CareFusion Reports First Half Fiscal 2014 Results

              CareFusion Reports First Half Fiscal 2014 Results

- Second quarter revenue increased to $922 million, driven by continued
strength in the company's Procedural Solutions segment

- Diluted earnings per share (EPS) from continuing operations totaled $0.45 on
a GAAP basis and remained even with prior year at $0.54 per adjusted share

- Company reaffirmed fiscal 2014 revenue and EPS guidance

PR Newswire

SAN DIEGO, Feb. 3, 2014

SAN DIEGO, Feb. 3, 2014 /PRNewswire/ -- CareFusion Corp. (NYSE: CFN), a
leading, global medical technology company, today reported financial results
for its second quarter of fiscal 2014, ended Dec. 31, 2013.

"Our team executed well during the quarter, with continued strength across the
board in Procedural Solutions and in the Infusion Systems business line," said
Kieran T. Gallahue, chairman and CEO. "During the quarter, we also secured a
record number of committed contracts in the Dispensing Technologies business
line, giving us the necessary momentum to drive strong second-half results.

"In addition, we made progress against our long-term strategy, gaining scale
globally through the acquisitions of Sendal and Vital Signs and building a
healthy innovation pipeline in Procedural Solutions."

Second Quarter Results
CareFusion reported second quarter fiscal 2014 revenue of $922 million,
compared to $909 million in the second quarter of fiscal year 2013, a 1
percent increase on both a reported and constant currency basis.

Operating income was $152 million compared to $171 million in the prior year
period. Excluding nonrecurring items, adjusted operating income decreased 4
percent to $181 million, with revenue mix negatively affecting the company's
operating margins during the quarter. On a sequential basis, adjusted
operating income improved 28 percent from the first quarter.

Operating expenses totaled $314 million. Excluding nonrecurring items,
adjusted operating expenses were $288 million, an increase of 2 percent over
the prior year period, primarily driven by the medical device excise tax.

The company reported income from continuing operations of $97 million, or
$0.45 per diluted share. Adjusted income from continuing operations decreased
4 percent to $116 million and remained even with the prior year at $0.54 per
diluted share.

Medical Systems
Second quarter revenue for the Medical Systems segment was $587 million, a 2
percent decrease from the prior year period on a reported and constant
currency basis. Continued strength in the Infusion Systems business line was
offset by lower revenue in the Respiratory Technologies business line and the
impact of a product line transition in the Dispensing Technologies business
line.

Segment profit for the quarter was $109 million, as revenue mix negatively
affected segment margins. Adjusted segment profit decreased 7 percent to $124
million.

Procedural Solutions
Strong performance across the Procedural Solutions segment led to second
quarter revenue of $335 million, a 9 percent increase from the prior year
period on a reported and constant currency basis. The top-line results were
driven by continued strength in the segment's clinically differentiated
portfolio, with both the Infection Prevention and Specialty Disposables
business lines delivering double-digit revenue increases during the quarter.

Segment profit totaled $43 million, growing 4 percent on an adjusted basis to
$57 million.

Six-Month Results
For the first six months of fiscal 2014, revenue was even with the prior year
period at $1.75 billion. Operating income totaled $268 million. Income from
continuing operations was $175 million, or $0.81 per diluted share. Adjusted
income from continuing operations was $212 million and equal with the prior
year period at $0.98 per diluted share.

Operating expenses in the first six months totaled $621 million, or $569
million on an adjusted basis.

Segment results for the six months ended Dec. 31, 2013 and 2012 are as
follows:

Medical Systems         1H FY14        1H FY13        Y/Y
Revenue                 $1,111 million $1,153 million (4)%
Segment Profit          $183 million   $225 million   (19)%
Adjusted Segment Profit $214 million   $246 million   (13)%
Procedural Solutions    1H FY14        1H FY13        Y/Y
Revenue                 $641 million   $593 million   8%
Segment Profit          $85 million    $89 million    (4)%
Adjusted Segment Profit $109 million   $103 million   6%

