11-K 1 a21q4_11kx123120xform11-kx.htm 11-K Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
þANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
or
oTRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number 1-11373
A.Full title of the plan and the address of the plan, if different from that of the issuer named below:
Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
B.Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:
Cardinal Health, Inc.
7000 Cardinal Place
Dublin, Ohio 43017



Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Financial Statements and Supplemental Information
Years Ended December 31, 2020 and 2019
Table of Contents
Financial Statements:
Supplemental Schedule*:
Exhibit:
Consent of Independent Registered Public Accounting FirmExhibit 23.1
*All other financial schedules required by Section 2520.103-10 of the U.S. Department of Labor’s Annual Reporting and Disclosure Requirements under the Employee Retirement Income Security Act of 1974, as amended, have been omitted because they are not applicable.


Report of Independent Registered Public Accounting Firm
To the Plan Participants and the Plan Administrator of Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico (the Plan) as of December 31, 2020 and 2019, and the related statements of changes in net assets available for benefits for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2020 and 2019, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Supplemental Schedules
The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2020, has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The information in the supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ Ernst & Young LLP
We have served as the Plan's auditor since 2002.
Grandview Heights, Ohio
June 21, 2021

1
Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Statements of Net Assets Available for Benefits
December 31, 2020 and 2019
 20202019
Assets
Plan’s interest in Stable Value Master Trust$4,348,111 $3,831,020 
Investments at fair value32,112,115 28,001,919 
Accrued income21,709 22,962 
Cash695 3,191 
Receivables:
  Notes receivable from participants1,442,820 1,757,180 
  Company contributions13,165 42,715 
  Pending trades27,339 — 
      Total receivables1,483,324 1,799,895 
Total assets37,965,954 33,658,987 
Liabilities
Accrued fees6,582 6,225 
Pending trades payable130,743 75,625 
Total liabilities137,325 81,850 
Net assets available for benefits$37,828,629 $33,577,137 
The accompanying notes are an integral part of these financial statements.
2
Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 2020 and 2019
20202019
Additions to net assets attributed to:
Investment income:
Interest and dividends$403,634 $426,586 
Net appreciation in the fair value of investments5,526,813 5,030,386 
Plan's interest in Stable Value Master Trust's net investment income106,759 95,230 
Total investment income6,037,206 5,552,202 
Interest income on notes receivable from participants95,469 90,708 
Contributions:
Company1,180,172 1,580,834 
Participant1,880,289 1,770,194 
Rollovers90,509 21,198 
Total contributions3,150,970 3,372,226 
Total additions, net9,283,645 9,015,136 
Deductions from net assets attributed to:
Benefits paid to participants4,990,220 1,420,319 
Administrative expenses41,933 37,487 
Total deductions5,032,153 1,457,806 
Net increase4,251,492 7,557,330 
Net assets available for benefits:
Beginning of year33,577,137 26,019,807 
End of year$37,828,629 $33,577,137 
The accompanying notes are an integral part of these financial statements.
3

Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Notes to Financial Statements
December 31, 2020 and 2019
1. Description of Plan
General
The Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico (the “Plan”) is a defined contribution plan, covering substantially all employees of certain Cardinal Health, Inc. (the “Company”) subsidiaries residing in Puerto Rico. Employees who are covered by a collective bargaining agreement are not eligible to participate, unless the agreement provides for participation. Eligible employees participate upon their date of hire. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
A trust with a bank in Puerto Rico was established for the Plan. In addition, certain assets of the Plan are held within the Cardinal Health Stable Value Fund (the “Stable Value Master Trust”), which was established for the Plan and certain other plans of the Company. See Note 3 for more information regarding the Stable Value Master Trust.
Effective January 1, 2020, the Plan was amended and restated in compliance with the Internal Revenue Code for a New Puerto Rico (2011) (the “Code”), as amended.
The description of the Plan provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
Administration
The Company’s Financial Benefit Plans Committee (the “Committee”) is the Plan administrator and is responsible for the general operation and administration of the Plan.
Banco Popular de Puerto Rico is the trustee of the Plan. Wells Fargo Institutional Retirement and Trust (“Wells Fargo”), a business unit of Wells Fargo Bank, N.A., serves as the Plan record keeper and asset custodian. Effective July 2019 Principal Financial Group completed the acquisition of Wells Fargo Institutional Retirement and Trust. Transition or assignment of services were not finalized by December 31, 2020.
Contributions
Contributions that may be made to the Plan include participant elective contributions, rollover contributions, Company matching, discretionary employer, and discretionary special contributions.
Participants may elect to contribute a percentage of their eligible compensation (subject to certain limitations), as defined by the Plan. Participants who have or will attain at least age 50 by the end of the Plan year may elect to contribute up to an additional $1,500 as a catch-up contribution. Participants may also roll over amounts representing distributions from other qualified plans.
During 2019 the Company match was 200% of each participant’s compensation deferral contributions that did not exceed 1% of the participant’s compensation, 100% of each participant’s compensation deferral contributions that exceeded 1% of the participant’s compensation but did not exceed 2% of the participant’s compensation, and 50% of each participant’s compensation deferral contributions that exceeded 2% of the participant’s compensation but did not exceed 5% of the participant’s compensation. As amended and restated effective January 1, 2020, the Company match was 200% of each participant’s compensation deferral contributions that did not exceed 1% of the participant’s compensation, 100% of each participant’s compensation deferral contributions that exceeded 1% of the participant’s compensation but that did not exceed 3% of the participant’s compensation, and 50% of each participant’s compensation deferral contributions that exceeded 3% of the participant’s compensation but that did not exceed 5% of the participant’s compensation. The Plan was further amended effective July 1, 2020 to change the Company match to 200% of each participant’s compensation deferral contributions that do not exceed 1% of the participant’s compensation, and 50% of each participant’s compensation deferral contributions that exceed 1% of the participant’s compensation but that do not exceed 5% of the participant’s compensation. In addition, the Company may elect to make discretionary employer contributions and/or discretionary special contributions.
Discretionary employer contributions are allocated to participants based generally on their proportionate share of total eligible compensation and eligible compensation above the Social Security taxable wage base amount for the year of allocation.
The Plan’s discretionary employer contribution is determined at the discretion of the Human Resources and Compensation Committee of the Company’s Board of Directors or such other committee, entity, or person authorized by the Human Resources and Compensation Committee for such purposes. To be eligible for the discretionary employer contribution, participants generally must be employed on the last day of the Company’s fiscal year, June 30. The discretionary employer contribution is calculated on eligible compensation earned during the Company’s fiscal year and contributed in a lump sum to participant accounts. The discretionary employer contribution is recognized by the Plan in the plan year the contribution is made to the Plan. For the Company’s fiscal years ended June 30, 2020 and 2019 and the Plan’s fiscal year ended December 30, 2020 and 2019, the discretionary employer contribution was $0 and $440,533, respectively.
4

