Cencora (COR) 10-Q 7 May 10 2010 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	6 Months Ended Mar. 31, 2010	Apr. 30, 2010	Mar. 31, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	AMERISOURCEBERGEN CORP
Entity Central Index Key	0001140859
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q2
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		282,520,332

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Mar. 31, 2010	Sep. 30, 2009
Current assets:
Cash and cash equivalents	$1,199,872	$1,009,368
Accounts receivable, less allowances for returns and doubtful accounts: $350,427 at March 31, 2010 and $370,303 at September 30, 2009	3,948,478	3,916,509
Merchandise inventories	4,980,895	4,972,820
Prepaid expenses and other	37,785	55,056
Total current assets	10,167,030	9,953,753
Property and equipment, at cost:
Land	36,067	35,665
Buildings and improvements	295,685	292,903
Machinery, equipment and other	770,014	694,555
Total property and equipment	1,101,766	1,023,123
Less accumulated depreciation	(435,965)	(403,885)
Property and equipment, net	665,801	619,238
Goodwill and other intangible assets	2,854,637	2,859,064
Other assets	134,820	140,685
TOTAL ASSETS	13,822,288	13,572,740
Current liabilities:
Accounts payable	8,434,934	8,517,162
Accrued expenses and other	312,169	315,657
Current portion of long-term debt	503	1,068
Deferred income taxes	678,792	645,723
Total current liabilities	9,426,398	9,479,610
Long-term debt, net of current portion	1,358,505	1,176,933
Other liabilities	205,463	199,728
Stockholders' equity:
Common stock, $0.01 par value - authorized: 600,000,000 shares; issued and outstanding: 486,662,447 shares and 281,578,939 shares at March 31, 2010, respectively, and 482,941,212 shares and 287,922,263 shares at September 30, 2009, respectively	4,867	4,829
Additional paid-in capital	3,817,201	3,737,835
Retained earnings	3,206,322	2,919,760
Accumulated other comprehensive loss	(38,293)	(46,096)
Stockholders' equity subtotal before treasury stock	6,990,097	6,616,328
Treasury stock, at cost: 205,083,508 shares at March 31, 2010, and 195,018,949 shares at September 30, 2009	(4,158,175)	(3,899,859)
Total stockholders' equity	2,831,922	2,716,469
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$13,822,288	$13,572,740

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Sep. 30, 2009
Current assets:
Allowances for returns and doubtful accounts	$350,427	$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	486,662,447	482,941,212
Common stock, shares outstanding	281,578,939	287,922,263
Treasury stock, shares held	205,083,508	195,018,949

