Cardinal Health, Inc. (NYSE:CAH) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05

Costs Associated with Exit or Disposal Activities.

Cardinal Health, Inc. (the "Company") expects to incur estimated costs associated with exit or disposal activities of $130 million on a pre-tax basis in connection with the transition of distribution of its Medical segment's surgeon gloves in certain countries outside the United States from a third-party distribution model to a direct distribution model. On September 29, 2017, the Company entered into an agreement with a third-party distributor to effect this transition, which the Company expects to complete in 2018. The expected costs associated with this restructuring include $125 million in contract termination costs related to the existing third-party distribution arrangement and $5 million in other associated costs. All of these costs are expected to result in cash expenditures and to be recorded in the restructuring and employee severance line item in the Company’s statement of earnings. $125 million of the costs were incurred in the three months ended September30, 2017, and the remainder of the costs are expected to be incurred in the fiscal year ending June 30, 2018. The estimates described in this Form 8-K may change in the future.

Cautions concerning forward-looking statements

This Form 8-K contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results or guidance, statements of outlook and expense accruals, including the amount of costs expected to be incurred in connection with the restructuring, the timing of completion of the restructuring and the expected benefits of the restructuring. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include whether the Company will be able to implement the restructuring as planned, whether the expected amount of the costs associated with restructuring will exceed the Company’s estimates and whether the Company will receive the expected benefits of the restructuring. The Company is subject to additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. This Form 8-K reflects management's views as of October 4, 2017. Except to the extent required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statement.

About Cardinal Health, Inc. (NYSE:CAH)

Cardinal Health, Inc. is a healthcare services and products company. The Company operates through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies. The Medical segment distributes a range of medical, surgical and laboratory products, and provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers. This segment also manufactures, sources and develops its own Cardinal Health brand medical and surgical products. It provides post-acute care management and transition services, and software to hospitals.