{
  "ticker": "CAH",
  "company": "Cardinal Health Inc.",
  "filing_type": "10-K",
  "year_current": "2024",
  "year_prior": "2023",
  "summary": {
    "added": 35,
    "removed": 21,
    "modified": 108,
    "unchanged": 28,
    "total_current": 171,
    "total_prior": 157
  },
  "source": "SEC EDGAR",
  "url": "https://riskdiff.com/cah/2024-vs-2023/",
  "markdown_url": "https://riskdiff.com/cah/2024-vs-2023/index.md",
  "json_url": "https://riskdiff.com/cah/2024-vs-2023/index.json",
  "generated": "2026-06-01",
  "ai_summary": null,
  "risks": [
    {
      "status": "ADDED",
      "current_title": "Supply chain and quality issues could adversely affect operations, profitability, cash flows, and our financial condition.",
      "prior_title": null,
      "current_body": "As described in the \"Business\" section, products that we manufacture, source, distribute or market must comply with rigorous quality requirements. In addition, no assurance can be given that we will remain in compliance with applicable FDA and other regulatory requirements. These requirements include, among others, regulations regarding manufacturing practices, labeling, advertising, and post marketing reporting, including adverse event reports and field alerts and actions. Several of our facilities and procedures and those of our suppliers are subject to ongoing regulation and periodic inspection by the FDA and other authorities. Actions resulting from non-compliance with FDA and other regulations include fines, warning letters, injunctions, civil penalties, damages, recalls, consent decrees, seizures of products, and civil litigation and/or criminal prosecution. For example, following a facility inspection in December 2023, the FDA issued a warning letter to Cardinal Health in April 2024 related to plastic syringes sourced from a third party manufacturer in China asserting these products did not have appropriate 510(k) clearance and restating some of the observations from the December 2023 inspection. We promptly took action on these Cardinal Health | Fiscal 2024 Form 10-K35 Cardinal Health | Fiscal 2024 Form 10-K35 Cardinal Health | Fiscal 2024 Form 10-K35 Cardinal Health | Fiscal 2024 Form 10-K 35"
    },
    {
      "status": "ADDED",
      "current_title": "Changes to the U.S. healthcare environment may not be favorable to us.",
      "prior_title": null,
      "current_body": "Over a number of years, the U.S. healthcare industry has undergone significant changes designed to increase access to medical care, improve safety and patient outcomes, contain costs 36Cardinal Health | Fiscal 2024 Form 10-K 36Cardinal Health | Fiscal 2024 Form 10-K 36Cardinal Health | Fiscal 2024 Form 10-K 36 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "We might infringe intellectual property rights or our own intellectual property protections might be insufficient to protect our commercial interests.",
      "prior_title": null,
      "current_body": "As we expand or update our product offerings, we may not be able to timely secure intellectual property protections or customers may prefer certain of our products that are no longer subject to intellectual property protections. Such risks may harm our profit, competitive position and could have an adverse impact on results of operations. Third parties have in the past and may in the future assert infringement claims against us. Litigation and proceedings related to intellectual property are unpredictable, and we might be required to pay significant damages, develop non-infringing products or services, obtain a license, cease selling or using allegedly infringing products or services, or incur other restrictions on our operations. Trade secret, patent, copyright, and trademark laws, nondisclosure obligations, and other contractual provisions are critical to our business. In addition to contractual and technical measures, we might institute resource-intensive litigation to protect our trade secrets, to enforce our patent, copyright, or trademark rights and to determine the scope and validity of the proprietary rights of third parties. Our efforts to protect our intellectual property might be insufficient, and non-infringing products or services equivalent or superior to ours might be developed by competitors."
    },
    {
      "status": "ADDED",
      "current_title": "Our business and operations depend on the proper functioning of information systems, critical facilities and distribution networks and could be negatively impacted by events outside of our control.",
      "prior_title": null,
      "current_body": "We rely on our and third-party service providers' information systems for a wide variety of critical operations, including to obtain, rapidly process, analyze and manage data to: •facilitate the purchase and distribution of inventory items from numerous distribution centers; •receive, process and ship orders on a timely basis; •manage accurate billing and collections for thousands of customers; •process payments to suppliers; •facilitate manufacturing and assembly of medical products; and •generate financial information. Cardinal Health | Fiscal 2024 Form 10-K37 Cardinal Health | Fiscal 2024 Form 10-K37 Cardinal Health | Fiscal 2024 Form 10-K37 Cardinal Health | Fiscal 2024 Form 10-K 37"
    },
    {
      "status": "ADDED",
      "current_title": "Our sales and credit concentration is significant.",
      "prior_title": null,
      "current_body": "In fiscal year 2024, CVS Health and OptumRx were our largest customers. CVS Health accounted for 24 percent of our fiscal 2024 revenue and 22 percent of our gross trade receivable balance at June 30, 2024 and OptumRX accounted for 17 percent of our fiscal 2024 revenue. Our pharmaceutical distribution contracts with OptumRx expired at the end of June 2024. We expect our results of operations including Pharmaceutical and Specialty Solutions segment profit and operating cash flow, to be negatively impacted as a result of this expiration. Additionally, we may not be as successful as anticipated in mitigating the negative impacts from this expiration. If CVS or another significant customer reduces their purchases from us, defaults in payment to us, does not renew or terminates their agreements, whether due to an alleged default by us or otherwise, our results of operations and financial condition could be adversely affected."
    },
    {
      "status": "ADDED",
      "current_title": "Our business could be affected by events outside of our control including global climate change-related physical and transitional risks, public health crises, natural disasters, geopolitical and other catastrophic events.",
      "prior_title": null,
      "current_body": "The long-term impacts of climate change are widespread and difficult to predict. However, we expect to experience climate-related impacts to the business, likely driven by risks related to the physical impacts to our operations and risks related to the transition to a lower-carbon economy. Our properties may be subject to nearer-term impacts from climate change, including physical damage resulting from adverse or extreme weather. Property damage results in increased costs for repairs and may cause disruptions in operations. Transitional risks associated with climate change may cause social and human effects such as shifts in populations, increased costs for critical services such as transportation, and other adverse effects. Climate-related laws and regulations may impose costs, including increased spend associated with carbon pricing mechanisms, data gathering and reporting, third-party attestations, capital expenditures to implement lower greenhouse gas emissions technology, and other measures to reduce emissions. Additionally, the varied timing of climate-related laws and regulations and disparate regulatory approaches in various jurisdictions could complicate our compliance with climate-related laws or regulations, and methodologies for reporting climate-related data may change. We cannot predict the potential impact on our competitive position, results of operations, or financial condition. These factors may negatively impact cost or availability of certain products, commodities, or energy, and could impair our ability to secure goods and services required for the operation of our business at quantities and levels we require. A shift in customer or consumer preference towards low-carbon products and services may also place us at a competitive disadvantage if we fail to effectively adjust for these shifts. Our supply chain is subject to these same physical and transitional risks. Events outside of our control also have, and will continue to, adversely impact our operations and financial results. These events include those related to public health crises, including epidemics or pandemics; geopolitical events or tensions, including civil unrest, trade wars, armed conflicts, or terrorism; or unstable international governments and legal systems. Among other potential affects, these events may have a disruptive and unpredictable impact on our operations and those of our suppliers and vendors, or customers, hinder manufacturing and transportation, result in significant excess costs, lead to shifts in customer demand, or have a negative impact on capital markets. Such events are inherently unpredictable, and our responses may involve the implementation of measures which may not be as successful as intended in mitigating adverse impacts. Industry & Economic RisksWe could continue to suffer the adverse effects of competitive pressures.As described in greater detail in the \"Business\" section, we operate in markets that are highly competitive and dynamic. In addition, competitive pressures in each of our businesses may be increased by new business models, new entrants, new regulations or changes in enforcement priorities, changes in consumer demand or general competitive dynamics. Additionally, we may not be able to onboard new customers as efficiently as expect due to customer service issues or competitive service level offerings. Our businesses face continued pricing pressure from these factors, which adversely affects our margins. If we are unable to offset margin reductions caused by these pressures through steps such as sourcing or cost control measures, additional service offerings and sales of higher margin products, our results of operations could continue to be adversely affected.Our Pharmaceutical and Specialty Solutions segment’s profit margin could be adversely affected by changes in industry or market dynamics that we are not able to accurately predict. The frequency, timing, magnitude and profit impact of generic pharmaceutical customer purchase volumes, pricing changes, customer contract renewals, generic pharmaceutical launches and generic pharmaceutical manufacturer pricing changes, which contribute to the performance of our generic pharmaceutical program, remain uncertain. These factors have contributed to declines in some prior years and have more than offset the benefits from sourcing generic pharmaceuticals through our Red Oak Sourcing venture with CVS Health. If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical and Specialty Solutions segment profit and consolidated operating earnings will be adversely affected.With respect to branded pharmaceutical products, compensation under our contractual arrangements with manufacturers for the purchase of branded pharmaceutical products is generally based on the wholesale acquisition cost set by the manufacturer. Sales prices of branded pharmaceutical products to our customers generally are a percentage discount from wholesale acquisition cost.Additionally, almost all of our distribution services agreements with branded pharmaceutical manufacturers provide that we receive fees from the manufacturers to compensate us for services we provide them. However, under certain agreements, branded pharmaceutical price appreciation, which is determined by the manufacturers, also serves as a part of our compensation. If manufacturers change their historical approach to setting and increasing wholesale acquisition cost, decide to reduce prices, not to increase prices or to implement only small increases and we are transportation, result in significant excess costs, lead to shifts in customer demand, or have a negative impact on capital markets. Such events are inherently unpredictable, and our responses may involve the implementation of measures which may not be as successful as intended in mitigating adverse impacts."
    },
    {
      "status": "ADDED",
      "current_title": "Risk Factors",
      "prior_title": null,
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "ADDED",
      "current_title": "Cybersecurity",
      "prior_title": null,
      "current_body": "CybersecurityCybersecurity Risk ManagementWe identify, assess, and manage risks related to cybersecurity through documented policies, standards, and procedures as part of our overall approach to cybersecurity, which is a component of our wider enterprise risk management program. Our approach to detection, mitigation, remediation, and prevention of cybersecurity risks utilizes a range of measures including, among other elements: benchmarking to generally accepted industry standards and frameworks, such as the National Institute of Standards and Technology cybersecurity framework; use of periodic tabletop exercises to promote awareness and improve internal processes; periodic penetration testing; a dedicated staff of cybersecurity professionals; and implementation of security measures and policies intended to identify as well as assist in containing and remediating cybersecurity risks. We maintain cybersecurity incident response, disaster recovery, and business continuity plans that govern activities such as preparation, detection coordination, remediation and recovery, and escalation to senior management and, where appropriate, relevant committees of the Board. These plans are routinely reviewed under the leadership of our Chief Information Security Officer (\"CISO\"). We also maintain mandatory employee cybersecurity and privacy compliance awareness training requirements, which are supplemented by employee engagement campaigns.We utilize third parties to assist with, and assess the effectiveness of, our cybersecurity posture, in addition to supporting incident response and mitigation where necessary. We identify and assess third party risks associated with suppliers and service providers across a range of areas, including cybersecurity, through a third-party risk management process that incorporates, among other features, the use of risk assessments and, where appropriate, contractual requirements around evaluations, security, technology, service levels, and other terms.To date, we are not aware of risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect Cardinal Health. However, the scope and impact of any future incident cannot be predicted. For more information, please see Item 1A “Risk Factors” for the risk factor entitled “Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.”GovernanceOur CISO, in coordination with our Chief Information Officer (“CIO”) to whom the CISO reports, leads our approach to assessing and managing cybersecurity-related risks. Our CISO has over twenty-five years of experience in information technology (“IT”), with twenty years in IT risk management, compliance, and information security, as well as a background in leading technical infrastructure teams and roles supporting business operations.As part of management’s oversight of our cybersecurity program, we maintain an IT risk governance process that includes multiple levels of escalation from our IT Risk Advisory Board, which meets on a monthly basis and whose membership includes the CISO and IT functional area leadership, to an executive-level committee to help address cybersecurity risks at an enterprise level.While the company’s Board oversees our overall risk management process, as part of its oversight, the Board has delegated certain responsibilities to committees of the Board. The Audit Committee of the Board has primary responsibility for discussing with management cybersecurity and other major IT risk exposures and management’s steps to monitor and control such exposures. In coordination with the Audit Committee, the Risk Oversight Committee of the Board monitors Cardinal Health’s compliance with applicable legal and regulatory requirements, including with respect to data privacy and security. Our Audit Committee receives quarterly updates from the CISO and CIO and the Board receives at least annual cybersecurity updates. Among other items, these updates cover a range of matters relevant to our cybersecurity program, including: the threat environment and related business risks; the state, priorities of, and investments in our cybersecurity program; the availability of cyber insurance; review of certain cybersecurity incidents that have occurred within the company and the industry; and relevant cybersecurity operational metrics. CybersecurityCybersecurity Risk ManagementWe identify, assess, and manage risks related to cybersecurity through documented policies, standards, and procedures as part of our overall approach to cybersecurity, which is a component of our wider enterprise risk management program. Our approach to detection, mitigation, remediation, and prevention of cybersecurity risks utilizes a range of measures including, among other elements: benchmarking to generally accepted industry standards and frameworks, such as the National Institute of Standards and Technology cybersecurity framework; use of periodic tabletop exercises to promote awareness and improve internal processes; periodic penetration testing; a dedicated staff of cybersecurity professionals; and implementation of security measures and policies intended to identify as well as assist in containing and remediating cybersecurity risks. We maintain cybersecurity incident response, disaster recovery, and business continuity plans that govern activities such as preparation, detection coordination, remediation and recovery, and escalation to senior management and, where appropriate, relevant committees of the Board. These plans are routinely reviewed under the leadership of our Chief Information Security Officer (\"CISO\"). We also maintain mandatory employee cybersecurity and privacy compliance awareness training requirements, which are supplemented by employee engagement campaigns.We utilize third parties to assist with, and assess the effectiveness of, our cybersecurity posture, in addition to supporting incident response and mitigation where necessary. We identify and assess third party risks associated with suppliers and service providers across a range of areas, including cybersecurity, through a third-party risk management process that incorporates, among other features, the use of risk assessments and, where appropriate, contractual requirements around evaluations, security, technology, service levels, and other terms.To date, we are not aware of risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect Cardinal Health. However, the scope and impact of any future incident cannot be predicted. For more information, please see Item 1A “Risk Factors” for the risk factor entitled “Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.”GovernanceOur CISO, in coordination with our Chief Information Officer (“CIO”) to whom the CISO reports, leads our approach to assessing and managing cybersecurity-related risks. Our CISO has over twenty-five years of experience in information technology (“IT”), with twenty years in IT risk management, compliance, and information security, as well as a background in leading technical infrastructure teams and roles supporting business operations.As part of management’s oversight of our cybersecurity program, we maintain an IT risk governance process that includes multiple levels of escalation from our IT Risk Advisory Board, which meets"
    },
    {
      "status": "ADDED",
      "current_title": "Cybersecurity Risk Management",
      "prior_title": null,
      "current_body": "We identify, assess, and manage risks related to cybersecurity through documented policies, standards, and procedures as part of our overall approach to cybersecurity, which is a component of our wider enterprise risk management program. Our approach to detection, mitigation, remediation, and prevention of cybersecurity risks utilizes a range of measures including, among other elements: benchmarking to generally accepted industry standards and frameworks, such as the National Institute of Standards and Technology cybersecurity framework; use of periodic tabletop exercises to promote awareness and improve internal processes; periodic penetration testing; a dedicated staff of cybersecurity professionals; and implementation of security measures and policies intended to identify as well as assist in containing and remediating cybersecurity risks. We maintain cybersecurity incident response, disaster recovery, and business continuity plans that govern activities such as preparation, detection coordination, remediation and recovery, and escalation to senior management and, where appropriate, relevant committees of the Board. These plans are routinely reviewed under the leadership of our Chief Information Security Officer (\"CISO\"). We also maintain mandatory employee cybersecurity and privacy compliance awareness training requirements, which are supplemented by employee engagement campaigns. We utilize third parties to assist with, and assess the effectiveness of, our cybersecurity posture, in addition to supporting incident response and mitigation where necessary. We identify and assess third party risks associated with suppliers and service providers across a range of areas, including cybersecurity, through a third-party risk management process that incorporates, among other features, the use of risk assessments and, where appropriate, contractual requirements around evaluations, security, technology, service levels, and other terms. To date, we are not aware of risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect Cardinal Health. However, the scope and impact of any future incident cannot be predicted. For more information, please see Item 1A “Risk Factors” for the risk factor entitled “Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.” Governance Our CISO, in coordination with our Chief Information Officer (“CIO”) to whom the CISO reports, leads our approach to assessing and managing cybersecurity-related risks. Our CISO has over twenty-five years of experience in information technology (“IT”), with twenty years in IT risk management, compliance, and information security, as well as a background in leading technical infrastructure teams and roles supporting business operations. As part of management’s oversight of our cybersecurity program, we maintain an IT risk governance process that includes multiple levels of escalation from our IT Risk Advisory Board, which meets on a monthly basis and whose membership includes the CISO and IT functional area leadership, to an executive-level committee to help address cybersecurity risks at an enterprise level.While the company’s Board oversees our overall risk management process, as part of its oversight, the Board has delegated certain responsibilities to committees of the Board. The Audit Committee of the Board has primary responsibility for discussing with management cybersecurity and other major IT risk exposures and management’s steps to monitor and control such exposures. In coordination with the Audit Committee, the Risk Oversight Committee of the Board monitors Cardinal Health’s compliance with applicable legal and regulatory requirements, including with respect to data privacy and security. Our Audit Committee receives quarterly updates from the CISO and CIO and the Board receives at least annual cybersecurity updates. Among other items, these updates cover a range of matters relevant to our cybersecurity program, including: the threat environment and related business risks; the state, priorities of, and investments in our cybersecurity program; the availability of cyber insurance; review of certain cybersecurity incidents that have occurred within the company and the industry; and relevant cybersecurity operational metrics. on a monthly basis and whose membership includes the CISO and IT functional area leadership, to an executive-level committee to help address cybersecurity risks at an enterprise level. While the company’s Board oversees our overall risk management process, as part of its oversight, the Board has delegated certain responsibilities to committees of the Board. The Audit Committee of the Board has primary responsibility for discussing with management cybersecurity and other major IT risk exposures and management’s steps to monitor and control such exposures. In coordination with the Audit Committee, the Risk Oversight Committee of the Board monitors Cardinal Health’s compliance with applicable legal and regulatory requirements, including with respect to data privacy and security. Our Audit Committee receives quarterly updates from the CISO and CIO and the Board receives at least annual cybersecurity updates. Among other items, these updates cover a range of matters relevant to our cybersecurity program, including: the threat environment and related business risks; the state, priorities of, and investments in our cybersecurity program; the availability of cyber insurance; review of certain cybersecurity incidents that have occurred within the company and the industry; and relevant cybersecurity operational metrics. Cardinal Health | Fiscal 2024 Form 10-K43 Cardinal Health | Fiscal 2024 Form 10-K43 Cardinal Health | Fiscal 2024 Form 10-K43 Cardinal Health | Fiscal 2024 Form 10-K 43"
    },
    {
      "status": "ADDED",
      "current_title": "PeriodTotal Numberof SharesPurchased (1)Average Price Paid per ShareTotal Number of SharesPurchasedas Part of Publicly Announced Programs (2)ApproximateDollar Value ofShares That MayYet be PurchasedUnder the Programs (2)(in millions)April 2024157 $107.32 — $3,493 May 2024128 96.95 — 3,493 June 2024134 101.63 — 3,493 Total419 $102.33 — $3,493",
      "prior_title": null,
      "current_body": "(1)Reflects 157, 128 and 134 common shares purchased in April, May and June 2024, respectively, through a rabbi trust as investments of participants in our Deferred Compensation Plan. (2)On June 7, 2023, our Board of Directors approved a new $3.5 billion share repurchase program which will expire on December 31, 2027. As of June 30, 2024, we had $3.5 billion authorized for share repurchases remaining under this program. Cardinal Health | Fiscal 2024 Form 10-K45 Cardinal Health | Fiscal 2024 Form 10-K45 Cardinal Health | Fiscal 2024 Form 10-K45 Cardinal Health | Fiscal 2024 Form 10-K 45"
    },
    {
      "status": "ADDED",
      "current_title": "Valuation of Goodwill",
      "prior_title": null,
      "current_body": "Description of the Matter The Company performed quantitative assessments of goodwill for the Company’s Global Medical Products and Distribution (GMPD) and at-Home Solutions reporting units during fiscal year 2024, by comparing the fair values of each of these reporting units with their respective carrying amounts. As discussed in Notes 1 and 5 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level, or when indicators of impairment exist. During fiscal 2024, the Company recognized goodwill impairment charges related to GMPD of $675 million, which represented the entire remaining amount of goodwill allocated to GMPD. There was no impairment recognized related to at-Home Solutions. Auditing management’s goodwill impairment test for GMPD and at-Home Solutions was challenging because there is significant judgement required in determining the fair values of the reporting units. In particular, the fair value estimates were sensitive to significant judgmental assumptions including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, which are affected by expectations about future market or economic conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of significant judgmental assumptions, including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, among other assumptions. To test the estimated fair values of GMPD and at-Home Solutions, we performed audit procedures that included, among others, evaluating methodologies used; involving our valuation specialists to assist with our procedures related to the measurement of the fair values; and testing the underlying data used by the Company in its analysis for completeness and accuracy. We compared the significant assumptions used by management to current industry and economic trends, recent historical performance, changes to customer base or product mix and other relevant factors. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the reporting units that would result from changes in the assumptions. We evaluated the assumptions within the model and tested the model’s computational accuracy. In addition, we inspected the Company’s reconciliation of the fair value of all reporting units to the market capitalization of the Company and assessed the result. We have also assessed the adequacy of the Company’s disclosures included in Notes 1 and 5 in relation to this matter."
    },
    {
      "status": "ADDED",
      "current_title": "Revision of Prior Period Consolidated Financial Statements",
      "prior_title": null,
      "current_body": "In connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at- Home Solutions operating segment. In accordance with ASC 250 – Accounting Changes and Error Corrections and Staff Accounting Bulletins No. 99 – Materiality and No. 108 – Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the materiality of the error and determined that the impacts were not material, individually or in the aggregate, to our previously issued Consolidated Financial Statements for any of the prior quarters or annual periods in which they occurred, but that correcting the error in the current period would be material to our results of operations for fiscal 2024. We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position. These revisions impacted each quarter of fiscal 2022, 2023 and 2024. These other immaterial errors were previously corrected in the periods they were identified; however, they are now reflected in the periods they originated. Revisions to our previously reported disclosures have been reflected in this Note; Note 3, \"Divestitures\"; Note 5, “Goodwill and Other Intangible Assets”; Note 6, \"Leases\"; Note 8, \"Commitments, Contingent Liabilities and Litigation\"; Note 9, \"Income Taxes\"; Note 12, \"Shareholders' Equity/(Deficit)”; Note 13, \"Earnings Per Share\"; and Note 14 “Segment Information.\" A summary of the revisions to the previously reported financial statements is provided below and in Note 16, “Revision of Previously Issued Interim Financial Statements (Unaudited)”. Home Solutions operating segment. In accordance with ASC 250 – Accounting Changes and Error Corrections and Staff Accounting Bulletins No. 99 – Materiality and No. 108 – Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the materiality of the error and determined that the impacts were not material, individually or in the aggregate, to our previously issued Consolidated Financial Statements for any of the prior quarters or annual periods in which they occurred, but that correcting the error in the current period would be material to our results of operations for fiscal 2024. We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position. These revisions impacted each quarter of fiscal 2022, 2023 and 2024. These other immaterial errors were previously corrected in the periods they were identified; however, they are now reflected in the periods they originated. Revisions to our previously reported disclosures have been reflected in this Note; Note 3, \"Divestitures\"; Note 5, “Goodwill and Other Intangible Assets”; Note 6, \"Leases\"; Note 8, \"Commitments, Contingent Liabilities and Litigation\"; Note 9, \"Income Taxes\"; Note 12, \"Shareholders' Equity/(Deficit)”; Note 13, \"Earnings Per Share\"; and Note 14 “Segment Information.\" A summary of the revisions to the previously reported financial statements is provided below and in Note 16, “Revision of Previously Issued Interim Financial Statements (Unaudited)”. The following tables set forth our revisions to the consolidated statements of earnings/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions, except per common share amounts)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedRevenue$205,012 $(33)$204,979 $181,364 $(38)$181,326 Cost of products sold198,123 (18)198,105 174,819 23 174,842 Gross margin6,889 (15)6,874 6,545 (61)6,484 Distribution, selling, general and administrative expenses4,834 (34)4,800 4,557 (45)4,512 Impairments and (gain)/loss on disposal of assets, net1,250 (4)1,246 2,050 10 2,060 Litigation (recoveries)/charges, net(302)(2)(304)109 (15)94 Operating earnings/(loss)727 25 752 (596)(11)(607)Other (income)/expense, net(4)9 5 16 6 22 Interest expense, net93 (9)84 149 (2)147 Earnings/(loss) before income taxes638 25 663 (769)(15)(784)Provision for/(benefit from) income taxes376 (44)332 163 (10)153 Net earnings/(loss)262 69 331 (932)(5)(937)Net earnings/(loss) attributable to Cardinal Health, Inc.261 69 330 (933)(5)(938)Earnings/(loss) per common share attributable to Cardinal Health, Inc.Basic$1.00 $0.27 $1.27 $(3.35)$(0.02)$(3.37)Diluted1.00 0.26 1.26 (3.35)(0.02)(3.37) Cardinal Health | Fiscal 2024 Form 10-K57 Cardinal Health | Fiscal 2024 Form 10-K57 Cardinal Health | Fiscal 2024 Form 10-K57 Cardinal Health | Fiscal 2024 Form 10-K 57"
    },
    {
      "status": "ADDED",
      "current_title": "Notes to Financial Statements",
      "prior_title": null,
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)"
    },
    {
      "status": "ADDED",
      "current_title": "As Reported",
      "prior_title": null,
      "current_body": "Adjustment As Revised 58Cardinal Health | Fiscal 2024 Form 10-K 58Cardinal Health | Fiscal 2024 Form 10-K 58Cardinal Health | Fiscal 2024 Form 10-K 58 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "Updated Segment Reporting Structure",
      "prior_title": null,
      "current_body": "Effective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and Global Medical Products and Distribution (\"GMPD\") segment. The remaining operating segments, Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics, are not significant enough to require separate reportable disclosures and are included in Other. The Pharmaceutical and Specialty Solutions reportable segment consists of all businesses formerly within our Pharmaceutical segment, excluding Nuclear and Precision Health Solutions. The Global Medical Products and Distribution reportable segment consists of all businesses formerly within our Medical segment, excluding at-Home Solutions and OptiFreight® Logistics. Our previously reported segment results have been recast to conform to this re-aligned reporting structure and reflect changes in the elimination of inter-segment revenue and allocated corporate technology and shared function expenses, which are driven by the reporting structure change. See Note 14 for segment results under the new reporting structure. Cash EquivalentsWe consider liquid investments purchased with an initial effective maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value.Receivables and Allowance for Doubtful AccountsTrade receivables are reported at their estimated collectible amounts and presented net of an allowance for doubtful accounts of $233 million and $240 million at June 30, 2024 and 2023, respectively. In addition to credit losses, the allowance also includes reserves related to customer disputes and late fees billed to customers, which are recognized within our consolidated statements of earnings/(loss) as reductions of revenue. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We regularly monitor past due accounts and establish appropriate reserves to cover potential losses, and consider historical experience, pricing discrepancies, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We review these factors quarterly to determine if any adjustments are needed to the allowance. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.We provide financing to various customers. Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes, net and related accrued interest were $43 million (current portion $14 million) and $56 million (current portion $9 million) at June 30, 2024 and 2023, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable"
    },
    {
      "status": "ADDED",
      "current_title": "Notes to Financial Statements",
      "prior_title": null,
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)"
    },
    {
      "status": "ADDED",
      "current_title": "Property and Equipment",
      "prior_title": null,
      "current_body": "Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, 60Cardinal Health | Fiscal 2024 Form 10-K 60Cardinal Health | Fiscal 2024 Form 10-K 60Cardinal Health | Fiscal 2024 Form 10-K 60 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "Business Combinations",
      "prior_title": null,
      "current_body": "The assets acquired and liabilities assumed in a business combination, including identifiable intangible assets, are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the identifiable net assets acquired is recorded as goodwill. We base the fair values of identifiable intangible assets on detailed valuations that require management to make significant judgments, estimates and assumptions. Critical estimates and assumptions include: expected future cash flows for customer relationships, trade names, developed technology and other identifiable intangible assets; discount rates that reflect the risk factors associated with future cash flows; and estimates of useful lives. When an acquisition involves contingent consideration, we recognize a liability equal to the fair value of the contingent consideration obligation at the acquisition date. The estimate of fair value of a contingent consideration obligation requires subjective assumptions to be made regarding future business results, discount rates, discount periods and probabilities assigned to various potential business result scenarios. See Note 2 for additional information regarding our acquisitions. Goodwill and Other Intangible AssetsPurchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist.Purchased goodwill is tested for impairment at least annually. Qualitative factors are first assessed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. There is an option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. We have elected to bypass the qualitative assessment for our annual goodwill impairment test in the current year. The quantitative goodwill impairment test involves a comparison of the estimated fair value of the reporting unit to the respective carrying amount. Goodwill impairment testing involves judgment, including the identification of reporting units, qualitative evaluation of events and circumstances to determine if it is more likely than not that an impairment exists, and, if necessary, the estimation of the fair value of the applicable reporting unit. Effective January 1, 2024, we implemented a new enterprise operating and segment reporting structure. Refer to the \"Updated Segment Reporting Structure\" section within this Note for additional information. This change in segment structure resulted in changes to the composition of our former Medical operating segment excluding at-Home Solutions reporting unit (\"Medical Unit\"). Effective January 1, 2024, our reporting units are: Pharmaceutical and Specialty Solutions, GMPD, Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. GMPD and OptiFreight® Logistics comprised our former Medical Unit.Fair value can be determined using market, income or cost-based approaches. Our determination of estimated fair value of the reporting units is based on a combination of the income-based and market-based approaches. Under the income-based approach, we use a discounted cash flow model in which cash flows anticipated over several future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate risk-adjusted rate of return. We use our internal forecasts to estimate future cash flows, which we believe are consistent with those of a market participant, and include an estimate of long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ materially from those used in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. During fiscal 2024, discount rates used in our reporting unit valuations ranged from 10 to 11.5 percent. Under the market-based guideline public company method, we determine fair value by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. We also use the guideline transaction method to determine fair value based on pricing multiples derived from the sale of companies that are similar to our reporting units. To further confirm fair value, we compare the aggregate fair value of our"
    },
    {
      "status": "ADDED",
      "current_title": "Self-Insurance",
      "prior_title": null,
      "current_body": "We self-insure for employee healthcare, general liability, certain product liability matters, auto liability, property and workers' compensation. Self-insurance accruals include an estimate for expected settlements or pending claims, defense costs, Cardinal Health | Fiscal 2024 Form 10-K63 Cardinal Health | Fiscal 2024 Form 10-K63 Cardinal Health | Fiscal 2024 Form 10-K63 Cardinal Health | Fiscal 2024 Form 10-K 63"
    },
    {
      "status": "ADDED",
      "current_title": "Expected Volatility (3)",
      "prior_title": null,
      "current_body": "2023 Modified (1) (1) There was a modification of prior year awards in fiscal 2024 that required a new Monte Carlo Simulation valuation model. (2) Based on the U.S. Treasury yields over a term comparable to the remaining performance period. (3) Based on historical volatility and implied volatility indications. The compensation expense associated with nonvested PSUs is dependent on our periodic assessment of the probability of the performance goals being achieved. Based on the extent to which the performance goals are achieved and the Company's total shareholder return (\"TSR\") relative to the S&P 500 Health Care Index, vested shares may range from zero to 240 percent of the target award amount. Compensation expense is recognized regardless of the extent to which the market-based condition, the Company's relative TSR, is satisfied. 64Cardinal Health | Fiscal 2024 Form 10-K 64Cardinal Health | Fiscal 2024 Form 10-K 64Cardinal Health | Fiscal 2024 Form 10-K 64 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "Notes to Financial Statements",
      "prior_title": null,
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)"
    },
    {
      "status": "ADDED",
      "current_title": "2. Acquisitions",
      "prior_title": null,
      "current_body": "On March 18, 2024, we completed the acquisition of Specialty Networks for a purchase price of $1.2 billion in cash, subject to certain adjustments. Specialty Networks creates clinical and economic value for providers and partners across multiple specialty group purchasing organizations (\"GPOs\"): UroGPO, Gastrologix and GastroGPO, and United Rheumatology. Specialty Networks’ PPS Analytics platform analyzes data from electronic medical records, practice management, imaging, and dispensing systems and transforms it into meaningful and actionable insights for providers and other stakeholders by using artificial intelligence and modern data analytics capabilities. The acquisition further expands our offering in key therapeutic areas, accelerates our upstream data and research opportunities with biopharma manufacturers, and creates a platform for our expansion across therapeutic areas. The pro forma results of operations and the results of operations for Specialty Networks have not been separately disclosed because the effects were not significant compared to the consolidated financial statements. Transaction costs associated with the Specialty Networks acquisition were $16 million during the fiscal year ended June 30, 2024, and are included in amortization and other acquisition-related costs in the consolidated statements of earnings/(loss). Fair Value of Assets Acquired and Liabilities AssumedThe allocation of the purchase price for the acquisition of Specialty Networks is not yet finalized and is subject to adjustment as we complete the valuation analysis of the acquisition. The purchase price is also subject to adjustment based on working capital requirements as set forth in the acquisition agreement.The valuation of identifiable intangible assets utilizes significant unobservable inputs and thus represents a Level 3 nonrecurring fair value measurement. The estimated fair value of the identifiable intangible assets was determined using an income-based approach, which includes market participant expectations of the cash flows that an asset could generate over its remaining useful life, discounted back to present value using an appropriate rate of return. The discount rate used to arrive at the present value of the identifiable intangible assets was 10 percent and reflects the internal rate of return and uncertainty in the cash flow projections.The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date for Specialty Networks:(in millions)Specialty NetworksIdentifiable intangible assets:Customer relationships (1)$480 Trade names (2)15 Developed technology and Other (3)25 Total identifiable intangible assets acquired520 Identifiable net assets/(liabilities):Cash and equivalents23 Trade receivables, net17 Prepaid expenses and other2 Other accrued liabilities(15)Deferred income taxes and other liabilities(127)Total identifiable net assets/(liabilities) acquired420 Goodwill793 Total net assets acquired$1,213 (1) The weighted-average useful life of customer relationships is 15 years.(2) The weighted-average useful life of trade names is 8 years.(3) The weighted-average useful life of developed technology and other is 8 years.3. DivestituresOutcomesOn June 5, 2023, we signed a definitive agreement to contribute the Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity. The transaction closed on July 10, 2023 and we recognized a pre-tax gain of $53 million in fiscal 2024, which was included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss). This gain includes our initial recognition of an equity method investment in the combined entity"
    },
    {
      "status": "ADDED",
      "current_title": "Fair Value of Assets Acquired and Liabilities Assumed",
      "prior_title": null,
      "current_body": "The allocation of the purchase price for the acquisition of Specialty Networks is not yet finalized and is subject to adjustment as we complete the valuation analysis of the acquisition. The purchase price is also subject to adjustment based on working capital requirements as set forth in the acquisition agreement. The valuation of identifiable intangible assets utilizes significant unobservable inputs and thus represents a Level 3 nonrecurring fair value measurement. The estimated fair value of the identifiable intangible assets was determined using an income-based approach, which includes market participant expectations of the cash flows that an asset could generate over its remaining useful life, discounted back to present value using an appropriate rate of return. The discount rate used to arrive at the present value of the identifiable intangible assets was 10 percent and reflects the internal rate of return and uncertainty in the cash flow projections. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date for Specialty Networks: (in millions)Specialty NetworksIdentifiable intangible assets:Customer relationships (1)$480 Trade names (2)15 Developed technology and Other (3)25 Total identifiable intangible assets acquired520 Identifiable net assets/(liabilities):Cash and equivalents23 Trade receivables, net17 Prepaid expenses and other2 Other accrued liabilities(15)Deferred income taxes and other liabilities(127)Total identifiable net assets/(liabilities) acquired420 Goodwill793 Total net assets acquired$1,213"
    },
    {
      "status": "ADDED",
      "current_title": "Identifiable intangible assets:",
      "prior_title": null,
      "current_body": "Customer relationships (1) Trade names (2) Total identifiable intangible assets acquired"
    },
    {
      "status": "ADDED",
      "current_title": "Identifiable net assets/(liabilities):",
      "prior_title": null,
      "current_body": "Cash and equivalents Trade receivables, net Prepaid expenses and other Other accrued liabilities Deferred income taxes and other liabilities Total identifiable net assets/(liabilities) acquired Goodwill"
    },
    {
      "status": "ADDED",
      "current_title": "Total net assets acquired",
      "prior_title": null,
      "current_body": "(1) The weighted-average useful life of customer relationships is 15 years. (2) The weighted-average useful life of trade names is 8 years. (3) The weighted-average useful life of developed technology and other is 8 years."
    },
    {
      "status": "ADDED",
      "current_title": "Notes to Financial Statements",
      "prior_title": null,
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)"
    },
    {
      "status": "ADDED",
      "current_title": "Department of Justice Civil Investigative Demand",
      "prior_title": null,
      "current_body": "In November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a minority ownership interest in a rheumatology managed services organization and a group purchasing organization. We are cooperating with this investigation."
    },
    {
      "status": "ADDED",
      "current_title": "Deferred Income Taxes",
      "prior_title": null,
      "current_body": "Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. Cardinal Health | Fiscal 2024 Form 10-K75 Cardinal Health | Fiscal 2024 Form 10-K75 Cardinal Health | Fiscal 2024 Form 10-K75 Cardinal Health | Fiscal 2024 Form 10-K 75"
    },
    {
      "status": "ADDED",
      "current_title": "10. Fair Value Measurements",
      "prior_title": null,
      "current_body": "The following tables present the fair values for assets and (liabilities) measured on a recurring basis at June 30: 2024(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$1,442 $— $— $1,442 Other investments (1)108 — — 108 Liabilities:Forward contracts (2)— (87)— (87) 2023(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$1,253 $— $— $1,253 Other investments (1)101 — — 101 Liabilities:Forward contracts (2)— (73)— (73) (1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. (2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets."
    },
    {
      "status": "ADDED",
      "current_title": "Assets Measured on a Nonrecurring Basis",
      "prior_title": null,
      "current_body": "As discussed further in Note 3, on July 10, 2023, we closed the transaction to contribute the Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity. We accounted for this investment initially at its fair value using Level 3 unobservable inputs under the discounted cash flow method. Accordingly, we recognized a $147 million equity method investment at closing during the first quarter of fiscal 2024, which was recorded in Other Assets in our consolidated balance sheets."
    },
    {
      "status": "ADDED",
      "current_title": "Net Investment Hedges",
      "prior_title": null,
      "current_body": "We hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries. To accomplish this, we enter into cross-currency swaps that are designated as hedges of net investments. In June 2024, we terminated the ¥18 billion ($120 million) cross-currency swaps with a maturity date of June 2027 entered into in September 2023, and received net settlements in cash of $6 million, which was recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows. 78Cardinal Health | Fiscal 2024 Form 10-K 78Cardinal Health | Fiscal 2024 Form 10-K 78Cardinal Health | Fiscal 2024 Form 10-K 78 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "14. Segment Information",
      "prior_title": null,
      "current_body": "Effective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and GMPD segment. All remaining operating segments that are not significant enough to require separate reportable segment disclosures are included in Other, which is comprised of Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. The factors for determining the reportable segments include the manner in which management evaluates performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities. Our previously reported segment results have been recast to conform to this re-aligned reporting structure and reflect changes in the elimination of inter-segment revenue and allocated corporate technology and shared function expenses, which are driven by the reporting structure change. Our Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; provides pharmacy management services to hospitals and operates a limited number of pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. Our GMPD segment manufactures, sources and distributes Cardinal Health brand medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. In addition to distributing Cardinal Health brand products, this segment also distributes a broad range of medical, surgical and laboratory products known as national brand products to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. The remaining three non-reportable operating segments included in Other are Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. These operating segments respectively operate nuclear pharmacies and radiopharmaceutical manufacturing facilities, distribute medical products to patients' homes in the United States and provide supply chain services and solutions to our customers. RevenueThe following table presents revenue for the two reportable segments and the remaining operating segments, included in Other, and Corporate:(in millions)202420232022Pharmaceutical and Specialty Solutions$210,019 $188,814 $164,596 Global Medical Products and Distribution12,381 12,222 13,280 Other4,512 4,021 3,518 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.The following table presents revenue for the two reportable segments and disaggregated revenue within the remaining operating segments, included in Other, and Corporate: (in millions)202420232022Pharmaceutical and Specialty Solutions$210,019 $188,814 $164,596 Global Medical Products and Distribution12,381 12,222 13,280 Nuclear and Precision Health Solutions (2)1,369 1,197 911 at-Home Solutions2,869 2,584 2,394 OptiFreight® Logistics274 240 213 Other4,512 4,021 3,518 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.(2)Increase in 2023 relates to new product launches and changes in revenue presentation from agent to principal for certain customer contracts.The following table presents revenue by geographic area:(in millions)202420232022United States$225,231 $203,440 $179,471 International1,681 1,617 1,923 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. Revenue The following table presents revenue for the two reportable segments and the remaining operating segments, included in Other, and Corporate: (in millions)202420232022Pharmaceutical and Specialty Solutions$210,019 $188,814 $164,596 Global Medical Products and Distribution12,381 12,222 13,280 Other4,512 4,021 3,518 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents revenue for the two reportable segments and disaggregated revenue within the remaining operating segments, included in Other, and Corporate: (in millions)202420232022Pharmaceutical and Specialty Solutions$210,019 $188,814 $164,596 Global Medical Products and Distribution12,381 12,222 13,280 Nuclear and Precision Health Solutions (2)1,369 1,197 911 at-Home Solutions2,869 2,584 2,394 OptiFreight® Logistics274 240 213 Other4,512 4,021 3,518 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 Nuclear and Precision Health Solutions (2) OptiFreight® Logistics (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. (2)Increase in 2023 relates to new product launches and changes in revenue presentation from agent to principal for certain customer contracts. The following table presents revenue by geographic area: (in millions)202420232022United States$225,231 $203,440 $179,471 International1,681 1,617 1,923 Total segment revenue226,912 205,057 181,394 Corporate (1)(85)(78)(68)Total revenue$226,827 $204,979 $181,326 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. Cardinal Health | Fiscal 2024 Form 10-K81 Cardinal Health | Fiscal 2024 Form 10-K81 Cardinal Health | Fiscal 2024 Form 10-K81 Cardinal Health | Fiscal 2024 Form 10-K 81"
    },
    {
      "status": "ADDED",
      "current_title": "Segment Profit",
      "prior_title": null,
      "current_body": "We evaluate segment performance based on segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment distribution, selling, general and administrative (\"SG&A\") expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate technology and shared functions expenses, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology and legal and compliance, including certain litigation defense costs. Corporate expenses are allocated to the operating segments based on headcount, level of benefit provided and other ratable allocation methodologies. The results attributable to noncontrolling interests are recorded within segment profit. We do not allocate the following items to our segments: •last-in first-out, or (\"LIFO\"), inventory charges/(credits); •state opioid assessment related to prior fiscal years; •shareholder cooperation agreement costs; •restructuring and employee severance; •amortization and other acquisition-related costs; •impairments and (gain)/loss on disposal of assets, net; in connection with goodwill impairment testing for the GMPD segment as discussed further in Note 5, we recognized pre-tax goodwill impairment charges of $675 million, $1.2 billion and $2.1 billion during fiscal 2024, 2023 and 2022, respectively; •litigation (recoveries)/charges, net; •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; or •provision for/(benefit from) income taxes In addition, certain investment spending, certain portions of enterprise-wide incentive compensation and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $59 million, $35 million and $50 million for fiscal 2024, 2023 and 2022, respectively. The following table presents segment profit for the two reportable segments and the remaining operating segments, included in Other, and Corporate: (in millions)202420232022Pharmaceutical and Specialty Solutions$2,015 $1,881 $1,643 Global Medical Products and Distribution92 (147)(64)Other423 396 390 Total segment profit2,530 2,130 1,969 Corporate(1,287)(1,378)(2,576)Total operating earnings/(loss)$1,243 $752 $(607) Other The following tables present depreciation and amortization and additions to property and equipment for the two reportable segments and the remaining operating segments, included in Other, and Corporate:(in millions)202420232022Pharmaceutical and Specialty Solutions$184 $194 $170 Global Medical Products and Distribution205 173 176 Other79 71 65 Corporate242 254 281 Total depreciation and amortization$710 $692 $692 (in millions)202420232022Pharmaceutical and Specialty Solutions$76 $56 $54 Global Medical Products and Distribution136 191 135 Other81 52 30 Corporate218 182 168 Total additions to property and equipment$511 $481 $387 The following table presents total assets for the two reportable segments and the remaining operating segments, included in Other, and Corporate at June 30:(in millions)20242023Pharmaceutical and Specialty Solutions$29,149 $27,715 Global Medical Products and Distribution (1)7,047 7,903 Other2,606 2,514 Corporate6,319 5,217 Total assets$45,121 $43,349 (1)GMPD reflects a $675 million reduction in goodwill due to pre-tax impairment charges recorded during fiscal 2024.The following table presents property and equipment, net by geographic area:(in millions)20242023United States$2,106 $2,025 International423 436 Property and equipment, net$2,529 $2,461 The following tables present depreciation and amortization and additions to property and equipment for the two reportable segments and the remaining operating segments, included in Other, and Corporate: (in millions)202420232022Pharmaceutical and Specialty Solutions$184 $194 $170 Global Medical Products and Distribution205 173 176 Other79 71 65 Corporate242 254 281 Total depreciation and amortization$710 $692 $692 (in millions)202420232022Pharmaceutical and Specialty Solutions$76 $56 $54 Global Medical Products and Distribution136 191 135 Other81 52 30 Corporate218 182 168 Total additions to property and equipment$511 $481 $387 The following table presents total assets for the two reportable segments and the remaining operating segments, included in Other, and Corporate at June 30: (in millions)20242023Pharmaceutical and Specialty Solutions$29,149 $27,715 Global Medical Products and Distribution (1)7,047 7,903 Other2,606 2,514 Corporate6,319 5,217 Total assets$45,121 $43,349 (1)GMPD reflects a $675 million reduction in goodwill due to pre-tax impairment charges recorded during fiscal 2024. The following table presents property and equipment, net by geographic area: (in millions)20242023United States$2,106 $2,025 International423 436 Property and equipment, net$2,529 $2,461 82Cardinal Health | Fiscal 2024 Form 10-K 82Cardinal Health | Fiscal 2024 Form 10-K 82Cardinal Health | Fiscal 2024 Form 10-K 82 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "ADDED",
      "current_title": "16. Revision of Previously Issued Financial Statements (Unaudited)",
      "prior_title": null,
      "current_body": "The amounts below reflect the unaudited interim periods within fiscal 2024 and include the revisions to previously filed unaudited interim condensed consolidated financial data to correct immaterial prior period errors as discussed in Note 1. We intend to reflect these revisions in our Quarterly Reports to be filed on Form 10-Q in fiscal 2025. The following tables set forth our revisions to the condensed consolidated statements of earnings/(loss) for each of the first three quarters in fiscal 2024 and fiscal 2023. Three Months Ended September 30, 2023Three Months Ended December 31, 2023Three Months Ended March 31, 2024(in millions, except per common share amounts)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedRevenue$54,763 $(113)$54,650 $57,445 $(3)$57,442 $54,911 $(43)$54,868 Cost of products sold52,995 (88)52,907 55,599 (11)55,588 52,964 (31)52,933 Gross margin1,768 (25)1,743 1,846 8 1,854 1,947 (12)1,935 Distribution, selling, general and administrative expenses1,197 (11)1,186 1,283 (15)1,268 1,282 (13)1,269 Impairments and (gain)/loss on disposal of assets, net537 4 541 1 — 1 84 — 84 Litigation (recoveries)/charges, net(41)— (41)(11)— (11)81 (1)80 Operating earnings/(loss)(14)(18)(32)482 23 505 367 2 369 Other (income)/expense, net(2)3 1 (16)6 (10)(7)6 (1)Interest expense, net14 (3)11 8 (5)3 33 (5)28 Earnings/(loss) before income taxes(26)(18)(44)490 22 512 341 1 342 Provision for/(benefit from) income taxes(32)(1)(33)136 7 143 82 (2)80 Net earnings/(loss)6 (17)(11)354 15 369 259 3 262 Net earnings/(loss) attributable to Cardinal Health, Inc. 5 (17)(12)353 15 368 258 3 261 Earnings/(loss) per common share attributable to Cardinal Health, Inc.Basic$0.02 $(0.07)$(0.05)$1.44 $0.06 $1.50 $1.06 $0.01 $1.07 Diluted0.02 (0.07)(0.05)1.43 0.07 1.50 1.05 0.02 1.07"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Legal proceedings could adversely impact our cash flows or results of operations.",
      "prior_body": "Due to the nature of our business, which includes the distribution of controlled substances and other pharmaceutical products and the sourcing, marketing and manufacturing of medical products, we regularly become involved in disputes, litigation and regulatory matters. Litigation is inherently unpredictable and the unfavorable outcome of legal proceedings could adversely affect our results of operations or financial condition. For example, we are subject to a number of lawsuits and investigations related to the national health crisis involving the abuse of opioid pain medication as described above in the Risk Factor titled \"Opioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business\" and in Note 7 to the \"Notes to Consolidated Financial Statements.\" Additionally, some of the products that we distribute or manufacture have been and may in the future be alleged to cause personal injury, subjecting us to product liability claims. For example, since July 2021, we have entered into settlement 38Cardinal Health | Fiscal 2023 Form 10-K 38Cardinal Health | Fiscal 2023 Form 10-K 38Cardinal Health | Fiscal 2023 Form 10-K 38 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Risk Factors",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "PeriodTotal Numberof SharesPurchased (1)Average Price Paid per ShareTotal Number of SharesPurchasedas Part of Publicly Announced Programs (2)ApproximateDollar Value ofShares That MayYet be PurchasedUnder the Programs (3)(in millions)April 2023234 $79.43 — $1,243 May 2023137 83.79 — 1,243 June 20234,588,337 87.18 4,588,208 4,343 Total4,588,708 $87.18 4,588,208 $4,343",
      "prior_body": "(1)Reflects 234, 137 and 129 common shares purchased in April, May and June 2023, respectively, through a rabbi trust as investments of participants in our Deferred Compensation Plan. (2)On June 12, 2023, we entered into an accelerated share repurchase (\"ASR\") program to purchase common shares for an aggregate purchase price of $500 million and received an initial delivery of 4.6 million common shares using a reference price of $87.18. The ASR program is expected to conclude in the first quarter of fiscal 2024. See Note 11 of the \"Notes to Consolidated Financial Statements\" for additional information. (3)On November 4, 2021, our Board of Directors approved a $3.0 billion share repurchase program which will expire on December 31, 2024. On June 7, 2023, our Board of Directors approved a new $3.5 billion share repurchase program which will expire on December 31, 2027. As of June 30, 2023, we have $4.3 billion authorized for share repurchases remaining under these programs. Cardinal Health | Fiscal 2023 Form 10-K45 Cardinal Health | Fiscal 2023 Form 10-K45 Cardinal Health | Fiscal 2023 Form 10-K45 Cardinal Health | Fiscal 2023 Form 10-K 45"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Major Customers",
      "prior_body": "CVS Health Corporation (\"CVS Health\") and OptumRx, are our only customers that individually account for at least 10 percent of revenue and gross trade receivables. These customers are primarily serviced through our Pharmaceutical segment. Cardinal Health | Fiscal 2023 Form 10-K57 Cardinal Health | Fiscal 2023 Form 10-K57 Cardinal Health | Fiscal 2023 Form 10-K57 Cardinal Health | Fiscal 2023 Form 10-K 57"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Loss Contingencies",
      "prior_body": "We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In connection with the opioid litigation as described further in the Note 7, we recorded pre-tax charges of $1.17 billion during fiscal 2021, which were retained at Corporate. In February 2022, we and two other national distributors announced that each company had determined that a sufficient number of political subdivisions had agreed to participate in the previously disclosed settlement 60Cardinal Health | Fiscal 2023 Form 10-K 60Cardinal Health | Fiscal 2023 Form 10-K 60Cardinal Health | Fiscal 2023 Form 10-K 60 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Opioid Lawsuits and Investigations",
      "prior_body": "Cardinal Health, other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain have been named as a defendant in lawsuits related to the distribution of opioid pain medications. These lawsuits seek equitable relief and monetary damages based on a variety of legal theories, including various common law claims, such as public nuisance, negligence, unjust enrichment, personal injury, as well as violations of controlled 68Cardinal Health | Fiscal 2023 Form 10-K 68Cardinal Health | Fiscal 2023 Form 10-K 68Cardinal Health | Fiscal 2023 Form 10-K 68 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Shareholder Securities Litigation",
      "prior_body": "In August 2019, the Louisiana Sheriffs' Pension & Relief Fund filed a purported class action complaint against Cardinal Health and certain current and former officers and employees in the United States District Court for the Southern District of Ohio purportedly on behalf of all purchasers of our common shares between March 2015 and May 2018. In June 2020, the court appointed 1199 SEIU Health Care Employees Pension Fund as lead plaintiff and a consolidated amended complaint was filed in September 2020. The amended complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 by making misrepresentations and omissions related to the acquisition integration of the Cordis business and inventory and supply chain problems within the Cordis business, and seeks to recover unspecified damages and equitable relief for the alleged misstatements and omissions. The complaint also alleges that one of the individual defendants violated Section 20A of the Exchange Act because he sold shares of Cardinal Health stock during the time period. In February 2023, we reached an agreement in principle with the plaintiffs to settle this matter for $109 million, subject to final approval by the court. The court granted its preliminary approval in April 2023 and will conduct a final hearing in September 2023. If the settlement is approved, our insurance carriers will pay $109 million to the plaintiffs. In fiscal year 2023, we have received approximately $9 million in insurance recoveries for costs incurred in connection with this matter.Other Civil Litigation Generic Pharmaceutical Pricing Antitrust Litigation In December 2019, pharmaceutical distributors including us were added as defendants in a civil class action lawsuit filed by indirect purchasers of generic drugs, such as hospitals and retail pharmacies. The indirect purchaser case is part of a multidistrict litigation consisting of multiple individual class action matters consolidated in the Eastern District of Pennsylvania. The indirect purchaser plaintiffs allege that pharmaceutical distributors encouraged manufacturers to increase prices, provided anti-competitive pricing information to manufacturers and improperly engaged in customer allocation. In May 2020, the court granted our motion to dismiss. In July 2022, the indirect purchasers filed an amended complaint and in August 2022, we filed a motion to dismiss the intended complaint. We are vigorously defending ourselves in this matter.Antitrust Litigation ProceedsWe received and recognized income resulting from settlements of lawsuits in which we were a class member or plaintiff of $130 million, $18 million and $112 million during fiscal 2023, 2022 and 2021, respectively.Shareholder Derivative LitigationBetween June 2019 and January 2020, three purported shareholders filed actions on behalf of Cardinal Health, Inc. in the U.S. District Court for the Southern District of Ohio against certain current and former members of our Board of Directors alleging that the defendants breached their fiduciary duties by failing to effectively monitor Cardinal Health's distribution of controlled substances and approving certain payments of executive compensation. In January 2020, the court consolidated these derivative cases under the caption In re Cardinal Health, Inc. Derivative Litigation and in March 2020, plaintiffs filed an amended complaint.In October 2022, the court entered an order approving the settlement agreement reached between the parties and dismissing the case. The settlement does not include any admission of liability. Under this settlement, in December 2022, Cardinal Health's director and officer liability insurance carriers, on behalf of the defendants, paid Cardinal Health $124 million, less approximately $31 million in attorneys' fees and expenses awarded by the court to plaintiffs' counsel. Cardinal Health received net cash proceeds resulting from this settlement of $93 million, which was recognized in litigation (recoveries)/charges, net, during the fiscal year 2023. time period. In February 2023, we reached an agreement in principle with the plaintiffs to settle this matter for $109 million, subject to final approval by the court. The court granted its preliminary approval in April 2023 and will conduct a final hearing in September 2023. If the settlement is approved, our insurance carriers will pay $109 million to the plaintiffs. In fiscal year 2023, we have received approximately $9 million in insurance recoveries for costs incurred in connection with this matter."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Shareholder Derivative Litigation",
      "prior_body": "Between June 2019 and January 2020, three purported shareholders filed actions on behalf of Cardinal Health, Inc. in the U.S. District Court for the Southern District of Ohio against certain current and former members of our Board of Directors alleging that the defendants breached their fiduciary duties by failing to effectively monitor Cardinal Health's distribution of controlled substances and approving certain payments of executive compensation. In January 2020, the court consolidated these derivative cases under the caption In re Cardinal Health, Inc. Derivative Litigation and in March 2020, plaintiffs filed an amended complaint. In October 2022, the court entered an order approving the settlement agreement reached between the parties and dismissing the case. The settlement does not include any admission of liability. Under this settlement, in December 2022, Cardinal Health's director and officer liability insurance carriers, on behalf of the defendants, paid Cardinal Health $124 million, less approximately $31 million in attorneys' fees and expenses awarded by the court to plaintiffs' counsel. Cardinal Health received net cash proceeds resulting from this settlement of $93 million, which was recognized in litigation (recoveries)/charges, net, during the fiscal year 2023. 70Cardinal Health | Fiscal 2023 Form 10-K 70Cardinal Health | Fiscal 2023 Form 10-K 70Cardinal Health | Fiscal 2023 Form 10-K 70 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Tax Effects of Goodwill Impairment Charges",
      "prior_body": "During fiscal 2023 and 2022, we recognized cumulative pre-tax goodwill impairment charges of $1.2 billion and $2.1 billion, respectively, related to the Medical Unit. The net tax benefits related to these charges were $82 million and $150 million during fiscal 2023 and 2022, respectively."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Tax Effects of Self-Insurance Pre-Tax Loss",
      "prior_body": "During fiscal 2021, our wholly-owned insurance subsidiary recorded a self-insurance pre-tax loss in its fiscal 2020 statutory financial statements primarily related to opioid litigation. This self-insurance pre-tax loss, which did not impact our pre-tax consolidated results, was deducted on our fiscal 2020 consolidated federal income tax return and contributed to a significant net operating loss for tax purposes. The net operating loss was carried back and applied to adjust our taxable income for fiscal 2015, 2016, 2017 and 2018 as permitted under the Coronavirus Aid, Relief and Economic Security (\"CARES\") Act enacted by the United States Congress in March 2020. Accordingly, our provision for income taxes during fiscal 2021 included a $424 million benefit from the net operating loss carryback primarily to reflect the difference between the federal statutory income tax rate during the fiscal years from 2015 to 2018 (35 percent for fiscal 2015, 2016 and 2017 and 28 percent for fiscal 2018) and the current federal statutory income tax rate of 21 percent.In fiscal 2021, we filed for a refund of $974 million and in April 2022, we received a payment for $966 million, which was net of certain adjustments. We also increased our non-current deferred tax liability by approximately $700 million during fiscal 2021 related to this matter.We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of tax law; however, it is possible that the tax authorities could challenge these tax benefits. The actual amount of the tax benefit may differ materially from these estimates.Tax Effects of Opioid Litigation ChargesIn connection with the $1.17 billion pre-tax charge for the opioid litigation recorded during fiscal 2021, the net tax benefit was approximately $228 million. Our tax benefits are estimates, which reflect our current assessment of the estimated future deductibility of the amount that may be paid under the accrual taken in connection with the opioid litigation and are net of unrecognized tax benefits of $219 million.We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Jobs Act (\"Tax Act\"); however, these estimates require significant judgment since the U.S. tax law governing deductibility was changed by the Tax Act. Further, it is possible Congress or the tax authorities could challenge our interpretation of the Tax Act or the estimates and assumptions used to assess the future deductibility of these benefits. The actual amount of the tax benefit may differ materially from these estimates.Effective Tax RateThe following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate: 202320222021Provision at Federal statutory rate21.0 %21.0 %21.0 %State and local income taxes, net of federal benefit6.6 2.2 3.2 Tax effect of foreign operations(4.2)3.5 0.7 Nondeductible/nontaxable items(1.1)1.2 1.6 Impact of Divestitures— (4.9)7.0 Withholding Taxes1.0 (1.1)9.0 Change in Valuation Allowances(5.3)3.5 (1.4)US Taxes on International Income (2)(0.7)3.2 (6.7)Impact of Resolutions with IRS and other related matters 5.8 (0.6)(13.6)Opioid litigation0.1 (0.5)17.7 Goodwill Impairment36.9 (49.5)— Loss Carryback Claims— — (129.9)Other (1.2)0.8 1.7 Effective income tax rate58.9 %(21.2)%(89.7)%(1) This table reflects fiscal 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense and fiscal 2021 pretax income with tax benefit. fiscal 2018) and the current federal statutory income tax rate of 21 percent. In fiscal 2021, we filed for a refund of $974 million and in April 2022, we received a payment for $966 million, which was net of certain adjustments. We also increased our non-current deferred tax liability by approximately $700 million during fiscal 2021 related to this matter. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of tax law; however, it is possible that the tax authorities could challenge these tax benefits. The actual amount of the tax benefit may differ materially from these estimates."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Tax Effects of Opioid Litigation Charges",
      "prior_body": "In connection with the $1.17 billion pre-tax charge for the opioid litigation recorded during fiscal 2021, the net tax benefit was approximately $228 million. Our tax benefits are estimates, which reflect our current assessment of the estimated future deductibility of the amount that may be paid under the accrual taken in connection with the opioid litigation and are net of unrecognized tax benefits of $219 million. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Jobs Act (\"Tax Act\"); however, these estimates require significant judgment since the U.S. tax law governing deductibility was changed by the Tax Act. Further, it is possible Congress or the tax authorities could challenge our interpretation of the Tax Act or the estimates and assumptions used to assess the future deductibility of these benefits. The actual amount of the tax benefit may differ materially from these estimates."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Balance at end of fiscal year",
      "prior_body": "It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service (\"IRS\") or other taxing authorities, possible settlement of audit issues, 72Cardinal Health | Fiscal 2023 Form 10-K 72Cardinal Health | Fiscal 2023 Form 10-K 72Cardinal Health | Fiscal 2023 Form 10-K 72 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Cash Flow Hedges",
      "prior_body": "We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. During fiscal 2021, we terminated forward interest rate swaps with a total notional amount of $200 million that were entered into in fiscal 2020 because the forecasted transactions were probable of not occurring. As a result, we reclassified an immaterial deferred gain from accumulated other comprehensive loss into interest expense, net in our consolidated statements of earnings/(loss). Gains currently included within accumulated other comprehensive loss associated with our cash flow hedges to be reclassified into net earnings within the next 12 months are immaterial. We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses. At June 30, 2023 and 2022, we held contracts to hedge probable, but not firmly committed, revenue and expenses. The principal currencies hedged are the Canadian dollar, Mexican peso, Chinese renminbi, Thai baht, Euro, Japanese yen, Philippine peso, Australian dollar, Indian rupee, British pound and Swiss franc. We enter into commodity contracts to manage the price risk associated with forecasted purchases of certain commodities used in our Medical segment. 74Cardinal Health | Fiscal 2023 Form 10-K 74Cardinal Health | Fiscal 2023 Form 10-K 74Cardinal Health | Fiscal 2023 Form 10-K 74 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Notes to Financial Statements",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Notes to Financial Statements",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Notes to Financial Statements",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Schedule II - Valuation and Qualifying Accounts",
      "prior_body": "(in millions)Balance atBeginning of PeriodCharged to Costsand Expenses (1)Charged toOther Accounts (2)Deductions (3)Balance atEnd of PeriodFiscal 2023Accounts receivable$273 $197 $— $(171)$299 Finance notes receivable8 — — (2)6 Sales returns and allowances617 2,217 — (2,360)474 $898 $2,414 $— $(2,533)$779 Fiscal 2022Accounts receivable$243 $154 $1 $(125)$273 Finance notes receivable12 1 — (5)8 Sales returns and allowances689 2,359 — (2,431)617 $944 $2,514 $1 $(2,561)$898 Fiscal 2021Accounts receivable$207 $129 $1 $(94)$243 Finance notes receivable27 5 — (20)12 Sales returns and allowances495 2,568 — (2,374)689 $729 $2,702 $1 $(2,488)$944 (1)Fiscal 2023, 2022 and 2021 include $98 million, $87 million and $70 million, respectively, for reserves related to service charges and customer pricing disputes, excluded from provision for bad debts on the consolidated statements of cash flows and classified as a reduction in revenue in the consolidated statements of earnings/(loss). (2)Recoveries of amounts provided for or written off in prior years was $1 million in each fiscal year 2023, 2022 and 2021. (3)Write-off of uncollectible accounts or actual sales returns. The sum of the components may not equal the total due to rounding. Cardinal Health | Fiscal 2023 Form 10-K81 Cardinal Health | Fiscal 2023 Form 10-K81 Cardinal Health | Fiscal 2023 Form 10-K81 Cardinal Health | Fiscal 2023 Form 10-K 81"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Information About Our Executive Officers",
      "prior_body": "The following is a list of our executive officers: NameAgePositionJason M. Hollar50Chief Executive OfficerAaron E. Alt51Chief Financial OfficerDeborah L. Weitzman58Chief Executive Officer, Pharmaceutical segmentStephen M. Mason52Chief Executive Officer, Medical segmentOla M. Snow56Chief Human Resources OfficerJessica L. Mayer54Chief Legal and Compliance OfficerMichelle D. Greene53Executive Vice President, Chief Information Officer and Customer Support Services The business experience summaries provided below for our executive officers describe positions held during the last five years (unless otherwise indicated). Mr. Hollar has served as Chief Executive Officer since September 2022. From May 2020 through August 2022, Mr. Hollar served as Chief Financial Officer. Prior to that, Mr. Hollar served as the Executive Vice President and Chief Financial Officer of Tenneco Inc. (\"Tenneco\") from July 2018. From June 2017 to June 2018, Mr. Hollar was Senior Vice President Finance at Tenneco. Prior to that, Mr. Hollar served as Chief Financial Officer of Sears Holding Corporation (\"Sears\") from October 2016 to April 2017. Sears filed for Chapter 11 bankruptcy in October 2018. Mr. Alt has served as Chief Financial Officer since February 2023. Prior to that, Mr. Alt served as Executive Vice President and Chief Financial Officer of Sysco Corporation from December 2020. From October 2018 to November 2020, Mr. Alt served as Senior Vice President and Chief Financial Officer of Sally Beauty Holdings, Inc. and President of Sally Beauty Supply. Prior to that, Mr. Alt was Sally Beauty Holdings' Senior Vice President, Chief Financial Officer and Chief Administrative Officer from May 2018 to October 2018. Ms. Weitzman has served as Chief Executive Officer, Pharmaceutical segment since September 2022. From July 2017 until September 2022, Ms. Weitzman served as the President of our Pharmaceutical Distribution division. Mr. Mason has served as Chief Executive Officer, Medical segment since August 2019. From September 2016 through August 2019, Mr. Mason served as President of Cardinal Health at-Home Solutions within our Medical segment. Ms. Snow has served as Chief Human Resources Officer since October 2018. From January 2016 through September 2018, Ms. Snow served as our Senior Vice President, Human Resources, Total Rewards, Talent Acquisition and Corporate Business Partner. Ms. Mayer has served as Chief Legal and Compliance Officer since March 2019. Ms. Mayer served as Executive Vice President, Deputy General Counsel and Secretary from September 2017 through March 2019. Ms. Greene has served as Executive Vice President, Chief Information Officer and Customer Support Services since August 2022. From February 2021 until August 2022, Ms. Greene served as the Senior Vice President of Pharmaceutical segment Information Technology. Prior to joining Cardinal Health, Ms. Greene served as Vice President, Information Technology, at Masco Corporation from March 2018 through February 2021."