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009	6 Months Ended Mar. 31, 2010	6 Months Ended Mar. 31, 2009
Consolidated Statements of Operations [Abstract]
Revenue	$19,300,627	$17,311,651	$38,636,486	$34,650,028
Cost of goods sold	18,688,559	16,759,180	37,461,048	33,607,709
Gross profit	612,068	552,471	1,175,438	1,042,319
Operating expenses:
Distribution, selling, and administrative	279,491	279,209	559,730	551,235
Depreciation	16,601	15,607	33,259	30,660
Amortization	4,086	3,827	8,225	7,683
Facility consolidations, employee severance and other	(37)	4,262	(85)	5,291
Intangible asset impairments	700	1,300	700	1,300
Operating income	311,227	248,266	573,609	446,150
Other loss	268	504	545	933
Interest expense, net	19,279	14,521	36,546	28,704
Income from continuing operations before income taxes	291,680	233,241	536,518	416,513
Income taxes	110,672	89,199	204,203	159,942
Income from continuing operations	181,008	144,042	332,315	256,571
Loss from discontinued operations, net of income taxes		(655)		(2,128)
Net income	$181,008	$143,387	$332,315	$254,443
Basic earnings per share:
Continuing operations	0.64	0.48	1.17	0.84
Discontinued operations				-0.01
Rounding		-0.01
Total	0.64	0.47	1.17	0.83
Diluted earnings per share:
Continuing operations	0.63	0.47	1.15	0.83
Discontinued operations				-0.01
Rounding				0.01
Total	0.63	0.47	1.15	0.83
Weighted average common shares outstanding:
Basic	281,926	302,446	284,478	305,586
Diluted	287,162	304,584	289,262	307,446
Cash dividends declared per share of common stock	0.08	0.05	0.16	0.1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	6 Months Ended Mar. 31, 2010	6 Months Ended Mar. 31, 2009
OPERATING ACTIVITIES
Net income	$332,315	$254,443
Loss from discontinued operations		2,128
Income from continuing operations	332,315	256,571
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation, including amounts charged to cost of goods sold	39,607	36,131
Amortization, including amounts charged to interest expense	10,785	9,712
Provision for doubtful accounts	16,758	16,359
Provision for deferred income taxes	41,475	26,142
Share-based compensation	16,791	14,599
Other	3,379	(910)
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Accounts receivable	(21,006)	(290,245)
Merchandise inventories	(22,943)	(385,242)
Prepaid expenses and other assets	23,749	25,855
Accounts payable, accrued expenses, and income taxes	(94,583)	322,296
Other liabilities	66	2,056
Net cash provided by operating activities - continuing operations	346,393	33,324
Net cash used in operating activities - discontinued operations		(906)
NET CASH PROVIDED BY OPERATING ACTIVITIES	346,393	32,418
INVESTING ACTIVITIES
Capital expenditures	(88,037)	(68,587)
Proceeds from sale of PMSI		14,936
Other	134
Net cash used in investing activities - continuing operations	(87,903)	(53,651)
Net cash used in investing activities - discontinued operations		(1,138)
NET CASH USED IN INVESTING ACTIVITIES	(87,903)	(54,789)
FINANCING ACTIVITIES
Long-term debt borrowings	396,696
Borrowings under revolving and securitization credit facilities	561,459	1,604,658
Repayments under revolving and securitization credit facilities	(780,637)	(1,596,360)
Purchases of common stock	(255,199)	(179,879)
Exercise of stock options, including excess tax benefits of $9,454 and $617 in fiscal 2010 and 2009, respectively	64,496	4,415
Cash dividends on common stock	(45,754)	(30,798)
Debt issuance costs and other	(9,047)	(2,450)
NET CASH USED IN FINANCING ACTIVITIES	(67,986)	(200,414)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	190,504	(222,785)
Cash and cash equivalents at beginning of period	1,009,368	878,114
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$1,199,872	$655,329

1_Consolidated Statements of Ca

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $)
In Thousands	6 Months Ended Mar. 31, 2010	6 Months Ended Mar. 31, 2009
FINANCING ACTIVITIES
Excess tax benefit from the exercise of stock options	$9,454	$617

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
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. 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 March31, 2010 and the results of operations and cash flows for the interim periods ended March31, 2010 and 2009 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), AmerisourceBergen Specialty Group (ABSG), and 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 year presentation. Recent Accounting Pronouncements Effective October1, 2009, the Company adopted the applicable sections of Accounti

