Transcription
AnnualReport21
Dear fellow shareholders,As I look back on the last 18 months,the sheer volume of change has beenremarkable, and the resilience that ouremployees, customers and communitieshave shown gives me optimism aboutthe road ahead. The pandemic hasilluminated to me the vital role ourcompany plays in the global healthcaresystem. I’ve said before that what we domatters, and it is our privilege to serveour customers, their patients and theircommunities around the world.Our response to COVID-19As the pandemic began, our company, along with so manyothers, adapted with urgency. We kept all our facilitiesopen and operating with new safety protocols, and ouressential employees embodied our Company values ofbeing accountable and mission-driven in their responseto the unprecedented needs of the healthcare system.We focused on protecting the health and safety of ouremployees, so they could deliver critical products andservices to our customers.We partnered with the Centers for Disease Control andPrevention (CDC) as a network administrator to enableretail independent, small chain and long-term carepharmacy customers to participate in the vaccinationeffort. Collectively to date, our enrolled network of 3,500plus community pharmacy customers who participate inthe Federal Retail Pharmacy Program have administeredmore than 3.6 million doses of COVID-19 vaccines. Nearly2,000 of our participating pharmacies serve vulnerablepopulations.
We were awarded a Strategic National Stockpile contractto store and distribute 80,000 pallets of personal protectiveequipment (PPE).We evaluated our entire supply chain following disruptionsafter the onset of the pandemic in early 2020. We diversifiedour sourcing to limit geographic concentrations and investedin additional self-manufacturing capabilities includingincreases in annual production of safety needles andsyringes, isolation gowns, and surgical and procedure masksin our own North American facilities. We expanded capacityfor our kitting operations so we can carry more inventoryfor customers. Also, we seized opportunities to innovate,by piloting technology solutions to incorporate robotics,automation and data analytics across our warehouse anddistribution processes.Throughout the past year, I’ve been taking action todrive performance, and will continue to move forwardwith urgency. For example, we divested the Cordis business, extended our Red Oak Sourcing agreement,extended our pharmaceutical distribution agreementswith CVS Health , and identified 250 million of additionalcost savings opportunities.At my direction, our management team is continuallyreviewing our business and seeking areas to improve.With the actions we’ve taken to date and our plans forFY22, I feel confident in our strategy, and am encouragedby the tailwinds behind our growth areas and strongcash flow generation.Our fiscal 2021 financial performanceWe had a strong start to FY21, which was overshadowed bydisappointing fourth quarter results. This was largely dueto a 197 million inventory reserve adjustment driven bychanging market conditions related to COVID-19 on certainhighly commoditized PPE products. To meet our customercommitments during the pandemic, we carried higher levelsof inventory in certain PPE categories during a period ofsignificantly increased demand, higher prices and longerthan normal supply chains.FY21 Financial summaryGAAPbasis ( M)FY21Non-GAAPbasis ( M)FY21 472 2,255N.M.(5)%Revenue 162,467N/A% change6%Diluted EPS1,2 2.08 5.57% changeN.M.2%Operatingearnings1% changeAlthough I am not satisfied with our full year performance,we did see growth in both segments, excluding the impactof COVID-19. As we move into FY22 and as the pandemic’seffects on our business lessen, this underlying growth givesme confidence in our strategy.In FY21, we grew revenue 6% versus the prior year, anddespite an estimated 200 million year-over-year operatingearnings headwind related to COVID-19, we grew non-GAAPEPS. We continued to aggressively streamline our coststructure and surpassed our enterprise cost savings targetfor the third consecutive year. We generated strongoperating cash flow, returned approximately 800 millionto shareholders through dividends and share repurchases,and strengthened our balance sheet by paying downapproximately 550 million of debt.1GAAP results include a pre-tax charge of 1.17 billion for the estimatedliability associated with lawsuits and claims brought against the company bystates and political subdivisions relating to the distribution of prescriptionopioid pain medications. This is incremental to the 5.63 billion chargeincurred in the first quarter of fiscal year 2020. The total pre-tax accrual forthese matters at June 30, 2021 is 6.73 billion.2Attributable to Cardinal Health, Inc.Please see “Explanation and Reconciliation of Non-GAAP Financial Measures”in our Fiscal Year 2021 Form 10-K for GAAP to Non-GAAP reconciliations.
