Document and Company Informatio
Document and Company Information (USD $) | |||
3 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| Mar. 31, 2009
| |
Document And Company Information [Abstract] | |||
Entity Registrant Name | AMERISOURCEBERGEN CORP | ||
Entity Central Index Key | 0001140859 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $4,638,411,086 | ||
Entity Common Stock, Shares Outstanding | 282,383,043 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Dec. 31, 2009
| Sep. 30, 2009
|
Current assets: | ||
Cash and cash equivalents | $979,567 | $1,009,368 |
Accounts receivable, less allowances for returns and doubtful accounts: $367,415 at December 31, 2009 and $370,303 at September 30, 2009 | 3,540,919 | 3,916,509 |
Merchandise inventories | 5,361,851 | 4,972,820 |
Prepaid expenses and other | 33,794 | 55,056 |
Total current assets | 9,916,131 | 9,953,753 |
Property and equipment, at cost: | ||
Land | 36,109 | 35,665 |
Buildings and improvements | 294,245 | 292,903 |
Machinery, equipment and other | 727,664 | 694,555 |
Total property and equipment | 1,058,018 | 1,023,123 |
Less accumulated depreciation | (416,109) | (403,885) |
Property and equipment, net | 641,909 | 619,238 |
Goodwill and other intangible assets | 2,857,242 | 2,859,064 |
Other assets | 140,989 | 140,685 |
TOTAL ASSETS | 13,556,271 | 13,572,740 |
Current liabilities: | ||
Accounts payable | 8,225,557 | 8,517,162 |
Accrued expenses and other | 355,830 | 315,657 |
Current portion of long-term debt | 593 | 1,068 |
Deferred income taxes | 661,468 | 645,723 |
Total current liabilities | 9,243,448 | 9,479,610 |
Long-term debt, net of current portion | 1,375,256 | 1,176,933 |
Other liabilities | 196,706 | 199,728 |
Stockholders' equity: | ||
Common stock, $0.01 par value - authorized: 600,000,000 shares; issued and outstanding: 484,645,368 shares and 283,825,325 shares at December 31, 2009, respectively, and 482,941,212 shares and 287,922,263 shares at September 30, 2009, respectively | 4,846 | 4,829 |
Additional paid-in capital | 3,775,410 | 3,737,835 |
Retained earnings | 3,047,918 | 2,919,760 |
Accumulated other comprehensive loss | (42,818) | (46,096) |
Stockholders' equity subtotal before treasury stock | 6,785,356 | 6,616,328 |
Treasury stock, at cost: 200,820,043 shares at December 31, 2009 and 195,018,949 shares at September 30, 2009 | (4,044,495) | (3,899,859) |
Total stockholders' equity | 2,740,861 | 2,716,469 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $13,556,271 | $13,572,740 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Thousands, except Share data | Dec. 31, 2009
| Sep. 30, 2009
|
Current assets: | ||
Allowances for returns and doubtful accounts | $367,415 | $370,303 |
Stockholders' equity: | ||
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 484,645,368 | 482,941,212 |
Common stock, shares outstanding | 283,825,325 | 287,922,263 |
Treasury stock, shares held | 200,820,043 | 195,018,949 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) (USD $) | ||
In Thousands, except Per Share data | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 |
Revenue | $19,335,859 | $17,338,377 |
Cost of goods sold | 18,772,489 | 16,848,529 |
Gross profit | 563,370 | 489,848 |
Operating expenses: | ||
Distribution, selling, and administrative | 280,239 | 272,026 |
Depreciation | 16,658 | 15,053 |
Amortization | 4,139 | 3,856 |
Facility consolidations, employee severance and other | (48) | 1,029 |
Operating income | 262,382 | 197,884 |
Other loss | 277 | 429 |
Interest expense, net | 17,267 | 14,183 |
Income from continuing operations before income taxes | 244,838 | 183,272 |
Income taxes | 93,531 | 70,743 |
Income from continuing operations | 151,307 | 112,529 |
Loss from discontinued operations, net of income taxes | 0 | (1,473) |
Net income | $151,307 | $111,056 |
Basic earnings per share: | ||
Continuing operations | 0.53 | 0.36 |
Discontinued operations | $0 | $0 |
Total | 0.53 | 0.36 |
Diluted earnings per share: | ||
Continuing operations | 0.52 | 0.36 |
Discontinued operations | $0 | $0 |
Total | 0.52 | 0.36 |
Weighted average common shares outstanding: | ||
Basic | 286,955 | 308,594 |
Diluted | 291,287 | 310,178 |
Cash dividends declared per share of common stock | 0.08 | 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
In Thousands | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 |
OPERATING ACTIVITIES | ||
Net income | $151,307 | $111,056 |
Loss from discontinued operations | 0 | 1,473 |
Income from continuing operations | 151,307 | 112,529 |
Adjustments to reconcile income from continuing operations to net cash used in operating activities: | ||
Depreciation, including amounts charged to cost of goods sold | 19,820 | 17,813 |
Amortization, including amounts charged to interest expense | 5,384 | 4,843 |
