Bergen Brunswig (BBC) 10-Q 2000 Q1 Quarterly report

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

______________________

FORM 10-Q

[ X ]	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal quarter ended December 31, 1999

OR

[	]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from ________________ to ________________

Commission file number 1-5110

BERGEN BRUNSWIG CORPORATION

(Exact name of registrant as specified in its charter)

New Jersey	22-1444512
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
4000 Metropolitan Drive, Orange, California	92868-3510
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code	(714) 385-4000

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No__

     Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Title of each class of Common Stock	Number of Shares Outstanding January 31, 2000
Class A Common Stock -
par value $1.50 per share	134,481,424

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BERGEN BRUNSWIG CORPORATION

INDEX

				Page No.
Part I.	Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets, December 31, 1999			3
			and September 30, 1999
		Statements of Consolidated Earnings for the three			5
			months ended December 31, 1999 and 1998
		Statements of Consolidated Cash Flows for the three			6
			months ended December 31, 1999 and 1998
		Notes to Consolidated Financial Statements			7
	Item 2.	Management's Discussion and Analysis of Financial			16
			Condition and Results of Operations
	Item 3.	Quantitative and Qualitative Disclosures			28
			About Market Risk
Part II.	Other Information
	Item 1.	Legal Proceedings			29
	Item 6.	Exhibits and Reports on Form 8-K			34
Signatures					35
Index to Exhibits					36

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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BERGEN BRUNSWIG CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND SEPTEMBER 30, 1999
(dollars in thousands)
(Unaudited)
				December 31,			September 30,
- - ASSETS - -				1999			1999
CURRENT ASSETS:
	Cash and cash equivalents ....................................................			$	136,183	$	116,356
	Accounts and notes receivable, less allowance
		for doubtful receivables: $143,922 at December 31,
		1999 and $135,655 at September 30, 1999...................			1,431,495		1,478,990
	Inventories ................................................................................				2,008,688		1,813,716
	Income taxes receivable ........................................................				19,371		40,178
	Prepaid expenses ..................................................................				20,595		18,668
			Total current assets ......................................................		3,616,332		3,467,908
PROPERTY - at cost:
	Land .........................................................................................				18,755		11,265
	Buildings and leasehold improvements ...............................				139,626		129,818
	Equipment and fixtures ..........................................................				249,641		263,635
			Total property ...............................................................		408,022		404,718
	Less accumulated depreciation and amortization..............				143,786		164,273
			Property - net ................................................................		264,236		240,445
OTHER ASSETS:
	Goodwill - net .........................................................................				1,627,850		1,642,424
	Investments .............................................................................				10,946		11,177
	Noncurrent receivables .........................................................				28,698		24,092
	Deferred income taxes ..........................................................				15,195		15,504
	Deferred charges and other assets .....................................				134,955		133,871
			Total other assets ..........................................................		1,817,644		1,827,068
TOTAL ASSETS .........................................................................				$	5,698,212	$	5,535,421
See accompanying Notes to Consolidated Financial Statements.

BERGEN BRUNSWIG CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND SEPTEMBER 30, 1999
(dollars in thousands)
(Unaudited)
				December 31,				September 30,
- - LIABILITIES AND SHAREOWNERS' EQUITY - -				1999				1999
CURRENT LIABILITIES:
	Accounts payable ......................................................................			$	1,972,255		$	1,693,690
	Accrued liabilities ......................................................................				176,559			229,432
	Customer credit balances ........................................................				186,154			172,106
	Deferred income taxes .............................................................				56,797			56,797
	Current portion of long-term debt ............................................				466,958			544,557
	Current portion of other long-term obligations .......................				1,366			1,366
			Total current liabilities .....................................................		2,860,089			2,697,948
Long-term debt, net of current portion...........................................					988,530			993,344
Other long-term obligations, net of current portion.......................					47,292			48,639
			Total long-term obligations ...........................................		1,035,822			1,041,983
COMPANY-OBLIGATED MANDATORILY REDEEMABLE
PREFERRED SECURITIES OF SUBSIDIARY TRUST
HOLDING SOLELY DEBT SECURITIES OF THE COMPANY..					300,000			300,000
SHAREOWNERS' EQUITY:
	Capital stock:
		Preferred - authorized: 3,000,000 shares; issued: none....			-			-
		Class A Common - authorized: 300,000,000 shares;
		issued: 137,585,331,shares at December 31, 1999
		and 137,316,182 shares at September 30, 1999..............			206,380			205,974
	Paid-in capital ............................................................................				820,086			818,564
	Accumulated other comprehensive income ............................				532			235
	Retained earnings ..................................................................				500,516			495,930
			Total ..................................................................................		1,527,514			1,520,703
	Treasury shares at cost: 3,110,673 shares at December 31,
		1999 and 3,110,671 shares at September 30, 1999....			(25,213	)		(25,213	)
			Total shareowners' equity ................................................		1,502,301			1,495,490
TOTAL LIABILITIES AND SHAREOWNERS' EQUITY................				$	5,698,212		$	5,535,421
See accompanying Notes to Consolidated Financial Statements.

