XML 47 R13.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended
--- | ---
Jun. 30, 2016
Debt Disclosure [Abstract] |
Long-Term Obligations and Other Short-Term Borrowings | 6. Long-Term Obligations and Other Short-Term Borrowings The following table summarizes long-term obligations and other short-term borrowings at June 30:
(in millions) | 2016 |  | 2015
1.7% Notes due 2018 | $ | 405 |  |  | $ | 404 |
1.9% Notes due 2017 | 251 |  |  | 251 |
1.95% Notes due 2018 | 554 |  |  | 550 |
2.4% Notes due 2019 | 461 |  |  | 450 |
3.2% Notes due 2022 | 253 |  |  | 249 |
3.2% Notes due 2023 | 549 |  |  | 549 |
3.5% Notes due 2024 | 398 |  |  | 398 |
3.75% Notes due 2025 | 505 |  |  | 500 |
4.5% Notes due 2044 | 345 |  |  | 345 |
4.6% Notes due 2043 | 349 |  |  | 349 |
4.625% Notes due 2020 | 528 |  |  | 524 |
4.9% Notes due 2045 | 450 |  |  | 450 |
7.0% Debentures due 2026 | 124 |  |  | 124 |
7.8% Debentures due 2016 | 37 |  |  | 37 |
Other obligations | 330 |  |  | 312 |
Total | $ | 5,539 |  |  | $ | 5,492 |
Less: current portion of long-term obligations and other short-term borrowings | 587 |  |  | 281 |
Long-term obligations, less current portion | $ | 4,952 |  |  | $ | 5,211 |
Maturities of existing long-term obligations and other short-term borrowings for fiscal 2017 through 2021 and thereafter are as follows: $587 million, $982 million, $3 million, $463 million, $529 million and $2,975 million. Long-Term Debt The 1.7%, 1.9%, 1.95%, 2.4%, 3.2%, 3.2%, 3.5%, 3.75%, 4.5%, 4.6%, 4.625% and 4.9% 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. The 7.0% and 7.8% Debentures represent unsecured obligations of Allegiance Corporation (a wholly-owned subsidiary), which Cardinal Health, Inc. has guaranteed. None of these obligations are subject to a sinking fund and the Allegiance obligations are not redeemable prior to maturity. 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 $17 billion. In June 2015, we sold $550 million aggregate principal amount of 1.95% Notes that mature on June 15, 2018, $500 million aggregate principal amount of 3.75% Notes that mature on September 15, 2025, and $450 million aggregate principal amount of 4.9% Notes that mature on September 15, 2045. We used the net proceeds from the offering to pay part of the purchase price to acquire Harvard Drug on July 2, 2015 and Cordis on October 2, 2015, as discussed further in Note 2. In November 2014, we sold $450 million aggregate principal amount of 2.4% Notes that mature on November 15, 2019, $400 million aggregate principal amount of 3.5% Notes that mature on November 15, 2024 and $350 million aggregate principal amount of 4.5% Notes that mature on November 15, 2044. In December 2014, we used the net proceeds from the November 2014 offering, together with cash on hand, to redeem all of the outstanding 4.0% Notes due 2015, 5.8% Notes due 2016, 5.85% Notes due 2017 and 6.0% Notes due 2017 at a redemption price equal to 100% of the principal amount and any accrued but unpaid interest, plus the applicable make-whole premium. As a result of the redemption, we incurred a loss on the extinguishment of debt of $60 million ($37 million, net of tax), which included a make-whole premium of $80 million, write-off of $2 million of unamortized debt issuance costs, and an offsetting $22 million fair value adjustment to the respective debt related to previously terminated interest rate swaps. The 1.7% Notes due 2018, 1.9% Notes due 2017, 1.95% Notes due 2018, 2.4% Notes due 2019, 3.2% Notes due 2022, 3.2% Notes due 2023, 3.5% Notes due 2024, 3.75% Notes due 2025, 4.5% Notes due 2044, 4.6% Notes due 2043, 4.625% Notes due 2020 and 4.9% Notes due 2045 require us to offer to purchase the notes at 101% of the principal amount plus accrued and unpaid interest if we undergo a change of control, as defined in the notes, and if the notes receive specified ratings below investment grade by each of Standard & Poors Ratings Services, Moodys Investors Service, Inc. and Fitch Ratings. Other Financing Arrangements In addition to cash and cash equivalents, our sources of liquidity include a revolving credit facility, which we increased from $1.5 billion at June 30, 2015 to $1.75 billion at June 30, 2016 and a commercial paper program of up to $1.5 billion, backed by the revolving credit facility. The revolving credit facility exists largely to support issuances of commercial paper as well as other short-term borrowings for general corporate purposes. We had no outstanding balance under the revolving credit facility at June 30, 2016 and 2015, respectively. Availability on the revolving credit facility was reduced by outstanding letters of credit of $14 million and zero at June 30, 2016 and 2015, respectively. We had no outstanding borrowings from the commercial paper program at June 30, 2016 and 2015, respectively. On November 3, 2014, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC ("CHF") until November 3, 2017 and increased the size of the facility from $700 million to $950 million. During fiscal 2016, we reduced the size of the committed receivables sales facility program from $950 million to $700 million in connection with the increase of credit under the revolving credit facility as noted above. 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. We had no outstanding balance under the committed receivable sales facility program at June 30, 2016 and 2015. Availability on the committed receivable sales facility program was reduced by outstanding letters of credit of $40 million and $41 million on June 30, 2016 and 2015, respectively. Our revolving credit facility and committed receivables sales facility program require us to maintain a consolidated leverage ratio of no more than 3.25-to-1 and our committed receivables sales facility also requires us to maintain a consolidated interest coverage ratio, as of the end of any calendar quarter, of at least 4-to-1. As of June 30, 2016, we were in compliance with these financial covenants. We also maintain other short-term credit facilities and an unsecured line of credit that allowed for borrowings up to $699 million and $439 million at June 30, 2016 and 2015, respectively. The $330 million and $312 million balance of other obligations at June 30, 2016 and 2015, respectively, consisted of short-term borrowings and capital leases.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration