Guarantor Subsidiaries (Tables)

3 Months Ended

Sep. 30, 2012

Summary Consolidating Statements of Income (Guaranteed Senior Notes Payable)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	Three months ended September 30,
2012:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	1,467,240		$	34,108		$	—		$	1,501,348
Cost of sales	—			1,108,650			21,403			—			1,130,053
Gross profit	—			358,590			12,705			—			371,295
Selling, general and administrative expenses	988			196,993			5,569			—			203,550
Provision for doubtful accounts	—			23,591			456			—			24,047
Settlement, litigation and other related charges	—			4,931			—			—			4,931
Other charges	—			14,951			(9,915		)	—			5,036
Operating income (loss)	(988		)	118,124			16,595			—			133,731
Interest expense, net of investment income	(37,625		)	(1,359		)	(52		)	—			(39,036		)
Income (loss) from continuing operations before income taxes	(38,613		)	116,765			16,543			—			94,695
Income tax (benefit) expense	(15,116		)	45,717			2,669			—			33,270
Income (loss) from continuing operations	(23,497		)	71,048			13,874			—			61,425
Equity of net income of subsidiaries	84,922			—			—			(84,922		)	—
Net income	$	61,425		$	71,048		$	13,874		$	(84,922	)	$	61,425
Comprehensive Income	$	63,354		$	71,048		$	15,801		$	(86,849	)	$	63,354
2011:
Net sales	$	—		$	1,513,594		$	30,766		$	—		$	1,544,360
Cost of sales	—			1,176,595			21,704			—			1,198,299
Gross profit	—			336,999			9,062			—			346,061
Selling, general and administrative expenses	2,666			183,931			4,696			—			191,293
Provision for doubtful accounts	—			23,767			488			—			24,255
Settlement, litigation and other related charges	—			6,742			—			—			6,742
Other charges	—			6,718			—			—			6,718
Operating income (loss)	(2,666		)	115,841			3,878			—			117,053
Interest expense, net of investment income	(55,578		)	(348		)	—			—			(55,926		)
Income (loss) from continuing operations before income taxes	(58,244		)	115,493			3,878			—			61,127
Income tax (benefit) expense	(22,447		)	44,277			1,513			—			23,343
Income (loss) from continuing operations	(35,797		)	71,216			2,365			—			37,784
Loss from discontinued operations	—			(9,559		)	(341		)	—			(9,900		)
Equity of net income of subsidiaries	63,681			—			—			(63,681		)	—
Net income	$	27,884		$	61,657		$	2,024		$	(63,681	)	$	27,884
Comprehensive Income (loss)	$	24,002		$	61,657		$	(1,863	)	$	(59,794	)	$	24,002

Note 10 – Guarantor Subsidiaries (Continued)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	Nine months ended September 30,
2012:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	4,525,967		$	104,476		$	—		$	4,630,443
Cost of sales	—			3,456,366			67,336			—			3,523,702
Gross profit	—			1,069,601			37,140			—			1,106,741
Selling, general and administrative expenses	3,110			586,237			16,205			—			605,552
Provision for doubtful accounts	—			71,176			1,380			—			72,556
Settlement, litigation and other related charges	—			38,227			—			—			38,227
Other charges	35,092			34,677			(4,012		)	—			65,757
Operating income (loss)	(38,202		)	339,284			23,567			—			324,649
Interest expense, net of investment income	(103,146		)	(1,897		)	(401		)	—			(105,444		)
Income (loss) from continuing operations before income taxes	(141,348		)	337,387			23,166			—			219,205
Income tax (benefit) expense	(54,772		)	130,624			7,497			—			83,349
Income (loss) from continuing operations	(86,576		)	206,763			15,669			—			135,856
Equity of net income of subsidiaries	222,432			—			—			(222,432		)	—
Net income	$	135,856		$	206,763		$	15,669		$	(222,432	)	$	135,856
Comprehensive Income	$	136,518		$	206,763		$	17,053		$	(223,816	)	$	136,518
2011:
Net sales	$	—		$	4,530,322		$	95,515		$	—		$	4,625,837
Cost of sales	—			3,541,964			66,459			—			3,608,423
Gross profit	—			988,358			29,056			—			1,017,414
Selling, general and administrative expenses	8,573			551,895			13,466			—			573,934
Provision for doubtful accounts	—			71,699			1,443			—			73,142
Settlement, litigation and other related charges	—			32,571			—			—			32,571
Other charges	—			10,939			—			—			10,939
Operating income (loss)	(8,573		)	321,254			14,147			—			326,828
Interest expense, net of investment income	(123,272		)	(760		)	(6		)	—			(124,038		)
Income (loss) from continuing operations before income taxes	(131,845		)	320,494			14,141			—			202,790
Income tax (benefit) expense	(50,062		)	124,147			5,485			—			79,570
Income (loss) from continuing operations	(81,783		)	196,347			8,656			—			123,220
Loss from discontinued operations	—			(64,591		)	(2,888		)	—			(67,479		)
Equity of net income of subsidiaries	137,524			—			—			(137,524		)	—
Net income	$	55,741		$	131,756		$	5,768		$	(137,524	)	$	55,741
Comprehensive Income	$	48,946		$	131,756		$	250		$	(132,006	)	$	48,946

