Variable Interest Entity

3 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

As discussed in Note 2, the Company made an additional investment in Profarma in January 2018. In connection with this investment, the Company obtained substantial governance rights, allowing it to direct the activities that significantly impact Profarma’s economic performance. As such, the Company consolidated the operating results of Profarma in its consolidated financial statements as of and for the periods ended December 31, 2018 and September 30, 2018. The Company is not obligated to provide future financial support to Profarma.

The following assets and liabilities of Profarma are included in the Company's Consolidated Balance Sheets:



(in thousands)	December 31, 2018		September 30, 2018
Cash and cash equivalents	$	11,768	$	26,801
Accounts receivables, net	157,307		144,646
Merchandise inventories	172,153		168,931
Prepaid expenses and other	60,395		61,924
Property and equipment, net	33,567		32,667
Goodwill	82,309		82,309
Other intangible assets	79,482		80,974
Other long-term assets	9,111		8,912
Total assets	$	606,092	$	607,164

Accounts payable	$	145,413	$	150,102
Accrued expenses and other	58,611		37,195
Short-term debt	117,217		115,461
Long-term debt	44,885		39,704
Deferred income taxes	44,265		46,137
Other long-term liabilities	10,915		31,988
Total liabilities	$	421,306	$	420,587

Profarma's assets can only be used to settle its obligations, and its creditors do not have recourse to the general credit of the Company.