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Last updated on April 20, 2014 at 8:04 EDT

CareFusion Files Fiscal 2012 Form 10-K

January 31, 2013

SAN DIEGO, Jan. 31, 2013 /PRNewswire/ — CareFusion Corporation (NYSE: CFN) today announced that it has filed its annual report on Form 10-K for the fiscal year ended June 30, 2012. The company had delayed the filing to correct its accounting for sales-type leases in its Pyxis® medication and supply dispensing product lines.

The accounting correction resulted in immaterial revisions to CareFusion’s preliminary fourth quarter and full-year fiscal 2012 financial results, its financial statements for fiscal years ended June 30, 2010 and 2011, and selected financial data for the fiscal years ended June 30, 2008 through 2011. Although the effect of these revisions was not material to these financial statements, the cumulative impact would have been material in the fiscal year ended June 30, 2012, which is why the company made the revisions. These corrections are considered a restatement under generally accepted accounting principles.

“This accounting matter did not materially affect our financial results and, importantly, has no effect on the cash flows we receive under our lease arrangements,” said James F. Hinrichs, chief financial officer. “We are pleased to have this work completed and remain on track to become current in our Form 10-Q filings by our next deadline on Feb. 11.”

The company intends to report its first and second quarter fiscal 2013 results on Feb. 7.

Revised financial results

Revisions to the company’s preliminary fourth quarter and full-year fiscal 2012 results reflect both the impact of the accounting modification on sales-type leases and other accounting items recorded in the fourth quarter because it was considered an open accounting period until CareFusion filed its Form 10-K. This included a $7 million increase in recall reserves related to a previously disclosed product recall.

For the three months ended June 30, 2012, revenue was $961 million; operating income was $155 million, or $162 million on an adjusted basis excluding nonrecurring items; and adjusted operating income was 16.9 percent of revenue. Operating expenses during the quarter totaled $320 million, and adjusted operating expenses were $313 million. Income from continuing operations was $91 million, or $0.41 per diluted share. Adjusted income from continuing operations during the quarter was $98 million, or $0.44 per diluted share.

For the fiscal year ended June 30, 2012, revenue was $3.6 billion; operating income was $574 million, or $611 million on an adjusted basis excluding nonrecurring items; and adjusted operating income was 17 percent of revenue. Operating expenses during the year were $1.2 billion on both a reported and an adjusted basis. Income from continuing operations was $361 million, or $1.60 per diluted share. Adjusted income from continuing operations during the year was $390 million, or $1.72 per diluted share.

Conference call

CareFusion plans to release first and second quarter fiscal 2013 results on Thursday, Feb. 7, following the close of trading on the New York Stock Exchange.

The company will host a conference call on Feb. 7 at 2 p.m. PST (5 p.m. EST) to discuss the results for its first quarter fiscal 2013, ended on Sept. 30, 2012, and second quarter fiscal 2013, ended on Dec. 31, 2012. 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 (800) 706-7748 within the U.S. or (617) 614-3473 from outside the U.S., and use the access code 86859607. A replay of the conference call will be available from 4 p.m. PST (7 p.m. EST) on Feb. 7 through 8:59 p.m. PST on Feb. 14 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 52148625.