Condensed Consolidating Balance Sheets (Guaranteed Senior Notes Payable)

Condensed Consolidating Balance Sheets

(in thousands)



As of September 30, 2012:	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	551,236	$	76,916	$	19,256	$	—		$	647,408
Restricted cash	—		988		—		—			988
Accounts receivable, net (including intercompany)	—		893,964		182,241		(174,396		)	901,809
Inventories	—		334,457		6,191		—			340,648
Deferred income tax benefits, net-current	—		166,171		—		(3,613		)	162,558
Other current assets	4,401		171,844		14,552		(10,825		)	179,972
Total current assets	555,637		1,644,340		222,240		(188,834		)	2,233,383
Properties and equipment, net	—		264,910		6,526		—			271,436
Goodwill	—		4,219,326		37,059		—			4,256,385
Identifiable intangible assets, net	—		203,942		3,233		—			207,175
Other noncurrent assets	80,610		94,432		22,116		(16,341		)	180,817
Investment in subsidiaries	5,519,287		—		—		(5,519,287		)	—
Total assets	$	6,155,534	$	6,426,950	$	291,174	$	(5,724,462	)	$	7,149,196
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	79,586	$	535,431	$	33,734	$	(185,221	)	$	463,530
Long-term debt, notes and convertible debentures	2,015,504		14,238		5,000		(5,000		)	2,029,742
Deferred income tax liabilities	349,121		518,934		21,008		(3,613		)	885,450
Other noncurrent liabilities	—		70,492		—		(11,341		)	59,151
Stockholders' equity	3,711,323		5,287,855		231,432		(5,519,287		)	3,711,323
Total liabilities and stockholders' equity	$	6,155,534	$	6,426,950	$	291,174	$	(5,724,462	)	$	7,149,196
As of December 31, 2011:
ASSETS
Cash and cash equivalents	$	460,253	$	101,786	$	18,223	$	—		$	580,262
Restricted cash	—		2,336		—		—			2,336
Accounts receivable, net (including intercompany)	—		920,829		119,614		(109,129		)	931,314
Inventories	—		412,081		7,297		—			419,378
Deferred income tax benefits, net-current	—		156,139		—		(2,695		)	153,444
Other current assets	3,865		193,079		13,693		—			210,637
Total current assets	464,118		1,786,250		158,827		(111,824		)	2,297,371
Properties and equipment, net	—		220,066		5,191		—			225,257
Goodwill	—		4,171,328		79,251		—			4,250,579
Identifiable intangible assets, net	—		229,051		6,219		—			235,270
Other noncurrent assets	77,485		100,725		6,423		—			184,633
Investment in subsidiaries	5,593,155		—		—		(5,593,155		)	—
Total assets	$	6,134,758	$	6,507,420	$	255,911	$	(5,704,979	)	$	7,193,110

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	59,596	$	569,623	$	19,977	$	(109,129	)	$	540,067
Long-term debt, notes and convertible debentures	1,957,167		11,107		—		—			1,968,274
Deferred income tax liabilities	322,559		500,242		18,751		(2,695		)	838,857
Other noncurrent liabilities	—		50,476		—		—			50,476
Stockholders' equity	3,795,436		5,375,972		217,183		(5,593,155		)	3,795,436
Total liabilities and stockholders' equity	$	6,134,758	$	6,507,420	$	255,911	$	(5,704,979	)	$	7,193,110

Condensed Consolidating Statements of Cash Flows (Guaranteed Senior Notes Payable)

Condensed Consolidating Statements of Cash Flows - Unaudited

(in thousands)



