CARDINAL HEALTH INCCAH

CARDINAL HEALTH INC PP&E Disclosure

10-KFiled Aug 12, 20252 min read
Property and Equipment
Property and equipment are carried at cost less accumulated depreciation. Property and equipment held for sale are recorded at the lower of cost less accumulated depreciation before the decision to dispose of the asset was made or fair value less cost to sell. When certain events or changes in operating conditions occur, an impairment assessment may be performed on the recoverability of the carrying amounts.
We capitalize project costs relating to computer software developed or obtained for internal use when the activities related to the project reach the application stage. Costs that are associated with the preliminary stage activities, training, maintenance, and all other post-implementation stage activities are expensed as they are incurred.
Depreciation expense is computed using the straight-line method over the estimated useful lives of the assets, including finance lease assets which are depreciated over the terms of their respective leases. We generally use the following range of useful lives for our property and equipment categories: buildings and improvements—3 to 39 years; machinery and equipment—3 to 20 years; capitalized software held for internal use—3 to 7 years; and furniture and fixtures—3 to 7 years. We recorded depreciation and amortization of capitalized software of $488 million, $470 million, and $441 million for fiscal 2025, 2024, and 2023, respectively.
The following table presents the components of property and equipment, net at June 30:
(in millions)20252024
Land, building, and improvements
$2,178 $1,879 
Machinery and equipment2,685 2,367 
Capitalized software held for internal use1,940 1,744 
Furniture and fixtures136 128 
Construction in progress577 577 
Total property and equipment, at cost7,516 6,695 
Accumulated depreciation and amortization(4,658)(4,166)
Property and equipment, net$2,858 $2,529 

Repairs and maintenance expenditures are expensed as incurred. Interest on long-term projects is capitalized using a rate that approximates the weighted-average interest rate on long-term
obligations, which was 5 percent at June 30, 2025. The amount of capitalized interest was immaterial for all periods presented.
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Historical Timeline

Fiscal YearFiled
2025Aug 12, 2025Showing above
2024Aug 14, 2024

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.

Other Available Disclosures

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