Summary
This 8-K filing from Cardinal Health, Inc. (CAH) dated April 26, 2007, provides updates to its previously filed 2006 Form 10-K, primarily concerning changes in its reportable business segments and accounting reclassifications. The company is restructuring its reporting to reflect five segments from the prior four, aiming for better alignment with customer needs. A significant change involves the reclassification of its Pharmaceutical Technologies and Services (PTS) segment as a "discontinued operation," excluding the Martindale and Beckloff Associates businesses which will be retained and integrated into the Pharmaceutical supply chain segment.
Key Highlights
- 1Cardinal Health is changing its reportable business segments from four to five, effective in fiscal year 2007, for better customer focus.
- 2The Pharmaceutical Technologies and Services (PTS) segment (excluding Martindale and Beckloff Associates) is being classified as a discontinued operation.
- 3The retained Martindale and Beckloff Associates businesses are now part of the Healthcare Supply Chain Services – Pharmaceutical segment.
- 4Changes in segment reporting and the reclassification of PTS as discontinued operations had no impact on the Company's reported net earnings or earnings per share.
- 5Equity-based compensation is now being allocated to the segments, with prior periods adjusted.
- 6Immaterial implementation costs for certain storage devices in the Clinical Technologies and Services segment have been reclassified from SG&A to cost of products sold.