CAREFUSION Corp

CIK:0001457543|SEC Filings

Earnings Per Share (Notes)

6 Months Ended

Dec. 31, 2014

EARNINGS PER SHARE

For the quarters and six months ended December 31, 2014 and 2013, basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated to give effect to all dilutive securities, using the treasury stock method.

The following table sets forth the reconciliation of basic and diluted earnings per share for the quarters and six months ended December 31, 2014 and 2013:



	Quarters Ended December 31,		Six Months Ended December 31,
(shares in millions)	2014	2013	2014	2013
Denominator for Basic Earnings per Share	204.1	210.5	204.1	212.2
Effect of Dilutive Securities:
Stock Options	2.3	2.1	2.1	2.1
Restricted Stock Units and Performance Stock Units	0.9	1.1	1.0	1.2
Denominator for Diluted Earnings per Share - Adjusted for Dilutive Securities	207.3	213.7	207.2	215.5

The potentially dilutive stock options, restricted stock units and performance stock units that would have been excluded because the effect would have been antidilutive for the quarters and six months ended December 31, 2014 were 0.0 million and 0.4 million, respectively, as compared to 2.0 million and 1.7 million for the quarter and six months ended December 31, 2013, respectively. Basic and diluted earnings per share amounts are computed independently in the unaudited condensed consolidated statements of income. Therefore, the sum of per share components may not equal the per share amounts presented.

From time to time, our Board of Directors authorizes share repurchase programs for the repurchase of our common stock through open market and private transactions. The manner and pace of our repurchases under these programs is based on market conditions and other relevant factors. As a result of the proposed merger with BD, we have suspended repurchases of our common stock under our share repurchase programs.

In August 2013, we announced that our Board of Directors had approved a share repurchase program authorizing the repurchase of up to $750 million of our common stock. We have repurchased a total of 16.9 million shares of our common stock under this program for an aggregate of $680 million (excluding commissions and fees). Under this program, we repurchased a total of 2.3 million shares for an aggregate of $103 million (excluding commissions and fees) during the quarter ended September 30, 2014. We did not repurchase any shares under this program during the quarter ended December 31, 2014.

In August 2014, our Board of Directors authorized the repurchase of an additional $750 million of our common stock through June 2016. We have not repurchased any shares under this program.

Condensed Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Cash Flows [Abstract]
Cash and Cash Equivalents at July 1	$ 2,303	$ 1,798
Cash Flows from Operating Activities:
Net Income	249us-gaap_NetIncomeLoss	175us-gaap_NetIncomeLoss
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	99us-gaap_DepreciationAndAmortization	93us-gaap_DepreciationAndAmortization
Other Non-Cash Items	52	56
Change in Operating Assets and Liabilities, Excluding Impact of Acquired Assets and Assumed Liabilities:
Trade Receivables	53	15
Inventories	(60)us-gaap_IncreaseDecreaseInInventories	(9)us-gaap_IncreaseDecreaseInInventories
Net Investment in Sales-Type Leases	22	59
Accounts Payable	(30)	(13)
Other Accrued Liabilities and Operating Items, Net	(179)	(79)
Net Cash Provided by Operating Activities	206	297
Cash Flows from Investing Activities:
Cash Paid for Acquisitions, Net of Cash Received	(37)	(501)
Additions to Property and Equipment	(49)	(37)
Other Investing Activities	(4)	(1)
Net Cash Used in Investing Activities	(90)	(539)
Cash Flows from Financing Activities:
Repayment of Current Portion of Long-Term Obligations	(452)us-gaap_RepaymentsOfLongTermDebt	(1)us-gaap_RepaymentsOfLongTermDebt
Share Repurchase Programs	(111)	(301)
Proceeds from Stock Option Exercises	34	51
Other Financing Activities	(2)	(8)
Net Cash Used in Financing Activities	(531)	(259)
Effect of Exchange Rate Changes on Cash	(42)	12
Net Decrease in Cash and Cash Equivalents	(457)	(489)
Cash and Cash Equivalents at December 31, Attributable to Net Income	1,846	1,309
Non-Cash Investing and Financing Activities:
Asset Acquired by Entering into Capital Lease	$ 0	$ 4

Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Jun. 30, 2014
Current Assets:
Cash and Cash Equivalents	$ 1,846	$ 2,303
Trade Receivables, Net	517us-gaap_AccountsReceivableNetCurrent	574us-gaap_AccountsReceivableNetCurrent
Current Portion of Net Investment in Sales-Type Leases	228	290
Inventories, Net	503us-gaap_InventoryNet	441us-gaap_InventoryNet
Prepaid Expenses	34us-gaap_PrepaidExpenseCurrent	29us-gaap_PrepaidExpenseCurrent
Other Current Assets	147us-gaap_OtherAssetsCurrent	84us-gaap_OtherAssetsCurrent
Total Current Assets	3,275us-gaap_AssetsCurrent	3,721us-gaap_AssetsCurrent
Property and Equipment, Net	435us-gaap_PropertyPlantAndEquipmentNet	448us-gaap_PropertyPlantAndEquipmentNet
Net Investment in Sales-Type Leases, Less Current Portion	1,009	970
Goodwill	3,312us-gaap_Goodwill	3,311us-gaap_Goodwill
Intangible Assets, Net	972	1,016
Investments in Unconsolidated Entities	104	99
Other Assets	91us-gaap_OtherAssetsNoncurrent	90us-gaap_OtherAssetsNoncurrent
Total Assets	9,198us-gaap_Assets	9,655us-gaap_Assets
Current Liabilities:
Current Portion of Long-Term Obligations and Other Short-Term Borrowings	4us-gaap_DebtCurrent	454us-gaap_DebtCurrent
Accounts Payable	177us-gaap_AccountsPayableCurrent	206us-gaap_AccountsPayableCurrent
Deferred Revenue	100us-gaap_DeferredRevenueCurrent	95us-gaap_DeferredRevenueCurrent
Accrued Compensation and Benefits	168	194
Other Accrued Liabilities	244us-gaap_OtherLiabilitiesCurrent	246us-gaap_OtherLiabilitiesCurrent
Total Current Liabilities	693us-gaap_LiabilitiesCurrent	1,195us-gaap_LiabilitiesCurrent
Long-Term Obligations, Less Current Portion	1,988us-gaap_LongTermDebtNoncurrent	1,990us-gaap_LongTermDebtNoncurrent
Deferred Income Taxes	610	607
Other Liabilities	400us-gaap_OtherLiabilitiesNoncurrent	473us-gaap_OtherLiabilitiesNoncurrent
Total Liabilities	3,691us-gaap_Liabilities	4,265us-gaap_Liabilities
Commitments and Contingencies
Stockholders' Equity:
Preferred Stock (50.0 Authorized Shares; $.01 Par Value) Issued – None	0us-gaap_PreferredStockValue	0us-gaap_PreferredStockValue
Common Stock (1,200.0 Authorized Shares; $.01 Par Value) Issued – 236.6 and 234.5 shares at December 31, 2014 and June 30, 2014, respectively	2us-gaap_CommonStockValue	2us-gaap_CommonStockValue
Treasury Stock, at cost, 32.4 and 30.1 shares at December 31, 2014 and June 30, 2014, respectively	(1,185)us-gaap_TreasuryStockValue	(1,082)us-gaap_TreasuryStockValue
Additional Paid-In Capital	5,111	5,048
Retained Earnings	1,714	1,465
Accumulated Other Comprehensive Loss	(135)	(43)
Total Stockholders’ Equity	5,507us-gaap_StockholdersEquity	5,390us-gaap_StockholdersEquity
Total Liabilities and Stockholders’ Equity	$ 9,198	$ 9,655