1. Description of Plan (continued)
Contributions (continued)
The Plan’s discretionary special contributions, if any, are allocated to the participants in the eligible group ratably based on their proportionate share of the total eligible compensation in that group. No discretionary special contributions were made to the Plan for the years ended December 31, 2020 and 2019.
Participants direct the investment of their contributions into various investment options offered by the Plan. The Company’s matching, discretionary employer and discretionary special contributions, if any, are also invested as directed by participants.
Participant Accounts
Each participant’s account is credited with the participant’s elective contributions, any rollover contributions made by the participant and allocations of the Company’s contributions and Plan earnings. A participant is entitled to the benefit provided from the participant’s vested account balance.
Vesting
Participants are 100% vested immediately in their elective deferral, rollover, and Company matching contributions, plus actual earnings thereon. A participant is 100% vested in the Company’s discretionary employer and discretionary special contributions after three years of vesting service, or if the participant dies, becomes totally disabled, or reaches retirement age, as defined in the Plan document, while employed by the Company. The Plan provides for the partial vesting of the Company contributions to participants with more than one year, but less than three years, of vesting service, who were terminated as part of a designated reduction in workforce, as defined in the Plan document.
Forfeitures
Non-vested account balances are generally forfeited either upon full distribution of vested balances or completion of five consecutive one-year breaks in service, as defined in the Plan document. Forfeitures are either used to reduce Company contributions to the Plan or to pay reasonable expenses of the Plan as determined by the Committee.
Forfeitures used to reduce Company contributions and to pay reasonable expenses of the Plan were $9,686 and $6,017 during 2020 and 2019, respectively. At December 31, 2020 and 2019, forfeited non-vested accounts were $5,007 and $1,948, respectively.
Administrative Expenses
Administrative expenses are paid by the Company or from the assets of the Plan. General expenses paid from the Plan’s assets are allocated among participant accounts to the extent not paid from forfeitures, except for fees for loans, withdrawals, and Qualified Domestic Relations Orders, which are paid from the account of the participant incurring the expense.
For the years ended December 31, 2020 and 2019, revenue sharing and sub-transfer agent fee income received by the Plan was credited to the accounts of participants who held revenue sharing and sub-transfer income investments. Participants earned $1,792 and $2,056 in revenue sharing and sub-transfer agent fee income for the years ended December 31, 2020 and 2019, respectively.
Participant Loans
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000, less the highest outstanding loan balance during the prior 12 months or 50% of their vested account balance. Loan terms primarily range from 1 to 5 years or up to 15 years for the purchase of a primary residence. Participant loans are secured by 50% of the vested balance in the participant’s account as of the date of the loan and bear interest at a reasonable rate, as established by the Committee, currently Prime plus 1%, which is set for the life of the loan. Interest rates for new loans are subject to change on a monthly basis. Loan repayments, including interest and applicable loan fees, are generally repaid through payroll deductions.
Payment of Benefits
Upon termination of employment, death, retirement, or total disability, distributions are generally made in the form of a lump-sum payment or installments. In addition, the Plan includes a provision for participants to make withdrawals from their rollover contributions account at any time, elective contributions account under certain hardship circumstances, or their account after attaining age 59 1/2, as defined in the Plan document. Required qualified joint and survivor annuity payment options are preserved for the portion of the participant accounts transferred to the Plan from a money purchase pension plan, if any.
The Puerto Rico Department of Treasury (“PR Treasury”) issued Circular Letter 20-23 (“CC RI 20-23”) extending certain disaster relief under the Code to Plan participants who have been affected by the novel coronavirus pandemic. The Plan was amended to provide this relief in accordance with applicable PR Treasury guidance.
5

2. Summary of Significant Accounting Policies
Basis of Presentation
The financial statements of the Plan are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes and supplemental schedules. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements
In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (”ASU”) 2018-13, Fair Value Measurement - Disclosure Framework (Topic 820). ASU 2018-13 removed the requirement to disclose the amount of and reasons for transfers between level 1 and level 2 of the fair value hierarchy as well as the policy for timing of transfers between levels. The ASU also modified the disclosure for investments in certain entities that calculate Net Asset Value to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the Plan or announced the timing publicly. It also clarified the measurement uncertainty disclosure to communicate information about the uncertainty in measurement as of the reporting date. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This standard was adopted by the Plan and had no impact on the Plan’s financial statements, other than footnote disclosures.
Investment Valuation and Income Recognition
Certain Plan investments are in the Stable Value Master Trust, while others are held in custody by Wells Fargo under an agreement with the trustee for the Puerto Rico trust. Investments, except for fully benefit-responsive investment contracts (see Note 3), are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 4 for discussion of fair value measurements.
Purchases and sales of securities are recorded on a trade-date basis using fair market value, except for those investments in investment contracts that are transacted at contract value. Dividends are recorded on the ex-dividend date. Interest is recorded on the accrual basis. Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold, as well as held, during the year.
Notes Receivable from Participants
Notes receivable from participants represent participant loans that are recorded at their unpaid principal balance, plus any accrued but unpaid interest. Interest income on notes receivable from participants is recorded when it is earned. Related fees are recorded as administrative expenses and are expensed when they are incurred. If a participant ceases to make loan repayments and the Plan sponsor deems the participant loan to be a distribution, the participant loan balance is retained as a defaulted loan amount until a distributable event occurs, at which time the loan amount is offset from the value of the account.
Payment of Benefits
Benefit payments are recorded when paid.


