member] | ||||
Derivative [Line Items] | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | ¥ 64,000 | € 200 |
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, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying amount | $ 7,991 | $ 8,031 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair value | $ 8,001 | $ 8,065 |
Shareholders' Equity Narrative
Shareholders' Equity Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Oct. 25, 2018 | |
Class of Stock [Line Items] | |||
Payments for Repurchase of Common Stock | $ 350 | $ 600 | |
Final Shares Received from ASR Program | 2 | ||
Treasury Shares | |||
Class of Stock [Line Items] | |||
Payments for Repurchase of Common Stock | $ 280 | $ 480 | |
Treasury shares acquired (using cost method), shares | 6.4 | 9.5 | |
Payments for Repurchase of Common Stock | $ 280 | $ 480 | |
Treasury shares acquired, average price per share (in usd per share) | $ 43.76 | $ 50.45 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in the Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 6,330 | $ 6,059 |
Total other comprehensive income/(loss), net of tax | (22) | (4) |
Balance at end of period | 903 | 5,913 |
Foreign Currency Translation Adjustments | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (95) | |
Other comprehensive income/(loss), before reclassifications | (17) | |
Amounts reclassified to earnings | 0 | |
Total other comprehensive income/(loss), net of tax | (17) | |
Balance at end of period | (112) | |
Unrealized Gain/(Loss) on Derivatives, net of tax | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 16 | |
Other comprehensive income/(loss), before reclassifications | 0 | |
Amounts reclassified to earnings | (5) | |
Total other comprehensive income/(loss), net of tax | (5) | |
Balance at end of period | 11 | |
Accumulated Other Comprehensive Loss | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (79) | |
Total other comprehensive income/(loss), net of tax | (22) | |
Balance at end of period | (101) | |
AOCI Attributable to Parent | ||
AOCI, Net of Tax [Roll Forward] | ||
Balance at beginning of period | (79) | (92) |
Other comprehensive income/(loss), before reclassifications | (17) | |
Amounts reclassified to earnings | (5) | |
Balance at end of period | $ (101) | $ (96) |
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, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted-average common shares–basic (in shares) | 296 | 305 |
Effect of dilutive securities: | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 1 |
Weighted-average common shares–diluted (in shares) | 296 | 306 |
Earnings Per Share Attributab_4
Earnings Per Share Attributable to Cardinal Health, Inc. Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 6 | |
shares that would be antidilutive as a result of net loss | 1 | |
Potentially dilutive employee stock options, restricted share units and performance share units that were antidilutive (in shares) | 6 |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2019USD ($)segmentReportable_Segments | Sep. 30, 2018USD ($) | |
Number of Reportable Segments | Reportable_Segments | 2 | |
Number of operating segments | segment | 2 | |
Project Costs On Investment And Other Spending | $ 3 | $ 7 |
naviHealth [Member] | ||
Pre-Tax Gain on Divestiture | $ 508 | |
Total Opioid Litigation [Member] | ||
Estimated Litigation Liability | $ 5,630 |
Segment Information (Revenue by
Segment Information (Revenue by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 37,341 | $ 35,213 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 37,345 | 35,217 |
Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,428 | 31,416 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,917 | 3,801 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total revenue | (4) | (4) |
Nuclear Precision Health Services [Member] | Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 216 | 207 |
Pharmaceutical Distribution and Specialty [Member] | Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,212 | 31,209 |
Medical distribution and products [Member] | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,446 | 3,380 |
Cardinal Health At Home [Member] | Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 471 | $ 421 |
Segment Information (Segment Pr
Segment Information (Segment Profit by Reportable Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | $ (5,264) | $ 816 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 568 | 544 |
Operating Segments | Pharmaceutical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 398 | 409 |
Operating Segments | Medical | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | 170 | 135 |
Corporate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Total operating earnings | $ (5,832) | $ 272 |
Segment Information (Assets by
Segment Information (Assets by Reportable Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 39,179 | $ 40,963 |
Operating Segments | Pharmaceutical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 21,755 | 22,446 |
Operating Segments | Medical | ||
Segment Reporting Information [Line Items] | ||
Total assets | 15,462 | 15,284 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,962 | $ 3,233 |
Segment Information Disaggregat
