(State or other jurisdiction of | (I.R.S. Employer | |||||||||||||
incorporation or organization) | Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | |||||||||
(NYSE) |
Page No. | |||||
(in thousands, except share and per share data) | June 30, 2021 | September 30, 2020 | ||||||||||||
(Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, less allowances for returns and credit losses: $ | ||||||||||||||
Inventories | ||||||||||||||
Right to recover assets | ||||||||||||||
Income tax receivable | ||||||||||||||
Prepaid expenses and other | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other assets | ||||||||||||||
TOTAL ASSETS | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses and other | ||||||||||||||
Short-term debt | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Accrued income taxes | ||||||||||||||
Deferred income taxes | ||||||||||||||
Accrued litigation liability | ||||||||||||||
Other liabilities | ||||||||||||||
Commitments and contingencies (Note 10) | ||||||||||||||
Stockholders’ equity (deficit): | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock, at cost: | ( | ( | ||||||||||||
Total AmerisourceBergen Corporation stockholders' equity (deficit) | ( | |||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity (deficit) | ( | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of goods sold | ||||||||||||||||||||||||||
Gross profit | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Distribution, selling, and administrative | ||||||||||||||||||||||||||
Depreciation | ||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||
Employee severance, litigation, and other | ||||||||||||||||||||||||||
Impairment of PharMEDium assets | ||||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Other (income) loss, net | ( | |||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||
Loss on early retirement of debt | ||||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income tax expense (benefit) | ( | |||||||||||||||||||||||||
Net income | ||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||||||||
Net income attributable to AmerisourceBergen Corporation | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted | ||||||||||||||||||||||||||
Cash dividends declared per share of common stock | $ | $ | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) income | ||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | |||||||||||||||||||||||
Other | ( | ( | ||||||||||||||||||||||||
Total other comprehensive (loss) income | ( | ( | ( | |||||||||||||||||||||||
Total comprehensive income | ||||||||||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
Comprehensive income attributable to AmerisourceBergen Corporation | $ | $ | $ | $ |
(in thousands, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||
March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Cash dividends, $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Exercises of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Equity consideration issued for acquisition of Alliance Healthcare (Note 2) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Acquisition of Alliance Healthcare (Note 2) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
(in thousands, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||
March 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Cash dividends, $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Exercises of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Employee tax withholdings related to restricted share vesting | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
June 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
(in thousands, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||
September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||
— | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Cash dividends, $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Exercises of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Employee tax withholdings related to restricted share vesting | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Equity consideration issued for acquisition of Alliance Healthcare (Note 2) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Acquisition of Alliance Healthcare (Note 2) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||
June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
(in thousands, except per share data) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||
September 30, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Cash dividends, $ | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Exercises of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchases of common stock | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Employee tax withholdings related to restricted share vesting | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Other | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||
June 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Nine months ended June 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation, including amounts charged to cost of goods sold | ||||||||||||||
Amortization, including amounts charged to interest expense | ||||||||||||||
Provision for credit losses | ||||||||||||||
Provision (benefit) for deferred income taxes | ( | |||||||||||||
Share-based compensation | ||||||||||||||
LIFO (credit) expense | ( | |||||||||||||
Impairment of PharMEDium assets | ||||||||||||||
Loss on early retirement of debt | ||||||||||||||
Other, net | ||||||||||||||
Changes in operating assets and liabilities, excluding the effects of acquisitions: | ||||||||||||||
Accounts receivable | ( | ( | ||||||||||||
Inventories | ( | ( | ||||||||||||
Income taxes receivable | ( | |||||||||||||
Prepaid expenses and other assets | ||||||||||||||
Accounts payable | ||||||||||||||
Income taxes payable | ( | ( | ||||||||||||
Accrued expenses and other liabilities | ( | |||||||||||||
Long-term accrued litigation liability | ||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Cost of acquired companies, net of cash acquired | ( | |||||||||||||
Cost of equity investments | ( | ( | ||||||||||||
Other, net | ||||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Senior notes and other loan borrowings | ||||||||||||||
Loan repayments | ( | ( | ||||||||||||
Borrowings under revolving and securitization credit facilities | ||||||||||||||
Repayments under revolving and securitization credit facilities | ( | ( | ||||||||||||
Payment of premium on early retirement of debt | ( | |||||||||||||
Purchases of common stock | ( | ( | ||||||||||||
Exercises of stock options | ||||||||||||||
Cash dividends on common stock | ( | ( | ||||||||||||
Tax withholdings related to restricted share vesting | ( | ( | ||||||||||||
Other | ( | ( | ||||||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | ( | |||||||||||||
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | ( | |||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | ||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $ | $ |
(amounts in thousands) | June 30, 2021 | September 30, 2020 | ||||||||||||
(unaudited) | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash (included in Prepaid Expenses and Other) | ||||||||||||||
Cash, cash equivalents, and restricted cash | $ | $ |
(in thousands) | ||||||||
Consideration | ||||||||
Cash | $ | |||||||
Equity ( | ||||||||
Estimated accrued consideration | ||||||||
Other equity consideration | ||||||||
Fair value of total consideration | $ | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||
Cash and cash equivalents | $ | |||||||
Accounts receivable | ||||||||
Inventories | ||||||||
Prepaid expenses and other | ||||||||
Property and equipment | ||||||||
Goodwill | ||||||||
Other intangible assets | ||||||||
Other assets | ||||||||
Total assets acquired | ||||||||
Accounts payable | ( | |||||||
Accrued expenses and other | ( | |||||||
Short-term debt | ( | |||||||
Deferred income taxes | ( | |||||||
Other liabilities | ( | |||||||
Total liabilities assumed | ( | |||||||
Net assets acquired | ||||||||
Noncontrolling interest | ( | |||||||
Equity consideration | ( | |||||||
Estimated accrued consideration | ( | |||||||
Cash acquired, including restricted cash of $ | ( | |||||||
Net cash paid | $ |
(in thousands, except useful lives) | Fair Value | Weighted-Average Useful Life | ||||||||||||
Customer relationships | $ | |||||||||||||
Trade names | ||||||||||||||
Total | $ |
(in thousands) | June 30, 2021 | September 30, 2020 | ||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivables, net | ||||||||||||||
Inventories | ||||||||||||||
Prepaid expenses and other | ||||||||||||||
Property and equipment, net | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets | ||||||||||||||
Other long-term assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued expenses and other | ||||||||||||||
Short-term debt | ||||||||||||||
Long-term debt | ||||||||||||||
Deferred income taxes | ||||||||||||||
Other long-term liabilities | ||||||||||||||
Total liabilities | $ | $ |
(in thousands) | Pharmaceutical Distribution Services | Other | Total | |||||||||||||||||
Goodwill as of September 30, 2020 | $ | $ | $ | |||||||||||||||||
Goodwill recognized in connection with acquisitions (see Note 2) | ||||||||||||||||||||
Foreign currency translation | ( | ( | ||||||||||||||||||
Goodwill as of June 30, 2021 | $ | $ | $ |
June 30, 2021 | September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Weighted Average Remaining Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||||
Indefinite-lived trade names | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||||||||||||||||||||
Finite-lived: | ||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Trade names and other | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
(in thousands) | June 30, 2021 | September 30, 2020 | ||||||||||||
Revolving credit note | $ | $ | ||||||||||||
Term loan due in October 2020 | ||||||||||||||
Receivables securitization facility due 2022 | ||||||||||||||
Term loan due in June 2023 | ||||||||||||||
Overdraft facility due 2024 (£ | ||||||||||||||
Multi-currency revolving credit facility due 2024 | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
Alliance Healthcare debt | ||||||||||||||
Nonrecourse debt | ||||||||||||||
Total debt | ||||||||||||||
Less AmerisourceBergen Corporation current portion | ||||||||||||||
Less Alliance Healthcare current portion | ||||||||||||||
Less nonrecourse current portion | ||||||||||||||
Total, net of current portion | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Weighted average common shares outstanding - basic | ||||||||||||||||||||||||||
Dilutive effect of stock options and restricted stock units | ||||||||||||||||||||||||||
Weighted average common shares outstanding - diluted |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Employee severance | $ | $ | $ | $ | ||||||||||||||||||||||
Litigation and opioid-related costs | ||||||||||||||||||||||||||
Acquisition-related deal and integration costs | ||||||||||||||||||||||||||