Recent Highlights
Additional second quarter and recent highlights included:

  oCompleting the acquisition of the Vital Signs division of GE Healthcare in
    the United States, China and certain other geographies. The addition of
    Vital Signs, which manufactures single-patient-use consumables for
    respiratory care and anesthesiology, helps create scale and increases the
    company's presence outside of the U.S.
  oLaunching five new Procedural Solutions products to date in fiscal 2014,
    including the Chemo Safety System featuring the SmartSite VialShield^™,
    the MaxZero™ needleless IV connector that features neutral reflux at
    disconnect, the ChloraPrep® 1mL applicator, the AVAflex® Vertebral Balloon
    System and the AirLife^® Misty Fast^™ disposable small-volume nebulizer
    featuring reduced drug treatment time.
  oSecuring a record number of committed contracts in the Dispensing
    Technologies business line, where installations of the Pyxis® ES system
    are now complete or underway at more than 150 U.S. hospitals.
  oAgreeing to invest approximately $100 million for a 40 percent minority
    stake in Caesarea Medical Electronics (CME), an Israeli manufacturer of
    compact and highly portable infusion and syringe pumps for homecare and
    hospital settings.
  oIntroducing new technologies to improve enterprise-wide medication
    management, including the CareFusion SmartWorks™ platform, the Pyxis® IV
    System to provide a more efficient and standardized process for
    compounding, checking and delivering IVs from the central pharmacy, and
    Alaris^® Infusion Viewer for Charge Capture.
  oSigning an exclusive agreement with Terumo Corporation to co-brand, market
    and distribute Terumo's SurFlash^® line of safety peripheral IV catheters
    in the U.S. acute care market. The company also signed an exclusive
    agreement in North America with Vancive Medical Technologies to license,
    distribute and co-brand Vancive's BeneHold™ Chlorhexidine Gluconate (CHG)
    antimicrobial Adhesive Technology for applications in vascular access.
  oAnnouncing the CareFusion Foundation's second annual Clinical Excellence
    Grants program, which will provide $500,000 in total funding to help U.S.
    hospitals identify and share best practices for medication safety and
    efficiency.
  oInvesting $186 million to repurchase 4.8 million shares during the quarter
    under a two-year, $750 million share repurchase program. To date in fiscal
    2014, the company invested $375 million to repurchase 9.8 million shares.

Fiscal 2014 Outlook
For the fiscal year ending June 30, 2014, CareFusion continues to expect
organic revenue to grow 1 to 4 percent on a constant currency basis compared
to fiscal 2013 revenue of $3.55 billion.  Adjusted diluted earnings per share
from continuing operations are expected to be in the range of $2.30 to $2.40.

Conference Call
CareFusion will host a conference call today at 2 p.m. PST (5 p.m. EST) to
discuss its financial and operational results for the second quarter.

To access the call, visit the Investors page at www.carefusion.com. Log on at
least 15 minutes before the call begins to register and download or install
any necessary audio software. Investors and other interested parties may also
access the call by dialing 866.271.5140 within the U.S. or 617.213.8893 from
outside the U.S. and using the access code 34473695. A replay of the
conference call will be available from 6 p.m. PST (9 p.m. EST) on Feb. 3
through 11:59 p.m. PST on Feb. 10 and can be accessed by dialing 888.286.8010
in the U.S. or 617.801.6888 from outside the U.S. and using the access code
56827165.

About CareFusion Corporation
CareFusion (NYSE: CFN) is a global corporation serving the health care
industry with products and services that help hospitals measurably improve the
safety and quality of care. The company develops industry-leading technologies
including Alaris^® infusion pumps and IV sets, MaxPlus^® and MaxZero^™ IV
connectors and sets, Pyxis^® automated dispensing and patient identification
systems, AVEA^®, LTV^® series and AirLife^® ventilation and respiratory
products, ChloraPrep^® products, MedMined^® services for data mining
surveillance, V. Mueller^® surgical instruments, and an extensive line of
products that support interventional medicine. CareFusion employs
approximately 15,000 people across its global operations. More information may
be found at www.carefusion.com.