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Directors and Corporate Governance",
      "prior_body": "We have adopted Standards of Business Conduct that apply to all of our directors, officers and employees. The Standards of Business Conduct outline our corporate values and standards of integrity and behavior and are designed to protect and promote our reputation. The full text of the Standards of Business Conduct is posted on our website at www.cardinalhealth.com under “About Us — Ethics and Compliance.” Any waiver of the Standards of Business Conduct for directors or executive officers must be approved by the Risk Oversight Committee. As required under SEC and New York Stock Exchange rules, we will disclose future amendments to our Standards of Business Conduct and waivers from the Standards of Business Conduct for our principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions, and our other executive officers and directors on our website within four business days following the date of the amendment or waiver. 82Cardinal Health | Fiscal 2023 Form 10-K 82Cardinal Health | Fiscal 2023 Form 10-K 82Cardinal Health | Fiscal 2023 Form 10-K 82 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Directors, Executive Officers, and Corporate Governance",
      "prior_body": "The other information called for by Item 10 of Form 10-K is incorporated by reference to our Definitive Proxy Statement (which will be filed with the SEC pursuant to Regulation 14A under the Exchange Act) relating to our 2023 Annual Meeting of Shareholders (our “2023 Proxy Statement”) under the captions “Corporate Governance” and “Share Ownership Information.” The other information called for by Item 12 of Form 10-K is incorporated by reference to our 2023 Proxy Statement under the caption \"Share Ownership Information.\" Cardinal Health | Fiscal 2023 Form 10-K83 Cardinal Health | Fiscal 2023 Form 10-K83 Cardinal Health | Fiscal 2023 Form 10-K83 Cardinal Health | Fiscal 2023 Form 10-K 83 Exhibits Exhibits"
    },
    {
      "status": "REMOVED",
      "current_title": null,
      "prior_title": "Exhibits, Financial Statement Schedules",
      "prior_body": "(a)(1) The following financial statements are included in the \"Financial Statements\" section of this report: PageConsolidated Financial Statements and Schedule:51Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42)51Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 202152Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 202153Consolidated Balance Sheets at June 30, 2023 and 202254Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2023, 2022 and 202155Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2023, 2022 and 202156Notes to Consolidated Financial Statements57 51 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42) 51 Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 52 Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 53 Consolidated Balance Sheets at June 30, 2023 and 2022 54 Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 55 Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2023, 2022 and 2021 56 Notes to Consolidated Financial Statements 57 (a)(2) The following Supplemental Schedule is included in this report: PageSchedule II - Valuation and Qualifying Accounts81 Schedule II - Valuation and Qualifying Accounts 81 All other schedules not listed above have been omitted as not applicable or because the required information is included in the Consolidated Financial Statements or in the Notes thereto. ExhibitNumberExhibit Description2.1.1Stock and Asset Purchase Agreement, dated April 18, 2017, between Cardinal Health, Inc. and Medtronic plc (incorporated by reference to Exhibit 2.1 to Cardinal Health's Current Report on Form 8-K filed on April 18, 2017, File No. 1-11373)2.1.2Amendment No. 1, dated as of July 28, 2017, to Stock and Asset Purchase Agreement, dated April 18, 2017, between Cardinal Health, Inc. and Medtronic plc (incorporated by reference to Exhibit 2.2.2 to Cardinal Health's Annual Report on Form 10-K for the year ended June 30, 2017, File No. 1-11373)3.1Amended and Restated Articles of Incorporation of Cardinal Health, Inc., as amended (incorporated by reference to Exhibit 3.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, File No. 1-11373)3.2Cardinal Health, Inc. Restated Code of Regulations (incorporated by reference to Exhibit 3.1 to Cardinal Health’s Current Report on Form 8-K filed on May 11, 2023, File No. 1-11373)4.1Specimen Certificate for Common Shares of Cardinal Health, Inc. (incorporated by reference to Exhibit 4.01 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2001, File No. 1-11373)4.2.1Indenture, dated as of June 2, 2008, between Cardinal Health, Inc. and The Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to Cardinal Health’s Current Report on Form 8-K filed on June 2, 2008, File No. 1-11373)4.2.2Form of 3.200% Notes due 2022 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on May 21, 2012, File No. 1-11373)4.2.3Form of 3.200% Notes due 2023 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on February 22, 2013, File No. 1-11373)4.2.4Form of 4.600% Notes due 2043 (incorporated by reference to Exhibit 4.3 to Cardinal Health's Current Report on Form 8-K filed on February 22, 2013, File No. 1-11373)4.2.5Form of 3.500% Notes due 2024 (incorporated by reference to Exhibit 4.2 to Cardinal Health’s Current Report on Form 8-K filed on November 19, 2014, File No. 1-11373)4.2.6Form of 4.500% Notes due 2044 (incorporated by reference to Exhibit 4.3 to Cardinal Health’s Current Report on Form 8-K filed on November 19, 2014, File No. 1-11373)4.2.7Form of 3.750% Notes due 2025 (incorporated by reference to Exhibit 4.2 to Cardinal Health’s Current Report on Form 8-K filed on June 23, 2015, File No. 1-11373)4.2.8Form of 4.900% Notes due 2045 (incorporated by reference to Exhibit 4.3 to Cardinal Health’s Current Report on Form 8-K filed on June 23, 2015, File No. 1-11373)4.2.11Form of 2.616% notes due 2022 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373)4.2.12Form of Floating rate notes due 2022 (incorporated by reference to Exhibit 4.3 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373)4.2.13Form of 3.079% notes due 2024 (incorporated by reference to Exhibit 4.4 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373)4.2.14Form of 3.410% notes due 2027 (incorporated by reference to Exhibit 4.5 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) Stock and Asset Purchase Agreement, dated April 18, 2017, between Cardinal Health, Inc. and Medtronic plc (incorporated by reference to Exhibit 2.1 to Cardinal Health's Current Report on Form 8-K filed on April 18, 2017, File No. 1-11373) Amendment No. 1, dated as of July 28, 2017, to Stock and Asset Purchase Agreement, dated April 18, 2017, between Cardinal Health, Inc. and Medtronic plc (incorporated by reference to Exhibit 2.2.2 to Cardinal Health's Annual Report on Form 10-K for the year ended June 30, 2017, File No. 1-11373) Amended and Restated Articles of Incorporation of Cardinal Health, Inc., as amended (incorporated by reference to Exhibit 3.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, File No. 1-11373) Cardinal Health, Inc. Restated Code of Regulations (incorporated by reference to Exhibit 3.1 to Cardinal Health’s Current Report on Form 8-K filed on May 11, 2023, File No. 1-11373) Specimen Certificate for Common Shares of Cardinal Health, Inc. (incorporated by reference to Exhibit 4.01 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2001, File No. 1-11373) Indenture, dated as of June 2, 2008, between Cardinal Health, Inc. and The Bank of New York Trust Company, N.A. (incorporated by reference to Exhibit 4.1 to Cardinal Health’s Current Report on Form 8-K filed on June 2, 2008, File No. 1-11373) Form of 3.200% Notes due 2022 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on May 21, 2012, File No. 1-11373) Form of 3.200% Notes due 2023 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on February 22, 2013, File No. 1-11373) Form of 4.600% Notes due 2043 (incorporated by reference to Exhibit 4.3 to Cardinal Health's Current Report on Form 8-K filed on February 22, 2013, File No. 1-11373) Form of 3.500% Notes due 2024 (incorporated by reference to Exhibit 4.2 to Cardinal Health’s Current Report on Form 8-K filed on November 19, 2014, File No. 1-11373) Form of 4.500% Notes due 2044 (incorporated by reference to Exhibit 4.3 to Cardinal Health’s Current Report on Form 8-K filed on November 19, 2014, File No. 1-11373) Form of 3.750% Notes due 2025 (incorporated by reference to Exhibit 4.2 to Cardinal Health’s Current Report on Form 8-K filed on June 23, 2015, File No. 1-11373) Form of 4.900% Notes due 2045 (incorporated by reference to Exhibit 4.3 to Cardinal Health’s Current Report on Form 8-K filed on June 23, 2015, File No. 1-11373) Form of 2.616% notes due 2022 (incorporated by reference to Exhibit 4.2 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) Form of Floating rate notes due 2022 (incorporated by reference to Exhibit 4.3 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) Form of 3.079% notes due 2024 (incorporated by reference to Exhibit 4.4 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) Form of 3.410% notes due 2027 (incorporated by reference to Exhibit 4.5 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) 84Cardinal Health | Fiscal 2023 Form 10-K 84Cardinal Health | Fiscal 2023 Form 10-K 84Cardinal Health | Fiscal 2023 Form 10-K 84 Cardinal Health | Fiscal 2023 Form 10-K Exhibits Exhibits 4.2.15Form of 4.368% notes due 2047 (incorporated by reference to Exhibit 4.6 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373)4.3Agreement to furnish to the Securities and Exchange Commission upon request a copy of instruments defining the rights of holders of certain long-term debt of Cardinal Health, Inc. and consolidated subsidiaries (incorporated by reference to Exhibit 4.07 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2005, File No. 1-11373)4.4Description of Securities (incorporated by reference to Exhibit 4.4 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373)10.1.1Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373)* 10.1.2Form of Restricted Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)*10.1.3Form of Performance Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)* 10.1.4Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)* 10.1.5Form of Directors’ Restricted Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.5 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373) 10.1.6Cardinal Health, Inc. Management Incentive Plan (incorporated by reference to Exhibit 10.6 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373)* 10.2.1Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Current Report on Form 8-K/A filed on November 4, 2011, File No. 1-11373)*10.2.2First Amendment to Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2014)*10.2.3Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Current Report on Form 8-K/A filed on November 4, 2011, File No. 1-11373)*10.2.4Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1.3 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012, File No. 1-11373)*10.2.5Form of Amendment to Stock Option and Restricted Share Units Agreements under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan, the Cardinal Health, Inc. 2005 Long-Term Incentive Plan and the Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.1.9 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2013, File No. 1-11373)*10.3.1Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on November 7, 2016, File No. 1-11373)*10.3.2First Amendment to Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)*10.3.3Second Amendment to the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 3019, File No. 1-11373)*10.3.4Form of Nonqualified Stock Option Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.3 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)*10.3.5Form of Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.4 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)*10.3.6Form of Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporate by reference to Exhibit 10.3 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373)*10.3.7Form of Performance Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.5 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)*10.3.8Form of Performance Share Units Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, File No. 1-11373)10.3.9Form of Directors Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2018, File No. 1-11373)10.4.1Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2007, File No. 1-11373)*10.4.2First Amendment to Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.2.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, File No. 1-11373)*10.4.3Second Amendment to the Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to Cardinal Health's Quarterly Report on Form 10-Q for the Quarter ended December 31, 2011, File No. 1-11373)*10.5.1Cardinal Health Deferred Compensation Plan, Amended and Restated effective January 1, 2020 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373)*10.5.2First Amendment to the Cardinal Health Deferred Compensation Plan, as amended and restated on January 1, 2020 (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, File No. 1-11373)*10.5.3Second Amendment to the Cardinal Health Deferred Compensation Plan, as amended and restated on January 1, 2020, dated November 4, 2022 (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the for the quarter ended December 31, 2022)*10.6.1Cardinal Health, Inc. Senior Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on September 26, 2018, File No. 1-11373) Form of 4.368% notes due 2047 (incorporated by reference to Exhibit 4.6 to Cardinal Health's Current Report on Form 8-K filed on June 12, 2017, File No. 1-11373) Agreement to furnish to the Securities and Exchange Commission upon request a copy of instruments defining the rights of holders of certain long-term debt of Cardinal Health, Inc. and consolidated subsidiaries (incorporated by reference to Exhibit 4.07 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2005, File No. 1-11373) Description of Securities (incorporated by reference to Exhibit 4.4 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373) Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373)* Form of Restricted Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)* Form of Performance Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)* Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4.2 to Cardinal Health’s Quarterly Report on Form 10-Q filed on February 3, 2022, File No. 1-11373)* Form of Directors’ Restricted Share Units Agreement under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.5 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373) Cardinal Health, Inc. Management Incentive Plan (incorporated by reference to Exhibit 10.6 to Cardinal Health’s Current Report on Form 8-K filed on November 9, 2021, File No. 1-11373)* Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Current Report on Form 8-K/A filed on November 4, 2011, File No. 1-11373)* First Amendment to Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2014)* Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Current Report on Form 8-K/A filed on November 4, 2011, File No. 1-11373)* Form of Nonqualified Stock Option Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1.3 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012, File No. 1-11373)* Form of Amendment to Stock Option and Restricted Share Units Agreements under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan, the Cardinal Health, Inc. 2005 Long-Term Incentive Plan and the Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.1.9 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2013, File No. 1-11373)* Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on November 7, 2016, File No. 1-11373)* First Amendment to Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)* Second Amendment to the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 3019, File No. 1-11373)* Form of Nonqualified Stock Option Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.3 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)* Form of Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.4 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)* Form of Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporate by reference to Exhibit 10.3 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373)* Form of Performance Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.2.5 to Cardinal Health's Annual Report on Form 10-K for the fiscal year end June 30, 2017, File No. 1-11373)* Form of Performance Share Units Agreement under the Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, File No. 1-11373) Form of Directors Restricted Share Units Agreement under the Amended Cardinal Health, Inc. 2011 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2018, File No. 1-11373) Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.4 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2007, File No. 1-11373)* First Amendment to Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.2.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009, File No. 1-11373)* Second Amendment to the Cardinal Health, Inc. 2007 Nonemployee Directors Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to Cardinal Health's Quarterly Report on Form 10-Q for the Quarter ended December 31, 2011, File No. 1-11373)* Cardinal Health Deferred Compensation Plan, Amended and Restated effective January 1, 2020 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373)* First Amendment to the Cardinal Health Deferred Compensation Plan, as amended and restated on January 1, 2020 (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, File No. 1-11373)* Second Amendment to the Cardinal Health Deferred Compensation Plan, as amended and restated on January 1, 2020, dated November 4, 2022 (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the for the quarter ended December 31, 2022)* Cardinal Health, Inc. Senior Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on September 26, 2018, File No. 1-11373) Cardinal Health | Fiscal 2023 Form 10-K85 Cardinal Health | Fiscal 2023 Form 10-K85 Cardinal Health | Fiscal 2023 Form 10-K85 Cardinal Health | Fiscal 2023 Form 10-K 85 Exhibits Exhibits 10.6.2First Amendment to the Cardinal Health, Inc. Senior Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373)10.6.3Second Amendment to the Cardinal Health, Inc. Senior Executive Severance Plan10.7Cardinal Health, Inc. Policy Regarding Shareholder Approval of Severance Agreements (incorporated by reference to Exhibit 10.09 to Cardinal Health’s Current Report on Form 8-K filed on August 7, 2006, File No. 1-11373)*10.8.1Confidentiality and Business Protection Agreement, effective as of February 15, 2010, between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.15 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010, File No. 1-11373)*10.8.2Confidentiality and Business Protection Agreement, between Cardinal Health, Inc. and Aaron E. Alt (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed on December 19, 2022, File No. 1-11373)*10.8.2Aircraft Time Sharing Agreement, effective as of February 8, 2018, by and between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, File No. 1-11373)10.8.3Aircraft Time Sharing Agreement, effective as of January 1, 2022, by and between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.7 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, File No. 1-11373)*10.8.4Aircraft Time Sharing Agreement, dated as of November 7, 2022, by and among Cardinal Health, Inc. and Jason M. Hollar (incorporated by reference to Exhibit 10.1 to Cardinal Health's Quarterly Report on Form 10-Q for the for the quarter ended December 31, 2022)*10.9.1Confidentiality and Business Protection Agreement, effective as of November 1, 2018, between Cardinal Health, Inc. and Victor L. Crawford (incorporated by reference to Exhibit 10.13.1 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373)*10.9.2Letter Agreement, dated October 30, 2018, between Cardinal Health, Inc. and Victor L. Crawford (incorporated by reference to Exhibit 10.13.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373) *10.9.3Letter Agreement, dated March 9, 2020, between Cardinal Health, Inc. and Jason Hollar (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on March 19, 2020, File No. 1-11373)*10.9.4Letter Agreement, dated December 12, 2022, between Cardinal Health, Inc. and Aaron E. Alt (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on December 19, 2022, File No. 1-11373)*10.9.5Confidentiality and Business Protection Agreement, effective as of April 27, 2020, between Cardinal Health, Inc. and Jason Hollar (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed on March 19, 2020, File No. 1-11373)*10.10Form of Indemnification Agreement between Cardinal Health, Inc. and certain individual directors (incorporated by reference to Exhibit 10.38 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2004, File No. 1-11373)10.11.1Issuing and Paying Agency Agreement, dated August 9, 2006, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.01 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373)10.11.2First Amendment to Issuing and Paying Agency Agreement, dated February 28, 2007, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.01 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373)10.11.3Second Amendment to Issuing and Paying Agency Agreement, effective as of December 1, 2016, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373)10.11.4Third Amendment to Issuing and Paying Agency Agreement, dated September 15, 2017, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373)10.11.5Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and J.P. Morgan Securities Inc. (incorporated by reference to Exhibit 10.02 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373)10.11.6First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and J.P. Morgan Securities Inc. (incorporated by reference to Exhibit 10.02 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373)10.11.7Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and J.P. Morgan Securities LLC (formerly known as J.P. Morgan Securities Inc.) (incorporated by reference to Exhibit 10.4 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373)10.11.8Commercial Paper Dealer Agreement between Cardinal Health, Inc. and J.P. Morgan Securities LLC, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.6 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373)10.11.9Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Banc of America Securities LLC (incorporated by reference to Exhibit 10.03 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373)10.11.10First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Banc of America Securities LLC (incorporated by reference to Exhibit 10.03 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373)10.11.11Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, f/k/a Banc of America Securities LLC (incorporated by reference to Exhibit 10.5 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373)10.11.12Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.3 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373)10.11.13Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.04 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373)10.11.14First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.04 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373)10.11.15Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Wells Fargo Securities, LLC, as successor in interest to Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.6 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373)10.11.16Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Wells Fargo Securities, LLC, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.5 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) First Amendment to the Cardinal Health, Inc. Senior Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, File No. 1-11373) Second Amendment to the Cardinal Health, Inc. Senior Executive Severance Plan Cardinal Health, Inc. Policy Regarding Shareholder Approval of Severance Agreements (incorporated by reference to Exhibit 10.09 to Cardinal Health’s Current Report on Form 8-K filed on August 7, 2006, File No. 1-11373)* Confidentiality and Business Protection Agreement, effective as of February 15, 2010, between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.15 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010, File No. 1-11373)* Confidentiality and Business Protection Agreement, between Cardinal Health, Inc. and Aaron E. Alt (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed on December 19, 2022, File No. 1-11373)* Aircraft Time Sharing Agreement, effective as of February 8, 2018, by and between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, File No. 1-11373) Aircraft Time Sharing Agreement, effective as of January 1, 2022, by and between Cardinal Health, Inc. and Michael C. Kaufmann (incorporated by reference to Exhibit 10.7 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, File No. 1-11373)* Aircraft Time Sharing Agreement, dated as of November 7, 2022, by and among Cardinal Health, Inc. and Jason M. Hollar (incorporated by reference to Exhibit 10.1 to Cardinal Health's Quarterly Report on Form 10-Q for the for the quarter ended December 31, 2022)* Confidentiality and Business Protection Agreement, effective as of November 1, 2018, between Cardinal Health, Inc. and Victor L. Crawford (incorporated by reference to Exhibit 10.13.1 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373)* Letter Agreement, dated October 30, 2018, between Cardinal Health, Inc. and Victor L. Crawford (incorporated by reference to Exhibit 10.13.2 to Cardinal Health's Annual Report on Form 10-K for the fiscal year ended June 30, 2019, File No. 1-11373) * Letter Agreement, dated March 9, 2020, between Cardinal Health, Inc. and Jason Hollar (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on March 19, 2020, File No. 1-11373)* Letter Agreement, dated December 12, 2022, between Cardinal Health, Inc. and Aaron E. Alt (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on December 19, 2022, File No. 1-11373)* Confidentiality and Business Protection Agreement, effective as of April 27, 2020, between Cardinal Health, Inc. and Jason Hollar (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed on March 19, 2020, File No. 1-11373)* Form of Indemnification Agreement between Cardinal Health, Inc. and certain individual directors (incorporated by reference to Exhibit 10.38 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2004, File No. 1-11373) Issuing and Paying Agency Agreement, dated August 9, 2006, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.01 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373) First Amendment to Issuing and Paying Agency Agreement, dated February 28, 2007, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.01 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373) Second Amendment to Issuing and Paying Agency Agreement, effective as of December 1, 2016, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) Third Amendment to Issuing and Paying Agency Agreement, dated September 15, 2017, between Cardinal Health, Inc. and The Bank of New York (incorporated by reference to Exhibit 10.2 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373) Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and J.P. Morgan Securities Inc. (incorporated by reference to Exhibit 10.02 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373) First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and J.P. Morgan Securities Inc. (incorporated by reference to Exhibit 10.02 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373) Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and J.P. Morgan Securities LLC (formerly known as J.P. Morgan Securities Inc.) (incorporated by reference to Exhibit 10.4 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373) Commercial Paper Dealer Agreement between Cardinal Health, Inc. and J.P. Morgan Securities LLC, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.6 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Banc of America Securities LLC (incorporated by reference to Exhibit 10.03 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373) First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Banc of America Securities LLC (incorporated by reference to Exhibit 10.03 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373) Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, f/k/a Banc of America Securities LLC (incorporated by reference to Exhibit 10.5 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373) Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.3 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.04 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373) First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.04 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373) Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Wells Fargo Securities, LLC, as successor in interest to Wachovia Capital Markets, LLC (incorporated by reference to Exhibit 10.6 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373) Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Wells Fargo Securities, LLC, effective as of December 1, 2016 (incorporated by reference to Exhibit 10.5 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) 86Cardinal Health | Fiscal 2023 Form 10-K 86Cardinal Health | Fiscal 2023 Form 10-K 86Cardinal Health | Fiscal 2023 Form 10-K 86 Cardinal Health | Fiscal 2023 Form 10-K Exhibits Exhibits 10.11.17Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.05 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373)10.11.18First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.05 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373)10.11.19Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.7 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373)10.11.20Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Goldman Sachs & Co., effective as of December 1, 2016 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373)10.11.21Form of Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc. (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Current Report on Form 8-K filed on April 21, 2009, File No. 1-11373)10.11.22Form of First Amendment to Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc. (incorporated by reference to Exhibit 10.8 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373)10.11.23Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc., effective as of December 1, 2016 (incorporated by reference to Exhibit 10.7 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373)10.12.1Second Amended and Restated Five-Year Credit Agreement, dated as of June 27, 2019, among JPMorgan Chase Bank, N.A. as Administrative Agent, Joint Lead Arranger and Joint Book Manager, Bank of America, N.A. as Syndication Agent, MUFG Bank, Ltd. as Syndication Agent, Joint Lead Arranger and Joint Book Manager, Barclays Bank PLC, Deutsche Bank AG New York Branch, Goldman Sachs Bank USA, HSBC Bank USA, N.A. and Wells Fargo Bank, N.A., as Documentation Agents, and BOFA Securities, Inc., as Joint Lead Arranger and Joint Book Manager (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on June 28, 2019, File No. 1-11373)10.12.2Third Amended and Restated Five-Year Credit Agreement, dated as of February 27, 2023 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on March 2, 2023, File No. 1-11373)10.13.1Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013, among Cardinal Health Funding, LLC, as Seller, Griffin Capital, LLC, as Servicer, the Conduits party thereto, the Financial Institutions Party thereto, the Managing Agents party thereto, and LC Banks party thereto and the Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, File No. 1-11373)10.13.2First Amendment and Joinder, dated as of November 3, 2014, to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.3 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, File No. 1-11373)10.13.3Second Amendment, dated as of November 14, 2016, to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.4.3 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373)10.13.4Third Amendment, dated as of August 30, 2017, to the Fourth Amended and Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on August 31, 2017, File No. 1-11373)10.13.5Fourth Amendment and Joinder, dated September 30, 2019, to the Fourth Amended and Restated Receivables Purchase Agreement (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on October 2, 2019, File No. 1-11373)10.13.6Fifth Amendment, dated as of May 13, 2022, to the Fourth Amended and Restated Receivables Purchase Agreement (incorporated by reference to Exhibit 10.14.6 to Cardinal Health's Annual Report on Form10-K for the fiscal year ended June 30, 2022, File No. 1-11373)10.13.7Sixth Amendment to the Fourth Amended and Restated Receivables Purchase Agreement, dated September 30, 2022 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on October 4, 2022, File No. 1-11373)10.14.1Seventh Amended and Restated Performance Guaranty, dated as of November 14, 2016, executed by Cardinal Health, Inc. in favor of Cardinal Health Funding, LLC (incorporated by reference to Exhibit 10.5.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373)10.14.2Amendment No. 1 to Seventh Amended and Restated Performance Guaranty, dated as of November 14, 2016 (incorporated by reference to Exhibit 10.5.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-1137310.14.3Amendment No. 2 to Seventh Amended and Restated Performance Guaranty, dated as of November 6, 2018 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the Quarter ended September 30, 2018, File No. 1-11373)10.14.4Amendment No. 3 to Seventh Amended and Restated Performance Guaranty (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed October 2, 2019, File No. 1-11373)10.15.1Tax Matters Agreement, dated as of August 31, 2009, by and between Cardinal Health, Inc. and CareFusion Corporation (incorporated by reference to Exhibit 10.3 to Cardinal Health’s Current Report on Form 8-K filed on September 4, 2009, File No. 1-11373)10.15.2First Amendment to Tax Matters Agreement, dated as of May 28, 2012, by and between Cardinal Health, Inc. and CareFusion Corporation (incorporated by reference to Exhibit 10.20.2 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012, File No. 1-11373)10.16Cooperation Agreement, dated as of September 5, 2022, by and among Cardinal Health, Inc., Elliott Associates, L.P. and Elliott International, L.P. (incorporated by reference to Exhibit 10.1 to Cardinal Health's Form 8-K filed September 6, 2022, File No. 1-11373)21.1List of Subsidiaries of Cardinal Health, Inc.23.1Consent of Independent Registered Public Accounting Firm31.1Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 200299.1Statement Regarding Forward-Looking Information101.INSInline XBRL Instance Document101.SCHInline XBRL Taxonomy Extension Schema Document101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document101.DEFInline XBRL Taxonomy Definition Linkbase Document Commercial Paper Dealer Agreement, dated August 9, 2006, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.05 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, File No. 1-11373) First Amendment to Commercial Paper Dealer Agreement, dated February 28, 2007, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.05 to Cardinal Health’s Current Report on Form 8-K filed on March 6, 2007, File No. 1-11373) Second Amendment to Commercial Paper Dealer Agreement, effective as of December 31, 2012, between Cardinal Health, Inc. and Goldman, Sachs & Co. (incorporated by reference to Exhibit 10.7 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373) Commercial Paper Dealer Agreement between Cardinal Health, Inc. and Goldman Sachs & Co., effective as of December 1, 2016 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) Form of Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc. (incorporated by reference to Exhibit 10.2 to Cardinal Health’s Current Report on Form 8-K filed on April 21, 2009, File No. 1-11373) Form of First Amendment to Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc. (incorporated by reference to Exhibit 10.8 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2012, File No. 1-11373) Commercial Paper Dealer Agreement between Cardinal Health, Inc. and SunTrust Robinson Humphrey, Inc., effective as of December 1, 2016 (incorporated by reference to Exhibit 10.7 to Cardinal Health's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 1-11373) Second Amended and Restated Five-Year Credit Agreement, dated as of June 27, 2019, among JPMorgan Chase Bank, N.A. as Administrative Agent, Joint Lead Arranger and Joint Book Manager, Bank of America, N.A. as Syndication Agent, MUFG Bank, Ltd. as Syndication Agent, Joint Lead Arranger and Joint Book Manager, Barclays Bank PLC, Deutsche Bank AG New York Branch, Goldman Sachs Bank USA, HSBC Bank USA, N.A. and Wells Fargo Bank, N.A., as Documentation Agents, and BOFA Securities, Inc., as Joint Lead Arranger and Joint Book Manager (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on June 28, 2019, File No. 1-11373) Third Amended and Restated Five-Year Credit Agreement, dated as of February 27, 2023 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on March 2, 2023, File No. 1-11373) Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013, among Cardinal Health Funding, LLC, as Seller, Griffin Capital, LLC, as Servicer, the Conduits party thereto, the Financial Institutions Party thereto, the Managing Agents party thereto, and LC Banks party thereto and the Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as the Agent (incorporated by reference to Exhibit 10.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, File No. 1-11373) First Amendment and Joinder, dated as of November 3, 2014, to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.3 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, File No. 1-11373) Second Amendment, dated as of November 14, 2016, to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.4.3 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373) Third Amendment, dated as of August 30, 2017, to the Fourth Amended and Receivables Purchase Agreement, dated as of November 1, 2013 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on August 31, 2017, File No. 1-11373) Fourth Amendment and Joinder, dated September 30, 2019, to the Fourth Amended and Restated Receivables Purchase Agreement (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on October 2, 2019, File No. 1-11373) Fifth Amendment, dated as of May 13, 2022, to the Fourth Amended and Restated Receivables Purchase Agreement (incorporated by reference to Exhibit 10.14.6 to Cardinal Health's Annual Report on Form10-K for the fiscal year ended June 30, 2022, File No. 1-11373) Sixth Amendment to the Fourth Amended and Restated Receivables Purchase Agreement, dated September 30, 2022 (incorporated by reference to Exhibit 10.1 to Cardinal Health's Current Report on Form 8-K filed on October 4, 2022, File No. 1-11373) Seventh Amended and Restated Performance Guaranty, dated as of November 14, 2016, executed by Cardinal Health, Inc. in favor of Cardinal Health Funding, LLC (incorporated by reference to Exhibit 10.5.1 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373) Amendment No. 1 to Seventh Amended and Restated Performance Guaranty, dated as of November 14, 2016 (incorporated by reference to Exhibit 10.5.2 to Cardinal Health’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, File No. 1-11373 Amendment No. 2 to Seventh Amended and Restated Performance Guaranty, dated as of November 6, 2018 (incorporated by reference to Exhibit 10.4 to Cardinal Health's Quarterly Report on Form 10-Q for the Quarter ended September 30, 2018, File No. 1-11373) Amendment No. 3 to Seventh Amended and Restated Performance Guaranty (incorporated by reference to Exhibit 10.2 to Cardinal Health's Current Report on Form 8-K filed October 2, 2019, File No. 1-11373) Tax Matters Agreement, dated as of August 31, 2009, by and between Cardinal Health, Inc. and CareFusion Corporation (incorporated by reference to Exhibit 10.3 to Cardinal Health’s Current Report on Form 8-K filed on September 4, 2009, File No. 1-11373) First Amendment to Tax Matters Agreement, dated as of May 28, 2012, by and between Cardinal Health, Inc. and CareFusion Corporation (incorporated by reference to Exhibit 10.20.2 to Cardinal Health’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012, File No. 1-11373) Cooperation Agreement, dated as of September 5, 2022, by and among Cardinal Health, Inc., Elliott Associates, L.P. and Elliott International, L.P. (incorporated by reference to Exhibit 10.1 to Cardinal Health's Form 8-K filed September 6, 2022, File No. 1-11373) List of Subsidiaries of Cardinal Health, Inc. Consent of Independent Registered Public Accounting Firm Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Statement Regarding Forward-Looking Information Cardinal Health | Fiscal 2023 Form 10-K87 Cardinal Health | Fiscal 2023 Form 10-K87 Cardinal Health | Fiscal 2023 Form 10-K87 Cardinal Health | Fiscal 2023 Form 10-K 87 Exhibits Exhibits 101.LABInline XBRL Taxonomy Extension Label Linkbase Document101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document104Cover Page Interactive Data File - formatted in Inline XBRL (included as Exhibit 101)* Management contract or compensatory plan or arrangement. 88Cardinal Health | Fiscal 2023 Form 10-K 88Cardinal Health | Fiscal 2023 Form 10-K 88Cardinal Health | Fiscal 2023 Form 10-K 88 Cardinal Health | Fiscal 2023 Form 10-K Form 10-K Cross Reference Index Form 10-K Cross Reference Index Form 10-K Cross Reference Index ItemPage(s)Part 11Business 281ARisk Factors361BUnresolved Staff Comments N/A2Properties433Legal Proceedings444Mine Safety Disclosures N/APart II5Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities456ReservedN/A7Management's Discussion and Analysis of Financial Condition and Results of Operations37AQuantitative and Qualitative Disclosures about Market Risk268Financial Statements and Supplementary Data519Changes in and Disagreements With Accountants on Accounting and Financial DisclosureN/A9AControls and Procedures479BOther Information N/APart III10Directors, Executive Officers and Corporate Governance 8211Executive Compensation (a)12Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters(b)13Certain Relationships and Related Transactions, and Director Independence (c)14Principal Accounting Fees and Services(d)Part IV15Exhibits, Financial Statement Schedules8416Form 10-K SummaryN/ASignatures90 Business 28 Risk Factors 36 Properties 43 Legal Proceedings 44 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 45 Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Quantitative and Qualitative Disclosures about Market Risk 26 Financial Statements and Supplementary Data 51 Controls and Procedures 47 Directors, Executive Officers and Corporate Governance 82 Exhibits, Financial Statement Schedules 84 Signatures 90 N/ANot applicable(a)The information called for by Item 11 of Form 10-K is incorporated by reference to our 2023 Proxy Statement under the captions “Corporate Governance” and “Executive Compensation.”(b)The information called for by Item 12 of Form 10-K is incorporated by reference to our 2023 Proxy Statement under the captions \"Executive Compensation\" and \"Share Ownership Information.\"(c)The information called for by Item 13 of Form 10-K is incorporated by reference to our 2023 Proxy Statement under the caption \"Corporate Governance.\"(d)The information called for by Item 14 of Form 10-K is incorporated by reference to our 2023 Proxy Statement under the caption “Audit Committee Matters.” Cardinal Health | Fiscal 2023 Form 10-K89 Cardinal Health | Fiscal 2023 Form 10-K89 Cardinal Health | Fiscal 2023 Form 10-K89 Cardinal Health | Fiscal 2023 Form 10-K 89 Signatures Signatures Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on August 15, 2023. Cardinal Health, Inc.By:/s/ JASON M. HOLLARJASON M. HOLLARChief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed below by the following persons on behalf of the registrant and in the capacities indicated on August 15, 2023. NameTitle/s/ JASON M. HOLLARChief Executive Officer and Director (principal executive officer)Jason M. Hollar/s/ AARON E. ALTChief Financial Officer (principal financial officer)Aaron E. Alt/s/ MARY C. SCHERERSenior Vice President and Chief Accounting Officer (principal accounting officer)Mary C. Scherer/s/ STEVEN K. BARGDirectorSteven K. Barg/s/ MICHELLE M. BRENNANDirectorMichelle M. Brennan/s/ SUJATHA CHANDRASEKARANDirectorSujatha Chandrasekaran/s/ CARRIE S. COXDirectorCarrie S. Cox/s/ BRUCE L. DOWNEYDirectorBruce L. Downey/s/ SHERI H. EDISONDirectorSheri H. Edison/s/ DAVID C. EVANSDirectorDavid C. Evans/s/ PATRICIA A. HEMINGWAY HALLDirectorPatricia A. Hemingway Hall/s/ AKHIL JOHRIDirectorAkhil Johri/s/ GREGORY B. KENNYDirectorGregory B. Kenny/s/ NANCY KILLEFERDirectorNancy Killefer/s/ CHRISTINE A. MUNDKURDirectorChristine A. Mundkur 90Cardinal Health | Fiscal 2023 Form 10-K 90Cardinal Health | Fiscal 2023 Form 10-K 90Cardinal Health | Fiscal 2023 Form 10-K 90 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "We could continue to suffer the adverse effects of competitive pressures.",
      "prior_title": "We could continue to suffer the adverse effects of competitive pressures.",
      "similarity_score": 0.915,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In addition, competitive pressures in each of our businesses may be increased by new business models, new entrants, new regulations or changes in enforcement priorities, changes in consumer demand or general competitive dynamics.\"",
        "Reworded sentence: \"If we are unable to offset margin reductions caused by these pressures through steps such as sourcing or cost control measures, additional service offerings and sales of higher margin products, our results of operations could continue to be adversely affected.\""
      ],
      "current_body": "As described in greater detail in the \"Business\" section, we operate in markets that are highly competitive and dynamic. In addition, competitive pressures in each of our businesses may be increased by new business models, new entrants, new regulations or changes in enforcement priorities, changes in consumer demand or general competitive dynamics. Additionally, we may not be able to onboard new customers as efficiently as expect due to customer service issues or competitive service level offerings. Our businesses face continued pricing pressure from these factors, which adversely affects our margins. If we are unable to offset margin reductions caused by these pressures through steps such as sourcing or cost control measures, additional service offerings and sales of higher margin products, our results of operations could continue to be adversely affected.",
      "prior_body": "As described in greater detail in the \"Business\" section, we operate in markets that are highly competitive and dynamic. In addition, competitive pressures in our pharmaceutical and medical segments may be increased by new business models, new entrants, new regulations, changes in consumer demand or general competitive dynamics. Our businesses face continued pricing pressure from these factors, which adversely affects our margins. If we are unable to offset margin reductions caused by these pricing pressures through steps such as sourcing or cost control measures, additional service offerings and sales of higher margin products, our results of operations could continue to be adversely affected."
    },
    {
      "status": "MODIFIED",
      "current_title": "Sales Returns and Allowances",
      "prior_title": "Sales Returns and Allowances",
      "similarity_score": 0.911,
      "confidence": "high",
      "key_changes": [
        "Added sentence: \"Sales returns are recorded based on estimates using historical data.\"",
        "Added sentence: \"Our customer return policies generally require that the product be physically returned, subject to restocking fees.\"",
        "Added sentence: \"We only allow customers to return products for credit in a condition suitable to be added back to inventory and resold at full value (“merchantable product”) or returned to vendors for credit.\"",
        "Added sentence: \"Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer.We accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs.\"",
        "Added sentence: \"Our accrual for sales returns is reflected as a reduction of revenue and cost of products sold for the sales price and cost, respectively.\""
      ],
      "current_body": "Revenue is recorded net of sales returns and allowances. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts, rebates and other variable consideration. Sales returns are recorded based on estimates using historical data. Our customer return policies generally require that the product be physically returned, subject to restocking fees. We only allow customers to return products for credit in a condition suitable to be added back to inventory and resold at full value (“merchantable product”) or returned to vendors for credit. Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer.We accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. Our accrual for sales returns is reflected as a reduction of revenue and cost of products sold for the sales price and cost, respectively. At June 30, 2024 and 2023, the accrual for estimated sales returns and allowances was $441 million and $474 million, respectively, which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Sales returns and allowances were $2.2 billion, $2.2 billion and $2.4 billion, for fiscal 2024, 2023 and 2022, respectively, and the net impact on net earnings/(loss) in the consolidated statements of earnings/(loss) was immaterial in fiscal 2024, 2023 and 2022. Third-Party ReturnsWe generally do not accept non-merchantable pharmaceutical product returns from our customers, so many of our customers return non-merchantable pharmaceutical products to the manufacturer through third parties. Since our customers generally do not have a direct relationship with manufacturers, our vendors pass the value of such returns to us (usually in the form of an accounts payable deduction). We, in turn, pass the value received to our customer. In certain instances, we pass the estimated value of the return to our customer prior to our receipt of the value from the vendor. Although we believe we have satisfactory protections, from time to time, we become subject to claims from customers or vendors that our administration of this overall process is deficient in some respect or our contractual terms with vendors are in conflict with our contractual terms with our customers. We maintain reserves for some of these situations based on their nature and our historical experience with their resolution.Shipping and HandlingShipping and handling costs are primarily included in SG&A expenses in our consolidated statements of earnings/(loss) and include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs were $866 million, $835 million and $756 million, for fiscal 2024, 2023 and 2022, respectively. Restructuring and Employee SeveranceRestructuring activities are programs that are not part of the ongoing operations of our underlying business, such as divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure in response to changing market conditions). Sales returns are recorded based on estimates using historical data. Our customer return policies generally require that the product be physically returned, subject to restocking fees. We only allow customers to return products for credit in a condition suitable to be added back to inventory and resold at full value (“merchantable product”) or returned to vendors for credit. Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer. We accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. Our accrual for sales returns is reflected as a reduction of revenue and cost of products sold for the sales price and cost, respectively. At June 30, 2024 and 2023, the accrual for estimated sales returns and allowances was $441 million and $474 million, respectively, which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Sales returns and allowances were $2.2 billion, $2.2 billion and $2.4 billion, for fiscal 2024, 2023 and 2022, respectively, and the net impact on net earnings/(loss) in the consolidated statements of earnings/(loss) was immaterial in fiscal 2024, 2023 and 2022.",
      "prior_body": "Revenue is recorded net of sales returns and allowances. Revenues are measured based on the amount of consideration that we expect to receive, reduced by estimates for return allowances, discounts, rebates and other variable consideration. Sales returns are recorded based on estimates using historical data. Our customer return policies generally require that the product be physically returned, subject to restocking fees. We only allow customers to return products for credit in a condition suitable to be added back to inventory and resold at full value (“merchantable product”) or returned to vendors for credit. Product returns are generally consistent throughout the year and typically are not specific to any particular product or customer. We accrue for estimated sales returns and allowances at the time of sale based upon historical customer return trends, margin rates and processing costs. Our accrual for sales returns is reflected as a reduction of revenue and cost of products sold for the sales price and cost, respectively. At June 30, 2023 and 2022, the accrual for estimated sales returns and allowances was $474 million and $617 million, respectively, which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Sales returns and allowances were $2.2 billion, $2.4 billion and $2.6 billion, for fiscal 2023, 2022 and 2021, respectively, and the net impact on net earnings/(loss) in the consolidated statements of earnings/(loss) was immaterial in fiscal 2023, 2022 and 2021. Third-Party ReturnsWe generally do not accept non-merchantable pharmaceutical product returns from our customers, so many of our customers return non-merchantable pharmaceutical products to the manufacturer through third parties. Since our customers generally do not have a direct relationship with manufacturers, our vendors pass the value of such returns to us (usually in the form of an accounts payable deduction). We, in turn, pass the value received to our customer. In certain instances, we pass the estimated value of the return to our customer prior to our receipt of the value from the vendor. Although we believe we have satisfactory protections, we could be subject to claims from customers or vendors if our administration of this overall process was deficient in some respect or our contractual terms with vendors are in conflict with our contractual terms with our customers. We have maintained reserves for some of these situations based on their nature and our historical experience with their resolution.Shipping and HandlingShipping and handling costs are primarily included in SG&A expenses in our consolidated statements of earnings/(loss) and include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs were $835 million, $748 million and $634 million, for fiscal 2023, 2022 and 2021, respectively. Restructuring and Employee SeveranceRestructuring activities are programs that are not part of the ongoing operations of our underlying business, such as divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure in response to changing market conditions). Also included within restructuring and employee severance are employee severance costs that are not incurred in connection with a restructuring activity. See Note 3 for additional information regarding our restructuring activities.Amortization and Other Acquisition-Related CostsWe classify certain costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings/(loss). These costs consist of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent a reduction of revenue and cost of products sold for the sales price and cost, respectively. At June 30, 2023 and 2022, the accrual for estimated sales returns and allowances was $474 million and $617 million, respectively, which is reflected in trade receivables, net and inventories, net in the consolidated balance sheets. Sales returns and allowances were $2.2 billion, $2.4 billion and $2.6 billion, for fiscal 2023, 2022 and 2021, respectively, and the net impact on net earnings/(loss) in the consolidated statements of earnings/(loss) was immaterial in fiscal 2023, 2022 and 2021."
