Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | OWENS & MINOR INC/VA/ | |
Entity Central Index Key | 75,252 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Trading Symbol | OMI | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 62,407,033 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net revenue | $ 2,483,676 | $ 2,422,167 | $ 4,939,469 | $ 4,813,363 |
Cost of goods sold | 2,184,256 | 2,123,830 | 4,343,413 | 4,217,425 |
Gross margin | 299,420 | 298,337 | 596,056 | 595,938 |
Distribution, selling, and administrative expenses | 242,914 | 246,958 | 485,639 | 496,652 |
Acquisition-related and exit and realignment charges | 6,752 | 5,707 | 17,235 | 15,623 |
Other operating income, net | (2,300) | (2,188) | (3,842) | (5,172) |
Operating earnings | 52,054 | 47,860 | 97,024 | 88,835 |
Interest expense, net | 6,765 | 6,680 | 13,554 | 13,560 |
Income before income taxes | 45,289 | 41,180 | 83,470 | 75,275 |
Income tax provision | 17,573 | 16,954 | 31,619 | 32,109 |
Net income | $ 27,716 | $ 24,226 | $ 51,851 | $ 43,166 |
Net income per common share: | ||||
Basic (in usd per share) | $ 0.45 | $ 0.39 | $ 0.83 | $ 0.69 |
Diluted (in usd per share) | 0.45 | 0.39 | 0.83 | 0.69 |
Cash dividends in USD per common share | $ 0.255 | $ 0.2525 | $ 0.51 | $ 0.505 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,716 | $ 24,226 | $ 51,851 | $ 43,166 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments (net of income tax of $0 in 2016 and 2015) | (7,120) | 6,606 | 1,042 | (21,335) |
Change in unrecognized net periodic pension costs (net of income tax of $168 and $339 in 2016 and $141 and $285 in 2015) | 245 | 260 | 483 | 518 |
Other (net of income tax of $0 in 2016 and 2015) | 18 | (8) | 37 | 30 |
Total other comprehensive income (loss), net of tax | (6,857) | 6,858 | 1,562 | (20,787) |
Comprehensive income | $ 20,859 | $ 31,084 | $ 53,413 | $ 22,379 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Currency translation adjustments, income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Change in unrecognized net periodic pension costs, income tax benefit | 168 | 141 | 339 | 285 |
Other, income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 138,951 | $ 161,020 |
Accounts and notes receivable, net of allowances of $13,122 and $13,177 | 609,212 | 587,935 |
Merchandise inventories | 957,972 | 940,775 |
Other current assets | 268,645 | 284,970 |
Total current assets | 1,974,780 | 1,974,700 |
Property and equipment, net of accumulated depreciation of $198,703 and $189,105 | 201,519 | 208,930 |
Goodwill, net | 418,366 | 419,619 |
Intangible assets, net | 89,599 | 95,250 |
Other assets, net | 71,800 | 75,277 |
Total assets | 2,756,064 | 2,773,776 |
Current liabilities | ||
Accounts payable | 775,970 | 710,609 |
Accrued payroll and related liabilities | 28,268 | 45,907 |
Other current liabilities | 239,887 | 307,073 |
Total current liabilities | 1,044,125 | 1,063,589 |
Long-term debt, excluding current portion | 566,955 | 568,495 |
Deferred income taxes | 84,500 | 86,326 |
Other liabilities | 64,187 | 62,776 |
Total liabilities | 1,759,767 | 1,781,186 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $2 per share; authorized - 200,000 shares; issued and outstanding - 62,510 shares and 62,803 shares | 125,021 | 125,606 |
Paid-in capital | 214,435 | 211,943 |
Retained earnings | 707,104 | 706,866 |
Accumulated other comprehensive loss | (50,263) | (51,825) |
Total equity | 996,297 | 992,590 |
Total liabilities and equity | $ 2,756,064 | $ 2,773,776 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 13,122 | $ 13,177 |
Property and equipment, accumulated depreciation | $ 198,703 | $ 189,105 |
Common stock, par value | $ 2 | $ 2 |
Common stock, authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 62,510,000 | 62,803,000 |
Common stock, outstanding | 62,510,000 | 62,803,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 51,851 | $ 43,166 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 28,343 | 36,138 |
Share-based compensation expense | 5,969 | 5,048 |
Provision for losses on accounts and notes receivable | (27) | 41 |
Deferred income tax (benefit) expense | (2,071) | 2,992 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable | (29,736) | 41,622 |
Merchandise inventories | (17,947) | (31,866) |
Accounts payable | 62,710 | 145,682 |
Net change in other assets and liabilities | (56,599) | 2,771 |
Other, net | 145 | 1,196 |
Cash provided by (used for) operating activities | 42,638 | 246,790 |
Investing activities: | ||
Additions to property and equipment | (8,857) | (12,009) |
Payments for Software | (4,602) | (10,816) |
Proceeds from sale of property and equipment | 4,565 | 837 |
Cash used for investing activities | (8,894) | (21,988) |
Financing activities: | ||
Change in bank overdraft | 0 | 1,530 |
Repayment of revolving credit facility | 0 | (33,700) |
Cash dividends paid | (32,003) | (31,867) |
Repurchases of common stock | (20,849) | (7,440) |
Excess tax benefits related to share-based compensation | 598 | 457 |
Other, net | (5,968) | (5,112) |
Cash used for financing activities | (58,222) | (76,132) |
Effect of exchange rate changes on cash and cash equivalents | 2,409 | (4,473) |
Net increase (decrease) in cash and cash equivalents | (22,069) | 144,197 |
Cash and cash equivalents at beginning of period | 161,020 | 56,772 |
Cash and cash equivalents at end of period | 138,951 | 200,969 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid, net | 49,567 | 27,542 |
Interest paid | $ 13,513 | $ 13,260 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2014 | 63,070 | ||||
Beginning Balance at Dec. 31, 2014 | $ 990,838 | $ 126,140 | $ 202,934 | $ 685,765 | $ (24,001) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 43,166 | 43,166 | |||
Other comprehensive income (loss) | (20,787) | (20,787) | |||
Dividends declared | (31,779) | (31,779) | |||
Shares repurchased and retired (in shares) | (220) | ||||
Shares repurchased and retired | (7,440) | $ (440) | (7,000) | ||
Share-based compensation expense, exercises and other (shares) | 168 | ||||
Share-based compensation expense, exercises and other | 3,129 | $ 336 | 2,793 | ||
Ending Balance (in shares) at Jun. 30, 2015 | 63,018 | ||||
Ending Balance at Jun. 30, 2015 | $ 977,127 | $ 126,036 | 205,727 | 690,152 | (44,788) |
Beginning Balance (in shares) at Dec. 31, 2015 | 62,803 | 62,803 | |||
Beginning Balance at Dec. 31, 2015 | $ 992,590 | $ 125,606 | 211,943 | 706,866 | (51,825) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 51,851 | 51,851 | |||
Other comprehensive income (loss) | 1,562 | 1,562 | |||
Dividends declared | $ (31,914) | (31,914) | |||
Shares repurchased and retired (in shares) | (600) | (575) | |||
Shares repurchased and retired | $ (20,849) | $ (1,150) | (19,699) | ||
Share-based compensation expense, exercises and other (shares) | 282 | ||||
Share-based compensation expense, exercises and other | $ 3,057 | $ 565 | 2,492 | ||
Ending Balance (in shares) at Jun. 30, 2016 | 62,510 | 62,510 | |||
Ending Balance at Jun. 30, 2016 | $ 996,297 | $ 125,021 | $ 214,435 | $ 707,104 | $ (50,263) |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in USD per share) | $ 0.255 | $ 0.2525 | $ 0.51 | $ 0.505 |
Basis of Presentation and Use o
Basis of Presentation and Use of Estimates | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Owens & Minor, Inc. and the subsidiaries it controls (we, us, or our) and contain all adjustments (which are comprised only of normal recurring accruals and use of estimates) necessary to conform with U.S. generally accepted accounting principles (GAAP). All significant intercompany accounts and transactions have been eliminated. The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Recently, we have made certain changes to the leadership team, organizational structure, budgeting and financial reporting processes which drive changes to segment reporting. These changes align our operations into three distinct business units: Domestic, International and Clinical & Procedural Solutions (CPS). Domestic is our U.S.distribution, logistics and value-added services business, while International is our European distribution, logistics and value-added services business. CPS provides product-related solutions, including surgical and procedural kitting and sourcing. Beginning with the quarter ended March 31, 2016, we now report our financial results using this three segment structure and have recast prior year segment results on the same basis. Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. Depreciation and amortization, previously reported as a separate financial statement line item in the consolidated statements of income is now included in distribution, selling and administrative expenses for all periods presented. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make assumptions and estimates that affect reported amounts and related disclosures. Actual results may differ from these estimates. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The carrying amounts of cash and cash equivalents, accounts receivable, financing receivables, accounts payable and financing payables included in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments. The fair value of long-term debt is estimated based on quoted market prices or dealer quotes for the identical liability when traded as an asset in an active market (Level 1) or, if quoted market prices or dealer quotes are not available, on the borrowing rates currently available for loans with similar terms, credit ratings and average remaining maturities (Level 2). We determine the fair value of our derivatives based on estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. See Note 7 for the fair value of long-term debt and Note 8 for the fair value of derivatives. |
Financing Receivables and Payab
Financing Receivables and Payables | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Financing Receivables and Payables | Financing Receivables and Payables At June 30, 2016 and December 31, 2015 , we had financing receivables of $165.9 million and $198.5 million and related payables of $87.2 million and $148.5 million outstanding under our order-to-cash program and product financing arrangements, which were included in other current assets and other current liabilities, respectively, in the consolidated balance sheets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In connection with our new three segment structure, goodwill has been reallocated based on the relative fair value of the underlying reporting units. We performed an interim impairment analysis in the first quarter of 2016 as a result of this change and noted no impairment. The following table summarizes the changes in the carrying amount of goodwill through June 30, 2016 : Domestic International CPS Consolidated Carrying amount of goodwill, December 31, 2015 $ 180,006 $ 23,426 $ 216,187 $ 419,619 Currency translation adjustments — (1,576 ) 323 (1,253 ) Carrying amount of goodwill, June 30, 2016 $ 180,006 $ 21,850 $ 216,510 $ 418,366 Intangible assets at June 30, 2016 , and December 31, 2015 , were as follows: June 30, 2016 December 31, 2015 Customer Relationships Other Intangibles Customer Other Gross intangible assets $ 120,784 $ 4,364 $ 121,888 $ 4,621 Accumulated amortization (34,201 ) (1,348 ) (29,872 ) (1,387 ) Net intangible assets $ 86,583 $ 3,016 $ 92,016 $ 3,234 At June 30, 2016 , $12.7 million in net intangible assets were held in the Domestic segment, $12.9 million were held in the International segment and $64.0 million were held in the CPS segment. Amortization expense for intangible assets was $2.2 million and $2.4 million for the three months ended June 30, 2016 and 2015 and $4.5 million and $4.9 million for the six months ended June 30, 2016 and 2015 . Based on the current carrying value of intangible assets subject to amortization, estimated amortization expense is $4.6 million for the remainder of 2016 , $9.9 million for 2017 , $9.2 million for 2018 , $9.2 million for 2019 , $9.0 million for 2020 and $8.6 million for 2021. |
Exit and Realignment Charges