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 market-leading technologies including Alaris® infusion pumps, Pyxis® automated dispensing and patient identification systems, AVEA®, AirLife(TM) and LTV® series 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 more than 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 operating expenses,” “adjusted operating income,” and “adjusted segment profit,” which exclude nonrecurring items primarily related to the spinoff and nonrecurring restructuring and acquisition integration charges; and “adjusted income from continuing operations” and “adjusted diluted earnings per share from continuing operations,” and “adjusted effective tax rate,” which exclude nonrecurring items primarily related to the spinoff, nonrecurring restructuring and acquisition integration charges and nonrecurring tax items. The most directly comparable GAAP financial measures for these non-GAAP financial measures are operating expenses, operating income, segment profit, 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 quarter ended June 30, 2012, and the fiscal years ended June 30, 2010, 2011 and 2012, including 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 non-recurring 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, including statements regarding the modified application of lease accounting principles to the company’s sales-type leases; and the timing for filing the company’s Form 10-Q for the quarter ended Sept. 30 and Form 10-Q for the quarter ended Dec. 31. 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 anticipated by the forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that additional information may arise during the course of the company’s lease accounting review that may require the company to make additional adjustments; the time and effort required to complete the company’s analysis and the review by the company’s independent auditors; and the time and effort required to prepare and file its periodic reports with the SEC, as well as other risks described more fully in Item 1A in the company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2012, which are expressly incorporated herein by reference, and other factors as may periodically be described in the company’s filings with the SEC. The CareFusion news release and the information contained herein reflect management’s views as of Jan. 31, 2013. 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
                                                                                                             CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                        (UNAUDITED)

                                                                             Quarter Ended                                  Fiscal Year Ended
                                                                                June 30,                                        June 30,
                                                                                --------                                        --------
                                                                                                 2012                                          2012
                                                                                                 ----                                          ----
    (in millions, except per share amounts)                                    Preliminary(1)                                  As Reported(2)                                   Preliminary(1)                                  As Reported(2)
                                                                             -------------                                    -------------                                   -------------                                    -------------
    Revenue                                                                                      $968                                          $961                                             $3,601                                        $3,598
    Cost of Products Sold                                                                         479                                           486                                              1,788                                         1,794
                                  Gross Margin                                                    489                                           475                                              1,813                                         1,804

    Selling, General and Administrative Expenses                                                  260                                           267                                              1,026                                         1,033
    Research and Development Expenses                                                              46                                            46                                                164                                           164
    Restructuring and Acquisition Integration
     Charges                                                                                        7                                             7                                                 33                                            33
    Gain on the Sale of Assets                                                                      -                                             -                                                  -                                             -
                                   Operating
                                   Income                                                         176                                           155                                                590                                           574

    Interest Expense and Other, Net                                                                23                                            24                                                 86                                            87
    Income Before Income Tax                                                                      153                                           131                                                504                                           487
    Provision for Income Tax                                                                       46                                            40                                                131                                           126
    Income from Continuing Operations                                                             107                                            91                                                373                                           361
    Discontinued Operations:
                                   Loss from the
                                   Disposal of
                                   Discontinued
                                   Businesses,
                                   Net of Tax                                                      (5)                                           (4)                                               (78)                                          (78)
                                   Income from
                                   the
                                   Operations
                                   of
                                   Discontinued
                                   Businesses,
                                   Net of Tax                                                       8                                             9                                                  8                                            10
    Income (Loss) from Discontinued Operations,
     Net of Tax                                                                                     3                                             5                                                (70)                                          (68)

    Net Income                                                                                   $110                                           $96                                               $303                                          $293
                                                                                                 ====                                           ===                                               ====                                          ====

    Per Share Amounts:(3)

    Basic Earnings (Loss) per Common Share:
                                   Continuing
                                   Operations                                                   $0.48                                         $0.41                                              $1.67                                         $1.62
                                   Discontinued
                                   Operations                                                   $0.02                                         $0.02                                             $(0.32)                                       $(0.31)
                                   Basic
                                   Earnings per
                                   Common Share                                                 $0.50                                         $0.43                                              $1.35                                         $1.31

    Diluted Earnings (Loss) per Common Share:
                                   Continuing
                                   Operations                                                   $0.48                                         $0.41                                              $1.65                                         $1.60
                                   Discontinued
                                   Operations                                                   $0.02                                         $0.02                                             $(0.31)                                       $(0.30)
                                   Diluted
                                   Earnings per
                                   Common Share                                                 $0.49                                         $0.43                                              $1.34                                         $1.30

    Weighted-Average Number of Common Shares
     Outstanding:
                                  Basic                                                         221.7                                         221.7                                              223.7                                         223.7
                                  Diluted                                                       224.2                                         224.2                                              226.0                                         226.0