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BERGEN BRUNSWIG CORPORATION
STATEMENTS OF CONSOLIDATED EARNINGS
FOR THE THREE MONTHS ENDED
DECEMBER 31, 1999 AND 1998
(in thousands except per share amounts)
(Unaudited)
			1999			1998
Consolidated earnings:
Net sales and other revenues:
	Excluding bulk shipments to customers' warehouses		$	4,833,180		$	3,960,106
	Bulk shipments to customers' warehouses			1,095,782			1,060,212
		Total net sales and other revenues		5,928,962			5,020,318
Costs and expenses:
	Cost of sales			5,574,475			4,821,690
	Distribution, selling, general and
		administrative expenses		292,848			143,048
		Total costs and expenses		5,867,323			4,964,738
Operating earnings				61,639			55,580
Net interest expense				29,343			8,718
Earnings before taxes on income and distributions				32,296			46,862
	on preferred securities of subsidiary trust
Taxes on income				14,106			18,979
Earnings before distributions on preferred
	securities of subsidiary trust			18,190			27,883
Distributions on preferred securities
	of subsidiary trust, net of income tax benefit of $2,311			(3,539	)		-
Net earnings			$	14,651		$	27,883
Basic and diluted earnings per share			$	0.11		$	0.27
Weighted average number of shares outstanding:
Basic				134,247			103,170
Diluted				134,358			104,968
Cash dividends declared per share of
Class A Common Stock			$	.075		$	-
See accompanying Notes to Consolidated Financial Statements.

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BERGEN BRUNSWIG CORPORATION
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED
DECEMBER 31, 1999 AND 1998
(in thousands)
(Unaudited)
					1999			1998
Operating Activities
	Net earnings				$	14,651		$	27,883
	Adjustments to reconcile net earnings to net cash
		flows from operating activities:
			Provision for doubtful receivables			19,588			3,361
			Depreciation and amortization of property			13,947			5,557
			Loss on dispositions of property			112			442
			Amortization of intangible assets			14,473			2,680
			Deferred compensation			1,424			1,029
			Deferred income taxes			121			(64)
	Effects of changes on, net of business acquisitions:
			Receivables			(176,699	)		(131,659	)
			Inventories			(194,972	)		(507,959	)
			Income taxes receivable/payable			20,807			18,475
			Prepaid expenses and other assets			(6,713	)		(7,704	)
			Accounts payable			278,565			357,557
			Accrued liabilities			(36,524	)		(5,817	)
			Customer credit balances			14,048			22,446
				Net cash flows from operating activities		(37,172	)		(213,773	)
Investing Activities
	Property acquisitions					(44,515	)		(8,030	)
	Proceeds from sale of accounts receivable with recourse					200,000			-
	Other					758			807
				Net cash flows from investing activities		156,243			(7,223	)
Financing Activities
	Net revolving bank loan activity					544,783			220,000
	Net commercial paper activity					(622,281	)		-
	Repayment of other obligations					(7,759	)		(5,909	)
	Distributions paid on trust preferred securities					(5,850	)		-
	Shareowners' equity transactions:
			Exercise of stock options and issuance of restricted shares			817			3,961
			Employee stock purchase plan			1,111			-
			Cash dividends paid on Common Stock			(10,065	)		(7,716	)
				Net cash flows from financing activities		(99,244	)		210,336
Net increase (decrease) in cash and cash equivalents						19,827			(10,660	)
Cash and cash equivalents at beginning of period						116,356			79,004
Cash and cash equivalents at end of period					$	136,183		$	68,344
Supplemental Cash Flow Disclosures
	Cash paid during the period for:
			Interest		$	39,961		$	5,882
			Income taxes - net of refunds			857			566
See accompanying Notes to Consolidated Financial Statements.