	Nine months ended September 30,
2012:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(43,685	)	$	457,344		$	3,244		$	416,903
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			(34,411		)	—			(34,411		)
Disposition of businesses	—			19,207			—			19,207
Capital expenditures	—			(69,486		)	(1,947		)	(71,433		)
Marketable securities	(25,000		)	—			—			(25,000		)
Other	—			850			498			1,348
Net cash flows used in investing activities	(25,000		)	(83,840		)	(1,449		)	(110,289		)
Cash flows from financing activities:
Payments on term loans	(19,375		)	—			—			(19,375		)
Proceeds from long-term borrowings and obligations	425,000			—			—			425,000
Payments on long-term borrowings and obligations	(452,302		)	—			—			(452,302		)
Capped call transaction	(48,126		)	—			—			(48,126		)
Payments for Omnicare common stock repurchases	(110,919		)	—			—			(110,919		)
Dividends paid	(30,765		)	—			—			(30,765		)
Other	396,155			(398,374		)	(762		)	(2,981		)
Net cash flows from (used in) financing activities	159,668			(398,374		)	(762		)	(239,468		)
Net increase (decrease) in cash and cash equivalents	90,983			(24,870		)	1,033			67,146
Cash and cash equivalents at beginning of period	460,253			101,786			18,223			580,262
Cash and cash equivalents at end of period	$	551,236		$	76,916		$	19,256		$	647,408
2011:
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(91,002	)	$	538,633		$	1,179		$	448,810
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			(101,844		)	—			(101,844		)
Divestiture of business, net	—			10,599			—			10,599
Capital expenditures	—			(37,238		)	(1,842		)	(39,080		)
Other	—			(3,372		)	(7		)	(3,379		)
Net cash flows used in investing activities	—			(131,855		)	(1,849		)	(133,704		)
Cash flows from financing activities:
Proceeds from long-term borrowings and obligations	600,000			—			—			600,000
Payments on long-term borrowings and obligations	(626,921		)	—			—			(626,921		)
Payments for Omnicare common stock repurchases	(120,114		)	—			—			(120,114		)
Dividends paid	(12,745		)	—			—			(12,745		)
Other	327,768			(299,667		)	2,034			30,135
Net cash flows from (used in) financing activities	167,988			(299,667		)	2,034			(129,645		)
Net increase in cash and cash equivalents	76,986			107,111			1,364			185,461
Less increase (decrease) in cash and cash equivalents of discontinued operations	—			304			(2		)	302
Increase in cash and cash equivalents of continuing operations	76,986			106,807			1,366			185,159
Cash and cash equivalents at beginning of period	460,778			17,598			16,108			494,484
Cash and cash equivalents at end of period	$	537,764		$	124,405		$	17,474		$	679,643

Summary Consolidating Statements of Income (Guaranteed Convertible Senior Debentures)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	Three months ended September 30,
2012:	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	—		$	1,501,348		$	—		$	1,501,348
Cost of sales	—			—			1,130,053			—			1,130,053
Gross profit	—			—			371,295			—			371,295
Selling, general and administrative expenses	988			364			202,198			—			203,550
Provision for doubtful accounts	—			—			24,047			—			24,047
Settlement, litigation and other related charges	—			—			4,931			—			4,931
Other charges	—			—			5,036			—			5,036
Operating income (loss)	(988		)	(364		)	135,083			—			133,731
Interest expense, net of investment income	(37,625		)	—			(1,411		)	—			(39,036		)
Income (loss) from continuing operations before income taxes	(38,613		)	(364		)	133,672			—			94,695
Income tax (benefit) expense	(15,116		)	(142		)	48,528			—			33,270
Income (loss) from continuing operations	(23,497		)	(222		)	85,144			—			61,425
Equity of net income of subsidiaries	84,922			—			—			(84,922		)	—
Net income (loss)	$	61,425		$	(222	)	$	85,144		$	(84,922	)	$	61,425
Comprehensive Income (loss)	$	63,354		$	(222	)	$	87,071		$	(86,849	)	$	63,354
2011:
Net sales	$	—		$	—		$	1,544,360		$	—		$	1,544,360
Cost of sales	—			—			1,198,299			—			1,198,299
Gross profit	—			—			346,061			—			346,061
Selling, general and administrative expenses	2,666			318			188,309			—			191,293
Provision for doubtful accounts	—			—			24,255			—			24,255
Settlement, litigation and other related charges	—			—			6,742			—			6,742
Other charges	—			—			6,718			—			6,718
Operating income (loss)	(2,666		)	(318		)	120,037			—			117,053
Interest expense, net of investment income	(55,578		)	—			(348		)	—			(55,926		)
Income (loss) from continuing operations before income taxes	(58,244		)	(318		)	119,689			—			61,127
Income tax (benefit) expense	(22,447		)	(120		)	45,910			—			23,343
Income (loss) from continuing operations	(35,797		)	(198		)	73,779			—			37,784
Loss from discontinued operations	—			—			(9,900		)	—			(9,900		)
Equity of net income of subsidiaries	63,681			—			—			(63,681		)	—
Net income (loss)	$	27,884		$	(198	)	$	63,879		$	(63,681	)	$	27,884
Comprehensive Income (loss)	$	24,002		$	(198	)	$	59,992		$	(59,794	)	$	24,002