    Adjusted Financial Measures:4,5
                                   Operating
                                   Expenses                                                      $306                                          $313                                             $1,186                                        $1,193
                                   Operating
                                   Income                                                        $183                                          $162                                               $627                                          $611
                                   Income from
                                   Continuing
                                   Operations                                                    $114                                           $98                                               $402                                          $390
                                   Diluted EPS
                                   from
                                   Continuing
                                   Operations                                                   $0.51                                         $0.44                                              $1.78                                         $1.72
                                   Effective Tax
                                   Rate                                                          28.7%                                         28.4%                                              25.7%                                         25.6%
                                  -------------                                                  ----                                          ----                                               ----                                          ----


         (1)   Preliminary financial
               results provided on
               August 9, 2012 and
               included on our Form 8-K
               filed on that same date.

         (2)   Financial results included
               within the fiscal 2012
               Form 10-K filed on
               January 31, 2013.

         (3)   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.

           4   Adjusted financial measures
               are non-GAAP measures
               that exclude certain
               nonrecurring items, as
               discussed above under Use
               of Non-GAAP Financial
               Measures. These measures
               are reconciled to
               comparable GAAP measures
               in the Reconciliation of
               Non-GAAP Financial
               Measures included on the
               pages that follow.

           5   Through June 30, 2012, the
               Company included the
               impact of acquisition
               related intangible
               amortization expense
               within its Adjusted
               Financial Measures. The
               Adjusted Financial
               Measures within this table
               and the tables that follow
               include the impact of
               acquisition related
               intangible asset
               amortization expense,
               which conforms to the
               presentation under which
               these periods were
               originally reported.

                                                                                                            CAREFUSION CORPORATION
                                                                                                       CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                  (UNAUDITED)

                                                                                Fiscal Years Ended
                                                                                     June 30,
                                                                                     --------
                                                                                            2011                                         2010
                                                                                            ----                                         ----
    (in millions, except per share amounts)                                 As Reported(1)                                As Restated(2)                               As Reported(1)                                As Restated(2)
                                                                             -------------                                -------------                                 -------------                                -------------
    Revenue                                                                               $3,432                                       $3,440                                        $3,376                                       $3,377
    Cost of Products Sold                                                                  1,671                                        1,672                                         1,685                                        1,686
                                  Gross Margin                                             1,761                                        1,768                                         1,691                                        1,691

    Selling, General and Administrative Expenses                                           1,067                                        1,067                                         1,090                                        1,090
    Research and Development Expenses                                                        146                                          146                                           148                                          148
    Restructuring and Acquisition Integration
     Charges                                                                                  64                                           64                                            15                                           15
    Gain on the Sale of Assets                                                               (13)                                         (13)                                          (12)                                         (12)
                                   Operating
                                   Income                                                    497                                          504                                           450                                          450

    Interest Expense and Other, Net                                                           79                                           79                                           105                                          105
    Income Before Income Tax                                                                 418                                          425                                           345                                          345
    Provision for Income Tax                                                                 124                                          126                                           184                                          184
    Income from Continuing Operations                                                        294                                          299                                           161                                          161
    Discontinued Operations:
                                   Loss from the
                                   Disposal of
                                   Discontinued
                                   Businesses,
                                   Net of Tax                                                (45)                                         (45)                                           (8)                                          (8)
                                   Income (Loss)
                                   from the
                                   Operations
                                   of
                                   Discontinued
                                   Businesses,
                                   Net of Tax                                                 (5)                                          (5)                                           41                                           41
    Income (Loss) from Discontinued Operations,
     Net of Tax                                                                              (50)                                         (50)                                           33                                           33

    Net Income                                                                              $244                                         $249                                          $194                                         $194
                                                                                            ====                                         ====                                          ====                                         ====

    Per Share Amounts:(3)