Business transformation efforts | ||||||||||||||||||||||||||
Other restructuring costs, net | ( | |||||||||||||||||||||||||
Total employee severance, litigation, and other | $ | $ | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Pharmaceutical Distribution Services | $ | $ | $ | $ | ||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
MWI Animal Health | ||||||||||||||||||||||||||
Alliance Healthcare | ||||||||||||||||||||||||||
Global Commercialization Services | ||||||||||||||||||||||||||
Total Other | ||||||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | ||||||||||||||||||||||
Revenue | $ | $ | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Pharmaceutical Distribution Services | $ | $ | $ | $ | ||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Intersegment eliminations | ( | ( | ( | ( | ||||||||||||||||||||||
Total segment operating income | $ | $ | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Total segment operating income | $ | $ | $ | $ | ||||||||||||||||||||||
Gains from antitrust litigation settlements | ||||||||||||||||||||||||||
LIFO credit (expense) | ( | ( | ||||||||||||||||||||||||
PharMEDium remediation costs | ( | |||||||||||||||||||||||||
PharMEDium shutdown costs | ( | ( | ||||||||||||||||||||||||
Contingent consideration adjustment | ||||||||||||||||||||||||||
Acquisition-related intangibles amortization | ( | ( | ( | ( | ||||||||||||||||||||||
Employee severance, litigation, and other | ( | ( | ( | ( | ||||||||||||||||||||||
Impairment of PharMEDium assets | ( | |||||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Other (income) loss, net | ( | |||||||||||||||||||||||||
Interest expense, net | ||||||||||||||||||||||||||
Loss on early retirement of debt | ||||||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Pharmaceutical Distribution Services | $ | 49,312,013 | $ | 43,579,119 | 13.2% | $ | 146,905,854 | $ | 135,178,617 | 8.7% | ||||||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||||||||
MWI Animal Health | 1,193,530 | 1,008,581 | 18.3% | 3,442,494 | 3,079,915 | 11.8% | ||||||||||||||||||||||||||||||||
Alliance Healthcare | 1,924,858 | — | 1,924,858 | — | ||||||||||||||||||||||||||||||||||
Global Commercialization Services | 1,009,878 | 801,952 | 25.9% | 2,905,960 | 2,454,195 | 18.4% | ||||||||||||||||||||||||||||||||
Total Other | 4,128,266 | 1,810,533 | 128.0% | 8,273,312 | 5,534,110 | 49.5% | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (34,584) | (22,875) | (102,744) | (63,569) | ||||||||||||||||||||||||||||||||||
Revenue | $ | 53,405,695 | $ | 45,366,777 | 17.7% | $ | 155,076,422 | $ | 140,649,158 | 10.3% |
Three-month Period | Nine-month Period | ||||||||||
Increased sales to Walgreens, our largest customer | $1.1 | $1.7 | |||||||||
Increased sales to specialty physician practices | $0.9 | $1.8 | |||||||||
Increased sales to other customers, including COVID-19 treatments | $3.7 | $8.2 |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Pharmaceutical Distribution Services | $ | 1,053,776 | $ | 906,663 | 16.2% | $ | 3,218,142 | $ | 2,856,715 | 12.7% | ||||||||||||||||||||||||||||
Other | 574,794 | 328,942 | 74.7% | 1,355,849 | 1,039,502 | 30.4% | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (1,716) | (3,396) | (8,171) | (3,975) | ||||||||||||||||||||||||||||||||||
Gains from antitrust litigation settlements | 147,432 | — | 147,432 | 8,546 | ||||||||||||||||||||||||||||||||||
LIFO credit (expense) | 113,920 | (6,061) | 160,565 | (43,195) | ||||||||||||||||||||||||||||||||||
PharMEDium remediation costs | — | — | — | (7,135) | ||||||||||||||||||||||||||||||||||
PharMEDium shutdown costs | — | (432) | — | (5,421) | ||||||||||||||||||||||||||||||||||
Gross profit | $ | 1,888,206 | $ | 1,225,716 | 54.0% | $ | 4,873,817 | $ | 3,845,037 | 26.8% |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Distribution, selling, and administrative | $ | 913,414 | $ | 666,885 | 37.0% | $ | 2,378,563 | $ | 2,046,251 | 16.2% | ||||||||||||||||||||||||||||
Depreciation and amortization | 127,101 | 95,415 | 33.2% | 327,451 | 293,725 | 11.5% | ||||||||||||||||||||||||||||||||
Employee severance, litigation, and other | 226,964 | 58,585 | 375,501 | 165,626 | ||||||||||||||||||||||||||||||||||
Impairment of PharMEDium assets | — | — | — | 361,652 | ||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 1,267,479 | $ | 820,885 | 54.4% | $ | 3,081,515 | $ | 2,867,254 | 7.5% |
Three months ended June 30, | Nine months ended June 30, | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||
Pharmaceutical Distribution Services | $ | 483,914 | $ | 426,643 | 13.4% | $ | 1,569,014 | $ | 1,381,434 | 13.6% | ||||||||||||||||||||||||||||
Other | 146,869 | 82,875 | 77.2% | 391,696 | 295,614 | 32.5% | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (162) | (1,996) | (6,615) | (2,575) | ||||||||||||||||||||||||||||||||||
Total segment operating income | 630,621 | 507,522 | 24.3% | 1,954,095 | 1,674,473 | 16.7% | ||||||||||||||||||||||||||||||||
Gains from antitrust litigation settlements | 147,432 | — | 147,432 | 8,546 | ||||||||||||||||||||||||||||||||||
LIFO credit (expense) | 113,920 | (6,061) | 160,565 | (43,195) | ||||||||||||||||||||||||||||||||||
PharMEDium remediation costs | — | — | — | (16,165) | ||||||||||||||||||||||||||||||||||
PharMEDium shutdown costs | — | (12,936) | — | (45,406) | ||||||||||||||||||||||||||||||||||
Contingent consideration adjustment | — | — | — | 12,153 | ||||||||||||||||||||||||||||||||||
Acquisition-related intangibles amortization | (44,282) | (25,109) | (94,289) | (85,345) | ||||||||||||||||||||||||||||||||||
Employee severance, litigation, and other | (226,964) | (58,585) | (375,501) | (165,626) | ||||||||||||||||||||||||||||||||||
Impairment of PharMEDium assets | — | — | — | (361,652) | ||||||||||||||||||||||||||||||||||
Operating income | $ | 620,727 | $ | 404,831 | 53.3% | $ | 1,792,302 | $ | 977,783 | 83.3% | ||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
Interest expense | $ | 53,011 | 2.78% | 39,177 | 3.33% | |||||||||||||||||||||
Interest income | (1,673) | 0.16% | (1,429) | 0.21% | ||||||||||||||||||||||
Interest expense, net | $ | 51,338 | 37,748 |
2021 | 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate | ||||||||||||||||||||||
Interest expense | $ | 122,773 | 2.98% | $ | 122,761 | 3.50% | ||||||||||||||||||||
Interest income | (3,295) | 0.13% | (19,585) | 0.92% | ||||||||||||||||||||||
Interest expense, net | $ | 119,478 | $ | 103,176 |
(in thousands) | Outstanding Balance | Additional Availability | ||||||||||||
Fixed-Rate Debt: | ||||||||||||||
$1,525,000, 0.737% senior notes due 2023 | $ | 1,517,263 | $ | — | ||||||||||
$500,000, 3.400% senior notes due 2024 | 498,600 | — | ||||||||||||
$500,000, 3.250% senior notes due 2025 | 497,499 | — | ||||||||||||
$750,000, 3.450% senior notes due 2027 | 744,571 | — | ||||||||||||
$500,000, 2.800% senior notes due 2030 | 494,585 | — | ||||||||||||
$1,000,000, 2.700% senior notes due 2031 | 989,275 | — | ||||||||||||
$500,000, 4.250% senior notes due 2045 | 494,892 | — | ||||||||||||
$500,000, 4.300% senior notes due 2047 | 492,955 | — | ||||||||||||
Nonrecourse debt | 60,615 | — | ||||||||||||
Total fixed-rate debt | 5,790,255 | — | ||||||||||||
Variable-Rate Debt: | ||||||||||||||
Revolving credit note | — | 75,000 | ||||||||||||
Receivables securitization facility due 2022 | 350,000 | 1,100,000 | ||||||||||||
364-day revolving credit facility | — | 1,000,000 | ||||||||||||
Term loan due in June 2023 | 499,661 | — | ||||||||||||
Overdraft facility due 2024 (£10,000) | — | 13,833 | ||||||||||||
Multi-currency revolving credit facility due 2024 | — | 1,400,000 | ||||||||||||
Alliance Healthcare debt | 354,975 | 341,005 | ||||||||||||
Nonrecourse debt | 107,901 | — | ||||||||||||
Total variable-rate debt | 1,312,537 | 3,929,838 | ||||||||||||
Total debt | $ | 7,102,792 | $ | 3,929,838 |
Payments Due by Period (in thousands) | Debt, Including Interest Payments | Operating Leases | Other Commitments | Total | ||||||||||||||||||||||
Within 1 year | $ | 626,369 | $ | 203,228 | $ | 131,059 | $ | 960,656 | ||||||||||||||||||
1-3 years | 3,232,975 | 343,375 | 195,203 | 3,771,553 | ||||||||||||||||||||||
4-5 years | 753,028 | 266,208 | 118,615 | 1,137,851 | ||||||||||||||||||||||
After 5 years | 4,348,001 | 476,476 | — | 4,824,477 | ||||||||||||||||||||||
Total | $ | 8,960,373 | $ | 1,289,287 | $ | 444,877 | $ | 10,694,537 |
Three months ended June 30, | Nine months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Days sales outstanding | 25.2 | 25.8 | 25.6 | 24.8 | |||||||||||||||||||
Days inventory on hand | 28.6 | 30.9 | 28.9 | 29.1 | |||||||||||||||||||
Days payable outstanding | 57.4 | 59.4 | 58.0 | 57.9 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs | ||||||||||||||||||||||
April 1 to April 30 | — | $ | — | — | $ | 473,380,878 | ||||||||||||||||||||
May 1 to May 31 | — | $ | — | — | $ | 473,380,878 | ||||||||||||||||||||
June 1 to June 30 | — | $ | — | — | $ | 473,380,878 | ||||||||||||||||||||
Total | — | — |
Exhibit Number | Description | |||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101 | Financial statements from the Quarterly Report on Form 10-Q of AmerisourceBergen Corporation for the quarter ended June 30, 2021, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
AMERISOURCEBERGEN CORPORATION | |||||
August 4, 2021 | /s/ Steven H. Collis | ||||
Steven H. Collis | |||||
Chairman, President & Chief Executive Officer | |||||
August 4, 2021 | /s/ James F. Cleary | ||||
James F. Cleary | |||||
Executive Vice President & Chief Financial Officer | |||||
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowances for returns and credit losses | $ 1,320,465 | $ 1,417,308 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (shares) | 600,000,000 | 600,000,000 |
Common stock, issued (shares) | 290,343,806 | 287,790,479 |
Common stock, outstanding (shares) | 207,710,721 | 204,226,465 |
Treasury stock (shares) | 82,633,085 | 83,564,014 |
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Statement [Abstract] | ||||
Revenue | $ 53,405,695 | $ 45,366,777 | $ 155,076,422 | $ 140,649,158 |
Cost of goods sold | 51,517,489 | 44,141,061 | 150,202,605 | 136,804,121 |
Gross profit | 1,888,206 | 1,225,716 | 4,873,817 | 3,845,037 |
Operating expenses: | ||||
Distribution, selling, and administrative | 913,414 | 666,885 | 2,378,563 | 2,046,251 |
Depreciation | 82,320 | 69,594 | 231,535 | 208,634 |
Amortization | 44,781 | 25,821 | 95,916 | 85,091 |
Employee severance, litigation, and other | 226,964 | 58,585 | 375,501 | 165,626 |
Impairment of PharMEDium assets | 0 | 0 | 0 | 361,652 |
Operating income | 620,727 | 404,831 | 1,792,302 | 977,783 |
Other (income) loss, net | (4,141) | 1,073 | 4,901 | 2,806 |
Interest expense, net | 51,338 | 37,748 | 119,478 | 103,176 |
Loss on early retirement of debt | 0 | 22,175 | 0 | 22,175 |
Income before income taxes | 573,530 | 343,835 | 1,667,923 | 849,626 |
Income tax expense (benefit) | 278,082 | 56,567 | 559,763 | (595,321) |
Net income | 295,448 | 287,268 | 1,108,160 | 1,444,947 |