Provision for doubtful accounts | 9,387 | 8,175 |
Provision for deferred income taxes | 17,511 | 9,681 |
Share-based compensation | 7,176 | 7,374 |
Other | 2,630 | (3,278) |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Accounts receivable | 371,936 | (80,090) |
Merchandise inventories | (391,153) | (768,924) |
Prepaid expenses and other assets | 22,499 | 22,611 |
Accounts payable, accrued expenses, and income taxes | (254,538) | 366,625 |
Other liabilities | (3,648) | (1,474) |
Net cash used in operating activities - continuing operations | (41,689) | (304,115) |
Net cash used in operating activities - discontinued operations | 0 | (251) |
NET CASH USED IN OPERATING ACTIVITIES | (41,689) | (304,366) |
INVESTING ACTIVITIES | ||
Capital expenditures | (42,574) | (42,344) |
Proceeds from the sale of PMSI | 0 | 14,936 |
Other | 127 | 0 |
Net cash used in investing activities - continuing operations | (42,447) | (27,408) |
Net cash used in investing activities - discontinued operations | 0 | (1,138) |
NET CASH USED IN INVESTING ACTIVITIES | (42,447) | (28,546) |
FINANCING ACTIVITIES | ||
Long-term debt borrowings | 396,696 | 0 |
Borrowings under revolving and securitization credit facilities | 290,074 | 339,208 |
Repayments under revolving and securitization credit facilities | (491,704) | (311,689) |
Purchases of common stock | (144,626) | (88,352) |
Exercise of stock options, including excess tax benefits of $5,050 and $55 in fiscal 2010 and 2009, respectively | 30,416 | 1,331 |
Cash dividends on common stock | (23,149) | (15,571) |
Debt issuance costs and other | (3,372) | 788 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 54,335 | (74,285) |
DECREASE IN CASH AND CASH EQUIVALENTS | (29,801) | (407,197) |
Cash and cash equivalents at beginning of period | 1,009,368 | 878,114 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $979,567 | $470,917 |
1_Consolidated Statements of Ca
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $) | ||
In Thousands | 3 Months Ended
Dec. 31, 2009 | 3 Months Ended
Dec. 31, 2008 |
FINANCING ACTIVITIES | ||
Excess tax benefit from the exercise of stock options | $5,050 | $55 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements present the consolidated financial position, results of operations and cash flows of AmerisourceBergen Corporation and its wholly-owned subsidiaries (the Company) as of the dates and for the periods indicated. The Company evaluated subsequent events through the date and time the financial statements were issued on February5, 2010. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q and Rule10-01 of RegulationS-X. In the opinion of management, all adjustments (consisting only of normal recurring accruals, except as otherwise disclosed herein) considered necessary to present fairly the financial position as of December31, 2009 and the results of operations and cash flows for the interim periods ended December31, 2009 and 2008 have been included. Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP, but which are not required for interim reporting purposes, have been omitted. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended September30, 2009. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual amounts could differ from these estimated amounts. The Company has three operating segments, which include the operations of AmerisourceBergen Drug Corporation (ABDC), the AmerisourceBergen Specialty Group (ABSG), and the AmerisourceBergen Packaging Group (ABPG). The Company has aggregated the operating results of ABDC, ABSG, and ABPG into one reportable segment, Pharmaceutical Distribution, which represents the consolidated operating results of the Company. The businesses of the Pharmaceutical Distribution operating segments are similar in that they service both healthcare providers and pharmaceutical manufacturers in the pharmaceutical supply channel. Prior to October1, 2009, management considered gains on antitrust litigation settlements and costs related to facility consolidations, employee severance and other, to be reconciling items between the operating results of Pharmaceutical Distribution and the Company. On June15, 2009, the Company effected a two-for-one stock split of its outstanding shares of common stock in the form of a 100% stock dividend to stockholders of record at the close of business on May29, 2009. All applicable share and per-share amounts in the consolidated financial statements and related disclosures have been retroactively adjusted to reflect this stock split. Certain reclassifications have been made to prior year amounts in order to conform to the current yea |
Discontinued Operations