    Basic Earnings (Loss) per Common Share:
                                   Continuing
                                   Operations                                              $1.32                                        $1.34                                         $0.73                                        $0.73
                                   Discontinued
                                   Operations                                             $(0.23)                                      $(0.23)                                        $0.15                                        $0.15
                                   Basic
                                   Earnings per
                                   Common Share                                            $1.09                                        $1.11                                         $0.88                                        $0.88

    Diluted Earnings (Loss) per Common Share:
                                   Continuing
                                   Operations                                              $1.30                                        $1.32                                         $0.72                                        $0.72
                                   Discontinued
                                   Operations                                             $(0.22)                                      $(0.22)                                        $0.15                                        $0.15
                                   Diluted
                                   Earnings per
                                   Common Share                                            $1.08                                        $1.10                                         $0.87                                        $0.87

    Weighted-Average Number of Common Shares
     Outstanding:
                                  Basic                                                    222.8                                        222.8                                         221.5                                        221.5
                                  Diluted                                                  225.1                                        225.1                                         223.0                                        223.0

    Adjusted Financial Measures:4,5
                                   Operating
                                   Expenses                                               $1,158                                       $1,158                                        $1,175                                       $1,175
                                   Operating
                                   Income                                                   $603                                         $610                                          $516                                         $516
                                   Income from
                                   Continuing
                                   Operations                                               $374                                         $379                                          $304                                         $304
                                   Diluted EPS
                                   from
                                   Continuing
                                   Operations                                              $1.66                                        $1.68                                         $1.36                                        $1.36
                                   Effective Tax
                                   Rate                                                     28.7%                                        28.7%                                         29.8%                                        29.8%
                                  -------------                                             ----                                         ----                                          ----                                         ----

    ____________

               (1)   Financial results as
                     previously reported in
                     filings with the SEC and
                     included in our Form 8-K
                     filed on August 9, 2012.

               (2)   Financial results included
                     within the fiscal 2012 Form
                     10-K filed on January 31,
                       2013.

               (3)   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.

                 4   Adjusted financial measures
                     are non-GAAP measures that
                     exclude certain nonrecurring
                     items, as discussed above
                     under Use of Non-GAAP
                     Financial Measures. These
                     measures are reconciled to
                     comparable GAAP measures in
                     the Reconciliation of Non-
                     GAAP Financial Measures
                     included on the pages that
                     follow.

                 5   Through June 30, 2012, the
                     Company included the impact
                     of acquisition related
                     intangible amortization
                     expense within its Adjusted
                     Financial Measures. The
                     Adjusted Financial Measures
                     within this table and the
                     tables that follow include
                     the impact of acquisition
                     related intangible asset
                     amortization expense, which
                     conforms to the presentation
                     under which these periods
                     were originally reported.

                                                                                                                                                                                                   CAREFUSION CORPORATION
                                                                                                                                                                                         SEGMENT AND SELECT BUSINESS LINE REVENUES
                                                                                                                                                                                                        (UNAUDITED)

                                                                             Quarter Ended                               Fiscal Year Ended                            Fiscal Year Ended                             Fiscal Year Ended
                                                                                June 30,                                     June 30,                                      June 30,                                     June 30,
                                                                                --------                                     --------                                      --------                                     --------
                                                                                                 2012                                       2012                                            2011                                       2010
                                                                                                 ----                                       ----                                            ----                                       ----
    (in millions)                                                              Preliminary(1)                               As Reported(2)                                Preliminary(1)                               As Reported(2)                             As Reported(3)                             As Restated(2)                            As Reported(3)                             As Restated(2)
    ------------                                                               -------------                                 -------------                                -------------                                 -------------                              -------------                             -------------                              -------------                             -------------

    Medical Systems
                    Dispensing
                    Technologies                                                                 $285                                       $278                                          $1,041                                     $1,038                                       $902                                      $910                                       $867                                      $868
                   Infusion Systems                                                               266                                        266                                             955                                        955                                        889                                       889                                        840                                       840
                    Respiratory
                    Technologies                                                                   88                                         88                                             295                                        295                                        267                                       267                                        338                                       338
                   Other                                                                            7                                          7                                              26                                         26                                         24                                        24                                         25                                        25