What we valueIntegritywe hold ourselves to thehighest ethical standardsInclusivewe embrace differences todrive the best outcomesInnovativewe develop new ways of thinking,operating and serving customersAccountablewe bring passion, determination andgrit to deliver on our commitmentsMission drivenMoving forwardwe serve the greater goal of healthcareHow we will growGrow & developour peopleStrengthenour coreFocus on thecustomerInvest for thefutureDeliverresultsWe’re prioritizing investment in our strategic growthareas — Specialty Solutions, at-Home Solutions, Nuclear& Precision Health Solutions, Medical Services andOutcomes — and expect these businesses to collectivelyrealize double-digit growth in FY22. And across ourbusiness, we’re enhancing our IT infrastructure in keyareas to increase capabilities and digitization, improve thecustomer experience, and drive productivity.In our Pharmaceutical segment, we’re nearing theend of a multi-year project, accompanied by significantinvestment spending, to modernize our technologyinfrastructure which will simplify our processes, improvedata insights, and enhance our ability to grow andgenerate better outcomes for our customers.In the Medical segment, we have been taking quick,decisive action throughout the fiscal year to streamlineand simplify our Medical business, and this workremains a top priority heading into FY22. We’ve recentlyrestructured our organization to establish clearer lines ofownership and accountability and made managementchanges, including appointing a single leader to manageU.S. Medical Products and Distribution, as well as a singleleader to manage International. With the divestiture of
Cordis , we plan to significantly reduce our internationalcommercial footprint — and have initially identified36 markets we intend to exit — so we can focus on thelocations where we have a competitive advantage andcan generate sustained long-term growth.With respect to the enterprise, I’m aggressively reviewing ourcost structure to continue streamlining our operations andprocesses and intend to reinvest a portion of these savings tofuel future growth. In FY22, I plan to launch initiatives that weexpect to deliver an additional 250 million in savings by FY23.I will continue to take a balanced, disciplined andshareholder-friendly approach to capital deployment, witha focus on investing in the business, maintaining a strongbalance sheet and returning cash to shareholders.Opioid updateIn July, we announced that we have negotiated acomprehensive proposed settlement agreement andsettlement process designed to achieve broad resolutionof governmental opioid claims. As I write this letter, wehave determined that enough states have agreed to settleto proceed to the next phase, and each participatingstate will offer its political subdivisions the opportunityto participate in the settlement for an additional 120-dayperiod, which ends January 2, 2022. If all conditions aresatisfied, this agreement would result in the settlement of asubstantial majority of opioid lawsuits filed by state and localgovernmental entities and, depending on the level of stateand subdivision participation, we would pay up to 6.4 billionover 18 years.In closingIn January, we recognized our 50th anniversary. Fromour start as a grocery distributor, we’ve evolved andgrown into the company we are today — a distributor ofpharmaceuticals, a global manufacturer and distributorof medical and laboratory products, and a provider oftechnology-enabled performance and data solutions forhealthcare facilities. While the events of the last year haveintroduced significant, rapid changes for our businessand the world we live in, over 50 years we’ve learned thatchange is the only constant. We’ve adapted and pivotedat every step, using grit and determination to turn ourchallenges into opportunities.I’m working to transform our business through growth,innovation and technology, positioning us to best serve ourcustomers and their patients — now, and into the future.Finally, I want to thank our 44,000 employees for their hardwork and resilience. Their dedication makes it possible forCardinal Health to fulfill its mission of improving the lives ofpeople every day. I look forward to a healthier tomorrow.With regards,Mike KaufmannCEOThis is an important step forward for our company. As we’veconsistently said, we remain committed to being a part ofthe solution to the U.S. opioid epidemic and believe thesettlement would provide relief for our communities andcertainty for our shareholders.Important Information Regarding Forward-Looking Statements: This Report includes forward-looking statements addressing expectations, prospects and other matters that are dependent upon futureevents or developments. These forward-looking statements may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “continue,” “likely,” andsimilar expressions. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For more information about these risksand uncertainties, please review our Forms 10-K, 10-Q and 8-K and Exhibits to those Reports, which are available at ir.cardinalhealth.com. Except to the extent required by applicable law, we undertake noobligation to update or revise any forward-looking statement.