    },
    {
      "status": "MODIFIED",
      "current_title": "Critical Audit Matters",
      "prior_title": "Critical Audit Matters",
      "similarity_score": 0.906,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K 49 Reports Reports Valuation of GoodwillDescription of the MatterThe Company performed quantitative assessments of goodwill for the Company’s Global Medical Products and Distribution (GMPD) and at-Home Solutions reporting units during fiscal year 2024, by comparing the fair values of each of these reporting units with their respective carrying amounts.\"",
        "Reworded sentence: \"We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the reporting units that would result from changes in the assumptions.\"",
        "Reworded sentence: \"We have also assessed the adequacy of the Company’s disclosures included in Notes 1 and 5 in relation to this matter.Uncertain Tax PositionsDescription of the Matter As described in Note 9 to the consolidated financial statements, the Company’s unrecognized tax benefits related to its uncertain tax positions were $981 million at June 30, 2024.\"",
        "Reworded sentence: \"The Company uses significant judgment in (1) determining if the tax position is more likely than not to be sustained upon examination, based on the technical merits of the position and (2) measuring the amount of tax benefit that qualifies for recognition.Auditing management's estimate of the amount of tax benefit related to the Company's uncertain tax positions that qualified for recognition was challenging because management's estimate required significant judgment in evaluating the technical merits of the positions, including interpretations of applicable tax laws and regulations.\"",
        "Removed sentence: \"Description of the Matter At June 30, 2023, goodwill related to the Company’s Medical segment, including the Medical Unit was $2.0 billion.\""
      ],
      "current_body": "The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K49 Cardinal Health | Fiscal 2024 Form 10-K 49 Reports Reports Valuation of GoodwillDescription of the MatterThe Company performed quantitative assessments of goodwill for the Company’s Global Medical Products and Distribution (GMPD) and at-Home Solutions reporting units during fiscal year 2024, by comparing the fair values of each of these reporting units with their respective carrying amounts. As discussed in Notes 1 and 5 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level, or when indicators of impairment exist. During fiscal 2024, the Company recognized goodwill impairment charges related to GMPD of $675 million, which represented the entire remaining amount of goodwill allocated to GMPD. There was no impairment recognized related to at-Home Solutions. Auditing management’s goodwill impairment test for GMPD and at-Home Solutions was challenging because there is significant judgement required in determining the fair values of the reporting units. In particular, the fair value estimates were sensitive to significant judgmental assumptions including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, which are affected by expectations about future market or economic conditions.How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of significant judgmental assumptions, including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, among other assumptions.To test the estimated fair values of GMPD and at-Home Solutions, we performed audit procedures that included, among others, evaluating methodologies used; involving our valuation specialists to assist with our procedures related to the measurement of the fair values; and testing the underlying data used by the Company in its analysis for completeness and accuracy. We compared the significant assumptions used by management to current industry and economic trends, recent historical performance, changes to customer base or product mix and other relevant factors. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair values of the reporting units that would result from changes in the assumptions. We evaluated the assumptions within the model and tested the model’s computational accuracy. In addition, we inspected the Company’s reconciliation of the fair value of all reporting units to the market capitalization of the Company and assessed the result. We have also assessed the adequacy of the Company’s disclosures included in Notes 1 and 5 in relation to this matter.Uncertain Tax PositionsDescription of the Matter As described in Note 9 to the consolidated financial statements, the Company’s unrecognized tax benefits related to its uncertain tax positions were $981 million at June 30, 2024. Uncertain tax positions may arise as tax laws are subject to interpretation. The Company uses significant judgment in (1) determining if the tax position is more likely than not to be sustained upon examination, based on the technical merits of the position and (2) measuring the amount of tax benefit that qualifies for recognition.Auditing management's estimate of the amount of tax benefit related to the Company's uncertain tax positions that qualified for recognition was challenging because management's estimate required significant judgment in evaluating the technical merits of the positions, including interpretations of applicable tax laws and regulations. How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to assess the technical merits of its uncertain tax positions, including the Company’s assessment as to whether a tax position is more likely than not to be sustained and management’s process to measure the benefit of its tax positions. We involved our international tax, transfer pricing, and national tax professionals in assessing the technical merits of certain of the Company’s tax positions. Depending on the nature of the specific tax position and, where applicable, developments with the relevant tax authorities relating thereto, our procedures included obtaining and examining the Company’s analysis. For example, we evaluated the underlying facts upon which the tax positions are based, and, where applicable, obtained the Company’s correspondence with local tax authorities. We used our knowledge of international and local income tax laws, as well as historical settlement activity, where applicable, with local income tax authorities, to evaluate the Company’s accounting for its uncertain tax positions. We evaluated developments in the applicable tax jurisdictions to assess potential effects on the Company’s positions. We analyzed the Company’s assumptions and data used to evaluate the appropriateness of the Company’s measurement of tax benefits. We have also evaluated the Company’s income tax disclosures in relation to these matters.",
      "prior_body": "The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Cardinal Health | Fiscal 2023 Form 10-K49 Cardinal Health | Fiscal 2023 Form 10-K49 Cardinal Health | Fiscal 2023 Form 10-K49 Cardinal Health | Fiscal 2023 Form 10-K 49 Reports Reports Medical Unit GoodwillDescription of the MatterAt June 30, 2023, goodwill related to the Company’s Medical segment, including the Medical Unit was $2.0 billion. As discussed in Notes 1 and 4 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level, or when indicators of impairment exist. During fiscal 2023, the Company recognized goodwill impairment charges related to the Medical Unit of $1.2 billion.Auditing management’s goodwill impairment test for the Medical Unit was challenging because there is significant judgement required in determining the fair value of the reporting unit. In particular, the fair value estimate was sensitive to significant judgmental assumptions including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, which are affected by expectations about future market or economic conditions.How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of significant judgmental assumptions, including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, among other assumptions.To test the estimated fair value of the Company’s Medical Unit, we performed audit procedures that included, among others, evaluating methodologies used; involving our valuation specialists to assist with our procedures related to the measurement of the fair value; and testing the underlying data used by the Company in its analysis for completeness and accuracy. We compared the significant assumptions used by management to current industry and economic trends, recent historical performance, changes to customer base or product mix and other relevant factors. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions. We evaluated the assumptions within the model and tested the model’s computational accuracy. In addition, we inspected the Company’s reconciliation of the fair value of all reporting units to the market capitalization of the Company and assessed the result. We have also assessed the adequacy of the Company’s disclosures included in Notes 1 and 4 in relation to this matter.Uncertain Tax PositionsDescription of the Matter As described in Note 8 to the consolidated financial statements, the Company’s unrecognized tax benefits related to its uncertain tax positions were approximately $1.0 billion at June 30, 2023. Uncertain tax positions may arise as tax laws are subject to interpretation. The Company uses significant judgment in (1) determining if the tax position is more likely than not to be sustained upon examination, based on the technical merits of the position and (2) measuring the amount of tax benefit that qualifies for recognition.Auditing management's estimate of the amount of tax benefit related to the Company's uncertain tax positions that qualified for recognition was challenging because management's estimate required significant judgment in evaluating the technical merits of the positions, including interpretations of applicable tax laws and regulations.How We Addressed the Matter in Our AuditWe obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s process to assess the technical merits of its uncertain tax positions, including the Company’s assessment as to whether a tax position is more likely than not to be sustained and management’s process to measure the benefit of its tax positions. We involved our international tax, transfer pricing, and national tax professionals in assessing the technical merits of certain of the Company’s tax positions. Depending on the nature of the specific tax position and, where applicable, developments with the relevant tax authorities relating thereto, our procedures included obtaining and examining the Company’s analysis. For example, we evaluated the underlying facts upon which the tax positions are based, and, where applicable, obtained the Company’s correspondence with local tax authorities. We used our knowledge of international and local income tax laws, as well as historical settlement activity, where applicable, with local income tax authorities, to evaluate the Company’s accounting for its uncertain tax positions. We evaluated developments in the applicable tax jurisdictions to assess potential effects on the Company’s positions. We analyzed the Company’s assumptions and data used to evaluate the appropriateness of the Company’s measurement of tax benefits. We have also evaluated the Company’s income tax disclosures in relation to these matters. Description of the Matter At June 30, 2023, goodwill related to the Company’s Medical segment, including the Medical Unit was $2.0 billion. As discussed in Notes 1 and 4 to the consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit level, or when indicators of impairment exist. During fiscal 2023, the Company recognized goodwill impairment charges related to the Medical Unit of $1.2 billion. Auditing management’s goodwill impairment test for the Medical Unit was challenging because there is significant judgement required in determining the fair value of the reporting unit. In particular, the fair value estimate was sensitive to significant judgmental assumptions including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, which are affected by expectations about future market or economic conditions. How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management’s review of significant judgmental assumptions, including the revenue growth rate, gross margin, distribution, selling, general and administrative expenses, and company-specific risk premium, among other assumptions. To test the estimated fair value of the Company’s Medical Unit, we performed audit procedures that included, among others, evaluating methodologies used; involving our valuation specialists to assist with our procedures related to the measurement of the fair value; and testing the underlying data used by the Company in its analysis for completeness and accuracy. We compared the significant assumptions used by management to current industry and economic trends, recent historical performance, changes to customer base or product mix and other relevant factors. We assessed the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions. We evaluated the assumptions within the model and tested the model’s computational accuracy. In addition, we inspected the Company’s reconciliation of the fair value of all reporting units to the market capitalization of the Company and assessed the result. We have also assessed the adequacy of the Company’s disclosures included in Notes 1 and 4 in relation to this matter."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Self-Insurance",
      "similarity_score": 0.903,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"administrative fees, claim adjustment costs and an estimate for claims incurred but not reported.\"",
        "Reworded sentence: \"There were no material obligations at June 30, 2024.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "We self-insure for employee healthcare, general liability, certain product liability matters, auto liability, property and workers' compensation. Self-insurance accruals include an estimate for expected settlements or pending claims, defense costs, administrative fees, claim adjustment costs and an estimate for claims incurred but not reported. Because these matters are inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies and other liabilities is highly subjective and requires judgments about future events. We regularly review contingencies and our self-insurance accruals to determine whether our accruals and related disclosures are adequate. Any adjustments for changes in reserves are recorded in the period in which the change in estimate occurs. Guarantees In the ordinary course of business, we agree to indemnify certain other parties under acquisition and disposition agreements, customer agreements, intellectual property licensing agreements and other agreements. Such indemnification obligations vary in scope and, when defined, in duration. In many cases, a maximum obligation is not explicitly stated, and therefore the overall maximum amount of the liability under such indemnification obligations cannot be reasonably estimated. Where appropriate, such indemnification obligations are recorded as a liability. Historically, we have not, individually or in the aggregate, made payments under these indemnification obligations in any material amounts. In certain circumstances, we believe that existing insurance arrangements, subject to the general deduction and exclusion provisions, would cover portions of the liability that may arise from these indemnification obligations. In addition, we believe that the likelihood of a material liability being triggered under these indemnification obligations is not probable. From time to time we enter into agreements that obligate us to make fixed payments upon the occurrence of certain events. Such obligations primarily relate to obligations arising under acquisition transactions, where we have agreed to make payments based upon the achievement of certain financial performance measures by the acquired business. Generally, the obligation is capped at an explicit amount. There were no material obligations at June 30, 2023. Income TaxesWe account for income taxes using the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. We assess the realizability of deferred tax assets on a quarterly basis and provide a valuation allowance for deferred tax assets when it is more likely than not that at least a portion of the deferred tax assets will not be realized. The realizability of deferred tax assets depends on our ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction and also considers all available positive and negative evidence.Deferred taxes for non-U.S. liabilities are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are indefinitely reinvested.We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. For tax benefits that do not qualify for recognition, we recognize a liability for unrecognized tax benefits. See Note 8 for additional information regarding income taxes.Other Accrued LiabilitiesOther accrued liabilities represent various current obligations, including certain accrued operating expenses, accrued rebates and taxes payable.Noncontrolling InterestsNoncontrolling interests represent the portion of net earnings, comprehensive income and net assets that is not attributable to Cardinal Health, Inc. Share-Based CompensationShare-based compensation provided to employees is recognized in the consolidated statements of earnings/(loss) based on the grant date fair value of the awards. The fair value of restricted share units and performance share units is determined by the grant date market price of our common shares. The compensation expense associated with nonvested performance share units is dependent on our periodic assessment of the probability of the targets being achieved and our estimate, which may vary over transactions, where we have agreed to make payments based upon the achievement of certain financial performance measures by the acquired business. Generally, the obligation is capped at an explicit amount. There were no material obligations at June 30, 2023."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our results of operations or strategic objectives could be adversely impacted if we fail to manage and complete divestitures.",
      "prior_title": "Our results of operations could be adversely impacted if we fail to manage and complete divestitures.",
      "similarity_score": 0.903,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies, which could impact the achievement of our strategic objectives.\""
      ],
      "current_body": "We regularly evaluate our portfolio of businesses to determine whether an asset or business may no longer help us meet our objectives or whether there may be a more advantaged owner for that business. For example, in July 2023, we contributed our Outcomes™ business to Transaction Data Systems in exchange for a minority stake in the combined entity, and in fiscal year 2022, we completed the divestiture of the Cordis business. When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies, which could impact the achievement of our strategic objectives. We could also fail to obtain necessary regulatory approval or incur higher costs or charges than planned or incur unexpected charges and could experience greater dis-synergies than expected, which could have a negative impact on our results of operations.",
      "prior_body": "We regularly evaluate our portfolio of businesses to determine whether an asset or business may no longer help us meet our objectives or whether there may be a more advantaged owner for that business. For example, in July 2023, we contributed our Outcomes™ business to Transaction Data Systems in exchange for a minority stake in the combined entity, and in fiscal year 2022, we completed the divestiture of the Cordis business. When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies, which could delay the achievement of our strategic objectives. We could also incur higher costs or charges than planned or incur unexpected charges and could experience greater dis-synergies than expected, which could have a negative impact on our results of operations."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Risk Factors",
      "similarity_score": 0.898,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We are cooperating with this investigation.\"",
        "Reworded sentence: \"From time to time, we have become aware of certain isolated alleged violations of federal, state or foreign laws concerning privacy and data protection.\"",
        "Reworded sentence: \"As a result of these violations, we have been and may in the future be subject to civil or criminal penalties, breach of contract claims, lawsuits, costs for remediation and harm to our reputation.Industry participants, including us, rely on ethylene oxide (“EtO”) and per- and polyfluoroalkyl (“PFA”) compounds to sterilize certain medical products, including products that we manufacture or distribute.\"",
        "Reworded sentence: \"If such measures become more widespread, we could experience increased costs to comply with reduced emissions standards and it is possible that we and other industry participants may be unable to effectively sterilize medical products, possibly resulting in supply shortages or an industry-wide reduction in surgical or medical procedures, which would negatively impact demand for our products.\"",
        "Reworded sentence: \"Additionally, we have incurred, and may incur additional costs associated with modifying certain manufacturing, distribution or replenishment facilities in accordance with state environmental regulators' actions or requirements.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.897,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Also included within restructuring and employee severance are employee severance costs that are not incurred in connection with a restructuring activity.\"",
        "Reworded sentence: \"See Note 5 for additional information regarding amortization of acquisition-related intangible assets.\"",
        "Reworded sentence: \"Revenues and expenses of these foreign subsidiaries are translated using average exchange rates during the year.The foreign currency translation gains/(losses) included in AOCI at June 30, 2024 and 2023 are presented in Note 12.\"",
        "Reworded sentence: \"Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss).See Note 11 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges.Fair Value MeasurementsFair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date.\"",
        "Reworded sentence: \"The three levels of inputs used to measure fair values are:Level 1 - Observable prices in active markets for identical assets and liabilities.Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.See Note 10 for additional information regarding fair value measurements.Recently Adopted Financial Accounting StandardsThere were no accounting standards adopted in fiscal 2024 that had a material impact on our consolidated financial statements.Recently Issued Financial Accounting Standards and Disclosure Rules Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2023 Form 10-K.Segment ReportingIn November 2023, the FASB issued Accounting Standards Update (\"ASU\") 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Total share-based compensation expense",
      "prior_title": "Total share-based compensation expense",
      "similarity_score": 0.896,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The total tax benefit related to share-based compensation was $16 million for fiscal 2024 and $12 million for both fiscal 2023 and 2022.\""
      ],
      "current_body": "The total tax benefit related to share-based compensation was $16 million for fiscal 2024 and $12 million for both fiscal 2023 and 2022.",
      "prior_body": "The total tax benefit related to share-based compensation was $12 million each for fiscal 2023, 2022 and 2021."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.896,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"time, of the number of shares that ultimately will be issued.\"",
        "Reworded sentence: \"See Note 15 for additional information regarding share-based compensation.DividendsWe paid cash dividends per common share of $2.00, $1.98 and $1.96 in fiscal 2024, 2023 and 2022, respectively.Revenue RecognitionWe recognize revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of goods or services to customers.Revenue in Pharmaceutical and Specialty Solutions, GMPD, Nuclear and Precision Health Solutions and at-Home Solutions operating segments is primarily related to the distribution of pharmaceutical and medical products, which include both manufactured and sourced products, and we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise.\"",
        "Reworded sentence: \"Revenues derived from services from all segments are immaterial for all periods presented.We are generally the principal in a transaction, therefore our revenue is primarily recorded on a gross basis.\"",
        "Added sentence: \"In connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment.\"",
        "Added sentence: \"We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Legal Proceedings",
      "prior_title": "Legal Proceedings",
      "similarity_score": 0.895,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"When we become aware of such possible compliance matters, we investigate internally and take appropriate corrective action.\"",
        "Removed sentence: \"In addition, from time to time, we receive subpoenas or requests for information from various federal or state agencies relating to our business or to the business of a customer, supplier or other industry participants.\"",
        "Removed sentence: \"Internal investigations, subpoenas or requests for information could directly or indirectly lead to the assertion of claims or the commencement of legal proceedings against us or result in sanctions.We have been named from time to time in qui tam actions initiated by private third parties.\"",
        "Removed sentence: \"In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful.\"",
        "Removed sentence: \"After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation.\""
      ],
      "current_body": "The legal proceedings described in Note 8 of the \"Notes to Consolidated Financial Statements\" are incorporated in this \"Legal Proceedings\" section by reference. 44Cardinal Health | Fiscal 2024 Form 10-K 44Cardinal Health | Fiscal 2024 Form 10-K 44Cardinal Health | Fiscal 2024 Form 10-K 44 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "In addition to the proceedings described below, the legal proceedings described in Note 7 of the \"Notes to Consolidated Financial Statements\" are incorporated in this \"Legal Proceedings\" section by reference. Between June 2019 and January 2020, three purported shareholders filed actions on behalf of Cardinal Health, Inc. in the U.S. District Court for the Southern District of Ohio against certain current and former members of our Board of Directors alleging that the defendants breached their fiduciary duties by failing to effectively monitor Cardinal Health's distribution of controlled substances and approving certain payments of executive compensation. In January, 2020, the court consolidated these derivative cases under the caption In re Cardinal Health, Inc. Derivative Litigation and in March 2020, plaintiffs filed an amended complaint. In December 2021, the parties reached an agreement in principle to settle this matter and in October 2022, the court entered an order approving the settlement and dismissing the case. This settlement does not include any admission of liability. Under the settlement, in December 2022, Cardinal Health's director and officer liability insurance carriers, on behalf of the defendants, paid Cardinal Health $124 million, less approximately $31 million in attorneys' fees and expenses awarded by the court to plaintiffs' counsel. 44Cardinal Health | Fiscal 2023 Form 10-K 44Cardinal Health | Fiscal 2023 Form 10-K 44Cardinal Health | Fiscal 2023 Form 10-K 44 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "11. Shareholders' Equity/(Deficit)",
      "similarity_score": 0.89,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Shareholders' Equity/(Deficit) At June 30, 2024 and 2023, authorized capital shares consisted of the following: 750 million Class A common shares, without par value; 5 million Class B common shares, without par value; and 500 thousand non-voting preferred shares, without par value.\"",
        "Reworded sentence: \"Only Class A common shares were outstanding at June 30, 2024 and 2023.We repurchased $3.8 billion of our common shares, in the aggregate, through share repurchase programs during fiscal 2024, 2023 and 2022, as described below.\"",
        "Removed sentence: \"During fiscal 2021, we repurchased 3.7 million common shares having an aggregate cost of $200 million.\"",
        "Removed sentence: \"The average price paid per common share was $54.40.\"",
        "Removed sentence: \"These repurchases were made under an ASR program, which began on February 9, 2021 and was completed on March 31, 2021.Accumulated Other Comprehensive LossThe following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total:(in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2021$(46)$12 $(34)Other comprehensive loss, before reclassifications(56)(16)(72)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $24 million(56)(24)(80)Balance at June 30, 2022(102)(12)(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023$(137)$(14)$(151) During fiscal 2023, we repurchased 24.6 million common shares having an aggregate cost of $1.9 billion.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "At June 30, 2023 and 2022, authorized capital shares consisted of the following: 750 million Class A common shares, without par value; 5 million Class B common shares, without par value; and 500 thousand non-voting preferred shares, without par value. The Class A common shares and Class B common shares are collectively referred to below as “common shares”. Holders of common shares are entitled to share equally in any dividends declared by the Board of Directors and to participate equally in all distributions of assets upon liquidation. Generally, the holders of Class A common shares are entitled to one vote per share, and the holders of Class B common shares are entitled to one-fifth of one vote per share on proposals presented to shareholders for vote. Under certain circumstances, the holders of Class B common shares are entitled to vote as a separate class. Only Class A common shares were outstanding at June 30, 2023 and 2022. We repurchased $3.1 billion of our common shares, in the aggregate, through share repurchase programs during fiscal 2023, 2022 and 2021, as described below. We funded the repurchases with available cash and short-term borrowings. The common shares repurchased are held in treasury to be used for general corporate purposes. During fiscal 2023, we repurchased 24.6 million common shares having an aggregate cost of $1.9 billion. We repurchased 13.6 million, 3.2 million, 3.2 million and 4.6 million common shares under multiple accelerated share repurchase (\"ASR\") programs with average prices paid per common share of $73.36, $77.50, $77.27 and $87.18, respectively. These repurchases began on September 14, 2022 and we expect the most recent program to conclude in August 2023.During fiscal 2022, we repurchased 19.5 million common shares having an aggregate cost of $1.0 billion. We repurchased 9.8 million, 6.1 million and 3.6 million common shares under multiple ASR programs with average prices paid per common share of $51.10, $49.39 and $56.02, respectively. These repurchases began on August 18, 2021 and concluded on April 18, 2022. During fiscal 2021, we repurchased 3.7 million common shares having an aggregate cost of $200 million. The average price paid per common share was $54.40. These repurchases were made under an ASR program, which began on February 9, 2021 and was completed on March 31, 2021.Accumulated Other Comprehensive LossThe following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total:(in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2021$(46)$12 $(34)Other comprehensive loss, before reclassifications(56)(16)(72)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $24 million(56)(24)(80)Balance at June 30, 2022(102)(12)(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023$(137)$(14)$(151) During fiscal 2023, we repurchased 24.6 million common shares having an aggregate cost of $1.9 billion. We repurchased 13.6 million, 3.2 million, 3.2 million and 4.6 million common shares under multiple accelerated share repurchase (\"ASR\") programs with average prices paid per common share of $73.36, $77.50, $77.27 and $87.18, respectively. These repurchases began on September 14, 2022 and we expect the most recent program to conclude in August 2023. During fiscal 2022, we repurchased 19.5 million common shares having an aggregate cost of $1.0 billion. We repurchased 9.8 million, 6.1 million and 3.6 million common shares under multiple ASR programs with average prices paid per common share of $51.10, $49.39 and $56.02, respectively. These repurchases began on August 18, 2021 and concluded on April 18, 2022. During fiscal 2021, we repurchased 3.7 million common shares having an aggregate cost of $200 million. The average price paid per common share was $54.40. These repurchases were made under an ASR program, which began on February 9, 2021 and was completed on March 31, 2021."
    },
    {
      "status": "MODIFIED",
      "current_title": "Accumulated Other Comprehensive Loss",
      "prior_title": "Accumulated Other Comprehensive Loss",
      "similarity_score": 0.885,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2022$(102)$(12)$(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023(137)(14)(151)Other comprehensive loss, before reclassifications(1)(7)(8)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million(1)(15)(16)Balance at June 30, 2024$(138)$(29)$(167) Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million\""
      ],
      "current_body": "The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2022$(102)$(12)$(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023(137)(14)(151)Other comprehensive loss, before reclassifications(1)(7)(8)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million(1)(15)(16)Balance at June 30, 2024$(138)$(29)$(167) Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million",
      "prior_body": "The following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total: (in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2021$(46)$12 $(34)Other comprehensive loss, before reclassifications(56)(16)(72)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $24 million(56)(24)(80)Balance at June 30, 2022(102)(12)(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023$(137)$(14)$(151) Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $24 million Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million 76Cardinal Health | Fiscal 2023 Form 10-K 76Cardinal Health | Fiscal 2023 Form 10-K 76Cardinal Health | Fiscal 2023 Form 10-K 76 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Risk Factors",
      "similarity_score": 0.885,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications.\"",
        "Reworded sentence: \"If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions.\"",
        "Reworded sentence: \"We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain.\"",
        "Reworded sentence: \"If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "We could be subject to adverse changes in the tax laws or challenges to our tax positions.",
      "prior_title": "Risk Factors",
      "similarity_score": 0.883,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"We could be subject to adverse changes in the tax laws or challenges to our tax positions.\"",
        "Added sentence: \"Additionally, changes in tax laws or regulatory enforcement priorities may impact our tax position.\"",
        "Reworded sentence: \"These provisions may adversely impact our financial position and results of operations.Additionally, in connection with the accruals taken in connection with opioid-related lawsuits in fiscal year 2021, we recorded a net tax benefit, reflecting our then-current assessment of the estimated future deductibility of the amount that may be paid.\"",
        "Reworded sentence: \"Tax Cuts and Jobs Act (\"Tax Act\"); however, the tax law governing deductibility was changed by the Tax Act, and these estimates require significant judgment and it is possible that they could be subject to challenges by the U.S.\"",
        "Reworded sentence: \"See Note 9 of the \"Notes to Consolidated Financial Statements\" for more information regarding these matters.In fiscal year 2021, our provision for income taxes reflected a $424 million benefit from the tax benefits of a self-insurance pre-tax net operating loss carryback under the Coronavirus Aid, Relief and Economic Security (\"CARES\") Act.\""
      ],
      "current_body": "We are a large multinational corporation with operations in the United States and many foreign countries. As a result, we are subject to the tax laws of many jurisdictions. From time to time, proposals are made in the United States and other jurisdictions in which we operate that could adversely affect our tax positions, effective tax rate or tax payments. Additionally, changes in tax laws or regulatory enforcement priorities may impact our tax position. Specific initiatives that may impact us include possible increases in U.S. or foreign corporate income tax rates or other changes in tax law to raise revenue, the repeal of the LIFO (last-in, first-out) method of inventory accounting for income tax purposes, the establishment or increase in taxation at the U.S. state level on the basis of gross revenues, recommendations of the base erosion and profit shifting project undertaken by the Organization for Economic Cooperation and Development and the European Commission’s investigation into illegal state aid. In August 2022, the U.S. federal government enacted the Inflation Reduction Act, which imposed a 15 percent corporate minimum tax on certain large corporations and a 1 percent tax on share repurchases after December 31, 2022. These provisions may adversely impact our financial position and results of operations.Additionally, in connection with the accruals taken in connection with opioid-related lawsuits in fiscal year 2021, we recorded a net tax benefit, reflecting our then-current assessment of the estimated future deductibility of the amount that may be paid. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Jobs Act (\"Tax Act\"); however, the tax law governing deductibility was changed by the Tax Act, and these estimates require significant judgment and it is possible that they could be subject to challenges by the U.S. Internal Revenue Service (\"IRS\").We also regularly review these estimates and assumptions from time to time and adjust our accruals based on our review, resulting in changes in our tax provisions/(benefit). The actual amount of tax benefit related to uncertain tax positions may differ materially from these estimates. See Note 9 of the \"Notes to Consolidated Financial Statements\" for more information regarding these matters.In fiscal year 2021, our provision for income taxes reflected a $424 million benefit from the tax benefits of a self-insurance pre-tax net operating loss carryback under the Coronavirus Aid, Relief and Economic Security (\"CARES\") Act. Also, as a result of this net operating loss carryback, we received a U.S. federal income tax refund of $966 million. This fiscal year is being audited by the IRS, and it is possible that the IRS could challenge our tax position with respect to this self-insurance loss. If they do, our effective tax rate or cash flows could be adversely impacted. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may impact our self-insurance loss, which could negatively impact our financial position. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. Tax laws are complex and subject to varying interpretations. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year, including a specific inquiry into a restructuring in connection with integrating the July 2017 acquisition of the Patient Recovery business from Medtronic. Proposed adjustments in ongoing audits may adversely affect our effective tax rate or tax payments.Changes to the U.S. healthcare environment may not be favorable to us. Over a number of years, the U.S. healthcare industry has undergone significant changes designed to increase access to medical care, improve safety and patient outcomes, contain costs recommendations of the base erosion and profit shifting project undertaken by the Organization for Economic Cooperation and Development and the European Commission’s investigation into illegal state aid. In August 2022, the U.S. federal government enacted the Inflation Reduction Act, which imposed a 15 percent corporate minimum tax on certain large corporations and a 1 percent tax on share repurchases after December 31, 2022. These provisions may adversely impact our financial position and results of operations. Additionally, in connection with the accruals taken in connection with opioid-related lawsuits in fiscal year 2021, we recorded a net tax benefit, reflecting our then-current assessment of the estimated future deductibility of the amount that may be paid. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Jobs Act (\"Tax Act\"); however, the tax law governing deductibility was changed by the Tax Act, and these estimates require significant judgment and it is possible that they could be subject to challenges by the U.S. Internal Revenue Service (\"IRS\"). We also regularly review these estimates and assumptions from time to time and adjust our accruals based on our review, resulting in changes in our tax provisions/(benefit). The actual amount of tax benefit related to uncertain tax positions may differ materially from these estimates. See Note 9 of the \"Notes to Consolidated Financial Statements\" for more information regarding these matters. In fiscal year 2021, our provision for income taxes reflected a $424 million benefit from the tax benefits of a self-insurance pre-tax net operating loss carryback under the Coronavirus Aid, Relief and Economic Security (\"CARES\") Act. Also, as a result of this net operating loss carryback, we received a U.S. federal income tax refund of $966 million. This fiscal year is being audited by the IRS, and it is possible that the IRS could challenge our tax position with respect to this self-insurance loss. If they do, our effective tax rate or cash flows could be adversely impacted. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may impact our self-insurance loss, which could negatively impact our financial position. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. Tax laws are complex and subject to varying interpretations. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year, including a specific inquiry into a restructuring in connection with integrating the July 2017 acquisition of the Patient Recovery business from Medtronic. Proposed adjustments in ongoing audits may adversely affect our effective tax rate or tax payments.",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "15. Share-Based Compensation",
      "prior_title": "14. Share-Based Compensation",
      "similarity_score": 0.883,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"At June 30, 2024, 18 million shares remain available for future grants under the Cardinal Health, Inc.\"",
        "Reworded sentence: \"This means that only 7 million shares could be issued under awards other than stock options while 18 million shares could be issued under stock options.\"",
        "Reworded sentence: \"There were no stock options granted to employees during fiscal 2024, 2023 or 2022.\""
      ],
      "current_body": "We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. At June 30, 2024, 18 million shares remain available for future grants under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (\"2021 LTIP\"). Under the 2021 LTIP's fungible share counting provisions, stock options are counted against the plan as one share for every share issued; awards other than stock options are counted against the plan as two and one-half shares for every share issued. This means that only 7 million shares could be issued under awards other than stock options while 18 million shares could be issued under stock options. Shares are issued out of treasury shares when stock options are exercised and when restricted share units and performance share units vest. Until the end of fiscal 2018, stock options were granted to our officers and certain employees. There were no stock options granted to employees during fiscal 2024, 2023 or 2022. During fiscal 2024, we modified the equity incentive awards of four employees to amend provisions over involuntary termination. We recognized incremental share-based compensation expense of $9 million. The following table provides total share-based compensation expense by type of award: (in millions)202420232022Restricted share unit expense$77 $64 $69 Performance share unit expense44 32 12 Total share-based compensation expense$121 $96 $81",
      "prior_body": "We maintain stock incentive plans (collectively, the “Plans”) for the benefit of certain of our officers, directors and employees. At June 30, 2023, 21 million shares remain available for future grants under the Cardinal Health, Inc. 2021 Long-Term Incentive Plan (\"2021 LTIP\"). Under the 2021 LTIP's fungible share counting provisions, stock options are counted against the plan as one share for every share issued; awards other than stock options are counted against the plan as two and one-half shares for every share issued. This means that only 8 million shares could be issued under awards other than stock options while 21 million shares could be issued under stock options. Shares are issued out of treasury shares when stock options are exercised and when restricted share units and performance share units vest. Until the end of fiscal 2018, stock options were granted to our officers and certain employees. There were no stock options granted to employees during fiscal 2023, 2022 or 2021. The following table provides total share-based compensation expense by type of award: (in millions)202320222021Restricted share unit expense$64 $69 $73 Performance share unit expense32 12 16 Total share-based compensation expense$96 $81 $89"
    },
    {
      "status": "MODIFIED",
      "current_title": "Other Civil Litigation",
      "prior_title": "Other Civil Litigation",
      "similarity_score": 0.881,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In July 2022, the indirect purchasers filed an amended complaint and in August 2022, we filed a motion to dismiss the amended complaint.\""
      ],
      "current_body": "Generic Pharmaceutical Pricing Antitrust Litigation In December 2019, pharmaceutical distributors including us were added as defendants in a civil class action lawsuit filed by indirect purchasers of generic drugs, such as hospitals and retail pharmacies. The indirect purchaser case is part of a multidistrict litigation consisting of multiple individual class action matters consolidated in the Eastern District of Pennsylvania. The indirect purchaser plaintiffs allege that pharmaceutical distributors encouraged manufacturers to increase prices, provided anti-competitive pricing information to manufacturers and improperly engaged in customer allocation. In May 2020, the court granted our motion to dismiss. In July 2022, the indirect purchasers filed an amended complaint and in August 2022, we filed a motion to dismiss the amended complaint. We are vigorously defending ourselves in this matter, which remains pending as of June 30, 2024. 74Cardinal Health | Fiscal 2024 Form 10-K 74Cardinal Health | Fiscal 2024 Form 10-K 74Cardinal Health | Fiscal 2024 Form 10-K 74 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "Generic Pharmaceutical Pricing Antitrust Litigation In December 2019, pharmaceutical distributors including us were added as defendants in a civil class action lawsuit filed by indirect purchasers of generic drugs, such as hospitals and retail pharmacies. The indirect purchaser case is part of a multidistrict litigation consisting of multiple individual class action matters consolidated in the Eastern District of Pennsylvania. The indirect purchaser plaintiffs allege that pharmaceutical distributors encouraged manufacturers to increase prices, provided anti-competitive pricing information to manufacturers and improperly engaged in customer allocation. In May 2020, the court granted our motion to dismiss. In July 2022, the indirect purchasers filed an amended complaint and in August 2022, we filed a motion to dismiss the intended complaint. We are vigorously defending ourselves in this matter."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.874,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Commitments, Contingent Liabilities and Litigation CommitmentsGeneric Sourcing Venture with CVS HealthIn July 2014, we established Red Oak Sourcing, LLC (\"Red Oak Sourcing\"), a U.S.-based generic pharmaceutical sourcing venture with CVS Health for an initial term of 10 years.\"",
        "Reworded sentence: \"These payments are included as purchase obligations and other payments in the \"Contractual Obligations and Cash Requirements\" section of MD&A.ContingenciesNew York Opioid Stewardship ActIn April 2018, the State of New York passed a budget which included the Opioid Stewardship Act (the \"OSA\"), which created an aggregate $100 million annual assessment on all manufacturers and distributors licensed to sell or distribute opioids in New York.\"",
        "Reworded sentence: \"In connection with the OSA, we recorded an aggregate accrual of $41 million for calendar years 2017 and 2018 during fiscal 2021 based on the probable estimated payment amount.\"",
        "Reworded sentence: \"During fiscal 2023, we recorded $6 million of income to reduce the previously estimated accrual to the invoiced amount for the calendar year 2018 assessment and we paid $11 million.\"",
        "Reworded sentence: \"The amount of ultimate loss may differ from these estimates.We recognize income from the favorable outcome of litigation when we receive the associated cash or assets.We recognize estimated loss contingencies for certain litigation and regulatory matters and income from favorable resolution of 8.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Investments",
      "similarity_score": 0.872,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"operating lease assets is recognized on a straight-line basis over the lease term.\"",
        "Reworded sentence: \"We use the implicit rate if it is readily determinable.Our lease agreements contain lease components and non-lease components.\"",
        "Reworded sentence: \"Sublease income and the related assets and cash flows are not material to the consolidated financial statements at or for the fiscal years ended June 30, 2024, 2023 and 2022.We apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of less than 12 months.\"",
        "Reworded sentence: \"Vendor reserves were $112 million and $117 million at June 30, 2024 and 2023 respectively, excluding third-party returns.\"",
        "Reworded sentence: \"In connection with the opioid litigation as described further in Note 8, we recorded pre-tax charges of $5.63 billion during fiscal 2021, which were retained at Corporate.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "Investments in non-marketable equity securities are accounted for under the fair value, equity or net asset value method of accounting and are included in other assets in the consolidated balance sheets. For equity securities without a readily determinable fair value, we use the fair value measurement alternative and measure the securities at cost less impairment, if any, including adjustments for observable price changes in orderly transactions for an identical or similar investment of the same issuer. For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Our share of the earnings and losses are recorded in other (income)/expense, net in the consolidated statements of earnings/(loss). We monitor our investments for impairment by considering factors such as the operating performance of the investment and current economic and market conditions. Leases Our leases are primarily for corporate offices, distribution facilities, vehicles and equipment. We determine if an arrangement is a lease at its inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and corresponding operating lease liabilities are recognized in our consolidated balance sheets at lease commencement date based on the present value of lease payments over the lease term. Operating lease expense for operating lease assets is recognized on a straight-line basis over the lease term. As most of our leases do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate if it is readily determinable. Our lease agreements contain lease components and non-lease components. For all asset classes, we have elected to account for both of these components as a single lease component. We also, from time to time, sublease portions of our real estate property, resulting in sublease income. Sublease income and the related assets and cash flows are not material to the consolidated financial statements at or for the fiscal years ended June 30, 2023, 2022 and 2021. We apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of less than 12 months. Short-term lease expense recognized in fiscal 2023, 2022 and 2021 was immaterial.Our leases have remaining lease terms from less than 1 year up to approximately 20 years. Our lease terms may include options to extend or terminate the lease when it is reasonably certain and there is a significant economic incentive to exercise that option.See Note 5 for additional information regarding leases.Vendor ReservesIn the ordinary course of business, our vendors may dispute deductions taken against payments otherwise due to them or assert other disputes. These disputes are researched and resolved based upon the findings of the research performed. At any given time, there are outstanding items in various stages of research and resolution. In determining appropriate reserves for areas of exposure with our vendors, we assess historical experience and current outstanding claims. We have established various levels of reserves based on the type of claim and status of review. Though the claim types are relatively consistent, we periodically update our reserve estimates to reflect actual historical experience. The ultimate outcome of certain claims may be different than our original estimate and may require an adjustment. Adjustments to vendor reserves are included in cost of products sold. In addition, the reserve balance will fluctuate due to variations of outstanding claims from period-to-period, timing of settlements and specific vendor issues. Vendor reserves were $117 million and $105 million at June 30, 2023 and 2022 respectively, excluding third-party returns. See \"Third-Party Returns\" section within this Note for a description of third-party returns.Distribution Services Agreement and Other Vendor FeesOur Pharmaceutical segment recognizes fees received from distribution services agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment. Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings/(loss) when the inventory is sold.Loss Contingencies and Self-InsuranceLoss ContingenciesWe accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In connection with the opioid litigation as described further in the Note 7, we recorded pre-tax charges of $1.17 billion during fiscal 2021, which were retained at Corporate. In February 2022, we and two other national distributors announced that each company had determined that a sufficient number of political subdivisions had agreed to participate in the previously disclosed settlement We apply a practical expedient for short-term leases whereby we do not recognize a lease liability and right-of-use asset for leases with a term of less than 12 months. Short-term lease expense recognized in fiscal 2023, 2022 and 2021 was immaterial. Our leases have remaining lease terms from less than 1 year up to approximately 20 years. Our lease terms may include options to extend or terminate the lease when it is reasonably certain and there is a significant economic incentive to exercise that option. See Note 5 for additional information regarding leases."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Net Investment Hedges",
      "similarity_score": 0.871,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In September 2023, we entered into ¥18 billion ($120 million) cross-currency swaps maturing in September 2025 and ¥18 billion ($120 million) cross-currency swaps maturing in June 2027.In September 2023, we terminated the ¥38 billion ($300 million) cross-currency swaps entered into in January 2023 and received net settlement in cash of $28 million, recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows.In January 2023, we entered into ¥19 billion ($150 million) cross-currency swaps maturing in September 2025 and ¥19 billion ($150 million) cross-currency swaps maturing in June 2027.\"",
        "Reworded sentence: \"Pre-tax gains and losses from net investment hedges recorded in the foreign currency translation component of accumulated other comprehensive loss were a $26 million gain and a $6 million loss during fiscal 2024 and 2023, respectively.\"",
        "Reworded sentence: \"The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net in the consolidated statements of earnings/(loss).\"",
        "Reworded sentence: \"Pre-tax gains and losses from net investment hedges recorded in the foreign currency translation component of accumulated other comprehensive loss were a $26 million gain and a $6 million loss during fiscal 2024 and 2023, respectively.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "We hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries. To accomplish this, we enter into cross-currency swaps that are designated as hedges of net investments. During fiscal 2023, we entered into €100 million ($107 million) cross-currency swaps maturing in March 2025, €100 million ($107 million) cross-currency swaps maturing in March 2026, ¥19 billion ($150 million) cross-currency swaps maturing in September 2025 and ¥19 billion ($150 million) cross-currency swaps maturing in June 2027. During fiscal 2023, we terminated the €200 million ($233 million) cross-currency swap entered into in September 2018 and the ¥48 billion ($400 million) cross-currency swaps entered into in March 2022 and received net settlements in cash of $19 million and $10 million, respectively. These were recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows. During fiscal 2022, we entered into a ¥24 billion ($200 million) cross-currency swap maturing in September 2025 and a ¥24 billion ($200 million) cross-currency swap maturing in June 2027. During fiscal 2022, we terminated the ¥64 billion ($600 million) cross-currency swap entered into in August 2019 and received a net settlement in cash of $71 million recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows.Cross-currency swaps designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive loss until the sale or substantial liquidation of the underlying net investments. To the extent the cross-currency swaps designated as net investment hedges are not highly effective, changes in carrying value attributable to the change in spot rates are recorded in earnings. Pre-tax gains and losses from net investment hedges recorded in the foreign currency translation component of accumulated other comprehensive loss were a $6 million loss and a $86 million gain during fiscal 2023 and 2022, respectively. Gains recognized in interest expense, net in the consolidated statements of earnings/(loss) for the portion of the net investment hedges excluded from the assessment of hedge effectiveness were $16 million and $21 million during fiscal 2023 and 2022, respectively.Economic (Non-Designated) HedgesWe enter into foreign currency contracts to manage our foreign exchange exposure related to sales transactions, intercompany financing transactions and other balance sheet items subject to revaluation that do not meet the requirements for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net. The principal currencies managed through foreign currency contracts are the Euro, Chinese renminbi, Canadian dollar, Indian rupee and Philippine peso.The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: 2023(in millions)Notional AmountMaturity DateForeign currency contracts$137 July 2023 2022(in millions)Notional AmountMaturity DateForeign currency contracts$265 Jul 2022The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments:(in millions)202320222021Foreign currency contracts (1)$(7)$— $(8)(1) Included in other income, net in the consolidated statements of earnings/(loss). During fiscal 2022, we terminated the ¥64 billion ($600 million) cross-currency swap entered into in August 2019 and received a net settlement in cash of $71 million recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows. Cross-currency swaps designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of accumulated other comprehensive loss until the sale or substantial liquidation of the underlying net investments. To the extent the cross-currency swaps designated as net investment hedges are not highly effective, changes in carrying value attributable to the change in spot rates are recorded in earnings. Pre-tax gains and losses from net investment hedges recorded in the foreign currency translation component of accumulated other comprehensive loss were a $6 million loss and a $86 million gain during fiscal 2023 and 2022, respectively. Gains recognized in interest expense, net in the consolidated statements of earnings/(loss) for the portion of the net investment hedges excluded from the assessment of hedge effectiveness were $16 million and $21 million during fiscal 2023 and 2022, respectively."
    },
    {
      "status": "MODIFIED",
      "current_title": "Failure to effectively or efficiently complete or manage critical business processes could have unforeseen consequences.",
      "prior_title": "Failure to effectively or efficiently complete or manage critical business processes could have unforeseen consequences.",
      "similarity_score": 0.871,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"For example, during fiscal 2022, our former Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider.\""
      ],
      "current_body": "From time to time, our businesses perform business process improvements or infrastructure modernizations or use service providers for key systems and processes, such as receiving and processing customer orders, customer service and accounts payable. For example, during fiscal 2022, our former Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider. These initiatives, transitions, and improvements require an ongoing commitment of resources. If any of these initiatives or similar initiatives, including those related to artificial intelligence and machine learning, are not successfully or efficiently implemented or maintained, or if our relationship with critical third-party service providers deteriorates, we could experience negative impacts on our business, financial results and our internal control over financial reporting.",
      "prior_body": "From time to time, our businesses perform business process improvements or infrastructure modernizations or use service providers for key systems and processes, such as receiving and processing customer orders, customer service and accounts payable. For example, during fiscal 2022, our Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider. If any of these initiatives or similar initiatives are not successfully or efficiently implemented or maintained, or if our relationship with critical third-party service providers deteriorates, we could experience material negative impacts on our business and our internal control over financial reporting. 40Cardinal Health | Fiscal 2023 Form 10-K 40Cardinal Health | Fiscal 2023 Form 10-K 40Cardinal Health | Fiscal 2023 Form 10-K 40 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Net earnings/(loss) attributable to Cardinal Health, Inc.",
      "prior_title": "Net earnings/(loss) attributable to Cardinal Health, Inc.",
      "similarity_score": 0.863,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for fiscal 2024, 2023 and 2022 were 1 million, 2 million and 5 million, respectively.\"",
        "Added sentence: \"80Cardinal Health | Fiscal 2024 Form 10-K 80Cardinal Health | Fiscal 2024 Form 10-K 80Cardinal Health | Fiscal 2024 Form 10-K 80 Cardinal Health | Fiscal 2024 Form 10-K\""
      ],
      "current_body": "The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for fiscal 2024, 2023 and 2022 were 1 million, 2 million and 5 million, respectively. During fiscal 2022, there were 1 million potentially dilutive employee stock options, restricted share units and performance share units, not included in the computation of diluted loss per common share attributable to Cardinal Health, Inc. because their effect would be anti-dilutive as a result of the net loss for the fiscal year. 80Cardinal Health | Fiscal 2024 Form 10-K 80Cardinal Health | Fiscal 2024 Form 10-K 80Cardinal Health | Fiscal 2024 Form 10-K 80 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for fiscal 2023, 2022 and 2021 were 2 million, 5 million and 3 million, respectively. During fiscal 2022, there were 1 million potentially dilutive employee stock options, restricted share units and performance share units, not included in the computation of diluted loss per common share attributable to Cardinal Health, Inc. because their effect would be anti-dilutive as a result of the net loss for the fiscal year."
    },
    {
      "status": "MODIFIED",
      "current_title": "Cordis IVC Filter Matters",
      "prior_title": "Cordis IVC Filter Matters",
      "similarity_score": 0.862,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We have been named as a defendant in product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by plaintiffs that allege personal injuries associated with the use of inferior vena cava (\"IVC\") filter products.\"",
        "Reworded sentence: \"In April 2023, we executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,375 claims for $275 million.\"",
        "Reworded sentence: \"Between May and September 2023, we made settlement payments totaling $275 million into a qualified settlement fund, which will be disbursed to the plaintiffs if required conditions are satisfied.\"",
        "Reworded sentence: \"At June 30, 2024, we had a total of $291 million accrued for losses and legal defense costs, related to the IVC filter product liability lawsuits in our consolidated balance sheets.\""
      ],
      "current_body": "We have been named as a defendant in product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by plaintiffs that allege personal injuries associated with the use of inferior vena cava (\"IVC\") filter products. These lawsuits sought a variety of remedies, including unspecified monetary damages. The divestiture of the Cordis business did not include product liability related to the IVC filters in the U.S. and Canada, which we retained. In April 2023, we executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,375 claims for $275 million. This settlement agreement is subject to certain conditions, including certain opt-in thresholds. Between May and September 2023, we made settlement payments totaling $275 million into a qualified settlement fund, which will be disbursed to the plaintiffs if required conditions are satisfied. Since July 2021, while we have entered into agreements to settle the vast majority of IVC-related product liability claims, these settlements will not resolve all of them, and we intend to continue to vigorously defend ourselves in the remaining lawsuits. We recognized income of $103 million during fiscal 2023, primarily related to a reduction of the reserve for the estimated settlement and defense costs for these matters due to the execution of the settlements noted above. At June 30, 2024, we had a total of $291 million accrued for losses and legal defense costs, related to the IVC filter product liability lawsuits in our consolidated balance sheets.",
      "prior_body": "Product Liability Lawsuits We have been named as a defendant in approximately 450 product liability lawsuits coordinated in Alameda County Superior Court in California involving claims by approximately 5,000 plaintiffs that allege personal injuries associated with the use of IVC filter products. These lawsuits sought a variety of remedies, including unspecified monetary damages. The divestiture of the Cordis business did not include product liability related to the IVC filters in the U.S. and Canada, which we retained. In April 2023, we executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,376 claims for $275 million. This settlement agreement is subject to certain conditions, including certain opt-in thresholds. Between May and September 2023, we will make settlement payments totaling $275 million into a qualified settlement fund, which will be disbursed to the plaintiffs if required conditions are satisfied. Since July 2021, we have also entered into other agreements to settle approximately 2,881 product liability claims. While these settlements will resolve the vast majority of IVC filter product liability claims, they will not resolve all of them, and we intend to continue to vigorously defend ourselves in the remaining lawsuits. Additionally, in August 2021, the Attorney General for the State of New Mexico filed an action against certain IVC filter manufacturers, including us, alleging claims under New Mexico's Unfair Practices Act, Medicaid Fraud Act and Fraud Against Taxpayers Act. The allegations made are similar to those made in the product liability lawsuits. We intend to vigorously defend ourselves against these claims. We recognized income of $103 million during fiscal 2023, primarily related to a reduction of the reserve for the estimated settlement and defense costs for these matters due to the execution of the settlements noted above. At June 30, 2023, we had a total of $385 million accrued for losses and legal defense costs, related to the IVC filter product liability lawsuits in our consolidated balance sheets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Interest Rate, Currency and Commodity Risk",
      "prior_title": "Interest Rate, Currency and Commodity Risk",
      "similarity_score": 0.858,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss).See Note 11 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges.Fair Value MeasurementsFair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date.\"",
        "Reworded sentence: \"The three levels of inputs used to measure fair values are:Level 1 - Observable prices in active markets for identical assets and liabilities.Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.See Note 10 for additional information regarding fair value measurements.Recently Adopted Financial Accounting StandardsThere were no accounting standards adopted in fiscal 2024 that had a material impact on our consolidated financial statements.Recently Issued Financial Accounting Standards and Disclosure Rules Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2023 Form 10-K.Segment ReportingIn November 2023, the FASB issued Accounting Standards Update (\"ASU\") 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses.\""
      ],
      "current_body": "All derivative instruments are recognized at fair value on the consolidated balance sheets and all changes in fair value are recognized in net earnings or shareholders’ equity through AOCI, net of tax. For contracts that qualify for hedge accounting treatment, the hedge contracts must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. Hedge effectiveness is assessed periodically. Any contract not designated as a hedge, or so designated but ineffective, is adjusted to fair value and recognized immediately in net earnings. If a fair value or cash flow hedge ceases to qualify for hedge accounting treatment, the contract continues to be carried on the balance sheet at fair value until settled and future adjustments to the contract’s fair value are recognized immediately in net earnings. If a forecasted transaction is probable not to occur, amounts previously deferred in AOCI are recognized immediately in net earnings. Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss).See Note 11 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges.Fair Value MeasurementsFair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:Level 1 - Observable prices in active markets for identical assets and liabilities.Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.See Note 10 for additional information regarding fair value measurements.Recently Adopted Financial Accounting StandardsThere were no accounting standards adopted in fiscal 2024 that had a material impact on our consolidated financial statements.Recently Issued Financial Accounting Standards and Disclosure Rules Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2023 Form 10-K.Segment ReportingIn November 2023, the FASB issued Accounting Standards Update (\"ASU\") 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses. This guidance will be effective for us in our fiscal 2025 Form 10-K and the guidance must be applied retrospectively to all prior periods presented. We are currently evaluating the impact of adoption of this guidance on our disclosures. is probable not to occur, amounts previously deferred in AOCI are recognized immediately in net earnings. Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss). See Note 11 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges.",
      "prior_body": "All derivative instruments are recognized at fair value on the consolidated balance sheets and all changes in fair value are recognized in net earnings or shareholders’ equity through AOCI, net of tax. For contracts that qualify for hedge accounting treatment, the hedge contracts must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the contract. Hedge effectiveness is assessed periodically. Any contract not designated as a hedge, or so designated but ineffective, is adjusted to fair value and recognized immediately in net earnings. If a fair value or cash flow hedge ceases to qualify for hedge accounting treatment, the contract continues to be carried on the balance sheet at fair value until settled and future adjustments to the contract’s fair value are recognized immediately in net earnings. If a forecasted transaction is probable not to occur, amounts previously deferred in AOCI are recognized immediately in net earnings. Interest payments received from the cross-currency swap are excluded from the net investment hedge effectiveness assessment and are recorded in interest expense, net in the consolidated statements of earnings/(loss). See Note 10 for additional information regarding our derivative instruments, including the accounting treatment for instruments designated as fair value, cash flow, net investment and economic hedges. Fair Value MeasurementsFair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are:Level 1 - Observable prices in active markets for identical assets and liabilities.Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities.Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.See Note 9 for additional information regarding fair value measurements.Recently Adopted Financial Accounting StandardsThere were no accounting standards adopted in fiscal 2023 that had a material impact on our consolidated financial statements.Recently Issued Financial Accounting Standards Not Yet Adopted We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2022 Form 10-K. There were no accounting standards issued in fiscal 2023 that will have a material impact on our consolidated financial statements.2. Divestitures DivestituresOutcomesOn June 5, 2023, we signed a definitive agreement to contribute our Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a minority stake in the combined entity. The transaction closed on July 10, 2023 and we expect to recognize a gain of approximately $60 million in the first quarter of fiscal 2024, which will be included in impairments and (gain)/loss on disposal of assets, net.We classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value. We also consider whether an active program to locate a buyer has been initiated and if it is probable that the sale will occur within one year without significant changes to the plan to sell. Upon classification of the disposal group as held for sale, we assess the assets for impairment and cease related depreciation and amortization."