Use of Non-GAAP Financial Measures by CareFusion Corporation
This CareFusion news release and the information contained herein present
non-GAAP financial measures that exclude certain amounts, as follows:
"adjusted segment profit," "adjusted operating expenses," "adjusted operating
income," and "adjusted operating margin," which exclude amortization of
acquired intangibles, as well as nonrecurring restructuring and acquisition
integration charges; and "adjusted income from continuing operations,"
"adjusted diluted earnings per share from continuing operations" and "adjusted
effective tax rate," which exclude amortization of acquired intangibles, as
well as nonrecurring restructuring and acquisition integration charges and
nonrecurring tax items. In addition, commencing with the quarter ended
December 31, 2013, the company began excluding from its adjusted results
inventory valuation step-up charges from acquisitions. The most directly
comparable GAAP financial measures for these non-GAAP financial measures are
segment profit, operating expenses, operating income, operating margin, income
from continuing operations, diluted earnings per share from continuing
operations and effective tax rate. The company has included below unaudited
adjusted financial information for the quarters and six months ended December
31, 2013 and 2012, which includes a reconciliation of GAAP to non-GAAP
financial measures.

The company's management uses these non-GAAP financial measures to evaluate
the company's performance and provides them to investors as a supplement to
the company's reported results, as they believe this information provides
additional insight into the company's operating performance by disregarding
certain nonrecurring items. These non-GAAP financial measures should not be
considered in isolation, as a substitute for, or as superior to, financial
measures calculated in accordance with GAAP, and the company's financial
results calculated in accordance with GAAP and reconciliations to those
financial statements should be carefully evaluated. The non-GAAP financial
measures used by the company may be calculated differently from, and therefore
may not be comparable to, similarly titled measures used by other companies.
While the types of items and charges excluded from the company's non-GAAP
financial measures may occur in the future, the company's management believes
that they are not reflective of the day-to-day offering of its products and
services and relate more to strategic, multi-year corporate actions, without
predictable trends, or discrete and unusual or infrequent transactions that
are not indicative of future operations or business trends.

Cautions Concerning Forward-looking Statements
The CareFusion news release and the information contained herein present
forward-looking statements addressing expectations, prospects, estimates and
other matters that are dependent upon future events or developments.
CareFusion intends forward-looking terminology such as "believes," "expects,"
"may," "will," "should," "anticipates," "plans," or similar expressions to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties, which could cause the company's actual results to
differ materially from those projected, anticipated or implied by the
forward-looking statements. The most significant of these uncertainties are
described in CareFusion's Form 10-K, Form 10-Q and Form 8-K reports (including
all amendments to those reports) and exhibits to those reports, and include
(but are not limited to) the following: we may be unable to effectively
enhance our existing products or introduce and market new products or may fail
to keep pace with advances in technology; we are subject to complex and costly
regulation; cost containment efforts of our customers, purchasing groups,
third-party payers and governmental organizations could adversely affect our
sales and profitability; current economic conditions have and may continue to
adversely affect our results of operations and financial condition; we may be
unable to realize any benefit from our cost reduction and restructuring
efforts and our profitability may be hurt or our business otherwise might be
adversely affected; we may be unable to protect our intellectual property
rights or may infringe on the intellectual property rights of others; defects
or failures associated with our products and/or our quality system could lead
to the filing of adverse event reports, recalls or safety alerts and negative
publicity and could subject us to regulatory actions; and we are currently
operating under an amended consent decree with the FDA and our failure to
comply with the requirements of the amended consent decree may have an adverse
effect on our business. The CareFusion news release and the information
contained herein reflect management's views as of February 3, 2014. Except to
the limited extent required by applicable law, CareFusion undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

CAREFUSION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                                     Quarters Ended      Six Months Ended

