Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table summarizes the changes in the carrying amount of goodwill, in total and by segment, during fiscal 2012 and 2011. The increase in the Pharmaceutical segment in fiscal 2011 is primarily due to the acquisition of Kinray, Cardinal Health China and P4 Healthcare. Goodwill recognized in connection with these acquisitions primarily represents the expected benefit from synergies of integrating these businesses as well as the existing workforce of the acquired entities. See Note 2 for further discussion of these acquisitions.



(in millions)	Pharmaceutical		Medical			Total
Balance at June 30, 2010	$	1,248	$	957		$	2,205
Goodwill acquired, net of purchase price adjustments	1,599		33			1,632
Foreign currency translation adjustments and other	6		3			9
Balance at June 30, 2011	2,853		993			3,846
Goodwill acquired, net of purchase price adjustments	16		114			130
Foreign currency translation adjustments and other	7		(5		)	2
Balance at June 30, 2012	$	2,876	$	1,102		$	3,978

Other Intangible Assets

Intangible assets with definite lives are amortized over their useful lives, which range from two to twenty years. The following table summarizes other intangible assets by class as of June 30, 2012. The decrease in indefinite life intangible assets during fiscal 2012 is primarily due to the write-off of the P4 Healthcare trade name. See Note 4 for further discussion of this write-off.



(in millions)	Gross Intangible		Accumulated Amortization		Net Intangible
Indefinite life intangibles:
Trademarks	$	17	$	—	$	17
Total indefinite life intangibles	17		—		17
Definite life intangibles:
Customer relationships	473		141		332
Trademarks and patents	45		36		9
Non-compete agreements	14		8		6
Other	93		43		50
Total definite life intangibles	625		228		397
Total intangibles	$	642	$	228	$	414

The following table summarizes other intangible assets by class as of June 30, 2011:



(in millions)	Gross Intangible		Accumulated Amortization		Net Intangible
Indefinite life intangibles:
Trademarks	$	27	$	—	$	27
Total indefinite life intangibles	27		—		27
Definite life intangibles:
Customer relationships	393		89		304
Trademarks and patents	43		25		18
Non-compete agreements	14		6		8
Other	86		30		56
Total definite life intangibles	536		150		386
Total intangibles	$	563	$	150	$	413

The following table summarizes amortization during fiscal 2012, 2011 and 2010:



(in millions)	2012		2011		2010
Amortization of acquisition-related intangible assets	$	78	$	67	$	10
Amortization of other intangible assets	1		1		1
Total amortization of intangible assets	$	79	$	68	$	11

Estimated annual amortization of intangible assets is as follows: $77 million, $67 million, $51 million, $43 million and $35 million for fiscal 2013 through 2017.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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