Discontinued Operations | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 2. Discontinued Operations In October2008, the Company completed the divestiture of its workers compensation business, PMSI. The Company classified PMSIs operating results and cash flows as discontinued in the consolidated financial statements for the three months ended December31, 2008. PMSIs revenue and loss before income taxes were $29.0million and $1.1million, respectively, for the three months ended December31, 2008. The Company sold PMSI for approximately $31million, net of a final working capital adjustment, including a $19million subordinated note due from PMSI on the fifth anniversary of the closing date (the maturity date), of which $4million may be payable in October2010 if PMSI achieves certain revenue targets with respect to its largest customer during the twelve months ending September30, 2010. Interest accrues at an annual rate of LIBOR plus 4% (not to exceed 8%). |
Income Taxes
Income Taxes | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note 3. Income Taxes The Company files income tax returns in U.S. federal and state jurisdictions as well as various foreign jurisdictions. The Companys U.S. federal income tax returns for fiscal 2006 and subsequent years remain subject to examination by the U.S. Internal Revenue Service (IRS). The IRS is currently examining the Companys tax returns for fiscal 2006 and 2007. In Canada, the Company is currently under examination for fiscal years 2007 and 2008. As of December31, 2009, the Company had unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the Companys financial statements, of $54.7million ($38.6million net of federal benefit, which, if recognized, would reduce income tax expense). Included in this amount is $17.8million of interest and penalties, which the Company records in income tax expense. During the three months ended December 31, 2009, unrecognized tax benefits increased by $0.3million. During the next 12months, it is reasonably possible that audit resolutions and the expiration of statutes of limitations could result in a reduction of unrecognized tax benefits by approximately $8.0million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets Following is a summary of the changes in the carrying value of goodwill for the three months ended December31, 2009 (in thousands): Goodwill at September30, 2009 $ 2,542,352 Foreign currency translation 1,717 Goodwill at December31, 2009 $ 2,544,069 Following is a summary of other intangible assets (in thousands): December 31, 2009 September 30, 2009 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Indefinite-lived intangibles-trade names $ 241,638 $ $ 241,638 $ 241,554 $ $ 241,554 Finite-lived intangibles: Customer relationships 121,731 (59,963 ) 61,768 121,419 (56,679 ) 64,740 Other 33,369 (23,602 ) 9,767 33,100 (22,682 ) 10,418 Total other intangible assets $ 396,738 $ (83,565 ) $ 313,173 $ 396,073 $ (79,361 ) $ 316,712 Amortization expense for other intangible assets was $4.1million and $3.9million in the three months ended December31, 2009 and 2008, respectively. Amortization expense for other intangible assets is estimated to be $16.0million in fiscal 2010, $15.1million in fiscal 2011, $12.8million in fiscal 2012, $11.0million in fiscal 2013, $7.8million in fiscal 2014, and $12.9 million thereafter. |
Debt
Debt | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Debt [Abstract] | |
Debt | Note 5. Debt Debt consisted of the following (in thousands): December 31, September 30, 2009 2009 Blanco revolving credit facility at 2.23% and 2.25%, respectively, due 2010 $ 55,000 $ 55,000 Receivables securitization facility due 2010 Multi-currency revolving credit facility at 2.25% and 0.92%, respectively, due 2011 25,618 224,026 $400,000, 5 5/8% senior notes due 2012 399,132 399,058 $500,000, 5 7/8% senior notes due 2015 498,398 498,339 $400,000, 4 7/8% senior notes due 2019 396,739 Other 962 1,578 Total debt 1,375,849 1,178,001 Less current portion 593 1,068 Total, net of current portion $ 1,375,256 $ 1,176,933 The Company has a $695million multi-currency senior unsecured revolving credit facility, which expires in November2011, (the Multi-Currency Revolving Credit Facility) with a syndicate of lenders. Interest on borrowings under the Multi-Currency Revolving Credit Facility accrues at specified rates based on the Companys debt rating and ranges from 19 basis points to 60 basis points over LIBOR/EURIBOR/Bankers Acceptance Stamping Fee, as applicable (40 basis points over LIBOR/EURIBOR/Bankers Acceptance Stamping Fee at December31, 2009). Additionally, interest on borrowings denominated in Canadian dollars may accrue at the greater of the Canadian prime rate or the CDOR rate. The Company pays quarterly facility fees to maintain the availability under the Multi-Currency Revolving Credit Facility