CAH » Topics » Spin-Off of CareFusion Corporation

This excerpt taken from the CAH 8-K filed Nov 16, 2009.

Spin-Off of CareFusion Corporation

On September 29, 2008, the Company announced that it intended to separate its clinical and medical products businesses from its other businesses through the Spin-Off of CareFusion.

On July 10, 2009, the Company’s Board of Directors approved the distribution to its shareholders of 80.1% or more of the shares of CareFusion common stock on the basis of 0.5 shares of CareFusion common stock for each Common Share of the Company. The distribution was made after the close of trading on August 31, 2009 to the Company’s shareholders of record as of 5 p.m. Eastern Daylight Time on August 25, 2009. Following the Spin-Off, the Company retained 41.4 million shares of CareFusion common stock. Per the requirements of the private letter ruling obtained from the IRS regarding the tax free nature of the Spin-Off, the Company is required to dispose of the retained shares of CareFusion common stock within five years of the Spin-Off.

The Company incurred $113 million of expenses associated with the Spin-Off in fiscal 2009. Upon completion of the Spin-Off, the Company also incurred a tax charge of $172 million related to the anticipated repatriation of certain foreign earnings.

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