Net (income) loss attributable to noncontrolling interests | (3,326) | 2,171 | (5,926) | (7,591) |
Net income attributable to AmerisourceBergen Corporation | $ 292,122 | $ 289,439 | $ 1,102,234 | $ 1,437,356 |
Earnings per share: | ||||
Basic (usd per share) | $ 1.42 | $ 1.42 | $ 5.37 | $ 7.01 |
Diluted (usd per share) | $ 1.40 | $ 1.41 | $ 5.31 | $ 6.95 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 206,156 | 203,654 | 205,255 | 205,017 |
Diluted (shares) | 208,912 | 205,544 | 207,679 | 206,714 |
Cash dividends declared per share of common stock (usd per share) | $ 0.44 | $ 0.42 | $ 1.32 | $ 1.24 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 295,448 | $ 287,268 | $ 1,108,160 | $ 1,444,947 |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustments | (154,075) | 3,181 | (114,136) | (27,224) |
Other | 0 | (690) | 0 | (656) |
Total other comprehensive (loss) income | (154,075) | 2,491 | (114,136) | (27,880) |
Total comprehensive income | 141,373 | 289,759 | 994,024 | 1,417,067 |
Comprehensive (income) loss attributable to noncontrolling interests | (13,241) | 3,824 | (16,198) | 3,590 |
Comprehensive income attributable to AmerisourceBergen Corporation | $ 128,132 | $ 293,583 | $ 977,826 | $ 1,420,657 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Adoption of ASC |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Retained Earnings
Adoption of ASC
|
Accumulated Other Comprehensive Loss |
Treasury Stock |
Noncontrolling Interests |
Noncontrolling Interests
Adoption of ASC
|
---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Sep. 30, 2019 | $ 2,993,206 | $ 35,138 | $ 2,853 | $ 4,850,142 | $ 4,235,491 | $ 35,138 | $ (111,965) | $ (6,097,604) | $ 114,289 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 1,444,947 | 1,437,356 | 7,591 | |||||||
Other comprehensive (loss) income | (27,880) | (16,699) | (11,181) | |||||||
Cash dividends | (256,764) | (256,764) | ||||||||
Exercises of stock options | 137,748 | 18 | 137,730 | |||||||
Share-based compensation expense | 57,579 | 57,579 | ||||||||
Purchases of common stock | (405,692) | (405,692) | ||||||||
Employee tax withholdings related to restricted share vesting | (9,660) | (9,660) | ||||||||
Other | (671) | 4 | (675) | |||||||
Ending balance at Jun. 30, 2020 | 3,967,951 | 2,875 | 5,044,776 | 5,451,221 | (128,664) | (6,512,956) | 110,699 | |||
Beginning balance at Mar. 31, 2020 | 3,705,113 | 2,868 | 4,972,109 | 5,248,005 | (132,808) | (6,499,584) | 114,523 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 287,268 | 289,439 | (2,171) | |||||||
Other comprehensive (loss) income | 2,491 | 4,144 | (1,653) | |||||||
Cash dividends | (86,223) | (86,223) | ||||||||
Exercises of stock options | 60,991 | 7 | 60,984 | |||||||
Share-based compensation expense | 11,816 | 11,816 | ||||||||
Purchases of common stock | (13,297) | (13,297) | ||||||||
Employee tax withholdings related to restricted share vesting | (75) | (75) | ||||||||
Other | (133) | (133) | ||||||||
Ending balance at Jun. 30, 2020 | 3,967,951 | 2,875 | 5,044,776 | 5,451,221 | (128,664) | (6,512,956) | 110,699 | |||
Beginning balance at Sep. 30, 2020 | (839,636) | $ (24,094) | 2,878 | 5,081,776 | 518,335 | $ (21,106) | (108,830) | (6,513,083) | 179,288 | $ (2,988) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 1,108,160 | 1,102,234 | 5,926 | |||||||
Other comprehensive (loss) income | (114,136) | (124,408) | 10,272 | |||||||
Cash dividends | (274,041) | (274,041) | ||||||||
Exercises of stock options | 164,297 | 18 | 164,279 | |||||||
Share-based compensation expense | 81,465 | 81,465 | ||||||||
Equity consideration issued for acquisition of Alliance Healthcare (Note 2) | 235,141 | 86,089 | 149,052 | |||||||
Acquisition of Alliance Healthcare (Note 2) | 178,264 | 178,264 | ||||||||
Purchases of common stock | (82,150) | (82,150) | ||||||||
Employee tax withholdings related to restricted share vesting | (23,530) | (23,530) | ||||||||
Other | (1,299) | 7 | (1,023) | (283) | ||||||
Ending balance at Jun. 30, 2021 | 408,441 | 2,903 | 5,412,586 | 1,325,422 | (233,238) | (6,469,711) | 370,479 | |||
Beginning balance at Mar. 31, 2021 | (102,782) | 2,900 | 5,278,379 | 1,124,976 | (69,248) | (6,618,763) | 178,974 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 295,448 | 292,122 | 3,326 | |||||||
Other comprehensive (loss) income | (154,075) | (163,990) | 9,915 | |||||||
Cash dividends | (91,676) | (91,676) | ||||||||
Exercises of stock options | 33,971 | 3 | 33,968 | |||||||
Share-based compensation expense | 14,355 | 14,355 | ||||||||
Equity consideration issued for acquisition of Alliance Healthcare (Note 2) | 235,141 | 86,089 | 149,052 | |||||||
Acquisition of Alliance Healthcare (Note 2) | 178,264 | 178,264 | ||||||||
Other | (205) | (205) | ||||||||
Ending balance at Jun. 30, 2021 | $ 408,441 | $ 2,903 | $ 5,412,586 | $ 1,325,422 | $ (233,238) | $ (6,469,711) | $ 370,479 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member | ||||
Cash dividends (in dollars per share) | $ 0.44 | $ 0.42 | $ 1.32 | $ 1.24 |
Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements present the consolidated financial position, results of operations, and cash flows of AmerisourceBergen Corporation and its subsidiaries, including less-than-wholly-owned subsidiaries in which AmerisourceBergen Corporation has a controlling financial interest (the "Company"), as of the dates and for the periods indicated. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information, the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting only of normal recurring accruals, except as otherwise disclosed herein) considered necessary to present fairly the financial position as of June 30, 2021 and the results of operations and cash flows for the interim periods ended June 30, 2021 and 2020 have been included. Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP, but which are not required for interim reporting purposes, have been omitted. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual amounts could differ from these estimated amounts. Certain reclassifications have been made to prior-period amounts in order to conform to the current year presentation. Restricted Cash The Company's Alliance Healthcare (see Note 2) business is required to maintain certain cash deposits with banks mainly consisting of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows:
Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, and a modified retrospective approach was required, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance was effective. The Company adopted ASU 2016-13 as of October 1, 2020. In connection with the adoption of ASU 2016-13, the Company recognized a $21.1 million, net of tax of $6.1 million, cumulative adjustment to retained earnings. The Company evaluates its receivables for risk of loss by grouping its receivables with similar risk characteristics. Expected losses are determined based on a combination of historical loss trends, current economic conditions, and forward-looking risk factors. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles in ASC 740 in order to reduce the cost and complexity of its application. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those fiscal years, with certain amendments applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, and others prospectively. Early adoption of this guidance is permitted, including the adoption in any interim period for public companies for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact of adopting this new accounting guidance. As of June 30, 2021, there were no other recently-issued accounting standards that may have a material impact on the Company’s financial position, results of operations, cash flows, or notes to the financial statements upon their adoption.
|
Acquisition |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition | Acquisition On June 1, 2021, the Company acquired a majority of Walgreens Boots Alliance, Inc.'s ("WBA") Alliance Healthcare businesses ("Alliance Healthcare") for $6,602.0 million in cash, subject to certain purchase price adjustments, $229.1 million of the Company's common stock (2 million shares at the Company's June 1, 2021 opening stock price of $114.54 per share), $118.2 million of estimated accrued consideration, and $6.1 million of other equity consideration (the "Transaction"). The net cash payment was $5,536.7 million, as the Company acquired $922.0 million of cash and cash equivalents and $143.3 million of restricted cash. The shares issued were from the Company's treasury stock on a first-in, first-out basis and were originally purchased for $149.1 million. WBA’s operations in China, Italy, and Germany were not part of this Transaction. The Company funded the cash purchase price through a combination of cash on hand and new debt financing (see Note 6). The acquisition expands the Company's reach and solutions in pharmaceutical distribution and adds to the Company's depth and breadth of global manufacturer services. The purchase price has been preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition in the table that follows. The preliminary allocation is pending the finalization of the third-party appraisals of intangible assets and the corresponding deferred taxes, as well as the finalization of working capital account balances and lease right-of-use assets and liabilities. There can be no assurance that the estimated amounts recorded will represent the final purchase price allocation.
The estimated fair value of the intangible assets acquired of $3.7 billion and the estimated useful lives are as follows:
Goodwill resulting from this acquisition is not expected to be deductible for income tax purposes. The fair value of the $178.3 million noncontrolling interest in Alliance Healthcare Egypt, a 50%-owned subsidiary, was estimated by applying income and market-based approaches. This fair value measurement is based on inputs that are not observable in the market and; therefore, represents a fair value measurement categorized within Level 3 of the fair value hierarchy. The Company incurred $88.8 million of acquisition-related costs in connection with this acquisition. These costs are included in Employee Severance, Litigation, and Other in the Company's Statements of Operations for the nine months ended June 30, 2021. The Company's consolidated results of operations since the acquisition date include Alliance Healthcare revenue of $1.9 billion and pretax earnings of $20.6 million. Alliance Healthcare's results of operations are included in Other within the Company's business segment information (see Note 13). Prior to August 18, 2021, the Company will file unaudited condensed combined pro forma financial statements combining the historical consolidated financial statements of the Company and Alliance Healthcare, as adjusted to give effect to the acquisition of Alliance Healthcare by the Company in a Current Report on Form 8-K. See Part II. Other Information-Item 1A. Risk Factors on page 38 of this Quarterly Report on Form 10-Q for additional risk factors related to our strategic transactions with WBA.
