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Long-Term Obligations and Other Short-Term Borrowings | 12 Months Ended
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Jun. 30, 2024
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) | 2024 |  | 2023
3.079% Notes due 2024 | $ | — |  |  | $ | 764 |
3.5% Notes due 2024 | 401 |  |  | 404 |
3.75% Notes due 2025 | 507 |  |  | 513 |
3.41% Notes due 2027 | 1,191 |  |  | 1,184 |
5.125% Notes due 2029 | 644 |  |  | — |
5.45% Notes due 2034 | 491 |  |  | — |
4.6% Notes due 2043 | 308 |  |  | 306 |
4.5% Notes due 2044 | 330 |  |  | 331 |
4.9% Notes due 2045 | 423 |  |  | 428 |
4.368% Notes due 2047 | 563 |  |  | 561 |
7.0% Debentures due 2026 | 124 |  |  | 124 |
Other Obligations | 110 |  |  | 86 |
Total | 5,092 |  |  | 4,701 |
Less: current portion of long-term obligations and other short-term borrowings | 434 |  |  | 792 |
Long-term obligations, less current portion | $ | 4,658 |  |  | $ | 3,909 |
(1) Maturities are presented on a calendar year basis. Maturities of existing long-term obligations and other short-term borrowings for fiscal 2025 through 2029 and thereafter are as follows: $438 million, $537 million, $1.3 billion, $13 million, $651 million and $2.1 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 $31.8 billion and $29.9 billion at June 30, 2024 and 2023, respectively. During fiscal 2024, we issued additional debt with the aggregate principal amount of $1.15 billion to fund the repayment of all of the aggregate principal amount outstanding of our 3.5% Notes due 2024 and 3.079% Notes due 2024, at their respective maturities, and for general corporate purposes. During fiscal 2024, we repaid the full principal of $750 million of the 3.079% Notes due 2024 at maturity. The notes issued are $650 million aggregate principal amount of 5.125% Notes that mature on February 15, 2029 and $500 million aggregate principal amount of 5.45% Notes that mature on February 15, 2034. The proceeds of the notes issued, net of discounts, premiums, and debt issuance costs were $1.14 billion. A portion of the proceeds was invested in short-term time deposits of $550 million with initial effective maturities of more than three months. At June 30, 2024, we had $200 million remaining in those short-term time deposits and classified as prepaid expenses and other in our consolidated balance sheets. During fiscal 2023, we repaid the full principal of $550 million of the 3.2% Notes due 2023 at maturity. During fiscal 2022, we redeemed all outstanding $572 million principal amount of 2.616% Notes due 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes. In connection with this redemption, we recorded a $10 million loss on early extinguishment of debt. We also repaid the full principal of the $282 million Floating Rate Notes due 2022 as they became due. The repayments, redemptions and repurchases were paid for with available cash and other short-term borrowings. 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 & Poor's 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 commercial paper program backed by a $2.0 billion revolving credit facility. We also have a $1.0 billion committed receivables sales facility. In February 2023, we extended our $2.0 billion revolving credit facility through February 25, 2028. In September 2022, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through September 30, 2025. In September 2023, Cardinal Health 23 Funding, LLC ("CH-23 Funding") was added as a seller under our committed receivables sales facility. Each of CHF and CH-23 Funding 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, each of CHF and CH-23 Funding is a separate legal entity from Cardinal Health, Inc. and from our respective subsidiary that sells receivables to CHF or CH-23 Funding, as applicable. Each of CHF and CH-23 Funding is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its respective creditors. Our revolving credit and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of June 30, 2024, we were in compliance with this financial covenant. At June 30, 2024 and 2023, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2024 and 2023. During fiscal 2024, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $1.3 billion. We had no amounts outstanding as of June 30, 2024 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2024 and 2023. We had no amounts outstanding under the commercial paper program as of June 30, 2024 and 2023. The $110 million and $86 million balance of other obligations at June 30, 2024 and 2023, respectively, consisted of finance leases and short-term borrowings.

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