                   Total Medical Systems                                                         $646                                       $639                                          $2,317                                     $2,314                                     $2,082                                    $2,090                                     $2,070                                    $2,071

    Procedural Solutions4
                    Infection
                    Prevention                                                                   $145                                       $145                                            $576                                       $576                                       $568                                      $568                                       $463                                      $463
                    Medical
                    Specialties                                                                    80                                         80                                             317                                        317                                        322                                       322                                        310                                       310
                    Specialty
                    Disposables                                                                    65                                         65                                             266                                        266                                        304                                       304                                        300                                       300
                   Other                                                                           32                                         32                                             125                                        125                                        156                                       156                                        233                                       233
                   Total Procedural Solutions                                                    $322                                       $322                                          $1,284                                     $1,284                                     $1,350                                    $1,350                                     $1,306                                    $1,306

                   Total CareFusion                                                              $968                                       $961                                          $3,601                                     $3,598                                     $3,432                                    $3,440                                     $3,376                                    $3,377
                                  ____________

               (1)   Preliminary financial results provided on August 9,
                     2012 and included in our Form 8-K filed on that
                     same date.

               (2)   Financial results included within the fiscal 2012
                     Form 10-K filed on January 31, 2013.

               (3)   Financial results as previously reported in filings
                     with the SEC and included in our Form 8-K filed on
                     August 9, 2012.

                 4   Reflects the impact of businesses reclassified to
                     discontinued operations.

                                                                                                                       CAREFUSION CORPORATION
                                                                                                           RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                                                                                            (UNAUDITED)

    Adjusted Financial Data:
                                                                                         Segment Profit
                                                                                         --------------
    (in millions, except per share amounts)                                              Medical Systems       Procedural Solutions                SG&AExpenses         OperatingExpenses7         OperatingIncome       IncomefromContinuing         Diluted
                                                                                                                                                                                                                               Operations            EPS from
                                                                                                                                                                                                                                                     Continuing
                                                                                                                                                                                                                                                    Operations8
                                                                                                                                                                                                                                                    -----------

    Quarter Ended June 30, 2012
    GAAP, As Reported(1)                                                                                 $127                                 $28                 $267                       $320                  $155                        $91              $0.41
                                            Restructuring and Acquisition Integration(2)                    3                                   4                    -                         (7)                    7                          7               0.03
    Adjusted                                                                                             $130                                 $32                 $267                       $313                  $162                        $98              $0.44

    Fiscal Year Ended June 30, 2012
    GAAP, As Reported(1)                                                                                 $465                                $109               $1,033                     $1,230                  $574                       $361              $1.60
                                            Restructuring and Acquisition Integration(2)                   18                                  15                    -                        (33)                   33                         33               0.16
                                            Spinoff(3)                                                      3                                   1                   (4)                        (4)                    4                          4               0.02
                                            Income Tax Items4                                               -                                   -                    -                          -                     -                         (8)             (0.04)

    Adjusted                                                                                             $486                                $125               $1,029                     $1,193                  $611                       $390              $1.72

    Fiscal Year Ended June 30, 2011
    GAAP, As Restated(1)                                                                                 $382                                $109               $1,067                     $1,277                  $504                       $299              $1.32
                                            Restructuring and Acquisition Integration(2)                   34                                  30                    -                        (64)                   64                         64               0.29
                                            Spinoff(3)                                                     31                                  24                  (55)                       (55)                   55                         55               0.25
                                            Income Tax Items4                                               -                                   -                    -                          -                     -                        (26)             (0.12)
                                            Gain on the Sale of Assets5                                     -                                   -                    -                          -                   (13)                       (13)             (0.06)

    Adjusted                                                                                             $447                                $163                $1012                     $1,158                  $610                       $379              $1.68