Note 10 – Guarantor Subsidiaries (Continued)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	Nine months ended September 30,
2012:	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	—		$	4,630,443		$	—		$	4,630,443
Cost of sales	—			—			3,523,702			—			3,523,702
Gross profit	—			—			1,106,741			—			1,106,741
Selling, general and administrative expenses	3,110			1,032			601,410			—			605,552
Provision for doubtful accounts	—			—			72,556			—			72,556
Settlement, litigation and other related charges	—			—			38,227			—			38,227
Other charges	35,092			—			30,665			—			65,757
Operating income (loss)	(38,202		)	(1,032		)	363,883			—			324,649
Interest expense, net of investment income	(103,146		)	—			(2,298		)	—			(105,444		)
Income (loss) from continuing operations before income taxes	(141,348		)	(1,032		)	361,585			—			219,205
Income tax (benefit) expense	(54,772		)	(400		)	138,521			—			83,349
Income (loss) from continuing operations	(86,576		)	(632		)	223,064			—			135,856
Equity of net income of subsidiaries	222,432			—			—			(222,432		)	—
Net income (loss)	$	135,856		$	(632	)	$	223,064		$	(222,432	)	$	135,856
Comprehensive Income (loss)	$	136,518		$	(632	)	$	224,448		$	(223,816	)	$	136,518
2011:
Net sales	$	—		$	—		$	4,625,837		$	—		$	4,625,837
Cost of sales	—			—			3,608,423			—			3,608,423
Gross profit	—			—			1,017,414			—			1,017,414
Selling, general and administrative expenses	8,573			987			564,374			—			573,934
Provision for doubtful accounts	—			—			73,142			—			73,142
Settlement, litigation and other related charges	—			—			32,571			—			32,571
Other charges	—			—			10,939			—			10,939
Operating income (loss)	(8,573		)	(987		)	336,388			—			326,828
Interest expense, net of investment income	(123,272		)	—			(766		)	—			(124,038		)
Income (loss) from continuing operations before income taxes	(131,845		)	(987		)	335,622			—			202,790
Income tax (benefit) expense	(50,062		)	(371		)	130,003			—			79,570
Income (loss) from continuing operations	(81,783		)	(616		)	205,619			—			123,220
Loss from discontinued operations	—			—			(67,479		)	—			(67,479		)
Equity of net income of subsidiaries	137,524			—			—			(137,524		)	—
Net income (loss)	$	55,741		$	(616	)	$	138,140		$	(137,524	)	$	55,741
Comprehensive Income (loss)	$	48,946		$	(616	)	$	132,622		$	(132,006	)	$	48,946

Condensed Consolidating Balance Sheets (Guaranteed Convertible Senior Debentures)

Condensed Consolidating Balance Sheets

(in thousands)