                                     December 31,        December 31,
(in millions, except per share       2013      2012      2013       2012
amounts)
Revenue                              $ 922     $ 909     $ 1,752    $ 1,746
Cost of Products Sold                456       438       863        839
 Gross Profit                     466       471       889        907
Selling, General and Administrative  257       249       505        493
Expenses
Research and Development Expenses    47        48        95         95
Restructuring and Acquisition        10        3         21         5
Integration Charges
 Operating Income                 152       171       268        314
Interest Expense and Other, Net      21        19        41         38
Income Before Income Tax             131       152       227        276
Provision for Income Tax             34        44        52         81
Income from Continuing Operations    97        108       175        195
Loss from Discontinued Operations,   —         —         —          (3)
Net of Tax
Net Income                           $ 97      $ 108     $ 175      $ 192
Per Share Amounts:^1
Basic Earnings (Loss) per Common
Share:
 Continuing Operations            $ 0.46    $ 0.49    $ 0.83     $ 0.88
 Discontinued Operations          $ —       $ —       $ —        $ (0.01)
 Basic Earnings per Common Share  $ 0.46    $ 0.49    $ 0.83     $ 0.87
Diluted Earnings (Loss) per Common
Share:
 Continuing Operations            $ 0.45    $ 0.48    $ 0.81     $ 0.87
 Discontinued Operations          $ —       $ —       $ —        $ (0.01)
 Diluted Earnings per Common      $ 0.45    $ 0.48    $ 0.81     $ 0.86
Share
Weighted-Average Number of Common
Shares Outstanding:
 Basic                            210.5     222.6     212.2      222.3
 Diluted                          213.7     224.9     215.5      224.7
Adjusted Financial Measures:^2
 Gross Profit                     $ 469     $ 471     $ 892      $ 907
 Gross Margin^3                   50.9   %  51.8   %  50.9    %  51.9     %
 Operating Expenses           $ 288     $ 282     $ 569      $ 558
 Operating Income                 $ 181     $ 189     $ 323      $ 349
 Operating Margin^3               19.6   %  20.8   %  18.4    %  20.0     %
 Income from Continuing           $ 116     $ 121     $ 212      $ 220
Operations
 Diluted EPS from Continuing      $ 0.54    $ 0.54    $ 0.98     $ 0.98
Operations
 Effective Tax Rate               27.3   %  29.6   %  24.8    %  29.9     %

^1  Earnings per share calculations are performed separately for each
component presented. Therefore, the sum of the per share components from the
table may not equal the per share amounts presented.
^2 Adjusted financial measures are non-GAAP measures that exclude amortization
of acquired intangibles, as well as certain nonrecurring items, as discussed
above under Use of Non-GAAP Financial Measures. Commencing with the quarter
ended December 31, 2013, the company began excluding from its adjusted results
inventory valuation step-up charges from acquisitions. Financial information
for historical periods has not been revised to reflect the exclusion of such
inventory step-up charges, as the amounts were immaterial. Additional
information regarding inventory valuation step-up charges from acquisitions
and a reconciliation of the adjusted financial measures to comparable GAAP
measures can be found in the Reconciliation of Non-GAAP Financial Measures
included in the pages that follow.
^3 Adjusted gross margin and adjusted operating margin reflect adjusted gross
profit and adjusted operating income, in each case divided by revenue. The
Reconciliation of Non-GAAP Financial Measures included in the pages that
follow present a reconciliation of adjusted operating income from which
adjusted operating margin is derived.

CAREFUSION CORPORATION
SEGMENT AND SELECT BUSINESS LINE REVENUES
(UNAUDITED)
                          Quarters Ended           Six Months Ended
                                          Percent                      Percent
                          December 31,             December 31,
(in millions)             2013    2012    Change   2013      2012      Change
Medical Systems
 Dispensing            $ 236   $ 260   (9)  %   $ 447     $ 504     (11)  %
Technologies
 Infusion Systems      247     229     8    %   466       432       8     %
 Respiratory           96      106     (9)  %   184       203       (9)   %
Technologies
 Other                 8       7       14   %   14        14        —     %
 Total Medical     $ 587   $ 602   (2)  %   $ 1,111   $ 1,153   (4)   %
Systems
Procedural Solutions
 Infection Prevention  $ 168   $ 152   11   %   $ 317     $ 296     7     %
 Medical Specialties   89      86      3    %   178       166       7     %
 Specialty             78      69      13   %   146       131       11    %
Disposables
 Total Procedural  $ 335   $ 307   9    %   $ 641     $ 593     8     %
Solutions
Total CareFusion          $ 922   $ 909   1    %   $ 1,752   $ 1,746   —     %