    },
    {
      "status": "MODIFIED",
      "current_title": "Major Customers",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.858,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"CVS Health Corporation (\"CVS Health\") and OptumRx are our only customers that individually accounted for at least 10 percent of revenue and/or gross trade receivables in fiscal 2024.\"",
        "Reworded sentence: \"Sales to members of these two GPOs collectively accounted for 16 percent, 15 percent and 19 percent of revenue for fiscal 2024, 2023 and 2022, respectively.\"",
        "Reworded sentence: \"As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2024 and 2023, respectively, inventories valued at LIFO cost were $749 million and $476 million higher than the average cost value.\"",
        "Reworded sentence: \"As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2024 or 2023.\"",
        "Removed sentence: \"During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value.\""
      ],
      "current_body": "CVS Health Corporation (\"CVS Health\") and OptumRx are our only customers that individually accounted for at least 10 percent of revenue and/or gross trade receivables in fiscal 2024. These customers were primarily serviced through our Pharmaceutical and Specialty Solutions segment. Our pharmaceutical distribution contracts with OptumRx expired at the end of June 2024. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020242023202220242023CVS Health24 %25 %25 %22 %23 %OptumRx17 %16 %16 %6 %6 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 15 percent and 19 percent of revenue for fiscal 2024, 2023 and 2022, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements. InventoriesA portion of our inventories (50 percent and 54 percent at June 30, 2024 and 2023, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical and Specialty Solutions segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2024 and 2023, respectively, inventories valued at LIFO cost were $749 million and $476 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2024 or 2023. Our remaining inventory, including inventory in our GMPD segment and certain inventory in our Pharmaceutical and Specialty Solutions segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $149 million and $139 million at June 30, 2024 and 2023, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training,",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "9. Fair Value Measurements",
      "similarity_score": 0.858,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Fair Value Measurements The following tables present the fair values for assets and (liabilities) measured on a recurring basis at June 30:2024(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$1,442 $— $— $1,442 Other investments (1)108 — — 108 Liabilities:Forward contracts (2)— (87)— (87)2023(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$1,253 $— $— $1,253 Other investments (1)101 — — 101 Liabilities:Forward contracts (2)— (73)— (73)(1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities.\"",
        "Reworded sentence: \"The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets.Assets Measured on a Nonrecurring Basis As discussed further in Note 3, on July 10, 2023, we closed the transaction to contribute the Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity.\"",
        "Reworded sentence: \"We utilize a mix of debt maturities on our fixed-rate debt to manage changes in interest rates.\"",
        "Reworded sentence: \"Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses.Commodity Price Risk ManagementWe are exposed to changes in the price of certain commodities.\"",
        "Reworded sentence: \"The fair value of these investments is determined using quoted market prices.(2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following tables present the fair values for assets and liabilities measured on a recurring basis at June 30: 2023(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$1,253 $— $— $1,253 Other investments (1)101 — — 101 Liabilities:Forward contracts (2)— (73)— (73) 2022(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$2,425 $— $— $2,425 Other investments (1)97 — — 97 Forward contracts (2)— 15 — 15 (1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices.(2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets. 10. Financial Instruments We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk but are not designated as hedging instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and only enter into derivative instruments with major financial institutions that are rated investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements.Interest Rate Risk ManagementWe are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities along with both fixed-rate and variable-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs.Currency Exchange Risk ManagementWe conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. 2022(in millions)Level 1Level 2Level 3TotalAssets:Cash equivalents$2,425 $— $— $2,425 Other investments (1)97 — — 97 Forward contracts (2)— 15 — 15 (1)The other investments balance includes investments in mutual funds, which offset fluctuations in deferred compensation liabilities. These mutual funds invest in the equity securities of companies with both large and small market capitalization and high-quality fixed income debt securities. The fair value of these investments is determined using quoted market prices. (2)The fair value of interest rate swaps, foreign currency contracts and net investment hedges is determined based on the present value of expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Observable Level 2 inputs are used to determine the present value of expected future cash flows. The fair value of these derivative contracts, which are subject to master netting arrangements under certain circumstances, is presented on a gross basis in prepaid expenses and other, other assets, other accrued liabilities and deferred income taxes and other liabilities within the consolidated balance sheets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Restricted Share Units",
      "prior_title": "Restricted Share Units",
      "similarity_score": 0.854,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards.\""
      ],
      "current_body": "Restricted share units granted under the Plans generally vest in equal annual installments over three years. Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts)Restricted Share UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20222.7 $46.03 Granted1.3 70.33 Vested(1.4)50.11 Canceled and forfeited(0.4)58.46 Nonvested at June 30, 20232.2 57.37 Granted0.9 91.06 Vested(1.2)60.47 Canceled and forfeited(0.2)74.40 Nonvested at June 30, 20241.7 $70.98 The following table provides additional data related to restricted share unit activity:(in millions)202420232022Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax$71 $73 $73 Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$63 $58 $74 Performance Share UnitsPerformance share units generally vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the performance goals are achieved and the Company's TSR relative to the S&P 500 Health Care Index, vested shares may range from zero to 240 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards.The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts):(in millions, except per share amounts)PerformanceShare UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20221.2 $54.32 Granted0.7 78.07 Vested(0.4)59.04 Canceled and forfeited(0.3)65.52 Nonvested at June 30, 20231.2 82.17 Granted0.5 94.66 Vested(0.4)62.26 Canceled and forfeited— — Nonvested at June 30, 20241.3 $97.03 The following table provides additional data related to performance share unit activity:(in millions)202420232022Total compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized, pre-tax$46 $38 $17 Weighted-average period over which performance share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$20 $23 $14 Employee Retirement Savings PlansSubstantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored contributory retirement savings plans, which include features under Section 401(k) of the Internal Revenue Code of 1986 and provide for matching and discretionary contributions by us. The total expense for our employee retirement savings plans was $65 million, $66 million and $60 million for fiscal 2024, 2023 and 2022, respectively. The following table provides additional data related to restricted share unit activity: (in millions)202420232022Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax$71 $73 $73 Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$63 $58 $74",
      "prior_body": "Restricted share units granted under the Plans generally vest in equal annual installments over three years. Restricted share units accrue cash dividend equivalents that are payable upon vesting of the awards.The following table summarizes all transactions related to restricted share units under the Plans:(in millions, except per share amounts)Restricted Share UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20213.0 $49.05 Granted1.7 51.83 Vested(1.5)49.60 Canceled and forfeited(0.5)50.58 Nonvested at June 30, 20222.7 46.03 Granted1.3 70.33 Vested(1.4)50.11 Canceled and forfeited(0.4)58.46 Nonvested at June 30, 20232.2 $57.37 The following table provides additional data related to restricted share unit activity:(in millions)202320222021Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax$73 $73 $73 Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$58 $74 $70 Performance Share UnitsPerformance share units generally vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 234 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards.The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts):(in millions, except per share amounts)PerformanceShare UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20211.2 $54.89 Granted0.4 51.91 Vested(0.3)52.36 Canceled and forfeited(0.1)52.66 Nonvested at June 30, 20221.2 54.32 Granted0.7 78.07 Vested(0.4)59.04 Canceled and forfeited(0.3)65.52 Nonvested at June 30, 20231.2 $82.17 accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to restricted share units under the Plans: (in millions, except per share amounts)Restricted Share UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20213.0 $49.05 Granted1.7 51.83 Vested(1.5)49.60 Canceled and forfeited(0.5)50.58 Nonvested at June 30, 20222.7 46.03 Granted1.3 70.33 Vested(1.4)50.11 Canceled and forfeited(0.4)58.46 Nonvested at June 30, 20232.2 $57.37 The following table provides additional data related to restricted share unit activity: (in millions)202320222021Total compensation cost, net of estimated forfeitures, related to nonvested restricted share and share unit awards not yet recognized, pre-tax$73 $73 $73 Weighted-average period in years over which restricted share and share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$58 $74 $70"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Fair Value Hedges",
      "similarity_score": 0.853,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"(1) Included in other assets in the consolidated balance sheets.(2) Included in deferred income taxes and other liabilities in the consolidated balance sheets.Fair Value HedgesWe enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates.\"",
        "Reworded sentence: \"During fiscal 2024, 2023 and 2022 there were no gains or losses recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt.During fiscal 2024, 2023 and 2022, we entered into pay-floating interest rate swaps with total notional amounts of $500 million, $300 million and $600 million, respectively.\"",
        "Reworded sentence: \"Losses currently included within accumulated other comprehensive loss associated with our cash flow hedges to be reclassified into net earnings within the next 12 months are $6 million.We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "We enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates. These contracts are designated and qualify as fair value hedges. Accordingly, the gain or loss recorded on the pay-floating interest rate swaps is directly offset by the change in fair value of the underlying debt. Both the derivative instrument and the underlying debt are adjusted to market value at the end of each period with any resulting gain or loss recorded in interest expense, net in the consolidated statements of earnings/(loss). During fiscal 2023, 2022 and 2021 there were no gains or losses recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt. During fiscal 2023, 2022 and 2021, we entered into pay-floating interest rate swaps with total notional amounts of $300 million, $600 million and $200 million, respectively. These swaps have been designated as fair value hedges of our fixed rate debt and are included in deferred income taxes and other liabilities in the consolidated balance sheets. During fiscal 2021, we unwound certain interest rate swap contracts with the notional amount of $550 million. In connection with the unwind of these contracts, we received cash proceeds of $18 million. The related gain was recognized in interest expense, net in our consolidated statements of earnings/(loss) over the remaining term of the debt agreement, which matured in March 2023.The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30: 2023(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$1,100 Jun 2027-Sep 20302022(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$800 Jun 2027-May 2029The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges:(in millions)202320222021Pay-floating interest rate swaps (1)$(50)$(44)$(8)Fixed-rate debt (1)50 44 8 (1) Included in interest expense, net in the consolidated statements of earnings/(loss).Cash Flow HedgesWe enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. During fiscal 2021, we terminated forward interest rate swaps with a total notional amount of $200 million that were entered into in fiscal 2020 because the forecasted transactions were probable of not occurring. As a result, we reclassified an immaterial deferred gain from accumulated other comprehensive loss into interest expense, net in our consolidated statements of earnings/(loss).Gains currently included within accumulated other comprehensive loss associated with our cash flow hedges to be reclassified into net earnings within the next 12 months are immaterial.We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses. At June 30, 2023 and 2022, we held contracts to hedge probable, but not firmly committed, revenue and expenses. The principal currencies hedged are the Canadian dollar, Mexican peso, Chinese renminbi, Thai baht, Euro, Japanese yen, Philippine peso, Australian dollar, Indian rupee, British pound and Swiss franc.We enter into commodity contracts to manage the price risk associated with forecasted purchases of certain commodities used in our Medical segment. with the unwind of these contracts, we received cash proceeds of $18 million. The related gain was recognized in interest expense, net in our consolidated statements of earnings/(loss) over the remaining term of the debt agreement, which matured in March 2023. The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30: 2023(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$1,100 Jun 2027-Sep 2030 2022(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$800 Jun 2027-May 2029 The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges: (in millions)202320222021Pay-floating interest rate swaps (1)$(50)$(44)$(8)Fixed-rate debt (1)50 44 8 (1) Included in interest expense, net in the consolidated statements of earnings/(loss). interest expense, net interest expense, net interest expense, net"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.848,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Leases The following table summarizes the components of lease cost: (in millions)202420232022Operating lease cost$120 $112 $117 Finance lease cost39 31 23 Variable lease cost31 21 13 Total lease cost$190 $164 $153 Variable lease cost primarily includes payments for property taxes, maintenance and insurance.\"",
        "Reworded sentence: \"Leases The following table summarizes the components of lease cost: (in millions)202420232022Operating lease cost$120 $112 $117 Finance lease cost39 31 23 Variable lease cost31 21 13 Total lease cost$190 $164 $153 Variable lease cost primarily includes payments for property taxes, maintenance and insurance.\"",
        "Reworded sentence: \"Operating lease right-of-use assets Operating lease right-of-use assets Current portion of operating lease liabilities Current portion of operating lease liabilities Long-term operating lease liabilities Long-term operating lease liabilities Finance lease right-of-use assets Finance lease right-of-use assets Current portion of finance lease liabilities Current portion of finance lease liabilities Long-term finance lease liabilities Long-term finance lease liabilities The following table summarizes supplemental cash flow information related to leases:(in millions)202420232022Cash paid for lease liabilities:Operating cash flows paid for operating leases$124 $119 $123 Financing cash flows paid for finance leases36 31 21 Non-cash right-of-use assets obtained in exchange for lease obligations:New operating leases143 75 101 New finance leases55 42 28 Future lease payments under non-cancellable leases as of June 30, 2024 were as follows: (in millions)Operating LeasesFinance LeasesTotal2025$134 $37 $171 2026114 30 144 202796 22 118 202878 13 91 202952 7 59 Thereafter102 9 111 Total future lease payments576 118 694 Less: imputed interest59 10 69 Total lease liabilities$517 $108 $625 7.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.",
      "prior_title": "Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.",
      "similarity_score": 0.839,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In addition, hardware, software or applications developed internally or procured from third parties may contain defects in design or manufacture or other problems beyond our control that could unexpectedly compromise information security.\"",
        "Reworded sentence: \"Any compromise of our or a service provider's information systems, including unauthorized access to or use or disclosure of sensitive information, could adversely impact our operations, results of operations or our ability to satisfy legal or regulatory requirements, including the EU general data protection regulation (GDPR) and those related to patient-identifiable health information and other sensitive personal and financial information at the state and U.S.\"",
        "Reworded sentence: \"It is possible that we could incur losses that may not be covered by insurance or that would exceed available insurance recoveries.\""
      ],
      "current_body": "Our business relies on the secure transmission, storage and hosting of patient-identifiable health information, financial information and other sensitive protected information relating to our customers, company, workforce and individuals with whom we and our customers conduct business. We have programs in place to detect, contain and respond to information security incidents. However, because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, hardware, software or applications developed internally or procured from third parties may contain defects in design or manufacture or other problems beyond our control that could unexpectedly compromise information security. Unauthorized parties have gained access in the past, and will continue to attempt to gain access, to our or a service provider's systems or facilities through fraud, social engineering or other forms of deception. We and our service providers have been the target of cyber attacks. Although we do not believe these incidents had a material impact on us, either individually or in the aggregate, similar incidents or events in the future may negatively impact our business, reputation or financial results.Any compromise of our or a service provider's information systems, including unauthorized access to or use or disclosure of sensitive information, could adversely impact our operations, results of operations or our ability to satisfy legal or regulatory requirements, including the EU general data protection regulation (GDPR) and those related to patient-identifiable health information and other sensitive personal and financial information at the state and U.S. federal level as further described in the Risk Factor titled “Our business is subject to other rigorous regulatory and licensing requirements,” above.In addition, insurance for losses arising from cyber-attacks or other breaches is becoming more costly and limited and may not be available to us at amounts that we historically have obtained or that we would like to obtain. It is possible that we could incur losses that may not be covered by insurance or that would exceed available insurance recoveries. If this happens, our results of operations and financial condition could be adversely affected.Our goodwill or other long-lived assets may be further impaired, which could require us to record additional significant charges to earnings in accordance with generally accepted accounting principles.U.S. GAAP requires us to test our goodwill for impairment on an annual basis, or more frequently if indicators for potential impairment exist. In addition, we review intangible assets with finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.In fiscal 2024, we performed annual impairment testing and concluded there were no impairments of goodwill for our reporting units as the estimated fair value of each reporting unit exceeded its carrying amount. However, the at-Home Solutions reporting unit estimated fair value exceeds its carrying amount by less than 1 percent and therefore, its goodwill could be impaired in future periods. The goodwill balance as of June 30, 2024 was $1.1 billion. Impairment testing involves estimates and significant judgments by management. We believe our assumptions and estimates are reasonable and appropriate; however, additional adverse changes in key assumptions, a failure to meet expected earnings or other financial plans, or unanticipated events and circumstances, an increase in the discount rate, a decrease in the terminal growth rate, increases in tax rates, or a significant change in industry or economic trends could affect the accuracy or validity of such estimates and may result in goodwill impairment in our at-Home solutions segment. It is also possible that we may record significant charges from impairment to goodwill of other reporting Unauthorized parties have gained access in the past, and will continue to attempt to gain access, to our or a service provider's systems or facilities through fraud, social engineering or other forms of deception. We and our service providers have been the target of cyber attacks. Although we do not believe these incidents had a material impact on us, either individually or in the aggregate, similar incidents or events in the future may negatively impact our business, reputation or financial results. Any compromise of our or a service provider's information systems, including unauthorized access to or use or disclosure of sensitive information, could adversely impact our operations, results of operations or our ability to satisfy legal or regulatory requirements, including the EU general data protection regulation (GDPR) and those related to patient-identifiable health information and other sensitive personal and financial information at the state and U.S. federal level as further described in the Risk Factor titled “Our business is subject to other rigorous regulatory and licensing requirements,” above. In addition, insurance for losses arising from cyber-attacks or other breaches is becoming more costly and limited and may not be available to us at amounts that we historically have obtained or that we would like to obtain. It is possible that we could incur losses that may not be covered by insurance or that would exceed available insurance recoveries. If this happens, our results of operations and financial condition could be adversely affected.",
      "prior_body": "Our business relies on the secure transmission, storage and hosting of patient-identifiable health information, financial information and other sensitive protected information relating to our customers, company, workforce and individuals with whom we and our customers conduct business. We have programs in place to detect, contain and respond to information security incidents. However, because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, hardware, software or applications developed internally or procured from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. Unauthorized parties have gained access in the past, and will continue to attempt to gain access, to our or a service provider's systems or facilities through fraud, trickery or other forms of deception. We have been the target of cyber attacks. Although we do not believe these incidents had a material impact on us, either individually or in the aggregate, similar incidents or events in the future may negatively impact our business, reputation or financial results. Any compromise of our or a service provider's information systems, including unauthorized access to or use or disclosure of sensitive information, could adversely impact our operations, results of operations or our ability to satisfy legal or regulatory requirements, including the EU general data protection regulation (GDPR) and those related to patient-identifiable health information and other sensitive personal and financial information as further described in the Risk Factor titled “Our business is subject to other rigorous quality, regulatory and licensing requirements,” above. In addition, insurance for losses arising from cyber-attacks or other breaches is becoming more costly and limited and may not be available to us at amounts that we historically have obtained or that we would like to obtain. It is possible that we could incur losses that may not be covered by insurance or that would exceed Cardinal Health | Fiscal 2023 Form 10-K39 Cardinal Health | Fiscal 2023 Form 10-K39 Cardinal Health | Fiscal 2023 Form 10-K39 Cardinal Health | Fiscal 2023 Form 10-K 39"
    },
    {
      "status": "MODIFIED",
      "current_title": "Five Year Performance Graph",
      "prior_title": "Five Year Performance Graph",
      "similarity_score": 0.837,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The line graph assumes, in each case, an initial investment of $100 invested at the closing price on June 30, 2019, and is based on the market prices at the end of each fiscal year through and including June 30, 2024, and reinvestment of dividends.\"",
        "Reworded sentence: \"June 30201920202021202220232024Cardinal Health, Inc.100.00 115.20 130.61 124.15 230.45 243.26 S&P 500 Index100.00 107.51 151.36 135.29 161.80 201.53 S&P 500 Healthcare Index100.00 110.90 141.87 146.64 154.53 172.57 46Cardinal Health | Fiscal 2024 Form 10-K 46Cardinal Health | Fiscal 2024 Form 10-K 46Cardinal Health | Fiscal 2024 Form 10-K 46 Cardinal Health | Fiscal 2024 Form 10-K Reports Reports\""
      ],
      "current_body": "The following line graph compares the cumulative total return of our common shares with the cumulative total return of the Standard & Poor’s Composite—500 Stock Index (the \"S&P 500 Index\") and the Standard & Poor's Composite—500 Healthcare Index (the \"S&P 500 Healthcare Index\"). The line graph assumes, in each case, an initial investment of $100 invested at the closing price on June 30, 2019, and is based on the market prices at the end of each fiscal year through and including June 30, 2024, and reinvestment of dividends. The S&P 500 Index and S&P 500 Healthcare Index investments are weighted on the basis of market capitalization at the beginning of each period. June 30201920202021202220232024Cardinal Health, Inc.100.00 115.20 130.61 124.15 230.45 243.26 S&P 500 Index100.00 107.51 151.36 135.29 161.80 201.53 S&P 500 Healthcare Index100.00 110.90 141.87 146.64 154.53 172.57 46Cardinal Health | Fiscal 2024 Form 10-K 46Cardinal Health | Fiscal 2024 Form 10-K 46Cardinal Health | Fiscal 2024 Form 10-K 46 Cardinal Health | Fiscal 2024 Form 10-K Reports Reports",
      "prior_body": "The following line graph compares the cumulative total return of our common shares with the cumulative total return of the Standard & Poor’s Composite—500 Stock Index (the \"S&P 500 Index\") and the Standard & Poor's Composite—500 Healthcare Index (the \"S&P 500 Healthcare Index\"). The line graph assumes, in each case, an initial investment of $100 invested at the closing price on June 30, 2018, and is based on the market prices at the end of each fiscal year through and including June 30, 2023, and reinvestment of dividends. The S&P 500 Index and S&P 500 Healthcare Index investments are weighted on the basis of market capitalization at the beginning of each period. June 30201820192020202120222023Cardinal Health, Inc.100.00 100.33 115.58 131.05 124.56 231.22 S&P 500 Index100.00 110.41 118.68 167.07 149.31 178.52 S&P 500 Healthcare Index100.00 112.99 125.31 160.29 165.69 174.60 46Cardinal Health | Fiscal 2023 Form 10-K 46Cardinal Health | Fiscal 2023 Form 10-K 46Cardinal Health | Fiscal 2023 Form 10-K 46 Cardinal Health | Fiscal 2023 Form 10-K Reports Reports"
    },
    {
      "status": "MODIFIED",
      "current_title": "Properties and Legal Proceedings",
      "prior_title": "Properties and Legal Proceedings",
      "similarity_score": 0.837,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Properties In the United States, at June 30, 2024, the Pharmaceutical and Specialty Solutions segment operated one national logistics center and a number of primary pharmaceutical and specialty distribution facilities.\"",
        "Removed sentence: \"Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K 43\""
      ],
      "current_body": "Properties In the United States, at June 30, 2024, the Pharmaceutical and Specialty Solutions segment operated one national logistics center and a number of primary pharmaceutical and specialty distribution facilities. The GMPD segment operated medical-surgical distribution, assembly, manufacturing and other operating facilities in the United States. At June 30, 2024, our GMPD segment also operated manufacturing facilities in Canada, Costa Rica, the Dominican Republic, Germany, Ireland, Japan, Malaysia, Malta, Mexico, Puerto Rico and Thailand. Our Other Operating Segments operated facilities throughout the United States. Our principal executive offices are headquartered in an owned building located at 7000 Cardinal Place in Dublin, Ohio. We consider our operating properties to be in satisfactory condition and adequate to meet our present needs. However, we regularly evaluate operating properties and may make further additions and improvements or consolidate locations as we seek opportunities to expand or enhance the efficiency of our business.",
      "prior_body": "Properties In the United States, at June 30, 2023, the Pharmaceutical segment operated one national logistics center; a number of primary pharmaceutical and specialty distribution facilities as well as nuclear pharmacy and radiopharmaceutical manufacturing facilities. The Medical segment operated medical-surgical distribution, assembly, manufacturing and other operating facilities in the United States. At June 30, 2023, our Medical segment also operated manufacturing facilities in Canada, Costa Rica, the Dominican Republic, Germany, Ireland, Japan, Malaysia, Malta, Mexico and Thailand. Our principal executive offices are headquartered in an owned building located at 7000 Cardinal Place in Dublin, Ohio. We consider our operating properties to be in satisfactory condition and adequate to meet our present needs. However, we regularly evaluate operating properties and may make further additions and improvements or consolidate locations as we seek opportunities to expand or enhance the efficiency of our business. Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K43 Cardinal Health | Fiscal 2023 Form 10-K 43"
    },
    {
      "status": "MODIFIED",
      "current_title": "Revenue Recognition",
      "prior_title": "Revenue Recognition",
      "similarity_score": 0.835,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Revenue in Pharmaceutical and Specialty Solutions, GMPD, Nuclear and Precision Health Solutions and at-Home Solutions operating segments is primarily related to the distribution of pharmaceutical and medical products, which include both manufactured and sourced products, and we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise.\"",
        "Reworded sentence: \"Revenues derived from services from all segments are immaterial for all periods presented.\"",
        "Added sentence: \"In connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment.\"",
        "Added sentence: \"We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position.\"",
        "Added sentence: \"These revisions impacted each quarter of fiscal 2022, 2023 and 2024.\""
      ],
      "current_body": "We recognize revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of goods or services to customers. Revenue in Pharmaceutical and Specialty Solutions, GMPD, Nuclear and Precision Health Solutions and at-Home Solutions operating segments is primarily related to the distribution of pharmaceutical and medical products, which include both manufactured and sourced products, and we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise. OptiFreight® Logistics revenue is related to shipping, freight management and logistics management services. Service revenues are recognized over the period that services are provided to the customer. Revenues derived from services from all segments are immaterial for all periods presented. We are generally the principal in a transaction, therefore our revenue is primarily recorded on a gross basis. When we are a principal in a transaction, we have determined that we control the ability to direct the use of the product or service prior to transfer to a customer, are primarily responsible for fulfilling the promise to provide the product or service to our customer, have discretion in establishing prices and ultimately control the transfer of the product or services provided to the customer. In connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment. We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position. These revisions impacted each quarter of fiscal 2022, 2023 and 2024.",
      "prior_body": "We recognize revenue in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of goods or services to customers. Revenue in both segments is primarily related to the distribution of pharmaceutical and medical products, which include both manufactured and sourced products, and we recognize at a point in time when title transfers to customers and we have no further obligation to provide services related to such merchandise. Service revenues are recognized over the period that services are provided to the customer. Revenues derived from services are not material for either segment for all periods presented. We are generally the principal in a transaction, therefore our revenue is primarily recorded on a gross basis. When we are a principal in a transaction, we have determined that we control the ability to direct the use of the product or service prior to transfer to a customer, are primarily responsible for fulfilling the promise to provide the product or service to our customer, have discretion in establishing prices and ultimately control the transfer of the product or services provided to the customer."
    },
    {
      "status": "MODIFIED",
      "current_title": "Changes or uncertainty in U.S. or international trade policies and exposure to economic, political and currency and other risks could disrupt our global operations or negatively impact our financial results.",
      "prior_title": "Changes or uncertainty in U.S. or international trade policies and exposure to economic, political and currency and other risks could disrupt our global operations or negatively impact our financial results.",
      "similarity_score": 0.832,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"For example, products and materials sourced, directly or indirectly, from outside the U.S., including from China, may be subject to major changes in tax or trade policy between the U.S.\"",
        "Reworded sentence: \"Changes in Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K 41\""
      ],
      "current_body": "We conduct our operations in various regions of the world outside of the United States, including Europe, Asia and Latin America. Global developments can affect our business in many ways. Our global operations are affected by local economic environments, including inflation, recession and competition. Additionally, divergent or unfamiliar regulatory systems and labor markets can increase the risks and burdens of operating in numerous countries. Our foreign operations expose us to a number of risks related to trade protection laws, tariffs, excise or other border taxes on goods sourced from certain countries or on the importation or exportation of products or raw materials. Changes or uncertainty in U.S. or international trade policies or tariffs could impact our global operations, as well as our customers and suppliers. For example, products and materials sourced, directly or indirectly, from outside the U.S., including from China, may be subject to major changes in tax or trade policy between the U.S. and countries from which we source such products and materials. These changes may include the imposition of additional tariffs or duties on imports, which may require taking certain actions such as raising prices and seeking alternative sources of supply. We may also be required to spend more money to source certain products or materials that we need or to manufacture certain of our products. This could adversely impact our business and results of operations. In addition, we conduct our business in U.S. dollars and various functional currencies of our foreign subsidiaries. Changes in Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K41 Cardinal Health | Fiscal 2024 Form 10-K 41",
      "prior_body": "We conduct our operations in various regions of the world outside of the United States, including Europe, Asia and Latin America. Global developments can affect our business in many ways. Our global operations are affected by local economic environments, including inflation, recession and competition. Additionally, divergent or unfamiliar regulatory systems and labor markets can increase the risks and burdens of operating in numerous countries. Our foreign operations expose us to a number of risks related to trade protection laws, tariffs, excise or other border taxes on goods sourced from certain countries or on the importation or exportation of products or raw materials. Changes or uncertainty in U.S. or international trade policies or tariffs could impact our global operations, as well as our customers and suppliers. We may be required to spend more money to source certain products or materials that we need or to manufacture certain of our products. This could adversely impact our business and results of operations. In addition, we conduct our business in U.S. dollars and various functional currencies of our foreign subsidiaries. Changes in foreign currency exchange rates could adversely affect our financial results, which are reported in U.S. dollars. We may not be able to hedge to protect us against these exposures, and any hedges may not successfully mitigate these exposures. Geopolitical dynamics caused by political, economic, social or other conditions in foreign countries and regions may continue to impact our business and results of operations. Both of our segments have experienced increased costs in fiscal years 2022 and 2023, including for fuel, and it is possible that we could experience supply disruptions or shortages if tariffs or other protective measures are enacted. 42Cardinal Health | Fiscal 2023 Form 10-K 42Cardinal Health | Fiscal 2023 Form 10-K 42Cardinal Health | Fiscal 2023 Form 10-K 42 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "13. Earnings/(Loss) Per Share Attributable to Cardinal Health, Inc.",
      "prior_title": "12. Earnings/(Loss) Per Share Attributable to Cardinal Health, Inc.",
      "similarity_score": 0.827,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following table reconciles the computation of basic and diluted earnings per share attributable to Cardinal Health, Inc.: (in millions, except per share amounts)202420232022Net earnings/(loss)$853 $331 $(937)Net earnings attributable to noncontrolling interest(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc.$852 $330 $(938)Weighted-average common shares–basic245 261 279 Effect of dilutive securities:Employee stock options, restricted share units and performance share units2 1 — Weighted-average common shares–diluted247 262 279 Basic earnings/(loss) per common share attributable to Cardinal Health, Inc.:$3.48 $1.27 $(3.37)Diluted earnings/(loss) per common share attributable to Cardinal Health, Inc.:3.45 1.26 (3.37)\""
      ],
      "current_body": "The following table reconciles the computation of basic and diluted earnings per share attributable to Cardinal Health, Inc.: (in millions, except per share amounts)202420232022Net earnings/(loss)$853 $331 $(937)Net earnings attributable to noncontrolling interest(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc.$852 $330 $(938)Weighted-average common shares–basic245 261 279 Effect of dilutive securities:Employee stock options, restricted share units and performance share units2 1 — Weighted-average common shares–diluted247 262 279 Basic earnings/(loss) per common share attributable to Cardinal Health, Inc.:$3.48 $1.27 $(3.37)Diluted earnings/(loss) per common share attributable to Cardinal Health, Inc.:3.45 1.26 (3.37)",
      "prior_body": "The following table reconciles the computation of basic and diluted earnings per share attributable to Cardinal Health, Inc.: (in millions, except per share amounts)202320222021Net earnings/(loss)$262 $(932)$612 Net earnings attributable to noncontrolling interest(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc.$261 $(933)$611 Weighted-average common shares–basic261 279 292 Effect of dilutive securities:Employee stock options, restricted share units and performance share units1 — 2 Weighted-average common shares–diluted262 279 294 Basic earnings/(loss) per common share attributable to Cardinal Health, Inc.:$1.00 $(3.35)$2.09 Diluted earnings/(loss) per common share attributable to Cardinal Health, Inc.:1.00 (3.35)2.08"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Our business and operations depend on the proper functioning of information systems, critical facilities and distribution networks and could be negatively impacted by events outside of our control.",
      "similarity_score": 0.825,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"We rely on our and third-party service providers' information systems for a wide variety of critical operations, including to obtain, rapidly process, analyze and manage data to: •facilitate the purchase and distribution of inventory items from numerous distribution centers; •receive, process and ship orders on a timely basis; •manage accurate billing and collections for thousands of customers; •process payments to suppliers; •facilitate manufacturing and assembly of medical products; and •generate financial information.\"",
        "Reworded sentence: \"Our results of operations could be adversely affected if our or a service provider's business processes, information systems, critical facilities or distribution networks are disrupted (including disruption of access), are damaged or fail, whether due to physical disruptions, such as climate change-related weather events, including wildfires, hurricanes, extreme temperatures or other natural disasters, pandemics (as they were by the COVID-19 pandemic) or power outages, systems updates, or due to cybersecurity incidents, ransomware or other actions of third parties, including labor strikes or shortages, political unrest and terrorist attacks.\"",
        "Reworded sentence: \"If we fail to effectively implement and maintain data governance structures across our businesses, to effectively interpret and utilize such data, or protect the integrity of such data, including systems powered by or incorporating artificial intelligence and machine learning, our operations could be impacted, and we may be at a competitive disadvantage.Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.Our business relies on the secure transmission, storage and hosting of patient-identifiable health information, financial information and other sensitive protected information relating to our customers, company, workforce and individuals with whom we and our customers conduct business.\"",
        "Reworded sentence: \"In addition, hardware, software or applications developed internally or procured from third parties may contain defects in design or manufacture or other problems beyond our control that could unexpectedly compromise information security.Unauthorized parties have gained access in the past, and will continue to attempt to gain access, to our or a service provider's systems or facilities through fraud, social engineering or other forms of deception.\"",
        "Reworded sentence: \"Our ability to compete effectively is increasingly dependent on access to and interpretation of data, and we may provide services that involve hosting customer data and operating software on third-party or our own systems.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "We rely on our and third-party service providers' information systems for a wide variety of critical operations, including to obtain, rapidly process, analyze and manage data to: •facilitate the purchase and distribution of inventory items from numerous distribution centers; •receive, process and ship orders on a timely basis; •manage accurate billing and collections for thousands of customers; •process payments to suppliers; •facilitate manufacturing and assembly of medical products; and •generate financial information. Our business also depends on the proper functioning of our and our suppliers' business processes, critical facilities, including our national logistics center, and our distribution networks. Our results of operations could be adversely affected if our or a service provider's business processes, information systems, critical facilities or distribution networks are disrupted (including disruption of access), are damaged or fail, whether due to physical disruptions, such as climate change-related weather events, including wildfires, hurricanes, extreme temperatures or other natural disasters, pandemics (as they were by the COVID-19 pandemic) or power outage, or due to cyber-security incidents, ransomware or other actions of third parties, including labor strikes or shortages, political unrest and terrorist attacks. Manufacturing disruptions also can occur due to regulatory action, production quality deviations, safety issues or raw material shortages or defects, or because a key product or component is manufactured at a single manufacturing facility with limited alternate facilities. Additionally, we incur costs to remediate these disruptions, and it is possible that these costs could be significant.Our ability to compete effectively is increasingly dependent on access to and interpretation of data. Data quality impacts customer ordering, order fulfillment and higher order processing. If we fail to effectively implement and maintain data governance structures across our businesses or to effectively interpret and utilize such data, our operations could be impacted and we may be at a competitive disadvantage.Our business and results of operations could be adversely affected if we experience a material cyber-attack or other systems breach.Our business relies on the secure transmission, storage and hosting of patient-identifiable health information, financial information and other sensitive protected information relating to our customers, company, workforce and individuals with whom we and our customers conduct business. We have programs in place to detect, contain and respond to information security incidents. However, because the techniques used to obtain unauthorized access, disable or degrade service or sabotage systems change frequently and may be difficult to detect for long periods of time, we may be unable to anticipate these techniques or to implement adequate preventative measures. In addition, hardware, software or applications developed internally or procured from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security.Unauthorized parties have gained access in the past, and will continue to attempt to gain access, to our or a service provider's systems or facilities through fraud, trickery or other forms of deception. We have been the target of cyber attacks. Although we do not believe these incidents had a material impact on us, either individually or in the aggregate, similar incidents or events in the future may negatively impact our business, reputation or financial results.Any compromise of our or a service provider's information systems, including unauthorized access to or use or disclosure of sensitive information, could adversely impact our operations, results of operations or our ability to satisfy legal or regulatory requirements, including the EU general data protection regulation (GDPR) and those related to patient-identifiable health information and other sensitive personal and financial information as further described in the Risk Factor titled “Our business is subject to other rigorous quality, regulatory and licensing requirements,” above.In addition, insurance for losses arising from cyber-attacks or other breaches is becoming more costly and limited and may not be available to us at amounts that we historically have obtained or that we would like to obtain. It is possible that we could incur losses that may not be covered by insurance or that would exceed ransomware or other actions of third parties, including labor strikes or shortages, political unrest and terrorist attacks. Manufacturing disruptions also can occur due to regulatory action, production quality deviations, safety issues or raw material shortages or defects, or because a key product or component is manufactured at a single manufacturing facility with limited alternate facilities. Additionally, we incur costs to remediate these disruptions, and it is possible that these costs could be significant. Our ability to compete effectively is increasingly dependent on access to and interpretation of data. Data quality impacts customer ordering, order fulfillment and higher order processing. If we fail to effectively implement and maintain data governance structures across our businesses or to effectively interpret and utilize such data, our operations could be impacted and we may be at a competitive disadvantage."
    },
    {
      "status": "MODIFIED",
      "current_title": "Net deferred income tax liability",
      "prior_title": "Net deferred income tax liability",
      "similarity_score": 0.823,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30: (in millions)20242023Noncurrent deferred income tax asset (1)$72 $53 Noncurrent deferred income tax liability (2)(2,044)(2,060)Noncurrent deferred income tax liability transferred to held for sale— (2)Net deferred income tax liability$(1,972)$(2,009) (1)Included in other assets in the consolidated balance sheets.\"",
        "Reworded sentence: \"Approximately $288 million of the valuation allowance at June 30, 2024 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized.\""
      ],
      "current_body": "Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30: (in millions)20242023Noncurrent deferred income tax asset (1)$72 $53 Noncurrent deferred income tax liability (2)(2,044)(2,060)Noncurrent deferred income tax liability transferred to held for sale— (2)Net deferred income tax liability$(1,972)$(2,009) (1)Included in other assets in the consolidated balance sheets. (2)Included in deferred income taxes and other liabilities in the consolidated balance sheets. At June 30, 2024 we had gross federal, state and international loss and credit carryforwards of $401 million, $10.7 billion and $1.1 billion, respectively, the tax effect of which is an aggregate deferred tax asset of $512 million. Substantially all of these carryforwards are available for at least three years. Approximately $288 million of the valuation allowance at June 30, 2024 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance would reduce income tax expense.",
      "prior_body": "Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30:(in millions)20232022Noncurrent deferred income tax asset (1)$53 $36 Noncurrent deferred income tax liability (2)(2,096)(2,030)Noncurrent deferred income tax liability transferred to held for sale(2)— Net deferred income tax liability$(2,045)$(1,994)(1)Included in other assets in the consolidated balance sheets.(2)Included in deferred income taxes and other liabilities in the consolidated balance sheets.At June 30, 2023 we had gross federal, state and international loss and credit carryforwards of $505 million, $3.4 billion and $2.1 billion, respectively, the tax effect of which is an aggregate deferred tax asset of $671 million. Substantially all of these carryforwards are available for at least three years. Approximately $403 million of the valuation allowance at June 30, 2023 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance would reduce income tax expense.Unrecognized Tax BenefitsWe had $1.0 billion, $943 million and $932 million of unrecognized tax benefits at June 30, 2023, 2022 and 2021, respectively. The June 30, 2023, 2022 and 2021 balances include $873 million, $858 million and $849 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We include the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the consolidated balance sheets. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:(in millions)202320222021Balance at beginning of fiscal year$943 $932 $998 Additions for tax positions of the current year25 7 121 Additions for tax positions of prior years133 39 223 Reductions for tax positions of prior years(16)(19)(138)Settlements with tax authorities (73)(12)(271)Expiration of the statute of limitations (2)(4)(1)Balance at end of fiscal year$1,010 $943 $932 It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service (\"IRS\") or other taxing authorities, possible settlement of audit issues, Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30: (in millions)20232022Noncurrent deferred income tax asset (1)$53 $36 Noncurrent deferred income tax liability (2)(2,096)(2,030)Noncurrent deferred income tax liability transferred to held for sale(2)— Net deferred income tax liability$(2,045)$(1,994) (1)Included in other assets in the consolidated balance sheets. (2)Included in deferred income taxes and other liabilities in the consolidated balance sheets. At June 30, 2023 we had gross federal, state and international loss and credit carryforwards of $505 million, $3.4 billion and $2.1 billion, respectively, the tax effect of which is an aggregate deferred tax asset of $671 million. Substantially all of these carryforwards are available for at least three years. Approximately $403 million of the valuation allowance at June 30, 2023 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized. However, to the extent that tax benefits related to these carryforwards are realized in the future, the reduction in the valuation allowance would reduce income tax expense."
    },
    {
      "status": "MODIFIED",
      "current_title": "Income Taxes",
      "prior_title": "Income Taxes",
      "similarity_score": 0.818,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"See Note 9 for additional information regarding income taxes.Other Accrued LiabilitiesOther accrued liabilities represent various current obligations, including certain accrued operating expenses, accrued rebates and taxes payable.Noncontrolling InterestsNoncontrolling interests represent the portion of net earnings, comprehensive income and net assets that is not attributable to Cardinal Health, Inc.\""
      ],
      "current_body": "We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. We assess the realizability of deferred tax assets on a quarterly basis and provide a valuation allowance for deferred tax assets when it is more likely than not that at least a portion of the deferred tax assets will not be realized. The realizability of deferred tax assets depends on our ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction and also considers all available positive and negative evidence. Deferred taxes for non-U.S. liabilities are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are indefinitely reinvested. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. For tax benefits that do not qualify for recognition, we recognize a liability for unrecognized tax benefits. See Note 9 for additional information regarding income taxes.Other Accrued LiabilitiesOther accrued liabilities represent various current obligations, including certain accrued operating expenses, accrued rebates and taxes payable.Noncontrolling InterestsNoncontrolling interests represent the portion of net earnings, comprehensive income and net assets that is not attributable to Cardinal Health, Inc. Share-Based CompensationShare-based compensation provided to employees is recognized in the consolidated statements of earnings/(loss) based on the grant date fair value of the awards. The fair value of restricted share units (\"RSUs\") is determined by the grant date market price of our common shares. The fair value of performance share units (\"PSUs\"), which include a market-based condition, is determined using a Monte Carlo valuation model. The key assumptions for the Monte Carlo valuation model are as follows:Award YearRisk-Free Interest Rate (2)Expected Volatility (3)20225.28%22.77 %20233.12%32.41 %2023 Modified (1)5.13%26.58 %20244.66%23.99 %(1) There was a modification of prior year awards in fiscal 2024 that required a new Monte Carlo Simulation valuation model.(2) Based on the U.S. Treasury yields over a term comparable to the remaining performance period.(3) Based on historical volatility and implied volatility indications. The compensation expense associated with nonvested PSUs is dependent on our periodic assessment of the probability of the performance goals being achieved. Based on the extent to which the performance goals are achieved and the Company's total shareholder return (\"TSR\") relative to the S&P 500 Health Care Index, vested shares may range from zero to 240 percent of the target award amount. Compensation expense is recognized regardless of the extent to which the market-based condition, the Company's relative TSR, is satisfied. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. For tax benefits that do not qualify for recognition, we recognize a liability for unrecognized tax benefits. See Note 9 for additional information regarding income taxes.",
      "prior_body": "We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are measured using enacted tax rates in the respective jurisdictions in which we operate. We assess the realizability of deferred tax assets on a quarterly basis and provide a valuation allowance for deferred tax assets when it is more likely than not that at least a portion of the deferred tax assets will not be realized. The realizability of deferred tax assets depends on our ability to generate sufficient taxable income within the carryback or carryforward periods provided for in the tax law for each applicable tax jurisdiction and also considers all available positive and negative evidence. Deferred taxes for non-U.S. liabilities are not provided on the unremitted earnings of subsidiaries outside of the United States when it is expected that these earnings are indefinitely reinvested. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. Tax benefits from uncertain tax positions are recognized when it is more likely than not that the position will be sustained upon examination of the technical merits of the position, including resolutions of any related appeals or litigation processes. The amount recognized is measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement. For tax benefits that do not qualify for recognition, we recognize a liability for unrecognized tax benefits. See Note 8 for additional information regarding income taxes."
    },
    {
      "status": "MODIFIED",
      "current_title": "Goodwill and Other Intangible Assets",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.818,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Purchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist.\"",
        "Reworded sentence: \"Effective January 1, 2024, we implemented a new enterprise operating and segment reporting structure.\"",
        "Reworded sentence: \"During fiscal 2024, discount rates used in our reporting unit valuations ranged from 10 to 11.5 percent.\"",
        "Reworded sentence: \"To further confirm fair value, we compare the aggregate fair value of our Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K 61\""
      ],
      "current_body": "Purchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. Purchased goodwill is tested for impairment at least annually. Qualitative factors are first assessed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. There is an option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. We have elected to bypass the qualitative assessment for our annual goodwill impairment test in the current year. The quantitative goodwill impairment test involves a comparison of the estimated fair value of the reporting unit to the respective carrying amount. Goodwill impairment testing involves judgment, including the identification of reporting units, qualitative evaluation of events and circumstances to determine if it is more likely than not that an impairment exists, and, if necessary, the estimation of the fair value of the applicable reporting unit. Effective January 1, 2024, we implemented a new enterprise operating and segment reporting structure. Refer to the \"Updated Segment Reporting Structure\" section within this Note for additional information. This change in segment structure resulted in changes to the composition of our former Medical operating segment excluding at-Home Solutions reporting unit (\"Medical Unit\"). Effective January 1, 2024, our reporting units are: Pharmaceutical and Specialty Solutions, GMPD, Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. GMPD and OptiFreight® Logistics comprised our former Medical Unit. Fair value can be determined using market, income or cost-based approaches. Our determination of estimated fair value of the reporting units is based on a combination of the income-based and market-based approaches. Under the income-based approach, we use a discounted cash flow model in which cash flows anticipated over several future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate risk-adjusted rate of return. We use our internal forecasts to estimate future cash flows, which we believe are consistent with those of a market participant, and include an estimate of long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ materially from those used in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. During fiscal 2024, discount rates used in our reporting unit valuations ranged from 10 to 11.5 percent. Under the market-based guideline public company method, we determine fair value by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. We also use the guideline transaction method to determine fair value based on pricing multiples derived from the sale of companies that are similar to our reporting units. To further confirm fair value, we compare the aggregate fair value of our Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K61 Cardinal Health | Fiscal 2024 Form 10-K 61",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Financial Statements and Supplementary Data",
      "prior_title": "Financial Statements and Supplementary Data",
      "similarity_score": 0.817,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"PageConsolidated Financial Statements and Schedule:Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 202252Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 202253Consolidated Balance Sheets at June 30, 2024 and 202354Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2024, 2023 and 202255Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2024, 2023 and 202256Notes to Consolidated Financial Statements57 Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 52 Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 53 Consolidated Balance Sheets at June 30, 2024 and 2023 54 Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 55 Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2024, 2023 and 2022 56 Notes to Consolidated Financial Statements 57 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K 51\""
      ],
      "current_body": "PageConsolidated Financial Statements and Schedule:Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 202252Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 202253Consolidated Balance Sheets at June 30, 2024 and 202354Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2024, 2023 and 202255Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2024, 2023 and 202256Notes to Consolidated Financial Statements57 Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 52 Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 53 Consolidated Balance Sheets at June 30, 2024 and 2023 54 Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2024, 2023 and 2022 55 Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2024, 2023 and 2022 56 Notes to Consolidated Financial Statements 57 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K51 Cardinal Health | Fiscal 2024 Form 10-K 51",
      "prior_body": "PageConsolidated Financial Statements and Schedule:Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 202152Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 202153Consolidated Balance Sheets at June 30, 2023 and 202254Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2023, 2022 and 202155Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2023, 2022 and 202156Notes to Consolidated Financial Statements57 Consolidated Statements of Earnings/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 52 Consolidated Statements of Comprehensive Income/(Loss) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 53 Consolidated Balance Sheets at June 30, 2023 and 2022 54 Consolidated Statements of Shareholders’ Equity/(Deficit) for the Fiscal Years Ended June 30, 2023, 2022 and 2021 55 Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2023, 2022 and 2021 56 Notes to Consolidated Financial Statements 57 Cardinal Health | Fiscal 2023 Form 10-K51 Cardinal Health | Fiscal 2023 Form 10-K51 Cardinal Health | Fiscal 2023 Form 10-K51 Cardinal Health | Fiscal 2023 Form 10-K 51"
    },
    {
      "status": "MODIFIED",
      "current_title": "Long-Term Debt",
      "prior_title": "Long-Term Debt",
      "similarity_score": 0.811,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $31.8 billion and $29.9 billion at June 30, 2024 and 2023, respectively.\"",
        "Removed sentence: \"During fiscal 2021, we redeemed all outstanding 3.2% Notes due June 2022 for $238 million and $262 million aggregate principal amount of 2.616% Notes due June 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes.\"",
        "Removed sentence: \"In connection with these redemptions, we recorded a $13 million loss on early extinguishment of debt.\"",
        "Removed sentence: \"We also early repurchased $40 million of the Floating Rate Notes due 2022 and $2 million of the 2.616% Notes due 2022.\"",
        "Removed sentence: \"In connection with the early debt repurchases, we recorded a $1 million loss on early extinguishment of debt.\""
      ],
      "current_body": "All the notes represent unsecured obligations of Cardinal Health, Inc. and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The 7.0% Debentures represent unsecured obligations of Allegiance Corporation (a wholly-owned subsidiary), which Cardinal Health, Inc. has guaranteed. None of these obligations are subject to a sinking fund and the Allegiance obligations are not redeemable prior to maturity. Interest is paid pursuant to the terms of the obligations. These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $31.8 billion and $29.9 billion at June 30, 2024 and 2023, respectively. During fiscal 2024, we issued additional debt with the aggregate principal amount of $1.15 billion to fund the repayment of all of the aggregate principal amount outstanding of our 3.5% Notes due 2024 and 3.079% Notes due 2024, at their respective maturities, and for general corporate purposes. During fiscal 2024, we repaid the full principal of $750 million of the 3.079% Notes due 2024 at maturity. The notes issued are $650 million aggregate principal amount of 5.125% Notes that mature on February 15, 2029 and $500 million aggregate principal amount of 5.45% Notes that mature on February 15, 2034. The proceeds of the notes issued, net of discounts, premiums, and debt issuance costs were $1.14 billion. A portion of the proceeds was invested in short-term time deposits of $550 million with initial effective maturities of more than three months. At June 30, 2024, we had $200 million remaining in those short-term time deposits and classified as prepaid expenses and other in our consolidated balance sheets. During fiscal 2023, we repaid the full principal of $550 million of the 3.2% Notes due 2023 at maturity. During fiscal 2022, we redeemed all outstanding $572 million principal amount of 2.616% Notes due 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes. In connection with this redemption, we recorded a $10 million loss on early extinguishment of debt. We also repaid the full principal of the $282 million Floating Rate Notes due 2022 as they became due. The repayments, redemptions and repurchases were paid for with available cash and other short-term borrowings. If we undergo a change of control, as defined in the notes, and if the notes receive specified ratings below investment grade by each of Standard & Poor's Ratings Services, Moody’s Investors Services and Fitch Ratings, any holder of the notes, excluding the debentures, can require with respect to the notes owned by such holder, or we can offer, to repurchase the notes at 101% of the principal amount plus accrued and unpaid interest.",
      "prior_body": "All the notes represent unsecured obligations of Cardinal Health, Inc. and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness. The 7.0% Debentures represent unsecured obligations of Allegiance Corporation (a wholly-owned subsidiary), which Cardinal Health, Inc. has guaranteed. None of these obligations are subject to a sinking fund and the Allegiance obligations are not redeemable prior to maturity. Interest is paid pursuant to the terms of the obligations. These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $29.8 billion and $27.1 billion at June 30, 2023 and 2022, respectively. During fiscal 2023, we repaid the full principal of $550 million of the 3.2% Notes due 2023 at maturity. During fiscal 2022, we redeemed all outstanding $572 million principal amount of 2.616% Notes due 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes. In connection with this redemption, we recorded a $10 million loss on early extinguishment of debt. We also repaid the full principal of the $282 million Floating Rate Notes due 2022 as they became due. During fiscal 2021, we redeemed all outstanding 3.2% Notes due June 2022 for $238 million and $262 million aggregate principal amount of 2.616% Notes due June 2022 at a redemption price equal to 100% of the principal amount and accrued but unpaid interest, plus the make-whole premium applicable to the notes. In connection with these redemptions, we recorded a $13 million loss on early extinguishment of debt. We also early repurchased $40 million of the Floating Rate Notes due 2022 and $2 million of the 2.616% Notes due 2022. In connection with the early debt repurchases, we recorded a $1 million loss on early extinguishment of debt. The repayments, redemptions and repurchases were paid for with available cash and other short-term borrowings. If we undergo a change of control, as defined in the notes, and if the notes receive specified ratings below investment grade by each of Standard & Poor's Ratings Services, Moody’s Investors Services and Fitch Ratings, any holder of the notes, excluding the debentures, can require with respect to the notes owned by such holder, or we can offer, to repurchase the notes at 101% of the principal amount plus accrued and unpaid interest."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.81,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"follows: $438 million, $537 million, $1.3 billion, $13 million, $651 million and $2.1 billion.Long-Term DebtAll the notes represent unsecured obligations of Cardinal Health, Inc.\"",
        "Reworded sentence: \"These notes are effectively subordinated to the liabilities of our subsidiaries, including trade payables of $31.8 billion and $29.9 billion at June 30, 2024 and 2023, respectively.During fiscal 2024, we issued additional debt with the aggregate principal amount of $1.15 billion to fund the repayment of all of the aggregate principal amount outstanding of our 3.5% Notes due 2024 and 3.079% Notes due 2024, at their respective maturities, and for general corporate purposes.\"",
        "Reworded sentence: \"We also repaid the full principal of the $282 million Floating Rate Notes due 2022 as they became due.\"",
        "Reworded sentence: \"In September 2023, Cardinal Health 23 Funding, LLC (\"CH-23 Funding\") was added as a seller under our committed receivables sales facility.\"",
        "Reworded sentence: \"in accordance with GAAP, each of CHF and CH-23 Funding is a separate legal entity from Cardinal Health, Inc.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Statements of Comprehensive Income/(Loss)",
      "prior_title": "Consolidated Statements of Comprehensive Income/(Loss)",
      "similarity_score": 0.806,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"(in millions)202420232022Net earnings/(loss)$853 $331 $(937)Other comprehensive income/(loss):Foreign currency translation adjustments and other(1)(35)(56)Net unrealized loss on derivative instruments, net of tax(15)(2)(24)Total other comprehensive loss, net of tax(16)(37)(80)Total comprehensive income/(loss)837 294 (1,017)Less: comprehensive income attributable to noncontrolling interests(1)(1)(1)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.\""
      ],
      "current_body": "(in millions)202420232022Net earnings/(loss)$853 $331 $(937)Other comprehensive income/(loss):Foreign currency translation adjustments and other(1)(35)(56)Net unrealized loss on derivative instruments, net of tax(15)(2)(24)Total other comprehensive loss, net of tax(16)(37)(80)Total comprehensive income/(loss)837 294 (1,017)Less: comprehensive income attributable to noncontrolling interests(1)(1)(1)Total comprehensive income/(loss) attributable to Cardinal Health, Inc. $836 $293 $(1,018)The accompanying notes are an integral part of these consolidated statements. Net unrealized loss on derivative instruments, net of tax Total other comprehensive loss, net of tax Cardinal Health | Fiscal 2024 Form 10-K53 Cardinal Health | Fiscal 2024 Form 10-K53 Cardinal Health | Fiscal 2024 Form 10-K53 Cardinal Health | Fiscal 2024 Form 10-K 53",
      "prior_body": "(in millions)202320222021Net earnings/(loss)$262 $(932)$612 Other comprehensive income/(loss):Foreign currency translation adjustments and other(35)(56)46 Net unrealized gain/(loss) on derivative instruments, net of tax(2)(24)24 Total other comprehensive income/(loss), net of tax(37)(80)70 Total comprehensive income/(loss)225 (1,012)682 Less: comprehensive income attributable to noncontrolling interests(1)(1)(1)Total comprehensive income/(loss) attributable to Cardinal Health, Inc. $224 $(1,013)$681 The accompanying notes are an integral part of these consolidated statements. Cardinal Health | Fiscal 2023 Form 10-K53 Cardinal Health | Fiscal 2023 Form 10-K53 Cardinal Health | Fiscal 2023 Form 10-K53 Cardinal Health | Fiscal 2023 Form 10-K 53"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.805,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"for $147 million, which was recorded in Other Assets in our consolidated balance sheets.We determined that the divestiture of the Outcomes™ business does not meet the criteria to be classified as discontinued operations.\"",
        "Reworded sentence: \"and Canada, as well as authority for these matters discussed in Note 8.\"",
        "Reworded sentence: \"In connection with the divestiture, we recognized a $51 million pre-tax loss in impairments and (gain)/loss on disposal of assets, net in our consolidated statement of earnings/(loss) in fiscal 2021.4.\"",
        "Reworded sentence: \"and Canada, as well as authority for these matters discussed in Note 8.\"",
        "Reworded sentence: \"In connection with the divestiture, we recognized a $51 million pre-tax loss in impairments and (gain)/loss on disposal of assets, net in our consolidated statement of earnings/(loss) in fiscal 2021.4.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Employee Retirement Savings Plans",
      "prior_title": "Employee Retirement Savings Plans",
      "similarity_score": 0.796,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The total expense for our employee retirement savings plans was $65 million, $66 million and $60 million for fiscal 2024, 2023 and 2022, respectively.\""
      ],
      "current_body": "Substantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored contributory retirement savings plans, which include features under Section 401(k) of the Internal Revenue Code of 1986 and provide for matching and discretionary contributions by us. The total expense for our employee retirement savings plans was $65 million, $66 million and $60 million for fiscal 2024, 2023 and 2022, respectively. Cardinal Health | Fiscal 2024 Form 10-K83 Cardinal Health | Fiscal 2024 Form 10-K83 Cardinal Health | Fiscal 2024 Form 10-K83 Cardinal Health | Fiscal 2024 Form 10-K 83",
      "prior_body": "Substantially all of our domestic non-union employees are eligible to be enrolled in our company-sponsored contributory retirement savings plans, which include features under Section 401(k) of the Internal Revenue Code of 1986 and provide for matching and discretionary contributions by us. The total expense for our employee retirement savings plans was $66 million, $60 million and $55 million for fiscal 2023, 2022 and 2021, respectively. 80Cardinal Health | Fiscal 2023 Form 10-K 80Cardinal Health | Fiscal 2023 Form 10-K 80Cardinal Health | Fiscal 2023 Form 10-K 80 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Opioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.",
      "prior_title": "Opioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.",
      "similarity_score": 0.796,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications.\"",
        "Reworded sentence: \"The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions.\"",
        "Reworded sentence: \"Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.\""
      ],
      "current_body": "Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted. The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur. We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services individually or in the aggregate, could have a negative impact on our results of operations. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.",
      "prior_body": "Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted. In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies. Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations."