Discontinued Operations

Discontinued Operations
	3 Months Ended Mar. 31, 2010
Discontinued Operations [Abstract]
Discontinued Operations	Note 2. Discontinued Operations In October2008, the Company completed the divestiture of its workers compensation business, PMSI, for approximately $31million, net of a final working capital adjustment, including a $19 million subordinated note due from PMSI on the fifth anniversary of the closing date, of which $4 million 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 on the note accrues at an annual rate of LIBOR plus 4% (not to exceed 8%). PMSIs revenue and loss before income taxes were $29.0million and $1.1million, respectively, for the six months ended March31, 2009. The Company classified PMSIs October2008 operating results and cash flows as discontinued in the consolidated financial statements. Loss from discontinued operations, net of income taxes, for the three and six months ended March31, 2009 also included a charge of $0.7million related to a prior period business disposition.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
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 U.S. Internal Revenue Service (IRS) completed its examination of the Companys U.S. federal income tax returns for fiscal 2006 and 2007. In Canada, the Company is currently under examination for fiscal years 2007 and 2008. As of March31, 2010, 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 $55.1million ($38.1million net of federal benefit, which, if recognized, would reduce income tax expense). Included in this amount is $18.2million of interest and penalties, which the Company records in income tax expense. During the six months ended March31, 2010, unrecognized tax benefits increased by $0.7million. 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 $5.4million.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets
	3 Months Ended Mar. 31, 2010
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 six months ended March31, 2010 (in thousands): Goodwill at September30, 2009 $ 2,542,352 Foreign currency translation 2,768 Other (707 ) Goodwill at March31, 2010 $ 2,544,413 Following is a summary of other intangible assets (in thousands): March 31, 2010 September 30, 2009 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Indefinite-lived intangibles-trade names $ 240,733 $ $ 240,733 $ 241,554 $ $ 241,554 Finite-lived intangibles: Customer relationships 121,977 (63,142 ) 58,835 121,419 (56,679 ) 64,740 Other 35,442 (24,786 ) 10,656 33,100 (22,682 ) 10,418 Total other intangible assets $ 398,152 $ (87,928 ) $ 310,224 $ 396,073 $ (79,361 ) $ 316,712 Amortization expense for other intangible assets was $8.2million and $7.7million in the six months ended March31, 2010 and 2009, respectively. Amortization expense for other intangible assets is estimated to be $16.3million in fiscal 2010, $15.7million in fiscal 2011, $13.3million in fiscal 2012, $11.2million in fiscal 2013, $8.0million in fiscal 2014, and $13.2million thereafter.

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
Debt	Note 5. Debt Debt consisted of the following (in thousands): March 31, September 30, 2010 2009 Blanco revolving credit facility at 2.23% and 2.25%, respectively, due 2011 $ 55,000 $ 55,000 Receivables securitization facility due 2011 Multi-currency revolving credit facility at 2.25% and 0.92%, respectively, due 2011 8,790 224,026 $400,000, 5 5/8% senior notes due 2012 399,206 399,058 $500,000, 5 7/8% senior notes due 2015 498,457 498,339 $400,000, 4 7/8% senior notes due 2019 396,804 Other 751 1,578 Total debt 1,359,008 1,178,001 Less current portion 503 1,068 Total, net of current portion $ 1,358,505 $ 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 March31, 2010). 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 March 31, 2010). 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). In April2010, the Company amended this facility, which now expires in April2011. The Company continues to have 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 or LIBOR plus a program fee. The Company pays a commitment fee to maintain the availability under the Receivables Securitization Facility. In connection with the April2010 amendment, the program fee and the commitment fee were reduced to 125 basis points and 60 basis points, respectively. At March31, 2010, there were no borrowings outstanding under the Receivables Securitization Facility. The Receivables Securitization Facility contains similar covenants to the Multi-Currency Revolving Cr

Stockholders' Equity and Earnin

Stockholders' Equity and Earnings per Share
	3 Months Ended Mar. 31, 2010
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 and six months ended March 31, 2010 and 2009 (in thousands): Three months ended Six months ended March 31, March 31, 2010 2009 2010 2009 Net income $ 181,008 $ 143,387 $ 332,315 $ 254,443 Foreign currency translation adjustments and other 4,525 (1,175 ) 7,803 (11,241 ) Comprehensive income $ 185,533 $ 142,212 $ 340,118 $ 243,202 In May2009, the Company declared a two-for-one split of the Companys outstanding shares of common stock. In November2008, the Companys board of directors increased the quarterly dividend by 33% to $0.05 per common share. In May2009, the Companys board of directors 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 six months ended March31, 2009, the Company purchased 9.8million shares under this program for $161.7million 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 six months ended March31, 2010, the Company purchased 2.8million shares for $68.1million to complete its authorization under the November2008 program. During the six months ended March31, 2010, the Company purchased 7.2million shares for $186.9million under the new program. 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 Six months ended March 31, March 31, (in thousands) 2010 2009 2010 2009 Weighted average common shares outstanding-basic 281,926 302,446 284,478 305,586 Effect of dilutive securities: stock options, restricted stock, and restricted stock units 5,236 2,138 4,784 1,860 Weighted average common shares outstanding-diluted 287,162 304,584 289,262 307,446 The potentially dilutive stock options that were antidilutive for the three months ended March 31, 2010 and 2009 were 1.1million and 12.2million, respectively, and for the six months ended March31, 2010 and March31, 2009 were 0.6million and

