Investments

3 Months Ended

Sep. 30, 2019

Investments [Abstract]

Investments

4. Investments

In August 2018, we sold our 98 percent ownership interest in naviHealth Holdings, LLC ("naviHealth") to investor entities controlled by Clayton, Dubilier & Rice in exchange for cash proceeds of $737 million (after adjusting for certain fees and expenses) and a 44 percent equity interest in a partnership that owns 100 percent of the equity interest of naviHealth. We also have certain call rights to reacquire naviHealth. We are accounting for this investment using the equity method of accounting and on a one-month reporting lag.

During the three months ended September 30, 2018, we recognized a pre-tax gain of $508 million related to this divestiture in impairments and (gain)/loss on disposal of assets in our condensed consolidated statement of earnings. 

The carrying value of this investment was $329 million and $334 million as of September 30, 2019 and June 30, 2019, respectively. For the three months ended September 30, 2019, our proportionate share of naviHealth’s net loss, which was recorded in Other (income)/expense, net in the condensed consolidated statement of earnings, was immaterial.