CAREFUSION CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted
Financial
Data:
               Segment Profit
                                                                                        Diluted
                                                      Operating             Income
(in millions,                                                               from        EPS from
except per     Medical  Procedural  Gross   SG&A      Expenses   Operating  Continuing
share          Systems  Solutions   Profit  Expenses             Income     Operations  Continuing
amounts)                                              ^4                    ^5
                                                                                        Operations
                                                                                        ^6
Quarter Ended
December 31,
2013
GAAP           $  109   $   43      $ 466   $  257    $  314     $  152     $   97      $  0.45

Restructuring
and            6        4           —       —         (10)       10         7           0.03
Acquisition
Integration^1

Amortization   9        7           —       (16)      (16)       16         10          0.05
of Acquired
Intangibles^2
 Step-up of
Acquired       —        3           3       —         —          3          2           0.01
Inventory^3
Adjusted       $  124   $   57      $ 469   $  241    $  288     $  181     $   116     $  0.54
Six Months
Ended
December 31,
2013
GAAP           $  183   $   85      $ 889   $  505    $  621     $  268     $   175     $  0.81

Restructuring
and            13       8           —       —         (21)       21         15          0.07
Acquisition
Integration^1

Amortization   18       13          —       (31)      (31)       31         20          0.09
of Acquired
Intangibles^2
 Step-up of
Acquired       —        3           3       —         —          3          2           0.01
Inventory^3
Adjusted       $  214   $   109     $ 892   $  474    $  569     $  323     $   212     $  0.98
Quarter Ended
December 31,
2012
GAAP           $  123   $   48      $ 471   $  249    $  300     $  171     $   108     $  0.48

Restructuring
and            2        1           —       —         (3)        3          3           0.01
Acquisition
Integration^1

Amortization   9        6           —       (15)      (15)       15         10          0.04
of Acquired
Intangibles^2
Adjusted       $  134   $   55      $ 471   $  234    $  282     $  189     $   121     $  0.54
Six Months
Ended
December 31,
2012
GAAP           $  225   $   89      $ 907   $  493    $  593     $  314     $   195     $  0.87

Restructuring
and            3        2           —       —         (5)        5          5           0.02
Acquisition
Integration^1

Amortization   18       12          —       (30)      (30)       30         20          0.09
of Acquired
Intangibles^2
Adjusted       $  246   $   103     $ 907   $  463    $  558     $  349     $   220     $  0.98

^1 Restructuring and acquisition integration charges primarily relate to
nonrecurring expenses associated with rationalizing headcount and aligning
operations.
^2 Amortization of acquired intangibles relate to the non-cash expenses
associated with amortization of identifiable intangible assets of acquired
businesses.
^3 Step-up of acquired inventory relates to the non-cash expenses associated
with inventory valuation step-up charges from acquisitions. In connection with
acquisition transactions, the company acquires inventory that is recorded at
fair value at the time of the acquisition. As the fair value of acquired
finished goods inventory is recorded at the anticipated customer sales price
less cost to sell, which is generally higher than the historical carrying
value, the company must record a charge equal to the difference between the
fair value and historical carrying value as the underlying product is sold.
The company began excluding from its adjusted results inventory valuation
step-up charges from acquisitions during the quarter ended December 31, 2013,
as the company does not believe such non-cash charges are reflective of
ongoing operating results. Financial information for historical periods has
not been revised to reflect the exclusion of such inventory step-up charges,
as the amounts were immaterial.
^4 Operating expenses consist of selling, general and administrative, research
and development, and restructuring and acquisition integration expenses.
^5 Income from continuing operations is presented net of tax effect.
Additional information about nonrecurring tax items related to nonrecurring
expenses and the impact on the effective tax rate is included in the
Reconciliation of the Adjusted Effective Tax Rate on the following page.
^6 Earnings per share calculations are performed separately for each component
presented. Therefore, the sum of the per share components from the table may
not equal the per share amounts presented.

