Variable Interest Entity

12 Months Ended

Sep. 30, 2020

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 September 30, 2020 and September 30, 2019. 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 Sheet:


(in thousands)	September 30, 2020		September 30, 2019
Cash and cash equivalents	$	96,983	$	9,431
Accounts receivables, net	120,486		154,491
Inventories	144,059		185,602
Prepaid expenses and other	52,885		64,119
Property and equipment, net	23,584		30,961
Goodwill	82,309		82,309
Other intangible assets	73,543		74,429
Other long-term assets	53,513		9,169
Total assets	$	647,362	$	610,511

Accounts payable	$	141,147	$	165,053
Accrued expenses and other	34,415		49,191
Short-term debt	98,399		106,439
Long-term debt	44,144		60,973
Deferred income taxes	38,854		42,371
Other long-term liabilities	43,413		5,303
Total liabilities	$	400,372	$	429,330

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.

Profarma Retail Equity Offering

In August 2020, Profarma received $66.4 million through an equity offering of its retail business. The equity offering decreased Profarma's voting ownership interest in the retail business from 100% to 53.5%. Profarma continues to consolidate the operating results of the retail business in its consolidated financial statements.