    },
    {
      "status": "MODIFIED",
      "current_title": "Fair Value of Financial Instruments",
      "prior_title": "Fair Value of Financial Instruments",
      "similarity_score": 0.784,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at June 30, 2024 and 2023 approximate fair value due to their short-term maturities.\""
      ],
      "current_body": "The carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at June 30, 2024 and 2023 approximate fair value due to their short-term maturities. The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at June 30: (in millions)20242023Estimated fair value$4,891 $4,417 Carrying amount5,092 4,701 The fair value of our long-term obligations and other short-term borrowings is estimated based on either the quoted market prices for the same or similar issues or other inputs derived from available market information, which represents a Level 2 measurement. The following table is a summary of the fair value gain/(loss) of our derivative instruments based upon the estimated amount that we would receive (or pay), considering counter-party credit risk, to terminate the contracts at June 30: 20242023(in millions)NotionalAmountFair ValueGain/(Loss)NotionalAmountFair ValueGain/(Loss)Pay-floating interest rate swaps$1,600 $(91)$1,100 $(93)Foreign currency contracts579 (7)513 1 Cross-currency swap334 11 514 19 Cardinal Health | Fiscal 2024 Form 10-K79 Cardinal Health | Fiscal 2024 Form 10-K79 Cardinal Health | Fiscal 2024 Form 10-K79 Cardinal Health | Fiscal 2024 Form 10-K 79",
      "prior_body": "The carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at June 30, 2023 and 2022 approximate fair value due to their short-term maturities. The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at June 30: (in millions)20232022Estimated fair value$4,417 $5,049 Carrying amount4,701 5,315 The fair value of our long-term obligations and other short-term borrowings is estimated based on either the quoted market prices for the same or similar issues or other inputs derived from available market information, which represents a Level 2 measurement. The following table is a summary of the fair value gain/(loss) of our derivative instruments based upon the estimated amount that we would receive (or pay), considering counter-party credit risk, to terminate the contracts at June 30: 20232022(in millions)NotionalAmountFair ValueGain/(Loss)NotionalAmountFair ValueGain/(Loss)Pay-floating interest rate swaps$1,100 $(93)$800 $(43)Foreign currency contracts513 1 592 4 Cross-currency swap514 19 633 54"
    },
    {
      "status": "MODIFIED",
      "current_title": "Economic (Non-Designated) Hedges",
      "prior_title": "Economic (Non-Designated) Hedges",
      "similarity_score": 0.781,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net in the consolidated statements of earnings/(loss).\""
      ],
      "current_body": "We enter into foreign currency contracts to manage our foreign exchange exposure related to sales transactions, intercompany financing transactions and other balance sheet items subject to revaluation that do not meet the requirements for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net in the consolidated statements of earnings/(loss). The principal currencies managed through foreign currency contracts are the euro, Chinese renminbi, Canadian dollar, Indian rupee and British pound.The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: 2024(in millions)Notional AmountMaturity DateForeign currency contracts$178 Jul 2024 2023(in millions)Notional AmountMaturity DateForeign currency contracts$137 Jul 2023The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments:(in millions)202420232022Foreign currency contracts$1 $(7)$— Fair Value of Financial InstrumentsThe carrying amounts of cash and equivalents, trade receivables, net, accounts payable and other accrued liabilities at June 30, 2024 and 2023 approximate fair value due to their short-term maturities.The following table summarizes the estimated fair value of our long-term obligations and other short-term borrowings compared to the respective carrying amounts at June 30:(in millions)20242023Estimated fair value$4,891 $4,417 Carrying amount5,092 4,701 The fair value of our long-term obligations and other short-term borrowings is estimated based on either the quoted market prices for the same or similar issues or other inputs derived from available market information, which represents a Level 2 measurement.The following table is a summary of the fair value gain/(loss) of our derivative instruments based upon the estimated amount that we would receive (or pay), considering counter-party credit risk, to terminate the contracts at June 30:20242023(in millions)NotionalAmountFair ValueGain/(Loss)NotionalAmountFair ValueGain/(Loss)Pay-floating interest rate swaps$1,600 $(91)$1,100 $(93)Foreign currency contracts579 (7)513 1 Cross-currency swap334 11 514 19 through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net in the consolidated statements of earnings/(loss). The principal currencies managed through foreign currency contracts are the euro, Chinese renminbi, Canadian dollar, Indian rupee and British pound. The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: 2024(in millions)Notional AmountMaturity DateForeign currency contracts$178 Jul 2024 2023(in millions)Notional AmountMaturity DateForeign currency contracts$137 Jul 2023 The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments: (in millions)202420232022Foreign currency contracts$1 $(7)$— Foreign currency contracts",
      "prior_body": "We enter into foreign currency contracts to manage our foreign exchange exposure related to sales transactions, intercompany financing transactions and other balance sheet items subject to revaluation that do not meet the requirements for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The gain or loss recorded on these instruments is substantially offset by the remeasurement adjustment on the foreign currency denominated asset or liability. The settlement of the derivative instrument and the remeasurement adjustment on the foreign currency denominated asset or liability are both recorded in other (income)/expense, net. The principal currencies managed through foreign currency contracts are the Euro, Chinese renminbi, Canadian dollar, Indian rupee and Philippine peso. The following tables summarize the outstanding economic (non-designated) derivative instruments at June 30: 2023(in millions)Notional AmountMaturity DateForeign currency contracts$137 July 2023 2022(in millions)Notional AmountMaturity DateForeign currency contracts$265 Jul 2022 The following table summarizes the gain/(loss) recognized in earnings for economic (non-designated) derivative instruments: (in millions)202320222021Foreign currency contracts (1)$(7)$— $(8) (1) Included in other income, net in the consolidated statements of earnings/(loss). Cardinal Health | Fiscal 2023 Form 10-K75 Cardinal Health | Fiscal 2023 Form 10-K75 Cardinal Health | Fiscal 2023 Form 10-K75 Cardinal Health | Fiscal 2023 Form 10-K 75"
    },
    {
      "status": "MODIFIED",
      "current_title": "Our Pharmaceutical and Specialty Solutions segment’s profit margin could be adversely affected by changes in industry or market dynamics that we are not able to accurately predict.",
      "prior_title": "Our Pharmaceutical segment’s profit margin could be adversely affected by changes in industry or market dynamics that we are not able to accurately predict.",
      "similarity_score": 0.78,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The frequency, timing, magnitude and profit impact of generic pharmaceutical customer purchase volumes, pricing changes, customer contract renewals, generic pharmaceutical launches and generic pharmaceutical manufacturer pricing changes, which contribute to the performance of our generic pharmaceutical program, remain uncertain.\"",
        "Reworded sentence: \"If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical and Specialty Solutions segment profit and consolidated operating earnings will be adversely affected.\"",
        "Reworded sentence: \"Additionally, almost all of our distribution services agreements with branded pharmaceutical manufacturers provide that we receive fees from the manufacturers to compensate us for services we provide them.\""
      ],
      "current_body": "The frequency, timing, magnitude and profit impact of generic pharmaceutical customer purchase volumes, pricing changes, customer contract renewals, generic pharmaceutical launches and generic pharmaceutical manufacturer pricing changes, which contribute to the performance of our generic pharmaceutical program, remain uncertain. These factors have contributed to declines in some prior years and have more than offset the benefits from sourcing generic pharmaceuticals through our Red Oak Sourcing venture with CVS Health. If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical and Specialty Solutions segment profit and consolidated operating earnings will be adversely affected. With respect to branded pharmaceutical products, compensation under our contractual arrangements with manufacturers for the purchase of branded pharmaceutical products is generally based on the wholesale acquisition cost set by the manufacturer. Sales prices of branded pharmaceutical products to our customers generally are a percentage discount from wholesale acquisition cost. Additionally, almost all of our distribution services agreements with branded pharmaceutical manufacturers provide that we receive fees from the manufacturers to compensate us for services we provide them. However, under certain agreements, branded pharmaceutical price appreciation, which is determined by the manufacturers, also serves as a part of our compensation. If manufacturers change their historical approach to setting and increasing wholesale acquisition cost, decide to reduce prices, not to increase prices or to implement only small increases and we are 40Cardinal Health | Fiscal 2024 Form 10-K 40Cardinal Health | Fiscal 2024 Form 10-K 40Cardinal Health | Fiscal 2024 Form 10-K 40 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "As has been the case for several years, the frequency, timing, magnitude and profit impact of generic pharmaceutical customer purchase volumes, pricing changes, customer contract renewals, generic pharmaceutical launches and generic pharmaceutical manufacturer pricing changes remain uncertain as does their impact on Pharmaceutical segment profit and consolidated operating earnings. These factors have contributed to declines in some prior years and have more than offset the benefits from sourcing generic pharmaceuticals through our Red Oak Sourcing venture with CVS Health. If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical segment profit and consolidated operating earnings will be adversely affected.With respect to branded pharmaceutical products, compensation under our contractual arrangements with manufacturers for the purchase of branded pharmaceutical products is generally based on the wholesale acquisition cost set by the manufacturer. Sales prices of branded pharmaceutical products to our customers generally are a percentage discount from wholesale acquisition cost.Also, almost all of our distribution services agreements with branded pharmaceutical manufacturers provide that we receive fees from the manufacturers to compensate us for services we provide them. However, under certain agreements, branded pharmaceutical price appreciation, which is determined by the manufacturers also serves as a part of our compensation. If manufacturers, in the aggregate, change their historical approach to setting and increasing wholesale acquisition cost, decide to reduce prices, not to increase prices or to implement only small increases and we are unable to negotiate alternative ways to be compensated by manufacturers or customers for the value of our services, our margins could be adversely affected.We depend on direct and indirect suppliers to make theirproducts and raw materials available to us and are subject to fluctuations in costs, availability and regulatory risk associated with these products and raw materials.Our manufacturing businesses use oil-based resins, pulp, cotton, latex and other commodities as raw materials in many products. Prices of oil and gas also affect our distribution and transportation costs. Prices of these commodities are volatile and can fluctuate significantly, causing our costs to produce and distribute our products to fluctuate. Beginning in the fourth quarter of fiscal year 2021, we experienced higher supply chain costs, which had a negative impact on Medical segment profit in fiscal 2021, 2022 and 2023. Supply chain constraints have also had a negative impact on sales within our Medical segment. We did not offset the full impact of these cost increases in fiscal year 2023; however, we implemented certain cost reductions, price increases and surcharges to mitigate the impact. Due to competitive dynamics and contractual limitations, passing along cost increases is challenging. If we are not able to continue to increase prices as planned or if supply cost increases do not continue to normalize as expected, Medical segment profit could be negatively impacted to a greater extent than we currently anticipate.We depend on others to manufacture some products that we market and distribute. Our operations are also dependent on various components, compounds, raw materials and energy supplied by others. We purchase many of these components, raw materials and energy, and source certain products from numerous suppliers in various countries. In some instances, for reasons of quality assurance, cost effectiveness, or availability, we procure sourcing generic pharmaceuticals through our Red Oak Sourcing venture with CVS Health. If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical segment profit and consolidated operating earnings will be adversely affected. With respect to branded pharmaceutical products, compensation under our contractual arrangements with manufacturers for the purchase of branded pharmaceutical products is generally based on the wholesale acquisition cost set by the manufacturer. Sales prices of branded pharmaceutical products to our customers generally are a percentage discount from wholesale acquisition cost. Also, almost all of our distribution services agreements with branded pharmaceutical manufacturers provide that we receive fees from the manufacturers to compensate us for services we provide them. However, under certain agreements, branded pharmaceutical price appreciation, which is determined by the manufacturers also serves as a part of our compensation. If manufacturers, in the aggregate, change their historical approach to setting and increasing wholesale acquisition cost, decide to reduce prices, not to increase prices or to implement only small increases and we are unable to negotiate alternative ways to be compensated by manufacturers or customers for the value of our services, our margins could be adversely affected."
    },
    {
      "status": "MODIFIED",
      "current_title": "Antitrust Litigation Proceeds",
      "prior_title": "Antitrust Litigation Proceeds",
      "similarity_score": 0.78,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We recognized income for net recoveries in class action antitrust lawsuits in which we were a class member or plaintiff of $117 million, $130 million and $18 million during fiscal 2024, 2023 and 2022, respectively.\""
      ],
      "current_body": "We recognized income for net recoveries in class action antitrust lawsuits in which we were a class member or plaintiff of $117 million, $130 million and $18 million during fiscal 2024, 2023 and 2022, respectively.",
      "prior_body": "We received and recognized income resulting from settlements of lawsuits in which we were a class member or plaintiff of $130 million, $18 million and $112 million during fiscal 2023, 2022 and 2021, respectively."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Goodwill and Other Intangible Assets",
      "similarity_score": 0.778,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"reporting units to our total market capitalization.\"",
        "Reworded sentence: \"The use of alternate estimates and assumptions or changes in the industry or peer groups could materially affect the determination of fair value for each reporting unit and potentially result in goodwill impairment.In fiscal 2024, 2023 and 2022, we performed annual impairment testing and concluded that there were no impairments of goodwill for Pharmaceutical and Specialty Solutions, Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight® Logistics.\"",
        "Reworded sentence: \"Upon classification of the disposal group as held for sale, we test the assets for impairment and cease related depreciation and amortization.On May 24, 2024, we signed an agreement to sell the West Campus Dublin, Ohio office space.\"",
        "Reworded sentence: \"In fiscal 2024, 2023 and 2022, we performed annual impairment testing and concluded that there were no impairments of goodwill for Pharmaceutical and Specialty Solutions, Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight® Logistics.\"",
        "Added sentence: \"Assets Held for SaleWe classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "Purchased goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually or when indicators of impairment exist. Purchased goodwill is tested for impairment at least annually. Qualitative factors are first assessed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. There is an option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. We have elected to bypass the qualitative assessment for our annual goodwill impairment test in the current year. The quantitative goodwill impairment test involves a comparison of the estimated fair value of the reporting unit to the respective carrying amount. Goodwill impairment testing involves judgment, including the identification of reporting units, qualitative evaluation of events and circumstances to determine if it is more likely than not that an impairment exists, and, if necessary, the estimation of the fair value of the applicable reporting unit. We have two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. These operating segments are comprised of divisions (components), for which discrete financial information is available. Components are aggregated into reporting units for purposes of goodwill impairment testing to the extent that they share similar economic characteristics. Our reporting units are: Pharmaceutical operating segment (excluding our Nuclear and Precision Health Solutions division); Nuclear and Precision Health Solutions division; Medical operating segment (excluding our Cardinal Health at-Home Solutions division) (“Medical Unit”); and Cardinal Health at-Home Solutions division. Fair value can be determined using market, income or cost-based approaches. Our determination of estimated fair value of the reporting units is based on a combination of the income-based and market-based approaches. Under the income-based approach, we use a discounted cash flow model in which cash flows anticipated over several future periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate risk-adjusted rate of return. We use our internal forecasts to estimate future cash flows, which we believe are consistent with those of a market participant, and include an estimate of long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ materially from those used in our forecasts. We use discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. During fiscal 2023, discount rates used in our reporting unit valuations ranged from 9.5 to 11 percent. Under the market-based guideline public company method, we determine fair value by comparing our reporting units to similar businesses or guideline companies whose securities are actively traded in public markets. We also use the guideline transaction method to determine fair value based on pricing multiples derived from the sale of companies that are similar to our reporting units. To further confirm fair value, we compare the aggregate fair value of our reporting units to our total market capitalization. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including forecasted operating results. The use of alternate estimates and assumptions or changes in the industry or peer groups could materially affect the determination of fair value for each reporting unit and potentially result in goodwill impairment.We performed annual impairment testing in fiscal 2023, 2022 and 2021 and concluded that there were no impairments of goodwill for Pharmaceutical operating segment (excluding our Nuclear and Precision Health Solutions division); Nuclear and Precision Health Solutions division; and Cardinal Health at-Home Solutions division as the estimated fair value of each reporting unit exceeded its carrying value. As discussed further in Note 4, during fiscal 2023 and 2022, we recognized goodwill impairment charges related to our Medical Unit of $1.2 billion and $2.1 billion, respectively, which are included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings. There were tax benefits related to these goodwill impairment charges. See Note 8 for additional information.The impairment test for indefinite-lived intangibles other than goodwill involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. Our qualitative evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount.Intangible assets with finite lives, primarily customer relationships; trademarks, trade names and patents; and developed technology, are amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets over their estimated useful lives. We review intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of the future forecasted undiscounted cash flows expected to be generated by the asset group. Actual results may differ materially from those used in our forecasts.Assets Held for SaleWe classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value. We also consider whether an active program to locate a buyer has been initiated and if it is probable that the sale will occur within one year without significant changes to the plan to sell. Upon classification of the disposal confirm fair value, we compare the aggregate fair value of our reporting units to our total market capitalization. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including forecasted operating results. The use of alternate estimates and assumptions or changes in the industry or peer groups could materially affect the determination of fair value for each reporting unit and potentially result in goodwill impairment. We performed annual impairment testing in fiscal 2023, 2022 and 2021 and concluded that there were no impairments of goodwill for Pharmaceutical operating segment (excluding our Nuclear and Precision Health Solutions division); Nuclear and Precision Health Solutions division; and Cardinal Health at-Home Solutions division as the estimated fair value of each reporting unit exceeded its carrying value. As discussed further in Note 4, during fiscal 2023 and 2022, we recognized goodwill impairment charges related to our Medical Unit of $1.2 billion and $2.1 billion, respectively, which are included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings. There were tax benefits related to these goodwill impairment charges. See Note 8 for additional information. The impairment test for indefinite-lived intangibles other than goodwill involves first assessing qualitative factors to determine if it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. If so, then a quantitative test is performed to compare the estimated fair value of the indefinite-lived intangible asset to the respective asset's carrying amount. Our qualitative evaluation requires the use of estimates and significant judgments and considers the weight of evidence and significance of all identified events and circumstances and most relevant drivers of fair value, both positive and negative, in determining whether it is more likely than not that the fair value of the indefinite-lived intangible asset is less than its carrying amount. Intangible assets with finite lives, primarily customer relationships; trademarks, trade names and patents; and developed technology, are amortized using a combination of straight-line and accelerated methods based on the expected cash flows from the assets over their estimated useful lives. We review intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of the future forecasted undiscounted cash flows expected to be generated by the asset group. Actual results may differ materially from those used in our forecasts."
    },
    {
      "status": "MODIFIED",
      "current_title": "Unrecognized Tax Benefits",
      "prior_title": "Unrecognized Tax Benefits",
      "similarity_score": 0.776,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"We had $981 million, $1.0 billion and $948 million of unrecognized tax benefits at June 30, 2024, 2023 and 2022, respectively.\"",
        "Reworded sentence: \"The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:(in millions)202420232022Balance at beginning of fiscal year$1,015 $948 $957 Additions for tax positions of the current year30 25 7 Additions for tax positions of prior years28 133 19 Reductions for tax positions of prior years(87)(16)(19)Settlements with tax authorities (3)(73)(12)Expiration of the statute of limitations (2)(2)(4)Balance at end of fiscal year$981 $1,015 $948 It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S.\""
      ],
      "current_body": "We had $981 million, $1.0 billion and $948 million of unrecognized tax benefits at June 30, 2024, 2023 and 2022, respectively. The June 30, 2024, 2023 and 2022 balances include $882 million, $878 million and $866 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We include the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the consolidated balance sheets. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:(in millions)202420232022Balance at beginning of fiscal year$1,015 $948 $957 Additions for tax positions of the current year30 25 7 Additions for tax positions of prior years28 133 19 Reductions for tax positions of prior years(87)(16)(19)Settlements with tax authorities (3)(73)(12)Expiration of the statute of limitations (2)(2)(4)Balance at end of fiscal year$981 $1,015 $948 It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service (\"IRS\") or other taxing authorities, possible settlement of audit issues, reassessment of existing unrecognized tax benefits or the expiration of statutes of limitations. We estimate that the range of the possible change in unrecognized tax benefits within the next 12 months is between zero and a net decrease of up to $20 million, exclusive of penalties and interest.We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At June 30, 2024, 2023 and 2022, we had $65 million, $65 million and $48 million, respectively, accrued for the payment of interest and penalties. These balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the consolidated balance sheets. As a result of our IRS audit settlements and carryback claim, an immaterial amount of interest was recorded in fiscal 2024, 2023 and 2022.Other Tax MattersWe file income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions and various foreign jurisdictions. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year. Expiring or unusable loss and credit carryforwards and the required valuation allowances are adjusted quarterly based on available information. This information may support either an increase or a decrease in the required valuation allowance. After applying the valuation allowances, we do not anticipate any limitations on our use of any of the other net deferred income tax assets described above. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. benefits that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We include the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the consolidated balance sheets. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (in millions)202420232022Balance at beginning of fiscal year$1,015 $948 $957 Additions for tax positions of the current year30 25 7 Additions for tax positions of prior years28 133 19 Reductions for tax positions of prior years(87)(16)(19)Settlements with tax authorities (3)(73)(12)Expiration of the statute of limitations (2)(2)(4)Balance at end of fiscal year$981 $1,015 $948",
      "prior_body": "We had $1.0 billion, $943 million and $932 million of unrecognized tax benefits at June 30, 2023, 2022 and 2021, respectively. The June 30, 2023, 2022 and 2021 balances include $873 million, $858 million and $849 million, respectively, of unrecognized tax benefits that, if recognized, would have an impact on the effective tax rate. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not affect our effective tax rate. We include the full amount of unrecognized tax benefits in deferred income taxes and other liabilities in the consolidated balance sheets. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: (in millions)202320222021Balance at beginning of fiscal year$943 $932 $998 Additions for tax positions of the current year25 7 121 Additions for tax positions of prior years133 39 223 Reductions for tax positions of prior years(16)(19)(138)Settlements with tax authorities (73)(12)(271)Expiration of the statute of limitations (2)(4)(1)Balance at end of fiscal year$1,010 $943 $932"
    },
    {
      "status": "MODIFIED",
      "current_title": "Other Financing Arrangements",
      "prior_title": "Other Financing Arrangements",
      "similarity_score": 0.775,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"In September 2023, Cardinal Health 23 Funding, LLC (\"CH-23 Funding\") was added as a seller under our committed receivables sales facility.\"",
        "Reworded sentence: \"in accordance with GAAP, each of CHF and CH-23 Funding is a separate legal entity from Cardinal Health, Inc.\"",
        "Reworded sentence: \"As of June 30, 2024, we were in compliance with this financial covenant.At June 30, 2024 and 2023, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2024 and 2023.During fiscal 2024, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $1.3 billion.We had no amounts outstanding as of June 30, 2024 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2024 and 2023.\""
      ],
      "current_body": "In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $2.0 billion commercial paper program backed by a $2.0 billion revolving credit facility. We also have a $1.0 billion committed receivables sales facility. In February 2023, we extended our $2.0 billion revolving credit facility through February 25, 2028. In September 2022, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through September 30, 2025. In September 2023, Cardinal Health 23 Funding, LLC (\"CH-23 Funding\") was added as a seller under our committed receivables sales facility. Each of CHF and CH-23 Funding was organized for the sole purpose of buying receivables and selling undivided interests in those receivables to third-party purchasers. Although consolidated with Cardinal Health, Inc. in accordance with GAAP, each of CHF and CH-23 Funding is a separate legal entity from Cardinal Health, Inc. and from our respective subsidiary that sells receivables to CHF or CH-23 Funding, as applicable. Each of CHF and CH-23 Funding is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its respective creditors. Our revolving credit and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of June 30, 2024, we were in compliance with this financial covenant.At June 30, 2024 and 2023, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2024 and 2023.During fiscal 2024, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $1.3 billion.We had no amounts outstanding as of June 30, 2024 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2024 and 2023. We had no amounts outstanding under the commercial paper program as of June 30, 2024 and 2023. The $110 million and $86 million balance of other obligations at June 30, 2024 and 2023, respectively, consisted of finance leases and short-term borrowings. program backed by a $2.0 billion revolving credit facility. We also have a $1.0 billion committed receivables sales facility. In February 2023, we extended our $2.0 billion revolving credit facility through February 25, 2028. In September 2022, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through September 30, 2025. In September 2023, Cardinal Health 23 Funding, LLC (\"CH-23 Funding\") was added as a seller under our committed receivables sales facility. Each of CHF and CH-23 Funding was organized for the sole purpose of buying receivables and selling undivided interests in those receivables to third-party purchasers. Although consolidated with Cardinal Health, Inc. in accordance with GAAP, each of CHF and CH-23 Funding is a separate legal entity from Cardinal Health, Inc. and from our respective subsidiary that sells receivables to CHF or CH-23 Funding, as applicable. Each of CHF and CH-23 Funding is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its respective creditors. Our revolving credit and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of June 30, 2024, we were in compliance with this financial covenant. At June 30, 2024 and 2023, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2024 and 2023. During fiscal 2024, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $1.3 billion. We had no amounts outstanding as of June 30, 2024 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2024 and 2023. We had no amounts outstanding under the commercial paper program as of June 30, 2024 and 2023. The $110 million and $86 million balance of other obligations at June 30, 2024 and 2023, respectively, consisted of finance leases and short-term borrowings. Cardinal Health | Fiscal 2024 Form 10-K71 Cardinal Health | Fiscal 2024 Form 10-K71 Cardinal Health | Fiscal 2024 Form 10-K71 Cardinal Health | Fiscal 2024 Form 10-K 71",
      "prior_body": "In addition to cash and equivalents and operating cash flow, other sources of liquidity include a $2.0 billion commercial paper program backed by a $2.0 billion revolving credit facility. We also have a $1.0 billion committed receivables sales facility. In February 2023, we extended our $2.0 billion revolving credit facility through February 25, 2028. In September 2022, we renewed our committed receivables sales facility program through Cardinal Health Funding, LLC (“CHF”) through September 30, 2025. CHF was organized for the sole purpose of buying receivables and selling undivided interests in those receivables to third-party purchasers. Although consolidated with Cardinal Health, Inc. in accordance with GAAP, CHF is a separate legal entity from Cardinal Health, Inc. and from our subsidiary that sells receivables to CHF. CHF is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its creditors.Our revolving credit and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of June 30, 2023, we were in compliance with this financial covenant.At June 30, 2023 and 2022, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2023 and 2022.During fiscal 2023, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $445 million.We had no amounts outstanding as of June 30, 2023 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2023 and 2022. We had no amounts outstanding under the commercial paper program as of June 30, 2023 and 2022. The $86 million and $74 million balance of other obligations at June 30, 2023 and 2022, respectively, consisted of finance leases and short-term borrowings. Inc. in accordance with GAAP, CHF is a separate legal entity from Cardinal Health, Inc. and from our subsidiary that sells receivables to CHF. CHF is designed to be a special purpose, bankruptcy-remote entity whose assets are available solely to satisfy the claims of its creditors. Our revolving credit and committed receivables sales facilities require us to maintain a consolidated net leverage ratio of no more than 3.75-to-1. As of June 30, 2023, we were in compliance with this financial covenant. At June 30, 2023 and 2022, we had no amounts outstanding under the revolving credit facility; however, availability was reduced by outstanding letters of credit of $1 million at both June 30, 2023 and 2022. During fiscal 2023, we had a daily maximum amount outstanding under our commercial paper and committed receivables programs of $445 million. We had no amounts outstanding as of June 30, 2023 under the committed receivables sales facility program; however, availability was reduced by outstanding standby letters of credit of $31 million at both June 30, 2023 and 2022. We had no amounts outstanding under the commercial paper program as of June 30, 2023 and 2022. The $86 million and $74 million balance of other obligations at June 30, 2023 and 2022, respectively, consisted of finance leases and short-term borrowings. Cardinal Health | Fiscal 2023 Form 10-K67 Cardinal Health | Fiscal 2023 Form 10-K67 Cardinal Health | Fiscal 2023 Form 10-K67 Cardinal Health | Fiscal 2023 Form 10-K 67"
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Statements of Shareholders' Equity/(Deficit)",
      "prior_title": "Consolidated Statements of Shareholders' Equity/(Deficit)",
      "similarity_score": 0.774,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Common SharesTreasury SharesAccumulated OtherComprehensiveLossNoncontrolling InterestsTotalShareholders’Equity/(Deficit)(in millions)Shares IssuedAmountRetainedEarnings/(Accumulated Deficit)SharesAmountBalance at June 30, 2021327 $2,806 $1,033 (36)$(2,185)$(34)$3 $1,623 Net earnings/(loss)(938)1 (937)Other comprehensive loss, net of tax(80)(80)Employee stock plans activity, net of shares withheld for employee taxes— 7 2 57 64 Share repurchase program activity(20)(1,000)(1,000)Dividends declared(552)(552)Other1 (1)— Balance at June 30, 2022327 2,813 (456)(54)(3,128)(114)3 (882)Net earnings330 1 331 Other comprehensive loss, net of tax(37)(37)Purchase of noncontrolling interests(3)(3)Employee stock plans activity, net of shares withheld for employee taxes— 33 3 124 157 Share repurchase program activity(100)(25)(1,907)(2,007)Dividends declared(515)(515)Other(1)(1)Balance at June 30, 2023327 2,746 (642)(76)(4,911)(151)1 (2,957)Net earnings852 1 853 Other comprehensive loss, net of tax(16)(16)Employee stock plans activity, net of shares withheld for employee taxes— 71 2 93 164 Share repurchase program activity100(9)(859)(759)Dividends declared(496)(496)Other(1)(1)Balance at June 30, 2024327 $2,917 $(286)(83)$(5,677)$(167)$1 $(3,212) Other comprehensive loss, net of tax The accompanying notes are an integral part of these consolidated statements.\""
      ],
      "current_body": "Common SharesTreasury SharesAccumulated OtherComprehensiveLossNoncontrolling InterestsTotalShareholders’Equity/(Deficit)(in millions)Shares IssuedAmountRetainedEarnings/(Accumulated Deficit)SharesAmountBalance at June 30, 2021327 $2,806 $1,033 (36)$(2,185)$(34)$3 $1,623 Net earnings/(loss)(938)1 (937)Other comprehensive loss, net of tax(80)(80)Employee stock plans activity, net of shares withheld for employee taxes— 7 2 57 64 Share repurchase program activity(20)(1,000)(1,000)Dividends declared(552)(552)Other1 (1)— Balance at June 30, 2022327 2,813 (456)(54)(3,128)(114)3 (882)Net earnings330 1 331 Other comprehensive loss, net of tax(37)(37)Purchase of noncontrolling interests(3)(3)Employee stock plans activity, net of shares withheld for employee taxes— 33 3 124 157 Share repurchase program activity(100)(25)(1,907)(2,007)Dividends declared(515)(515)Other(1)(1)Balance at June 30, 2023327 2,746 (642)(76)(4,911)(151)1 (2,957)Net earnings852 1 853 Other comprehensive loss, net of tax(16)(16)Employee stock plans activity, net of shares withheld for employee taxes— 71 2 93 164 Share repurchase program activity100(9)(859)(759)Dividends declared(496)(496)Other(1)(1)Balance at June 30, 2024327 $2,917 $(286)(83)$(5,677)$(167)$1 $(3,212) Other comprehensive loss, net of tax The accompanying notes are an integral part of these consolidated statements. Cardinal Health | Fiscal 2024 Form 10-K55 Cardinal Health | Fiscal 2024 Form 10-K55 Cardinal Health | Fiscal 2024 Form 10-K55 Cardinal Health | Fiscal 2024 Form 10-K 55",
      "prior_body": "Common SharesTreasury SharesAccumulated OtherComprehensiveLossNoncontrolling InterestsTotalShareholders’Equity/(Deficit)(in millions)Shares IssuedAmountRetainedEarnings/(Accumulated Deficit)SharesAmountBalance at June 30, 2020327 $2,789 $1,170 (35)$(2,066)$(104)$3 $1,792 Net earnings611 1 612 Other comprehensive income, net of tax70 70 Employee stock plans activity, net of shares withheld for employee taxes— 17 3 80 97 Share repurchase program activity(4)(200)(200)Dividends declared(576)(576)Other(1)(1)Balance at June 30, 2021327 2,806 1,205 (36)(2,186)(34)3 1,794 Net earnings/(loss)(933)1 (932)Other comprehensive loss, net of tax(80)(80)Employee stock plans activity, net of shares withheld for employee taxes— 7 2 58 65 Share repurchase program activity(20)(1,000)(1,000)Dividends declared(552)(552)Other(1)(1)Balance at June 30, 2022327 2,813 (280)(54)(3,128)(114)3 (706)Net earnings261 1 262 Other comprehensive loss, net of tax(37)(37)Purchase of noncontrolling interests(3)(3)Employee stock plans activity, net of shares withheld for employee taxes— (66)3 121 55 Share repurchase program activity(25)(1,907)(1,907)Dividends declared(515)(515)Balance at June 30, 2023327 $2,747 $(534)(76)$(4,914)$(151)$1 $(2,851) The accompanying notes are an integral part of these consolidated statements. Cardinal Health | Fiscal 2023 Form 10-K55 Cardinal Health | Fiscal 2023 Form 10-K55 Cardinal Health | Fiscal 2023 Form 10-K55 Cardinal Health | Fiscal 2023 Form 10-K 55"
    },
    {
      "status": "MODIFIED",
      "current_title": "Restructuring and Employee Severance",
      "prior_title": "Restructuring and Employee Severance",
      "similarity_score": 0.772,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K 65\""
      ],
      "current_body": "Restructuring activities are programs that are not part of the ongoing operations of our underlying business, such as divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure in response to changing market conditions). Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K65 Cardinal Health | Fiscal 2024 Form 10-K 65",
      "prior_body": "Restructuring activities are programs that are not part of the ongoing operations of our underlying business, such as divestitures, closing and consolidating facilities, changing the way we manufacture or distribute our products, moving manufacturing of a product to another location, changes in production or business process outsourcing or insourcing, employee severance (including rationalizing headcount or other significant changes in personnel) and realigning operations (including realignment of the management structure in response to changing market conditions). Also included within restructuring and employee severance are employee severance costs that are not incurred in connection with a restructuring activity. See Note 3 for additional information regarding our restructuring activities."
    },
    {
      "status": "MODIFIED",
      "current_title": "Receivables and Allowance for Doubtful Accounts",
      "prior_title": "Receivables and Allowance for Doubtful Accounts",
      "similarity_score": 0.769,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Trade receivables are reported at their estimated collectible amounts and presented net of an allowance for doubtful accounts of $233 million and $240 million at June 30, 2024 and 2023, respectively.\"",
        "Removed sentence: \"We review these factors quarterly to determine if any adjustments are needed to the allowance.\"",
        "Removed sentence: \"We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.We provide financing to various customers.\"",
        "Removed sentence: \"Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation.\"",
        "Removed sentence: \"Interest income on these arrangements is recognized as it is earned.\""
      ],
      "current_body": "Trade receivables are reported at their estimated collectible amounts and presented net of an allowance for doubtful accounts of $233 million and $240 million at June 30, 2024 and 2023, respectively. In addition to credit losses, the allowance also includes reserves related to customer disputes and late fees billed to customers, which are recognized within our consolidated statements of earnings/(loss) as reductions of revenue. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We regularly monitor past due accounts and establish appropriate reserves to cover potential losses, and consider historical experience, pricing discrepancies, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We review these factors quarterly to determine if any adjustments are needed to the allowance. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. We provide financing to various customers. Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes, net and related accrued interest were $43 million (current portion $14 million) and $56 million (current portion $9 million) at June 30, 2024 and 2023, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable Cardinal Health | Fiscal 2024 Form 10-K59 Cardinal Health | Fiscal 2024 Form 10-K59 Cardinal Health | Fiscal 2024 Form 10-K59 Cardinal Health | Fiscal 2024 Form 10-K 59",
      "prior_body": "Trade receivables are presented net of an allowance for doubtful accounts of $299 million and $273 million at June 30, 2023 and 2022, respectively. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We regularly monitor past due accounts and establish appropriate reserves to cover potential losses, and consider historical experience, pricing discrepancies, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We review these factors quarterly to determine if any adjustments are needed to the allowance. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.We provide financing to various customers. Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes, net and related accrued interest were $56 million (current portion $9 million) and $63 million (current portion $12 million) at June 30, 2023 and 2022, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable allowance for doubtful accounts were $6 million and $8 million at June 30, 2023 and 2022, respectively. We estimate an allowance for these financing receivables based on historical collection rates and the creditworthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.Concentrations of Credit RiskWe maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments, and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses.Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with certain large customers and with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. With respect to customers in the retail and healthcare sectors, such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform regular credit evaluations of our customers’ financial conditions and maintain reserves for losses through the established allowance for doubtful accounts. Historically, such losses have been within our expectations. Refer to the \"Receivables and Allowance for Doubtful Accounts\" section within this Note for additional information on the accounting treatment of reserves for allowance for doubtful accounts. Major CustomersCVS Health Corporation (\"CVS Health\") and OptumRx, are our only customers that individually account for at least 10 percent of revenue and gross trade receivables. These customers are primarily serviced through our Pharmaceutical segment. discrepancies, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We review these factors quarterly to determine if any adjustments are needed to the allowance. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts. We provide financing to various customers. Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes, net and related accrued interest were $56 million (current portion $9 million) and $63 million (current portion $12 million) at June 30, 2023 and 2022, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable allowance for doubtful accounts were $6 million and $8 million at June 30, 2023 and 2022, respectively. We estimate an allowance for these financing receivables based on historical collection rates and the creditworthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts."
    },
    {
      "status": "MODIFIED",
      "current_title": "11. Financial Instruments",
      "prior_title": "10. Financial Instruments",
      "similarity_score": 0.768,
      "confidence": "high",
      "key_changes": [
        "Added sentence: \"Additionally, we do not require collateral under these agreements.Interest Rate Risk ManagementWe are exposed to the impact of interest rate changes.\"",
        "Added sentence: \"Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings.\"",
        "Added sentence: \"We utilize a mix of debt maturities on our fixed-rate debt to manage changes in interest rates.\"",
        "Added sentence: \"In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs.Currency Exchange Risk ManagementWe conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates.\"",
        "Added sentence: \"Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations.\""
      ],
      "current_body": "We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk but are not designated as hedging instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and only enter into derivative instruments with major financial institutions that are rated investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements.Interest Rate Risk ManagementWe are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities on our fixed-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs.Currency Exchange Risk ManagementWe conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses.Commodity Price Risk ManagementWe are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts when possible to manage the price risk associated with certain forecasted purchases.The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30:(in millions)20242023Assets:Cross-currency swap (1)$12 $23 Foreign currency contracts (1)1 5 Pay-floating interest rate swaps (1)3 — Total assets$16 $28 Liabilities:Cross-currency swap (2)$1 $4 Foreign currency contracts (2)8 4 Pay-floating interest rate swaps (2)94 93 Total liabilities$103 $101 instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and only enter into derivative instruments with major financial institutions that are rated investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements.",
      "prior_body": "We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, currency exchange risk and commodity price risk. We do not use derivative instruments for trading or speculative purposes. While the majority of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk but are not designated as hedging instruments. These derivative instruments are adjusted to current fair value through earnings at the end of each period. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines and only enter into derivative instruments with major financial institutions that are rated investment grade or better. We do not have significant exposure to any one counterparty and we believe the risk of loss is remote. Additionally, we do not require collateral under these agreements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Opioid Lawsuits and Investigations",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.763,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"Cardinal Health, other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain have been named as defendants in lawsuits related to the distribution of opioid pain medications.\"",
        "Reworded sentence: \"In total, as of June 30, 2024, we have $5.4 billion accrued for these matters, of which $643 million is included in other accrued liabilities and the remainder is included in deferred income taxes and other liabilities in our consolidated balance sheets.\"",
        "Reworded sentence: \"We continue to strongly dispute the allegations made in these lawsuits and none of these agreements described below is an admission of liability or wrongdoing.\"",
        "Reworded sentence: \"States & Political SubdivisionsIn 2022, we along with two other national distributors (collectively, the \"Distributors\") entered into the National Opioid Settlement Agreement to settle the vast majority of opioid lawsuits and claims brought by states and political subdivisions.\"",
        "Reworded sentence: \"Over 99 percent of political subdivisions in settling states (by population as calculated under the National Opioid Settlement Agreement) that had brought opioid-related suits against us have chosen to join the National Opioid Settlement Agreement or have had their claims addressed by state legislation (together with settling states and territories, the “Settling Governmental Entities\").In February 2024, we finalized an agreement with the Alabama Attorney General, under which we agreed to pay approximately $123 million to the State of Alabama over a period of ten years to resolve opioid-related claims brought by the State and its political subdivisions (the \"Alabama Settlement\").\""
      ],
      "current_body": "Cardinal Health, other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain have been named as defendants in lawsuits related to the distribution of opioid pain medications. These lawsuits seek equitable relief and monetary damages based on a variety of legal theories, including various common law claims, such as public nuisance, negligence, unjust enrichment, personal injury, as well as violations of controlled substance laws, the Racketeer Influenced and Corrupt Organizations Act and various other statutes. Plaintiffs in these lawsuits include governmental entities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. Additionally, we have received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil requests for information, subpoenas and other requests from other DOJ offices. These investigations concern operation of our anti-diversion program, our anti-diversion policies and procedures and distribution of certain controlled substances. We are cooperating with these investigations. We are unable to predict the outcome of any of these investigations. In total, as of June 30, 2024, we have $5.4 billion accrued for these matters, of which $643 million is included in other accrued liabilities and the remainder is included in deferred income taxes and other liabilities in our consolidated balance sheets. During fiscal 2024, we recognized expense of $340 million in connection with opioid-related matters, including agreements in principle with counsel representing classes of third-party payors and acute care hospitals, the case brought by the City of Baltimore, and a settlement with the State of Alabama. This expense was partially offset by a benefit of $105 million related to prepayments at a prenegotiated discount of certain future payments totaling $344 million. Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. We regularly review these opioid litigation matters to determine whether our accrual is adequate. The amount of ultimate loss may differ materially from this accrual, whether as a result of settlement discussions, a judicial decision or verdict or otherwise, but we are not able to estimate a range of reasonably possible additional losses for these matters. We continue to strongly dispute the allegations made in these lawsuits and none of these agreements described below is an admission of liability or wrongdoing. Please see below for additional description of these matters. States & Political SubdivisionsIn 2022, we along with two other national distributors (collectively, the \"Distributors\") entered into the National Opioid Settlement Agreement to settle the vast majority of opioid lawsuits and claims brought by states and political subdivisions. In addition to the Distributors, parties to the National Opioid Settlement Agreement include 48 states, the District of Columbia and 5 U.S. territories. Over 99 percent of political subdivisions in settling states (by population as calculated under the National Opioid Settlement Agreement) that had brought opioid-related suits against us have chosen to join the National Opioid Settlement Agreement or have had their claims addressed by state legislation (together with settling states and territories, the “Settling Governmental Entities\").In February 2024, we finalized an agreement with the Alabama Attorney General, under which we agreed to pay approximately $123 million to the State of Alabama over a period of ten years to resolve opioid-related claims brought by the State and its political subdivisions (the \"Alabama Settlement\"). During fiscal 2024, we recognized a $22 million charge in litigation (recoveries)/charge, net in the consolidated statements of earnings/(loss) related to this agreement. Including the National Opioid Settlement Agreement, the Alabama Settlement and a prior settlement with the State of West Virginia, we have now resolved opioid-related claims brought by all 50 states and the District of Columbia.Under the National Opioid Settlement Agreement, through July 2024, we have paid the Settling Governmental Entities approximately $1.9 billion which includes the January 2024 prepayment of certain future payment amounts described below. We expect to pay Settling Governmental Entities additional amounts up to $4.4 billion through 2038. The National Opioid Settlement Agreement also includes injunctive relief terms related to distributors’ controlled substance anti-diversion programs. A monitor is overseeing compliance with these provisions until 2027. In addition, the Distributors have engaged a third-party vendor to act as a clearinghouse for data aggregation and reporting, which distributors will fund for 10 years. As a result of the National Opioid Settlement Agreement, the vast majority of lawsuits brought against us by political subdivisions have been dismissed. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits.Other SettlementsWest Virginia subdivisions and Native American tribes were not a part of the National Opioid Settlement Agreement. In July 2022, a judgment in favor of the Distributors was entered in bench trial before a federal judge in West Virginia in a case brought by Cabell County and City of Huntington Plaintiffs have appealed this decision to the Fourth Circuit Court of Appeals. of these agreements described below is an admission of liability or wrongdoing. Please see below for additional description of these matters. States & Political Subdivisions In 2022, we along with two other national distributors (collectively, the \"Distributors\") entered into the National Opioid Settlement Agreement to settle the vast majority of opioid lawsuits and claims brought by states and political subdivisions. In addition to the Distributors, parties to the National Opioid Settlement Agreement include 48 states, the District of Columbia and 5 U.S. territories. Over 99 percent of political subdivisions in settling states (by population as calculated under the National Opioid Settlement Agreement) that had brought opioid-related suits against us have chosen to join the National Opioid Settlement Agreement or have had their claims addressed by state legislation (together with settling states and territories, the “Settling Governmental Entities\"). In February 2024, we finalized an agreement with the Alabama Attorney General, under which we agreed to pay approximately $123 million to the State of Alabama over a period of ten years to resolve opioid-related claims brought by the State and its political subdivisions (the \"Alabama Settlement\"). During fiscal 2024, we recognized a $22 million charge in litigation (recoveries)/charge, net in the consolidated statements of earnings/(loss) related to this agreement. Including the National Opioid Settlement Agreement, the Alabama Settlement and a prior settlement with the State of West Virginia, we have now resolved opioid-related claims brought by all 50 states and the District of Columbia. Under the National Opioid Settlement Agreement, through July 2024, we have paid the Settling Governmental Entities approximately $1.9 billion which includes the January 2024 prepayment of certain future payment amounts described below. We expect to pay Settling Governmental Entities additional amounts up to $4.4 billion through 2038. The National Opioid Settlement Agreement also includes injunctive relief terms related to distributors’ controlled substance anti-diversion programs. A monitor is overseeing compliance with these provisions until 2027. In addition, the Distributors have engaged a third-party vendor to act as a clearinghouse for data aggregation and reporting, which distributors will fund for 10 years. As a result of the National Opioid Settlement Agreement, the vast majority of lawsuits brought against us by political subdivisions have been dismissed. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits. Other Settlements West Virginia subdivisions and Native American tribes were not a part of the National Opioid Settlement Agreement. In July 2022, a judgment in favor of the Distributors was entered in bench trial before a federal judge in West Virginia in a case brought by Cabell County and City of Huntington Plaintiffs have appealed this decision to the Fourth Circuit Court of Appeals. Cardinal Health | Fiscal 2024 Form 10-K73 Cardinal Health | Fiscal 2024 Form 10-K73 Cardinal Health | Fiscal 2024 Form 10-K73 Cardinal Health | Fiscal 2024 Form 10-K 73",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.763,
      "confidence": "high",
      "key_changes": [
        "Removed sentence: \"The following table presents total assets for each reportable segment and Corporate at June 30:(in millions)202320222021Pharmaceutical$28,077 $26,409 $23,624 Medical (1) (2)10,130 11,632 15,408 Corporate5,210 5,837 5,421 Total assets$43,417 $43,878 $44,453 (1)Assets of $1.1 billion related to the Cordis business were included within Medical at June 30, 2021.\"",
        "Removed sentence: \"We sold the Cordis business during fiscal 2022.(2)Medical reflects $1.2 billion and $2.1 billion cumulative pre-tax goodwill impairment charges recorded in connection with the goodwill impairment testing for the Medical Unit during fiscal 2023 and 2022, respectively.\"",
        "Removed sentence: \"The following table presents property and equipment, net by geographic area:(in millions)202320222021United States$2,026 $1,976 $1,958 International436 385 402 Property and equipment, net$2,462 $2,361 $2,360 14.\"",
        "Reworded sentence: \"At June 30, 2024, 18 million shares remain available for future grants under the Cardinal Health, Inc.\"",
        "Reworded sentence: \"This means that only 7 million shares could be issued under awards other than stock options while 18 million shares could be issued under stock options.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "7. Long-Term Obligations and Other Short-Term Borrowings",
      "prior_title": "6. Long-Term Obligations and Other Short-Term Borrowings",
      "similarity_score": 0.76,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"The following table summarizes long-term obligations and other short-term borrowings at June 30: (in millions) (1)202420233.079% Notes due 2024$— $764 3.5% Notes due 2024401 404 3.75% Notes due 2025507 513 3.41% Notes due 20271,191 1,184 5.125% Notes due 2029644 — 5.45% Notes due 2034491 — 4.6% Notes due 2043308 306 4.5% Notes due 2044330 331 4.9% Notes due 2045423 428 4.368% Notes due 2047563 561 7.0% Debentures due 2026124 124 Other Obligations110 86 Total5,092 4,701 Less: current portion of long-term obligations and other short-term borrowings434 792 Long-term obligations, less current portion$4,658 $3,909 (1) Maturities are presented on a calendar year basis.\""
      ],
      "current_body": "The following table summarizes long-term obligations and other short-term borrowings at June 30: (in millions) (1)202420233.079% Notes due 2024$— $764 3.5% Notes due 2024401 404 3.75% Notes due 2025507 513 3.41% Notes due 20271,191 1,184 5.125% Notes due 2029644 — 5.45% Notes due 2034491 — 4.6% Notes due 2043308 306 4.5% Notes due 2044330 331 4.9% Notes due 2045423 428 4.368% Notes due 2047563 561 7.0% Debentures due 2026124 124 Other Obligations110 86 Total5,092 4,701 Less: current portion of long-term obligations and other short-term borrowings434 792 Long-term obligations, less current portion$4,658 $3,909 (1) Maturities are presented on a calendar year basis. Maturities of existing long-term obligations and other short-term borrowings for fiscal 2025 through 2029 and thereafter are as 70Cardinal Health | Fiscal 2024 Form 10-K 70Cardinal Health | Fiscal 2024 Form 10-K 70Cardinal Health | Fiscal 2024 Form 10-K 70 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "The following table summarizes long-term obligations and other short-term borrowings at June 30: (in millions) (1)202320223.2% Notes due 2023$— $556 3.079% Notes due 2024764 779 3.5% Notes due 2024404 407 3.75% Notes due 2025513 518 3.41% Notes due 20271,184 1,193 4.6% Notes due 2043306 321 4.5% Notes due 2044331 342 4.9% Notes due 2045428 441 4.368% Notes due 2047561 560 7.0% Debentures due 2026124 124 Other Obligations86 74 Total4,701 5,315 Less: current portion of long-term obligations and other short-term borrowings792 580 Long-term obligations, less current portion$3,909 $4,735 (1) Maturities are presented on a calendar year basis. Maturities of existing long-term obligations and other short-term borrowings for fiscal 2024 through 2028 and thereafter are as follows: $792 million, $428 million, $530 million, $1.3 billion, $6 million and $1.6 billion. 66Cardinal Health | Fiscal 2023 Form 10-K 66Cardinal Health | Fiscal 2023 Form 10-K 66Cardinal Health | Fiscal 2023 Form 10-K 66 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Inventories",
      "prior_title": "Inventories",
      "similarity_score": 0.751,
      "confidence": "high",
      "key_changes": [
        "Reworded sentence: \"A portion of our inventories (50 percent and 54 percent at June 30, 2024 and 2023, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market.\"",
        "Reworded sentence: \"At June 30, 2024 and 2023, respectively, inventories valued at LIFO cost were $749 million and $476 million higher than the average cost value.\"",
        "Reworded sentence: \"As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2024 or 2023.\"",
        "Reworded sentence: \"We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies.\""
      ],
      "current_body": "A portion of our inventories (50 percent and 54 percent at June 30, 2024 and 2023, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical and Specialty Solutions segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation. At June 30, 2024 and 2023, respectively, inventories valued at LIFO cost were $749 million and $476 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2024 or 2023. Our remaining inventory, including inventory in our GMPD segment and certain inventory in our Pharmaceutical and Specialty Solutions segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $149 million and $139 million at June 30, 2024 and 2023, respectively.",
      "prior_body": "A portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation. At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively."