CAREFUSION CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Adjusted
Effective
Tax Rate:
(in                         Nonrecurring  Inventory  Amortization
millions)      GAAP         Items^1                  of Acquired    Adjusted^4
                                          Step-Up^2  Intangibles^3
Quarter
Ended
December 31,
2013
 Income
Before         $  131       $   10        $   3      $    16        $  160
Income Tax

Provision      $  34        $   3         $   1      $    6         $  44
for Income
Tax

Effective      26.0    %    30.0     %    30.0   %   34.2      %    27.3    %
Tax Rate^5
Six Months
Ended
December 31,
2013
 Income
Before         $  227       $   21        $   3      $    31        $  282
Income Tax

Provision      $  52        $   6         $   1      $    11        $  70
for Income
Tax

Effective      22.8    %    28.6     %    30.0   %   34.2      %    24.8    %
Tax Rate^5
Quarter
Ended
December 31,
2012
 Income
Before         $  152       $   3         $   —      $    15        $  170
Income Tax

Provision      $  44        $   —         $   —      $    5         $  49
for Income
Tax

Effective      29.1    %    33.3     %    —      %   33.3      %    29.6    %
Tax Rate^5
Six Months
Ended
December 31,
2012
 Income
Before         $  276       $   5         $   —      $    30        $  311
Income Tax

Provision      $  81        $   —         $   —      $    10        $  91
for Income
Tax

Effective      29.4    %    40       %    —      %   33.3      %    29.9    %
Tax Rate^5
Adjusted EPS Outlook for Fiscal Year Ending June 30, 2014:
GAAP Diluted Earnings per Common Share from Continuing Operations   $1.88 -
                                                                    $1.98
Estimated charges for nonrecurring items related to restructuring
and acquisition integration, net of tax (mid-point of an estimated  $0.15
range of $0.13 to $0.17 per diluted share)
Estimated charges for inventory step-up from acquisitions           0.04
(mid-point of an estimated range of $0.03 to $0.05)
Estimated acquisition-related intangible amortization, net of tax   0.23
Adjusted Diluted Earnings per Common Share from Continuing          $2.30 -
Operations                                                          $2.40

^1 Reflects nonrecurring charges primarily related to nonrecurring
restructuring and acquisition integration charges, and nonrecurring income tax
items.
^2 Step-up of acquired inventory relates to the non-cash expenses associated
with inventory step-up charges from acquisitions. The company began excluding
inventory valuation step-up charges from acquisitions during the quarter ended
December 31, 2013. Financial information for historical periods has not been
revised to reflect the exclusion of such inventory step-up charges, as the
amounts were immaterial.
^3 Amortization of acquired intangibles relate to the non-cash expenses
associated with amortization of identifiable intangible assets of acquired
businesses.
^4 Adjusted financial information reflects GAAP results adjusted on a non-GAAP
basis to exclude nonrecurring items, amortization of acquired intangibles,
inventory valuation step-up charges, and nonrecurring income tax items noted
above.
^5 Effective tax rate calculations are performed based on whole dollar
amounts, and therefore may not equal the calculations based on amounts rounded
in millions presented in the table above.

CAREFUSION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                                                        December 31,  June 30,
(in millions, except per share data)
                                                        2013          2013
ASSETS
Current Assets:
 Cash and Cash Equivalents                           $   1,309     $ 1,798
 Trade Receivables, Net                              451           429
 Current Portion of Net Investment in Sales-Type     326           351
Leases
 Inventories, Net                                    433           384
 Prepaid Expenses                                    32            30
 Other Current Assets                                278           141
 Total Current Assets                            2,829         3,133
Property and Equipment, Net                             446           409
Net Investment in Sales-Type Leases, Less Current       966           1,001
Portion
Goodwill                                                3,256         3,081
Intangible Assets, Net                                  1,066         793
Other Assets                                            68            136
 Total Assets                                    $   8,631     $ 8,553
LIABILITIES AND EQUITY
Current Liabilities:
 Current Portion of Long-Term Obligations and Other  $   456       $ 2
Short-Term Borrowings
 Accounts Payable                                    148           147
 Deferred Revenue                                    55            51
 Accrued Compensation and Benefits                   140           150
 Other Accrued Liabilities                           273           242
 Total Current Liabilities                       1,072         592
Long-Term Obligations, Less Current Portion             999           1,444
Deferred Income Taxes                                   710           638
Other Liabilities                                       492           493
 Total Liabilities                               3,273         3,167
Commitments and Contingencies
Stockholders' Equity:
 Preferred Stock (50.0 Authorized Shares; $.01 Par   —             —
Value) Issued – None
 Common Stock (1,200.0 Authorized Shares; $.01 Par
Value) Issued – 232.0 and 229.4 shares at December 31,  2             2
2013 and June 30, 2013, respectively
 Treasury Stock, at cost, 23.6 and 15.5 shares at    (812)         (505)
December 31, 2013 and June 30, 2013, respectively
 Additional Paid-In Capital                          4,960         4,886
 Retained Earnings                                   1,223         1,048
 Accumulated Other Comprehensive Loss                (15)          (45)
 Total Stockholders' Equity                          5,358         5,386
                                                        $   8,631     $ 8,553