Facility Consolidations, Employ

Facility Consolidations, Employee Severance and Other
	3 Months Ended Mar. 31, 2010
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 reduced various operating costs and terminated certain positions. During the six months ended March31, 2009, the Company terminated 183 employees and incurred $2.9million of employee severance costs. Additionally, during the three months ended March31, 2009, the Company recorded $2.2million of additional costs relating to the Bergen Brunswig Matter as described in Note 8. 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 March31, 2010 (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 (85 ) (85 ) Payments made during the period (1,947 ) (411 ) (2,358 ) Balance as of March31, 2010 $ 5,844 $ 3,138 $ 8,982 The employee severance balance set forth in the above table as of March31, 2010 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 March31, 2010 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 Mar. 31, 2010
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

Litigation Settlements

Litigation Settlements
	3 Months Ended Mar. 31, 2010
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 six months ended March 31, 2010, 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 Mar. 31, 2010
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 March31, 2010 and September30, 2009 approximated their fair values due to the short-term nature of these financial instruments. Included in cash and cash equivalents at March 31, 2010 and September30, 2009 are money market fund investments of $1,106.0million and $928.3 million, 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 Level 1 inputs under ASC 820-10, Fair Value Measurements and Disclosures. The carrying amounts and fair values of the Companys debt were $1,359.0million and $1,442.1 million at March31, 2010 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.

Subsequent Event

Subsequent Event
	3 Months Ended Mar. 31, 2010
Subsequent Event [Abstract]
Subsequent Event	Note 11. Subsequent Event On May5, 2010, the Company received a cash settlement from a pharmaceutical manufacturer relating to an antitrust litigation settlement and expects to realize a gain of $18.8million (net of attorney fees and estimated payments due to other parties) in the quarter ending June30, 2010.

Selected Consolidating Financia

Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors
	3 Months Ended Mar. 31, 2010
Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors [Abstract]
Selected Consolidating Financial Statements of Parent, Guarantors and Non-Guarantors	Note 12. 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 any 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 March31, 2010 and September30, 2009, statements of operations for the three and six months ended March31, 2010 and 2009, and statements of cash flows for the six months ended March31, 2010 and 2009. SUMMARY CONSOLIDATING BALANCE SHEETS: March 31, 2010 Guarantor Non-Guarantor Consolidated (in thousands) Parent Subsidiaries Subsidiaries Eliminations Total Current assets: Cash and cash equivalents $ 1,115,717 $ 56,383 $ 27,772 $ $ 1,199,872 Accounts receivable, net 128 1,275,592 2,672,758 3,948,478 Merchandise inventories 4,863,790 117,105 4,980,895 Prepaid expenses and other 180 35,647 1,958 37,785 Total current assets 1,116,025 6,231,412 2,819,593 10,167,030 Property and equipment, net 637,070 28,731 665,801 Goodwill and other intangible assets 2,716,667 137,970 2,854,637 Other assets 11,848 122,421 551 134,820 Intercompany investments and advances 2,723,824 1,953,282 (144,753 ) (4,532,353 ) Total assets $ 3,851,697 $ 11,660,852 $ 2,842,092 $ (4,532,353 ) $ 13,822,288 Current liabilities: Accounts payable $ $ 8,272,750 $ 162,184 $ $ 8,434,934 Accrued expenses and other (274,692 ) 578,683 8,178 312,169 Current portion of