Board of directorsGregory B. KennyIndependent Chairman of the BoardRetired President and Chief Executive Officerof General Cable CorporationCommittees: N, AH, RCarrie S. CoxRetired Executive Vice President and Presidentof Global Pharmaceuticals, Schering-PloughCorporation, Retired Chairman andChief Executive Officer of Humacyte, Inc.Committees: H, AHPatricia A. Hemingway HallRetired President and Chief Executive Officerof Health Care Service CorporationCommittees: H, NAkhil JohriRetired Executive Vice President and Chief Financial Officerof United Technologies CorporationCommittees: A, NMichael C. KaufmannChief Executive Officer of Cardinal Health, Inc.Nancy KilleferBruce L. DowneyRetired Chairman and Chief Executive Officerof Barr Pharmaceuticals, Inc.,Partner of NewSpring Health Capital II, L.P.Committees: N, AHRetired Senior Partner, Public Sector Practiceof McKinsey & Company, Inc.Committees: H, RSheri H. EdisonRetired Executive Vice President andChief Financial Officer of General Motors CorporationCommittee: ARetired Executive Vice President and General Counselof Amcor plcCommittees: AH, RDavid C. EvansRetired Executive Vice President and Chief FinancialOfficer of The Scotts Miracle-Gro Company andBattelle Memorial InstituteCommittee: AJ. Michael Losh1Dean A. ScarboroughRetired Chairman and Chief Executive Officerof Avery Dennison CorporationCommittees: H, RJohn H. WeilandRetired President and Chief Operating Officerof C. R. Bard, Inc.Committees: A, RExecutive teamVictor L. CrawfordJessica L. MayerMichele A.M. HolcombBrian S. RiceJason M. HollarOla M. SnowMichael C. KaufmannSarah D. WillsChief Executive Officer, Pharmaceutical SegmentExecutive Vice President, Chief Strategy andBusiness Development OfficerChief Financial OfficerChief Executive OfficerChief Legal and Compliance OfficerExecutive Vice President, Chief Information Officerand Customer Support ServicesChief Human Resources OfficerExecutive Vice President, Chief Corporate Affairs OfficerStephen M. MasonChief Executive Officer, Medical SegmentCommittee codesA: AuditAH: Ad HocH: Human Resources and CompensationN: Nominating and GovernanceR: Risk Oversight1The Ad Hoc Committee of independent directors assists the Board in overseeing thecompany’s response to the opioid crisis.All Board members, with the exception of CEO Mike Kaufmann, are independent.J. Michael Losh was not nominated for re-election at the 2021 Annual Meeting of Shareholders because he has reached the retirement age of 75.
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended June 30, 2021or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from toCommission File Number: 1-11373Cardinal Health, Inc.(Exact name of registrant as specified in its charter)Ohio31-0958666(State or other jurisdiction ofincorporation or organization)(IRS EmployerIdentification No.)7000 Cardinal Place , Dublin , Ohio43017(Address of principal executive offices)(Zip Code)(614) 757-5000(Registrant’s telephone number, including area code)Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon shares (without par value)CAHNew York Stock ExchangeSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No oIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No þIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past90 days. Yes þ No oIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growthcompany. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.Large accelerated filerNon-accelerated filerþ Accelerated filer Smaller reporting company Emerging growth companyIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revisedfinancial accounting standards provided pursuant to Section 13(a) of the Exchange Act oIndicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control overfinancial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.þIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þThe aggregate market value of voting stock held by non-affiliates on December 31, 2020, was the following: 15,693,865,917.The number of the registrant’s common shares, without par value, outstanding as of July 31, 2021, was the following: 290,441,408.Documents Incorporated by Reference:Portions of the registrant’s Definitive Proxy Statement to be filed for its 2021 Annual Meeting of Shareholders are incorporated by reference into the sections of this Form 10K addressing the requirements of Part III of Form 10-K.