Exit and Realignment Charges | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Exit and Realignment Costs | Exit and Realignment Charges We periodically incur exit and realignment and other charges associated with optimizing our operations, which includes the consolidation of certain distribution and logistics centers, administrative offices and warehouses in the United States and Europe. These charges also include costs associated with our strategic organizational realignment which include management changes, certain professional fees and costs to streamline administrative functions and processes. Exit and realignment charges by segment for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Domestic segment $ 4,894 $ (124 ) $ 12,968 $ 2,515 International segment 1,128 4,045 2,828 8,717 CPS segment — — 1,110 — Total exit and realignment charges $ 6,022 $ 3,921 $ 16,906 $ 11,232 For the three and six months ended June 30, 2016, $1.3 million and $11.2 million in charges were associated with our voluntary employee separation program and other severance activities. The following table summarizes the activity related to exit and realignment cost accruals through June 30, 2016 and 2015: Lease Obligations Severance and Other Total Accrued exit and realignment costs, December 31, 2015 $ 486 $ 1,840 $ 2,326 Provision for exit and realignment activities — 9,895 9,895 Cash payments, net of sublease income (486 ) (1,287 ) (1,773 ) Accrued exit and realignment costs, March 31, 2016 — 10,448 10,448 Provision for exit and realignment activities 1,254 1,254 Cash payments, net of sublease income — (7,087 ) (7,087 ) Accrued exit and realignment costs, June 30, 2016 $ — $ 4,615 $ 4,615 Accrued exit and realignment costs, December 31, 2014 $ 3,575 $ 2,887 $ 6,462 Provision for exit and realignment activities 256 142 398 Cash payments, net of sublease income (385 ) (873 ) (1,258 ) Accrued exit and realignment costs, March 31, 2015 3,446 2,156 5,602 Provision for exit and realignment activities 572 392 964 Cash payments, net of sublease income (349 ) (1,171 ) (1,520 ) Accrued exit and realignment costs, June 30, 2015 $ 3,669 $ 1,377 $ 5,046 In addition to the exit and realignment accruals in the preceding table, we also incurred $4.7 million of costs that were expensed as incurred for the three months ended June 30, 2016, including $0.9 million in information systems costs, $3.2 million in consulting costs and $0.6 million in other costs. In the first quarter of 2016, we also incurred $1.0 million of costs that were expensed as incurred, including $0.5 million in information systems costs, $0.4 million in consulting costs and $0.1 million in other costs. For the three months ended June 30, 2015, we recognized $2.9 million of costs that were expensed as incurred, including $1.2 million in accelerated amortization of an information system that has been replaced, $0.8 million in property related costs, $0.7 million in information systems costs and $0.2 million in other costs. In the first quarter of 2015, we also incurred $6.9 million of costs that were expensed as incurred, including $3.0 million in accelerated amortization of an information system that has been replaced, $1.8 million in facility costs, $1.3 million in labor costs, $0.3 million in information systems costs and $0.5 million in other costs. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans We have a noncontributory, unfunded retirement plan for certain officers and other key employees in the United States. Certain of our foreign subsidiaries also have defined benefit pension plans covering substantially all of their respective employees. The components of net periodic benefit cost, which are included in distribution, selling and administrative expenses, for the three and six months ended June 30, 2016 and 2015 , were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 20 $ 32 $ 43 $ 65 Interest cost 510 464 1,015 929 Recognized net actuarial loss 413 401 822 802 Net periodic benefit cost $ 943 $ 897 $ 1,880 $ 1,796 Certain of our foreign subsidiaries have health and welfare plans covering substantially all of their respective employees. Our expense for these plans totaled $0.4 million and $0.5 million for the three months ended June 30, 2016 and 2015 and $0.8 million and $1.0 million for the six months ended June 30, 2016 and 2015 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt We have $275 million of 3.875% senior notes due 2021 (the “2021 Notes”) and $275 million of 4.375% senior notes due 2024 (the “2024 Notes”), with interest payable semi-annually. The 2021 Notes were sold at 99.5% of the principal amount with an effective yield of 3.951% . The 2024 Notes were sold at 99.6% of the principal with an effective yield of 4.422% . We have the option to redeem the 2021 Notes and 2024 Notes in part or in whole prior to maturity at a redemption price equal to the greater of 100% of the principal amount or the present value of the remaining scheduled payments discounted at the Treasury Rate plus 30 basis points. As of June 30, 2016 and December 31, 2015, the estimated fair value of the 2021 Notes was $283.2 million and $273.7 million and the estimated fair value of the 2024 Notes was $280.9 million and $272.8 million , respectively. We have a Credit Agreement with a $450 million borrowing capacity which extends through September 2019. Under the Amended Credit Agreement, we have the ability to request two one -year extensions and to request an increase in aggregate commitments by up to $200 million . The interest rate on the Amended Credit Agreement, which is subject to adjustment quarterly, is based on the London Interbank Offered Rate (LIBOR), the Federal Funds Rate or the Prime Rate, plus an adjustment based on the better of our debt ratings or leverage ratio (Credit Spread) as defined by the Amended Credit Agreement. We are charged a commitment fee of between 12.5 and 25.0 basis points on the unused portion of the facility. The terms of the Amended Credit Agreement limit the amount of indebtedness that we may incur and require us to maintain ratios for leverage and interest coverage, including on a pro forma basis in the event of an acquisition. Based on our leverage ratio at June 30, 2016, the interest rate under the credit facility is LIBOR plus 1.375% . At June 30, 2016, we had no borrowings and letters of credit of approximately $5.0 million outstanding under the Amended Credit Agreement, leaving $445 million available for borrowing. We also have a $1.2 million letter of credit outstanding as of June 30, 2016 and December 31, 2015, which supports our facilities leased in Europe. The Amended Credit Agreement and senior notes contain cross-default provisions which could result in the acceleration of payments due in the event of default of either agreement. We believe we were in compliance with our debt covenants at June 30, 2016. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives When deemed appropriate, we use derivatives, primarily forward contracts, as a risk management tool to mitigate the potential impact of foreign currency exchange risk. At June 30, 2016, we did not have any derivatives outstanding. The total notional values of our foreign currency derivatives as of December 31, 2015 was $2.0 million . In 2016 and 2015, we did not have any derivatives designated as hedging instruments and all gains and losses resulting from changes in the fair value of derivative instruments were immediately recognized into earnings. At December 31, 2015, the fair value of our foreign currency contracts included in other assets on the consolidated balance sheet was $0.4 million . The impact from changes in the fair value of these foreign currency derivatives included in other operating expense was $0.1 million and $0.4 million for the three and six months ended June 30, 2016. The impact from changes in the fair value of these foreign currency derivatives included in other operating expense was $0.5 million and other operating income was $0.3 million for the three and six months ended June 30, 2015. We consider the risk of counterparty default to be minimal. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 38.8% and 37.9% for the three and six months ended June 30, 2016 , compared to 41.2% and 42.7% in the same periods of 2015 . The change in rate resulted from a higher percentage of the company's pretax income earned in lower tax rate jurisdictions compared to prior year and the deductibility of certain prior year acquisition-related charges for income tax purposes. The liability for unrecognized tax benefits was $9.0 million at June 30, 2016 , and $7.7 million at December 31, 2015 . Included in the liability at June 30, 2016 were $4.4 million of tax positions for which ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The following summarizes the calculation of net income per common share attributable to common shareholders for the three and six months ended June 30, 2016 and 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2016 2015 2016 2015 Numerator: Net income $ 27,716 $ 24,226 $ 51,851 $ 43,166 Less: income allocated to unvested restricted shares (281 ) (195 ) (560 ) (359 ) Net income attributable to common shareholders - basic 27,435 24,031 51,291 42,807 Add: undistributed income attributable to unvested restricted shares - basic 72 42 131 63 Less: undistributed income attributable to unvested restricted shares - diluted (72 ) (42 ) (131 ) (63 ) Net income attributable to common shareholders - diluted $ 27,435 $ 24,031 $ 51,291 $ 42,807 Denominator: Weighted average shares outstanding - basic 61,502 62,226 61,588 62,281 Dilutive shares - stock options — — — 1 Weighted average shares outstanding - diluted 61,502 62,226 61,588 62,282 Net income per share attributable to common shareholders: Basic $ 0.45 $ 0.39 $ 0.83 $ 0.69 Diluted $ 0.45 $ 0.39 $ 0.83 $ 0.69 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Our Board of Directors has authorized a share repurchase program of up to $100 million of our outstanding common stock to be executed at the discretion of management over a three -year period, expiring in February 2017. The program is intended, in part, to offset shares issued in conjunction with our stock incentive plans and return capital to shareholders. The program may be suspended or discontinued at any time. Purchases under the share repurchase program are made either pursuant to 10b5-1 plans entered into by the company from time to time and/or during the company’s scheduled quarterly trading windows for officers and directors. During the six months ended June 30, 2016 , we repurchased in open-market transactions and retired approximately 0.6 million shares of our common stock for an aggregate of $20.8 million , or an average price per share of $36.25 . As of June 30, 2016 , we have approximately $49.2 million remaining under the repurchase program. We have elected to allocate any excess of share repurchase price over par value to retained earnings. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table shows the changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2016 and 2015 : Retirement Plans Currency Translation Adjustments Other Total Accumulated other comprehensive income (loss), March 31, 2016 $ (10,244 ) $ (33,066 ) $ (96 ) $ (43,406 ) Other comprehensive income (loss) before reclassifications — (7,120 ) — (7,120 ) Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — (7,120 ) — (7,120 ) Amounts reclassified from accumulated other comprehensive income (loss) 413 — 18 431 Income tax (168 ) — — (168 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 245 — — 18 263 Other comprehensive income (loss) 245 (7,120 ) 18 (6,857 ) Accumulated other comprehensive income (loss), June 30, 2016 $ (9,999 ) $ (40,186 ) $ (78 ) $ (50,263 ) Accumulated other comprehensive income (loss), March 31, 2015 $ (10,065 ) $ (41,588 ) $ 7 $ (51,646 ) Other comprehensive income (loss) before reclassifications — 6,606 — 6,606 Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — 6,606 — 6,606 Amounts reclassified from accumulated other comprehensive income (loss) 401 — (8 ) 393 Income tax (141 ) — — (141 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 260 — (8 ) 252 Other comprehensive income (loss) 260 6,606 (8 ) 6,858 Accumulated other comprehensive income (loss), June 30, 2015 $ (9,805 ) $ (34,982 ) $ (1 ) $ (44,788 ) Retirement Plans Currency Translation Adjustments Other Total Accumulated other comprehensive income (loss), December 31, 2015 $ (10,482 ) $ (41,228 ) $ (115 ) $ (51,825 ) Other comprehensive income (loss) before reclassifications — 1,042 — 1,042 Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — 1,042 — 1,042 Amounts reclassified from accumulated other comprehensive income (loss) 822 — 37 859 Income tax (339 ) — — (339 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 483 — 37 520 Other comprehensive income (loss) 483 1,042 37 1,562 Accumulated other comprehensive income (loss), June 30, 2016 $ (9,999 ) $ (40,186 ) $ (78 ) $ (50,263 ) Accumulated other comprehensive income (loss), December 31, 2014 $ (10,323 ) $ (13,647 ) $ (31 ) $ (24,001 ) Other comprehensive income (loss) before reclassifications — (21,335 ) — (21,335 ) Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — (21,335 ) — (21,335 ) Amounts reclassified from accumulated other comprehensive income (loss) 803 — 30 833 Income tax (285 ) — — (285 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 518 — 30 548 Other comprehensive income (loss) 518 (21,335 ) 30 (20,787 ) Accumulated other comprehensive income (loss), June 30, 2015 $ (9,805 ) $ (34,982 ) $ (1 ) $ (44,788 ) We include amounts reclassified out of accumulated other comprehensive income related to defined benefit pension plans as a component of net periodic pension cost recorded in distribution, selling and administrative expenses. For the three and six months ended June 30, 2016 and 2015, we reclassified $0.4 million and $0.8 million of actuarial net losses. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We periodically evaluate our application of accounting guidance for reportable segments and disclose information about reportable segments based on the way management organizes the enterprise for making operating decisions and assessing performance. We report our business under three segments: Domestic, International and Clinical & Procedural Solutions (CPS). The Domestic segment includes our United States distribution, logistics and value-added services business. The International segment consists of our European distribution, logistics and value-added services business. CPS provides product-related solutions, including surgical and procedural kitting and sourcing. We evaluate the performance of our segments based on their operating earnings excluding acquisition-related and exit and realignment charges, certain purchase price fair value adjustments, and other substantive items that, either as a result of their nature or size, would not be expected to occur as part of our normal business operations on a regular basis. Segment assets exclude inter-segment account balances as we believe their inclusion would be misleading or not meaningful. We believe all inter-segment sales are at prices that approximate market. The following tables present financial information by segment: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net revenue: Segment net revenue Domestic $ 2,345,746 $ 2,279,725 $ 4,667,455 $ 4,529,430 International 88,559 92,856 172,110 188,367 CPS 134,964 135,714 276,317 265,359 Total segment net revenue $ 2,569,269 $ 2,508,295 $ 5,115,882 $ 4,983,156 Inter-segment revenue CPS (85,593 ) (86,128 ) (176,413 ) (169,793 ) Total inter-segment revenue (85,593 ) (86,128 ) (176,413 ) (169,793 ) Consolidated net revenue $ 2,483,676 $ 2,422,167 $ 4,939,469 $ 4,813,363 Operating earnings (loss): Domestic $ 43,451 $ 38,394 $ 85,169 $ 76,499 International 893 1,181 2,021 843 CPS 14,255 13,850 27,526 27,032 Inter-segment eliminations 207 142 (457 ) 84 Acquisition-related and exit and realignment charges (1) (6,752 ) (5,707 ) (17,235 ) (15,623 ) Consolidated operating earnings $ 52,054 $ 47,860 $ 97,024 $ 88,835 Depreciation and amortization: Domestic $ 7,497 $ 8,888 $ 15,038 $ 17,971 International 4,416 4,743 8,865 9,638 CPS 2,213 2,150 4,440 4,341 Consolidated depreciation and amortization $ 14,126 $ 15,781 $ 28,343 $ 31,950 Capital expenditures: Domestic $ 2,659 $ 3,349 $ 7,202 $ 11,358 International 2,860 7,875 4,830 10,790 CPS 880 35 1,427 677 Consolidated capital expenditures $ 6,399 $ 11,259 $ 13,459 $ 22,825 June 30, 2016 December 31, 2015 Total assets: Domestic $ 1,752,278 $ 1,728,345 International 442,097 464,003 CPS 422,738 420,408 Segment assets 2,617,113 2,612,756 Cash and cash equivalents 138,951 161,020 Consolidated total assets $ 2,756,064 $ 2,773,776 ( 1) The three and six months ended June 30, 2015 include $1.2 million and $4.2 million , respectively in accelerated amortization related to an information system that has been replaced in the International segment. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The following tables present condensed consolidating financial information for: Owens & Minor, Inc. (O&M); the guarantors of Owens & Minor, Inc.’s 2021 Notes and 2024 Notes, on a combined basis; and the non-guarantor subsidiaries of the 2021 Notes and 2024 Notes, on a combined basis. The guarantor subsidiaries are 100% owned by Owens & Minor, Inc. Separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional, as well as joint and several, and we believe the condensed consolidating financial information is more meaningful in understanding the financial position, results of operations and cash flows of the guarantor subsidiaries. Three Months Ended June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Income Net revenue $ — $ 2,345,746 $ 176,010 $ (38,080 ) $ 2,483,676 Cost of goods sold — 2,129,586 92,660 (37,990 ) 2,184,256 Gross margin — 216,160 83,350 (90 ) 299,420 Distribution, selling and administrative expenses 357 166,047 76,510 — 242,914 Acquisition-related and exit and realignment charges — 5,249 1,503 6,752 Other operating income, net — (1,363 ) (937 ) — (2,300 ) Operating earnings (loss) (357 ) 46,227 6,274 (90 ) 52,054 Interest expense (income), net 6,903 (846 ) 708 — 6,765 Income (loss) before income taxes (7,260 ) 47,073 5,566 (90 ) 45,289 Income tax (benefit) provision — 14,555 3,018 — 17,573 Equity in earnings of subsidiaries 34,976 — — (34,976 ) — Net income (loss) 27,716 32,518 2,548 (35,066 ) 27,716 Other comprehensive income (loss) (6,857 ) 264 (7,120 ) 6,856 (6,857 ) Comprehensive income (loss) $ 20,859 $ 32,782 $ (4,572 ) $ (28,210 ) $ 20,859 Three Months Ended June 30, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Income Net revenue $ — $ 2,279,725 $ 178,844 $ (36,402 ) $ 2,422,167 Cost of goods sold — 2,064,515 95,570 (36,255 ) 2,123,830 Gross margin — 215,210 83,274 (147 ) 298,337 Distribution, selling and administrative expenses 626 169,258 77,074 — 246,958 Acquisition-related and exit and realignment charges — 256 5,451 — 5,707 Other operating income, net — (1,354 ) (834 ) — (2,188 ) Operating earnings (loss) (626 ) 47,050 1,583 (147 ) 47,860 Interest expense (income), net 6,938 (233 ) (25 ) — 6,680 Income (loss) before income taxes (7,564 ) 47,283 1,608 (147 ) 41,180 Income tax (benefit) provision — 16,973 (19 ) — 16,954 Equity in earnings of subsidiaries 31,790 — — (31,790 ) — Net income (loss) 24,226 30,310 1,627 (31,937 ) 24,226 Other comprehensive income (loss) 6,858 (21,839 ) 28,696 (6,857 ) 6,858 Comprehensive income (loss) $ 31,084 $ 8,471 $ 30,323 $ (38,794 ) $ 31,084 Six Months Ended June 30, 2016 Owens & Guarantor Non-guarantor Eliminations Consolidated Statements of Income Net revenue $ — $ 4,667,454 $ 348,110 $ (76,095 ) $ 4,939,469 Cost of goods sold — 4,234,851 184,734 (76,172 ) 4,343,413 Gross margin — 432,603 163,376 77 596,056 Distribution, selling and administrative expenses 891 335,357 149,391 — 485,639 Acquisition-related and exit and realignment charges — 13,652 3,583 — 17,235 Other operating income, net — (2,747 ) (1,095 ) — (3,842 ) Operating earnings (loss) (891 ) 86,341 11,497 77 97,024 Interest expense (income), net 13,743 (1,475 ) 1,286 — 13,554 Income (loss) before income taxes (14,634 ) 87,816 10,211 77 83,470 Income tax (benefit) provision — 26,101 5,518 — 31,619 Equity in earnings of subsidiaries 66,485 — — (66,485 ) — Net income (loss) 51,851 61,715 4,693 (66,408 ) 51,851 Other comprehensive income (loss) 1,562 521 1,041 (1,562 ) 1,562 Comprehensive income (loss) $ 53,413 $ 62,236 $ 5,734 $ (67,970 ) $ 53,413 Six Months Ended June 30, 2015 Owens & Guarantor Non-guarantor Eliminations Consolidated Statements of Income Net revenue $ — $ 4,529,430 $ 360,204 $ (76,271 ) $ 4,813,363 Cost of goods sold — 4,098,327 195,608 (76,510 ) 4,217,425 Gross margin — 431,103 164,596 239 595,938 Distribution, selling and administrative expenses 665 338,939 157,048 — 496,652 Acquisition-related and exit and realignment charges — 3,833 11,790 — 15,623 Other operating income, net — (2,331 ) (2,841 ) — (5,172 ) Operating earnings (loss) (665 ) 90,662 (1,401 ) 239 88,835 Interest expense (income), net 12,885 581 94 — 13,560 Income (loss) before income taxes (13,550 ) 90,081 (1,495 ) 239 75,275 Income tax (benefit) provision (773 ) 31,759 1,123 — 32,109 Equity in earnings of subsidiaries 55,943 — — (55,943 ) — Net income (loss) 43,166 58,322 (2,618 ) (55,704 ) 43,166 Other comprehensive income (loss) (20,787 ) (21,335 ) 548 20,787 (20,787 ) Comprehensive income (loss) $ 22,379 $ 36,987 $ (2,070 ) $ (34,917 ) $ 22,379 June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated Balance Sheets Assets Current assets Cash and cash equivalents $ 105,390 $ 5,109 $ 28,452 $ — $ 138,951 Accounts and notes receivable, net — 528,639 90,220 (9,647 ) 609,212 Merchandise inventories — 905,032 55,250 (2,310 ) 957,972 Other current assets 175 82,304 186,166 — 268,645 Total current assets 105,565 1,521,084 360,088 (11,957 ) 1,974,780 Property and equipment, net — 100,704 100,815 — 201,519 Goodwill, net — 180,006 238,360 — 418,366 Intangible assets, net — 12,693 76,906 — 89,599 Due from O&M and subsidiaries — 544,353 — (544,353 ) — Advances to and investment in consolidated subsidiaries 2,033,661 — — (2,033,661 ) — Other assets, net — 54,130 17,670 — 71,800 Total assets $ 2,139,226 $ 2,412,970 $ 793,839 $ (2,589,971 ) $ 2,756,064 Liabilities and equity Current liabilities Accounts payable $ — $ 723,773 $ 60,764 $ (8,567 ) $ 775,970 Accrued payroll and related liabilities — 17,718 10,550 — 28,268 Other current liabilities 8,028 109,397 122,462 — 239,887 Total current liabilities 8,028 850,888 193,776 (8,567 ) 1,044,125 Long-term debt, excluding current portion 544,410 4,032 18,513 — 566,955 Due to O&M and subsidiaries 590,491 — 66,325 (656,816 ) — Intercompany debt — 138,890 — (138,890 ) — Deferred income taxes — 62,673 21,827 — 84,500 Other liabilities — 57,867 6,320 — 64,187 Total liabilities 1,142,929 1,114,350 306,761 (804,273 ) 1,759,767 Equity Common stock 125,021 — — — 125,021 Paid-in capital 214,435 174,612 583,867 (758,479 ) 214,435 Retained earnings (deficit) 707,104 1,133,985 (56,503 ) (1,077,482 ) 707,104 Accumulated other comprehensive income (loss) (50,263 ) (9,977 ) (40,286 ) 50,263 (50,263 ) Total equity 996,297 1,298,620 487,078 (1,785,698 ) 996,297 Total liabilities and equity $ 2,139,226 $ 2,412,970 $ 793,839 $ (2,589,971 ) $ 2,756,064 December 31, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Balance Sheets Assets Current assets Cash and cash equivalents $ 103,284 $ 5,614 $ 52,122 $ — $ 161,020 Accounts and notes receivable, net — 507,673 89,895 (9,633 ) 587,935 Merchandise inventories — 883,232 59,930 (2,387 ) 940,775 Other current assets 104 72,683 212,183 — 284,970 Total current assets 103,388 1,469,202 414,130 (12,020 ) 1,974,700 Property and equipment, net — 103,219 105,711 — 208,930 Goodwill, net — 180,006 239,613 — 419,619 Intangible assets, net — 13,731 81,519 — 95,250 Due from O&M and subsidiaries — 518,473 — (518,473 ) — Advances to and investments in consolidated subsidiaries 1,967,176 — — (1,967,176 ) — Other assets, net — 57,409 17,868 — 75,277 Total assets $ 2,070,564 $ 2,342,040 $ 858,841 $ (2,497,669 ) $ 2,773,776 Liabilities and equity Current liabilities Accounts payable $ — $ 662,909 $ 56,073 $ (8,373 ) $ 710,609 Accrued payroll and related liabilities — 32,094 13,813 — 45,907 Deferred income taxes — — — — — Other current liabilities 6,924 109,137 191,012 — 307,073 Total current liabilities 6,924 804,140 260,898 (8,373 ) 1,063,589 Long-term debt, excluding current portion 543,982 4,527 19,986 — 568,495 Due to O&M and subsidiaries 527,068 — 70,089 (597,157 ) — Intercompany debt — 138,890 — (138,890 ) — Deferred income taxes — 67,562 18,764 — 86,326 Other liabilities — 57,573 5,203 — 62,776 Total liabilities 1,077,974 1,072,692 374,940 (744,420 ) 1,781,186 Equity — Common stock 125,606 — — — 125,606 Paid-in capital 211,943 174,612 583,873 (758,485 ) 211,943 Retained earnings (deficit) 706,866 1,104,787 (58,648 ) (1,046,139 ) 706,866 Accumulated other comprehensive income (loss) (51,825 ) (10,051 ) (41,324 ) 51,375 (51,825 ) Total equity 992,590 1,269,348 483,901 (1,753,249 ) 992,590 Total liabilities and equity $ 2,070,564 $ 2,342,040 $ 858,841 $ (2,497,669 ) $ 2,773,776 Six Months Ended June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Cash Flows Operating activities: Net income (loss) $ 51,851 $ 61,715 $ 4,693 $ (66,408 ) $ 51,851 Adjustments to reconcile net income to cash provided by (used for) operating activities: Equity in earnings of subsidiaries (66,485 ) — — 66,485 — Depreciation and amortization — 15,039 13,304 — 28,343 Share-based compensation expense — 5,969 — — 5,969 Provision for losses on accounts and notes receivable — (129 ) 102 — (27 ) Deferred income tax expense (benefit) — (2,071 ) — — (2,071 ) Changes in operating assets and liabilities: Accounts and notes receivable — (20,837 ) (9,228 ) 329 (29,736 ) Merchandise inventories — (21,800 ) 3,931 (78 ) (17,947 ) Accounts payable — 60,864 2,174 (328 ) 62,710 Net change in other assets and liabilities 1,033 (23,954 ) (33,678 ) — (56,599 ) Other, net 427 218 (500 ) — 145 Cash provided by (used for) operating activities (13,174 ) 75,014 (19,202 ) — 42,638 Investing activities: Additions to property and equipment — (5,502 ) (3,355 ) — (8,857 ) Additions to computer software and intangible assets — (1,700 ) (2,902 ) — (4,602 ) Proceeds from the sale of property and equipment — 18 4,547 — 4,565 Cash used for investing activities — (7,184 ) (1,710 ) — (8,894 ) Financing activities: Change in intercompany advances 71,002 (67,168 ) (3,834 ) — — Cash dividends paid (32,003 ) — — — (32,003 ) Repurchases of common stock (20,849 ) — — — (20,849 ) Excess tax benefits related to share-based compensation 598 — — — 598 Other, net (3,468 ) (1,167 ) (1,333 ) — (5,968 ) Cash provided by (used for) financing activities 15,280 (68,335 ) (5,167 ) — (58,222 ) Effect of exchange rate changes on cash and cash equivalents — — 2,409 — 2,409 Net increase (decrease) in cash and cash equivalents 2,106 (505 ) (23,670 ) — (22,069 ) Cash and cash equivalents at beginning of period 103,284 5,614 52,122 — 161,020 Cash and cash equivalents at end of period $ 105,390 $ 5,109 $ 28,452 $ — $ 138,951 Six months ended June 30, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Cash Flows Operating activities: Net income (loss) $ 43,166 $ 58,322 $ (2,618 ) $ (55,704 ) $ 43,166 Adjustments to reconcile net income to cash provided by (used for) operating activities: Equity in earnings