    },
    {
      "status": "MODIFIED",
      "current_title": "Earnings/(Loss) before Income Taxes and Provision for/(Benefit From) Income Taxes",
      "prior_title": "Earnings/(Loss) before Income Taxes and Provision for/(Benefit From) Income Taxes",
      "similarity_score": 0.747,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following table summarizes earnings/(loss) before income taxes: (in millions)202420232022U.S.\""
      ],
      "current_body": "The following table summarizes earnings/(loss) before income taxes: (in millions)202420232022U.S. operations$892 $316 $(1,015)Non-U.S. operations309 347 231 Earnings/(loss) before income taxes$1,201 $663 $(784) The following table summarizes the components of provision for/(benefit from) income taxes: (in millions)202420232022Current:Federal$305 $219 $16 State and local68 69 30 Non-U.S.79 84 93 Total current$452 $372 $139 Deferred:Federal$(89)$(23)$42 State and local12 11 (27)Non-U.S.(27)(28)(1)Total deferred$(104)$(40)$14 Provision for/(benefit from) income taxes$348 $332 $153",
      "prior_body": "The following table summarizes earnings/(loss) before income taxes: (in millions)202320222021U.S. operations$291 $(1,000)$(47)Non-U.S. operations347 231 370 Earnings/(loss) before income taxes$638 $(769)$323 The following table summarizes the components of provision for/(benefit from) income taxes: (in millions)202320222021Current:Federal$254 $34 $(989)State and local69 29 92 Non-U.S.84 93 112 Total current$407 $156 $(785)Deferred:Federal$(8)$30 $539 State and local13 (22)(28)Non-U.S.(36)(1)(15)Total deferred$(31)$7 $496 Provision for/(benefit from) income taxes$376 $163 $(289)"
    },
    {
      "status": "MODIFIED",
      "current_title": "12. Shareholders' Equity/(Deficit)",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.744,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"At June 30, 2024 and 2023, authorized capital shares consisted of the following: 750 million Class A common shares, without par value; 5 million Class B common shares, without par value; and 500 thousand non-voting preferred shares, without par value.\"",
        "Reworded sentence: \"Only Class A common shares were outstanding at June 30, 2024 and 2023.\"",
        "Reworded sentence: \"Accumulated Other Comprehensive LossThe following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total:(in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2022$(102)$(12)$(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023(137)(14)(151)Other comprehensive loss, before reclassifications(1)(7)(8)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million(1)(15)(16)Balance at June 30, 2024$(138)$(29)$(167)13.\""
      ],
      "current_body": "At June 30, 2024 and 2023, authorized capital shares consisted of the following: 750 million Class A common shares, without par value; 5 million Class B common shares, without par value; and 500 thousand non-voting preferred shares, without par value. The Class A common shares and Class B common shares are collectively referred to below as “common shares.” Holders of common shares are entitled to share equally in any dividends declared by the Board of Directors and to participate equally in all distributions of assets upon liquidation. Generally, the holders of Class A common shares are entitled to one vote per share, and the holders of Class B common shares are entitled to one-fifth of one vote per share on proposals presented to shareholders for vote. Under certain circumstances, the holders of Class B common shares are entitled to vote as a separate class. Only Class A common shares were outstanding at June 30, 2024 and 2023. We repurchased $3.8 billion of our common shares, in the aggregate, through share repurchase programs during fiscal 2024, 2023 and 2022, as described below. We funded the repurchases with available cash. The common shares repurchased are held in treasury to be used for general corporate purposes. During fiscal 2024, we repurchased 9.0 million common shares having an aggregate cost of $759 million. We repurchased 0.9 million, 5.7 million and 2.4 million common shares under multiple accelerated share repurchase (\"ASR\") programs with average prices paid per common share of $91.15, $88.22 and $103.67, respectively. These repurchases began on August 16, 2023 and concluded on December 13, 2023. During fiscal 2023, we repurchased 24.6 million common shares having an aggregate cost of $2.0 billion. We repurchased 13.6 million, 3.2 million, 3.2 million and 4.6 million common shares under multiple ASR programs with average prices paid per common share of $73.36, $77.50, $77.27 and $87.18, respectively. These repurchases began on September 14, 2022 and concluded on August 16, 2023. During fiscal 2022, we repurchased 19.5 million common shares having an aggregate cost of $1.0 billion. We repurchased 9.8 million, 6.1 million and 3.6 million common shares under multiple ASR programs with average prices paid per common share of $51.10, $49.39 and $56.02, respectively. These repurchases began on August 18, 2021 and concluded on April 18, 2022. Accumulated Other Comprehensive LossThe following table summarizes the changes in the balance of accumulated other comprehensive loss by component and in total:(in millions)ForeignCurrencyTranslationAdjustments and OtherUnrealizedGain/(Loss) onDerivatives,net of taxAccumulated OtherComprehensiveLossBalance at June 30, 2022$(102)$(12)$(114)Other comprehensive loss, before reclassifications(35)12 (23)Amounts reclassified to earnings— (14)(14)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax benefit of $2 million(35)(2)(37)Balance at June 30, 2023(137)(14)(151)Other comprehensive loss, before reclassifications(1)(7)(8)Amounts reclassified to earnings— (8)(8)Total other comprehensive loss attributable to Cardinal Health, Inc., net of tax expense of $5 million(1)(15)(16)Balance at June 30, 2024$(138)$(29)$(167)13. Earnings/(Loss) Per Share Attributable to Cardinal Health, Inc. The following table reconciles the computation of basic and diluted earnings per share attributable to Cardinal Health, Inc.:(in millions, except per share amounts)202420232022Net earnings/(loss)$853 $331 $(937)Net earnings attributable to noncontrolling interest(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc.$852 $330 $(938)Weighted-average common shares–basic245 261 279 Effect of dilutive securities:Employee stock options, restricted share units and performance share units2 1 — Weighted-average common shares–diluted247 262 279 Basic earnings/(loss) per common share attributable to Cardinal Health, Inc.:$3.48 $1.27 $(3.37)Diluted earnings/(loss) per common share attributable to Cardinal Health, Inc.:3.45 1.26 (3.37)The potentially dilutive employee stock options, restricted share units and performance share units that were anti-dilutive for fiscal 2024, 2023 and 2022 were 1 million, 2 million and 5 million, respectively. During fiscal 2022, there were 1 million potentially dilutive employee stock options, restricted share units and performance share units, not included in the computation of diluted loss per common share attributable to Cardinal Health, Inc. because their effect would be anti-dilutive as a result of the net loss for the fiscal year.",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Performance Share Units",
      "prior_title": "Performance Share Units",
      "similarity_score": 0.739,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Based on the extent to which the performance goals are achieved and the Company's TSR relative to the S&P 500 Health Care Index, vested shares may range from zero to 240 percent of the target award amount.\"",
        "Reworded sentence: \"The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts)PerformanceShare UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20221.2 $54.32 Granted0.7 78.07 Vested(0.4)59.04 Canceled and forfeited(0.3)65.52 Nonvested at June 30, 20231.2 82.17 Granted0.5 94.66 Vested(0.4)62.26 Canceled and forfeited— — Nonvested at June 30, 20241.3 $97.03 The following table provides additional data related to performance share unit activity: (in millions)202420232022Total compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized, pre-tax$46 $38 $17 Weighted-average period over which performance share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$20 $23 $14\""
      ],
      "current_body": "Performance share units generally vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the performance goals are achieved and the Company's TSR relative to the S&P 500 Health Care Index, vested shares may range from zero to 240 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts)PerformanceShare UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20221.2 $54.32 Granted0.7 78.07 Vested(0.4)59.04 Canceled and forfeited(0.3)65.52 Nonvested at June 30, 20231.2 82.17 Granted0.5 94.66 Vested(0.4)62.26 Canceled and forfeited— — Nonvested at June 30, 20241.3 $97.03 The following table provides additional data related to performance share unit activity: (in millions)202420232022Total compensation cost, net of estimated forfeitures, related to nonvested performance share units not yet recognized, pre-tax$46 $38 $17 Weighted-average period over which performance share unit cost is expected to be recognized (in years)222Total fair value of shares vested during the year$20 $23 $14",
      "prior_body": "Performance share units generally vest over a three-year performance period based on achievement of specific performance goals. Based on the extent to which the targets are achieved, vested shares may range from zero to 234 percent of the target award amount. Performance share units accrue cash dividend equivalents that are payable upon vesting of the awards. The following table summarizes all transactions related to performance share units under the Plans (based on target award amounts): (in millions, except per share amounts)PerformanceShare UnitsWeighted-AverageGrant Date FairValue per ShareNonvested at June 30, 20211.2 $54.89 Granted0.4 51.91 Vested(0.3)52.36 Canceled and forfeited(0.1)52.66 Nonvested at June 30, 20221.2 54.32 Granted0.7 78.07 Vested(0.4)59.04 Canceled and forfeited(0.3)65.52 Nonvested at June 30, 20231.2 $82.17 Cardinal Health | Fiscal 2023 Form 10-K79 Cardinal Health | Fiscal 2023 Form 10-K79 Cardinal Health | Fiscal 2023 Form 10-K79 Cardinal Health | Fiscal 2023 Form 10-K 79"
    },
    {
      "status": "MODIFIED",
      "current_title": "Other Tax Matters",
      "prior_title": "Other Tax Matters",
      "similarity_score": 0.738,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"76Cardinal Health | Fiscal 2024 Form 10-K 76Cardinal Health | Fiscal 2024 Form 10-K 76Cardinal Health | Fiscal 2024 Form 10-K 76 Cardinal Health | Fiscal 2024 Form 10-K\""
      ],
      "current_body": "We file income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions and various foreign jurisdictions. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year. Expiring or unusable loss and credit carryforwards and the required valuation allowances are adjusted quarterly based on available information. This information may support either an increase or a decrease in the required valuation allowance. After applying the valuation allowances, we do not anticipate any limitations on our use of any of the other net deferred income tax assets described above. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. 76Cardinal Health | Fiscal 2024 Form 10-K 76Cardinal Health | Fiscal 2024 Form 10-K 76Cardinal Health | Fiscal 2024 Form 10-K 76 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "We file income tax returns in the U.S. federal jurisdiction, various U.S. state and local jurisdictions and various foreign jurisdictions. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year. Expiring or unusable loss and credit carryforwards and the required valuation allowances are adjusted quarterly based on available information. This information may support either an increase or a decrease in the required valuation allowance. After applying the valuation allowances, we do not anticipate any limitations on our use of any of the other net deferred income tax assets described above. We operate in a complex multinational tax environment and are subject to tax treaty arrangements and transfer pricing guidelines for intercompany transactions that are subject to interpretation. Uncertainty in a tax position may arise as tax laws are subject to interpretation. We are a party to a tax matters agreement with CareFusion Corporation (\"CareFusion\"), a subsidiary of Becton, Dickinson and Company. Under the tax matters agreement, CareFusion is obligated to indemnify us for certain tax exposures and transaction taxes prior to our fiscal 2010 spin-off of CareFusion. The indemnification receivable was $82 million and $75 million at June 30, 2023 and 2022, respectively, and is included in other assets in the consolidated balance sheets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Other Intangible Assets",
      "prior_title": "Other Intangible Assets",
      "similarity_score": 0.732,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following tables summarize other intangible assets by class at June 30: 2024(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleWeighted- Average Remaining Amortization Period (Years)Indefinite-life intangibles:Trademarks and patents$12 $— $12 N/ATotal indefinite-life intangibles12 — 12 N/ADefinite-life intangibles:Customer relationships3,628 2,431 1,197 11Trademarks, trade names and patents561 408 153 7Developed technology and other1,047 684 363 7Total definite-life intangibles5,236 3,523 1,713 10Total other intangible assets$5,248 $3,523 $1,725 N/A 2023(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleIndefinite-life intangibles:Trademarks and patents$11 $— $11 Total indefinite-life intangibles11 — 11 Definite-life intangibles:Customer relationships3,174 2,274 900 Trademarks, trade names and patents546 380 166 Developed technology and other1,021 626 395 Total definite-life intangibles4,741 3,280 1,461 Total other intangible assets$4,752 $3,280 $1,472 The increase in definite-life intangibles is due to the Specialty Networks acquisition.\""
      ],
      "current_body": "The following tables summarize other intangible assets by class at June 30: 2024(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleWeighted- Average Remaining Amortization Period (Years)Indefinite-life intangibles:Trademarks and patents$12 $— $12 N/ATotal indefinite-life intangibles12 — 12 N/ADefinite-life intangibles:Customer relationships3,628 2,431 1,197 11Trademarks, trade names and patents561 408 153 7Developed technology and other1,047 684 363 7Total definite-life intangibles5,236 3,523 1,713 10Total other intangible assets$5,248 $3,523 $1,725 N/A 2023(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleIndefinite-life intangibles:Trademarks and patents$11 $— $11 Total indefinite-life intangibles11 — 11 Definite-life intangibles:Customer relationships3,174 2,274 900 Trademarks, trade names and patents546 380 166 Developed technology and other1,021 626 395 Total definite-life intangibles4,741 3,280 1,461 Total other intangible assets$4,752 $3,280 $1,472 The increase in definite-life intangibles is due to the Specialty Networks acquisition. Total amortization of intangible assets was $264 million, $281 million and $311 million for fiscal 2024, 2023 and 2022, respectively. The estimated annual amortization for intangible assets for fiscal 2025 through 2029 is as follows: $255 million, $244 million, $217 million, $190 million and $186 million. Cardinal Health | Fiscal 2024 Form 10-K69 Cardinal Health | Fiscal 2024 Form 10-K69 Cardinal Health | Fiscal 2024 Form 10-K69 Cardinal Health | Fiscal 2024 Form 10-K 69",
      "prior_body": "The following tables summarize other intangible assets by class at June 30: 2023(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleWeighted- Average Remaining Amortization Period (Years)Indefinite-life intangibles:Trademarks and patents$11 $11 N/ATotal indefinite-life intangibles11 11 N/ADefinite-life intangibles:Customer relationships3,174 2,274 900 9Trademarks, trade names and patents546 380 166 8Developed technology and other1,021 626 395 8Total definite-life intangibles4,741 3,280 1,461 9Total other intangible assets$4,752 $3,280 $1,472 N/A 2022(in millions)GrossIntangibleAccumulatedAmortizationNetIntangibleIndefinite-life intangibles:Trademarks and patents$11 $11 Total indefinite-life intangibles11 11 Definite-life intangibles:Customer relationships3,272 2,165 1,107 Trademarks, trade names and patents552 360 192 Developed technology and other1,038 574 464 Total definite-life intangibles4,862 3,099 1,763 Total other intangible assets$4,873 $3,099 $1,774 Total amortization of intangible assets was $281 million, $311 million and $428 million for fiscal 2023, 2022 and 2021, respectively. The estimated annual amortization for intangible assets for fiscal 2024 through 2028 is as follows: $255 million, $231 million, $205 million, $173 million and $146 million. Cardinal Health | Fiscal 2023 Form 10-K65 Cardinal Health | Fiscal 2023 Form 10-K65 Cardinal Health | Fiscal 2023 Form 10-K65 Cardinal Health | Fiscal 2023 Form 10-K 65"
    },
    {
      "status": "MODIFIED",
      "current_title": "Commodity Price Risk Management",
      "prior_title": "Commodity Price Risk Management",
      "similarity_score": 0.725,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30: (in millions)20242023Assets:Cross-currency swap (1)$12 $23 Foreign currency contracts (1)1 5 Pay-floating interest rate swaps (1)3 — Total assets$16 $28 Liabilities:Cross-currency swap (2)$1 $4 Foreign currency contracts (2)8 4 Pay-floating interest rate swaps (2)94 93 Total liabilities$103 $101 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K 77\""
      ],
      "current_body": "We are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts when possible to manage the price risk associated with certain forecasted purchases. The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30: (in millions)20242023Assets:Cross-currency swap (1)$12 $23 Foreign currency contracts (1)1 5 Pay-floating interest rate swaps (1)3 — Total assets$16 $28 Liabilities:Cross-currency swap (2)$1 $4 Foreign currency contracts (2)8 4 Pay-floating interest rate swaps (2)94 93 Total liabilities$103 $101 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K77 Cardinal Health | Fiscal 2024 Form 10-K 77",
      "prior_body": "We are exposed to changes in the price of certain commodities. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts when possible to manage the price risk associated with certain forecasted purchases. The following table summarizes the fair value of our assets and liabilities related to derivatives designated as hedging instruments and the respective line items in which they were recorded in the consolidated balance sheets at June 30: (in millions)20232022Assets:Cross-currency swap (1) $— $25 Cross-currency swap (2)23 29 Foreign currency contracts (2)5 7 Total assets$28 $61 Liabilities:Cross-currency swap (3)$4 $— Foreign currency contracts (3)4 3 Pay-floating interest rate swaps (3)93 43 Total liabilities$101 $46 (1) Included in other assets in the consolidated balance sheets. (2) Included in prepaid expenses and other in the consolidated balance sheets. (3) Included in other accrued liabilities in the consolidated balance sheets."
    },
    {
      "status": "MODIFIED",
      "current_title": "Cash Flow Hedges",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.721,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions.\""
      ],
      "current_body": "We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate, foreign currency and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. Losses currently included within accumulated other comprehensive loss associated with our cash flow hedges to be reclassified into net earnings within the next 12 months are $6 million.We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses. At June 30, 2024 and 2023, we held contracts to hedge probable, but not firmly committed, revenue and expenses. The principal currencies hedged are the Canadian dollar, Mexican peso, Chinese renminbi, Thai baht and euro.We enter into commodity contracts to manage the price risk associated with forecasted purchases of certain commodities used in our GMPD segment.The following tables summarize the outstanding cash flow hedges at June 30: 2024(in millions)Notional AmountMaturity DateForeign currency contracts$401 Jul 2024-Jun 2025 2023(in millions)Notional AmountMaturity DateForeign currency contracts$376 Jul 2023-Jun 2024The following table summarizes the pre-tax gain/(loss) included in OCI for derivative instruments designated as cash flow hedges:(in millions)202420232022Foreign currency contracts$(7)$(2)$3 The following table summarizes the pre-tax gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges:(in millions)202420232022Foreign currency contracts (1)$1 $9 $5 Foreign currency contracts (2)4 2 1 Foreign currency contracts (3)— 1 — Forward interest rate swaps (4)2 2 2 (1) Included in revenue in the consolidated statements of earnings/(loss).(2) Included in cost of products sold in the consolidated statements of earnings/(loss).(3) Included in SG&A expenses in the consolidated statements of earnings/(loss).(4) Included in interest expense, net in the consolidated statements of earnings/(loss).Net Investment HedgesWe hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries. To accomplish this, we enter into cross-currency swaps that are designated as hedges of net investments.In June 2024, we terminated the ¥18 billion ($120 million) cross-currency swaps with a maturity date of June 2027 entered into in September 2023, and received net settlements in cash of $6 million, which was recorded in proceeds from net investment hedge terminations in our consolidated statements of cash flows. reclassified into net earnings within the next 12 months are $6 million. We enter into foreign currency contracts to protect the value of anticipated foreign currency revenues and expenses. At June 30, 2024 and 2023, we held contracts to hedge probable, but not firmly committed, revenue and expenses. The principal currencies hedged are the Canadian dollar, Mexican peso, Chinese renminbi, Thai baht and euro. We enter into commodity contracts to manage the price risk associated with forecasted purchases of certain commodities used in our GMPD segment. The following tables summarize the outstanding cash flow hedges at June 30: 2024(in millions)Notional AmountMaturity DateForeign currency contracts$401 Jul 2024-Jun 2025 2023(in millions)Notional AmountMaturity DateForeign currency contracts$376 Jul 2023-Jun 2024 Jul 2023 Jun 2024 The following table summarizes the pre-tax gain/(loss) included in OCI for derivative instruments designated as cash flow hedges: (in millions)202420232022Foreign currency contracts$(7)$(2)$3 The following table summarizes the pre-tax gain/(loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges: (in millions)202420232022Foreign currency contracts (1)$1 $9 $5 Foreign currency contracts (2)4 2 1 Foreign currency contracts (3)— 1 — Forward interest rate swaps (4)2 2 2 (1) Included in revenue in the consolidated statements of earnings/(loss). (2) Included in cost of products sold in the consolidated statements of earnings/(loss). (3) Included in SG&A expenses in the consolidated statements of earnings/(loss). SG&A expenses SG&A expenses SG&A expenses (4) Included in interest expense, net in the consolidated statements of earnings/(loss). interest expense, net interest expense, net interest expense, net",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "4. Restructuring and Employee Severance",
      "prior_title": "3. Restructuring and Employee Severance",
      "similarity_score": 0.721,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following table summarizes restructuring and employee severance costs: (in millions)202420232022Employee-related costs $95 $39 $35 Facility exit and other costs 80 56 66 Total restructuring and employee severance$175 $95 $101 Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods.\"",
        "Reworded sentence: \"Restructuring and employee severance costs in fiscal 2024, 2023 and 2022 include costs related to the implementation of certain enterprise-wide cost-savings measures, which include certain initiatives to rationalize our manufacturing operations.\""
      ],
      "current_body": "The following table summarizes restructuring and employee severance costs: (in millions)202420232022Employee-related costs $95 $39 $35 Facility exit and other costs 80 56 66 Total restructuring and employee severance$175 $95 $101 Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. Facility exit and other costs primarily consist of project consulting fees, accelerated depreciation, professional, project management and other service fees to support divestitures, costs associated with vacant facilities and certain other divestiture-related costs. Restructuring and employee severance costs in fiscal 2024, 2023 and 2022 include costs related to the implementation of certain enterprise-wide cost-savings measures, which include certain initiatives to rationalize our manufacturing operations. The increase in fiscal 2024 restructuring and employee severance are primarily due to estimated severance costs related to these cost-savings measures and costs related to certain projects resulting from the reviews of our strategy, portfolio, capital-allocation framework and operations. During fiscal 2023 and 2022, restructuring and employee severance included costs related to the divestiture of the Cordis business. During fiscal 2022, restructuring also included facility-exit costs related to decreasing our overall office space. The following table summarizes activity related to liabilities associated with restructuring and employee severance:(in millions)Employee-Related CostsFacility Exitand Other CostsTotalBalance at June 30, 2022$56 $10 $66 Additions35 8 43 Payments and other adjustments(47)(16)(63)Balance at June 30, 202344 2 46 Additions74 13 87 Payments and other adjustments(26)(10)(36)Balance at June 30, 2024$92 $5 $97 5. Goodwill and Other Intangible Assets GoodwillThe following table summarizes the changes in the carrying amount of goodwill for the two reportable segments and the remaining operating segments, included in Other and in total:(in millions)Pharmaceutical and Specialty SolutionsGlobal Medical Products and Distribution (1)Other (2) (3) (4)Total Balance at June 30, 2022 (5)$2,787 $1,899 $1,170 $5,856 Goodwill acquired, net of purchase price adjustments— 15 — 15 Foreign currency translation adjustments and other(1)(6)— (7)Goodwill Impairment— (1,227)— (1,227)Outcomes goodwill reclassified to assets held for sale(24)— — (24)Balance at June 30, 2023$2,762 $681 $1,170 $4,613 Goodwill acquired, net of purchase price adjustments793 (3)— 790 Foreign currency translation adjustments and other— (3)— (3)Goodwill Impairment— (675)— (675)Balance at June 30, 2024$3,555 $— $1,170 $4,725 (1) Prior-period goodwill impairment charges related to the former Medical segment were allocated to the GMPD segment. At June 30, 2024 and 2023, the GMPD segment accumulated goodwill impairment loss was $5.4 billion and $4.7 billion, respectively. (2) Comprised of the remaining operating segments, Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics.(3) At June 30, 2024 and 2023, Other accumulated goodwill impairment loss was $829 million which was related to Nuclear and Precision Health Solutions.(4) Reflects $48 million allocated to OptiFreight® Logistics. The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions)Employee-Related CostsFacility Exitand Other CostsTotalBalance at June 30, 2022$56 $10 $66 Additions35 8 43 Payments and other adjustments(47)(16)(63)Balance at June 30, 202344 2 46 Additions74 13 87 Payments and other adjustments(26)(10)(36)Balance at June 30, 2024$92 $5 $97",
      "prior_body": "The following table summarizes restructuring and employee severance costs: (in millions)202320222021Employee-related costs $39 $35 $53 Facility exit and other costs 56 66 61 Total restructuring and employee severance$95 $101 $114 Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated, duplicate payroll costs and retention bonuses incurred during transition periods. Facility exit and other costs primarily consist of project consulting fees, accelerated depreciation, professional, project management and other service fees to support divestitures, costs associated with vacant facilities and certain other divestiture-related costs. In fiscal 2023, 2022 and 2021, restructuring costs were primarily related to the implementation of certain enterprise-wide cost-savings measures and the divestiture of the Cordis business. During fiscal 2023, we also incurred restructuring costs related to certain projects resulting from reviews of our strategy, portfolio, capital-allocation framework and operations. During fiscal 2022, restructuring also included costs related to decreasing our overall office space. The following table summarizes activity related to liabilities associated with restructuring and employee severance: (in millions)Employee-Related CostsFacility Exitand Other CostsTotalBalance at June 30, 2021$53 $26 $79 Additions49 10 59 Payments and other adjustments(46)(26)(72)Balance at June 30, 202256 10 66 Additions35 8 43 Payments and other adjustments(47)(16)(63)Balance at June 30, 2023$44 $2 $46 4. Goodwill and Other Intangible Assets GoodwillThe following table summarizes the changes in the carrying amount of goodwill by segment and in total:(in millions)Pharmaceutical (1)Medical (2)Total Balance at June 30, 2021$2,659 $5,330 $7,989 Goodwill acquired, net of purchase price adjustments14 — 14 Foreign currency translation adjustments and other— (64)(64)Goodwill impairment— (2,084)(2,084)Balance at June 30, 20222,673 3,182 5,855 Goodwill acquired, net of purchase price adjustments— 15 15 Foreign currency translation adjustments and other— (6)(6)Goodwill impairment— (1,231)(1,231)Outcomes goodwill reclassified to assets held for sale(24)— (24)Balance at June 30, 2023$2,649 $1,960 $4,609 (1) At June 30, 2023 and 2022, the Pharmaceutical segment accumulated goodwill impairment loss was $829 million.(2) At June 30, 2023 and 2022, the Medical segment accumulated goodwill impairment loss was $4.7 billion and $3.5 billion, respectively. Due to changes in our long-term financial plan assumptions made during fiscal 2023, including those related to Cardinal Health branded medical products sales growth and net inflationary impacts, we elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing for the Medical Unit at June 30, 2023. This quantitative testing resulted in the carrying amount of the Medical Unit exceeding the fair value, resulting in a pre-tax impairment charge of $368 million and cumulative pre-tax impairment charges of $1.2 billion in fiscal 2023, due to the impairment charges recognized during the second and first quarters of fiscal 2023 as described further below. This impairment charge was primarily driven by the impact of the reductions in our long-term financial plan assumptions. The impairment charges were included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss).We performed interim quantitative goodwill impairment testing for the Medical Unit at December 31, 2022 and September 30, 2022, which resulted in pre-tax impairment charges of $709 million and (in millions)Employee-Related CostsFacility Exitand Other CostsTotalBalance at June 30, 2021$53 $26 $79 Additions49 10 59 Payments and other adjustments(46)(26)(72)Balance at June 30, 202256 10 66 Additions35 8 43 Payments and other adjustments(47)(16)(63)Balance at June 30, 2023$44 $2 $46"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Our sales and credit concentration is significant.",
      "similarity_score": 0.718,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"units, intangibles and other long-lived assets.\"",
        "Reworded sentence: \"When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies, which could impact the achievement of our strategic objectives.\"",
        "Reworded sentence: \"For example, during fiscal 2022, our former Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "CVS Health and OptumRx are large customers that generate a significant amount of our revenue. CVS Health accounted for 25 percent of our fiscal 2023 revenue and 23 percent of our gross trade receivable balance at June 30, 2023 and OptumRx accounted for 16 percent of our fiscal 2023 revenue. Our agreement with OptumRx extends through June 2024. If either of these customers significantly reduces their purchases from us, defaults in payment to us, does not renew their agreements or terminates their agreements, whether due to an alleged default by us or otherwise, our results of operations and financial condition could be adversely affected.Our results of operations could be adversely impacted if we fail to manage and complete divestitures.We regularly evaluate our portfolio of businesses to determine whether an asset or business may no longer help us meet our objectives or whether there may be a more advantaged owner for that business. For example, in July 2023, we contributed our Outcomes™ business to Transaction Data Systems in exchange for a minority stake in the combined entity, and in fiscal year 2022, we completed the divestiture of the Cordis business. When we decide to sell assets or a business, we may encounter difficulty finding buyers or alternative exit strategies, which could delay the achievement of our strategic objectives. We could also incur higher costs or charges than planned or incur unexpected charges and could experience greater dis-synergies than expected, which could have a negative impact on our results of operations.Our ability to manage and complete acquisitions could impact our strategic objectives and financial condition.From time to time, we look to acquire other businesses that expand or complement our existing businesses. Completion of acquisitions and the integration of acquired businesses involve a number of risks, including the following: we may overpay for a business or fail to realize the synergies and other benefits we expect from the acquisition; our management’s attention may be diverted to integration efforts; we may fail to retain key personnel of the acquired business; future developments may impair the value of our purchased goodwill or intangible assets; we may face difficulties or delays establishing, integrating or combining operations and systems, including manufacturing facilities; we may assume liabilities related to legal proceedings involving the acquired business; we may face challenges retaining the customers of the acquired business; or we may encounter unforeseen internal control, regulatory or compliance issues.Failure to effectively or efficiently complete or manage critical business processes could have unforeseen consequences. From time to time, our businesses perform business process improvements or infrastructure modernizations or use service providers for key systems and processes, such as receiving and processing customer orders, customer service and accounts payable. For example, during fiscal 2022, our Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider. If any of these initiatives or similar initiatives are not successfully or efficiently implemented or maintained, or if our relationship with critical third-party service providers deteriorates, we could experience material negative impacts on our business and our internal control over financial reporting. trade receivable balance at June 30, 2023 and OptumRx accounted for 16 percent of our fiscal 2023 revenue. Our agreement with OptumRx extends through June 2024. If either of these customers significantly reduces their purchases from us, defaults in payment to us, does not renew their agreements or terminates their agreements, whether due to an alleged default by us or otherwise, our results of operations and financial condition could be adversely affected."
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Statements of Cash Flows",
      "prior_title": "Consolidated Statements of Cash Flows",
      "similarity_score": 0.714,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"(in millions)202420232022Cash flows from operating activities:Net earnings/(loss)$853 $331 $(937)Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:Depreciation and amortization710 692 692 Impairments and loss on sale of other investments2 7 24 Impairments and (gain)/loss on disposal of assets, net634 1,246 2,060 Gain on sale of equity interest in naviHealth— — (2)Loss on early extinguishment of debt— — 10 Share-based compensation121 96 81 Provision for/(benefit from) deferred income taxes(104)(40)14 Provision for bad debts36 55 23 Change in operating assets and liabilities, net of effects from acquisitions and divestitures:Increase in trade receivables(996)(950)(1,405)(Increase)/decrease in inventories1,115 (412)(1,204)Increase in accounts payable1,824 2,816 3,555 Other accrued liabilities and operating items, net(433)(997)264 Net cash provided by operating activities3,762 2,844 3,175 Cash flows from investing activities:Acquisition of subsidiaries, net of cash acquired(1,190)(10)(22)Proceeds from divestitures, net of cash sold9 — 923 Additions to property and equipment(511)(481)(387)Proceeds from disposal of property and equipment12 12 31 Purchase of investments(4)(7)(78)Proceeds from investments1 3 29 Proceeds from net investment hedge terminations34 29 71 Purchase of short-term investment in time deposit(550)— — Proceeds from short-term investment in time deposit350 — — Net cash provided by/(used in) investing activities (1,849)(454)567 Cash flows from financing activities:Proceeds from long-term obligations, net of issuance costs1,139 — — Purchase of noncontrolling interests— (3)— Reduction of long-term obligations(783)(579)(885)Net tax proceeds/(withholding) from share-based compensation46 56 (19)Dividends on common shares(499)(525)(559)Purchase of treasury shares(750)(2,000)(1,000)Net cash used in financing activities(847)(3,051)(2,463)Effect of exchange rates changes on cash and equivalents(9)(8)(25)Cash reclassified from/(to) assets held for sale— — 109 Net increase/(decrease) in cash and equivalents1,057 (669)1,363 Cash and equivalents at beginning of period4,076 4,745 3,382 Cash and equivalents at end of period$5,133 $4,076 $4,745 Supplemental Information:Cash payments for interest$214 $203 $153 Net cash payments/(refunds) for income taxes191 156 (766) Gain on sale of equity interest in naviHealth Provision for/(benefit from) deferred income taxes The accompanying notes are an integral part of these consolidated statements.\""
      ],
      "current_body": "(in millions)202420232022Cash flows from operating activities:Net earnings/(loss)$853 $331 $(937)Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:Depreciation and amortization710 692 692 Impairments and loss on sale of other investments2 7 24 Impairments and (gain)/loss on disposal of assets, net634 1,246 2,060 Gain on sale of equity interest in naviHealth— — (2)Loss on early extinguishment of debt— — 10 Share-based compensation121 96 81 Provision for/(benefit from) deferred income taxes(104)(40)14 Provision for bad debts36 55 23 Change in operating assets and liabilities, net of effects from acquisitions and divestitures:Increase in trade receivables(996)(950)(1,405)(Increase)/decrease in inventories1,115 (412)(1,204)Increase in accounts payable1,824 2,816 3,555 Other accrued liabilities and operating items, net(433)(997)264 Net cash provided by operating activities3,762 2,844 3,175 Cash flows from investing activities:Acquisition of subsidiaries, net of cash acquired(1,190)(10)(22)Proceeds from divestitures, net of cash sold9 — 923 Additions to property and equipment(511)(481)(387)Proceeds from disposal of property and equipment12 12 31 Purchase of investments(4)(7)(78)Proceeds from investments1 3 29 Proceeds from net investment hedge terminations34 29 71 Purchase of short-term investment in time deposit(550)— — Proceeds from short-term investment in time deposit350 — — Net cash provided by/(used in) investing activities (1,849)(454)567 Cash flows from financing activities:Proceeds from long-term obligations, net of issuance costs1,139 — — Purchase of noncontrolling interests— (3)— Reduction of long-term obligations(783)(579)(885)Net tax proceeds/(withholding) from share-based compensation46 56 (19)Dividends on common shares(499)(525)(559)Purchase of treasury shares(750)(2,000)(1,000)Net cash used in financing activities(847)(3,051)(2,463)Effect of exchange rates changes on cash and equivalents(9)(8)(25)Cash reclassified from/(to) assets held for sale— — 109 Net increase/(decrease) in cash and equivalents1,057 (669)1,363 Cash and equivalents at beginning of period4,076 4,745 3,382 Cash and equivalents at end of period$5,133 $4,076 $4,745 Supplemental Information:Cash payments for interest$214 $203 $153 Net cash payments/(refunds) for income taxes191 156 (766) Gain on sale of equity interest in naviHealth Provision for/(benefit from) deferred income taxes The accompanying notes are an integral part of these consolidated statements. 56Cardinal Health | Fiscal 2024 Form 10-K 56Cardinal Health | Fiscal 2024 Form 10-K 56Cardinal Health | Fiscal 2024 Form 10-K 56 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "(in millions)202320222021Cash flows from operating activities:Net earnings/(loss)$262 $(932)$612 Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:Depreciation and amortization692 692 783 Impairments and loss on sale of other investments7 24 — Impairments and (gain)/loss on disposal of assets, net1,250 2,050 79 (Gain)/Loss on sale of equity interest in naviHealth— (2)2 Loss on early extinguishment of debt— 10 14 Share-based compensation96 81 89 Provision for/(benefit from) deferred income taxes(31)7 496 Provision for bad debts99 68 65 Change in operating assets and liabilities, net of effects from acquisitions and divestitures:Increase in trade receivables(947)(1,526)(904)Increase in inventories(340)(1,071)(1,584)Increase in accounts payable2,718 3,428 2,325 Other accrued liabilities and operating items, net(967)293 452 Net cash provided by operating activities2,839 3,122 2,429 Cash flows from investing activities:Additions to property and equipment(481)(387)(400)Proceeds from divestitures, net of cash sold— 923 — Acquisition of subsidiaries, net of cash acquired(10)(22)(3)Proceeds from disposal of property and equipment12 31 — Purchase of other investments(7)(78)(22)Proceeds from sale of investments3 29 47 Proceeds from net investment hedge terminations29 71 — Net cash provided by/(used in) investing activities (454)567 (378)Cash flows from financing activities:Purchase of noncontrolling interests(3)— — Proceeds from interest rate swap terminations— — 18 Reduction of long-term obligations(579)(885)(570)Net tax proceeds/(withholding) from share-based compensation56 (19)8 Dividends on common shares(525)(559)(573)Purchase of treasury shares(2,000)(1,000)(200)Net cash used in financing activities(3,051)(2,463)(1,317)Effect of exchange rates changes on cash and equivalents(8)(25)11 Cash reclassified from/(to) assets held for sale— 109 (109)Net increase/(decrease) in cash and equivalents(674)1,310 636 Cash and equivalents at beginning of period4,717 3,407 2,771 Cash and equivalents at end of period$4,043 $4,717 $3,407 Supplemental Information:Cash payments for interest$203 $153 $182 Net cash payments/(refunds) for income taxes156 (766)273 The accompanying notes are an integral part of these consolidated statements. 56Cardinal Health | Fiscal 2023 Form 10-K 56Cardinal Health | Fiscal 2023 Form 10-K 56Cardinal Health | Fiscal 2023 Form 10-K 56 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "products and raw materials available to us and are subject to fluctuations in costs, availability and regulatory risk associated with these products and raw materials.",
      "prior_title": "Risk Factors",
      "similarity_score": 0.706,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Our manufacturing businesses use oil-based resins, pulp, cotton, latex and other commodities as raw materials in many products.\"",
        "Reworded sentence: \"In addition, due to the stringent regulatory requirements regarding the manufacture and sourcing of our products, we may not be able to quickly establish additional or replacement sources for certain components, materials or products.\"",
        "Reworded sentence: \"healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers and pharmacy chains, among others, have consolidated or formed strategic alliances.\"",
        "Reworded sentence: \"For example, products and materials sourced, directly or indirectly, from outside the U.S., including from China, may be subject to major changes in tax or trade policy between the U.S.\"",
        "Removed sentence: \"Changes in foreign currency exchange rates could adversely affect our financial results, which are reported in U.S.\""
      ],
      "current_body": "Our manufacturing businesses use oil-based resins, pulp, cotton, latex and other commodities as raw materials in many products. Prices of oil and gas also affect our distribution and transportation costs. Prices of these commodities are volatile and can fluctuate significantly, causing our costs to produce and distribute our products to fluctuate. Beginning in the fourth quarter of fiscal year 2021, we experienced higher supply chain costs, which had a negative impact on our former Medical segment profit in fiscal 2021, 2022, 2023 and current GMPD segment in 2024. Supply chain constraints also had a negative impact on sales within our former Medical segment. We did not offset the full impact of these cost increases in fiscal year 2023 and 2024; however, we implemented certain cost reductions, price increases and surcharges to mitigate the impact. Due to competitive dynamics and contractual limitations, passing along cost increases is challenging. If we are not able to mitigate future cost increases through increased prices where necessary or if supply cost increases do not continue to normalize as expected, GMPD segment profit could be negatively impacted. We depend on others to manufacture some products, including pharmaceuticals, that we market and distribute. Our operations are also dependent on various components, compounds, raw materials and energy supplied by others. We purchase many of these components, raw materials and energy, and source certain products from numerous suppliers in various countries. In some instances, for reasons of quality assurance, cost effectiveness, or availability, we procure certain components and raw materials from a sole supplier. Our supplier relationships could be interrupted, become less favorable to us or be terminated and the supply of these components, compounds, raw materials or products could be interrupted or become insufficient. These supply interruptions or other disruptions in manufacturing processes could be caused by events beyond our control, including natural disasters, labor disputes, supplier facility shutdowns, defective raw materials, the impact of epidemics or pandemics, such as COVID-19, and actions by U.S. or international governments, including import or export restrictions or tariffs. In addition, due to the stringent regulatory requirements regarding the manufacture and sourcing of our products, we may not be able to quickly establish additional or replacement sources for certain components, materials or products. A sustained supply reduction or interruption, and an inability to develop alternative and additional sources for such supply, could result in lost sales, increased cost, damage to our reputation, and may have an adverse effect on our business. Employee attrition may have an adverse impact on our business, results of operations or internal controls.Our ability to attract, retain and develop qualified and experienced employees, including key executives and other talent, is critical for us to meet our business objectives. We compete with many other businesses to attract and retain employees. It is possible that we could experience loss of key personnel for a variety of causes. If we do not adequately plan for succession of key roles or if we are not successful in attracting or retaining new talent, our performance or internal control over financial reporting could be adversely impacted.Consolidation in the U.S. healthcare industry may negatively impact our results of operations.In recent years, U.S. healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers and pharmacy chains, among others, have consolidated or formed strategic alliances. Consolidations create larger enterprises with greater negotiating power and could result in the possible loss of a customer in the situation where the combined enterprise selects one distributor from two incumbents or a reduction in our ability to market our products and services to new customers. Consolidations also impact other objectives, including our ability to use acquisitions to expand or complement our existing businesses. If this consolidation trend continues, it could adversely affect our results of operations.Changes or uncertainty in U.S. or international trade policies and exposure to economic, political and currency and other risks could disrupt our global operations or negatively impact our financial results.We conduct our operations in various regions of the world outside of the United States, including Europe, Asia and Latin America. Global developments can affect our business in many ways. Our global operations are affected by local economic environments, including inflation, recession and competition. Additionally, divergent or unfamiliar regulatory systems and labor markets can increase the risks and burdens of operating in numerous countries.Our foreign operations expose us to a number of risks related to trade protection laws, tariffs, excise or other border taxes on goods sourced from certain countries or on the importation or exportation of products or raw materials. Changes or uncertainty in U.S. or international trade policies or tariffs could impact our global operations, as well as our customers and suppliers. For example, products and materials sourced, directly or indirectly, from outside the U.S., including from China, may be subject to major changes in tax or trade policy between the U.S. and countries from which we source such products and materials. These changes may include the imposition of additional tariffs or duties on imports, which may require taking certain actions such as raising prices and seeking alternative sources of supply. We may also be required to spend more money to source certain products or materials that we need or to manufacture certain of our products. This could adversely impact our business and results of operations.In addition, we conduct our business in U.S. dollars and various functional currencies of our foreign subsidiaries. Changes in",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our goodwill or other long-lived assets may be further impaired, which could require us to record additional significant charges to earnings in accordance with generally accepted accounting principles.",
      "prior_title": "Our goodwill or other long-lived assets could be impaired, which could require us to record additional significant charges to earnings in accordance with generally accepted accounting principles.",
      "similarity_score": 0.706,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"In fiscal 2024, we performed annual impairment testing and concluded there were no impairments of goodwill for our reporting units as the estimated fair value of each reporting unit exceeded its carrying amount.\"",
        "Reworded sentence: \"We believe our assumptions and estimates are reasonable and appropriate; however, additional adverse changes in key assumptions, a failure to meet expected earnings or other financial plans, or unanticipated events and circumstances, an increase in the discount rate, a decrease in the terminal growth rate, increases in tax rates, or a significant change in industry or economic trends could affect the accuracy or validity of such estimates and may result in goodwill impairment in our at-Home solutions segment.\""
      ],
      "current_body": "U.S. GAAP requires us to test our goodwill for impairment on an annual basis, or more frequently if indicators for potential impairment exist. In addition, we review intangible assets with finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In fiscal 2024, we performed annual impairment testing and concluded there were no impairments of goodwill for our reporting units as the estimated fair value of each reporting unit exceeded its carrying amount. However, the at-Home Solutions reporting unit estimated fair value exceeds its carrying amount by less than 1 percent and therefore, its goodwill could be impaired in future periods. The goodwill balance as of June 30, 2024 was $1.1 billion. Impairment testing involves estimates and significant judgments by management. We believe our assumptions and estimates are reasonable and appropriate; however, additional adverse changes in key assumptions, a failure to meet expected earnings or other financial plans, or unanticipated events and circumstances, an increase in the discount rate, a decrease in the terminal growth rate, increases in tax rates, or a significant change in industry or economic trends could affect the accuracy or validity of such estimates and may result in goodwill impairment in our at-Home solutions segment. It is also possible that we may record significant charges from impairment to goodwill of other reporting 38Cardinal Health | Fiscal 2024 Form 10-K 38Cardinal Health | Fiscal 2024 Form 10-K 38Cardinal Health | Fiscal 2024 Form 10-K 38 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "U.S. GAAP requires us to test our goodwill for impairment on an annual basis, or more frequently if indicators for potential impairment exist. In addition, we review intangible assets with finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Due to previously communicated changes in our long-term financial plan assumptions made during fiscal 2023, including those related to Cardinal Health branded medical products sales growth and net inflationary impacts, we performed quantitative goodwill impairment testing for the Medical Unit for periods ended June 30, 2023, March 31, 2023, December 31, 2022 and September 30, 2022, and recorded an aggregate $1.2 billion impairment to goodwill in fiscal year 2023. During fiscal 2022, as a result of adverse financial results in our Medical Unit resulting from inflationary impacts and global supply chain constraints, we performed goodwill impairment testing for the Medical Unit and recorded an aggregate $2.1 billion impairment to goodwill in fiscal year 2022. Impairment testing involves estimates and significant judgments by management. We believe our assumptions and estimates are reasonable and appropriate; however additional adverse changes in key assumptions, a failure to meet expected earnings or other financial plans, including the execution of key initiatives related to optimizing and growing sales of Cardinal Health branded medical products, increasing growth in certain strategic divisions within our Medical segment and driving simplification efforts and cost optimization projects, or unanticipated events and circumstances, such as changes in assumptions about the duration and magnitude of increased supply chain and commodities costs and our efforts to mitigate such impact, including price increases or surcharges; further disruptions in the supply chain; manufacturing cost inefficiencies resulting from lower than anticipated sales volume; an increase in the discount rate; a decrease in the terminal growth rate; increases in tax rates; or a significant change in industry or economic trends could affect the accuracy or validity of such estimates and may result in an additional goodwill impairment in our Medical Unit. It is also possible that we may record significant charges from impairment to goodwill of other reporting units, intangibles and other long-lived assets. Any charge or charges could adversely affect our results of operations. See \"Critical Accounting Policies and Sensitive Accounting Estimates\" in MD&A above for more information regarding goodwill impairment testing."
    },
    {
      "status": "MODIFIED",
      "current_title": "Fair Value Hedges",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.705,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates.\"",
        "Reworded sentence: \"During fiscal 2024, 2023 and 2022 there were no gains or losses recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt.\""
      ],
      "current_body": "We enter into pay-floating interest rate swaps to hedge the changes in the fair value of fixed-rate debt resulting from fluctuations in interest rates. These contracts are designated and qualify as fair value hedges. Accordingly, the gain or loss recorded on the pay-floating interest rate swaps is directly offset by the change in fair value of the underlying debt. Both the derivative instrument and the underlying debt are adjusted to market value at the end of each period with any resulting gain or loss recorded in interest expense, net in the consolidated statements of earnings/(loss). During fiscal 2024, 2023 and 2022 there were no gains or losses recorded to interest expense as changes in the market value of our derivative instruments offset changes in the market value of the underlying debt. During fiscal 2024, 2023 and 2022, we entered into pay-floating interest rate swaps with total notional amounts of $500 million, $300 million and $600 million, respectively. These swaps have been designated as fair value hedges of our fixed rate debt and are included in deferred income taxes and other liabilities in the consolidated balance sheets. The following tables summarize the outstanding interest rate swaps designated as fair value hedges at June 30: 2024(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$1,600 Jun 2027-Feb 2031 2023(in millions)Notional AmountMaturity DatePay-floating interest rate swaps$1,100 Jun 2027-Sep 2030 The following table summarizes the gain/(loss) recognized in earnings for interest rate swaps designated as fair value hedges: (in millions)202420232022Pay-floating interest rate swaps (1)$2 $(50)$(44)Fixed-rate debt (1)(2)50 44 (1) Included in interest expense, net in the consolidated statements of earnings/(loss). interest expense, net interest expense, net interest expense, net",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our ability to manage and complete acquisitions could impact our strategic objectives and financial condition.",
      "prior_title": "Our ability to manage and complete acquisitions could impact our strategic objectives and financial condition.",
      "similarity_score": 0.702,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"For example, in March 2024, we acquired Specialty Networks, a technology-enabled multi-specialty group purchasing and practice enhancement organization for $1.2 billion.\""
      ],
      "current_body": "From time to time, we look to acquire other businesses that expand or complement our existing businesses. For example, in March 2024, we acquired Specialty Networks, a technology-enabled multi-specialty group purchasing and practice enhancement organization for $1.2 billion. Completion of such acquisitions and the integration of acquired businesses involve a number of risks, including the following: we may overpay for a business or fail to realize the synergies, financial, strategic and other benefits we expect from the acquisition; our management’s attention may be diverted to integration efforts; we may fail to retain key personnel of the acquired business; future developments may impair the value of our purchased goodwill or intangible assets; we may face difficulties or delays establishing, integrating or combining operations and systems, including manufacturing facilities; we may assume liabilities related to legal proceedings involving the acquired business; we may face challenges retaining the customers of the acquired business; we may require financing that may not be available on favorable terms; we may not receive regulatory approval necessary to timely complete an acquisition; or we may encounter unforeseen internal control, regulatory or compliance issues. We may also encounter other risks related to a failure to complete an acquisition, including diversion of time and resources of management and failure to achieve strategic objectives. Any of the foregoing may impact our ability to achieve anticipated benefits of an acquisition, which might have an adverse impact on results of operations and financial conditions.Failure to effectively or efficiently complete or manage critical business processes could have unforeseen consequences. From time to time, our businesses perform business process improvements or infrastructure modernizations or use service providers for key systems and processes, such as receiving and processing customer orders, customer service and accounts payable. For example, during fiscal 2022, our former Pharmaceutical segment implemented a replacement of certain finance and operating information systems and we have also transitioned certain finance processes to a third-party service provider. These initiatives, transitions, and improvements require an ongoing commitment of resources. If any of these initiatives or similar initiatives, including those related to artificial intelligence and machine learning, are not successfully or efficiently implemented or maintained, or if our relationship with critical third-party service providers deteriorates, we could experience negative impacts on our business, financial results and our internal control over financial reporting.Our business could be affected by activist shareholders.In September 2022, we entered into a Cooperation Agreement with Elliott under which our Board of Directors, among other things, (1) appointed four new independent directors, including a representative from Elliott , and (2) formed an advisory Business Review Committee of the Board, which was tasked with undertaking a comprehensive review of our strategy, portfolio, capital-allocation framework and operations. In May 2023, we extended the term of the Cooperation Agreement until the later of July 15, 2024 or until an Elliott representative ceases to serve on, or resigns from, our Board of Directors. In connection with this extension, the Board extended the term of the Business Review Committee until July 15, 2024. On that date, the Business Review Committee disbanded in accordance with its charter. The Cooperation Agreement remains in effect. The Cooperation Agreement may create unintended consequences, such as creating uncertainty about our management, operations or future strategic direction, which could attention may be diverted to integration efforts; we may fail to retain key personnel of the acquired business; future developments may impair the value of our purchased goodwill or intangible assets; we may face difficulties or delays establishing, integrating or combining operations and systems, including manufacturing facilities; we may assume liabilities related to legal proceedings involving the acquired business; we may face challenges retaining the customers of the acquired business; we may require financing that may not be available on favorable terms; we may not receive regulatory approval necessary to timely complete an acquisition; or we may encounter unforeseen internal control, regulatory or compliance issues. We may also encounter other risks related to a failure to complete an acquisition, including diversion of time and resources of management and failure to achieve strategic objectives. Any of the foregoing may impact our ability to achieve anticipated benefits of an acquisition, which might have an adverse impact on results of operations and financial conditions.",
      "prior_body": "From time to time, we look to acquire other businesses that expand or complement our existing businesses. Completion of acquisitions and the integration of acquired businesses involve a number of risks, including the following: we may overpay for a business or fail to realize the synergies and other benefits we expect from the acquisition; our management’s attention may be diverted to integration efforts; we may fail to retain key personnel of the acquired business; future developments may impair the value of our purchased goodwill or intangible assets; we may face difficulties or delays establishing, integrating or combining operations and systems, including manufacturing facilities; we may assume liabilities related to legal proceedings involving the acquired business; we may face challenges retaining the customers of the acquired business; or we may encounter unforeseen internal control, regulatory or compliance issues."
    },
    {
      "status": "MODIFIED",
      "current_title": "1. Basis of Presentation and Summary of Significant Accounting Policies",
      "prior_title": "1. Basis of Presentation and Summary of Significant Accounting Policies",
      "similarity_score": 0.699,
      "confidence": "medium",
      "key_changes": [
        "Added sentence: \"is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices.\"",
        "Added sentence: \"We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency.\"",
        "Added sentence: \"References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc.\"",
        "Added sentence: \"and its majority-owned or controlled subsidiaries, unless the context otherwise requires.Our fiscal year ends on June 30.\"",
        "Added sentence: \"References to fiscal 2024, 2023 and 2022 in these consolidated financial statements are to the fiscal years ended June 30, 2024, 2023 and 2022, respectively.Basis of PresentationOur consolidated financial statements include the accounts of all majority-owned or consolidated subsidiaries, and all significant intercompany transactions and amounts have been eliminated.\""
      ],
      "current_body": "Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires.Our fiscal year ends on June 30. References to fiscal 2024, 2023 and 2022 in these consolidated financial statements are to the fiscal years ended June 30, 2024, 2023 and 2022, respectively.Basis of PresentationOur consolidated financial statements include the accounts of all majority-owned or consolidated subsidiaries, and all significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. Revision of Prior Period Consolidated Financial StatementsIn connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at-Home Solutions operating segment. In accordance with ASC 250 – Accounting Changes and Error Corrections and Staff Accounting Bulletins No. 99 – Materiality and No. 108 – Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the materiality of the error and determined that the impacts were not material, individually or in the aggregate, to our previously issued Consolidated Financial Statements for any of the prior quarters or annual periods in which they occurred, but that correcting the error in the current period would be material to our results of operations for fiscal 2024. We have revised our prior period financial statements to correct this error, as well as other unrelated immaterial errors, including an adjustment to an uncertain tax position. These revisions impacted each quarter of fiscal 2022, 2023 and 2024. These other immaterial errors were previously corrected in the periods they were identified; however, they are now reflected in the periods they originated. Revisions to our previously reported disclosures have been reflected in this Note; Note 3, \"Divestitures\"; Note 5, “Goodwill and Other Intangible Assets”; Note 6, \"Leases\"; Note 8, \"Commitments, Contingent Liabilities and Litigation\"; Note 9, \"Income Taxes\"; Note 12, \"Shareholders' Equity/(Deficit)”; Note 13, \"Earnings Per Share\"; and Note 14 “Segment Information.\" A summary of the revisions to the previously reported financial statements is provided below and in Note 16, “Revision of Previously Issued Interim Financial Statements (Unaudited)”. Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires.Our fiscal year ends on June 30. References to fiscal 2024, 2023 and 2022 in these consolidated financial statements are to the fiscal years ended June 30, 2024, 2023 and 2022, respectively.Basis of PresentationOur consolidated financial statements include the accounts of all majority-owned or consolidated subsidiaries, and all significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. Revision of Prior Period Consolidated Financial StatementsIn connection with the preparation of our Consolidated Financial Statements for fiscal 2024, we identified an accounting error related to revenue recognition from third party payors within the at- Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires. Our fiscal year ends on June 30. References to fiscal 2024, 2023 and 2022 in these consolidated financial statements are to the fiscal years ended June 30, 2024, 2023 and 2022, respectively.",
      "prior_body": "Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires. Our fiscal year ends on June 30. References to fiscal 2023, 2022 and 2021 in these consolidated financial statements are to the fiscal years ended June 30, 2023, 2022 and 2021, respectively."