Segment Information Disaggregated Revenue Within Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 37,341 | $ 35,213 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 37,345 | 35,217 |
Operating Segments | Pharmaceutical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 33,428 | 31,416 |
Operating Segments | Pharmaceutical | Nuclear Precision Health Services [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 216 | 207 |
Operating Segments | Pharmaceutical | Pharmaceutical Distribution and Specialty [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 33,212 | 31,209 |
Operating Segments | Medical | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 3,917 | 3,801 |
Operating Segments | Medical | Cardinal Health At Home [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 471 | 421 |
Operating Segments | Medical | Medical distribution and products [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 3,446 | 3,380 |
Corporate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ (4) | $ (4) |
Segment Information Revenue by
Segment Information Revenue by Geographical Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Revenue by Geographic [Line Items] | ||
Revenue | $ 37,341 | $ 35,213 |
UNITED STATES | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 36,310 | 34,245 |
Non-US [Member] | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 1,035 | 972 |
Operating Segments | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | 37,345 | 35,217 |
Corporate | ||
Segment Revenue by Geographic [Line Items] | ||
Revenue | $ (4) | $ (4) |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefit related to share-based compensation | $ 4 | $ 5 |
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 | $ 3 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year | |
Exercisable period of plans (in years) | 10 years | |
Restricted Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 125 | |
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 | $ 25 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | |
Performance Share Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target performance goal (as a percent) | 0.00% | |
Performance Share Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target performance goal (as a percent) | 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, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | $ 20 | $ 19 |
Restricted Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | 17 | 14 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | 1 | 4 |
Performance Share Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share-based compensation | $ 2 | $ 1 |
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, 2019$ / sharesshares | |
Stock Options | |
Outstanding at beginning of period (in shares) | shares | 6 |
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 | 6 |
Exercisable at end of period (in shares) | shares | 6 |
Weighted-Average Exercise Price per Common Share | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 63.78 |
Granted (in usd per share) | $ / shares | 0 |
Exercised (in usd per share) | $ / shares | 0 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Outstanding at end of period (in usd per share) | $ / shares | 63.75 |
Exercisable at end of period (in usd per share) | $ / shares | $ 63.67 |
Share-Based Compensation (Sch_3
Share-Based Compensation (Schedule of Additional Data Related to Stock Options) (Details) - Stock Options - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 3 | |
Aggregate intrinsic value of outstanding options at period end | 10 | $ 10 |
Aggregate intrinsic value of exercisable options at period end | $ 10 | $ 10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | 5 years |
Share-Based Compensation (Sch_4
Share-Based Compensation (Schedule of All Transactions Related to Restricted Share Units Under the Plans) (Details) - Restricted Share Units shares in Millions | 3 Months Ended |
Sep. 30, 2019$ / 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 | 2 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (1) |
Canceled and forfeited (in shares) | shares | 0 |
Nonvested at end of period (in shares) | shares | 3 |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 51.65 |
Granted (in usd per share) | $ / shares | 42.09 |
Vested (in usd per share) | $ / shares | 60.92 |
Canceled and forfeited (in usd per share) | $ / shares | 0 |
Nonvested at end of period (in usd per share) | $ / shares | $ 45.29 |
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, 2019USD ($)$ / sharesshares | |
Performance Share Units | |
Nonvested at beginning of period (in shares) | shares | 0.9 |
Granted (in shares) | shares | 0.5 |
Vested (in shares) | shares | (0.1) |
Canceled and forfeited (in shares) | shares | (0.1) |
Nonvested at end of period (in shares) | shares | 1.2 |
Weighted-Average Grant Date Fair Value per Share | |
Nonvested at beginning of period (in usd per share) | $ / shares | $ 51.45 |
Granted (in usd per share) | $ / shares | 43.68 |
Vested (in usd per share) | $ / shares | 48.40 |
Canceled and forfeited (in usd per share) | $ / shares | 50.59 |
Nonvested at end of period (in usd per share) | $ / shares | $ 50.84 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 25 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years |