of subsidiaries (55,943 ) — — 55,943 — Depreciation and amortization — 17,741 18,397 — 36,138 Share-based compensation expense — 5,048 — — 5,048 Provision for losses on accounts and notes receivable — (36 ) 77 — 41 Deferred income tax expense (benefit) — 2,376 616 — 2,992 Changes in operating assets and liabilities: Accounts and notes receivable — 35,566 (180 ) 6,236 41,622 Merchandise inventories — (35,481 ) 1,193 2,422 (31,866 ) Accounts payable — 146,622 5,798 (6,738 ) 145,682 Net change in other assets and liabilities (148 ) 14,338 (9,260 ) (2,159 ) 2,771 Other, net 429 726 41 — 1,196 Cash provided by (used for) operating activities (12,496 ) 245,222 14,064 — 246,790 Investing activities: Additions to property and equipment — (9,292 ) (2,717 ) — (12,009 ) Additions to computer software and intangible assets — (2,068 ) (8,748 ) — (10,816 ) Proceeds from the sale of property and equipment — 60 777 — 837 Cash used for investing activities — (11,300 ) (10,688 ) — (21,988 ) Financing activities: Change in intercompany advances 135,627 (155,951 ) 20,324 — — Change in bank overdraft — — 1,530 — 1,530 Repayment of revolving credit facility — (33,700 ) — — (33,700 ) Cash dividends paid (31,867 ) — — — (31,867 ) Repurchases of common stock (7,440 ) — — — (7,440 ) Excess tax benefits related to share-based compensation 457 — — — 457 Other, net (867 ) (1,544 ) (2,701 ) — (5,112 ) Cash provided by (used for) financing activities 95,910 (191,195 ) 19,153 — (76,132 ) Effect of exchange rate changes on cash and cash equivalents — — (4,473 ) — (4,473 ) Net increase (decrease) in cash and cash equivalents 83,414 42,727 18,056 — 144,197 Cash and cash equivalents at beginning of period 22,013 3,912 30,847 — 56,772 Cash and cash equivalents at end of period $ 105,427 $ 46,639 $ 48,903 $ — $ 200,969 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On January 1, 2016, we adopted ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs , which requires that our $3.8 million in debt issuance costs at June 30, 2016 related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. As a result of this adoption, we have also presented $4.1 million in debt issuance costs from our December 31, 2015 balance sheet in a manner that conforms to the new presentation. The adoption of this standard did not affect our results of operations or cash flows in either the current or prior interim or annual periods. In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases . The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted and should be applied using a modified retrospective approach. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this updated guidance include changes to simplify the Codification for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. We are in the process of evaluating the potential impacts of this new guidance on our consolidated financial statements. There has been no change in our significant accounting policies from those contained in our Annual Report on Form 10-K for the year ended December 31, 2015 . |
Basis of Presentation and Use25
Basis of Presentation and Use of Estimates (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of Owens & Minor, Inc. and the subsidiaries it controls (we, us, or our) and contain all adjustments (which are comprised only of normal recurring accruals and use of estimates) necessary to conform with U.S. generally accepted accounting principles (GAAP). All significant intercompany accounts and transactions have been eliminated. The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Recently, we have made certain changes to the leadership team, organizational structure, budgeting and financial reporting processes which drive changes to segment reporting. These changes align our operations into three distinct business units: Domestic, International and Clinical & Procedural Solutions (CPS). Domestic is our U.S.distribution, logistics and value-added services business, while International is our European distribution, logistics and value-added services business. CPS provides product-related solutions, including surgical and procedural kitting and sourcing. Beginning with the quarter ended March 31, 2016, we now report our financial results using this three segment structure and have recast prior year segment results on the same basis. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make assumptions and estimates that affect reported amounts and related disclosures. Actual results may differ from these estimates. |
Fair Value | The carrying amounts of cash and cash equivalents, accounts receivable, financing receivables, accounts payable and financing payables included in the consolidated balance sheets approximate fair value due to the short-term nature of these instruments. The fair value of long-term debt is estimated based on quoted market prices or dealer quotes for the identical liability when traded as an asset in an active market (Level 1) or, if quoted market prices or dealer quotes are not available, on the borrowing rates currently available for loans with similar terms, credit ratings and average remaining maturities (Level 2). We determine the fair value of our derivatives based on estimated amounts that would be received or paid to terminate the contracts at the reporting date based on current market prices for applicable currencies. See Note 7 for the fair value of long-term debt and Note 8 for the fair value of derivatives. |
Derivatives | When deemed appropriate, we use derivatives, primarily forward contracts, as a risk management tool to mitigate the potential impact of foreign currency exchange risk. At June 30, 2016, we did not have any derivatives outstanding. The total notional values of our foreign currency derivatives as of December 31, 2015 was $2.0 million . In 2016 and 2015, we did not have any derivatives designated as hedging instruments and all gains and losses resulting from changes in the fair value of derivative instruments were immediately recognized into earnings. At December 31, 2015, the fair value of our foreign currency contracts included in other assets on the consolidated balance sheet was $0.4 million . The impact from changes in the fair value of these foreign currency derivatives included in other operating expense was $0.1 million and $0.4 million for the three and six months ended June 30, 2016 |
Share Repurchase | We have elected to allocate any excess of share repurchase price over par value to retained earnings. |
Segment Reporting | We periodically evaluate our application of accounting guidance for reportable segments and disclose information about reportable segments based on the way management organizes the enterprise for making operating decisions and assessing performance. We report our business under three segments: Domestic, International and Clinical & Procedural Solutions (CPS). The Domestic segment includes our United States distribution, logistics and value-added services business. The International segment consists of our European distribution, logistics and value-added services business. CPS provides product-related solutions, including surgical and procedural kitting and sourcing. We evaluate the performance of our segments based on their operating earnings excluding acquisition-related and exit and realignment charges, certain purchase price fair value adjustments, and other substantive items that, either as a result of their nature or size, would not be expected to occur as part of our normal business operations on a regular basis. Segment assets exclude inter-segment account balances as we believe their inclusion would be misleading or not meaningful. We believe all inter-segment sales are at prices that approximate market. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill through June 30, 2016 : Domestic International CPS Consolidated Carrying amount of goodwill, December 31, 2015 $ 180,006 $ 23,426 $ 216,187 $ 419,619 Currency translation adjustments — (1,576 ) 323 (1,253 ) Carrying amount of goodwill, June 30, 2016 $ 180,006 $ 21,850 $ 216,510 $ 418,366 |
Intangible Assets | Intangible assets at June 30, 2016 , and December 31, 2015 , were as follows: June 30, 2016 December 31, 2015 Customer Relationships Other Intangibles Customer Other Gross intangible assets $ 120,784 $ 4,364 $ 121,888 $ 4,621 Accumulated amortization (34,201 ) (1,348 ) (29,872 ) (1,387 ) Net intangible assets $ 86,583 $ 3,016 $ 92,016 $ 3,234 |
Exit and Realignment Charges (T
Exit and Realignment Charges (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Accrued Exit Costs | Exit and realignment charges by segment for the three and six months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Domestic segment $ 4,894 $ (124 ) $ 12,968 $ 2,515 International segment 1,128 4,045 2,828 8,717 CPS segment — — 1,110 — Total exit and realignment charges $ 6,022 $ 3,921 $ 16,906 $ 11,232 |
Schedule of Restructuring and Related Costs Accrual Activity | The following table summarizes the activity related to exit and realignment cost accruals through June 30, 2016 and 2015: Lease Obligations Severance and Other Total Accrued exit and realignment costs, December 31, 2015 $ 486 $ 1,840 $ 2,326 Provision for exit and realignment activities — 9,895 9,895 Cash payments, net of sublease income (486 ) (1,287 ) (1,773 ) Accrued exit and realignment costs, March 31, 2016 — 10,448 10,448 Provision for exit and realignment activities 1,254 1,254 Cash payments, net of sublease income — (7,087 ) (7,087 ) Accrued exit and realignment costs, June 30, 2016 $ — $ 4,615 $ 4,615 Accrued exit and realignment costs, December 31, 2014 $ 3,575 $ 2,887 $ 6,462 Provision for exit and realignment activities 256 142 398 Cash payments, net of sublease income (385 ) (873 ) (1,258 ) Accrued exit and realignment costs, March 31, 2015 3,446 2,156 5,602 Provision for exit and realignment activities 572 392 964 Cash payments, net of sublease income (349 ) (1,171 ) (1,520 ) Accrued exit and realignment costs, June 30, 2015 $ 3,669 $ 1,377 $ 5,046 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Domestic Retirement Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Components of Net Periodic Benefit Cost for Domestic Retirement Plan | The components of net periodic benefit cost, which are included in distribution, selling and administrative expenses, for the three and six months ended June 30, 2016 and 2015 , were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Service cost $ 20 $ 32 $ 43 $ 65 Interest cost 510 464 1,015 929 Recognized net actuarial loss 413 401 822 802 Net periodic benefit cost $ 943 $ 897 $ 1,880 $ 1,796 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Net Income Per Common Share | The following summarizes the calculation of net income per common share attributable to common shareholders for the three and six months ended June 30, 2016 and 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2016 2015 2016 2015 Numerator: Net income $ 27,716 $ 24,226 $ 51,851 $ 43,166 Less: income allocated to unvested restricted shares (281 ) (195 ) (560 ) (359 ) Net income attributable to common shareholders - basic 27,435 24,031 51,291 42,807 Add: undistributed income attributable to unvested restricted shares - basic 72 42 131 63 Less: undistributed income attributable to unvested restricted shares - diluted (72 ) (42 ) (131 ) (63 ) Net income attributable to common shareholders - diluted $ 27,435 $ 24,031 $ 51,291 $ 42,807 Denominator: Weighted average shares outstanding - basic 61,502 62,226 61,588 62,281 Dilutive shares - stock options — — — 1 Weighted average shares outstanding - diluted 61,502 62,226 61,588 62,282 Net income per share attributable to common shareholders: Basic $ 0.45 $ 0.39 $ 0.83 $ 0.69 Diluted $ 0.45 $ 0.39 $ 0.83 $ 0.69 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table shows the changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2016 and 2015 : Retirement Plans Currency Translation Adjustments Other Total Accumulated other comprehensive income (loss), March 31, 2016 $ (10,244 ) $ (33,066 ) $ (96 ) $ (43,406 ) Other comprehensive income (loss) before reclassifications — (7,120 ) — (7,120 ) Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — (7,120 ) — (7,120 ) Amounts reclassified from accumulated other comprehensive income (loss) 413 — 18 431 Income tax (168 ) — — (168 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 245 — — 18 263 Other comprehensive income (loss) 245 (7,120 ) 18 (6,857 ) Accumulated other comprehensive income (loss), June 30, 2016 $ (9,999 ) $ (40,186 ) $ (78 ) $ (50,263 ) Accumulated other comprehensive income (loss), March 31, 2015 $ (10,065 ) $ (41,588 ) $ 7 $ (51,646 ) Other comprehensive income (loss) before reclassifications — 6,606 — 6,606 Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — 6,606 — 6,606 Amounts reclassified from accumulated other comprehensive income (loss) 401 — (8 ) 393 Income tax (141 ) — — (141 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 260 — (8 ) 252 Other comprehensive income (loss) 260 6,606 (8 ) 6,858 Accumulated other comprehensive income (loss), June 30, 2015 $ (9,805 ) $ (34,982 ) $ (1 ) $ (44,788 ) Retirement Plans Currency Translation Adjustments Other Total Accumulated other