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Variable Interest Entity |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity | Variable Interest Entity The Company has substantial governance rights over Profarma Distribuidora de Produtos Farmacêuticos S.A. ("Profarma"), which allow it to direct the activities that significantly impact Profarma’s economic performance. As such, the Company consolidates the operating results of Profarma in its consolidated financial statements. 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:
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Income Taxes |
9 Months Ended |
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Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes United Kingdom Tax Reform The United Kingdom ("UK") government delivered a Spring Budget in March 2021 that set out a plan to provide continuing support for jobs and businesses as the UK recovers from the COVID-19 pandemic. The UK government Finance Act 2021 includes a provision to increase the corporate tax rate from 19% to 25% beginning on April 1, 2023. As a result, the Company recognized a deferred tax expense of $127.6 million to increase its deferred tax liabilities for the change in the tax rate. Swiss Tax Reform In November 2020, the Canton of Bern approved its Budget 2021, which called for lowering its corporate income tax rate applicable to the Company’s Swiss operations effective October 1, 2020. As a result, the Company recognized a deferred tax expense to reduce its Swiss deferred tax asset for the change in tax rate. Other Information The Company files income tax returns in U.S. federal and state jurisdictions as well as various foreign jurisdictions. As of June 30, 2021, the Company had unrecognized tax benefits, defined as the aggregate tax effect of differences between tax return positions and the benefits recognized in the Company’s financial statements, of $512.8 million ($464.8 million, net of federal benefit). If recognized, $446.5 million of these tax benefits would have reduced income tax expense and the effective tax rate. Included in this amount is $22.8 million of interest and penalties, which the Company records in Income Tax Expense in the Company's Consolidated Statements of Operations. In the nine months ended June 30, 2021, unrecognized tax benefits increased by $14.5 million. Over the next 12 months, it is reasonably possible that tax authority audit resolutions and the expiration of statutes of limitations could result in a reduction of unrecognized tax benefits of approximately $16.8 million. The Company's effective tax rates were 48.5% and 33.6% for the three and nine months ended June 30, 2021, respectively. The Company's effective tax rates were 16.5% and (70.1)% for the three and nine months ended June 30, 2020, respectively. The effective tax rates for the three and nine months ended June 30, 2021 were higher than the U.S. statutory rate primarily due to UK Tax Reform. The effective tax rate in the nine months ended June 30, 2020 was lower than the U.S. statutory rate due to the tax benefits associated with the worthless stock deduction in connection with the permanent shutdown of the PharMEDium compounding business and the Coronavirus Aid, Relief, and Economic Security Act (the provisions of which adjusted the net operating loss carryback rules and accelerated available refunds for alternative minimum tax credit carryforwards) and a higher mix of foreign earnings at lower tax rates in Switzerland and Ireland since U.S. earnings were lower principally due to the impairments of PharMEDium assets.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the changes in the carrying value of goodwill, by reportable segment, for the nine months ended June 30, 2021:
The following is a summary of other intangible assets:
Amortization expense for finite-lived intangible assets was $44.8 million and $25.8 million in the three months ended June 30, 2021 and 2020, respectively. Amortization expense for finite-lived intangible assets was $95.9 million and $85.1 million in the nine months ended June 30, 2021 and 2020, respectively. Amortization expense for finite-lived intangible assets is estimated to be $178.7 million in fiscal 2021, $330.3 million in fiscal 2022, $328.8 million in fiscal 2023, $327.1 million in fiscal 2024, $326.1 million in fiscal 2025, and $3,357.2 million thereafter.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consisted of the following:
Multi-Currency Revolving Credit Facility The Company has a $1.4 billion multi-currency senior unsecured revolving credit facility ("Multi-Currency Revolving Credit Facility"), which is scheduled to expire in September 2024, with a syndicate of lenders. Interest on borrowings under the Multi-Currency Revolving Credit Facility accrues at specified rates based on the Company’s debt rating and ranges from 70 basis points to 112.5 basis points over CDOR/LIBOR/EURIBOR/Bankers Acceptance Stamping Fee, as applicable (101.5 basis points over CDOR/LIBOR/EURIBOR/Bankers Acceptance Stamping Fee as of June 30, 2021) and from 0 basis points to 12.5 basis points over the alternate base rate and Canadian prime rate, as applicable. The Company pays facility fees to maintain the availability under the Multi-Currency Revolving Credit Facility at specified rates based on its debt rating, ranging from 5 basis points to 12.5 basis points, annually, of the total commitment (11 basis points as of June 30, 2021). The Company may choose to repay or reduce its commitments under the Multi-Currency Revolving Credit Facility at any time. The Multi-Currency Revolving Credit Facility contains covenants, including compliance with a financial leverage ratio test, as well as others that impose limitations on, among other things, indebtedness of subsidiaries and asset sales, with which the Company was compliant as of June 30, 2021. Commercial Paper Program The Company has a commercial paper program whereby it may from time to time issue short-term promissory notes in an aggregate amount of up to $1.4 billion at any one time. Amounts available under the program may be borrowed, repaid, and re-borrowed from time to time. The maturities on the notes will vary, but may not exceed 365 days from the date of issuance. The notes will bear interest, if interest bearing, or will be sold at a discount from their face amounts. The commercial paper program does not increase the Company’s borrowing capacity as it is fully backed by the Company’s Multi-Currency Revolving Credit Facility. There were no borrowings outstanding under the commercial paper program as of June 30, 2021. Receivables Securitization Facility The Company has a $1,450 million receivables securitization facility ("Receivables Securitization Facility"), which is scheduled to expire in September 2022. The Company has available to it an accordion feature whereby the commitment on the Receivables Securitization Facility may be increased by up to $250 million, subject to lender approval, for seasonal needs during the December and March quarters. Interest rates are based on prevailing market rates for short-term commercial paper or LIBOR, plus a program fee. The Company pays a customary unused fee at prevailing market rates, annually, to maintain the availability under the Receivables Securitization Facility. The Receivables Securitization Facility contains similar covenants to the Multi-Currency Revolving Credit Facility, with which the Company was compliant as of June 30, 2021. 364-Day Revolving Credit Facility In February 2021, the Company entered into an agreement pursuant to which it obtained a $1.0 billion senior secured revolving credit facility ("364-Day Revolving Credit Facility") with a syndicate of lenders, which is scheduled to expire 364 days after June 1, 2021, the closing of the acquisition of a majority of WBA's Alliance Healthcare businesses. Interest on borrowings under the 364-Day Revolving Credit Facility accrues at specified rates based on the Company's debt rating and ranges from 83.5 basis points to 125 basis points (104.5 basis points as of June 30, 2021) over LIBOR and from 0 basis points to 25 basis points (4.5 basis points as of June 30, 2021) over the alternate base rate. The Company pays facility fees to maintain availability under the 364-Day Revolving Credit Facility at specified rates based on its debt rating, ranging from 4 basis points to 12.5 basis points (8 basis points as of June 30, 2021), annually, of the total commitment. The Company may choose to repay or reduce its commitments under the 364-Day Revolving Credit Facility at any time. The 364-Day Revolving Credit Facility contains a feature whereby the Company has the option to convert to a term loan the outstanding borrowings under this facility. The 364-Day Revolving Credit Facility contains covenants, including compliance with a financial leverage ratio test, as well as others that impose limitations on, among other things, indebtedness of subsidiaries and asset sales, with which the Company was compliant as of June 30, 2021. Revolving Credit Note and Overdraft Facility The Company has an uncommitted, unsecured line of credit available to it pursuant to a revolving credit note ("Revolving Credit Note"). The Revolving Credit Note provides the Company with the ability to request short-term unsecured revolving credit loans from time to time in a principal amount not to exceed $75 million. The Revolving Credit Note may be decreased or terminated by the bank or the Company at any time without prior notice. The Company also has an uncommitted U.K. overdraft facility ("Overdraft Facility") to fund short-term normal trading cycle fluctuations related to its MWI business. In February 2021, the Company extended the Overdraft Facility to February 2024 and reduced the borrowing capacity from £30 million to £10 million. Term Loans The $400 million October 2018 Term Loan matured and was repaid in October 2020. In February 2021, the Company entered into a $1.0 billion variable-rate term loan (“February 2021 Term Loan”), which was available to be drawn on the closing date of the acquisition of a majority of WBA's Alliance Healthcare businesses. In April 2021, the Company reduced its commitment under the February 2021 Term Loan to $500 million. In June 2021, the Company borrowed $500 million under the February 2021 Term Loan to finance a portion of the June 2021 Alliance Healthcare acquisition. The February 2021 Term Loan matures in June 2023. The February 2021 Term Loan bears interest at a rate equal either to a base rate plus a margin, or LIBOR, plus a margin. The margin is based on the public debt ratings of the Company and ranges from 87.5 basis points to 137.5 basis points (112.5 basis points as of June 30, 2021) over LIBOR and 0 basis points to 37.5 basis points (12.5 basis points as of June 30, 2021) over a base rate. The February 2021 Term Loan contains similar covenants to the Multi-Currency Revolving Credit Facility, with which the Company was compliant as of June 30, 2021. Senior Notes In March 2021, the Company issued $1,525 million of 0.737% senior notes due March 15, 2023 (the "2023 Notes"). The 2023 Notes were sold at 100.00% of the principal amount. Interest on the 2023 Notes is payable semi-annually in arrears, commencing on September 15, 2021. In March 2021, the Company issued $1,000 million of 2.700% senior notes due March 15, 2031 (the "2031 Notes"). The 2031 Notes were sold at 99.79% of the principal amount and have an effective yield of 2.706%. Interest on the 2031 Notes is payable semi-annually in arrears, commencing on September 15, 2021. The 2023 Notes and 2031 Notes rank pari passu to the Company's other senior notes, the Multi-Currency Revolving Credit Facility, the Revolving Credit Note, the Overdraft Facility, and the 364-Day Revolving Credit Facility. The Company used the proceeds from the 2023 Notes and the 2031 Notes to finance a portion of the June 2021 Alliance Healthcare acquisition. Alliance Healthcare Debt Alliance Healthcare debt is comprised of uncommitted revolving credit facilities in various currencies with various rates, the majority of which is held in Egypt and Turkey. These facilities are used to fund its working capital needs. Nonrecourse Debt Nonrecourse debt is comprised of short-term and long-term debt belonging to the Brazil subsidiaries and is repaid solely from the Brazil subsidiaries' cash flows and such debt agreements provide that the repayment of the loans (and interest thereon) is secured solely by the capital stock, physical assets, contracts, and cash flows of the Brazil subsidiaries.
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Stockholders' Equity and Earnings per Share |
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Stockholders' Equity and Earnings per Share | Stockholders’ Equity and Earnings per Share In October 2018, the Company's board of directors authorized a share repurchase program allowing the Company to purchase up to $1.0 billion of its outstanding shares of common stock, subject to market conditions. During the nine months ended June 30, 2021, the Company purchased 0.6 million shares of its common stock for a total of $55.5 million to complete its authorization under this program. In May 2020, the Company's board of directors authorized a share repurchase program allowing the Company to purchase up to $500 million of its outstanding shares of common stock, subject to market conditions. During the nine months ended June 30, 2021, the Company purchased 0.3 million shares of its common stock for a total of $26.6 million. As of June 30, 2021, the Company had $473.4 million of availability remaining under this program. Basic earnings per share is computed by dividing net income attributable to AmerisourceBergen Corporation by the weighted average number of shares of common stock outstanding during the periods presented. Diluted earnings per share is computed by dividing net income attributable to AmerisourceBergen Corporation by the weighted average number of shares of common stock outstanding, plus the dilutive effect of stock options and restricted stock units during the periods presented. The following illustrates the components of diluted weighted average shares outstanding for the periods indicated:
The potentially dilutive stock options and restricted stock units that were antidilutive for the three and nine months ended June 30, 2021 were none and 0.1 million, respectively. The potentially dilutive stock options and restricted stock units that were antidilutive for the three and nine months ended June 30, 2020 were 2.5 million and 3.6 million, respectively.
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Related Party Transactions |
9 Months Ended |
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Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions WBA owns more than 10% of the Company’s outstanding common stock and is, therefore, considered a related party. The Company operates under various agreements and arrangements with WBA, including a pharmaceutical distribution agreement pursuant to which the Company distributes pharmaceutical products to WBA and an agreement that provides the Company the ability to access favorable economic pricing and generic products through a generic purchasing services arrangement with Walgreens Boots Alliance Development GmbH (both through 2029) as well as a distribution agreement pursuant to which it will supply branded and generic pharmaceutical products to WBA’s Boots UK Ltd. subsidiary (through 2031). Revenue from the various agreements and arrangements with WBA was $16.4 billion and $48.9 billion in the three and nine months ended June 30, 2021, respectively. Revenue from the various agreements and arrangements with WBA was $15.2 billion and $47.0 billion in the three and nine months ended June 30, 2020, respectively. The Company’s receivable from WBA, net of incentives, was $6.7 billion and $6.6 billion as of June 30, 2021 and September 30, 2020, respectively.
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Employee Severance, Litigation, and Other |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Severance, Litigation, and Other | Employee Severance, Litigation, and Other The following illustrates the charges incurred by the Company relating to Employee Severance, Litigation, and Other for the periods indicated:
Employee severance in the three and nine months ended June 30, 2021 primarily relate to restructuring activities in the Company's Global Commercialization Services businesses. Employee severance in the nine months ended June 30, 2020 included costs primarily related to position eliminations resulting from the Company's decision to permanently exit the PharMEDium compounding business. Litigation and opioid-related costs in the three and nine months ended June 30, 2021 and 2020 related to legal fees in connection with opioid lawsuits and investigations. The three and nine months ended June 30, 2021 also included $124.3 million and $141.4 million, respectively, of accruals primarily related to the proposed opioid settlement (see Note 10). Acquisition-related deal and integration costs in the three and nine months ended June 30, 2021 primarily related to the June 2021 acquisition of Alliance Healthcare. Business transformation efforts in the three and nine months ended June 30, 2021 and 2020 primarily related to costs associated with reorganizing the Company to further align the organization to its customers' needs. The majority of these costs related to services provided by third-party consultants, including certain technology initiatives.
