The Washington Post
Business Context

Cardinal Health’s opioid tax disclosure

Updated Feb 12, 2021 at 11:43 AM EST

The drug distributor said in its quarterly SEC filing in February 2021 it plans to file for a federal income tax refund of $974 million as a result of taking a tax break from the opioid settlement. Cardinal says it already recorded a loss related to the opioid litigation because Cardinal insures itself through a wholly-owned insurance subsidiary. The opioid litigation caused a loss to the insurance company’s reserve, and Cardinal is classifying that loss as a “net operating loss carryback” — a tax break Congress included in last year’s coronavirus bailout package as a way of helping companies struggling during the pandemic.

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Cardinal Health's SEC filing where they disclose plans to take a tax deduction.