6

3. Assets Held in the Stable Value Master Trust
Certain of the Plan’s investments are held in the Stable Value Master Trust, which was established for the investment of assets of the Plan and other Company-sponsored retirement plans. Each participating plan’s interest in the investment funds (i.e., separate accounts) of the Stable Value Master Trust is based on account balances of the participants and their elected investment funds. The Stable Value Master Trust’s assets are allocated among the participating plans by assigning to each plan those transactions (primarily contributions, benefit payments, and plan-specific expenses) that can be specifically identified and by allocating among all plans, in proportion to the fair value of the assets assigned to each plan, income and expenses resulting from the collective investment of the assets of the Stable Value Master Trust. The Plan’s interest in the Stable Value Master Trust’s net investment income (loss) presented in the Statements of Changes in Net Assets Available for Benefits consists of the unrealized and realized gains (losses) and the earnings on those investments.
The Stable Value Master Trust holds synthetic investment contracts which meet the fully benefit-responsive investment contract criteria and therefore are reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts, because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions made under each contract, plus earnings, less participant withdrawals, and administrative expenses.
The Plan owns the underlying investments of the synthetic investment contracts. A synthetic investment contract includes a wrapper contract, which is an agreement for the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan. Synthetic investment contracts are designed to accrue interest based on crediting rates established by the contract issuers.
The synthetic investment contracts held by the Plan include wrapper contracts which provide a guarantee that the credit rate will not fall below 0%. Cash flow volatility (e.g., timing of benefit payments), as well as asset underperformance, can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in the contracts that adjust renewal crediting rates to recognize the difference between fair value and the book value of the underlying assets. Crediting rates are reviewed quarterly for resetting.
The Plan’s ability to receive amounts due in accordance with fully benefit-responsive investment contracts is dependent on the third-party issuers’ ability to meet their financial obligations. The issuers’ ability to meet their contractual obligations may be affected by future economic and regulatory developments.
Certain events might limit the ability of the Plan to transact at contract value with the contract issuers. These events may be different under each contract. Examples of such events include the following:
•Plan disqualification under the Code;
•Establishment of a defined contribution plan by the Company that competes for participant contributions;
•Material amendments to the Plan or administration as to investment options, transfer procedures, or withdrawals;
•Company’s inducement to participants to withdraw or transfer funds from the contract;
•Termination or partial termination of the Plan;
•Group termination, layoff, early retirement incentive program, or other downsizing by the Company;
•Merger or consolidation of the Plan with another plan or spin-off of any portion of the Plan’s assets to another Plan; and
•Any changes in law, regulation, ruling, or administrative or judicial position that, in the issuer’s reasonable determination, could result in substantial disbursements from the contract.
No events are probable of occurring that might limit the ability of the Plan to transact at contract value with the contract issuers and that also would limit the ability of the Plan to transact at contract value with the participants.
In addition, certain events allow the issuers to terminate the contacts with the Plan and settle at an amount different from contract value. Those events may be different under each contract. Examples of such events include the following:
•The investment manager or trustee breaches any of its material obligations under the agreement;
•Any representation of the investment manager is or becomes untrue in any material respect;
•The investment manager with respect to the contract is terminated, unless a qualified professional manager is duly appointed and is agreed to by the issuer;
•The issuer determines that the execution, delivery, or performance of the contract constitutes or will constitute a prohibited transaction;
•Failure to pay amounts due to the issuer; and
•Termination of the Plan, or disqualification of the trust.
Each investment contract is subject to early termination penalties that may be significant. There are no reserves against contract value for credit risk of the contract issuers or other matters.The Stable Value Master Trust also holds a stable value common collective trust that is composed primarily of fully benefit-responsive investment contracts and is valued at the net asset value of units of the collective trust. The common collective trust is designed to deliver safety and stability by preserving principal and accumulating earnings. The net asset value is used as a practical expedient to estimate fair value. This practical expedient would not be used if it is determined to be probable that the fund will sell the investment for an amount different from the reported net asset value.
7