Cardinal HealthFiscal 2021 Form 10-KTable of ContentsIntroductionManagement's Discussion and Analysis of Financial Condition and Results of OperationsExplanation and Reconciliation of Non-GAAP Financial MeasuresQuantitative and Qualitative Disclosures about Market RiskBusinessRisk FactorsPropertiesLegal ProceedingsMarket for Registrant's Common EquityReportsFinancial Statements and Supplementary DataDirectors, Executive Officers, and Corporate GovernanceExhibitsForm 10-K Cross Reference IndexSignatures14E7 A4? !84?G; K F64? BE@ Page2326303240474849515689919596
IntroductionIntroductionReferences to Cardinal Health and Fiscal YearsAs used in this report, "we," "our," "us," "Cardinal Health" and similar pronouns refer to Cardinal Health, Inc. and its majority-ownedsubsidiaries, unless the context requires otherwise. Our fiscal year ends on June 30. References to fiscal 2022, 2021, 2020, 2019, 2018and 2017 are to the fiscal years ended June 30, 2022, 2021, 2020, 2019, 2018 and 2017, respectively. Except as otherwise specified,information in this report is provided as of June 30, 2021.Non-GAAP Financial MeasuresIn this report, including in the "Fiscal 2021 Overview" section of Management's Discussion and Analysis of Financial Condition and Resultsof Operations ("MD&A"), we use financial measures that are derived from consolidated financial data but are not presented in our financialstatements that are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures are considered“non-GAAP financial measures” under the Securities and Exchange Commission (“SEC”) rules. The reasons we use these non-GAAPfinancial measures and the reconciliations to their most directly comparable GAAP financial measures are included in the “Explanation andReconciliation of Non-GAAP Financial Measures” section following MD&A in this report.Management's Discussion and Analysis of Financial Condition and Results of OperationsOur MD&A within this Form 10-K generally discusses fiscal 2021 and fiscal 2020 items and year-to-year comparisons between fiscal 2021and fiscal 2020. Fiscal 2019 items and discussions of year-to-year comparisons between fiscal 2020 and fiscal 2019 that are not includedin this Form 10-K can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our AnnualReport on Form 10-K for the fiscal year ended June 30, 2020 (the "Fiscal 2020 Form 10-K").Important Information Regarding Forward-Looking StatementsThis report (including information incorporated by reference) includes forward-looking statements addressing expectations, prospects,estimates and other matters that are dependent upon future events or developments. Many forward-looking statements appear in MD&Aand Risk Factors, but there are others throughout this report, which may be identified by words such as “expect,” “anticipate,” “intend,”“plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue,” “likely,” and similar expressions, and include statements reflectingfuture results or guidance, statements of outlook and expense accruals. These matters are subject to risks and uncertainties that couldcause actual results to differ materially from those projected, anticipated or implied. The most significant of these risks and uncertaintiesare described in “Risk Factors” in this report and in Exhibit 99.1 to the Form 10-K included in this report. Forward-looking statements in thisreport speak only as of the date of this document. Except to the extent required by applicable law, we undertake no obligation to update orrevise any forward-looking statement.Available InformationOur Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports areavailable free of charge on our website (www.cardinalhealth.com), under the “Investor Relations — Financial Reporting — SEC Filings”caption, as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC. The SEC also maintains awebsite (www.sec.gov) where you can search for annual, quarterly and current reports, proxy and information statements, and otherinformation regarding us and other public companies.4E7 A4? !84?G; K F64? BE@ 2