    Fiscal Year Ended June 30, 2010
    GAAP, As Restated(1)                                                                                 $348                                 $90               $1,090                     $1,253                  $450                       $161              $0.72
                                            Restructuring and Acquisition Integration(2)                    5                                  10                    -                        (15)                   15                         15               0.07
                                            Spinoff(3)                                                     35                                  28                  (63)                       (63)                   63                         63               0.28
                                            Income Tax Items4                                               -                                   -                    -                          -                     -                         55               0.25
                                            Interest Expense and Other, Net                                 -                                   -                    -                          -                     -                         22               0.10
                                            Gain on the Sale of Assets6                                     -                                   -                    -                          -                   (12)                       (12)             (0.05)

    Adjusted                                                                                             $388                                $128               $1,027                     $1,175                  $516                       $304              $1.36
                               ____________

                     (1)   Financial results included within the
                           fiscal 2012 Form 10-K filed on January 31,
                               2013.

                     (2)   Restructuring and acquisition integration
                           charges primarily relate to nonrecurring
                           expenses associated with closing and
                           consolidating facilities, as well as
                           rationalizing headcount, and aligning
                           operations.

                     (3)   Spinoff charges primarily relate to
                           nonrecurring incremental expenses
                           associated with our spinoff from
                           Cardinal Health, Inc.

                       4   Income tax items primarily relate to the tax
                           impact of nonrecurring restructuring and
                           acquisition integration and spinoff
                           charges, as well as nonrecurring discrete
                           benefits or charges associated with the
                           spinoff.

                       5   The $13 million net gain on the sale of
                           assets relates primarily to the sale of
                           our OnSite Services business ($15 million
                           gain), offset by a post closing adjustment
                           related to the sale of our Research
                           Services business ($2 million loss).

                       6   The $12 million net gain on the sale of
                           assets relates primarily to the sale of
                           our Research Services business.

                       7   Operating expenses consist of selling,
                           general and administrative, research and
                           development, and restructuring and
                           acquisition integration expenses.

                       8   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 millions)                                      GAAP                     Nonrecurring         Adjusted(3)
                                                  As Reported(1)                  Items(2)
    ---                                           -------------                    -------
    Quarter Ended June
     30, 2012
                       Income Before Income Tax                           $131                   $7              $138
                       Provision for Income Tax                            $40             $      -               $40
                       Effective Tax Rate4                                30.0%                 2.2%             28.4%

    Fiscal Year Ended
     June 30, 2012
                       Income Before Income Tax                           $487                  $37              $524
                       Provision for Income Tax                           $126                   $8              $134
                       Effective Tax Rate4                                25.9%                22.0%             25.6%

                                                       GAAP                     Nonrecurring         Adjusted(3)
                                                  As Restated(1)                  Items(2)
                                                  -------------                    -------
    Fiscal Year Ended
     June 30, 2011
                       Income Before Income Tax                           $425                 $106              $531
                       Provision for Income Tax                           $126                  $26              $152
                       Effective Tax Rate4                                29.9%                24.3%             28.7%

    Fiscal Year Ended
     June 30, 2010
                       Income Before Income Tax                           $345                  $88              $433
                       Provision for Income Tax                           $184                 $(55)             $129
                       Effective Tax Rate4                                53.3%              (63.1)%             29.8%
    ____________

                     (1)   Financial results
                           included within the
                           fiscal 2012 Form 10-K
                           filed on January 31,
                           2013.

                     (2)   Reflects nonrecurring
                           charges primarily
                           related to the
                           spinoff, nonrecurring
                           restructuring and
                           acquisition
                           integration charges,
                           and nonrecurring
                           income tax items.

                     (3)   Adjusted financial
                           information reflects
                           GAAP results adjusted
                           on a non-GAAP basis
                           to exclude
                           nonrecurring items
                           noted.

                       4   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.

SOURCE CareFusion Corporation


Source: PR Newswire