3. Assets Held in the Stable Value Master Trust (Continued)
Participant transactions (purchases and sales) may occur daily. If the Plan initiates a full redemption of the collective trust, the issuer reserves the right to require a one-year notice to ensure that securities liquidations will be carried out in an orderly business manner. The Plan has no contractual obligations to further invest in the fund.
The assets held in the Stable Value Master Trust were as follows for the years ended December 31:
2020
 Master Trust BalancePlans Interest in Master Trust Balance ($)Plans Interest in Master Trust Balance (%)
Fully benefit-responsive synthetic investment contracts - at contract value$411,448,505 $4,206,488 1 %
Common collective trusts - at fair value13,063,269 133,554 1 %
Total Master Trust investments424,511,774 4,340,042 1 %
Cash and pending activity789,275 8,069 1 %
Total Master Trust net assets425,301,049 4,348,111 1 %
2019
 Master Trust BalancePlans Interest in Master Trust Balance ($)Plans Interest in Master Trust Balance (%)
Fully benefit-responsive synthetic investment contracts - at contract value$347,597,624 $3,729,893 1 %
Common collective trusts - at fair value9,538,939 102,357 1 %
Total Master Trust investments357,136,563 3,832,250 1 %
Cash and pending activity(114,640)(1,230)1 %
Total Master Trust net assets357,021,923 3,831,020 1 %
The investment income of the Stable Value Master Trust was as follows for the years ended December 31:
 2020
 Master Trust
Balance		Plan's Interest in Master Trust Balance ($)Plan's Interest in Master Trust Balance (%)
Net investment income$9,374,447 $106,759 1 %
Total investment income9,374,447 106,759 1 %
 2019
 Master Trust
Balance		Plan's Interest in Master Trust Balance ($)Plan's Interest in Master Trust Balance (%)
Net investment income$9,193,967 $95,230 1 %
Total investment income9,193,967 95,230 1 %








8

4. Fair Value Measurements
ASC 820, Fair Value Measurement, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described as follows:
Level 1:    Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.
Level 2:    Inputs to the valuation methodology include:
•quoted prices for similar assets or liabilities in active markets;
•quoted prices for identical or similar assets or liabilities in inactive markets;
•inputs other than quoted prices that are observable for the asset or liability; and
•inputs that are derived principally from or corroborated by observable market data by correlation or other means.
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3:    Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation techniques and inputs used for each general type of assets measured at fair value. There have been no changes in the methodologies used at December 31, 2020 and 2019.
Mutual funds and common shares fair values are determined utilizing quoted market prices reported on the active market on which they are traded.
The common collective trusts (“CCTs”) are valued utilizing the respective net asset values as reported by such trusts, which are reported at fair value. The fair value has been determined by the trustee sponsoring the CCT by dividing the trust’s net assets at fair value by its units outstanding at the valuation dates. There are no restrictions as to the redemption of these investments, nor does the Plan have any contractual obligations to further invest in any of these CCTs.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The following tables set forth by level, within the fair value hierarchy, the fair value of the Plan’s assets held outside of the Stable Value Master Trust as of December 31:
 December 31, 2020
 Level 1Level 2Level 3Total
Mutual funds$18,980,798 $— $— $18,980,798 
Cardinal Health, Inc., common shares2,445,121 — — 2,445,121 
Total assets in the fair value hierarchy$21,425,919 $— $— $21,425,919 
  Common collective trusts measured at net asset value10,686,196 
Total assets at fair value$32,112,115 
 December 31, 2019
 Level 1Level 2Level 3Total
Mutual funds$17,667,956 $— $— $17,667,956 
Cardinal Health, Inc., common shares2,349,390 — — 2,349,390 
Total assets in the fair value hierarchy$20,017,346 $— $— $20,017,346 
  Common collective trusts measured at net asset value7,984,573 
Total assets at fair value$28,001,919 
9

