Item 7.01: Regulation FD Disclosure
Cardinal Health, Inc. (the "Company") today issued a news release announcing
that it is initiating voluntary field actions for select surgical procedure
packs, which have been on voluntary hold since January 13, 2020. A copy of the
news release is included as Exhibit 99.1 to this report.
In connection with the matters described in the release and the January 21, 2020
voluntary recall of certain surgical gowns, the Company expects to record a $96
million pre-tax charge in the three-months ended December 31, 2019. This charge
represents our current best estimate of costs for the recalls and field action,
including inventory write-offs and other remediation costs, such as costs to
replace recalled products. Because loss contingencies are inherently
unpredictable and unfavorable developments or resolutions can occur, the amount
of ultimate loss may differ materially from this accrual. This charge, and any
future increases or adjustments, will be excluded from our non-GAAP financial
results.
In addition to the current estimated costs for the three months ended December
31, 2019, we expect that these recalls will have other negative impacts, which
could include: government investigations and enforcement actions by the U.S.
Food and Drug Administration or other regulators or U.S. or international
governmental bodies (possibly resulting in product seizures, additional recalls,
the issuance of safety alerts, the suspension or revocation of the authority to
produce, distribute and sell products, and other civil or criminal sanctions;
losses due to customer and patient claims, including product liability claims
and lawsuits; reputational harm; and loss of customers and sales.


Item 9.01: Financial Statements and Exhibits
(d) Exhibits
Exhibit
Number   Exhibit Description
           News release issued by the Company on January 30 announcing voluntary
99.1     field actions for select surgical procedure packs

Cautions Concerning Forward-Looking Statements This Form 8-K contains forward-looking statements addressing expectations, prospects, estimates and other matters that are dependent upon future events or developments. These statements 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 reflecting future results or guidance, statements of outlook and various accruals and estimates. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These risks and uncertainties include the risk that current and future costs associated with the recalls of our surgical gowns and related kits, including inventory write-off costs and other remediation costs, could have a material negative impact on our financial results; the risk that we could lose sales and customers due to the recalls or otherwise; the risks that these recalls could lead to actions by regulators or other governmental entities, and we may receive claims and lawsuits by customers and patients, including class action product liability lawsuits; and the risk that the recalls and related operational impacts could have additional consequences, such as business disruption and distraction of management and other key employees. Cardinal Health is subject to additional risks and uncertainties described in Cardinal Health's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. These statements reflect management's views as of January 30, 2020. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise the information in this Form 8-K or the accompanying news release.

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