CAREFUSION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                            Six Months Ended

                                                            December 31,
(in millions)                                               2013      2012
Cash and Cash Equivalents at July 1, Attributable to        $ 1,798   $ 1,648
Continuing Operations
Cash and Cash Equivalents at July 1, Attributable to        $ —       $ (1)
Discontinued Operations
Cash Flows from Operating Activities:
Net Income                                                  175       192
Loss from Discontinued Operations                           —         (3)
Income from Continuing Operations                           175       195
Adjustments to Reconcile Income from Continuing Operations
to Net Cash Provided by Operating Activities:
 Depreciation and Amortization                           93        91
 Other Non-Cash Items                                    56        47
 Change in Operating Assets and Liabilities, Excluding
Impact of Acquired Assets and Assumed Liabilities:
 Trade Receivables                                   15        3
 Inventories                                         (9)       (9)
 Net Investment in Sales-Type Leases                 59        (13)
 Accounts Payable                                    (13)      —
 Other Accrued Liabilities and Operating Items, Net  (79)      (57)
Net Cash Provided by Operating Activities – Continuing      297       257
Operations
Net Cash Provided by Operating Activities – Discontinued    —         1
Operations
Net Cash Provided by Operating Activities                   297       258
Cash Flows from Investing Activities:
Cash Paid for Acquisitions, Net of Cash Received            (501)     (62)
Additions to Property and Equipment                         (37)      (40)
Other Investing Activities                                  (1)       (1)
Net Cash Used in Investing Activities – Continuing          (539)     (103)
Operations
Net Cash Used in Investing Activities                       (539)     (103)
Cash Flows from Financing Activities:
Repayment of Long-Term Obligations                          (1)       (250)
Share Repurchase Programs                                   (301)     —
Proceeds from Stock Option Exercises                        51        —
Other Financing Activities                                  (8)       (9)
Net Cash Used in Financing Activities – Continuing          (259)     (259)
Operations
Net Cash Used in Financing Activities                       (259)     (259)
Effect of Exchange Rate Changes on Cash                     12        15
Net Decrease in Cash and Cash Equivalents – Continuing      (489)     (90)
Operations
Net Increase in Cash and Cash Equivalents – Discontinued    —         1
Operations
Net Decrease in Cash and Cash Equivalents                   (489)     (89)
Cash and Cash Equivalents at December 31, Attributable to   $ 1,309   $ 1,558
Continuing Operations
Cash and Cash Equivalents at December 31, Attributable to   $ —       $ —
Discontinued Operations
Non-Cash Investing and Financing Activities:
Asset Acquired by Entering into Capital Lease               $ 4       $ —

(Logo: http://photos.prnewswire.com/prnh/20100706/CAREFUSIONLOGO)

SOURCE CareFusion Corp.

Website: http://www.carefusion.com
Contact: Media, Kristen Cardillo, +1-858-617-2317,
kristen.cardillo@carefusion.com, or Investors, Jim Mazzola, +1-858-617-1203,
jim.mazzola@carefusion.com
 
Press spacebar to pause and continue. Press esc to stop.