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Legal Matters and Contingencies |
9 Months Ended |
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Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | Legal Matters and Contingencies In the ordinary course of its business, the Company becomes involved in lawsuits, administrative proceedings, government subpoenas, government investigations, stockholder demands, and other disputes, including antitrust, commercial, product liability, intellectual property, regulatory, employment discrimination, and other matters. Significant damages or penalties may be sought from the Company in some matters, and some matters may require years for the Company to resolve. The Company records a reserve for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. For those matters for which the Company has not recognized a liability, the Company cannot predict the outcome of their impact on the Company as uncertainty remains with regard to whether such matters will proceed to trial, whether settlements will be reached, and the amount and terms of any such settlements. Outcomes may include settlements in significant amounts that are not currently estimable, limitations on the Company's conduct, the imposition of corporate integrity agreement obligations, consent decrees, and/or other civil and criminal penalties. From time to time, the Company is also involved in disputes with its customers, which the Company generally seeks to resolve through commercial negotiations. If negotiations are unsuccessful, the parties may litigate the dispute or otherwise attempt to settle the matter. With respect to the specific legal proceedings and claims described below, unless otherwise noted, the amount or range of possible losses is not reasonably estimable. There can be no assurance that the settlement, resolution, or other outcome of one or more matters, including the matters set forth below, during any subsequent reporting period will not have a material adverse effect on the Company's results of operations or cash flows for that period or on the Company's financial condition. Opioid Lawsuits and Investigations A significant number of counties, municipalities, and other governmental entities in a majority of U.S. states and Puerto Rico, as well as numerous states and tribes, have filed lawsuits in various federal, state and other courts against pharmaceutical wholesale distributors (including the Company and certain subsidiaries, such as AmerisourceBergen Drug Corporation ("ABDC") and H.D. Smith), pharmaceutical manufacturers, retail pharmacy chains, medical practices, and physicians relating to the distribution of prescription opioid pain medications. Other lawsuits regarding the distribution of prescription opioid pain medications have been filed by: third-party payors and similar entities; hospitals; hospital groups; and individuals, including cases styled as putative class actions. The lawsuits, which have been and continue to be filed in federal, state, and other courts, generally allege violations of controlled substance laws and various other statutes as well as common law claims, including negligence, public nuisance, and unjust enrichment, and seek equitable relief and monetary damages. An initial group of cases was consolidated for Multidistrict Litigation ("MDL") proceedings before the United States District Court for the Northern District of Ohio (the "Court") in December 2017. Additional cases have been, and will likely continue to be, transferred to the MDL. Further, in June 2018, the Court granted a motion permitting the United States, through the Department of Justice ("DOJ"), to participate in settlement discussions and as a friend of the Court by providing information to facilitate non-monetary remedies. In April 2018, the Court issued an order creating a litigation track, which includes dispositive motion practice, discovery, and trials in certain bellwether jurisdictions. In December 2018, the Court issued an order selecting two cases for a second bellwether discovery and trial track. In November 2019 and January 2020, the Court filed Suggestions of Remand with the Judicial Panel on Multidistrict Litigation that identified four cases filed against the Company, including the two cases in the second bellwether trial track, for potential transfer from the MDL back to federal courts in California, Oklahoma, and West Virginia for the completion of discovery, motion practice, and trial. All four cases have now been remanded to those federal district courts. The two consolidated cases in West Virginia commenced trial on May 3, 2021. The Oklahoma case, in which the plaintiff is the Cherokee Nation, is scheduled for trial in September 2022. On January 26, 2021, the California case was stayed as to the Company and several other defendants. As such, there is no applicable trial date for that case. On July 21, 2021, the Company announced that it and the two other national pharmaceutical distributors have negotiated a comprehensive proposed settlement agreement that, if all conditions are satisfied, would result in the resolution of a substantial majority of opioid lawsuits filed by state and local governmental entities. The proposed settlement agreement and settlement process is subject to conditions and will not become effective unless and until the Company and the two other distributors each make separate independent determinations that (1) following a 30-day sign-on period, a sufficient number of “States” (including the District of Columbia and U.S. territories) have agreed to the proposed settlement agreement (the “Settling States”); and, subsequently, (2) following a 120-day sign-on period, a sufficient number of political subdivisions in the Settling States, including those that have not sued, have agreed to the proposed settlement agreement (or otherwise had their claims foreclosed). If these conditions are satisfied, a final settlement agreement based upon the terms contained in the proposed settlement agreement would become effective sixty (60) days after the distributors determine that there is sufficient participation by political subdivisions in the Settling States. The proposed settlement agreement provides for a settlement of up to approximately $21 billion, of which the Company's portion would be 31.0%. Pursuant to the proposed settlement agreement, the Company would pay up to approximately $6.4 billion over 18 years and comply with other requirements, including establishment of a clearinghouse that will consolidate data from all three national distributors. The exact payment amount will depend on several factors, including the participation rate of states and political subdivisions, the extent to which states take action to foreclose opioid lawsuits by political subdivisions (e.g., laws barring opioid lawsuits by political subdivisions), and the extent to which political subdivisions in Settling States file additional opioid lawsuits against the distributors after a settlement agreement becomes effective. West Virginia subdivisions and Native American tribes are not a part of this settlement process and the Company has been involved in separate negotiations with these groups. The settlement process does not contemplate participation by any non-governmental or non-political entities or individuals. While the proposed settlement agreement remains subject to contingencies that could impact whether the parties ultimately decide to move forward, the Company believes a comprehensive settlement is probable and its loss related thereto can be reasonably estimated. The Company recorded a charge of $6.6 billion in the fourth quarter of the fiscal year ended September 30, 2020 within Employee Severance, Litigation and Other in its Statement of Operations related to the settlement as well as other opioid-related litigation. The Company recorded an additional $124.3 million and $141.4 million accrual in the three and nine months ended June 30, 2021, respectively, in connection with negotiation of the proposed settlement agreement and related obligations and other opioid-related litigation. The Company currently estimates that $477.0 million will be paid prior to June 30, 2022, which is recorded in Accrued Expenses and Other on the Company’s Consolidated Balance Sheet and that $443.0 million of the total $477.0 million short-term liability will be paid into escrow on or prior to September 30, 2021. The escrow payment related to the proposed settlement agreement will be disbursed following the effective date of the settlement, or returned to the Company if the settlement does not become effective. The remaining long-term liability of $6.3 billion is recorded in Accrued Litigation Liability on the Company's Consolidated Balance Sheet. While the Company has accrued its estimated liability for this matter, it is unable to estimate the range of possible loss associated with these opioid litigation matters. Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. The Company will regularly review these opioid litigation matters to determine whether its accrual is adequate. The amount of ultimate loss may differ materially from the $6.7 billion accrual. Until such time as all of the conditions to finalize the proposed settlement agreement are satisfied or the parties otherwise resolve the lawsuits, the Company will continue to litigate and prepare for trial in the cases pending in the MDL, those remanded from the MDL to federal district courts, as well as in state courts where lawsuits have been filed, and intends to continue to vigorously defend itself in all such cases. Since these matters are still developing, the Company is unable to predict the outcome, but the result of these lawsuits could include excessive monetary verdicts and/or injunctive relief that may affect the Company's operations. Further, any final settlement among parties may differ materially from the proposed settlement agreement. Notwithstanding the Company's total liability accrual of $6.7 billion, several cases filed in various state courts have trial dates scheduled in 2021 and later, although all such dates are subject to change. A trial in New York state for cases brought by Nassau and Suffolk Counties and the New York Attorney General against a variety of defendants, including the Company, which is not part of the MDL, commenced on June 28, 2021. On July 20, 2021, the Company and the two other distributors announced that they had reached an agreement to pay up to $1.179 billion in a settlement with the State of New York and participating subdivisions, including Nassau and Suffolk Counties, to resolve opioid-related claims, consistent with New York’s allocations under the proposed settlement agreement, as well as certain attorneys’ fees and costs. The Company's 31.0% share of the $1.179 billion settlement amount is a component of its overall $6.7 billion total liability accrual and a portion will be paid into escrow by September 30, 2021 and disbursed upon satisfaction of certain conditions including entry of a Consent Judgment. This escrow amount is also a component of the aforementioned $443.0 million payment to escrow. Under the settlement, claims in the New York state trial will be dismissed with prejudice as to the Company and the two other distributor defendants. A trial in Washington state court for a case brought by the Washington Attorney General against ABDC and certain other pharmaceutical wholesale distributors is scheduled to begin on September 7, 2021. A trial in Ohio state court for a case brought by the Ohio Attorney General against ABDC and certain other pharmaceutical wholesale distributors is scheduled to begin on September 20, 2021. Aside from those parties that have already filed suit, other entities, including additional attorneys general’s offices, counties, and cities in multiple states, may continue to file additional lawsuits or enforcement proceedings. The Company is vigorously defending itself in the pending lawsuits and intends to vigorously defend itself against any threatened lawsuits or enforcement proceedings. The Company has also received subpoenas, civil investigative demands, and other requests for information, requesting the production of documents regarding the distribution of prescription opioid pain medications from government agencies in other jurisdictions, including certain states. The Company has engaged in discussions with representatives from these government agencies regarding the requests and has been producing responsive documents. The Company cannot predict how these matters would be affected by a comprehensive nationwide settlement. Since July 2017, the Company has received subpoenas from several U.S. Attorney's Offices, including grand jury subpoenas from the U.S. Attorney's Office for the District of New Jersey ("USAO-NJ") and the U.S. Attorney's Office for the Eastern District of New York ("USAO-EDNY"). Those subpoenas request the production of a broad range of documents pertaining to the Company's distribution of controlled substances through its various subsidiaries, including ABDC, and its diversion control programs. The Company has been engaged in discussions with the various U.S. Attorney’s Offices, including the Health Care and Government Fraud Unit of the Criminal Division of the USAO-NJ, and has been producing documents in response to the subpoenas. Subpoenas, Ongoing Investigations, and Other Contingencies From time to time, the Company receives subpoenas or requests for information from various government agencies relating to the Company's business or to the business of a customer, supplier, or other industry participant. The Company's responses often require time and effort and can result in considerable costs being incurred. Most of these matters are resolved without incident; however, such subpoenas or requests can lead to the assertion of claims or the commencement of civil or criminal legal proceedings against the Company and other members of the healthcare industry, as well as to substantial settlements. In January 2017, the Company's subsidiary U.S. Bioservices Corporation ("U.S. Bio") received a subpoena for information from the USAO-EDNY relating to its activities in connection with billing for products and making returns of potential overpayments to government payers. A filed qui tam complaint related to the investigation was unsealed in April 2019 and the relator filed an amended complaint under seal in the U.S. District Court for the Eastern District of New York. In December 2019, the government filed a notice that it was declining to intervene. The court ordered that the relator's complaint against the Company, including subsidiaries AmerisourceBergen Specialty Group, LLC and U.S. Bio, be unsealed. The relator’s complaint alleged violations of the federal False Claims Act and the false claims acts of various states. The relator filed a second amended complaint, removing one state false claims act count. The Company filed a motion to dismiss the second amended complaint and all briefing on the motion was filed with the court on October 9, 2020. On October 11, 2019, Teamsters Local 443 Health Services & Insurance Plan, St. Paul Electrical Construction Pension Plan, St. Paul Electrical Construction Workers Supplemental Pension Plan (2014 Restatement), Retirement Medical Funding Plan for the St. Paul Electrical