5. Income Tax Status
The Plan has received a determination letter from the Commonwealth of Puerto Rico’s Department of Treasury (“PR Treasury”) dated October 15, 2020, stating that the Plan is qualified under Section 1081.01 of the Code and, therefore, the related trust is exempt from taxation. In accordance with applicable PR Treasury requirements, certain amendments to the Plan that do not impact the tax status of the Plan were not considered by PR Treasury in issuing the determination letter. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan is qualified and the related trust is tax-exempt.
GAAP requires plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by PR Treasury. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2020 and 2019, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
6. Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits.
7. Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.
8. Related Party and Parties-in-Interest Transactions
Certain of the Plan’s investments at December 31, 2020 and 2019 were units of CCTs managed by Wells Fargo. The Stable Value Master Trust is managed by Galliard Capital, a wholly owned subsidiary of Wells Fargo. Wells Fargo serves as the record keeper of the Plan and, therefore, transactions involving these investments are considered party-in-interest transactions, but comply with an applicable exemption to the prohibited transaction rules of ERISA.
The Plan held $2,445,121 and $2,349,390 of Cardinal Health, Inc. common shares at December 31, 2020 and 2019, respectively.
10

9. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of benefit payments per the financial statements to Form 5500:
2020
Benefits paid to participants per the financial statements$4,990,220 
Corrective distributions(11,642)
Net deemed distributions3,755 
  Benefits paid to participants per Form 5500$4,982,333 


11

10. Subsequent Events
In connection with Principal Financial Group’s acquisition of Wells Fargo Institutional Retirement and Trust, the Plan entered into consent, resignation and appointment agreements for Principal Financial Group to assume the recordkeeping and trustee duties of Wells Fargo Institutional Retirement and Trust. The effective date of the transition was May 25, 2021.

12
Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Schedule H, Line 4i on Form 5500: Schedule of Assets (Held at End of Year)*
December 31, 2020
EIN: 31-0958666 Plan Number: 062
(a)(b)(c)(e)
 Identity of issuer, borrower, lessor, or similar partyDescription of investment, including maturity
date, rate of interest, maturity or par value		Current
value
Mutual funds:
Vanguard Extended Market Index Fund31,247 shares$3,897,697 
Vanguard Institutional Index Fund7,383 shares2,447,218 
Dodge & Cox Stock Fund10,550 shares2,031,536 
J.P. Morgan SmartRetirement 2030 Fund84,644 shares1,753,829 
J.P. Morgan SmartRetirement 2040 Fund64,965 shares1,526,038 
J.P. Morgan SmartRetirement 2035 Fund
68,480 shares1,496,293 
J.P. Morgan SmartRetirement 2025 Fund70,561 shares1,359,003 
Vanguard Total Stock Market 7,338 shares1,303,843 
J.P. Morgan SmartRetirement 2045 Fund37,801 shares868,289 
J.P. Morgan SmartRetirement 2050 Fund27,321 shares631,661 
Vanguard Total International Stock Index 4,562 shares592,179 
Vanguard Total Bond Market Index26,302 shares305,630 
J.P. Morgan SmartRetirement 2055 Fund10,766 shares286,580 
J.P. Morgan SmartRetirement Income Fund15,415 shares268,523 
J.P. Morgan SmartRetirement 2020 Fund8,533 shares158,116 
J.P. Morgan SmartRetirement 2060 Fund2,575 shares54,363 
Common collective trusts:
Fidelity Group Trust For Employee Benefits Plans Growth Company Commingled Pool 163,334 units6,997,240 
PIMCO Collective Investment Trust Total Return126,315 units1,981,886 
Fidelity Group Trust for Employee Benefits Plans Diversified International Commingled Pool91,072 units1,565,530 
**Wells Fargo/Blackrock Short Term Investment Fund 141,540 units141,540 
Common shares:
**Cardinal Health, Inc.45,652 shares2,445,121 
Loans:
**Participant loansVarious maturity dates, with interest rates ranging from 4.25% to 6.50%1,442,820 
Total$33,554,935 
*Other columns required by the U.S. Department of Labor’s Annual Reporting and Disclosure Requirements under ERISA have been omitted because they are not applicable.
**Denotes party-in-interest.

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Signature
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Committee have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
Cardinal Health 401(k) Savings Plan for Employees of Puerto Rico
Date:June 21, 2021/s/ KENDELL SHERRER
Kendell Sherrer
Financial Benefit Plans Committee Member

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