Cardinal Health disclosed an accounting error related to revenue recognition of third-party payor contracts within its at-Home Solutions operating segment. This error was identified and corrected in prior period financial statements, as detailed in the company's Annual Report on Form 10-K filed with the SEC on August 14, 2024.
The company determined that correcting the error in the current period would be material to its fiscal 2024 results. Revised financial statements were included in the Form 10-K to reflect this correction, along with other unrelated immaterial errors.
Cardinal Health conducted a recovery analysis under its Clawback Policy but determined no recovery was required, as annual incentive and PSU payouts were calculated based on the revised results. The company also found no indications of employee misconduct related to the accounting error that caused or contributed to the need for restatement.
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