As of September 30, 2012:	Parent		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	551,236	$	—	$	96,172	$	—		$	647,408
Restricted cash	—		—		988		—			988
Accounts receivable, net (including intercompany)	—		150		901,809		(150		)	901,809
Inventories	—		—		340,648		—			340,648
Deferred income tax benefits, net-current	—		—		166,171		(3,613		)	162,558
Other current assets	4,401		—		175,571		—			179,972
Total current assets	555,637		150		1,681,359		(3,763		)	2,233,383
Properties and equipment, net	—		25		271,411		—			271,436
Goodwill	—		—		4,256,385		—			4,256,385
Identifiable intangible assets, net	—		—		207,175		—			207,175
Other noncurrent assets	80,610		19		100,188		—			180,817
Investment in subsidiaries	5,519,287		—		—		(5,519,287		)	—
Total assets	$	6,155,534	$	194	$	6,516,518	$	(5,523,050	)	$	7,149,196
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	79,586	$	23	$	384,071	$	(150	)	$	463,530
Long-term debt, notes and convertible debentures	2,015,504		—		14,238		—			2,029,742
Deferred income tax liabilities	349,121		—		539,942		(3,613		)	885,450
Other noncurrent liabilities	—		—		59,151		—			59,151
Stockholders' equity	3,711,323		171		5,519,116		(5,519,287		)	3,711,323
Total liabilities and stockholders' equity	$	6,155,534	$	194	$	6,516,518	$	(5,523,050	)	$	7,149,196
As of December 31, 2011:
ASSETS
Cash and cash equivalents	$	460,253	$	—	$	120,009	$	—		$	580,262
Restricted cash	—		—		2,336		—			2,336
Accounts receivable, net (including intercompany)	—		177		931,314		(177		)	931,314
Inventories	—		—		419,378		—			419,378
Deferred income tax benefits, net-current	—		—		153,989		(545		)	153,444
Other current assets	3,865		—		206,772		—			210,637
Total current assets	464,118		177		1,833,798		(722		)	2,297,371
Properties and equipment, net	—		17		225,240		—			225,257
Goodwill	—		19		4,250,560		—			4,250,579
Identifiable intangible assets, net	—		—		235,270		—			235,270
Other noncurrent assets	77,485		—		107,148		—			184,633
Investment in subsidiaries	5,593,155		—		—		(5,593,155		)	—
Total assets	$	6,134,758	$	213	$	6,652,016	$	(5,593,877	)	$	7,193,110
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	59,596	$	82	$	480,566	$	(177	)	$	540,067
Long-term debt, notes and convertible debentures	1,957,167		—		11,107		—			1,968,274
Deferred income tax liabilities	322,559		—		516,843		(545		)	838,857
Other noncurrent liabilities	—		—		50,476		—			50,476
Stockholders' equity	3,795,436		131		5,593,024		(5,593,155		)	3,795,436
Total liabilities and stockholders' equity	$	6,134,758	$	213	$	6,652,016	$	(5,593,877	)	$	7,193,110

Condensed Consolidating Statements of Cash Flows (Guaranteed Convertible Senior Debentures)

Condensed Consolidating Statements of Cash Flows - Unaudited

(in thousands)



	Nine months ended September 30,
2012:	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(43,685	)	$	—	$	460,588		$	416,903
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			—		(34,411		)	(34,411		)
Disposition of businesses	—			—		19,207			19,207
Capital expenditures	—			—		(71,433		)	(71,433		)
Marketable securities	(25,000		)	—		—			(25,000		)
Other	—			—		1,348			1,348
Net cash flows used in investing activities	(25,000		)	—		(85,289		)	(110,289		)
Cash flows from financing activities:
Payments on term loans	(19,375		)	—		—			(19,375		)
Proceeds from long-term borrowings and obligations	425,000			—		—			425,000
Payments on long-term borrowings and obligations	(452,302		)	—		—			(452,302		)
Capped call transaction	(48,126		)	—		—			(48,126		)
Payments for Omnicare common stock repurchases	(110,919		)	—		—			(110,919		)
Dividends paid	(30,765		)	—		—			(30,765		)
Other	396,155			—		(399,136		)	(2,981		)
Net cash flows from (used in) financing activities	159,668			—		(399,136		)	(239,468		)
Net increase (decrease) in cash and cash equivalents	90,983			—		(23,837		)	67,146
Cash and cash equivalents at beginning of period	460,253			—		120,009			580,262
Cash and cash equivalents at end of period	$	551,236		$	—	$	96,172		$	647,408
2011:
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(91,002	)	$	—	$	539,812		$	448,810
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			—		(101,844		)	(101,844		)
Divestiture of business, net	—			—		10,599			10,599
Capital expenditures	—			—		(39,080		)	(39,080		)
Other	—			—		(3,379		)	(3,379		)
Net cash flows used in investing activities	—			—		(133,704		)	(133,704		)
Cash flows from financing activities:
Proceeds from long-term borrowings and obligations	600,000			—		—			600,000
Payments on long-term borrowings and obligations	(626,921		)	—		—			(626,921		)
Payments for Omnicare common stock repurchases	(120,114		)	—		—			(120,114		)
Dividends paid	(12,745		)	—		—			(12,745		)
Other	327,768			—		(297,633		)	30,135
Net cash flows from (used in) financing activities	167,988			—		(297,633		)	(129,645		)
Net increase in cash and cash equivalents	76,986			—		108,475			185,461
Less increase in cash and cash equivalents of discontinued operations	—			—		302			302
Increase in cash and cash equivalents of continuing operations	76,986			—		108,173			185,159
Cash and cash equivalents at beginning of period	460,778			—		33,706			494,484
Cash and cash equivalents at end of period	$	537,764		$	—	$	141,879		$	679,643