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Balance Sheets",
      "prior_title": "Consolidated Balance Sheets",
      "similarity_score": 0.696,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"June 30(in millions)20242023AssetsCurrent assets:Cash and equivalents$5,133 $4,076 Trade receivables, net12,084 11,108 Inventories, net14,957 16,119 Prepaid expenses and other2,663 2,294 Assets held for sale47 140 Total current assets34,884 33,737 Property and equipment, net2,529 2,461 Goodwill and other intangibles, net6,450 6,085 Other assets1,258 1,066 Total assets$45,121 $43,349 Liabilities and Shareholders’ DeficitCurrent liabilities:Accounts payable$31,759 $29,934 Current portion of long-term obligations and other short-term borrowings434 792 Other accrued liabilities3,447 2,972 Liabilities related to assets held for sale— 42 Total current liabilities35,640 33,740 Long-term obligations, less current portion4,658 3,909 Deferred income taxes and other liabilities8,035 8,657 Shareholders’ deficit:Preferred shares, without par value:Authorized—500 thousand shares, Issued—none— — Common shares, without par value:Authorized—755 million shares, Issued— 327 million shares at June 30, 2024 and 20232,917 2,746 Accumulated deficit(286)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(5,677)(4,911)Accumulated other comprehensive loss(167)(151)Total Cardinal Health, Inc.\""
      ],
      "current_body": "June 30(in millions)20242023AssetsCurrent assets:Cash and equivalents$5,133 $4,076 Trade receivables, net12,084 11,108 Inventories, net14,957 16,119 Prepaid expenses and other2,663 2,294 Assets held for sale47 140 Total current assets34,884 33,737 Property and equipment, net2,529 2,461 Goodwill and other intangibles, net6,450 6,085 Other assets1,258 1,066 Total assets$45,121 $43,349 Liabilities and Shareholders’ DeficitCurrent liabilities:Accounts payable$31,759 $29,934 Current portion of long-term obligations and other short-term borrowings434 792 Other accrued liabilities3,447 2,972 Liabilities related to assets held for sale— 42 Total current liabilities35,640 33,740 Long-term obligations, less current portion4,658 3,909 Deferred income taxes and other liabilities8,035 8,657 Shareholders’ deficit:Preferred shares, without par value:Authorized—500 thousand shares, Issued—none— — Common shares, without par value:Authorized—755 million shares, Issued— 327 million shares at June 30, 2024 and 20232,917 2,746 Accumulated deficit(286)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(5,677)(4,911)Accumulated other comprehensive loss(167)(151)Total Cardinal Health, Inc. shareholders' deficit(3,213)(2,958)Noncontrolling interests1 1 Total shareholders’ deficit(3,212)(2,957)Total liabilities and shareholders’ deficit$45,121 $43,349 Authorized—500 thousand shares, Issued—none Authorized—755 million shares, Issued— 327 million shares at June 30, 2024 and 2023 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The accompanying notes are an integral part of these consolidated statements. 54Cardinal Health | Fiscal 2024 Form 10-K 54Cardinal Health | Fiscal 2024 Form 10-K 54Cardinal Health | Fiscal 2024 Form 10-K 54 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "June 30(in millions)20232022AssetsCurrent assets:Cash and equivalents$4,043 $4,717 Trade receivables, net11,344 10,561 Inventories, net15,940 15,636 Prepaid expenses and other2,362 2,021 Assets held for sale144 — Total current assets33,833 32,935 Property and equipment, net2,462 2,361 Goodwill and other intangibles, net6,081 7,629 Other assets1,041 953 Total assets$43,417 $43,878 Liabilities and Shareholders’ DeficitCurrent liabilities:Accounts payable$29,813 $27,128 Current portion of long-term obligations and other short-term borrowings792 580 Other accrued liabilities3,059 2,842 Liabilities related to assets held for sale42 — Total current liabilities33,706 30,550 Long-term obligations, less current portion3,909 4,735 Deferred income taxes and other liabilities8,653 9,299 Shareholders’ deficit:Preferred shares, without par value:Authorized—500 thousand shares, Issued—none— — Common shares, without par value:Authorized—755 million shares, Issued— 327 million shares at June 30, 2023 and 20222,747 2,813 Accumulated deficit(534)(280)Common shares in treasury, at cost: 76 million shares and 54 million shares at June 30, 2023 and 2022, respectively(4,914)(3,128)Accumulated other comprehensive loss(151)(114)Total Cardinal Health, Inc. shareholders' deficit(2,852)(709)Noncontrolling interests1 3 Total shareholders’ deficit(2,851)(706)Total liabilities and shareholders’ deficit$43,417 $43,878 Authorized—500 thousand shares, Issued—none Authorized—755 million shares, Issued— 327 million shares at June 30, 2023 and 2022 Common shares in treasury, at cost: 76 million shares and 54 million shares at June 30, 2023 and 2022, respectively The accompanying notes are an integral part of these consolidated statements. 54Cardinal Health | Fiscal 2023 Form 10-K 54Cardinal Health | Fiscal 2023 Form 10-K 54Cardinal Health | Fiscal 2023 Form 10-K 54 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Tax Effects of Goodwill Impairment Charges",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.695,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"During fiscal 2024, 2023 and 2022, we recognized cumulative pre-tax goodwill impairment charges of $675 million, $1.2 billion and $2.1 billion, respectively, related to GMPD.\"",
        "Reworded sentence: \"For amounts not considered indefinitely reinvested, we have recorded an immaterial amount of income tax expense in our consolidated financial statements in fiscal 2024.\"",
        "Removed sentence: \"The following table presents the components of the deferred income tax assets and liabilities at June 30:(in millions)20232022Deferred income tax assets:Receivable basis difference$44 $41 Accrued liabilities704 675 Share-based compensation29 34 Loss and tax credit carryforwards671 778 Deferred tax assets related to uncertain tax positions39 33 Other53 23 Total deferred income tax assets1,540 1,584 Valuation allowance for deferred income tax assets(421)(468)Net deferred income tax assets$1,119 $1,116 Deferred income tax liabilities:Inventory basis differences$(1,229)$(1,164)Property-related(336)(288)Goodwill and other intangibles(624)(683)Self-Insurance(975)(975)Total deferred income tax liabilities$(3,164)$(3,110)Net deferred income tax liability$(2,045)$(1,994)Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30:(in millions)20232022Noncurrent deferred income tax asset (1)$53 $36 Noncurrent deferred income tax liability (2)(2,096)(2,030)Noncurrent deferred income tax liability transferred to held for sale(2)— Net deferred income tax liability$(2,045)$(1,994)(1)Included in other assets in the consolidated balance sheets.(2)Included in deferred income taxes and other liabilities in the consolidated balance sheets.At June 30, 2023 we had gross federal, state and international loss and credit carryforwards of $505 million, $3.4 billion and $2.1 billion, respectively, the tax effect of which is an aggregate deferred tax asset of $671 million.\"",
        "Removed sentence: \"Substantially all of these carryforwards are available for at least three years.\"",
        "Removed sentence: \"Approximately $403 million of the valuation allowance at June 30, 2023 applies to certain federal, state and international loss carryforwards that, in our opinion, are more likely than not to expire unutilized.\""
      ],
      "current_body": "During fiscal 2024, 2023 and 2022, we recognized cumulative pre-tax goodwill impairment charges of $675 million, $1.2 billion and $2.1 billion, respectively, related to GMPD. The net tax benefits related to these charges were $58 million, $92 million and $140 million during fiscal 2024, 2023 and 2022, respectively. Effective Tax RateThe following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate: 202420232022Provision at Federal statutory rate21.0 %21.0 %21.0 %State and local income taxes, net of federal benefit3.1 6.5 2.0 Tax effect of foreign operations(1.6)(5.4)4.7 Nondeductible/nontaxable items(0.1)(1.1)1.2 Impact of Divestitures— (1.9)(4.8)Withholding Taxes1.0 1.0 (1.1)Change in Valuation Allowances(1.1)(5.1)3.5 US Taxes on International Income (2)(2.1)0.6 1.9 Impact of Resolutions with IRS and other related matters 0.4 0.3 1.6 Opioid litigation1.0 0.1 (0.5)Goodwill Impairment8.7 33.8 (49.9)Other (1.4)0.2 0.9 Effective income tax rate28.9 %50.0 %(19.5)%(1) This table reflects fiscal 2024 and 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense.(2) Includes the tax impact of Global Intangible Low-Taxed Income (\"GILTI\") tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code. The income tax rate was 28.9%, 50.0% and (19.5)% in fiscal 2024, 2023 and 2022, respectively. Fluctuations in the effective tax rates are primarily due to the impact of goodwill impairment in each of these fiscal years. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may impact our self-insurance loss, which could negatively impact our financial position.Our effective tax rate has benefits from negotiated lower than statutory tax rates in select foreign jurisdictions which individually are not material to our effective tax rate but in aggregate had a favorable tax impact of approximately $23 million during fiscal 2024.As of June 30, 2024, foreign earnings of approximately $1.0 billion are considered indefinitely reinvested for working capital and other offshore investment needs. The computation of tax required if those earnings are repatriated is not practicable. For amounts not considered indefinitely reinvested, we have recorded an immaterial amount of income tax expense in our consolidated financial statements in fiscal 2024. Deferred Income TaxesDeferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities and operating loss and tax credit carryforwards for tax purposes.",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Our business could be affected by activist shareholders.",
      "prior_title": "Our business could be affected by activist shareholders.",
      "similarity_score": 0.682,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"In September 2022, we entered into a Cooperation Agreement with Elliott under which our Board of Directors, among other things, (1) appointed four new independent directors, including a representative from Elliott , and (2) formed an advisory Business Review Committee of the Board, which was tasked with undertaking a comprehensive review of our strategy, portfolio, capital-allocation framework and operations.\"",
        "Reworded sentence: \"In connection with this extension, the Board extended the term of the Business Review Committee until July 15, 2024.\""
      ],
      "current_body": "In September 2022, we entered into a Cooperation Agreement with Elliott under which our Board of Directors, among other things, (1) appointed four new independent directors, including a representative from Elliott , and (2) formed an advisory Business Review Committee of the Board, which was tasked with undertaking a comprehensive review of our strategy, portfolio, capital-allocation framework and operations. In May 2023, we extended the term of the Cooperation Agreement until the later of July 15, 2024 or until an Elliott representative ceases to serve on, or resigns from, our Board of Directors. In connection with this extension, the Board extended the term of the Business Review Committee until July 15, 2024. On that date, the Business Review Committee disbanded in accordance with its charter. The Cooperation Agreement remains in effect. The Cooperation Agreement may create unintended consequences, such as creating uncertainty about our management, operations or future strategic direction, which could Cardinal Health | Fiscal 2024 Form 10-K39 Cardinal Health | Fiscal 2024 Form 10-K39 Cardinal Health | Fiscal 2024 Form 10-K39 Cardinal Health | Fiscal 2024 Form 10-K 39",
      "prior_body": "In September 2022, we entered into a Cooperation Agreement with Elliott under which our Board of Directors, among other things, (1) appointed four new independent directors, including a representative from Elliott , and (2) formed an advisory Business Review Committee of the Board, which is tasked with undertaking a comprehensive review of our strategy, portfolio, capital-allocation framework and operations. In May 2023, we extended the term of the Cooperation Agreement until the later of July 15, 2024 or until an Elliott representative ceases to serve on, or resigns from, our Board of Directors. The Cooperation Agreement may create unintended consequences, such as creating uncertainty about our management, operations or future strategic direction, which could result in the loss of future business opportunities or negatively impact our ability to attract and retain qualified talent. Additionally, implementing any actions recommended by the Business Review Committee and the Board may be costly and time-consuming, may be disruptive to our ongoing business operations and may ultimately be unsuccessful. It is possible that activist shareholders may, among other things, attempt to effect additional changes and exert influence over our Board of Directors and management or initiate a proxy contest, which may disrupt our operations by diverting the attention of management and the Board and be costly and time-consuming. Any such proxy contests, actions or requests, or the mere public presence of activist shareholders, may cause the market price for our shares to experience volatility, which could be significant."
    },
    {
      "status": "MODIFIED",
      "current_title": "Investments",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.671,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Investments in non-marketable equity securities are accounted for under the fair value, equity or net asset value method of accounting and are included in other assets in the consolidated balance sheets.\"",
        "Reworded sentence: \"We monitor our investments for impairment by considering factors such as the operating performance of the investment and current economic and market conditions.\"",
        "Reworded sentence: \"Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants.\""
      ],
      "current_body": "Investments in non-marketable equity securities are accounted for under the fair value, equity or net asset value method of accounting and are included in other assets in the consolidated balance sheets. For equity securities without a readily determinable fair value, we use the fair value measurement alternative and measure the securities at cost less impairment, if any, including adjustments for observable price changes in orderly transactions for an identical or similar investment of the same issuer. For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Our share of the earnings and losses are recorded in other (income)/expense, net in the consolidated statements of earnings/(loss). We monitor our investments for impairment by considering factors such as the operating performance of the investment and current economic and market conditions. Leases Our leases are primarily for corporate offices, distribution facilities, vehicles and equipment. We determine if an arrangement is a lease at its inception by evaluating whether the arrangement conveys the right to use an identified asset and whether we obtain substantially all of the economic benefits from and have the ability to direct the use of the asset. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and corresponding operating lease liabilities are recognized in our consolidated balance sheets at lease commencement date based on the present value of lease payments over the lease term. Operating lease expense for 62Cardinal Health | Fiscal 2024 Form 10-K 62Cardinal Health | Fiscal 2024 Form 10-K 62Cardinal Health | Fiscal 2024 Form 10-K 62 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "New York Opioid Stewardship Act",
      "prior_title": "New York Opioid Stewardship Act",
      "similarity_score": 0.661,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"In April 2018, the State of New York passed a budget which included the Opioid Stewardship Act (the \"OSA\"), which created an aggregate $100 million annual assessment on all manufacturers and distributors licensed to sell or distribute opioids in New York.\"",
        "Reworded sentence: \"In connection with the OSA, we recorded an aggregate accrual of $41 million for calendar years 2017 and 2018 during fiscal 2021 based on the probable estimated payment amount.\"",
        "Reworded sentence: \"During fiscal 2023, we recorded $6 million of income to reduce the previously estimated accrual to the invoiced amount for the calendar year 2018 assessment and we paid $11 million.\""
      ],
      "current_body": "In April 2018, the State of New York passed a budget which included the Opioid Stewardship Act (the \"OSA\"), which created an aggregate $100 million annual assessment on all manufacturers and distributors licensed to sell or distribute opioids in New York. Under the OSA, each licensed manufacturer and distributor was required to pay a portion of the assessment based on its share of the total morphine milligram equivalents sold or distributed in New York during the applicable calendar year, beginning in 2017. Subsequently, New York passed a new statute that modified the assessment going forward and limited the OSA to two years (2017 and 2018). We accrue contingencies if it is probable that a liability has been incurred and the amount can be estimated. In connection with the OSA, we recorded an aggregate accrual of $41 million for calendar years 2017 and 2018 during fiscal 2021 based on the probable estimated payment amount. In the second quarter of fiscal 2022, we paid the State of New York $20 million, our portion of the assessment for calendar year 2017. At June 30, 2022, we had an accrual of $20 million, which represented our estimate of our portion of the assessment for calendar year 2018. During fiscal 2023, we recorded $6 million of income to reduce the previously estimated accrual to the invoiced amount for the calendar year 2018 assessment and we paid $11 million. At June 30, 2023, we had an outstanding liability of $3 million, which represented our best estimate of the remaining amount owed for calendar year 2018, and which was paid in full during the first quarter of fiscal 2024. We, and other distributors, challenged the OSA as unconstitutional. In May 2024, the New York Appellate Division held that the 2017 assessment was unconstitutionally retroactive, directing a refund of assessments paid for calendar year 2017, but upheld the 2018 assessment. Both parties have appealed the decision of the New York Appellate Division to the New York Court of Appeals, the state's highest court. We have not recorded a receivable for any possible recoveries related to these assessments. Legal ProceedingsWe become involved from time to time in disputes, litigation and regulatory matters.From time to time, we determine that products we distribute, source, manufacture or market do not meet our specifications, regulatory requirements, or published standards. When we or a regulatory agency identify a potential quality or regulatory issue, we investigate and take appropriate corrective action. Such actions have led to product recalls, costs to repair or replace affected products, temporary interruptions in product sales, restrictions on importation, product liability claims and lawsuits and can lead to action by regulators. Even absent an identified regulatory or quality issue or product recall, we can become subject to product liability claims and lawsuits.From time to time, we become aware through employees, internal audits or other parties of possible compliance matters, such as complaints or concerns relating to accounting, internal accounting controls, financial reporting, auditing, or other ethical matters or relating to compliance with laws such as healthcare fraud and abuse, anti-corruption or anti-bribery laws. When we become aware of such possible compliance matters, we investigate internally and take appropriate corrective action. In addition, from time to time, we receive subpoenas or requests for information from various federal or state agencies relating to our business or to the business of a customer, supplier or other industry participants. Internal investigations, subpoenas or requests for information could directly or indirectly lead to the assertion of claims or the commencement of legal proceedings against us or result in sanctions.We have been named from time to time in qui tam actions initiated by private third parties. In such actions, the private parties purport to act on behalf of federal or state governments, allege that false claims have been submitted for payment by the government and may receive an award if their claims are successful. After a private party has filed a qui tam action, the government must investigate the private party's claim and determine whether to intervene in and take control over the litigation. These actions may remain under seal while the government makes this determination. If the government declines to intervene, the private party may nonetheless continue to pursue the litigation on his or her own purporting to act on behalf of the government.We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because these matters are inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review contingencies to determine whether our accruals and related disclosures are adequate. The amount of ultimate loss may differ from these estimates.We recognize income from the favorable outcome of litigation when we receive the associated cash or assets.We recognize estimated loss contingencies for certain litigation and regulatory matters and income from favorable resolution of",
      "prior_body": "In April 2018, the State of New York passed a budget which included the Opioid Stewardship Act (the \"OSA\"). The OSA created an aggregate $100 million annual assessment on all manufacturers and distributors licensed to sell or distribute opioids in New York. Under the OSA, each licensed manufacturer and distributor would be required to pay a portion of the assessment based on its share of the total morphine milligram equivalents sold or distributed in New York during the applicable calendar year, beginning in 2017. Subsequently, New York passed a new statute that modified the assessment going forward and limited the OSA to two years (2017 and 2018). We accrue contingencies if it is probable that a liability has been incurred and the amount can be estimated. In the second quarter of fiscal year 2022, we paid the State of New York $20 million, our portion of the assessment for calendar year 2017. At June 30, 2022, we had an accrual of $20 million, which represented our estimate of our portion of the assessment for calendar year 2018. During the fiscal 2023, we recorded $6 million of income to reduce this accrual to the invoiced amount for the calendar year 2018 assessment and we paid $11 million."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.66,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"(5) Reflects a $110 million reclassification between Pharmaceutical and Specialty Solutions and Other, which does not impact our previously reported consolidated financial statements or results of our impairment tests.The increase in the Pharmaceutical and Specialty Solutions segment goodwill is due to the Specialty Networks acquisition.\"",
        "Reworded sentence: \"During the three months ended December 31, 2023, we did not identify any indicators of impairment within our reporting units.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "products and raw materials available to us and are subject to fluctuations in costs, availability and regulatory risk associated with these products and raw materials.",
      "similarity_score": 0.658,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"unable to negotiate alternative ways to be compensated by manufacturers or customers for the value of our services, our margins could be adversely affected.We depend on direct and indirect suppliers to make theirproducts and raw materials available to us and are subject to fluctuations in costs, availability and regulatory risk associated with these products and raw materials.Our manufacturing businesses use oil-based resins, pulp, cotton, latex and other commodities as raw materials in many products.\"",
        "Reworded sentence: \"Beginning in the fourth quarter of fiscal year 2021, we experienced higher supply chain costs, which had a negative impact on our former Medical segment profit in fiscal 2021, 2022, 2023 and current GMPD segment in 2024.\"",
        "Reworded sentence: \"If we are not able to mitigate future cost increases through increased prices where necessary or if supply cost increases do not continue to normalize as expected, GMPD segment profit could be negatively impacted.We depend on others to manufacture some products, including pharmaceuticals, that we market and distribute.\"",
        "Reworded sentence: \"In some instances, for reasons of quality assurance, cost effectiveness, or availability, we procure certain components and raw materials from a sole supplier.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "Our manufacturing businesses use oil-based resins, pulp, cotton, latex and other commodities as raw materials in many products. Prices of oil and gas also affect our distribution and transportation costs. Prices of these commodities are volatile and can fluctuate significantly, causing our costs to produce and distribute our products to fluctuate. Beginning in the fourth quarter of fiscal year 2021, we experienced higher supply chain costs, which had a negative impact on Medical segment profit in fiscal 2021, 2022 and 2023. Supply chain constraints have also had a negative impact on sales within our Medical segment. We did not offset the full impact of these cost increases in fiscal year 2023; however, we implemented certain cost reductions, price increases and surcharges to mitigate the impact. Due to competitive dynamics and contractual limitations, passing along cost increases is challenging. If we are not able to continue to increase prices as planned or if supply cost increases do not continue to normalize as expected, Medical segment profit could be negatively impacted to a greater extent than we currently anticipate. We depend on others to manufacture some products that we market and distribute. Our operations are also dependent on various components, compounds, raw materials and energy supplied by others. We purchase many of these components, raw materials and energy, and source certain products from numerous suppliers in various countries. In some instances, for reasons of quality assurance, cost effectiveness, or availability, we procure Cardinal Health | Fiscal 2023 Form 10-K41 Cardinal Health | Fiscal 2023 Form 10-K41 Cardinal Health | Fiscal 2023 Form 10-K41 Cardinal Health | Fiscal 2023 Form 10-K 41"
    },
    {
      "status": "MODIFIED",
      "current_title": "Currency Exchange Risk Management",
      "prior_title": "Currency Exchange Risk Management",
      "similarity_score": 0.657,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses.\""
      ],
      "current_body": "We conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments and anticipated foreign currency revenue and expenses.",
      "prior_body": "We conduct business in several major international currencies and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow management to focus its attention on business operations. Cardinal Health | Fiscal 2023 Form 10-K73 Cardinal Health | Fiscal 2023 Form 10-K73 Cardinal Health | Fiscal 2023 Form 10-K73 Cardinal Health | Fiscal 2023 Form 10-K 73"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Segment Profit",
      "similarity_score": 0.656,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Segment ProfitWe evaluate segment performance based on segment profit, among other measures.\"",
        "Reworded sentence: \"Segment SG&A expenses include share-based compensation expense as well as allocated corporate technology and shared functions expenses, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology and legal and compliance, including certain litigation defense costs.\"",
        "Reworded sentence: \"Investment spending within Corporate was $59 million, $35 million and $50 million for fiscal 2024, 2023 and 2022, respectively.\"",
        "Reworded sentence: \"Investment spending within Corporate was $59 million, $35 million and $50 million for fiscal 2024, 2023 and 2022, respectively.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "We evaluate segment performance based on segment profit, among other measures. Segment profit is segment revenue, less segment cost of products sold, less segment distribution, selling, general and administrative (\"SG&A\") expenses. Segment SG&A expenses include share-based compensation expense as well as allocated corporate expenses for shared functions, including corporate management, corporate finance, financial and customer care shared services, human resources, information technology, legal and compliance, including certain litigation defense costs. Corporate expenses are allocated to the segments based on headcount, level of benefit provided and other ratable allocation methodologies. The results attributable to noncontrolling interests are recorded within segment profit. We do not allocate the following items to our segments: •last-in first-out, or (\"LIFO\"), inventory charges/(credits); •surgical gown recall costs/(income); •shareholder cooperation agreement costs; •state opioid assessment related to prior fiscal years; in connection with the New York Opioid Stewardship Act as discussed further in Note 7; •restructuring and employee severance; •amortization and other acquisition-related costs; •impairments and (gain)/loss on disposal of assets, net; in connection with goodwill impairment testing for the Medical Unit as discussed further in Note 4, we recognized cumulative pre-tax goodwill impairment charges of $1.2 billion and $2.1 billion during fiscal 2023 and 2022, respectively; •litigation (recoveries)/charges, net; in connection with the opioid litigation as discussed further in Note 7, we recognized a pre-tax charge of $1.17 billion during fiscal 2021; •other (income)/expense, net;•interest expense, net;•loss on early extinguishment of debt;•(gain)/loss on sale of equity interest in naviHealth;•provision for/(benefit from) income taxes In addition, certain investment spending, certain portions of enterprise-wide incentive compensation and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $35 million, $50 million and $27 million for fiscal 2023, 2022 and 2021, respectively. The following table presents segment profit by reportable segment and Corporate:(in millions)202320222021Pharmaceutical$1,999 $1,770 $1,684 Medical111 216 577 Total segment profit2,110 1,986 2,261 Corporate(1,383)(2,582)(1,789)Total operating earnings/(loss)$727 $(596)$472 The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate:(in millions)202320222021Pharmaceutical$225 $193 $151 Medical213 216 226 Corporate254 283 406 Total depreciation and amortization$692 $692 $783 (in millions)202320222021Pharmaceutical$90 $79 $55 Medical209 140 97 Corporate182 168 248 Total additions to property and equipment$481 $387 $400 •other (income)/expense, net; •interest expense, net; •loss on early extinguishment of debt; •(gain)/loss on sale of equity interest in naviHealth; •provision for/(benefit from) income taxes In addition, certain investment spending, certain portions of enterprise-wide incentive compensation and other spending are not allocated to the segments. Investment spending generally includes the first-year spend for certain projects that require incremental investments in the form of additional operating expenses. Because approval for these projects is dependent on executive management, we retain these expenses at Corporate. Investment spending within Corporate was $35 million, $50 million and $27 million for fiscal 2023, 2022 and 2021, respectively. The following table presents segment profit by reportable segment and Corporate: (in millions)202320222021Pharmaceutical$1,999 $1,770 $1,684 Medical111 216 577 Total segment profit2,110 1,986 2,261 Corporate(1,383)(2,582)(1,789)Total operating earnings/(loss)$727 $(596)$472 The following tables present depreciation and amortization and additions to property and equipment by reportable segment and Corporate: (in millions)202320222021Pharmaceutical$225 $193 $151 Medical213 216 226 Corporate254 283 406 Total depreciation and amortization$692 $692 $783 (in millions)202320222021Pharmaceutical$90 $79 $55 Medical209 140 97 Corporate182 168 248 Total additions to property and equipment$481 $387 $400 78Cardinal Health | Fiscal 2023 Form 10-K 78Cardinal Health | Fiscal 2023 Form 10-K 78Cardinal Health | Fiscal 2023 Form 10-K 78 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Vendor Reserves",
      "prior_title": "Vendor Reserves",
      "similarity_score": 0.637,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Vendor reserves were $112 million and $117 million at June 30, 2024 and 2023 respectively, excluding third-party returns.\"",
        "Added sentence: \"Distribution Services Agreement and Other Vendor FeesOur Pharmaceutical and Specialty Solutions segment recognizes fees received from distribution services agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment.\"",
        "Added sentence: \"Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings/(loss) when the inventory is sold.Loss Contingencies and Self-InsuranceLoss ContingenciesWe accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.\"",
        "Added sentence: \"In connection with the opioid litigation as described further in Note 8, we recorded pre-tax charges of $5.63 billion during fiscal 2021, which were retained at Corporate.\"",
        "Added sentence: \"In February 2022, we and two other national distributors announced that each company had determined that a sufficient number of political subdivisions had agreed to participate in the previously disclosed settlement agreement (the \"National Opioid Settlement Agreement\") to settle the vast majority of the opioid lawsuits filed by states and local governmental entities.\""
      ],
      "current_body": "In the ordinary course of business, our vendors may dispute deductions taken against payments otherwise due to them or assert other disputes. These disputes are researched and resolved based upon the findings of the research performed. At any given time, there are outstanding items in various stages of research and resolution. In determining appropriate reserves for areas of exposure with our vendors, we assess historical experience and current outstanding claims. We have established various levels of reserves based on the type of claim and status of review. Though the claim types are relatively consistent, we periodically update our reserve estimates to reflect actual historical experience. The ultimate outcome of certain claims may be different than our original estimate and may require an adjustment. Adjustments to vendor reserves are included in cost of products sold. In addition, the reserve balance will fluctuate due to variations of outstanding claims from period-to-period, timing of settlements and specific vendor issues. Vendor reserves were $112 million and $117 million at June 30, 2024 and 2023 respectively, excluding third-party returns. See \"Third-Party Returns\" section within this Note for a description of third-party returns. Distribution Services Agreement and Other Vendor FeesOur Pharmaceutical and Specialty Solutions segment recognizes fees received from distribution services agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment. Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings/(loss) when the inventory is sold.Loss Contingencies and Self-InsuranceLoss ContingenciesWe accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In connection with the opioid litigation as described further in Note 8, we recorded pre-tax charges of $5.63 billion during fiscal 2021, which were retained at Corporate. In February 2022, we and two other national distributors announced that each company had determined that a sufficient number of political subdivisions had agreed to participate in the previously disclosed settlement agreement (the \"National Opioid Settlement Agreement\") to settle the vast majority of the opioid lawsuits filed by states and local governmental entities. This National Opioid Settlement Agreement became effective on April 2, 2022. We have reached agreements in principle with counsel representing classes of third-party payors and acute care hospitals, and we are engaged in resolution discussions with the City of Baltimore. In connection with these matters, as of June 30, 2024, we have accrued $363 million, which reflects our current estimate of probable loss for these matters. The agreements in principle remain subject to contingencies.We develop and periodically update reserve estimates for all litigation matters, including the Cordis OptEase and TrapEase inferior vena cava (\"IVC\") claims received to date and expected to be received in the future and related costs. To project future IVC claim costs, we use a methodology based largely on recent experience, including claim filing rates, blended average payout influenced by claim severity, historical sales data, implant and injury to report lag patterns and estimated defense costs.The amount of ultimate loss may differ materially from these estimates. We recognize these estimated loss contingencies, income from favorable resolution of litigation and certain defense costs in litigation (recoveries)/charges, net in our consolidated statements of earnings/(loss). See Note 8 for additional information regarding loss contingencies and product liability lawsuits.Self-InsuranceWe self-insure for employee healthcare, general liability, certain product liability matters, auto liability, property and workers' compensation. Self-insurance accruals include an estimate for expected settlements or pending claims, defense costs,",
      "prior_body": "In the ordinary course of business, our vendors may dispute deductions taken against payments otherwise due to them or assert other disputes. These disputes are researched and resolved based upon the findings of the research performed. At any given time, there are outstanding items in various stages of research and resolution. In determining appropriate reserves for areas of exposure with our vendors, we assess historical experience and current outstanding claims. We have established various levels of reserves based on the type of claim and status of review. Though the claim types are relatively consistent, we periodically update our reserve estimates to reflect actual historical experience. The ultimate outcome of certain claims may be different than our original estimate and may require an adjustment. Adjustments to vendor reserves are included in cost of products sold. In addition, the reserve balance will fluctuate due to variations of outstanding claims from period-to-period, timing of settlements and specific vendor issues. Vendor reserves were $117 million and $105 million at June 30, 2023 and 2022 respectively, excluding third-party returns. See \"Third-Party Returns\" section within this Note for a description of third-party returns."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Property and Equipment",
      "similarity_score": 0.621,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases.\"",
        "Reworded sentence: \"We recorded depreciation and amortization of capitalized software of $470 million, $441 million and $412 million for fiscal 2024, 2023 and 2022, respectively.\"",
        "Removed sentence: \"58Cardinal Health | Fiscal 2023 Form 10-K 58Cardinal Health | Fiscal 2023 Form 10-K 58Cardinal Health | Fiscal 2023 Form 10-K 58 Cardinal Health | Fiscal 2023 Form 10-K\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts. We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred. Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively. The following table presents the components of property and equipment, net at June 30: (in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. 58Cardinal Health | Fiscal 2023 Form 10-K 58Cardinal Health | Fiscal 2023 Form 10-K 58Cardinal Health | Fiscal 2023 Form 10-K 58 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Deferred Income Taxes",
      "similarity_score": 0.62,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"The following table presents the components of the deferred income tax assets and liabilities at June 30:(in millions)20242023Deferred income tax assets:Receivable basis difference$81 $74 Accrued liabilities749 704 Share-based compensation28 29 Loss and tax credit carryforwards512 672 Deferred tax assets related to uncertain tax positions45 39 Other76 58 Total deferred income tax assets1,491 1,576 Valuation allowance for deferred income tax assets(300)(421)Net deferred income tax assets$1,191 $1,155 Deferred income tax liabilities:Inventory basis differences$(1,122)$(1,229)Property-related(350)(336)Goodwill and other intangibles(710)(624)Self-Insurance(981)(975)Total deferred income tax liabilities$(3,163)$(3,164)Net deferred income tax liability$(1,972)$(2,009)Deferred income tax assets and liabilities in the preceding table, after netting by taxing jurisdiction and for uncertain tax positions, are in the following captions in the consolidated balance sheets at June 30:(in millions)20242023Noncurrent deferred income tax asset (1)$72 $53 Noncurrent deferred income tax liability (2)(2,044)(2,060)Noncurrent deferred income tax liability transferred to held for sale— (2)Net deferred income tax liability$(1,972)$(2,009)(1)Included in other assets in the consolidated balance sheets.(2)Included in deferred income taxes and other liabilities in the consolidated balance sheets.At June 30, 2024 we had gross federal, state and international loss and credit carryforwards of $401 million, $10.7 billion and $1.1 billion, respectively, the tax effect of which is an aggregate deferred tax asset of $512 million.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "Deferred income taxes arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. The following table presents the components of the deferred income tax assets and liabilities at June 30: (in millions)20232022Deferred income tax assets:Receivable basis difference$44 $41 Accrued liabilities704 675 Share-based compensation29 34 Loss and tax credit carryforwards671 778 Deferred tax assets related to uncertain tax positions39 33 Other53 23 Total deferred income tax assets1,540 1,584 Valuation allowance for deferred income tax assets(421)(468)Net deferred income tax assets$1,119 $1,116 Deferred income tax liabilities:Inventory basis differences$(1,229)$(1,164)Property-related(336)(288)Goodwill and other intangibles(624)(683)Self-Insurance(975)(975)Total deferred income tax liabilities$(3,164)$(3,110)Net deferred income tax liability$(2,045)$(1,994)"
    },
    {
      "status": "MODIFIED",
      "current_title": "Legal proceedings could adversely impact our cash flows or results of operations.",
      "prior_title": "Risk Factors",
      "similarity_score": 0.617,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"Due to the nature of our business, which includes the distribution of controlled substances and other pharmaceutical products and the sourcing, marketing and manufacturing of medical products, we regularly become involved in disputes, litigation and regulatory matters.\"",
        "Removed sentence: \"We also operate in an industry characterized by extensive intellectual property litigation.\"",
        "Removed sentence: \"Patent litigation can result in significant damage awards and injunctions that could prevent the manufacture and sale of affected products or force us to make royalty payments in order to continue selling the affected products.\""
      ],
      "current_body": "Due to the nature of our business, which includes the distribution of controlled substances and other pharmaceutical products and the sourcing, marketing and manufacturing of medical products, we regularly become involved in disputes, litigation and regulatory matters. Litigation is inherently unpredictable, disruptive, and time consuming and the unfavorable outcome of legal proceedings could adversely affect our results of operations or financial condition. For example, we are subject to a number of lawsuits and investigations related to the national health crisis involving the abuse of opioid pain medication as described above in the Risk Factor titled \"Opioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business\" and in Note 8 to the \"Notes to Consolidated Financial Statements.\" Additionally, some of the products that we distribute or manufacture have been and may in the future be alleged to cause personal injury, subjecting us to product liability claims. For example, since July 2021, we have entered into settlement agreements to settle the vast majority of product liability claims alleging personal injuries associated with the use of Cordis OptEase and TrapEase IVC filter products. Future settlements of or judgments for product liability claims may not be covered by insurance or exceed available insurance recoveries. If this happens, and if any such settlement or judgment is in excess of any prior accruals, our results of operations and financial condition could be adversely affected.In connection with legal proceedings, we occasionally enter into settlement agreements or become subject to consent decrees containing ongoing financial or operational obligations, including the injunctive relief provisions of the National Opioid Settlement Agreement and the Corporate Integrity Agreement mentioned above. Failure to comply with obligations under these agreements or decrees could lead to monetary or other penalties.We might infringe intellectual property rights or our own intellectual property protections might be insufficient to protect our commercial interests. As we expand or update our product offerings, we may not be able to timely secure intellectual property protections or customers may prefer certain of our products that are no longer subject to intellectual property protections. Such risks may harm our profit, competitive position and could have an adverse impact on results of operations. Third parties have in the past and may in the future assert infringement claims against us. Litigation and proceedings related to intellectual property are unpredictable, and we might be required to pay significant damages, develop non-infringing products or services, obtain a license, cease selling or using allegedly infringing products or services, or incur other restrictions on our operations. Trade secret, patent, copyright, and trademark laws, nondisclosure obligations, and other contractual provisions are critical to our business. In addition to contractual and technical measures, we might institute resource-intensive litigation to protect our trade secrets, to enforce our patent, copyright, or trademark rights and to determine the scope and validity of the proprietary rights of third parties. Our efforts to protect our intellectual property might be insufficient, and non-infringing products or services equivalent or superior to ours might be developed by competitors.Business & Operational RisksOur business and operations depend on the proper functioning of information systems, critical facilities and distribution networks and could be negatively impacted by events outside of our control.We rely on our and third-party service providers' information systems for a wide variety of critical operations, including to obtain, rapidly process, analyze and manage data to:•facilitate the purchase and distribution of inventory items from numerous distribution centers;•receive, process and ship orders on a timely basis;•manage accurate billing and collections for thousands of customers;•process payments to suppliers;•facilitate manufacturing and assembly of medical products; and•generate financial information. or judgments for product liability claims may not be covered by insurance or exceed available insurance recoveries. If this happens, and if any such settlement or judgment is in excess of any prior accruals, our results of operations and financial condition could be adversely affected. In connection with legal proceedings, we occasionally enter into settlement agreements or become subject to consent decrees containing ongoing financial or operational obligations, including the injunctive relief provisions of the National Opioid Settlement Agreement and the Corporate Integrity Agreement mentioned above. Failure to comply with obligations under these agreements or decrees could lead to monetary or other penalties.",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "Recently Issued Financial Accounting Standards and Disclosure Rules Not Yet Adopted",
      "prior_title": "Recently Issued Financial Accounting Standards Not Yet Adopted",
      "similarity_score": 0.612,
      "confidence": "medium",
      "key_changes": [
        "Reworded sentence: \"We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2023 Form 10-K.\""
      ],
      "current_body": "We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2023 Form 10-K. Segment Reporting In November 2023, the FASB issued Accounting Standards Update (\"ASU\") 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses. This guidance will be effective for us in our fiscal 2025 Form 10-K and the guidance must be applied retrospectively to all prior periods presented. We are currently evaluating the impact of adoption of this guidance on our disclosures. 66Cardinal Health | Fiscal 2024 Form 10-K 66Cardinal Health | Fiscal 2024 Form 10-K 66Cardinal Health | Fiscal 2024 Form 10-K 66 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "We assess the adoption impacts of recently issued accounting standards by the FASB on our consolidated financial statements as well as material updates to previous assessments, if any, from our fiscal 2022 Form 10-K. There were no accounting standards issued in fiscal 2023 that will have a material impact on our consolidated financial statements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Amortization and Other Acquisition-Related Costs",
      "prior_title": "Amortization and Other Acquisition-Related Costs",
      "similarity_score": 0.599,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"These costs consist of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations.\""
      ],
      "current_body": "We classify certain costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings/(loss). These costs consist of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations. Transaction costs are incurred during the initial evaluation of a potential acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as due diligence activities. Integration costs relate to activities required to combine the operations of an acquired enterprise into our operations and, in the case of the significant acquisitions with international operations, to stand-up the systems and processes needed to support an expanded geographic footprint. We record changes in the fair value of contingent consideration obligations relating to acquisitions as income or expense in amortization and other acquisition-related costs. See Note 5 for additional information regarding amortization of acquisition-related intangible assets. We classify certain costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings/(loss). These costs consist of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent consideration obligations. Transaction costs are incurred during the initial evaluation of a potential acquisition and primarily relate to costs to analyze, negotiate and consummate the transaction as well as due diligence activities. Integration costs relate to activities required to combine the operations of an acquired enterprise into our operations and, in the case of the significant acquisitions with international operations, to stand-up the systems and processes needed to support an expanded geographic footprint. We record changes in the fair value of contingent consideration obligations relating to acquisitions as income or expense in amortization and other acquisition-related costs. See Note 5",
      "prior_body": "We classify certain costs incurred in connection with acquisitions as amortization and other acquisition-related costs in our consolidated statements of earnings/(loss). These costs consist of amortization of acquisition-related intangible assets, transaction costs, integration costs and changes in the fair value of contingent 62Cardinal Health | Fiscal 2023 Form 10-K 62Cardinal Health | Fiscal 2023 Form 10-K 62Cardinal Health | Fiscal 2023 Form 10-K 62 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Effective Tax Rate",
      "prior_title": "Effective Tax Rate",
      "similarity_score": 0.597,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate: 202420232022Provision at Federal statutory rate21.0 %21.0 %21.0 %State and local income taxes, net of federal benefit3.1 6.5 2.0 Tax effect of foreign operations(1.6)(5.4)4.7 Nondeductible/nontaxable items(0.1)(1.1)1.2 Impact of Divestitures— (1.9)(4.8)Withholding Taxes1.0 1.0 (1.1)Change in Valuation Allowances(1.1)(5.1)3.5 US Taxes on International Income (2)(2.1)0.6 1.9 Impact of Resolutions with IRS and other related matters 0.4 0.3 1.6 Opioid litigation1.0 0.1 (0.5)Goodwill Impairment8.7 33.8 (49.9)Other (1.4)0.2 0.9 Effective income tax rate28.9 %50.0 %(19.5)% US Taxes on International Income (2) (1) This table reflects fiscal 2024 and 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense.\""
      ],
      "current_body": "The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate: 202420232022Provision at Federal statutory rate21.0 %21.0 %21.0 %State and local income taxes, net of federal benefit3.1 6.5 2.0 Tax effect of foreign operations(1.6)(5.4)4.7 Nondeductible/nontaxable items(0.1)(1.1)1.2 Impact of Divestitures— (1.9)(4.8)Withholding Taxes1.0 1.0 (1.1)Change in Valuation Allowances(1.1)(5.1)3.5 US Taxes on International Income (2)(2.1)0.6 1.9 Impact of Resolutions with IRS and other related matters 0.4 0.3 1.6 Opioid litigation1.0 0.1 (0.5)Goodwill Impairment8.7 33.8 (49.9)Other (1.4)0.2 0.9 Effective income tax rate28.9 %50.0 %(19.5)% US Taxes on International Income (2) (1) This table reflects fiscal 2024 and 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense. (2) Includes the tax impact of Global Intangible Low-Taxed Income (\"GILTI\") tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code. The income tax rate was 28.9%, 50.0% and (19.5)% in fiscal 2024, 2023 and 2022, respectively. Fluctuations in the effective tax rates are primarily due to the impact of goodwill impairment in each of these fiscal years. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may impact our self-insurance loss, which could negatively impact our financial position. Our effective tax rate has benefits from negotiated lower than statutory tax rates in select foreign jurisdictions which individually are not material to our effective tax rate but in aggregate had a favorable tax impact of approximately $23 million during fiscal 2024. As of June 30, 2024, foreign earnings of approximately $1.0 billion are considered indefinitely reinvested for working capital and other offshore investment needs. The computation of tax required if those earnings are repatriated is not practicable. For amounts not considered indefinitely reinvested, we have recorded an immaterial amount of income tax expense in our consolidated financial statements in fiscal 2024.",
      "prior_body": "The following table presents a reconciliation of the provision based on the federal statutory income tax rate to our effective income tax rate: 202320222021Provision at Federal statutory rate21.0 %21.0 %21.0 %State and local income taxes, net of federal benefit6.6 2.2 3.2 Tax effect of foreign operations(4.2)3.5 0.7 Nondeductible/nontaxable items(1.1)1.2 1.6 Impact of Divestitures— (4.9)7.0 Withholding Taxes1.0 (1.1)9.0 Change in Valuation Allowances(5.3)3.5 (1.4)US Taxes on International Income (2)(0.7)3.2 (6.7)Impact of Resolutions with IRS and other related matters 5.8 (0.6)(13.6)Opioid litigation0.1 (0.5)17.7 Goodwill Impairment36.9 (49.5)— Loss Carryback Claims— — (129.9)Other (1.2)0.8 1.7 Effective income tax rate58.9 %(21.2)%(89.7)% US Taxes on International Income (2) (1) This table reflects fiscal 2023 pretax income with tax expense, fiscal 2022 pretax loss with tax expense and fiscal 2021 pretax income with tax benefit. Cardinal Health | Fiscal 2023 Form 10-K71 Cardinal Health | Fiscal 2023 Form 10-K71 Cardinal Health | Fiscal 2023 Form 10-K71 Cardinal Health | Fiscal 2023 Form 10-K 71"
    },
    {
      "status": "MODIFIED",
      "current_title": "Assets Held for Sale",
      "prior_title": "Assets Held for Sale",
      "similarity_score": 0.595,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Upon classification of the disposal group as held for sale, we test the assets for impairment and cease related depreciation and amortization.\""
      ],
      "current_body": "We classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value. We also consider whether an active program to locate a buyer has been initiated and if it is probable that the sale will occur within one year without significant changes to the plan to sell. Upon classification of the disposal group as held for sale, we test the assets for impairment and cease related depreciation and amortization. On May 24, 2024, we signed an agreement to sell the West Campus Dublin, Ohio office space. The transaction is subject to certain contingencies. At June 30, 2024, we met the criteria for the related assets to be classified as held for sale. No loss was recognized during fiscal 2024 due to the expected net proceeds exceeding the carrying value of the related assets. On June 5, 2023, we signed a definitive agreement to contribute our Outcomes™ business to Transaction Data Systems (\"TDS\"), a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity. Upon signing the agreement, we met the criteria for the related assets and liabilities of the Outcomes™ business to be classified as held for sale. The transaction closed on July 10, 2023. See Note 3 for additional information.",
      "prior_body": "We classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value. We also consider whether an active program to locate a buyer has been initiated and if it is probable that the sale will occur within one year without significant changes to the plan to sell. Upon classification of the disposal Cardinal Health | Fiscal 2023 Form 10-K59 Cardinal Health | Fiscal 2023 Form 10-K59 Cardinal Health | Fiscal 2023 Form 10-K59 Cardinal Health | Fiscal 2023 Form 10-K 59"
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Changes to the U.S. healthcare environment may not be favorable to us.",
      "similarity_score": 0.592,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"and increase efficiencies.\"",
        "Reworded sentence: \"Possible changes include changes in legislation or regulations governing prescription pharmaceutical pricing, healthcare services, U.S.-based medical product manufacturing, mandated benefits, efforts to promote increased transparency in the pharmaceutical supply chain, drug shortages, further reduction of or limitations on governmental funding at the state or federal level or efforts by healthcare insurance companies to further limit payments for products and services.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "Over a number of years, the U.S. healthcare industry has undergone significant changes designed to increase access to medical care, improve safety and patient outcomes, contain costs and increase efficiencies. These changes include a general decline in Medicare and Medicaid reimbursement levels, efforts by healthcare insurance companies to limit or reduce payments to pharmacies and providers, the basis for payments beginning to transition from a fee-for-service model to value-based payments and risk-sharing models and the industry shifting away from traditional healthcare venues like hospitals and into clinics, physician offices and patients’ homes. We expect the U.S. healthcare industry to continue to change significantly in the future. Possible changes include changes in legislation or regulations governing prescription pharmaceutical pricing, healthcare services, mandated benefits, efforts to promote increased transparency in the pharmaceutical supply chain, including with respect to Pharmacy Benefit Managers, further reduction of or limitations on governmental funding at the state or federal level or efforts by healthcare insurance companies to further limit payments for products and services. These possible changes, and the uncertainty surrounding these possible changes, may directly or indirectly adversely affect us."
    },
    {
      "status": "MODIFIED",
      "current_title": "Balance at end of fiscal year",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.587,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S.\"",
        "Reworded sentence: \"As a result of our IRS audit settlements and carryback claim, an immaterial amount of interest was recorded in fiscal 2024, 2023 and 2022.\""
      ],
      "current_body": "It is reasonably possible that there could be a change in the amount of unrecognized tax benefits within the next 12 months due to activities of the U.S. Internal Revenue Service (\"IRS\") or other taxing authorities, possible settlement of audit issues, reassessment of existing unrecognized tax benefits or the expiration of statutes of limitations. We estimate that the range of the possible change in unrecognized tax benefits within the next 12 months is between zero and a net decrease of up to $20 million, exclusive of penalties and interest. We recognize accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At June 30, 2024, 2023 and 2022, we had $65 million, $65 million and $48 million, respectively, accrued for the payment of interest and penalties. These balances are gross amounts before any tax benefits and are included in deferred income taxes and other liabilities in the consolidated balance sheets. As a result of our IRS audit settlements and carryback claim, an immaterial amount of interest was recorded in fiscal 2024, 2023 and 2022.",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "Risk Factors",
      "similarity_score": 0.578,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"result in the loss of future business opportunities or negatively impact our ability to attract and retain qualified talent.\"",
        "Reworded sentence: \"Any such proxy contests, actions or requests, or the mere public presence of activist shareholders, may cause the market price for our shares to experience volatility, which could be significant.Our business could be affected by events outside of our control including global climate change-related physical and transitional risks, public health crises, natural disasters, geopolitical and other catastrophic events.The long-term impacts of climate change are widespread and difficult to predict.\"",
        "Reworded sentence: \"If we are unable to offset margin reductions caused by these pressures through steps such as sourcing or cost control measures, additional service offerings and sales of higher margin products, our results of operations could continue to be adversely affected.Our Pharmaceutical and Specialty Solutions segment’s profit margin could be adversely affected by changes in industry or market dynamics that we are not able to accurately predict.\"",
        "Reworded sentence: \"If performance of our generic pharmaceutical program declines in future fiscal years and we are unable to offset the decline, our Pharmaceutical and Specialty Solutions segment profit and consolidated operating earnings will be adversely affected.With respect to branded pharmaceutical products, compensation under our contractual arrangements with manufacturers for the purchase of branded pharmaceutical products is generally based on the wholesale acquisition cost set by the manufacturer.\"",
        "Reworded sentence: \"Any such proxy contests, actions or requests, or the mere public presence of activist shareholders, may cause the market price for our shares to experience volatility, which could be significant.Our business could be affected by events outside of our control including global climate change-related physical and transitional risks, public health crises, natural disasters, geopolitical and other catastrophic events.The long-term impacts of climate change are widespread and difficult to predict.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations. We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above, but the defense and resolution of current and future lawsuits and investigations are subject to uncertainty and could have a material adverse effect on our results of operations, financial condition, cash flows or liquidity beyond the amounts accrued and beyond what we may be able to recover from our insurers. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Other legislative, regulatory or industry measures related to the public health crisis involving the abuse of prescription opioid pain medication and the distribution of these medications could affect our business in ways that we may not be able to predict. For example, several states have adopted or proposed taxes or other fees on the sale of opioids. These laws and proposals vary in the tax amounts imposed and the means of calculation. Liabilities for taxes or assessments under any such laws could have an adverse impact on our results of operations unless we are able to mitigate them through operational changes or commercial arrangements where permitted. Additionally, certain states have proposed legislation that may conflict with certain requirements of the National Opioid Settlement Agreement. Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications, as well as the continued proliferation of the opioid lawsuits, investigations, regulations and legislative actions and unfavorable publicity in relation to those lawsuits could continue to have a material adverse effect on our reputation or results of operations.Our business is subject to other rigorous quality, regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain has been named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits include state attorneys general, counties and municipalities, as well as private parties, such as unions and other health and welfare funds, hospital systems and other healthcare providers, businesses and individuals. We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices. In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.In addition to the claims covered by the National Opioid Settlement Agreement, we are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware."
    },
    {
      "status": "MODIFIED",
      "current_title": "Loss Contingencies",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.574,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.\"",
        "Reworded sentence: \"We have reached agreements in principle with counsel representing classes of third-party payors and acute care hospitals, and we are engaged in resolution discussions with the City of Baltimore.\"",
        "Reworded sentence: \"We recognize these estimated loss contingencies, income from favorable resolution of litigation and certain defense costs in litigation (recoveries)/charges, net in our consolidated statements of earnings/(loss).\""
      ],
      "current_body": "We accrue for contingencies related to disputes, litigation and regulatory matters if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In connection with the opioid litigation as described further in Note 8, we recorded pre-tax charges of $5.63 billion during fiscal 2021, which were retained at Corporate. In February 2022, we and two other national distributors announced that each company had determined that a sufficient number of political subdivisions had agreed to participate in the previously disclosed settlement agreement (the \"National Opioid Settlement Agreement\") to settle the vast majority of the opioid lawsuits filed by states and local governmental entities. This National Opioid Settlement Agreement became effective on April 2, 2022. We have reached agreements in principle with counsel representing classes of third-party payors and acute care hospitals, and we are engaged in resolution discussions with the City of Baltimore. In connection with these matters, as of June 30, 2024, we have accrued $363 million, which reflects our current estimate of probable loss for these matters. The agreements in principle remain subject to contingencies. We develop and periodically update reserve estimates for all litigation matters, including the Cordis OptEase and TrapEase inferior vena cava (\"IVC\") claims received to date and expected to be received in the future and related costs. To project future IVC claim costs, we use a methodology based largely on recent experience, including claim filing rates, blended average payout influenced by claim severity, historical sales data, implant and injury to report lag patterns and estimated defense costs. The amount of ultimate loss may differ materially from these estimates. We recognize these estimated loss contingencies, income from favorable resolution of litigation and certain defense costs in litigation (recoveries)/charges, net in our consolidated statements of earnings/(loss). See Note 8 for additional information regarding loss contingencies and product liability lawsuits.",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidation in the U.S. healthcare industry may negatively impact our results of operations.",
      "prior_title": "Consolidation in the U.S. healthcare industry may negatively impact our results of operations.",
      "similarity_score": 0.574,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers and pharmacy chains, among others, have consolidated or formed strategic alliances.\"",
        "Removed sentence: \"Changes or uncertainty in U.S.\"",
        "Removed sentence: \"or international trade policies and exposure to economic, political and currency and other risks could disrupt our global operations or negatively impact our financial results.We conduct our operations in various regions of the world outside of the United States, including Europe, Asia and Latin America.\"",
        "Removed sentence: \"Global developments can affect our business in many ways.\"",
        "Removed sentence: \"Our global operations are affected by local economic environments, including inflation, recession and competition.\""
      ],
      "current_body": "In recent years, U.S. healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers and pharmacy chains, among others, have consolidated or formed strategic alliances. Consolidations create larger enterprises with greater negotiating power and could result in the possible loss of a customer in the situation where the combined enterprise selects one distributor from two incumbents or a reduction in our ability to market our products and services to new customers. Consolidations also impact other objectives, including our ability to use acquisitions to expand or complement our existing businesses. If this consolidation trend continues, it could adversely affect our results of operations.",
      "prior_body": "In recent years, U.S. healthcare industry participants, including distributors, manufacturers, suppliers, healthcare providers, insurers and pharmacy chains, have consolidated or formed strategic alliances. Consolidations create larger enterprises with greater negotiating power, and also could result in the possible loss of a customer where the combined enterprise selects one distributor from two incumbents. If this consolidation trend continues, it could adversely affect our results of operations. Changes or uncertainty in U.S. or international trade policies and exposure to economic, political and currency and other risks could disrupt our global operations or negatively impact our financial results.We conduct our operations in various regions of the world outside of the United States, including Europe, Asia and Latin America. Global developments can affect our business in many ways. Our global operations are affected by local economic environments, including inflation, recession and competition. Additionally, divergent or unfamiliar regulatory systems and labor markets can increase the risks and burdens of operating in numerous countries.Our foreign operations expose us to a number of risks related to trade protection laws, tariffs, excise or other border taxes on goods sourced from certain countries or on the importation or exportation of products or raw materials. Changes or uncertainty in U.S. or international trade policies or tariffs could impact our global operations, as well as our customers and suppliers. We may be required to spend more money to source certain products or materials that we need or to manufacture certain of our products. This could adversely impact our business and results of operations.In addition, we conduct our business in U.S. dollars and various functional currencies of our foreign subsidiaries. Changes in foreign currency exchange rates could adversely affect our financial results, which are reported in U.S. dollars. We may not be able to hedge to protect us against these exposures, and any hedges may not successfully mitigate these exposures.Geopolitical dynamics caused by political, economic, social or other conditions in foreign countries and regions may continue to impact our business and results of operations. Both of our segments have experienced increased costs in fiscal years 2022 and 2023, including for fuel, and it is possible that we could experience supply disruptions or shortages if tariffs or other protective measures are enacted."