Workers, and San Antonio Fire & Police Pension Fund filed a complaint for a purported derivative action in the Delaware Court of Chancery against the Company and certain of its current and former officers and directors (collectively, "Defendants"). The complaint alleges that the Defendants breached their fiduciary duties by failing to oversee the compliance by certain of the Company's subsidiaries (including the Company's former subsidiary Medical Initiatives, Inc. ("MII")) with federal regulations, allegedly resulting in the payment of fines and penalties in connection with the settlements with the USAO-EDNY in fiscal 2017 and 2018 that resolved claims arising from MII's pre-filled syringe program. In December 2019, Defendants filed a motion to dismiss the complaint. After briefing and oral argument, on August 24, 2020 the Delaware Court of Chancery denied Defendants' motion to dismiss. On September 24, 2020, the Board of Directors of the Company established a Special Litigation Committee to conduct an investigation concerning the plaintiffs’ allegations. On October 28, 2020, the Special Litigation Committee filed a motion to stay the litigation pending completion of its investigation. On November 10, 2020, the Delaware Court of Chancery granted the Special Litigation Committee’s motion to stay the litigation until May 9, 2021. On May 7, 2021, the Delaware Court of Chancery extended the stay through May 28, 2021. On May 22, 2021, the Special Litigation Committee and Company filed a Joint Motion for Entry of Order Under Delaware Rule of Evidence 510(f) and Permitting Confidential Filing (“Rule 510(f) Motion”). On May 25, 2021, the parties filed a Stipulation and Proposed Order Regarding Further Extension of the Stay and Briefing of Rule 510(f) Motion, in which the parties agreed that the Special Litigation Committee’s deadline to file its report would be extended until three business days after the Court rules on the Special Litigation Committee’s and Company’s Rule 510(f) Motion. The Court granted the parties’ stipulation and proposed order on May 26, 2021. The Plaintiffs opposed the Rule 510(f) Motion on May 28, 2021. On June 2, 2021, the Special Litigation Committee and Company filed a reply in support of the Rule 510(f) Motion, which remains pending. On July 17, 2020, CCAR Investments, Inc. filed a complaint for a purported derivative action in the United States District Court for the District of Delaware against the Company and certain of its current and former officers and directors (“CCAR Defendants”). The complaint alleges claims for breach of fiduciary duty, corporate waste and unjust enrichment allegedly arising from the Company’s controlled substance diversion control programs and violation of Section 14(a) of the Securities Exchange Act of 1934. On August 14, 2020, the CCAR Defendants answered the complaint and filed a motion for judgment on the pleadings. On October 29, 2020 the parties filed a stipulation permitting CCAR Investments, Inc. to file an amended complaint on or before November 20, 2020. On December 4, 2020, the parties filed a stipulation staying the deadline for CCAR Investments, Inc. to file an amended complaint pending the Company’s production of certain documents to CCAR Investments, Inc. The Company’s production was completed on January 29, 2021 and the case remains stayed while the plaintiff completes its review. In December 2019, Reliable Pharmacy, together with other retail pharmacies and North Sunflower Medical Center, filed a civil antitrust complaint against multiple generic drug manufacturers, and also included claims against the Company, H.D. Smith, and other drug distributors and industry participants. The case is filed as a putative class action and plaintiffs purport to represent a class of drug purchasers including other retail pharmacies and healthcare providers. The case has been consolidated for multidistrict litigation proceedings before the United States District Court for the Eastern District of Pennsylvania. The complaint alleges that the Company and others in the industry participated in a conspiracy to fix prices, allocate markets and rig bids regarding generic drugs. In March 2020, the plaintiffs filed a further amended complaint. On July 15, 2020, the Company and other industry participants filed a motion to dismiss the complaint. The motion to dismiss is fully briefed and the parties are awaiting a ruling from the court. Litigation SettlementsAntitrust Settlements |
Litigation Settlements |
9 Months Ended |
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Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation Settlements | Legal Matters and Contingencies In the ordinary course of its business, the Company becomes involved in lawsuits, administrative proceedings, government subpoenas, government investigations, stockholder demands, and other disputes, including antitrust, commercial, product liability, intellectual property, regulatory, employment discrimination, and other matters. Significant damages or penalties may be sought from the Company in some matters, and some matters may require years for the Company to resolve. The Company records a reserve for these matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. For those matters for which the Company has not recognized a liability, the Company cannot predict the outcome of their impact on the Company as uncertainty remains with regard to whether such matters will proceed to trial, whether settlements will be reached, and the amount and terms of any such settlements. Outcomes may include settlements in significant amounts that are not currently estimable, limitations on the Company's conduct, the imposition of corporate integrity agreement obligations, consent decrees, and/or other civil and criminal penalties. From time to time, the Company is also involved in disputes with its customers, which the Company generally seeks to resolve through commercial negotiations. If negotiations are unsuccessful, the parties may litigate the dispute or otherwise attempt to settle the matter. With respect to the specific legal proceedings and claims described below, unless otherwise noted, the amount or range of possible losses is not reasonably estimable. There can be no assurance that the settlement, resolution, or other outcome of one or more matters, including the matters set forth below, during any subsequent reporting period will not have a material adverse effect on the Company's results of operations or cash flows for that period or on the Company's financial condition. Opioid Lawsuits and Investigations A significant number of counties, municipalities, and other governmental entities in a majority of U.S. states and Puerto Rico, as well as numerous states and tribes, have filed lawsuits in various federal, state and other courts against pharmaceutical wholesale distributors (including the Company and certain subsidiaries, such as AmerisourceBergen Drug Corporation ("ABDC") and H.D. Smith), pharmaceutical manufacturers, retail pharmacy chains, medical practices, and physicians relating to the distribution of prescription opioid pain medications. Other lawsuits regarding the distribution of prescription opioid pain medications have been filed by: third-party payors and similar entities; hospitals; hospital groups; and individuals, including cases styled as putative class actions. The lawsuits, which have been and continue to be filed in federal, state, and other courts, generally allege violations of controlled substance laws and various other statutes as well as common law claims, including negligence, public nuisance, and unjust enrichment, and seek equitable relief and monetary damages. An initial group of cases was consolidated for Multidistrict Litigation ("MDL") proceedings before the United States District Court for the Northern District of Ohio (the "Court") in December 2017. Additional cases have been, and will likely continue to be, transferred to the MDL. Further, in June 2018, the Court granted a motion permitting the United States, through the Department of Justice ("DOJ"), to participate in settlement discussions and as a friend of the Court by providing information to facilitate non-monetary remedies. In April 2018, the Court issued an order creating a litigation track, which includes dispositive motion practice, discovery, and trials in certain bellwether jurisdictions. In December 2018, the Court issued an order selecting two cases for a second bellwether discovery and trial track. In November 2019 and January 2020, the Court filed Suggestions of Remand with the Judicial Panel on Multidistrict Litigation that identified four cases filed against the Company, including the two cases in the second bellwether trial track, for potential transfer from the MDL back to federal courts in California, Oklahoma, and West Virginia for the completion of discovery, motion practice, and trial. All four cases have now been remanded to those federal district courts. The two consolidated cases in West Virginia commenced trial on May 3, 2021. The Oklahoma case, in which the plaintiff is the Cherokee Nation, is scheduled for trial in September 2022. On January 26, 2021, the California case was stayed as to the Company and several other defendants. As such, there is no applicable trial date for that case. On July 21, 2021, the Company announced that it and the two other national pharmaceutical distributors have negotiated a comprehensive proposed settlement agreement that, if all conditions are satisfied, would result in the resolution of a substantial majority of opioid lawsuits filed by state and local governmental entities. The proposed settlement agreement and settlement process is subject to conditions and will not become effective unless and until the Company and the two other distributors each make separate independent determinations that (1) following a 30-day sign-on period, a sufficient number of “States” (including the District of Columbia and U.S. territories) have agreed to the proposed settlement agreement (the “Settling States”); and, subsequently, (2) following a 120-day sign-on period, a sufficient number of political subdivisions in the Settling States, including those that have not sued, have agreed to the proposed settlement agreement (or otherwise had their claims foreclosed). If these conditions are satisfied, a final settlement agreement based upon the terms contained in the proposed settlement agreement would become effective sixty (60) days after the distributors determine that there is sufficient participation by political subdivisions in the Settling States. The proposed settlement agreement provides for a settlement of up to approximately $21 billion, of which the Company's portion would be 31.0%. Pursuant to the proposed settlement agreement, the Company would pay up to approximately $6.4 billion over 18 years and comply with other requirements, including establishment of a clearinghouse that will consolidate data from all three national distributors. The exact payment amount will depend on several factors, including the participation rate of states and political subdivisions, the extent to which states take action to foreclose opioid lawsuits by political subdivisions (e.g., laws barring opioid lawsuits by political subdivisions), and the extent to which political subdivisions in Settling States file additional opioid lawsuits against the distributors after a settlement agreement becomes effective. West Virginia subdivisions and Native American tribes are not a part of this settlement process and the Company has been involved in separate negotiations with these groups. The settlement process does not contemplate participation by any non-governmental or non-political entities or individuals. While the proposed settlement agreement remains subject to contingencies that could impact whether the parties ultimately decide to move forward, the Company believes a comprehensive settlement is probable and its loss related thereto can be reasonably estimated. The Company recorded a charge of $6.6 billion in the fourth quarter of the fiscal year ended September 30, 2020 within Employee Severance, Litigation and Other in its Statement of Operations related to the settlement as well as other opioid-related litigation. The Company recorded an additional $124.3 million and $141.4 million accrual in the three and nine months ended June 30, 2021, respectively, in connection with negotiation of the proposed settlement agreement and related obligations and other opioid-related litigation. The Company currently estimates that $477.0 million will be paid prior to June 30, 2022, which is recorded in Accrued Expenses and Other on the Company’s Consolidated Balance Sheet and that $443.0 million of the total $477.0 million short-term liability will be paid into escrow on or prior to September 30, 2021. The escrow payment related to the proposed settlement agreement will be disbursed following the effective date of the settlement, or returned to the Company if the settlement does not become effective. The remaining long-term liability of $6.3 billion is recorded in Accrued Litigation Liability on the Company's Consolidated Balance Sheet. While the Company has accrued its estimated liability for this matter, it is unable to estimate the range of possible loss associated with these opioid litigation matters. Because loss contingencies are inherently unpredictable and unfavorable developments or resolutions can occur, the assessment is highly subjective and requires judgments about future events. The Company will regularly review these opioid litigation matters to determine whether its accrual is adequate. The amount of ultimate loss may differ materially from the $6.7 billion accrual. Until such time as all of the conditions to finalize the proposed settlement agreement are satisfied or the parties otherwise resolve the lawsuits, the Company will continue to litigate and prepare for trial in the cases pending in the MDL, those remanded from the MDL to federal district courts, as well as in state courts where lawsuits have been filed, and intends to continue to vigorously defend itself in all such cases. Since these matters are still developing, the Company is unable to predict the outcome, but the result of these lawsuits could include excessive monetary verdicts and/or injunctive relief that may affect the Company's operations. Further, any final settlement among parties may differ materially from the proposed settlement agreement. Notwithstanding the Company's total liability accrual of $6.7 billion, several cases filed in various state courts have trial dates scheduled in 2021 and later, although all such dates are subject to change. A trial in New York state for cases brought by Nassau and Suffolk Counties and the New York Attorney General against a variety of defendants, including the Company, which is not part of the MDL, commenced on June 28, 2021. On July 20, 2021, the Company and the two other distributors announced that they had reached an agreement to pay up to $1.179 billion in a settlement with the State of New York and participating subdivisions, including Nassau and Suffolk Counties, to resolve opioid-related claims, consistent with New York’s allocations under the proposed settlement agreement, as well as certain attorneys’ fees and costs. The Company's 31.0% share