comprehensive income (loss), December 31, 2015 $ (10,482 ) $ (41,228 ) $ (115 ) $ (51,825 ) Other comprehensive income (loss) before reclassifications — 1,042 — 1,042 Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — 1,042 — 1,042 Amounts reclassified from accumulated other comprehensive income (loss) 822 — 37 859 Income tax (339 ) — — (339 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 483 — 37 520 Other comprehensive income (loss) 483 1,042 37 1,562 Accumulated other comprehensive income (loss), June 30, 2016 $ (9,999 ) $ (40,186 ) $ (78 ) $ (50,263 ) Accumulated other comprehensive income (loss), December 31, 2014 $ (10,323 ) $ (13,647 ) $ (31 ) $ (24,001 ) Other comprehensive income (loss) before reclassifications — (21,335 ) — (21,335 ) Income tax — — — — Other comprehensive income (loss) before reclassifications, net of tax — (21,335 ) — (21,335 ) Amounts reclassified from accumulated other comprehensive income (loss) 803 — 30 833 Income tax (285 ) — — (285 ) Amounts reclassified from accumulated other comprehensive income (loss), net of tax 518 — 30 548 Other comprehensive income (loss) 518 (21,335 ) 30 (20,787 ) Accumulated other comprehensive income (loss), June 30, 2015 $ (9,805 ) $ (34,982 ) $ (1 ) $ (44,788 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The following tables present financial information by segment: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net revenue: Segment net revenue Domestic $ 2,345,746 $ 2,279,725 $ 4,667,455 $ 4,529,430 International 88,559 92,856 172,110 188,367 CPS 134,964 135,714 276,317 265,359 Total segment net revenue $ 2,569,269 $ 2,508,295 $ 5,115,882 $ 4,983,156 Inter-segment revenue CPS (85,593 ) (86,128 ) (176,413 ) (169,793 ) Total inter-segment revenue (85,593 ) (86,128 ) (176,413 ) (169,793 ) Consolidated net revenue $ 2,483,676 $ 2,422,167 $ 4,939,469 $ 4,813,363 Operating earnings (loss): Domestic $ 43,451 $ 38,394 $ 85,169 $ 76,499 International 893 1,181 2,021 843 CPS 14,255 13,850 27,526 27,032 Inter-segment eliminations 207 142 (457 ) 84 Acquisition-related and exit and realignment charges (1) (6,752 ) (5,707 ) (17,235 ) (15,623 ) Consolidated operating earnings $ 52,054 $ 47,860 $ 97,024 $ 88,835 Depreciation and amortization: Domestic $ 7,497 $ 8,888 $ 15,038 $ 17,971 International 4,416 4,743 8,865 9,638 CPS 2,213 2,150 4,440 4,341 Consolidated depreciation and amortization $ 14,126 $ 15,781 $ 28,343 $ 31,950 Capital expenditures: Domestic $ 2,659 $ 3,349 $ 7,202 $ 11,358 International 2,860 7,875 4,830 10,790 CPS 880 35 1,427 677 Consolidated capital expenditures $ 6,399 $ 11,259 $ 13,459 $ 22,825 ( 1) The three and six months ended June 30, 2015 include $1.2 million and $4.2 million , respectively in accelerated amortization related to an information system that has been replaced in the International segment. |
Consolidated Total Assets | June 30, 2016 December 31, 2015 Total assets: Domestic $ 1,752,278 $ 1,728,345 International 442,097 464,003 CPS 422,738 420,408 Segment assets 2,617,113 2,612,756 Cash and cash equivalents 138,951 161,020 Consolidated total assets $ 2,756,064 $ 2,773,776 |
Condensed Consolidating Finan32
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement | The following tables present condensed consolidating financial information for: Owens & Minor, Inc. (O&M); the guarantors of Owens & Minor, Inc.’s 2021 Notes and 2024 Notes, on a combined basis; and the non-guarantor subsidiaries of the 2021 Notes and 2024 Notes, on a combined basis. The guarantor subsidiaries are 100% owned by Owens & Minor, Inc. Separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional, as well as joint and several, and we believe the condensed consolidating financial information is more meaningful in understanding the financial position, results of operations and cash flows of the guarantor subsidiaries. Three Months Ended June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Income Net revenue $ — $ 2,345,746 $ 176,010 $ (38,080 ) $ 2,483,676 Cost of goods sold — 2,129,586 92,660 (37,990 ) 2,184,256 Gross margin — 216,160 83,350 (90 ) 299,420 Distribution, selling and administrative expenses 357 166,047 76,510 — 242,914 Acquisition-related and exit and realignment charges — 5,249 1,503 6,752 Other operating income, net — (1,363 ) (937 ) — (2,300 ) Operating earnings (loss) (357 ) 46,227 6,274 (90 ) 52,054 Interest expense (income), net 6,903 (846 ) 708 — 6,765 Income (loss) before income taxes (7,260 ) 47,073 5,566 (90 ) 45,289 Income tax (benefit) provision — 14,555 3,018 — 17,573 Equity in earnings of subsidiaries 34,976 — — (34,976 ) — Net income (loss) 27,716 32,518 2,548 (35,066 ) 27,716 Other comprehensive income (loss) (6,857 ) 264 (7,120 ) 6,856 (6,857 ) Comprehensive income (loss) $ 20,859 $ 32,782 $ (4,572 ) $ (28,210 ) $ 20,859 Three Months Ended June 30, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Income Net revenue $ — $ 2,279,725 $ 178,844 $ (36,402 ) $ 2,422,167 Cost of goods sold — 2,064,515 95,570 (36,255 ) 2,123,830 Gross margin — 215,210 83,274 (147 ) 298,337 Distribution, selling and administrative expenses 626 169,258 77,074 — 246,958 Acquisition-related and exit and realignment charges — 256 5,451 — 5,707 Other operating income, net — (1,354 ) (834 ) — (2,188 ) Operating earnings (loss) (626 ) 47,050 1,583 (147 ) 47,860 Interest expense (income), net 6,938 (233 ) (25 ) — 6,680 Income (loss) before income taxes (7,564 ) 47,283 1,608 (147 ) 41,180 Income tax (benefit) provision — 16,973 (19 ) — 16,954 Equity in earnings of subsidiaries 31,790 — — (31,790 ) — Net income (loss) 24,226 30,310 1,627 (31,937 ) 24,226 Other comprehensive income (loss) 6,858 (21,839 ) 28,696 (6,857 ) 6,858 Comprehensive income (loss) $ 31,084 $ 8,471 $ 30,323 $ (38,794 ) $ 31,084 Six Months Ended June 30, 2016 Owens & Guarantor Non-guarantor Eliminations Consolidated Statements of Income Net revenue $ — $ 4,667,454 $ 348,110 $ (76,095 ) $ 4,939,469 Cost of goods sold — 4,234,851 184,734 (76,172 ) 4,343,413 Gross margin — 432,603 163,376 77 596,056 Distribution, selling and administrative expenses 891 335,357 149,391 — 485,639 Acquisition-related and exit and realignment charges — 13,652 3,583 — 17,235 Other operating income, net — (2,747 ) (1,095 ) — (3,842 ) Operating earnings (loss) (891 ) 86,341 11,497 77 97,024 Interest expense (income), net 13,743 (1,475 ) 1,286 — 13,554 Income (loss) before income taxes (14,634 ) 87,816 10,211 77 83,470 Income tax (benefit) provision — 26,101 5,518 — 31,619 Equity in earnings of subsidiaries 66,485 — — (66,485 ) — Net income (loss) 51,851 61,715 4,693 (66,408 ) 51,851 Other comprehensive income (loss) 1,562 521 1,041 (1,562 ) 1,562 Comprehensive income (loss) $ 53,413 $ 62,236 $ 5,734 $ (67,970 ) $ 53,413 Six Months Ended June 30, 2015 Owens & Guarantor Non-guarantor Eliminations Consolidated Statements of Income Net revenue $ — $ 4,529,430 $ 360,204 $ (76,271 ) $ 4,813,363 Cost of goods sold — 4,098,327 195,608 (76,510 ) 4,217,425 Gross margin — 431,103 164,596 239 595,938 Distribution, selling and administrative expenses 665 338,939 157,048 — 496,652 Acquisition-related and exit and realignment charges — 3,833 11,790 — 15,623 Other operating income, net — (2,331 ) (2,841 ) — (5,172 ) Operating earnings (loss) (665 ) 90,662 (1,401 ) 239 88,835 Interest expense (income), net 12,885 581 94 — 13,560 Income (loss) before income taxes (13,550 ) 90,081 (1,495 ) 239 75,275 Income tax (benefit) provision (773 ) 31,759 1,123 — 32,109 Equity in earnings of subsidiaries 55,943 — — (55,943 ) — Net income (loss) 43,166 58,322 (2,618 ) (55,704 ) 43,166 Other comprehensive income (loss) (20,787 ) (21,335 ) 548 20,787 (20,787 ) Comprehensive income (loss) $ 22,379 $ 36,987 $ (2,070 ) $ (34,917 ) $ 22,379 |
Condensed Consolidating Balance Sheets | June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non- guarantor Subsidiaries Eliminations Consolidated Balance Sheets Assets Current assets Cash and cash equivalents $ 105,390 $ 5,109 $ 28,452 $ — $ 138,951 Accounts and notes receivable, net — 528,639 90,220 (9,647 ) 609,212 Merchandise inventories — 905,032 55,250 (2,310 ) 957,972 Other current assets 175 82,304 186,166 — 268,645 Total current assets 105,565 1,521,084 360,088 (11,957 ) 1,974,780 Property and equipment, net — 100,704 100,815 — 201,519 Goodwill, net — 180,006 238,360 — 418,366 Intangible assets, net — 12,693 76,906 — 89,599 Due from O&M and subsidiaries — 544,353 — (544,353 ) — Advances to and investment in consolidated subsidiaries 2,033,661 — — (2,033,661 ) — Other assets, net — 54,130 17,670 — 71,800 Total assets $ 2,139,226 $ 2,412,970 $ 793,839 $ (2,589,971 ) $ 2,756,064 Liabilities and equity Current liabilities Accounts payable $ — $ 723,773 $ 60,764 $ (8,567 ) $ 775,970 Accrued payroll and related liabilities — 17,718 10,550 — 28,268 Other current liabilities 8,028 109,397 122,462 — 239,887 Total current liabilities 8,028 850,888 193,776 (8,567 ) 1,044,125 Long-term debt, excluding current portion 544,410 4,032 18,513 — 566,955 Due to O&M and subsidiaries 590,491 — 66,325 (656,816 ) — Intercompany debt — 138,890 — (138,890 ) — Deferred income taxes — 62,673 21,827 — 84,500 Other liabilities — 57,867 6,320 — 64,187 Total liabilities 1,142,929 1,114,350 306,761 (804,273 ) 1,759,767 Equity Common stock 125,021 — — — 125,021 Paid-in capital 214,435 174,612 583,867 (758,479 ) 214,435 Retained earnings (deficit) 707,104 1,133,985 (56,503 ) (1,077,482 ) 707,104 Accumulated other comprehensive income (loss) (50,263 ) (9,977 ) (40,286 ) 50,263 (50,263 ) Total equity 996,297 1,298,620 487,078 (1,785,698 ) 996,297 Total liabilities and equity $ 2,139,226 $ 2,412,970 $ 793,839 $ (2,589,971 ) $ 2,756,064 December 31, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Balance Sheets Assets Current assets Cash and cash equivalents $ 103,284 $ 5,614 $ 52,122 $ — $ 161,020 Accounts and notes receivable, net — 507,673 89,895 (9,633 ) 587,935 Merchandise inventories — 883,232 59,930 (2,387 ) 940,775 Other current assets 104 72,683 212,183 — 284,970 Total current assets 103,388 1,469,202 414,130 (12,020 ) 1,974,700 Property and equipment, net — 103,219 105,711 — 208,930 Goodwill, net — 180,006 239,613 — 419,619 Intangible assets, net — 13,731 81,519 — 95,250 Due from O&M and subsidiaries — 518,473 — (518,473 ) — Advances to and investments in consolidated subsidiaries 1,967,176 — — (1,967,176 ) — Other assets, net — 57,409 17,868 — 75,277 Total assets $ 2,070,564 $ 2,342,040 $ 858,841 $ (2,497,669 ) $ 2,773,776 Liabilities and equity Current liabilities Accounts payable $ — $ 662,909 $ 56,073 $ (8,373 ) $ 710,609 Accrued payroll and related liabilities — 32,094 13,813 — 45,907 Deferred income taxes — — — — — Other current liabilities 6,924 109,137 191,012 — 307,073 Total current liabilities 6,924 804,140 260,898 (8,373 ) 1,063,589 Long-term debt, excluding current portion 543,982 4,527 19,986 — 568,495 Due to O&M and subsidiaries 527,068 — 70,089 (597,157 ) — Intercompany debt — 138,890 — (138,890 ) — Deferred income taxes — 67,562 18,764 — 86,326 Other liabilities — 57,573 5,203 — 62,776 Total liabilities 1,077,974 1,072,692 374,940 (744,420 ) 1,781,186 Equity — Common stock 125,606 — — — 125,606 Paid-in capital 211,943 174,612 583,873 (758,485 ) 211,943 Retained earnings (deficit) 706,866 1,104,787 (58,648 ) (1,046,139 ) 706,866 Accumulated other comprehensive income (loss) (51,825 ) (10,051 ) (41,324 ) 51,375 (51,825 ) Total equity 992,590 1,269,348 483,901 (1,753,249 ) 992,590 Total liabilities and equity $ 2,070,564 $ 2,342,040 $ 858,841 $ (2,497,669 ) $ 2,773,776 |