MD&AAbout Cardinal HealthManagement's Discussion and Analysis of Financial Conditionand Results of OperationsAbout Cardinal HealthCardinal Health, Inc., an Ohio corporation formed in 1979, is a globally integrated healthcare services and products company providingcustomized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices andpatients in the home. We provide pharmaceuticals and medical products and cost-effective solutions that enhance supply chain efficiency.We connect patients, providers, payers, pharmacists and manufacturers for integrated care coordination and better patient management.We manage our business and report our financial results in two segments: Pharmaceutical and Medical.Pharmaceutical SegmentMedical SegmentOur Pharmaceutical segment distributes branded and genericpharmaceutical, specialty pharmaceutical and over-the-counterhealthcare and consumer products in the United States. Thissegment also provides services to pharmaceutical manufacturersand healthcare providers for specialty pharmaceutical products;operates nuclear pharmacies and radiopharmaceuticalmanufacturing facilities; provides pharmacy management servicesto hospitals, as well as medication therapy management andpatient outcomes services to hospitals, other healthcare providersand payers; and repackages generic pharmaceuticals and overthe-counter healthcare products.Our Medical segment manufactures, sources and distributesCardinal Health branded medical, surgical and laboratory products,which are sold in the United States, Canada, Europe, Asia andother markets. In addition to distributing Cardinal Health brandedproducts, this segment also distributes a broad range of medical,surgical and laboratory products known as national brand productsand provides supply chain services and solutions to hospitals,ambulatory surgery centers, clinical laboratories and otherhealthcare providers in the United States and Canada. Thissegment also distributes medical products to patients' homes inthe United States through our Cardinal Health at-Home Solutionsdivision.34E7 A4? !84?G; K F64? BE@
MD&AResults of OperationsConsolidated ResultsFiscal 2021 OverviewRevenueRevenue for fiscal 2021 was 162.5 billion, a 6 percent increase from the prior year, primarily due to sales growth from pharmaceuticaldistribution and specialty solutions customers.GAAP and Non-GAAP Operating Earnings/(Loss)(in millions)2021GAAP operating earnings/(loss)2020 472Surgical gown recall costs/(income) Change(4,098)(28)State opioid assessment related to prior fiscal years383Restructuring and employee severance114122Amortization and other acquisition-related costs451524Impairments and (gain)/loss on disposal of assetsLitigation (recoveries)/charges, netNon-GAAP operating earnings 7971,1295,7412,255N.M.85 2,384(5)%The sum of the components and certain computations may reflect rounding adjustments.We had GAAP operating earnings of 472 million and a GAAP operating loss of 4.1 billion during fiscal 2021 and 2020, respectively,which includes pre-tax charges of 1.17 billion and 5.63 billion, respectively, recognized for the estimated liability associated with lawsuitsand claims brought against us by states and political subdivisions relating to the distribution of prescription opioid pain medications. Seefurther description of opioid lawsuits in the Significant Developments in Fiscal 2021 and Trends section in this MD&A and Note 7 of the"Notes to Consolidated Financial Statements."GAAP and Non-GAAP operating earnings during fiscal 2021 were adversely impacted by COVID-19, which includes an inventory reserverecorded to reduce the carrying value of certain Medical segment personal protective equipment, primarily certain categories of gloves, tonet realizable value. Personal protective equipment ("PPE") refers to protective clothing, medical and non-medical grade gloves, faceshields, face masks and other equipment designed to protect the wearer from injury or the spread of infection or illness. See SignificantDevelopments in Fiscal 2021 and Trends section in this MD&A for additional information. Volume declines in our Pharmaceutical segmentgenerics program, which includes the impact of COVID-19, also had an adverse impact. These factors were partially offset by thebeneficial impact of enterprise-wide cost-savings measures, including global manufacturing efficiencies in the Medical segment, and highercontribution from branded pharmaceutical sales mix.GAAP and Non-GAAP Diluted EPS2021 (2)( per share)GAAP diluted EPS(1) 2020 (2) (3)2.08 (12.61)Surgical gown recall costs/(income)(0.07)0.22State opioid assessment related to prior fiscal years0.100.01Restructuring and employee severance0.290.31Amortization and other acquisition-related costs1.131.34Impairments and (gain)/loss on disposal of assets0.210.02Litigation (recoveries)/charges, net (4)1.7817.84Loss on early extinguishment of debt0.040.04(Gain)/loss on sale of equity interest in naviHealth0.01(1.68)—Transitional tax benefit, netNon-GAAP diluted EPS (1) 5.57ChangeN.M.