at specified rates based on the Companys debt rating, ranging from 6 basis points to 15 basis points of the total commitment (10 basis points at December 31, 2009). The Company may choose to repay or reduce its commitments under the Multi-Currency Revolving Credit Facility at any time. The Multi-Currency Revolving Credit Facility contains covenants, including compliance with a financial leverage ratio test, as well as others that impose limitations on, among other things, indebtedness of excluded subsidiaries and asset sales. The Company has a $700million receivables securitization facility (Receivables Securitization Facility), which expires in April2010. The Company also has available to it an accordion feature whereby the commitment on the Receivables Securitization Facility may be increased by up to $250million, subject to lender approval, for seasonal needs during the December and March quarters. Interest rates are based on prevailing market rates for short-term commercial paper plus a program fee. The Company pays a commitment fee to maintain the availability under the Receivables Securitization Facility. The program fee and the commitment fee were 150 basis points and 75 basis points, respectively, at December31, 2009. At December31, 2009, there were no borrowings outstanding under the Receivables Securitization Facility. The agreement governing the Receivables Securitization Facility contains restrictions and covenants which include limitations on the incurrence of additional indebtedness, making of certain restricted pay |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | |
10/1/2009 - 12/31/2009
USD / shares | |
Stockholders' Equity and Earnings per Share [Abstract] | |
Stockholders' Equity and Earnings per Share | Note 6. Stockholders Equity and Earnings per Share The following table illustrates comprehensive income for the three months ended December31, 2009 and 2008 (in thousands): 2009 2008 Net income $ 151,307 $ 111,056 Foreign currency translation adjustments and other 3,278 (10,066 ) Comprehensive income $ 154,585 $ 100,990 In November2008, the Companys board of directors increased the quarterly dividend by 33% to $0.05 per common share. In May2009, the Company declared a two-for-one split of the Companys outstanding shares of common stock and increased the quarterly dividend by 20% to $0.06 per common share. In November2009, the Companys board of directors authorized another increase in the quarterly dividend by 33% to $0.08 per share. In November2008, the Companys board of directors authorized a program allowing the Company to purchase up to $500million of its outstanding shares of common stock, subject to market conditions. During the three months ended December31, 2009, the Company purchased 2.8million shares for $68.1million to complete its authorization under this program. During the three months ended December31, 2008, the Company purchased 4.7million shares under this program for $70.2 million and another 1.2million shares for $18.1million to complete its authorization under a prior share repurchase program. In November2009, the Companys board of directors authorized a new program allowing the Company to purchase up to $500million of its outstanding shares of common stock, subject to market conditions. During the three months ended December31, 2009, the Company purchased 3.0million shares for $76.4 million under this new program. In January 2010, the Company acquired 1.7million shares of its common stock totaling $42.9 million. Basic earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding during the periods presented plus the dilutive effect of stock options, restricted stock, and restricted stock units. Three months ended December 31, (in thousands) 2009 2008 Weighted average common shares outstanding-basic 286,955 308,594 Effect of dilutive securities: stock options, restricted stock, and restricted stock units 4,332 1,584 Weighted average common shares outstanding-diluted 291,287 310,178 The potentially dilutive stock options that were antidilutive for the three months ended December31, 2009 and 2008 were 3.3million and 13.0million, respectively. |
Facility Consolidations, Employ
Facility Consolidations, Employee Severance and Other | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Facility Consolidations, Employee Severance and Other [Abstract] | |