Condensed Consolidating Statement Of Cash Flows | Six Months Ended June 30, 2016 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Cash Flows Operating activities: Net income (loss) $ 51,851 $ 61,715 $ 4,693 $ (66,408 ) $ 51,851 Adjustments to reconcile net income to cash provided by (used for) operating activities: Equity in earnings of subsidiaries (66,485 ) — — 66,485 — Depreciation and amortization — 15,039 13,304 — 28,343 Share-based compensation expense — 5,969 — — 5,969 Provision for losses on accounts and notes receivable — (129 ) 102 — (27 ) Deferred income tax expense (benefit) — (2,071 ) — — (2,071 ) Changes in operating assets and liabilities: Accounts and notes receivable — (20,837 ) (9,228 ) 329 (29,736 ) Merchandise inventories — (21,800 ) 3,931 (78 ) (17,947 ) Accounts payable — 60,864 2,174 (328 ) 62,710 Net change in other assets and liabilities 1,033 (23,954 ) (33,678 ) — (56,599 ) Other, net 427 218 (500 ) — 145 Cash provided by (used for) operating activities (13,174 ) 75,014 (19,202 ) — 42,638 Investing activities: Additions to property and equipment — (5,502 ) (3,355 ) — (8,857 ) Additions to computer software and intangible assets — (1,700 ) (2,902 ) — (4,602 ) Proceeds from the sale of property and equipment — 18 4,547 — 4,565 Cash used for investing activities — (7,184 ) (1,710 ) — (8,894 ) Financing activities: Change in intercompany advances 71,002 (67,168 ) (3,834 ) — — Cash dividends paid (32,003 ) — — — (32,003 ) Repurchases of common stock (20,849 ) — — — (20,849 ) Excess tax benefits related to share-based compensation 598 — — — 598 Other, net (3,468 ) (1,167 ) (1,333 ) — (5,968 ) Cash provided by (used for) financing activities 15,280 (68,335 ) (5,167 ) — (58,222 ) Effect of exchange rate changes on cash and cash equivalents — — 2,409 — 2,409 Net increase (decrease) in cash and cash equivalents 2,106 (505 ) (23,670 ) — (22,069 ) Cash and cash equivalents at beginning of period 103,284 5,614 52,122 — 161,020 Cash and cash equivalents at end of period $ 105,390 $ 5,109 $ 28,452 $ — $ 138,951 Six months ended June 30, 2015 Owens & Minor, Inc. Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Consolidated Statements of Cash Flows Operating activities: Net income (loss) $ 43,166 $ 58,322 $ (2,618 ) $ (55,704 ) $ 43,166 Adjustments to reconcile net income to cash provided by (used for) operating activities: Equity in earnings of subsidiaries (55,943 ) — — 55,943 — Depreciation and amortization — 17,741 18,397 — 36,138 Share-based compensation expense — 5,048 — — 5,048 Provision for losses on accounts and notes receivable — (36 ) 77 — 41 Deferred income tax expense (benefit) — 2,376 616 — 2,992 Changes in operating assets and liabilities: Accounts and notes receivable — 35,566 (180 ) 6,236 41,622 Merchandise inventories — (35,481 ) 1,193 2,422 (31,866 ) Accounts payable — 146,622 5,798 (6,738 ) 145,682 Net change in other assets and liabilities (148 ) 14,338 (9,260 ) (2,159 ) 2,771 Other, net 429 726 41 — 1,196 Cash provided by (used for) operating activities (12,496 ) 245,222 14,064 — 246,790 Investing activities: Additions to property and equipment — (9,292 ) (2,717 ) — (12,009 ) Additions to computer software and intangible assets — (2,068 ) (8,748 ) — (10,816 ) Proceeds from the sale of property and equipment — 60 777 — 837 Cash used for investing activities — (11,300 ) (10,688 ) — (21,988 ) Financing activities: Change in intercompany advances 135,627 (155,951 ) 20,324 — — Change in bank overdraft — — 1,530 — 1,530 Repayment of revolving credit facility — (33,700 ) — — (33,700 ) Cash dividends paid (31,867 ) — — — (31,867 ) Repurchases of common stock (7,440 ) — — — (7,440 ) Excess tax benefits related to share-based compensation 457 — — — 457 Other, net (867 ) (1,544 ) (2,701 ) — (5,112 ) Cash provided by (used for) financing activities 95,910 (191,195 ) 19,153 — (76,132 ) Effect of exchange rate changes on cash and cash equivalents — — (4,473 ) — (4,473 ) Net increase (decrease) in cash and cash equivalents 83,414 42,727 18,056 — 144,197 Cash and cash equivalents at beginning of period 22,013 3,912 30,847 — 56,772 Cash and cash equivalents at end of period $ 105,427 $ 46,639 $ 48,903 $ — $ 200,969 |
Basis of Presentation and Use33
Basis of Presentation and Use of Estimates (Details) | 6 Months Ended |
Jun. 30, 2016segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Financing Receivables and Pay34
Financing Receivables and Payables - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivables and Payables [Line Items] | ||
Other current liabilities | $ 239,887 | $ 307,073 |
Financing Receivables | ||
Financing Receivables and Payables [Line Items] | ||
Other current assets | 165,900 | 198,500 |
Financing Payables | ||
Financing Receivables and Payables [Line Items] | ||
Other current liabilities | $ 87,200 | $ 148,500 |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($)segment | |
Goodwill [Line Items] | |
Number of reportable segments | segment | 3 |
Goodwill impairment | $ 0 |
Goodwill [Roll Forward] | |
Carrying amount of goodwill, December 31, 2015 | 419,619,000 |
Currency translation adjustments | (1,253,000) |
Carrying amount of goodwill, June 30, 2016 | 418,366,000 |
Domestic | |
Goodwill [Roll Forward] | |
Carrying amount of goodwill, December 31, 2015 | 180,006,000 |
Currency translation adjustments | 0 |
Carrying amount of goodwill, June 30, 2016 | 180,006,000 |
International | |
Goodwill [Roll Forward] | |
Carrying amount of goodwill, December 31, 2015 | 23,426,000 |
Currency translation adjustments | (1,576,000) |
Carrying amount of goodwill, June 30, 2016 | 21,850,000 |
CPS | |
Goodwill [Roll Forward] | |
Carrying amount of goodwill, December 31, 2015 | 216,187,000 |
Currency translation adjustments | 323,000 |
Carrying amount of goodwill, June 30, 2016 | $ 216,510,000 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 89,599 | $ 95,250 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 120,784 | 121,888 |
Accumulated amortization | (34,201) | (29,872) |
Net intangible assets | 86,583 | 92,016 |
Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross intangible assets | 4,364 | 4,621 |
Accumulated amortization | (1,348) | (1,387) |
Net intangible assets | $ 3,016 | $ 3,234 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 89,599 | $ 89,599 | $ 95,250 | ||
Amortization expense for intangible assets | 2,200 | $ 2,400 | 4,500 | $ 4,900 | |
Estimated amortization expense for the remainder of 2016 | 4,600 | 4,600 | |||
Estimated amortization expense for 2017 | 9,900 | 9,900 | |||
Estimated amortization expense for 2018 | 9,200 | 9,200 | |||
Estimated amortization expense for 2019 | 9,200 | 9,200 | |||
Estimated amortization expense for 2020 | 9,000 | 9,000 | |||
Estimated amortization expense for 2021 | 8,600 | 8,600 | |||
Domestic | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | 12,700 | 12,700 | |||
International | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | 12,900 | 12,900 | |||
CPS | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 64,000 | $ 64,000 |
Exit and Realignment Charges -
Exit and Realignment Charges - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Total exit and realignment charges | $ 6,022 | $ 3,921 | $ 16,906 | $ 11,232 | ||
Charges expensed as incurred | 4,700 | $ 1,000 | 2,900 | $ 6,900 | ||
Domestic | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total exit and realignment charges | 4,894 | (124) | 12,968 | 2,515 | ||
International | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total exit and realignment charges | 1,128 | 4,045 | 2,828 | 8,717 | ||
CPS | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Total exit and realignment charges | 0 | 0 | $ 1,110 | $ 0 | ||
Accelerated Amortization | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | 1,200 | 3,000 | ||||
Property/Facility Related costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | 800 | |||||
Information System Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | 900 | 500 | 700 | 300 | ||
Consulting Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | 3,200 | 400 | ||||
Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | $ 600 | $ 100 | $ 200 | 500 | ||
Facility Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | 1,800 | |||||
Labor Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges expensed as incurred | $ 1,300 |
Accrual for Exit and Realignmen
Accrual for Exit and Realignment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | |
Restructuring Reserve [Roll Forward] | |||||
Accrued exit and realignment costs, beginning of period | $ 10,448 | $ 2,326 | $ 5,602 | $ 6,462 | $ 2,326 |
Provision for exit and realignment activities | 1,254 | 9,895 | 964 | 398 | |
Cash payments, net of sublease income | (7,087) | (1,773) | (1,520) | (1,258) | |
Accrued exit and realignment costs, end of period | 4,615 | 10,448 | 5,046 | 5,602 | 4,615 |
Lease Obligations | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrued exit and realignment costs, beginning of period | 0 | 486 | 3,446 | 3,575 | 486 |
Provision for exit and realignment activities | 0 | 572 | 256 | ||
Cash payments, net of sublease income | 0 | (486) | (349) | (385) | |
Accrued exit and realignment costs, end of period | 0 | 0 | 3,669 | 3,446 | 0 |
Severance and Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrued exit and realignment costs, beginning of period | 10,448 | 1,840 | 2,156 | 2,887 | 1,840 |
Provision for exit and realignment activities | 1,254 | 9,895 | 392 | 142 | 11,200 |
Cash payments, net of sublease income | (7,087) | (1,287) | (1,171) | (873) | |
Accrued exit and realignment costs, end of period | $ 4,615 | $ 10,448 | $ 1,377 | $ 2,156 | $ 4,615 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health and welfare plans expense | $ 0.4 | $ 0.5 | $ 0.8 | $ 1 |
Retirement Plans - Components o
Retirement Plans - Components of Net Periodic Benefit Cost (Detail) - Domestic Retirement Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 20 | $ 32 | $ 43 | $ 65 |
Interest cost | 510 | 464 | 1,015 | 929 |
Recognized net actuarial loss | 413 | 401 | 822 | 802 |
Net periodic benefit cost | $ 943 | $ 897 | $ 1,880 | $ 1,796 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2016USD ($)extension | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Long-term Line of Credit | $ 0 | |
Amount available for borrowing | $ 445,000,000 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Rate of interest discounted | 0.30% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 450,000,000 | |
Number of extensions | extension | 2 | |
Term of each extension (in years) | 1 year | |
Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee charged on unused portion of facility | 0.125% | |
Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee charged on unused portion of facility | 0.25% | |
Revolving Credit Facility, Additional Borrowing Capacity | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 200,000,000 | |
3.875% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 275,000,000 | |
Interest rate of debt | 3.875% | |
Debt issued, percent of par | 99.50% | |
Effective yield (percent) | 3.951% | |
4.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 275,000,000 | |
Interest rate of debt | 4.375% | |
Debt issued, percent of par | 99.60% | |
Effective yield (percent) | 4.422% | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes redemption price description | We may redeem the Senior Notes, in whole or in part, at a redemption price of the greater of 100% of the principal amount of the Senior Notes or the present value of remaining scheduled payments of principal and interest discounted at the applicable Treasury Rate plus 0.25%. | |
2021 and 2024 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior notes redemption price (percent) | 100.00% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 5,000,000 | |
European Lease Agreement | Replaced Line of Credit | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 1,200,000 | $ 1,200,000 |
LIBOR | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.375% | |
Estimated fair value | 3.875% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding, fair value | $ 283,200,000 | 273,700,000 |
Estimated fair value | 4.375% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding, fair value | $ 280,900,000 | $ 272,800,000 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Notional value | $ 0 | $ 0 | $ 2,000,000 | ||
Foreign Exchange Contract | Other Assets | |||||
Derivative [Line Items] | |||||
Fair value of foreign currency contracts included in other assets | 400,000 | ||||
Foreign Exchange Contract | Other Income | |||||
Derivative [Line Items] | |||||
Impact from changes in fair value of derivatives | (100,000) | $ (500,000) | (400,000) | $ 300,000 | |
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional value | $ 0 | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 38.80% | 41.20% | 37.90% | 42.70% | |
Liability for unrecognized tax benefit | $ 9 | $ 9 | $ 7.7 | ||
Unrecognized tax benefit highly certain | $ 4.4 | $ 4.4 |
Summary of Calculation of Net I
Summary of Calculation of Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income | $ 27,716 | $ 24,226 | $ 51,851 | $ 43,166 |
Less: income allocated to unvested restricted shares | (281) | (195) | (560) | (359) |
Net income attributable to common shareholders - basic | 27,435 | 24,031 | 51,291 | 42,807 |
Add: undistributed income attributable to unvested restricted shares - basic | 72 | 42 | 131 | 63 |
Less: undistributed income attributable to unvested restricted shares - diluted | (72) | (42) | (131) | (63) |
Net income attributable to common shareholders - diluted | $ 27,435 | $ 24,031 | $ 51,291 | $ 42,807 |
Denominator: | ||||
Weighted average shares outstanding - basic (in shares) | 61,502 | 62,226 | 61,588 | 62,281 |
Dilutive shares - stock options (in shares) | 0 | 0 | 0 | 1 |
Weighted average shares outstanding - diluted (in shares) | 61,502 | 62,226 | 61,588 | 62,282 |
Net income per share attributable to common shareholders: | ||||
Basic (in usd per share) | $ 0.45 | $ 0.39 | $ 0.83 | $ 0.69 |
Diluted (in usd per share) | $ 0.45 | $ 0.39 | $ 0.83 | $ 0.69 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, shares in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Equity [Abstract] | |
Share repurchase program, authorized amount | $ 100,000,000 |
Stock repurchase program, term (in years) | 3 years |
Stock repurchase program, expiring date | 2017-02 |
Stock repurchased and retired, shares | shares | 0.6 |
Stock repurchased and retired, value | $ 20,800,000 |
Stock repurchase program, average price in USD per share | $ / shares | $ 36.25 |
Stock repurchase program, remaining authorized repurchase amount | $ 49,200,000 |
Changes in Accumulated Income L
Changes in Accumulated Income Loss by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss),Beginning Balance | $ (43,406) | $ (51,646) | $ (51,825) | $ (24,001) |