(0.01) 5.452%The sum of the components and certain computations may reflect rounding adjustments.(1)Diluted earnings/(loss) per share attributable to Cardinal Health, Inc. ("diluted EPS" or "diluted loss per share")(2)The reconciling items are presented within this table net of tax, except for transitional tax benefit, net. See quantification of tax effect of each reconciling item in ourGAAP to Non-GAAP Reconciliations in the section titled "Explanation and Reconciliation of Non-GAAP Financial Measures."4E7 A4? !84?G; K F64? BE@ 4
MD&AResults of Operations(3)For fiscal 2020, GAAP diluted loss per share attributable to Cardinal Health, Inc. and the EPS impact from the GAAP to non-GAAP per share reconciling items arecalculated using a weighted average of 293 million common shares, which excludes potentially dilutive securities from the denominator due to their anti-dilutive effectsresulting from our GAAP net loss for the period. Fiscal 2020 non-GAAP diluted EPS is calculated using a weighted average of 295 million common shares, whichincludes potentially dilutive shares.(4)Litigation (recoveries)/charges, net, includes a tax benefit recorded during fiscal 2021 related to a net operating loss carryback. Our wholly-owned insurance subsidiaryrecorded 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 notimpact our pre-tax consolidated results, was deducted on our fiscal 2020 consolidated federal income tax return and contributed to a significant net operating loss fortax purposes. The net operating loss was carried back and adjusted our taxable income for fiscal 2015, 2016, 2017 and 2018 as permitted under the Coronavirus Aid,Relief and Economic Security (“CARES”) Act. The total benefit from the net operating loss carryback was 424 million; however, for purposes of Non-GAAP financialmeasures, we allocated 389 million of the benefit to litigation (recoveries)/charges, net, which is excluded from non-GAAP measures, based on the relative amount ofthe self-insurance pre-tax loss related to opioid litigation claims versus separate tax adjustments. The tax benefit allocated to the separate tax adjustments of 35million is included in non-GAAP measures.The charges we recognized in fiscal 2021 and 2020 for the estimated liability associated with lawsuits and claims brought against us bystates and political subdivisions relating to the distribution of prescription opioid pain medications had a (3.21) and (17.54) per shareafter-tax impact on GAAP diluted EPS, respectively.During fiscal 2021, GAAP and non-GAAP diluted EPS were positively impacted by 1.44 and 0.12 per share, respectively, due to a taxbenefit from the net operating loss carryback primarily related to a self-insurance pre-tax loss, as further described in SignificantDevelopments in Fiscal 2021 and Trends section in this MD&A and Note 7 of the "Notes to Consolidated Financial Statements."GAAP diluted EPS during fiscal 2020 was favorably impacted by a 1.68 per share gain from the sale of the remainder of our equityinterest in naviHealth described further in Note 2 of the "Notes to Consolidated Financial Statements."Cash and EquivalentsOur cash and equivalents balance was 3.4 billion at June 30, 2021 compared to 2.8 billion at June 30, 2020. The increase in cash duringfiscal 2021 was due to net cash provided by operating activities of 2.4 billion, offset by cash deployed of 573 million for dividends, 570 million for debt repayments, 400 million for capital expenditures, and 200 million for share repurchases.54E7 A4? !84?G; K F64? BE@
MD&AResults of OperationsSignificant Developments in Fiscal 2021 and TrendsCOVID-19The COVID-19 pandemic ("COVID-19") continues to affect the U.S. and global economies, and as previously disclosed, the pandemicbegan to materially affect our businesses during the third quarter of fiscal 2020. The length and severity of the pandemic and its impacts onour businesses and results of
business, we’re enhancing our IT infrastructure in key areas to increase capabilities and digitization, improve the customer experience, and drive productivity. In our Pharmaceutical segment, we’re nearing the end of a multi-year project, accompanied by sig