of the $1.179 billion settlement amount is a component of its overall $6.7 billion total liability accrual and a portion will be paid into escrow by September 30, 2021 and disbursed upon satisfaction of certain conditions including entry of a Consent Judgment. This escrow amount is also a component of the aforementioned $443.0 million payment to escrow. Under the settlement, claims in the New York state trial will be dismissed with prejudice as to the Company and the two other distributor defendants. A trial in Washington state court for a case brought by the Washington Attorney General against ABDC and certain other pharmaceutical wholesale distributors is scheduled to begin on September 7, 2021. A trial in Ohio state court for a case brought by the Ohio Attorney General against ABDC and certain other pharmaceutical wholesale distributors is scheduled to begin on September 20, 2021. Aside from those parties that have already filed suit, other entities, including additional attorneys general’s offices, counties, and cities in multiple states, may continue to file additional lawsuits or enforcement proceedings. The Company is vigorously defending itself in the pending lawsuits and intends to vigorously defend itself against any threatened lawsuits or enforcement proceedings. The Company has also received subpoenas, civil investigative demands, and other requests for information, requesting the production of documents regarding the distribution of prescription opioid pain medications from government agencies in other jurisdictions, including certain states. The Company has engaged in discussions with representatives from these government agencies regarding the requests and has been producing responsive documents. The Company cannot predict how these matters would be affected by a comprehensive nationwide settlement. Since July 2017, the Company has received subpoenas from several U.S. Attorney's Offices, including grand jury subpoenas from the U.S. Attorney's Office for the District of New Jersey ("USAO-NJ") and the U.S. Attorney's Office for the Eastern District of New York ("USAO-EDNY"). Those subpoenas request the production of a broad range of documents pertaining to the Company's distribution of controlled substances through its various subsidiaries, including ABDC, and its diversion control programs. The Company has been engaged in discussions with the various U.S. Attorney’s Offices, including the Health Care and Government Fraud Unit of the Criminal Division of the USAO-NJ, and has been producing documents in response to the subpoenas. Subpoenas, Ongoing Investigations, and Other Contingencies From time to time, the Company receives subpoenas or requests for information from various government agencies relating to the Company's business or to the business of a customer, supplier, or other industry participant. The Company's responses often require time and effort and can result in considerable costs being incurred. Most of these matters are resolved without incident; however, such subpoenas or requests can lead to the assertion of claims or the commencement of civil or criminal legal proceedings against the Company and other members of the healthcare industry, as well as to substantial settlements. In January 2017, the Company's subsidiary U.S. Bioservices Corporation ("U.S. Bio") received a subpoena for information from the USAO-EDNY relating to its activities in connection with billing for products and making returns of potential overpayments to government payers. A filed qui tam complaint related to the investigation was unsealed in April 2019 and the relator filed an amended complaint under seal in the U.S. District Court for the Eastern District of New York. In December 2019, the government filed a notice that it was declining to intervene. The court ordered that the relator's complaint against the Company, including subsidiaries AmerisourceBergen Specialty Group, LLC and U.S. Bio, be unsealed. The relator’s complaint alleged violations of the federal False Claims Act and the false claims acts of various states. The relator filed a second amended complaint, removing one state false claims act count. The Company filed a motion to dismiss the second amended complaint and all briefing on the motion was filed with the court on October 9, 2020. On October 11, 2019, Teamsters Local 443 Health Services & Insurance Plan, St. Paul Electrical Construction Pension Plan, St. Paul Electrical Construction Workers Supplemental Pension Plan (2014 Restatement), Retirement Medical Funding Plan for the St. Paul Electrical Workers, and San Antonio Fire & Police Pension Fund filed a complaint for a purported derivative action in the Delaware Court of Chancery against the Company and certain of its current and former officers and directors (collectively, "Defendants"). The complaint alleges that the Defendants breached their fiduciary duties by failing to oversee the compliance by certain of the Company's subsidiaries (including the Company's former subsidiary Medical Initiatives, Inc. ("MII")) with federal regulations, allegedly resulting in the payment of fines and penalties in connection with the settlements with the USAO-EDNY in fiscal 2017 and 2018 that resolved claims arising from MII's pre-filled syringe program. In December 2019, Defendants filed a motion to dismiss the complaint. After briefing and oral argument, on August 24, 2020 the Delaware Court of Chancery denied Defendants' motion to dismiss. On September 24, 2020, the Board of Directors of the Company established a Special Litigation Committee to conduct an investigation concerning the plaintiffs’ allegations. On October 28, 2020, the Special Litigation Committee filed a motion to stay the litigation pending completion of its investigation. On November 10, 2020, the Delaware Court of Chancery granted the Special Litigation Committee’s motion to stay the litigation until May 9, 2021. On May 7, 2021, the Delaware Court of Chancery extended the stay through May 28, 2021. On May 22, 2021, the Special Litigation Committee and Company filed a Joint Motion for Entry of Order Under Delaware Rule of Evidence 510(f) and Permitting Confidential Filing (“Rule 510(f) Motion”). On May 25, 2021, the parties filed a Stipulation and Proposed Order Regarding Further Extension of the Stay and Briefing of Rule 510(f) Motion, in which the parties agreed that the Special Litigation Committee’s deadline to file its report would be extended until three business days after the Court rules on the Special Litigation Committee’s and Company’s Rule 510(f) Motion. The Court granted the parties’ stipulation and proposed order on May 26, 2021. The Plaintiffs opposed the Rule 510(f) Motion on May 28, 2021. On June 2, 2021, the Special Litigation Committee and Company filed a reply in support of the Rule 510(f) Motion, which remains pending. On July 17, 2020, CCAR Investments, Inc. filed a complaint for a purported derivative action in the United States District Court for the District of Delaware against the Company and certain of its current and former officers and directors (“CCAR Defendants”). The complaint alleges claims for breach of fiduciary duty, corporate waste and unjust enrichment allegedly arising from the Company’s controlled substance diversion control programs and violation of Section 14(a) of the Securities Exchange Act of 1934. On August 14, 2020, the CCAR Defendants answered the complaint and filed a motion for judgment on the pleadings. On October 29, 2020 the parties filed a stipulation permitting CCAR Investments, Inc. to file an amended complaint on or before November 20, 2020. On December 4, 2020, the parties filed a stipulation staying the deadline for CCAR Investments, Inc. to file an amended complaint pending the Company’s production of certain documents to CCAR Investments, Inc. The Company’s production was completed on January 29, 2021 and the case remains stayed while the plaintiff completes its review. In December 2019, Reliable Pharmacy, together with other retail pharmacies and North Sunflower Medical Center, filed a civil antitrust complaint against multiple generic drug manufacturers, and also included claims against the Company, H.D. Smith, and other drug distributors and industry participants. The case is filed as a putative class action and plaintiffs purport to represent a class of drug purchasers including other retail pharmacies and healthcare providers. The case has been consolidated for multidistrict litigation proceedings before the United States District Court for the Eastern District of Pennsylvania. The complaint alleges that the Company and others in the industry participated in a conspiracy to fix prices, allocate markets and rig bids regarding generic drugs. In March 2020, the plaintiffs filed a further amended complaint. On July 15, 2020, the Company and other industry participants filed a motion to dismiss the complaint. The motion to dismiss is fully briefed and the parties are awaiting a ruling from the court. Litigation SettlementsAntitrust Settlements |
Fair Value of Financial Instruments |
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Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The recorded amounts of the Company's cash and cash equivalents, accounts receivable, and accounts payable as of June 30, 2021 and September 30, 2020 approximate fair value based upon the relatively short-term nature of these financial instruments. Within Cash and Cash Equivalents, the Company had $644.0 million of investments in money market accounts as of June 30, 2021 and had $2,548.0 million of investments in money market accounts as of September 30, 2020. The fair value of the money market accounts was determined based upon unadjusted quoted prices in active markets for identical assets, otherwise known as Level 1 inputs. The recorded amount of long-term debt (see Note 6) and the corresponding fair value as of June 30, 2021 were $6,647.2 million and $7,008.3 million, respectively. The recorded amount of long-term debt and the corresponding fair value as of September 30, 2020 were $3,618.3 million and $4,026.4 million, respectively. The fair value of long-term debt was determined based upon inputs other than quoted prices, otherwise known as Level 2 inputs.
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Business Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information The Company is organized based upon the products and services it provides to its customers. The Company's operations are comprised of the Pharmaceutical Distribution Services reportable segment and other operating segments that are not significant enough to require separate reportable segment disclosure and, therefore, have been included in Other for the purpose of reportable segment presentation. Other consists of operating segments that focus on global commercialization services, animal health (MWI Animal Health), and international pharmaceutical wholesale and related service operations (Alliance Healthcare). The operating segments that focus on global commercialization services include AmerisourceBergen Consulting Services and World Courier. The following illustrates reportable and operating segment disaggregated revenue as required by Accounting Standards Codification 606 for the periods indicated:
Intersegment eliminations primarily represent the elimination of certain Pharmaceutical Distribution Services reportable segment sales to MWI Animal Health. The following illustrates reportable segment operating income for the periods indicated:
The following reconciles total segment operating income to income before income taxes for the periods indicated:
Segment operating income is evaluated by the chief operating decision maker ("CODM") of the Company before gains from antitrust litigation settlements; LIFO credit (expense); PharMEDium remediation costs; PharMEDium shutdown costs; contingent consideration adjustment; acquisition-related intangibles amortization; employee severance, litigation, and other; and impairment of PharMEDium assets. All corporate office expenses are allocated to the operating segment level. The Company incurred remediation costs in connection with the suspended production activities at PharMEDium in the nine months ended June 30, 2020. These remediation costs are primarily classified in Cost of Goods Sold in the Consolidated Statements of Operations. The Company incurred costs in connection with exiting the PharMEDium compounding business in the three and nine months ended June 30, 2020. These shutdown costs are primarily classified in Distribution, Selling, and Administrative expenses in the Consolidated Statements of Operations. One of the Company's non-wholly-owned subsidiaries, Profarma, which the Company consolidates based on certain governance rights (see Note 3), adjusted its previous estimate of contingent consideration related to the purchase price of one of its prior business acquisitions in the nine months ended June 30, 2020. The Company recorded foreign currency income of $6.2 million in the three months ended June 30, 2021 and a foreign currency loss of $1.1 million in the nine months ended June 30, 2021 on the remeasurement of deferred tax assets relating to Swiss tax reform in Other (Income) Loss, Net in the Consolidated Statements of Operations.
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Summary of Significant Accounting Policies (Policies) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying financial statements present the consolidated financial position, results of operations, and cash flows of AmerisourceBergen Corporation and its subsidiaries, including less-than-wholly-owned subsidiaries in which AmerisourceBergen Corporation has a controlling financial interest (the "Company"), as of the dates and for the periods indicated. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information, the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting only of normal recurring accruals, except as otherwise disclosed herein) considered necessary to present fairly the financial position as of June 30, 2021 and the results of operations and cash flows for the interim periods ended June 30, 2021 and 2020 have been included. Certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP, but which are not required for interim reporting purposes, have been omitted. The accompanying unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020.
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Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual amounts could differ from these estimated amounts. Certain reclassifications have been made to prior-period amounts in order to conform to the current year presentation. Restricted Cash The Company's Alliance Healthcare (see Note 2) business is required to maintain certain cash deposits with banks mainly consisting of deposits restricted under contractual agency agreements and cash restricted by law and other obligations. The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows:
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Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Restricted Cash The Company's Alliance Healthcare (see Note 2) business is required to maintain certain cash deposits with banks mainly consisting of deposits restricted under contractual agency agreements and cash restricted by law and other obligations.