Other comprehensive income (loss) before reclassifications | (7,120) | 6,606 | 1,042 | (21,335) |
Income tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | (7,120) | 6,606 | 1,042 | (21,335) |
Amounts reclassified from accumulated other comprehensive income (loss) | 431 | 393 | 859 | 833 |
Income tax | (168) | (141) | (339) | (285) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 263 | 252 | 520 | 548 |
Total other comprehensive income (loss), net of tax | (6,857) | 6,858 | 1,562 | (20,787) |
Accumulated other comprehensive income (loss),Ending Balance | (50,263) | (44,788) | (50,263) | (44,788) |
Retirement Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss),Beginning Balance | (10,244) | (10,065) | (10,482) | (10,323) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Income tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 413 | 401 | 822 | 803 |
Income tax | (168) | (141) | (339) | (285) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 245 | 260 | 483 | 518 |
Total other comprehensive income (loss), net of tax | 245 | 260 | 483 | 518 |
Accumulated other comprehensive income (loss),Ending Balance | (9,999) | (9,805) | (9,999) | (9,805) |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss),Beginning Balance | (33,066) | (41,588) | (41,228) | (13,647) |
Other comprehensive income (loss) before reclassifications | (7,120) | 6,606 | 1,042 | (21,335) |
Income tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | (7,120) | 6,606 | 1,042 | (21,335) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Income tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (7,120) | 6,606 | 1,042 | (21,335) |
Accumulated other comprehensive income (loss),Ending Balance | (40,186) | (34,982) | (40,186) | (34,982) |
Other | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss),Beginning Balance | (96) | 7 | (115) | (31) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 18 | (8) | 37 | 30 |
Income tax | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 18 | (8) | 37 | 30 |
Total other comprehensive income (loss), net of tax | 18 | (8) | 37 | 30 |
Accumulated other comprehensive income (loss),Ending Balance | $ (78) | $ (1) | $ (78) | $ (1) |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Amounts reclassified out of accumulated other comprehensive income related to defined benefit pension plans as component of net periodic benefit cost, actuarial net loss | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.8 |
Financial Information by Segmen
Financial Information by Segment (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Net revenue | $ 2,483,676 | $ 2,422,167 | $ 4,939,469 | $ 4,813,363 |
Operating earnings (loss) | 52,054 | 47,860 | 97,024 | 88,835 |
Depreciation and amortization | 14,126 | 15,781 | 28,343 | 36,138 |
Depreciation & Amortization, excluding accelerated | 31,950 | |||
Acquisition-related and exit and realignment charges | (6,752) | (5,707) | (17,235) | (15,623) |
Capital expenditures | 6,399 | 11,259 | 13,459 | 22,825 |
Accelerated Amortization | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Acquisition-related and exit and realignment charges | (1,200) | (4,200) | ||
Operating Segments | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 2,569,269 | 2,508,295 | 5,115,882 | 4,983,156 |
Operating Segments | Domestic | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 2,345,746 | 2,279,725 | 4,667,455 | 4,529,430 |
Operating earnings (loss) | 43,451 | 38,394 | 85,169 | 76,499 |
Depreciation and amortization | 7,497 | 8,888 | 15,038 | 17,971 |
Capital expenditures | 2,659 | 3,349 | 7,202 | 11,358 |
Operating Segments | International | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 88,559 | 92,856 | 172,110 | 188,367 |
Operating earnings (loss) | 893 | 1,181 | 2,021 | 843 |
Depreciation and amortization | 4,416 | 4,743 | 8,865 | |
Depreciation & Amortization, excluding accelerated | 9,638 | |||
Capital expenditures | 2,860 | 7,875 | 4,830 | 10,790 |
Operating Segments | CPS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | 134,964 | 135,714 | 276,317 | 265,359 |
Operating earnings (loss) | 14,255 | 13,850 | 27,526 | 27,032 |
Depreciation and amortization | 2,213 | 2,150 | 4,440 | 4,341 |
Capital expenditures | 880 | 35 | 1,427 | 677 |
Intersegment Eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | (85,593) | (86,128) | (176,413) | (169,793) |
Operating earnings (loss) | 207 | 142 | (457) | 84 |
Intersegment Eliminations | CPS | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenue | (85,593) | (86,128) | (176,413) | (169,793) |
Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Acquisition-related and exit and realignment charges | $ (6,752) | $ (5,707) | $ (17,235) | $ (15,623) |
Consolidated Total Assets (Deta
Consolidated Total Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and cash equivalents | $ 138,951 | $ 161,020 | $ 200,969 | $ 56,772 |
Assets | 2,756,064 | 2,773,776 | ||
Operating Segments | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 2,617,113 | 2,612,756 | ||
Operating Segments | Domestic | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 1,752,278 | 1,728,345 | ||
Operating Segments | International | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 442,097 | 464,003 | ||
Operating Segments | CPS | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 422,738 | 420,408 | ||
Segment Reconciling Items | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Cash and cash equivalents | $ 138,951 | $ 161,020 |
Condensed Consolidating Finan51
Condensed Consolidating Financial Information (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Percentage of ownership | 100.00% |
Condensed Consolidating Finan52
Condensed Consolidating Financial Information (Condensed Consolidating Statements Of Income) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenue | $ 2,483,676 | $ 2,422,167 | $ 4,939,469 | $ 4,813,363 |
Cost of goods sold | 2,184,256 | 2,123,830 | 4,343,413 | 4,217,425 |
Gross margin | 299,420 | 298,337 | 596,056 | 595,938 |
Distribution, selling, and administrative expenses | 242,914 | 246,958 | 485,639 | 496,652 |
Acquisition-related and exit and realignment charges | 6,752 | 5,707 | 17,235 | 15,623 |
Other operating income, net | (2,300) | (2,188) | (3,842) | (5,172) |
Operating earnings | 52,054 | 47,860 | 97,024 | 88,835 |
Interest expense (income), net | 6,765 | 6,680 | 13,554 | 13,560 |
Income before income taxes | 45,289 | 41,180 | 83,470 | 75,275 |
Income tax (benefit) provision | 17,573 | 16,954 | 31,619 | 32,109 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 27,716 | 24,226 | 51,851 | 43,166 |
Other comprehensive income (loss) | (6,857) | 6,858 | 1,562 | (20,787) |
Comprehensive income | 20,859 | 31,084 | 53,413 | 22,379 |
Owens & Minor, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenue | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Gross margin | 0 | 0 | 0 | 0 |
Distribution, selling, and administrative expenses | 357 | 626 | 891 | 665 |
Acquisition-related and exit and realignment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating earnings | (357) | (626) | (891) | (665) |
Interest expense (income), net | 6,903 | 6,938 | 13,743 | 12,885 |
Income before income taxes | (7,260) | (7,564) | (14,634) | (13,550) |
Income tax (benefit) provision | 0 | 0 | 0 | (773) |
Equity in earnings of subsidiaries | 34,976 | 31,790 | 66,485 | 55,943 |
Net income | 27,716 | 24,226 | 51,851 | 43,166 |
Other comprehensive income (loss) | (6,857) | 6,858 | 1,562 | (20,787) |
Comprehensive income | 20,859 | 31,084 | 53,413 | 22,379 |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenue | 2,345,746 | 2,279,725 | 4,667,454 | 4,529,430 |
Cost of goods sold | 2,129,586 | 2,064,515 | 4,234,851 | 4,098,327 |
Gross margin | 216,160 | 215,210 | 432,603 | 431,103 |
Distribution, selling, and administrative expenses | 166,047 | 169,258 | 335,357 | 338,939 |
Acquisition-related and exit and realignment charges | 5,249 | 256 | 13,652 | 3,833 |
Other operating income, net | (1,363) | (1,354) | (2,747) | (2,331) |
Operating earnings | 46,227 | 47,050 | 86,341 | 90,662 |
Interest expense (income), net | (846) | (233) | (1,475) | 581 |
Income before income taxes | 47,073 | 47,283 | 87,816 | 90,081 |
Income tax (benefit) provision | 14,555 | 16,973 | 26,101 | 31,759 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 32,518 | 30,310 | 61,715 | 58,322 |
Other comprehensive income (loss) | 264 | (21,839) | 521 | (21,335) |
Comprehensive income | 32,782 | 8,471 | 62,236 | 36,987 |
Non-guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenue | 176,010 | 178,844 | 348,110 | 360,204 |
Cost of goods sold | 92,660 | 95,570 | 184,734 | 195,608 |
Gross margin | 83,350 | 83,274 | 163,376 | 164,596 |
Distribution, selling, and administrative expenses | 76,510 | 77,074 | 149,391 | 157,048 |
Acquisition-related and exit and realignment charges | 1,503 | 5,451 | 3,583 | 11,790 |
Other operating income, net | (937) | (834) | (1,095) | (2,841) |
Operating earnings | 6,274 | 1,583 | 11,497 | (1,401) |
Interest expense (income), net | 708 | (25) | 1,286 | 94 |
Income before income taxes | 5,566 | 1,608 | 10,211 | (1,495) |
Income tax (benefit) provision | 3,018 | (19) | 5,518 | 1,123 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 2,548 | 1,627 | 4,693 | (2,618) |
Other comprehensive income (loss) | (7,120) | 28,696 | 1,041 | 548 |
Comprehensive income | (4,572) | 30,323 | 5,734 | (2,070) |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenue | (38,080) | (36,402) | (76,095) | (76,271) |
Cost of goods sold | (37,990) | (36,255) | (76,172) | (76,510) |
Gross margin | (90) | (147) | 77 | 239 |
Distribution, selling, and administrative expenses | 0 | 0 | 0 | 0 |
Acquisition-related and exit and realignment charges | 0 | 0 | 0 | |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating earnings | (90) | (147) | 77 | 239 |
Interest expense (income), net | 0 | 0 | 0 | 0 |
Income before income taxes | (90) | (147) | 77 | 239 |
Income tax (benefit) provision | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | (34,976) | (31,790) | (66,485) | (55,943) |
Net income | (35,066) | (31,937) | (66,408) | (55,704) |
Other comprehensive income (loss) | 6,856 | (6,857) | (1,562) | 20,787 |
Comprehensive income | $ (28,210) | $ (38,794) | $ (67,970) | $ (34,917) |
Condensed Consolidating Finan53
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Current assets | ||||||
Cash and cash equivalents | $ 138,951 | $ 161,020 | $ 200,969 | $ 56,772 | ||
Accounts and notes receivable, net | 609,212 | 587,935 | ||||
Merchandise inventories | 957,972 | 940,775 | ||||
Other current assets | 268,645 | 284,970 | ||||
Total current assets | 1,974,780 | 1,974,700 | ||||
Property and equipment, net | 201,519 | 208,930 | ||||
Goodwill, net | 418,366 | 419,619 | ||||
Intangible assets, net | 89,599 | 95,250 | ||||
Due from O&M and subsidiaries | 0 | 0 | ||||
Advances to and investment in consolidated subsidiaries | 0 | 0 | ||||
Other assets, net | 71,800 | 75,277 | ||||
Total assets | 2,756,064 | 2,773,776 | ||||
Current liabilities | ||||||
Accounts payable | 775,970 | 710,609 | ||||
Accrued payroll and related liabilities | 28,268 | 45,907 | ||||
Deferred income taxes | 0 | |||||
Other current liabilities | 239,887 | 307,073 | ||||
Total current liabilities | 1,044,125 | 1,063,589 | ||||
Long-term debt, excluding current portion | 566,955 | 568,495 | ||||
Due to O&M and subsidiaries | 0 | 0 | ||||
Intercompany debt | 0 | 0 | ||||
Deferred income taxes | 84,500 | 86,326 | ||||
Other liabilities | 64,187 | 62,776 | ||||
Total liabilities | 1,759,767 | 1,781,186 | ||||
Equity | ||||||
Common stock | 125,021 | 125,606 | ||||
Paid-in capital | 214,435 | 211,943 | ||||
Retained earnings (deficit) | 707,104 | 706,866 | ||||
Accumulated other comprehensive loss | (50,263) | $ (43,406) | (51,825) | (44,788) | $ (51,646) | (24,001) |
Total equity | 996,297 | 992,590 | 977,127 | 990,838 | ||
Total liabilities and equity | 2,756,064 | 2,773,776 | ||||
Owens & Minor, Inc. | ||||||
Current assets | ||||||
Cash and cash equivalents | 105,390 | 103,284 | 105,427 | 22,013 | ||
Accounts and notes receivable, net | 0 | 0 | ||||
Merchandise inventories | 0 | 0 | ||||
Other current assets | 175 | 104 | ||||
Total current assets | 105,565 | 103,388 | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill, net | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Due from O&M and subsidiaries | 0 | 0 | ||||
Advances to and investment in consolidated subsidiaries | 2,033,661 | 1,967,176 | ||||
Other assets, net | 0 | 0 | ||||
Total assets | 2,139,226 | 2,070,564 | ||||
Current liabilities | ||||||
Accounts payable | 0 | 0 | ||||
Accrued payroll and related liabilities | 0 | 0 | ||||
Deferred income taxes | 0 | |||||
Other current liabilities | 8,028 | 6,924 | ||||
Total current liabilities | 8,028 | 6,924 | ||||
Long-term debt, excluding current portion | 544,410 | 543,982 | ||||
Due to O&M and subsidiaries | 590,491 | 527,068 | ||||
Intercompany debt | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | 1,142,929 | 1,077,974 | ||||
Equity | ||||||
Common stock | 125,021 | 125,606 | ||||
Paid-in capital | 214,435 | 211,943 | ||||
Retained earnings (deficit) | 707,104 | 706,866 | ||||