Facility Consolidations, Employee Severance and Other | Note 7. Facility Consolidations, Employee Severance and Other During fiscal 2008, the Company announced a more streamlined organizational structure and introduced an initiative (cE2) designed to drive increased customer efficiency and cost effectiveness. In connection with these efforts, the Company has reduced various operating costs and terminated certain positions. During the three months ended December31, 2008, the Company terminated 122 employees and incurred $1.0million of employee severance costs. Employees receive their severance benefits over a period of time, generally not in excess of 12months, or in the form of a lump-sum payment. The following table displays the activity in accrued expenses and other from September30, 2009 to December31, 2009 (in thousands): Employee Lease Cancellation Severance Costs and Other Total Balance as of September30, 2009 $ 7,876 $ 3,549 $ 11,425 Expense recorded during the period (48 ) (48 ) Payments made during the period (1,627 ) (238 ) (1,865 ) Balance as of December31, 2009 $ 6,201 $ 3,311 $ 9,512 The employee severance balance set forth in the above table as of December31, 2009 includes an accrual for the Bergen Brunswig Matter as described in Note 8. The lease cancellation costs and other balance set forth in the above table as of December31, 2009 primarily consists of an accrual for information technology transition costs payable to IBM Global Services. |
Legal Matters and Contingencies
Legal Matters and Contingencies | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Legal Matters and Contingencies [Abstract] | |
Legal Matters and Contingencies | Note 8. Legal Matters and Contingencies In the ordinary course of its business, the Company becomes involved in lawsuits, administrative proceedings, government subpoenas, and government investigations, including antitrust, commercial, environmental, product liability, intellectual property, regulatory, employment discrimination, and other matters. Significant damages or penalties may be sought from the Company in some matters, and some matters may require years for the Company to resolve. The Company establishes reserves based on its periodic assessment of estimates of probable losses. There can be no assurance that an adverse resolution of one or more matters during any subsequent reporting period will not have a material adverse effect on the Companys results of operations for that period or on the Companys financial condition. Bergen Brunswig Matter A former Bergen Brunswig chief executive officer who was terminated in 1999 filed an action that year in the Superior Court of the State of California, County of Orange (the Superior Court) claiming that Bergen Brunswig (predecessor in interest to AmerisourceBergen Corporation) had breached its obligations to him under his employment agreement. Shortly after the filing of the lawsuit, Bergen Brunswig made a California Civil Procedure Code 998 Offer of Judgment to the executive, which the executive accepted. The resulting judgment awarded the executive damages and the continuation of certain employment benefits. Since then, the Company and the executive have engaged in litigation as to what specific benefits were included in the scope of the Offer of Judgment and the value of those benefits. The Superior Court entered an Order in Implementation of Judgment on June7, 2001, which identified the specific benefits encompassed by the Offer of Judgment. Following submission by the executive of a claim for benefits pursuant to the Bergen Brunswig Supplemental Executive Retirement Plan (the Plan), the Company followed the administrative procedure set forth in the Plan. This procedure involved separate reviews by two independent parties, the first by the Review Official appointed by the Plan Administrator and second by the Plan Trustee, and resulted in a determination that the executive was entitled to a $1.9million supplemental retirement benefit and such amount was paid. The executive challenged this award and on July7, 2006, the Superior Court entered a Second Order in Implementation of Judgment determining that the executive was entitled to a supplemental retirement benefit, net of the $1.9million previously paid to him, in the amount of $19.4million, which included interest at the rate of ten percent per annum from August29, 2001. The Company recorded a charge of $13.9 million in June2006 to establish the total liability of $19.4million on its balance sheet. Both the executive and the Company appealed the ruling of the Superior Court. On October12, 2007, the Court of Appeal for the State of California, Fourth Appellate District (the Court of Appeal) made certain rulings, and reversed certain portions of the July2006 decision of the Superior Court in a manner that was favorable to the |
Litigation Settlements
Litigation Settlements | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Litigation Settlements [Abstract] | |