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Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amounts. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. ASU 2016-13 was effective for annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years, and a modified retrospective approach was required, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance was effective. The Company adopted ASU 2016-13 as of October 1, 2020. In connection with the adoption of ASU 2016-13, the Company recognized a $21.1 million, net of tax of $6.1 million, cumulative adjustment to retained earnings. The Company evaluates its receivables for risk of loss by grouping its receivables with similar risk characteristics. Expected losses are determined based on a combination of historical loss trends, current economic conditions, and forward-looking risk factors. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles in ASC 740 in order to reduce the cost and complexity of its application. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those fiscal years, with certain amendments applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption, and others prospectively. Early adoption of this guidance is permitted, including the adoption in any interim period for public companies for periods for which financial statements have not yet been issued. The Company is currently evaluating the impact of adopting this new accounting guidance. As of June 30, 2021, there were no other recently-issued accounting standards that may have a material impact on the Company’s financial position, results of operations, cash flows, or notes to the financial statements upon their adoption.
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Summary of Significant Accounting Policies (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash and cash equivalents | The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows:
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Restrictions on cash and cash equivalents | The following represents a reconciliation of cash and cash equivalents in the Consolidated Balance Sheets to cash, cash equivalents, and restricted cash in the Consolidated Statements of Cash Flows:
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Acquisition (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule assets acquired and liabilities assumed | The purchase price has been preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of the acquisition in the table that follows. The preliminary allocation is pending the finalization of the third-party appraisals of intangible assets and the corresponding deferred taxes, as well as the finalization of working capital account balances and lease right-of-use assets and liabilities. There can be no assurance that the estimated amounts recorded will represent the final purchase price allocation.
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Schedule of fair value of the intangible assets acquired | The estimated fair value of the intangible assets acquired of $3.7 billion and the estimated useful lives are as follows:
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Variable Interest Entity (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of VIE's assets and liabilities | The following assets and liabilities of Profarma are included in the Company's Consolidated Balance Sheets:
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the carrying value of goodwill by reportable segment | The following is a summary of the changes in the carrying value of goodwill, by reportable segment, for the nine months ended June 30, 2021:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of indefinite-lived intangible assets | The following is a summary of other intangible assets:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of finite-lived intangible assets | The following is a summary of other intangible assets:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt instruments | Debt consisted of the following:
|
Stockholders' Equity and Earnings per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average number of common shares outstanding | The following illustrates the components of diluted weighted average shares outstanding for the periods indicated:
|
Employee Severance, Litigation, and Other (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee severance, litigation, and other charge | The following illustrates the charges incurred by the Company relating to Employee Severance, Litigation, and Other for the periods indicated:
|
Business Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment revenue | The following illustrates reportable and operating segment disaggregated revenue as required by Accounting Standards Codification 606 for the periods indicated:
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Segment operating income | The following illustrates reportable segment operating income for the periods indicated:
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Reconciliation of total segment operating income to income (loss) from operations before income taxes | The following reconciles total segment operating income to income before income taxes for the periods indicated:
|
Summary of Significant Accounting Policies - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 2,553,217 | $ 4,597,746 | ||
Restricted cash (included in Prepaid Expenses and Other) | 128,526 | 0 | ||
Cash, cash equivalents, and restricted cash | $ 2,681,743 | $ 4,597,746 | $ 3,420,272 | $ 3,374,194 |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands |
Oct. 01, 2020 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative adjustment to retained earnings | $ 408,441 | $ (102,782) | $ (839,636) | $ 3,967,951 | $ 3,705,113 | $ 2,993,206 | |
Adoption of ASC | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative adjustment to retained earnings | $ 21,100 | $ (24,094) | $ 35,138 | ||||
Cumulative adjustment to retained earnings, tax | $ 6,100 |
Acquisition - Fair Value Of Intangible Assets (Details) - WBA Alliance Healthcare $ in Thousands |
Jun. 01, 2021
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 3,735,000 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 3,327,000 |
Weighted-Average Useful Life | 18 years |
Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 408,000 |
Weighted-Average Useful Life | 11 years |
Variable Interest Entity - Financial Position of Variable Interest Entity (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | $ 2,681,743 | $ 4,597,746 | $ 3,420,272 | $ 3,374,194 |
Inventories | 14,996,364 | 12,589,278 | ||
Property and equipment, net | 2,143,080 | 1,484,808 | ||
Goodwill | 9,132,723 | 6,706,719 | ||
Other long-term assets | 1,668,502 | 779,854 | ||
TOTAL ASSETS | 55,930,936 | 44,274,830 | ||
Long-term debt | 7,102,792 | 4,119,520 | ||
Deferred income taxes | 1,671,696 | 686,485 | ||
Other long-term liabilities | 1,058,767 | 472,855 | ||
Profarma | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents | 35,498 | 96,983 | ||
Accounts receivables, net | 159,245 | 120,486 | ||
Inventories | 209,911 | 144,059 | ||
Prepaid expenses and other | 74,781 | 52,885 | ||
Property and equipment, net | 31,017 | 23,584 | ||
Goodwill | 82,309 | 82,309 | ||
Other intangible assets | 71,886 | 73,543 | ||
Other long-term assets | 74,629 | 53,513 | ||
TOTAL ASSETS | 739,276 | 647,362 | ||
Accounts payable | 169,576 | 141,147 | ||
Accrued expenses and other | 39,901 | 34,415 | ||
Short-term debt | 96,802 | 98,399 | ||
Long-term debt | 67,828 | 44,144 | ||
Deferred income taxes | 37,985 | 38,854 | ||
Other long-term liabilities | 60,427 | 43,413 | ||
Total liabilities | $ 472,519 | $ 400,372 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Deferred tax expense | $ 127.6 | $ 127.6 | ||
Unrecognized tax benefits | 512.8 | 512.8 | ||
Unrecognized tax benefits, net of federal benefit | 464.8 | 464.8 | ||
Tax benefits that would reduce income tax expense and effective tax rate | 446.5 | 446.5 | ||
Unrecognized tax benefits - interest and penalties | 22.8 | 22.8 | ||
Unrecognized tax benefits - increase | 14.5 | |||
Significant change in unrecognized tax benefits is reasonably possible | $ 16.8 | $ 16.8 | ||
Effective tax rate (as a percentage) | 48.50% | 16.50% | 33.60% | (70.10%) |
Goodwill and Other Intangible Assets - Schedule of Change in the Carrying Value of Goodwill by Reportable Segment (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 6,706,719 |
Goodwill recognized in connection with acquisitions (see Note 2) | 2,488,802 |
Foreign currency translation | (62,798) |
Goodwill, ending balance | 9,132,723 |
Pharmaceutical Distribution Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 4,852,775 |
Goodwill recognized in connection with acquisitions (see Note 2) | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | 4,852,775 |
Other | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,853,944 |
Goodwill recognized in connection with acquisitions (see Note 2) | 2,488,802 |
Foreign currency translation | (62,798) |
Goodwill, ending balance | $ 4,279,948 |
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Sep. 30, 2020 |
|
Finite-lived | ||
Accumulated Amortization | $ (778,072) | $ (681,487) |
Intangible Assets | ||
Gross Carrying Amount | 6,215,897 | 2,567,594 |
Net Carrying Amount | 5,437,825 | 1,886,107 |
Trade names | ||
Indefinite-lived intangibles | ||
Indefinite-lived trade names | $ 685,470 | 685,312 |
Customer relationships | ||
Finite-lived | ||
Weighted Average Remaining Useful Life | 16 years | |
Gross Carrying Amount | $ 4,919,920 | 1,671,888 |
Accumulated Amortization | (648,733) | (565,372) |
Net Carrying Amount | $ 4,271,187 | 1,106,516 |
Trade names and other | ||
Finite-lived | ||
Weighted Average Remaining Useful Life | 12 years | |
Gross Carrying Amount | $ 610,507 | 210,394 |
Accumulated Amortization | (129,339) | (116,115) |
Net Carrying Amount | $ 481,168 | $ 94,279 |
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 44,781 | $ 25,821 | $ 95,916 | $ 85,091 |
Amortization expense, fiscal year maturity | ||||
2021 | 178,700 | 178,700 | ||
2022 | 330,300 | 330,300 | ||
2023 | 328,800 | 328,800 | ||
2024 | 327,100 | 327,100 | ||
2025 | 326,100 | 326,100 | ||
Thereafter | $ 3,357,200 | $ 3,357,200 |
Stockholders' Equity and Earnings per Share - Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Equity [Abstract] | ||||
Weighted average common shares outstanding - basic (shares) | 206,156 | 203,654 | 205,255 | 205,017 |
Dilutive effect of stock options, restricted stock, and restricted stock units (shares) | 2,756 | 1,890 | 2,424 | 1,697 |
Weighted average common shares outstanding - diluted (shares) | 208,912 | 205,544 | 207,679 | 206,714 |
Related Party Transactions (Details) - Investor - USD ($) $ in Billions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Sep. 30, 2020 |
|
WBA Alliance Healthcare | AmerisourceBergen | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage (more than) | 10.00% | 10.00% | |||
WBA Alliance Healthcare | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related party | $ 16.4 | $ 15.2 | $ 48.9 | $ 47.0 | |
Receivable from related party | $ 6.7 | $ 6.7 | $ 6.6 |
Employee Severance, Litigation, and Other (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Employee severance | $ 6,720 | $ 6,523 | $ 6,720 | $ 32,368 |
Litigation and opioid-related costs | 153,225 | 31,369 | 227,275 | 86,850 |
Total employee severance, litigation, and other | 226,964 | 58,585 | 375,501 | 165,626 |
Acquisition-related deal and integration costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition related costs | 54,674 | 8,306 | 97,149 | 9,109 |
Business transformation efforts | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition related costs | 14,654 | 9,443 | 37,738 | 26,937 |
Other restructuring costs, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Acquisition related costs | (2,309) | $ 2,944 | 6,619 | $ 10,362 |
Accrual related to injunctive relief terms | MDL opioid settlement | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Litigation and opioid-related costs | $ 124,300 | $ 141,400 |
Litigation Settlements (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Gains from antitrust litigation settlements | $ 147.4 | $ 147.4 | $ 8.5 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions |
Jun. 30, 2021 |
Sep. 30, 2020 |
---|---|---|
Estimate of fair value measurement | Level 2 inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 7,008.3 | $ 4,026.4 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 6,647.2 | 3,618.3 |
Money market | Estimate of fair value measurement | Level 1 inputs | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 644.0 | $ 2,548.0 |
Business Segment Information - Segment Operating Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ 620,727 | $ 404,831 | $ 1,792,302 | $ 977,783 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | 630,621 | 507,522 | 1,954,095 | 1,674,473 |
Operating segments | Pharmaceutical Distribution Services | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | 483,914 | 426,643 | 1,569,014 | 1,381,434 |
Operating segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | 146,869 | 82,875 | 391,696 | 295,614 |
Intersegment eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total segment operating income | $ (162) | $ (1,996) | $ (6,615) | $ (2,575) |
Business Segment Information - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
|
Segment Reporting [Abstract] | ||
Foreign currency losses | $ 6.2 | $ 1.1 |
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