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Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended
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Jun. 30, 2018
Debt Disclosure [Abstract] |
Long-Term Obligations and Other Short-Term Borrowings | 7. 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) (1) | 2018 |  | 2017
1.7% Notes due 2018 | $ | — |  |  | $ | 400 |
1.95% Notes due 2018 | — |  |  | 547 |
1.948% Notes due 2019 | 998 |  |  | 996 |
2.4% Notes due 2019 | 448 |  |  | 453 |
4.625% Notes due 2020 | 514 |  |  | 519 |
2.616% Notes due 2022 | 1,143 |  |  | 1,142 |
3.2% Notes due 2022 | 243 |  |  | 248 |
Floating Rate Notes due 2022 | 348 |  |  | 347 |
3.2% Notes due 2023 | 525 |  |  | 544 |
3.079% Notes due 2024 | 742 |  |  | 744 |
3.5% Notes due 2024 | 390 |  |  | 396 |
3.75% Notes due 2025 | 460 |  |  | 481 |
3.41% Notes due 2027 | 1,340 |  |  | 1,340 |
4.6% Notes due 2043 | 346 |  |  | 346 |
4.5% Notes due 2044 | 342 |  |  | 341 |
4.9% Notes due 2045 | 445 |  |  | 445 |
4.368% Notes due 2047 | 594 |  |  | 594 |
7.0% Debentures due 2026 | 124 |  |  | 124 |
Other obligations | 11 |  |  | 388 |
Total | 9,013 |  |  | 10,395 |
Less: current portion of long-term obligations and other short-term borrowings | 1,001 |  |  | 1,327 |
Long-term obligations, less current portion | $ | 8,012 |  |  | $ | 9,068 |
(1) Maturities are presented on a calendar year basis. Maturities of existing long-term obligations and other short-term borrowings for fiscal 2019 through 2023 and thereafter are as follows: $1.0 billion, $452 million, $516 million, $1.7 billion, $526 million and $4.8 billion. Long-Term Debt 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. The 7.0% 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 $19.7 billion. In June 2018, we repaid the full principal of the 1.95% Notes due 2018 at maturity for $550 million. In July 2017, we redeemed the 1.7% Notes due 2018 early in full with a portion of the proceeds from the June 2017 issuance for $400 million. In June 2017, we issued additional debt with the aggregate principal amount of $5.2 billion to fund a portion of the acquisition of the Patient Recovery Business from Medtronic, which closed on July 29, 2017, to redeem the 1.7% Notes due 2018 and for general corporate purposes. The notes issued in conjunction with the acquisition are 1.948% Notes due 2019, 2.616% Notes due 2022, 3.079% Notes due 2024, 3.41% Notes due 2027, 4.368% Notes due 2047, and floating rate Notes due 2022. The amount of the notes issued net of discounts, premiums, mark-to-market of any interest rate swaps and debt issuance costs was $5.2 billion. 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, Moody’s Investors Services and Fitch Ratings, any holder of the notes, excluding the debentures, can require with respect to the notes owned by such holder, or we can offer, to repurchase the notes at 101% of the principal amount plus accrued and unpaid interest. Other Financing Arrangements In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $2.0 billion revolving credit facility and a $1.0 billion committed receivables sales facility program, which we increased in August 2017 from $1.75 billion to $2.0 billion. In November 2016, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through November 1, 2019. 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 also maintain a $2.0 billion commercial paper program backed by a $2.0 billion revolving credit facility. At June 30, 2018, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $24 million and $20 million at June 30, 2018 and 2017, respectively. We also had no amounts outstanding under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $34 million and $46 million at June 30, 2018 and 2017, respectively. Under our commercial paper and committed receivables programs, we had a maximum amount outstanding of $1.7 billion and an average daily amount outstanding of $277 million during fiscal 2018. We had no amounts outstanding under the commercial paper program as of June 30, 2018. Our revolving credit facility and committed receivables sales facility program require us to maintain, as of the end of any calendar quarter, a consolidated leverage ratio of no more than 4.25-to-1, which will reduce to 3.25-to-1 in March 2019. As of June 30, 2018, 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 $8 million and $690 million at June 30, 2018 and 2017, respectively. The $11 million and $388 million balance of other obligations at June 30, 2018 and 2017, respectively, consisted of short-term borrowings and capital leases. In fiscal 2018 we sold our China distribution business, including its debt which was $378 million as of June 30, 2017. See Note 4 for further discussion of this divestiture.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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