Litigation Settlements | Note 9. Litigation Settlements Antitrust Settlements During the last several years, numerous class action lawsuits have been filed against certain brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with others, took improper actions to delay or prevent generic drugs from entering the market. The Company has not been a named plaintiff in any of these class actions, but has been a member of the direct purchasers class (i.e., those purchasers who purchase directly from these pharmaceutical manufacturers). None of the class actions has gone to trial, but some have settled in the past with the Company receiving proceeds from the settlement funds. Currently, there are several such class actions pending in which the Company is a class member. During the three months ended December31, 2009, the Company recognized a gain of $1.5million relating to the above-mentioned class action lawsuits. The gain, which was net of attorney fees and estimated payments due to other parties, was recorded as a reduction to cost of goods sold in the Companys consolidated statements of operations. |
Financial Instruments
Financial Instruments | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Financial Instruments [Abstract] | |
Financial Instruments | Note 10. Financial Instruments The carrying amounts of the Companys cash and cash equivalents, accounts receivable and accounts payable at December31, 2009 and September30, 2009 approximated their fair values due to the short-term nature of these financial instruments. Included in cash and cash equivalents at December31, 2009 and September30, 2009 are money market fund investments of $859.7million and $928.3million, respectively, which are reported at fair value. The fair value of these investments was determined by using quoted prices for identical investments in active markets which are considered to be Level 1 inputs under ASC 820-10, Fair Value Measurements and Disclosures. The carrying amounts and fair values of the Companys debt were $1,375.8million and $1,452.3 million at December31, 2009 and $1,178.0million and $1,246.4million at September30, 2009. The fair value of the Companys debt was determined using quoted market prices that were derived from available market information. |
Selected Consolidating Financia
Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors | |
3 Months Ended
Dec. 31, 2009 USD / shares | |
Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors [Abstract] | |
Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors | Note 11. Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors The Companys 5 5/8% senior notes due September15, 2012 (the 2012 Notes), 5 7/8% senior notes due September15, 2015 (the 2015 Notes), and 4 7/8% senior notes due November15, 2019 (the 2019 Notes and, together with the 2012 Notes and 2015 Notes, the Notes) each are fully and unconditionally guaranteed on a joint and several basis by certain of the Companys subsidiaries (the subsidiaries of the Company that are guarantors of the Notes being referred to collectively as the Guarantor Subsidiaries). The total assets, stockholders equity, revenue, earnings, and cash flows from operating activities of the Guarantor Subsidiaries reflect the majority of the consolidated total of such items as of or for the periods reported. The only consolidated subsidiaries of the Company that are not guarantors of the Notes (the Non-Guarantor Subsidiaries) are: (a)the receivables securitization special purpose entity, (b)the foreign operating subsidiaries, and (c)certain smaller operating subsidiaries. The following tables present condensed consolidating financial statements including AmerisourceBergen Corporation (the Parent), the Guarantor Subsidiaries, and the Non-Guarantor Subsidiaries. Such financial statements include balance sheets as of December31, 2009 and September30, 2009, statements of operations for the three months ended December31, 2009 and 2008, and statements of cash flows for the three months ended December31, 2009 and 2008. SUMMARY CONSOLIDATING BALANCE SHEETS: December 31, 2009 Guarantor Non-Guarantor Consolidated (in thousands) Parent Subsidiaries Subsidiaries Eliminations Total Current assets: Cash and cash equivalents $ 857,093 $ 89,916 $ 32,558 $ $ 979,567 Accounts receivable, net 49 1,141,152 2,399,718 3,540,919 Merchandise inventories 5,229,511 132,340 5,361,851 Prepaid expenses and other 161 31,319 2,314 33,794 Total current assets 857,303 6,491,898 2,566,930 9,916,131 Property and equipment, net 612,073 29,836 641,909 Goodwill and other intangible assets 2,718,759 138,483 2,857,242 Other assets 13,030 127,243 716 140,989 Intercompany investments and advances 2,891,342 1,360,398 94,681 (4,346,421 ) Total assets $ 3,761,675 $ 11,310,371 $ 2,830,646 $ (4,346,421 ) $ 13,556,271 Current liabilities: Accounts payable $ $ 8,063,686 $ 161,871 $ $ 8,225,557 Accrued expenses and other (273,455 ) 622,478 6,807 355,830 Current portion of long-term |