DOW JONES NEWSWIRES 
 

Cardinal Health Inc. (CAH) expects to record $261 million in pretax costs for its spinoff of the CareFusion business.

Last week, Cardinal said its board approved splitting off the faster-growing clinical and medical products business from the company's much larger, core drug-distribution unit. The remaining business has been hurt by hospital-spending delays, leading it to cut jobs and try to control costs.

Cardinal, which has said it expects savings of up to $130 million in two years from the separation, has been hit with hospital-spending delays. In response, it has been cutting expenses and jobs.

Cardinal on Thursday said $113 million of the costs were incurred in the fiscal year that ended June 30.

Of the $261 million total, $44 million will go to transaction costs, $83 million to employee-related costs, $87 million to separating functions and stand-up costs and $47 million to other costs including financing expenses and accelerated depreciation. The total doesn't include $45 million that CareFusion will incur with the spinoff.

Overall, the $306 million estimate tracks closely with the $309 million Cardinal Health had expected.

Cardinal also expects a $150 million tax charge related to the repatriation of cash held overseas.

In after-hours trading, Cardinal shares were unchanged at $31.06. They ended the regular session up 2.6%.

-By Jay Miller, Dow Jones Newswires; 212-416-2355; jay.miller@dowjones.com