    },
    {
      "status": "MODIFIED",
      "current_title": "Risk Factors",
      "prior_title": "challenges to our tax positions.",
      "similarity_score": 0.563,
      "confidence": "low",
      "key_changes": [
        "Added sentence: \"products and submitted a timely and comprehensive response to the warning letter describing our investigation and corrective actions, and we continue to cooperate with the FDA on this matter.We are also subject to government import and export controls and regulations, including the requirement that we make a determination, based on the best information that we have available at the time, as to the country of origin of products that we source or manufacture outside the United States.\"",
        "Added sentence: \"Customs and Border protection may challenge our determinations, which have resulted in products being detained and supply disruptions, and which could result in the imposition of fines and penalties.\"",
        "Added sentence: \"In addition, the Uyghur Forced Labor Prevention Act, which went into effect in June 2022, prohibits the importation of any goods grown, produced, manufactured or mined, wholly or in part, in the Xinjiang Uyghur Autonomous Region of China unless importers can provide clear and convincing evidence that goods were not made using forced labor.\"",
        "Added sentence: \"We have experienced supply constraints as a result of these and similar regulations, and it is possible that our business or results of operations could be further negatively impacted by future determinations and disruptions.Such events cause the company to incur additional time, cost and effort to ensure compliance with complex regulations.\"",
        "Added sentence: \"Noncompliance or concerns over noncompliance, including by suppliers, as a result of use of third party manufactures, or planned shifts in production sites, has in the past, and may in the future result in substantial modifications to our business practices and operations.\""
      ],
      "current_body": "The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either individually or in the aggregate, could have a negative impact on our results of operations.We have also received federal grand jury subpoenas issued in connection with investigations being conducted by the U.S. Attorney's Office for the Eastern District of New York and the Fraud Section of the U.S. Department of Justice (\"DOJ\"). We have also received civil subpoenas and other requests for information from other DOJ offices.We are involved in legal proceedings with insurers related to the availability of insurance coverage for some matters described above and our ability to recover losses from our insurers is uncertain. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may negatively impact our ability to receive indemnification under our insurance policies.Ongoing unfavorable publicity regarding the abuse or misuse of prescription opioid pain medications and the role of wholesale distributors in the supply chain of such prescription medications could continue to have an adverse effect on our reputation or results of operations.Our business is subject to rigorous regulatory and licensing requirements.As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected.To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition.We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.Legal, Regulatory & Compliance RisksOpioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business.Cardinal Health, along with other pharmaceutical wholesalers and other participants in the pharmaceutical supply chain, was named as a defendant in lawsuits related to the distribution of opioid pain medications. Plaintiffs in these lawsuits included state attorneys general, counties and municipalities.In April 2022, an agreement settling the vast majority of opioid-related lawsuits filed against us by state and local governmental entities (the \"National Opioid Settlement Agreement\") became effective. Under the National Opioid Settlement Agreement, we agreed to pay up to approximately $6.3 billion over 18 years. The National Opioid Settlement Agreement also includes injunctive relief terms relating to distributors' controlled substance anti-diversion programs. A monitor will oversee compliance with these provisions until 2027. In addition, the distributors agreed to engage a third-party vendor to act as a clearinghouse for data aggregation and reporting, which the distributors will fund until 2032. It is possible that the maintenance of the required changes to distributors' controlled substance anti-diversion programs may result in unforeseen costs or operational challenges which could have an adverse impact on our results of operations or performance. If we are unable to comply with these requirements, or are alleged to have failed to comply with these requirements, we could incur unforeseen costs or penalties, and our financial results may be negatively impacted.The National Opioid Settlement Agreement did not resolve all lawsuits brought by political subdivisions. We continue to engage in resolution discussions with certain nonparticipating political subdivisions. A trial in the case brought by the city of Baltimore, which is the largest remaining nonparticipating subdivision by population, is scheduled to begin in September 2024. We intend to defend ourselves vigorously against all remaining lawsuits; however, litigation is inherently unpredictable and unfavorable developments or resolutions can occur.We are also being sued by private plaintiffs, such as unions, other health and welfare funds, hospital systems, third party payors, other healthcare providers and individuals alleging personal injury for the same activities and could be named as a defendant in additional lawsuits. We intend to vigorously defend ourselves against these lawsuits; however, legal proceedings are inherently unpredictable and it is possible that these lawsuits, either The risks described below could materially and adversely affect our results of operations, financial condition, liquidity or cash flows. These are not the only risks we face. Our businesses also could be affected by risks we do not currently consider material to our operations or of which we are not presently aware.",
      "prior_body": "We are a large multinational corporation with operations in the United States and many foreign countries. As a result, we are subject to the tax laws of many jurisdictions. From time to time, proposals are made in the United States and other jurisdictions in which we operate that could adversely affect our tax positions, effective tax rate or tax payments. Specific initiatives that may impact us include possible increases in U.S. or foreign corporate income tax rates or other changes in tax law to raise revenue, the repeal of the LIFO (last-in, first-out) method of inventory accounting for income tax purposes, the establishment or increase in taxation at the U.S. state level on the basis of gross revenues, recommendations of the base erosion and profit shifting project undertaken by the Organization for Economic Cooperation and Development and the European Commission’s investigation into illegal state aid. In August 2022, the U.S. federal government enacted the Inflation Reduction Act, which imposed a 15 percent corporate minimum tax on certain large corporations and a 1 percent tax on share repurchases after December 31, 2022. These provisions may adversely impact our financial position and results of operations. Additionally, in connection with the accruals taken in connection with opioid-related lawsuits in fiscal year 2021, we recorded a net tax benefit, reflecting our current assessment of the estimated future deductibility of the amount that may be paid. We have made reasonable estimates and recorded amounts based on management's judgment and our current understanding of the U.S. Tax Cuts and Act (\"Tax Act\"); however, these estimates require significant judgment and it is possible that they could be subject to challenges by the U.S. Internal Revenue Service (\"IRS\"). The U.S. tax law governing deductibility was changed by the Tax Act. The taxing authorities could challenge our interpretation of the Tax Act or the estimates and assumptions used to assess the future deductibility of these benefits, or tax law could change again. We also regularly review these estimates and assumptions from time to time and adjust our accruals based on our review, resulting in changes in our tax provisions/(benefit). The actual amount of tax benefit related to uncertain tax positions may differ materially from these estimates. See Note 8 of the \"Notes to Consolidated Financial Statements\" for more information regarding these matters. In fiscal year 2021, our provision for income taxes reflected a $424 million benefit from the tax benefits of a self-insurance pre-tax net operating loss carryback under the Coronavirus Aid, Relief and Economic Security (\"CARES\") Act. Also, as a result of this net operating loss carryback, we received a U.S. federal income tax refund of $966 million. It is possible that the IRS could challenge our tax position with respect to this self-insurance loss. If these initiatives are successful, our effective tax rate or cash flows could be adversely impacted. Additionally, laws governing insurance coverage vary by state and some state courts have interpreted laws and insurance policies in ways that may impact our self- insurance loss, which could negatively impact our financial position. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. Tax laws are complex and subject to varying interpretations. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year. Proposed adjustments in ongoing audits may adversely affect our effective tax rate or tax payments.Changes to the U.S. healthcare environment may not be favorable to us. Over a number of years, the U.S. healthcare industry has undergone significant changes designed to increase access to medical care, improve safety and patient outcomes, contain costs and increase efficiencies. These changes include a general decline in Medicare and Medicaid reimbursement levels, efforts by healthcare insurance companies to limit or reduce payments to pharmacies and providers, the basis for payments beginning to transition from a fee-for-service model to value-based payments and risk-sharing models and the industry shifting away from traditional healthcare venues like hospitals and into clinics, physician offices and patients’ homes.We expect the U.S. healthcare industry to continue to change significantly in the future. Possible changes include changes in legislation or regulations governing prescription pharmaceutical pricing, healthcare services, mandated benefits, efforts to promote increased transparency in the pharmaceutical supply chain, including with respect to Pharmacy Benefit Managers, further reduction of or limitations on governmental funding at the state or federal level or efforts by healthcare insurance companies to further limit payments for products and services. These possible changes, and the uncertainty surrounding these possible changes, may directly or indirectly adversely affect us.Legal proceedings could adversely impact our cash flows or results of operations.Due to the nature of our business, which includes the distribution of controlled substances and other pharmaceutical products and the sourcing, marketing and manufacturing of medical products, we regularly become involved in disputes, litigation and regulatory matters. Litigation is inherently unpredictable and the unfavorable outcome of legal proceedings could adversely affect our results of operations or financial condition.For example, we are subject to a number of lawsuits and investigations related to the national health crisis involving the abuse of opioid pain medication as described above in the Risk Factor titled \"Opioid-related legal proceedings and the National Opioid Settlement Agreement we have entered into could have additional or unexpected negative effects on our results of operations or business\" and in Note 7 to the \"Notes to Consolidated Financial Statements.\"Additionally, some of the products that we distribute or manufacture have been and may in the future be alleged to cause personal injury, subjecting us to product liability claims. For example, since July 2021, we have entered into settlement insurance loss, which could negatively impact our financial position. We file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and various foreign jurisdictions. Tax laws are complex and subject to varying interpretations. With few exceptions, we are subject to audit by taxing authorities for fiscal years 2015 through the current fiscal year. Proposed adjustments in ongoing audits may adversely affect our effective tax rate or tax payments."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "13. Segment Information",
      "similarity_score": 0.56,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Segment Information Effective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and GMPD segment.\"",
        "Reworded sentence: \"Our previously reported segment results have been recast to conform to this re-aligned reporting structure and reflect changes in the elimination of inter-segment revenue and allocated corporate technology and shared function expenses, which are driven by the reporting structure change.Our Pharmaceutical and Specialty Solutions segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "Our operations are principally managed on a products and services basis and are comprised of two operating segments, which are the same as our reportable segments: Pharmaceutical and Medical. The factors for determining the reportable segments include the manner in which management evaluates performance for purposes of allocating resources and assessing performance combined with the nature of the individual business activities. Revenue Our Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical and over-the-counter healthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; provides pharmacy management services to hospitals and operates a limited number of pharmacies, including pharmacies in community health centers; operates nuclear pharmacies and radiopharmaceutical manufacturing facilities; and repackages generic pharmaceuticals and over-the-counter healthcare products. Our Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products, which are sold in the United States, Canada, Europe, Asia and other markets. In addition to distributing Cardinal Health branded products, this segment also distributes a broad range of medical, surgical and laboratory products known as national brand products and provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. This segment also distributes medical products to patients' homes in the United States through our Cardinal Health at-Home Solutions division.The following table presents revenue for each reportable segment and Corporate:(in millions)202320222021Pharmaceutical$190,009 $165,491 $145,796 Medical15,014 15,887 16,687 Total segment revenue205,023 181,378 162,483 Corporate (1)(11)(14)(16)Total revenue$205,012 $181,364 $162,467 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments.The following table presents revenue for each reportable segment and disaggregated revenue within our two reportable segments and Corporate:(in millions)202320222021Pharmaceutical and Specialty Pharmaceutical Distribution and Services (1)$188,812 $164,580 $144,988 Nuclear and Precision Health Solutions (2)1,197 911 808 Pharmaceutical segment revenue190,009 165,491 145,796 Medical Products and Distribution (3)12,374 13,462 14,485 Cardinal Health at-Home Solutions2,640 2,425 2,202 Medical segment revenue15,014 15,887 16,687 Total segment revenue205,023 181,378 162,483 Corporate (4)(11)(14)(16)Total revenue$205,012 $181,364 $162,467 other markets. In addition to distributing Cardinal Health branded products, this segment also distributes a broad range of medical, surgical and laboratory products known as national brand products and provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. This segment also distributes medical products to patients' homes in the United States through our Cardinal Health at-Home Solutions division. The following table presents revenue for each reportable segment and Corporate: (in millions)202320222021Pharmaceutical$190,009 $165,491 $145,796 Medical15,014 15,887 16,687 Total segment revenue205,023 181,378 162,483 Corporate (1)(11)(14)(16)Total revenue$205,012 $181,364 $162,467 (1)Corporate revenue consists of the elimination of inter-segment revenue and other revenue not allocated to the segments. The following table presents revenue for each reportable segment and disaggregated revenue within our two reportable segments and Corporate: (in millions)202320222021Pharmaceutical and Specialty Pharmaceutical Distribution and Services (1)$188,812 $164,580 $144,988 Nuclear and Precision Health Solutions (2)1,197 911 808 Pharmaceutical segment revenue190,009 165,491 145,796 Medical Products and Distribution (3)12,374 13,462 14,485 Cardinal Health at-Home Solutions2,640 2,425 2,202 Medical segment revenue15,014 15,887 16,687 Total segment revenue205,023 181,378 162,483 Corporate (4)(11)(14)(16)Total revenue$205,012 $181,364 $162,467 Pharmaceutical segment revenue Medical segment revenue Cardinal Health | Fiscal 2023 Form 10-K77 Cardinal Health | Fiscal 2023 Form 10-K77 Cardinal Health | Fiscal 2023 Form 10-K77 Cardinal Health | Fiscal 2023 Form 10-K 77"
    },
    {
      "status": "MODIFIED",
      "current_title": "Our business is subject to rigorous regulatory and licensing requirements.",
      "prior_title": "Our business is subject to other rigorous quality, regulatory and licensing requirements.",
      "similarity_score": 0.555,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S.\""
      ],
      "current_body": "As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with U.S. federal, state and foreign and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by suppliers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. If we fail to comply with regulatory requirements, or if allegations are made that we fail to comply, our results of operations and financial condition could be adversely affected. To lawfully operate our businesses, we are required to obtain and hold permits, product registrations, licenses and other regulatory approvals from, and to comply with operating and security standards of, numerous governmental bodies. Failure to maintain or renew necessary permits, product registrations, licenses or approvals, or to comply with required standards, could have an adverse effect on our results of operations and financial condition. We are required to comply with laws relating to healthcare fraud and abuse. The requirements of these laws are complex and subject to varying interpretations. From time to time, regulatory authorities investigate our policies or practices, and may challenge them. For example, in November 2023, we received a Civil Investigative Demand (\"CID\") from the Department of Justice focused on potential violations of the Anti-Kickback Statute and False Claims Act in connection with a 2022 transaction in which we purchased a group purchasing organization and a minority ownership interest in a rheumatology managed services 34Cardinal Health | Fiscal 2024 Form 10-K 34Cardinal Health | Fiscal 2024 Form 10-K 34Cardinal Health | Fiscal 2024 Form 10-K 34 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "As described in greater detail in the \"Business\" section, products that we manufacture, source, distribute or market must comply with quality and regulatory requirements. Noncompliance or concerns over noncompliance, including noncompliance by third-party contract manufacturers, has in the past, and may in the future result in suspension of our ability to distribute, import, manufacture or source products, as well as product bans, recalls, safety alerts or seizures, or criminal or civil sanctions, which, in turn, could result in product liability claims and lawsuits, including class actions. In addition, it can be costly and time-consuming to obtain regulatory approvals or product registrations to market a medical device or other product, and such approvals or registrations might not be granted on a timely basis, if at all. Also as described in greater detail in the \"Business\" section, our business is highly regulated in the United States, at both the federal and state level, and in foreign countries. If we fail to comply with regulatory requirements, or if allegations are made that we fail 36Cardinal Health | Fiscal 2023 Form 10-K 36Cardinal Health | Fiscal 2023 Form 10-K 36Cardinal Health | Fiscal 2023 Form 10-K 36 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Consolidated Statements of Earnings/(Loss)",
      "prior_title": "Consolidated Statements of Earnings/(Loss)",
      "similarity_score": 0.551,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"(in millions, except per common share amounts)202420232022Revenue$226,827 $204,979 $181,326 Cost of products sold219,413 198,105 174,842 Gross margin7,414 6,874 6,484 Operating expenses:Distribution, selling, general and administrative expenses5,000 4,800 4,512 Restructuring and employee severance175 95 101 Amortization and other acquisition-related costs284 285 324 Impairments and (gain)/loss on disposal of assets, net634 1,246 2,060 Litigation (recoveries)/charges, net78 (304)94 Operating earnings/(loss)1,243 752 (607)Other (income)/expense, net(9)5 22 Interest expense, net51 84 147 Loss on early extinguishment of debt— — 10 (Gain)/Loss on sale of equity interest in naviHealth— — (2)Earnings/(loss) before income taxes1,201 663 (784)Provision for income taxes348 332 153 Net earnings/(loss)853 331 (937)Less: Net earnings attributable to noncontrolling interests(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc.\""
      ],
      "current_body": "(in millions, except per common share amounts)202420232022Revenue$226,827 $204,979 $181,326 Cost of products sold219,413 198,105 174,842 Gross margin7,414 6,874 6,484 Operating expenses:Distribution, selling, general and administrative expenses5,000 4,800 4,512 Restructuring and employee severance175 95 101 Amortization and other acquisition-related costs284 285 324 Impairments and (gain)/loss on disposal of assets, net634 1,246 2,060 Litigation (recoveries)/charges, net78 (304)94 Operating earnings/(loss)1,243 752 (607)Other (income)/expense, net(9)5 22 Interest expense, net51 84 147 Loss on early extinguishment of debt— — 10 (Gain)/Loss on sale of equity interest in naviHealth— — (2)Earnings/(loss) before income taxes1,201 663 (784)Provision for income taxes348 332 153 Net earnings/(loss)853 331 (937)Less: Net earnings attributable to noncontrolling interests(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc. $852 $330 $(938)Earnings/(loss) per common share attributable to Cardinal Health, Inc.Basic$3.48 $1.27 $(3.37)Diluted3.45 1.26 (3.37)Weighted-average number of common shares outstanding:Basic245261279Diluted247262279 Provision for income taxes The accompanying notes are an integral part of these consolidated statements. 52Cardinal Health | Fiscal 2024 Form 10-K 52Cardinal Health | Fiscal 2024 Form 10-K 52Cardinal Health | Fiscal 2024 Form 10-K 52 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "(in millions, except per common share amounts)202320222021Revenue$205,012 $181,364 $162,467 Cost of products sold198,123 174,819 155,689 Gross margin6,889 6,545 6,778 Operating expenses:Distribution, selling, general and administrative expenses4,834 4,557 4,533 Restructuring and employee severance95 101 114 Amortization and other acquisition-related costs285 324 451 Impairments and (gain)/loss on disposal of assets, net1,250 2,050 79 Litigation (recoveries)/charges, net(302)109 1,129 Operating earnings/(loss)727 (596)472 Other (income)/expense, net(4)16 (47)Interest expense, net93 149 180 Loss on early extinguishment of debt— 10 14 (Gain)/Loss on sale of equity interest in naviHealth— (2)2 Earnings/(loss) before income taxes638 (769)323 Provision for/(benefit from) income taxes376 163 (289)Net earnings/(loss)262 (932)612 Less: Net earnings attributable to noncontrolling interests(1)(1)(1)Net earnings/(loss) attributable to Cardinal Health, Inc. $261 $(933)$611 Earnings/(loss) per common share attributable to Cardinal Health, Inc.Basic$1.00 $(3.35)$2.09 Diluted1.00 (3.35)2.08 Weighted-average number of common shares outstanding:Basic261279292Diluted262279294 The accompanying notes are an integral part of these consolidated statements. 52Cardinal Health | Fiscal 2023 Form 10-K 52Cardinal Health | Fiscal 2023 Form 10-K 52Cardinal Health | Fiscal 2023 Form 10-K 52 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Consolidated Financial Statements",
      "similarity_score": 0.545,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The following tables set forth our revisions to the consolidated statements of cash flows for fiscal 2023 and 2022.\"",
        "Reworded sentence: \"Actual amounts may differ from these estimated amounts.Updated Segment Reporting StructureEffective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and Global Medical Products and Distribution (\"GMPD\") segment.\"",
        "Reworded sentence: \"Finance notes, net and related accrued interest were $43 million (current portion $14 million) and $56 million (current portion $9 million) at June 30, 2024 and 2023, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets.\"",
        "Reworded sentence: \"Actual amounts may differ from these estimated amounts.Updated Segment Reporting StructureEffective January 1, 2024, we operated under an updated organizational structure and re-aligned our reporting structure under two reportable segments: Pharmaceutical and Specialty Solutions segment and Global Medical Products and Distribution (\"GMPD\") segment.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "1. Basis of Presentation and Summary of Significant Accounting Policies Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires.Our fiscal year ends on June 30. References to fiscal 2023, 2022 and 2021 in these consolidated financial statements are to the fiscal years ended June 30, 2023, 2022 and 2021, respectively.Basis of PresentationOur consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of EstimatesOur consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation and reserves, goodwill and other intangible asset impairment, vendor reserves, loss contingencies (including product liability and self-insurance accruals) and income taxes. Actual amounts may differ from these estimated amounts.Cash EquivalentsWe consider liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value.Receivables and Allowance for Doubtful AccountsTrade receivables are presented net of an allowance for doubtful accounts of $299 million and $273 million at June 30, 2023 and 2022, respectively. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We regularly monitor past due accounts and establish appropriate reserves to cover potential losses, and consider historical experience, pricing discrepancies, the current economic environment, customer credit ratings or bankruptcies and reasonable and supportable forecasts to develop our allowance for credit losses. We review these factors quarterly to determine if any adjustments are needed to the allowance. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.We provide financing to various customers. Such financing arrangements range from 1 year to 5 years at interest rates that are generally subject to fluctuation. Interest income on these arrangements is recognized as it is earned. The financings may be collateralized, guaranteed by third parties or unsecured. Finance notes, net and related accrued interest were $56 million (current portion $9 million) and $63 million (current portion $12 million) at June 30, 2023 and 2022, respectively, and are included in other assets (current portion is included in prepaid expenses and other) in the consolidated balance sheets. Finance notes receivable allowance for doubtful accounts were $6 million and $8 million at June 30, 2023 and 2022, respectively. We estimate an allowance for these financing receivables based on historical collection rates and the creditworthiness of the customer. We write off any amounts deemed uncollectible against the established allowance for doubtful accounts.Concentrations of Credit RiskWe maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments, and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses.Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with certain large customers and with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. With respect to customers in the retail and healthcare sectors, such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform regular credit evaluations of our customers’ financial conditions and maintain reserves for losses through the established allowance for doubtful accounts. Historically, such losses have been within our expectations. Refer to the \"Receivables and Allowance for Doubtful Accounts\" section within this Note for additional information on the accounting treatment of reserves for allowance for doubtful accounts. Major CustomersCVS Health Corporation (\"CVS Health\") and OptumRx, are our only customers that individually account for at least 10 percent of revenue and gross trade receivables. These customers are primarily serviced through our Pharmaceutical segment. 1. Basis of Presentation and Summary of Significant Accounting Policies Cardinal Health, Inc. is a global healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency. References to “we,” “our,” \"us,\" and similar pronouns in these consolidated financial statements are to Cardinal Health, Inc. and its majority-owned or controlled subsidiaries, unless the context otherwise requires.Our fiscal year ends on June 30. References to fiscal 2023, 2022 and 2021 in these consolidated financial statements are to the fiscal years ended June 30, 2023, 2022 and 2021, respectively.Basis of PresentationOur consolidated financial statements include the accounts of all majority-owned or controlled subsidiaries, and all significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation. Use of EstimatesOur consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation and reserves, goodwill and other intangible asset impairment, vendor reserves, loss contingencies (including product liability and self-insurance accruals) and income taxes. Actual amounts may differ from these estimated amounts.Cash EquivalentsWe consider liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value.Receivables and Allowance for Doubtful AccountsTrade receivables are presented net of an allowance for doubtful accounts of $299 million and $273 million at June 30, 2023 and 2022, respectively. An account is considered past due on the first day after its due date. In accordance with contract terms, we generally have the ability to charge customers service fees or higher prices if an account is considered past due. We regularly monitor past due accounts and establish appropriate reserves to cover potential losses, and consider historical experience, pricing"
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.544,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Antitrust Litigation ProceedsWe recognized income for net recoveries in class action antitrust lawsuits in which we were a class member or plaintiff of $117 million, $130 million and $18 million during fiscal 2024, 2023 and 2022, respectively.9.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Notes to Financial Statements",
      "prior_title": "Notes to Financial Statements",
      "similarity_score": 0.532,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"In 2022, we entered into separate agreements to settle the opioid-related claims of the majority of remaining West Virginia subdivisions and Native American Tribes for approximately $124 million over eleven years and $136 million over five years, respectively.\"",
        "Reworded sentence: \"and Canada, which we retained.In April 2023, we executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,375 claims for $275 million.\"",
        "Reworded sentence: \"Between May and September 2023, we made settlement payments totaling $275 million into a qualified settlement fund, which will be disbursed to the plaintiffs if required conditions are satisfied.\"",
        "Reworded sentence: \"In July 2022, the indirect purchasers filed an amended complaint and in August 2022, we filed a motion to dismiss the amended complaint.\"",
        "Reworded sentence: \"and Canada, which we retained.In April 2023, we executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,375 claims for $275 million.\""
      ],
      "current_body": "The following tables set forth our revisions to the consolidated statements of comprehensive income/(loss) for fiscal 2023 and 2022. Fiscal 2023Fiscal 2022(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedNet earnings/(loss)$262 $69 $331 $(932)$(5)$(937)Total comprehensive income/(loss), net of tax225 69 294 (1,012)(5)(1,017)Total comprehensive income/(loss) attributable to Cardinal Health, Inc.224 69 293 (1,013)(5)(1,018) Total comprehensive income/(loss), net of tax Total comprehensive income/(loss) attributable to Cardinal Health, Inc. The following tables set forth our revisions to the consolidated balance sheets for fiscal 2023. June 30, 2023(in millions)As ReportedAdjustmentAs RevisedCash and equivalents$4,043 $33 $4,076 Trade receivables, net11,344 (236)11,108 Inventories, net15,940 179 16,119 Prepaid expenses and other2,362 (68)2,294 Assets held for sale144 (4)140 Total current assets33,833 (96)33,737 Property and equipment, net2,462 (1)2,461 Goodwill and other intangibles, net6,081 4 6,085 Other assets1,041 25 1,066 Total assets43,417 (68)43,349 Accounts payable29,813 121 29,934 Other accrued liabilities3,059 (87)2,972 Total current liabilities33,706 34 33,740 Deferred income taxes and other liabilities8,653 4 8,657 Common shares, without par value2,747 (1)2,746 Accumulated deficit(534)(108)(642)Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively(4,914)3 (4,911)Total Cardinal Health, Inc. shareholders' deficit(2,852)(106)(2,958)Total shareholders’ deficit(2,851)(106)(2,957)Total liabilities and shareholders’ deficit43,417 (68)43,349 Common shares in treasury, at cost: 83 million shares and 76 million shares at June 30, 2024 and 2023, respectively The following tables set forth our revisions to the consolidated statements of shareholders' equity/(deficit) for fiscal 2023 and 2022. Common SharesRetained Earnings/(Accumulated Deficit)Treasury SharesTotal Shareholders' Deficit(in millions)As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs RevisedBalance at June 30, 2021$2,806 $— $2,806 $1,205 $(172)$1,033 $(2,186)$1 $(2,185)$1,794 $(171)$1,623 Net earnings— — — (933)(5)(938)— — — (932)(5)(937)Employee stock plans activity, net of shares withheld for employee taxes7 — 7 — — — 58 (1)57 65 (1)64 Other— — — — 1 1 — — — (1)1 — Balance at June 30, 20222,813 — 2,813 (280)(176)(456)(3,128)— (3,128)(706)(176)(882)Net earnings— — — 261 69 330 — — — 262 69 331 Employee stock plans activity, net of shares withheld for employee taxes(66)99 33 — — — 121 3 124 55 102 157 Share repurchase program activity— (100)(100)— — — (1,907)— (1,907)(1,907)(100)(2,007)Other— — — — (1)(1)— — — — (1)(1)Balance at June 30, 20232,747 (1)2,746 (534)(108)(642)(4,914)3 (4,911)(2,851)(106)(2,957)",
      "prior_body": "The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. Inventories presented in the consolidated balance sheets are net of reserves for excess and obsolete inventory which were $139 million and $147 million at June 30, 2023 and 2022, respectively.Cash DiscountsManufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold.Property and EquipmentProperty and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance and all other post-implementation stage activities are expensed as they are incurred.Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $441 million, $412 million and $377 million for fiscal 2023, 2022 and 2021, respectively.The following table presents the components of property and equipment, net at June 30:(in millions)20232022Land, building and improvements$1,785 $1,724 Machinery and equipment2,206 2,114 Capitalized software held for internal use1,687 1,562 Furniture and fixtures125 125 Construction in progress516 358 Total property and equipment, at cost6,319 5,883 Accumulated depreciation and amortization(3,857)(3,522)Property and equipment, net$2,462 $2,361 Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term obligations, which was 5 percent at June 30, 2023. The amount of capitalized interest was immaterial for all periods presented. The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx:Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 %We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements.InventoriesA portion of our inventories (55 percent and 52 percent at June 30, 2023 and 2022, respectively) are valued at the lower of cost, using the last-in, first-out (\"LIFO\") method, or market. These inventories are included within the core pharmaceutical distribution facilities of our Pharmaceutical segment (“distribution facilities”) and are primarily merchandise inventories. The LIFO method presumes that the most recent inventory purchases are the first items sold, so LIFO helps us better match current costs and revenue. We believe that the average cost method of inventory valuation provides a reasonable approximation of the current cost of replacing inventory within the distribution facilities. As such, the LIFO reserve is the difference between (a) inventory at the lower of LIFO cost or market and (b) inventory at replacement cost determined using the average cost method of inventory valuation.At June 30, 2023 and 2022, respectively, inventories valued at LIFO cost were $476 million and $416 million higher than the average cost value. We do not record inventories in excess of replacement cost. As such, we did not write-up the value of our inventory from average cost to LIFO cost at June 30, 2023 or 2022. Our remaining inventory, including inventory in our Medical segment and certain inventory in our Pharmaceutical segment, that is not valued at the lower of LIFO cost or market is stated at the lower of cost, using the first-in, first-out method, or net realizable value. Net realizable value is defined as the estimated selling prices and estimated sales demand in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. During fiscal 2021 we recorded a reserve of $197 million, primarily related to certain categories of gloves, to reduce the carrying value of certain personal protective equipment to its net realizable value. We reserve for inventory obsolescence using estimates based on historical experience, historical and projected sales trends, specific categories of inventory, age and expiration dates of on- The following table summarizes historical percent of revenue and gross trade receivables from CVS Health and OptumRx: Percent of RevenuePercent of Gross Trade Receivables at June 3020232022202120232022CVS Health25 %25 %26 %23 %24 %OptumRx16 %16 %15 %6 %4 % We have entered into agreements with group purchasing organizations (“GPOs”) which act as purchasing agents that negotiate vendor contracts on behalf of their members. Vizient, Inc. and Premier, Inc. are our two largest GPO member relationships in terms of revenue. Sales to members of these two GPOs collectively accounted for 16 percent, 19 percent and 19 percent of revenue for fiscal 2023, 2022 and 2021, respectively. Our trade receivable balances are with individual members of the GPO, and therefore no significant concentration of credit risk exists with these types of arrangements."
    },
    {
      "status": "MODIFIED",
      "current_title": "Share-Based Compensation",
      "prior_title": "Share-Based Compensation",
      "similarity_score": 0.522,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The fair value of restricted share units (\"RSUs\") is determined by the grant date market price of our common shares.\""
      ],
      "current_body": "Share-based compensation provided to employees is recognized in the consolidated statements of earnings/(loss) based on the grant date fair value of the awards. The fair value of restricted share units (\"RSUs\") is determined by the grant date market price of our common shares. The fair value of performance share units (\"PSUs\"), which include a market-based condition, is determined using a Monte Carlo valuation model. The key assumptions for the Monte Carlo valuation model are as follows: Award YearRisk-Free Interest Rate (2)Expected Volatility (3)20225.28%22.77 %20233.12%32.41 %2023 Modified (1)5.13%26.58 %20244.66%23.99 %",
      "prior_body": "Share-based compensation provided to employees is recognized in the consolidated statements of earnings/(loss) based on the grant date fair value of the awards. The fair value of restricted share units and performance share units is determined by the grant date market price of our common shares. The compensation expense associated with nonvested performance share units is dependent on our periodic assessment of the probability of the targets being achieved and our estimate, which may vary over Cardinal Health | Fiscal 2023 Form 10-K61 Cardinal Health | Fiscal 2023 Form 10-K61 Cardinal Health | Fiscal 2023 Form 10-K61 Cardinal Health | Fiscal 2023 Form 10-K 61"
    },
    {
      "status": "MODIFIED",
      "current_title": "5. Goodwill and Other Intangible Assets",
      "prior_title": "4. Goodwill and Other Intangible Assets",
      "similarity_score": 0.512,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Goodwill The following table summarizes the changes in the carrying amount of goodwill for the two reportable segments and the remaining operating segments, included in Other and in total: (in millions)Pharmaceutical and Specialty SolutionsGlobal Medical Products and Distribution (1)Other (2) (3) (4)Total Balance at June 30, 2022 (5)$2,787 $1,899 $1,170 $5,856 Goodwill acquired, net of purchase price adjustments— 15 — 15 Foreign currency translation adjustments and other(1)(6)— (7)Goodwill Impairment— (1,227)— (1,227)Outcomes goodwill reclassified to assets held for sale(24)— — (24)Balance at June 30, 2023$2,762 $681 $1,170 $4,613 Goodwill acquired, net of purchase price adjustments793 (3)— 790 Foreign currency translation adjustments and other— (3)— (3)Goodwill Impairment— (675)— (675)Balance at June 30, 2024$3,555 $— $1,170 $4,725 (1) Prior-period goodwill impairment charges related to the former Medical segment were allocated to the GMPD segment.\""
      ],
      "current_body": "Goodwill The following table summarizes the changes in the carrying amount of goodwill for the two reportable segments and the remaining operating segments, included in Other and in total: (in millions)Pharmaceutical and Specialty SolutionsGlobal Medical Products and Distribution (1)Other (2) (3) (4)Total Balance at June 30, 2022 (5)$2,787 $1,899 $1,170 $5,856 Goodwill acquired, net of purchase price adjustments— 15 — 15 Foreign currency translation adjustments and other(1)(6)— (7)Goodwill Impairment— (1,227)— (1,227)Outcomes goodwill reclassified to assets held for sale(24)— — (24)Balance at June 30, 2023$2,762 $681 $1,170 $4,613 Goodwill acquired, net of purchase price adjustments793 (3)— 790 Foreign currency translation adjustments and other— (3)— (3)Goodwill Impairment— (675)— (675)Balance at June 30, 2024$3,555 $— $1,170 $4,725 (1) Prior-period goodwill impairment charges related to the former Medical segment were allocated to the GMPD segment. At June 30, 2024 and 2023, the GMPD segment accumulated goodwill impairment loss was $5.4 billion and $4.7 billion, respectively. (2) Comprised of the remaining operating segments, Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics. (3) At June 30, 2024 and 2023, Other accumulated goodwill impairment loss was $829 million which was related to Nuclear and Precision Health Solutions. (4) Reflects $48 million allocated to OptiFreight® Logistics. Cardinal Health | Fiscal 2024 Form 10-K68 Cardinal Health | Fiscal 2024 Form 10-K68 Cardinal Health | Fiscal 2024 Form 10-K68 Cardinal Health | Fiscal 2024 Form 10-K 68",
      "prior_body": "Goodwill The following table summarizes the changes in the carrying amount of goodwill by segment and in total: (in millions)Pharmaceutical (1)Medical (2)Total Balance at June 30, 2021$2,659 $5,330 $7,989 Goodwill acquired, net of purchase price adjustments14 — 14 Foreign currency translation adjustments and other— (64)(64)Goodwill impairment— (2,084)(2,084)Balance at June 30, 20222,673 3,182 5,855 Goodwill acquired, net of purchase price adjustments— 15 15 Foreign currency translation adjustments and other— (6)(6)Goodwill impairment— (1,231)(1,231)Outcomes goodwill reclassified to assets held for sale(24)— (24)Balance at June 30, 2023$2,649 $1,960 $4,609 (1) At June 30, 2023 and 2022, the Pharmaceutical segment accumulated goodwill impairment loss was $829 million. (2) At June 30, 2023 and 2022, the Medical segment accumulated goodwill impairment loss was $4.7 billion and $3.5 billion, respectively. Due to changes in our long-term financial plan assumptions made during fiscal 2023, including those related to Cardinal Health branded medical products sales growth and net inflationary impacts, we elected to bypass the qualitative assessment and perform quantitative goodwill impairment testing for the Medical Unit at June 30, 2023. This quantitative testing resulted in the carrying amount of the Medical Unit exceeding the fair value, resulting in a pre-tax impairment charge of $368 million and cumulative pre-tax impairment charges of $1.2 billion in fiscal 2023, due to the impairment charges recognized during the second and first quarters of fiscal 2023 as described further below. This impairment charge was primarily driven by the impact of the reductions in our long-term financial plan assumptions. The impairment charges were included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss). We performed interim quantitative goodwill impairment testing for the Medical Unit at December 31, 2022 and September 30, 2022, which resulted in pre-tax impairment charges of $709 million and Cardinal Health | Fiscal 2022 Form 10-K64 Cardinal Health | Fiscal 2022 Form 10-K64 Cardinal Health | Fiscal 2022 Form 10-K64 Cardinal Health | Fiscal 2022 Form 10-K 64"
    },
    {
      "status": "MODIFIED",
      "current_title": "Legal Proceedings",
      "prior_title": "Legal Proceedings",
      "similarity_score": 0.506,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"The legal proceedings described in Note 8 of the \"Notes to Consolidated Financial Statements\" are incorporated in this \"Legal Proceedings\" section by reference.\""
      ],
      "current_body": "The legal proceedings described in Note 8 of the \"Notes to Consolidated Financial Statements\" are incorporated in this \"Legal Proceedings\" section by reference. 44Cardinal Health | Fiscal 2024 Form 10-K 44Cardinal Health | Fiscal 2024 Form 10-K 44Cardinal Health | Fiscal 2024 Form 10-K 44 Cardinal Health | Fiscal 2024 Form 10-K",
      "prior_body": "In addition to the proceedings described below, the legal proceedings described in Note 7 of the \"Notes to Consolidated Financial Statements\" are incorporated in this \"Legal Proceedings\" section by reference. Between June 2019 and January 2020, three purported shareholders filed actions on behalf of Cardinal Health, Inc. in the U.S. District Court for the Southern District of Ohio against certain current and former members of our Board of Directors alleging that the defendants breached their fiduciary duties by failing to effectively monitor Cardinal Health's distribution of controlled substances and approving certain payments of executive compensation. In January, 2020, the court consolidated these derivative cases under the caption In re Cardinal Health, Inc. Derivative Litigation and in March 2020, plaintiffs filed an amended complaint. In December 2021, the parties reached an agreement in principle to settle this matter and in October 2022, the court entered an order approving the settlement and dismissing the case. This settlement does not include any admission of liability. Under the settlement, in December 2022, Cardinal Health's director and officer liability insurance carriers, on behalf of the defendants, paid Cardinal Health $124 million, less approximately $31 million in attorneys' fees and expenses awarded by the court to plaintiffs' counsel. 44Cardinal Health | Fiscal 2023 Form 10-K 44Cardinal Health | Fiscal 2023 Form 10-K 44Cardinal Health | Fiscal 2023 Form 10-K 44 Cardinal Health | Fiscal 2023 Form 10-K"
    },
    {
      "status": "MODIFIED",
      "current_title": "3. Divestitures",
      "prior_title": "Divestitures",
      "similarity_score": 0.453,
      "confidence": "low",
      "key_changes": [
        "Reworded sentence: \"Outcomes On June 5, 2023, we signed a definitive agreement to contribute the Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity.\""
      ],
      "current_body": "Outcomes On June 5, 2023, we signed a definitive agreement to contribute the Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a 16 percent equity interest in the combined entity. The transaction closed on July 10, 2023 and we recognized a pre-tax gain of $53 million in fiscal 2024, which was included in impairments and (gain)/loss on disposal of assets, net in our consolidated statements of earnings/(loss). This gain includes our initial recognition of an equity method investment in the combined entity impairments and (gain)/loss on disposal of assets, net Cardinal Health | Fiscal 2024 Form 10-K67 Cardinal Health | Fiscal 2024 Form 10-K67 Cardinal Health | Fiscal 2024 Form 10-K67 Cardinal Health | Fiscal 2024 Form 10-K 67",
      "prior_body": "Outcomes On June 5, 2023, we signed a definitive agreement to contribute our Outcomes™ business to TDS, a portfolio company of BlackRock Long Term Private Capital and GTCR, in exchange for a minority stake in the combined entity. The transaction closed on July 10, 2023 and we expect to recognize a gain of approximately $60 million in the first quarter of fiscal 2024, which will be included in impairments and (gain)/loss on disposal of assets, net. impairments and (gain)/loss on disposal of assets, net We classify assets and liabilities (the “disposal group”) as held for sale when management commits to a plan to sell the disposal group in its present condition and at a price that is reasonable in relation to its current fair value. We also consider whether an active program to locate a buyer has been initiated and if it is probable that the sale will occur within one year without significant changes to the plan to sell. Upon classification of the disposal group as held for sale, we assess the assets for impairment and cease related depreciation and amortization. Cardinal Health | Fiscal 2023 Form 10-K63 Cardinal Health | Fiscal 2023 Form 10-K63 Cardinal Health | Fiscal 2023 Form 10-K63 Cardinal Health | Fiscal 2023 Form 10-K 63"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Basis for Opinion",
      "prior_title": "Basis for Opinion",
      "current_body": "The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying “Management’s Report on Internal Control Over Financial Reporting.” Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Noncontrolling Interests",
      "prior_title": "Noncontrolling Interests",
      "current_body": "Noncontrolling interests represent the portion of net earnings, comprehensive income and net assets that is not attributable to Cardinal Health, Inc."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Concentrations of Credit Risk",
      "prior_title": "Concentrations of Credit Risk",
      "current_body": "We maintain cash depository accounts with major banks, and we invest in high quality, short-term liquid instruments, and in marketable securities. Our short-term liquid instruments mature within three months and we have not historically incurred any related losses. Our trade receivables and finance notes and related accrued interest are exposed to a concentration of credit risk with certain large customers and with customers in the retail and healthcare sectors. Credit risk can be affected by changes in reimbursement and other economic pressures impacting the healthcare industry. With respect to customers in the retail and healthcare sectors, such credit risk is limited due to supporting collateral and the diversity of the customer base, including its wide geographic dispersion. We perform regular credit evaluations of our customers’ financial conditions and maintain reserves for losses through the established allowance for doubtful accounts. Historically, such losses have been within our expectations. Refer to the \"Receivables and Allowance for Doubtful Accounts\" section within this Note for additional information on the accounting treatment of reserves for allowance for doubtful accounts."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Report of Independent Registered Public Accounting Firm",
      "prior_title": "Report of Independent Registered Public Accounting Firm",
      "current_body": "To the Shareholders and the Board of Directors of Cardinal Health, Inc."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Employee attrition may have an adverse impact on our business, results of operations or internal controls.",
      "prior_title": "Employee attrition may have an adverse impact on our business, results of operations or internal controls.",
      "current_body": "Our ability to attract, retain and develop qualified and experienced employees, including key executives and other talent, is critical for us to meet our business objectives. We compete with many other businesses to attract and retain employees. It is possible that we could experience loss of key personnel for a variety of causes. If we do not adequately plan for succession of key roles or if we are not successful in attracting or retaining new talent, our performance or internal control over financial reporting could be adversely impacted."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Other Accrued Liabilities",
      "prior_title": "Other Accrued Liabilities",
      "current_body": "Other accrued liabilities represent various current obligations, including certain accrued operating expenses, accrued rebates and taxes payable."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Cash Discounts",
      "prior_title": "Cash Discounts",
      "current_body": "Manufacturer cash discounts are recorded as a component of inventory cost and recognized as a reduction of cost of products sold as inventory is sold."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Use of Estimates",
      "prior_title": "Use of Estimates",
      "current_body": "Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates, judgments and assumptions are used in the accounting and disclosure related to, among other items, allowance for doubtful accounts, inventory valuation and reserves, goodwill and other intangible asset impairment, vendor reserves, loss contingencies (including product liability and self-insurance accruals) and income taxes. Actual amounts may differ from these estimated amounts."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Basis for Opinion",
      "prior_title": "Basis for Opinion",
      "current_body": "The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying “Management’s Report on Internal Control Over Financial Reporting.” Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Fair Value Measurements",
      "prior_title": "Fair Value Measurements",
      "current_body": "Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are: Level 1 - Observable prices in active markets for identical assets and liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. See Note 10 for additional information regarding fair value measurements."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Management’s Report on Internal Control Over Financial Reporting",
      "prior_title": "Management’s Report on Internal Control Over Financial Reporting",
      "current_body": "Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Our internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, controls deemed effective now may become inadequate in the future because of changes in conditions, or because compliance with policies or procedures has deteriorated or been circumvented. Management assessed the effectiveness of our internal control over financial reporting as of June 30, 2024. In making this assessment, management used the criteria established in the Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the “COSO criteria”). Based on management’s assessment and the COSO criteria, management believes that our internal control over financial reporting was effective as of June 30, 2024. Our independent registered public accounting firm, Ernst & Young LLP, has issued a report on our internal control over financial reporting. Ernst & Young LLP’s report appears following this \"Management Reports\" section and expresses an unqualified opinion on the effectiveness of our internal control over financial reporting."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Distribution Services Agreement and Other Vendor Fees",
      "prior_title": "Distribution Services Agreement and Other Vendor Fees",
      "current_body": "Our Pharmaceutical and Specialty Solutions segment recognizes fees received from distribution services agreements and other fees received from vendors related to the purchase or distribution of the vendors’ inventory when those fees have been earned and we are entitled to payment. Since the benefit provided to a vendor is related to the purchase and distribution of the vendor’s inventory, we recognize the fees as a reduction in the carrying value of the inventory that generated the fees, and as such, a reduction of cost of products sold in our consolidated statements of earnings/(loss) when the inventory is sold."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Evaluation of Disclosure Controls and Procedures",
      "prior_title": "Evaluation of Disclosure Controls and Procedures",
      "current_body": "We evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the \"Exchange Act\")) as of June 30, 2024. Based on this evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of June 30, 2024 to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting",
      "prior_title": "Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting",
      "current_body": "To the Shareholders and the Board of Directors of Cardinal Health, Inc."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Recently Adopted Financial Accounting Standards",
      "prior_title": "Recently Adopted Financial Accounting Standards",
      "current_body": "There were no accounting standards adopted in fiscal 2024 that had a material impact on our consolidated financial statements."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Basis of Presentation",
      "prior_title": "Basis of Presentation",
      "current_body": "Our consolidated financial statements include the accounts of all majority-owned or consolidated subsidiaries, and all significant intercompany transactions and amounts have been eliminated. The results of businesses acquired or disposed of are included in the consolidated financial statements from the date of the acquisition or up to the date of disposal, respectively. Certain prior year amounts have been reclassified to conform to the current year presentation."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities",
      "prior_title": "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities",
      "current_body": "Our common shares are listed on the New York Stock Exchange under the symbol “CAH.” At July 31, 2024, there were approximately 6,238 shareholders of record of our common shares. We anticipate that we will continue to pay quarterly cash dividends in the future. The payment and amount of future dividends remain, however, within the discretion of our Board of Directors and will depend upon our future earnings, financial condition, capital requirements and other factors."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Translation of Foreign Currencies",
      "prior_title": "Translation of Foreign Currencies",
      "current_body": "Financial statements of our subsidiaries outside the United States are generally measured using the local currency as the functional currency. Adjustments to translate the assets and liabilities of these foreign subsidiaries into U.S. dollars are accumulated in shareholders’ equity through accumulated and other comprehensive loss (\"AOCI\") utilizing period-end exchange rates. Revenues and expenses of these foreign subsidiaries are translated using average exchange rates during the year. The foreign currency translation gains/(losses) included in AOCI at June 30, 2024 and 2023 are presented in Note 12. Foreign currency transaction gains and losses for the period are included in the consolidated statements of earnings/(loss) in the respective financial statement line item."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Cash Equivalents",
      "prior_title": "Cash Equivalents",
      "current_body": "We consider liquid investments purchased with an initial effective maturity of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Interest Rate Risk Management",
      "prior_title": "Interest Rate Risk Management",
      "current_body": "We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities on our fixed-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Third-Party Returns",
      "prior_title": "Third-Party Returns",
      "current_body": "We generally do not accept non-merchantable pharmaceutical product returns from our customers, so many of our customers return non-merchantable pharmaceutical products to the manufacturer through third parties. Since our customers generally do not have a direct relationship with manufacturers, our vendors pass the value of such returns to us (usually in the form of an accounts payable deduction). We, in turn, pass the value received to our customer. In certain instances, we pass the estimated value of the return to our customer prior to our receipt of the value from the vendor. Although we believe we have satisfactory protections, from time to time, we become subject to claims from customers or vendors that our administration of this overall process is deficient in some respect or our contractual terms with vendors are in conflict with our contractual terms with our customers. We maintain reserves for some of these situations based on their nature and our historical experience with their resolution."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Opinion on Internal Control over Financial Reporting",
      "prior_title": "Opinion on Internal Control over Financial Reporting",
      "current_body": "We have audited Cardinal Health, Inc. and subsidiaries’ internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Cardinal Health, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of June 30, 2024, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of June 30, 2024 and 2023, the related consolidated statements of earnings/(loss), comprehensive income/(loss), shareholders' equity/(deficit) and cash flows for each of the three years in the period ended June 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15(a)(2) and our report dated August 14, 2024 expressed an unqualified opinion thereon."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Generic Sourcing Venture with CVS Health",
      "prior_title": "Generic Sourcing Venture with CVS Health Corporation",
      "current_body": "In July 2014, we established Red Oak Sourcing, LLC (\"Red Oak Sourcing\"), a U.S.-based generic pharmaceutical sourcing venture with CVS Health for an initial term of 10 years. Red Oak Sourcing negotiates generic pharmaceutical supply contracts on behalf of its participants. In August 2021, we amended our agreement to extend the term through June 2029. We are required to make quarterly payments to CVS Health for the term of the arrangement. These payments are included as purchase obligations and other payments in the \"Contractual Obligations and Cash Requirements\" section of MD&A."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Uncertain Tax Positions",
      "prior_title": "Uncertain Tax Positions",
      "current_body": "Description of the Matter As described in Note 9 to the consolidated financial statements, the Company’s unrecognized tax benefits related to its uncertain tax positions were $981 million at June 30, 2024. Uncertain tax positions may arise as tax laws are subject to interpretation. The Company uses significant judgment in (1) determining if the tax position is more likely than not to be sustained upon examination, based on the technical merits of the position and (2) measuring the amount of tax benefit that qualifies for recognition. Auditing management's estimate of the amount of tax benefit related to the Company's uncertain tax positions that qualified for recognition was challenging because management's estimate required significant judgment in evaluating the technical merits of the positions, including interpretations of applicable tax laws and regulations. How We Addressed the Matter in Our Audit /s/ Ernst & Young LLPWe have served as the Company's auditor since 2002.Grandview Heights, OhioAugust 14, 2024 /s/ Ernst & Young LLP 50Cardinal Health | Fiscal 2024 Form 10-K 50Cardinal Health | Fiscal 2024 Form 10-K 50Cardinal Health | Fiscal 2024 Form 10-K 50 Cardinal Health | Fiscal 2024 Form 10-K"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Opinion on the Financial Statements",
      "prior_title": "Opinion on the Financial Statements",
      "current_body": "We have audited the accompanying consolidated balance sheets of Cardinal Health, Inc. and subsidiaries (the Company) as of June 30, 2024 and 2023, the related consolidated statements of earnings/(loss), comprehensive income/(loss), shareholders' equity/(deficit) and cash flows for each of the three years in the period ended June 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of June 30, 2024, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated August 14, 2024 expressed an unqualified opinion thereon."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Changes in Internal Control Over Financial Reporting",
      "prior_title": "Changes in Internal Control Over Financial Reporting",
      "current_body": "There were no changes in our internal control over financial reporting during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Cardinal Health | Fiscal 2024 Form 10-K47 Cardinal Health | Fiscal 2024 Form 10-K47 Cardinal Health | Fiscal 2024 Form 10-K47 Cardinal Health | Fiscal 2024 Form 10-K 47 Reports Reports"
    },
    {
      "status": "UNCHANGED",
      "current_title": "Shipping and Handling",
      "prior_title": "Shipping and Handling",
      "current_body": "Shipping and handling costs are primarily included in SG&A expenses in our consolidated statements of earnings/(loss) and include all delivery expenses as well as all costs to prepare the product for shipment to the end customer. Shipping and handling costs were $866 million, $835 million and $756 million, for fiscal 2024, 2023 and 2022, respectively."
    },
    {
      "status": "UNCHANGED",
      "current_title": "Definition and Limitations of Internal Control Over Financial Reporting",
      "prior_title": "Definition and Limitations of Internal Control Over Financial Reporting",
      "current_body": "A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Ernst & Young LLPGrandview Heights, OhioAugust 14, 2024 /s/ Ernst & Young LLPGrandview Heights, OhioAugust 14, 2024 /s/ Ernst & Young LLPGrandview Heights, OhioAugust 14, 2024 /s/ Ernst & Young LLP 48Cardinal Health | Fiscal 2024 Form 10-K 48Cardinal Health | Fiscal 2024 Form 10-K 48Cardinal Health | Fiscal 2024 Form 10-K 48 Cardinal Health | Fiscal 2024 Form 10-K Reports Reports"
    }
  ]
}