Accumulated other comprehensive loss | (50,263) | (51,825) | ||||
Total equity | 996,297 | 992,590 | ||||
Total liabilities and equity | 2,139,226 | 2,070,564 | ||||
Guarantor Subsidiaries | ||||||
Current assets | ||||||
Cash and cash equivalents | 5,109 | 5,614 | 46,639 | 3,912 | ||
Accounts and notes receivable, net | 528,639 | 507,673 | ||||
Merchandise inventories | 905,032 | 883,232 | ||||
Other current assets | 82,304 | 72,683 | ||||
Total current assets | 1,521,084 | 1,469,202 | ||||
Property and equipment, net | 100,704 | 103,219 | ||||
Goodwill, net | 180,006 | 180,006 | ||||
Intangible assets, net | 12,693 | 13,731 | ||||
Due from O&M and subsidiaries | 544,353 | 518,473 | ||||
Advances to and investment in consolidated subsidiaries | 0 | 0 | ||||
Other assets, net | 54,130 | 57,409 | ||||
Total assets | 2,412,970 | 2,342,040 | ||||
Current liabilities | ||||||
Accounts payable | 723,773 | 662,909 | ||||
Accrued payroll and related liabilities | 17,718 | 32,094 | ||||
Deferred income taxes | 0 | |||||
Other current liabilities | 109,397 | 109,137 | ||||
Total current liabilities | 850,888 | 804,140 | ||||
Long-term debt, excluding current portion | 4,032 | 4,527 | ||||
Due to O&M and subsidiaries | 0 | 0 | ||||
Intercompany debt | 138,890 | 138,890 | ||||
Deferred income taxes | 62,673 | 67,562 | ||||
Other liabilities | 57,867 | 57,573 | ||||
Total liabilities | 1,114,350 | 1,072,692 | ||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Paid-in capital | 174,612 | 174,612 | ||||
Retained earnings (deficit) | 1,133,985 | 1,104,787 | ||||
Accumulated other comprehensive loss | (9,977) | (10,051) | ||||
Total equity | 1,298,620 | 1,269,348 | ||||
Total liabilities and equity | 2,412,970 | 2,342,040 | ||||
Non-guarantor Subsidiaries | ||||||
Current assets | ||||||
Cash and cash equivalents | 28,452 | 52,122 | 48,903 | 30,847 | ||
Accounts and notes receivable, net | 90,220 | 89,895 | ||||
Merchandise inventories | 55,250 | 59,930 | ||||
Other current assets | 186,166 | 212,183 | ||||
Total current assets | 360,088 | 414,130 | ||||
Property and equipment, net | 100,815 | 105,711 | ||||
Goodwill, net | 238,360 | 239,613 | ||||
Intangible assets, net | 76,906 | 81,519 | ||||
Due from O&M and subsidiaries | 0 | 0 | ||||
Advances to and investment in consolidated subsidiaries | 0 | 0 | ||||
Other assets, net | 17,670 | 17,868 | ||||
Total assets | 793,839 | 858,841 | ||||
Current liabilities | ||||||
Accounts payable | 60,764 | 56,073 | ||||
Accrued payroll and related liabilities | 10,550 | 13,813 | ||||
Deferred income taxes | 0 | |||||
Other current liabilities | 122,462 | 191,012 | ||||
Total current liabilities | 193,776 | 260,898 | ||||
Long-term debt, excluding current portion | 18,513 | 19,986 | ||||
Due to O&M and subsidiaries | 66,325 | 70,089 | ||||
Intercompany debt | 0 | 0 | ||||
Deferred income taxes | 21,827 | 18,764 | ||||
Other liabilities | 6,320 | 5,203 | ||||
Total liabilities | 306,761 | 374,940 | ||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Paid-in capital | 583,867 | 583,873 | ||||
Retained earnings (deficit) | (56,503) | (58,648) | ||||
Accumulated other comprehensive loss | (40,286) | (41,324) | ||||
Total equity | 487,078 | 483,901 | ||||
Total liabilities and equity | 793,839 | 858,841 | ||||
Eliminations | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Accounts and notes receivable, net | (9,647) | (9,633) | ||||
Merchandise inventories | (2,310) | (2,387) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (11,957) | (12,020) | ||||
Property and equipment, net | 0 | 0 | ||||
Goodwill, net | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Due from O&M and subsidiaries | (544,353) | (518,473) | ||||
Advances to and investment in consolidated subsidiaries | (2,033,661) | (1,967,176) | ||||
Other assets, net | 0 | 0 | ||||
Total assets | (2,589,971) | (2,497,669) | ||||
Current liabilities | ||||||
Accounts payable | (8,567) | (8,373) | ||||
Accrued payroll and related liabilities | 0 | 0 | ||||
Deferred income taxes | 0 | |||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | (8,567) | (8,373) | ||||
Long-term debt, excluding current portion | 0 | 0 | ||||
Due to O&M and subsidiaries | (656,816) | (597,157) | ||||
Intercompany debt | (138,890) | (138,890) | ||||
Deferred income taxes | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | (804,273) | (744,420) | ||||
Equity | ||||||
Common stock | 0 | 0 | ||||
Paid-in capital | (758,479) | (758,485) | ||||
Retained earnings (deficit) | (1,077,482) | (1,046,139) | ||||
Accumulated other comprehensive loss | 50,263 | 51,375 | ||||
Total equity | (1,785,698) | (1,753,249) | ||||
Total liabilities and equity | $ (2,589,971) | $ (2,497,669) |
Condensed Consolidating Finan54
Condensed Consolidating Financial Information (Condensed Consolidating Statements Of Cash Flows) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | $ 27,716 | $ 24,226 | $ 51,851 | $ 43,166 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Depreciation and amortization | 14,126 | 15,781 | 28,343 | 36,138 |
Share-based compensation expense | 5,969 | 5,048 | ||
Provision for losses on accounts and notes receivable | (27) | 41 | ||
Deferred income tax expense (benefit) | (2,071) | 2,992 | ||
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | (29,736) | 41,622 | ||
Merchandise inventories | (17,947) | (31,866) | ||
Accounts payable | 62,710 | 145,682 | ||
Net change in other assets and liabilities | (56,599) | 2,771 | ||
Other, net | 145 | 1,196 | ||
Cash provided by (used for) operating activities | 42,638 | 246,790 | ||
Investing activities: | ||||
Additions to property and equipment | (8,857) | (12,009) | ||
Additions to computer software and intangible assets | (4,602) | (10,816) | ||
Proceeds from sale of property and equipment | 4,565 | 837 | ||
Cash used for investing activities | (8,894) | (21,988) | ||
Financing activities: | ||||
Change in intercompany advances | 0 | 0 | ||
Change in bank overdraft | 0 | 1,530 | ||
Repayment of revolving credit facility | 0 | (33,700) | ||
Cash dividends paid | (32,003) | (31,867) | ||
Repurchases of common stock | (20,849) | (7,440) | ||
Excess tax benefits related to share-based compensation | 598 | 457 | ||
Other, net | (5,968) | (5,112) | ||
Cash used for financing activities | (58,222) | (76,132) | ||
Effect of exchange rate changes on cash and cash equivalents | 2,409 | (4,473) | ||
Net increase (decrease) in cash and cash equivalents | (22,069) | 144,197 | ||
Cash and cash equivalents at beginning of period | 161,020 | 56,772 | ||
Cash and cash equivalents at end of period | 138,951 | 200,969 | 138,951 | 200,969 |
Owens & Minor, Inc. | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 27,716 | 24,226 | 51,851 | 43,166 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||
Equity in earnings of subsidiaries | (34,976) | (31,790) | (66,485) | (55,943) |
Depreciation and amortization | 0 | 0 | ||
Share-based compensation expense | 0 | 0 | ||
Provision for losses on accounts and notes receivable | 0 | 0 | ||
Deferred income tax expense (benefit) | 0 | 0 | ||
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | 0 | 0 | ||
Merchandise inventories | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Net change in other assets and liabilities | 1,033 | (148) | ||
Other, net | 427 | 429 | ||
Cash provided by (used for) operating activities | (13,174) | (12,496) | ||
Investing activities: | ||||
Additions to property and equipment | 0 | 0 | ||
Additions to computer software and intangible assets | 0 | 0 | ||
Proceeds from sale of property and equipment | 0 | 0 | ||
Cash used for investing activities | 0 | 0 | ||
Financing activities: | ||||
Change in intercompany advances | 71,002 | 135,627 | ||
Change in bank overdraft | 0 | |||
Repayment of revolving credit facility | 0 | |||
Cash dividends paid | (32,003) | (31,867) | ||
Repurchases of common stock | (20,849) | (7,440) | ||
Excess tax benefits related to share-based compensation | 598 | 457 | ||
Other, net | (3,468) | (867) | ||
Cash used for financing activities | 15,280 | 95,910 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 2,106 | 83,414 | ||
Cash and cash equivalents at beginning of period | 103,284 | 22,013 | ||
Cash and cash equivalents at end of period | 105,390 | 105,427 | 105,390 | 105,427 |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 32,518 | 30,310 | 61,715 | 58,322 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Depreciation and amortization | 15,039 | 17,741 | ||
Share-based compensation expense | 5,969 | 5,048 | ||
Provision for losses on accounts and notes receivable | (129) | (36) | ||
Deferred income tax expense (benefit) | (2,071) | 2,376 | ||
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | (20,837) | 35,566 | ||
Merchandise inventories | (21,800) | (35,481) | ||
Accounts payable | 60,864 | 146,622 | ||
Net change in other assets and liabilities | (23,954) | 14,338 | ||
Other, net | 218 | 726 | ||
Cash provided by (used for) operating activities | 75,014 | 245,222 | ||
Investing activities: | ||||
Additions to property and equipment | (5,502) | (9,292) | ||
Additions to computer software and intangible assets | (1,700) | (2,068) | ||
Proceeds from sale of property and equipment | 18 | 60 | ||
Cash used for investing activities | (7,184) | (11,300) | ||
Financing activities: | ||||
Change in intercompany advances | (67,168) | (155,951) | ||
Change in bank overdraft | 0 | |||
Repayment of revolving credit facility | (33,700) | |||
Cash dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Excess tax benefits related to share-based compensation | 0 | 0 | ||
Other, net | (1,167) | (1,544) | ||
Cash used for financing activities | (68,335) | (191,195) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (505) | 42,727 | ||
Cash and cash equivalents at beginning of period | 5,614 | 3,912 | ||
Cash and cash equivalents at end of period | 5,109 | 46,639 | 5,109 | 46,639 |
Non-guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 2,548 | 1,627 | 4,693 | (2,618) |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Depreciation and amortization | 13,304 | 18,397 | ||
Share-based compensation expense | 0 | 0 | ||
Provision for losses on accounts and notes receivable | 102 | 77 | ||
Deferred income tax expense (benefit) | 0 | 616 | ||
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | (9,228) | (180) | ||
Merchandise inventories | 3,931 | 1,193 | ||
Accounts payable | 2,174 | 5,798 | ||
Net change in other assets and liabilities | (33,678) | (9,260) | ||
Other, net | (500) | 41 | ||
Cash provided by (used for) operating activities | (19,202) | 14,064 | ||
Investing activities: | ||||
Additions to property and equipment | (3,355) | (2,717) | ||
Additions to computer software and intangible assets | (2,902) | (8,748) | ||
Proceeds from sale of property and equipment | 4,547 | 777 | ||
Cash used for investing activities | (1,710) | (10,688) | ||
Financing activities: | ||||
Change in intercompany advances | (3,834) | 20,324 | ||
Change in bank overdraft | 1,530 | |||
Repayment of revolving credit facility | 0 | |||
Cash dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Excess tax benefits related to share-based compensation | 0 | 0 | ||
Other, net | (1,333) | (2,701) | ||
Cash used for financing activities | (5,167) | 19,153 | ||
Effect of exchange rate changes on cash and cash equivalents | 2,409 | (4,473) | ||
Net increase (decrease) in cash and cash equivalents | (23,670) | 18,056 | ||
Cash and cash equivalents at beginning of period | 52,122 | 30,847 | ||
Cash and cash equivalents at end of period | 28,452 | 48,903 | 28,452 | 48,903 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | (35,066) | (31,937) | (66,408) | (55,704) |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | ||||
Equity in earnings of subsidiaries | 34,976 | 31,790 | 66,485 | 55,943 |
Depreciation and amortization | 0 | 0 | ||
Share-based compensation expense | 0 | 0 | ||
Provision for losses on accounts and notes receivable | 0 | 0 | ||
Deferred income tax expense (benefit) | 0 | 0 | ||
Changes in operating assets and liabilities: | ||||
Accounts and notes receivable | 329 | 6,236 | ||
Merchandise inventories | (78) | 2,422 | ||
Accounts payable | (328) | (6,738) | ||
Net change in other assets and liabilities | 0 | (2,159) | ||
Other, net | 0 | 0 | ||
Cash provided by (used for) operating activities | 0 | 0 | ||
Investing activities: | ||||
Additions to property and equipment | 0 | 0 | ||
Additions to computer software and intangible assets | 0 | 0 | ||
Proceeds from sale of property and equipment | 0 | 0 | ||
Cash used for investing activities | 0 | 0 | ||
Financing activities: | ||||
Change in intercompany advances | 0 | 0 | ||
Change in bank overdraft | 0 | |||
Repayment of revolving credit facility | 0 | |||
Cash dividends paid | 0 | 0 | ||
Repurchases of common stock | 0 | 0 | ||
Excess tax benefits related to share-based compensation | 0 | 0 | ||
Other, net | 0 | 0 | ||
Cash used for financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Recent Accounting Pronounceme55
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Accounting Standards Update 2015-03 | Long-term Debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred finance costs, net | $ 3.8 | $ 4.1 |