Guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2013

Summary Consolidating Statements of Income (Guaranteed Senior Notes Payable)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	For the three months ended March 31,
2013:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	1,492,388		$	32,615		$	—		$	1,525,003
Cost of sales	—			1,135,340			18,839			—			1,154,179
Gross profit	—			357,048			13,776			—			370,824
Selling, general and administrative expenses	1,006			196,036			4,784			—			201,826
Provision for doubtful accounts	—			23,746			480			—			24,226
Settlement, litigation and other related charges	—			22,619			—			—			22,619
Other charges	—			4,006			—			—			4,006
Operating income (loss)	(1,006		)	110,641			8,512			—			118,147
Interest expense, net of investment income	(28,991		)	(290		)	(178		)	—			(29,459		)
Income (loss) before income taxes	(29,997		)	110,351			8,334			—			88,688
Income tax (benefit) expense	(11,546		)	42,672			3,208			—			34,334
Equity of net income of subsidiaries	72,805			—			—			(72,805		)	—
Net income	$	54,354		$	67,679		$	5,126		$	(72,805	)	$	54,354
Comprehensive Income	$	54,330		$	67,679		$	5,126		$	(72,805	)	$	54,330
2012:
Net sales	$	—		$	1,557,403		$	35,665		$	—		$	1,593,068
Cost of sales	—			1,201,149			23,819			—			1,224,968
Gross profit	—			356,254			11,846			—			368,100
Selling, general and administrative expenses	1,003			188,723			10,398			—			200,124
Provision for doubtful accounts	—			23,966			465			—			24,431
Settlement, litigation and other related charges	—			7,203			—			—			7,203
Other charges	—			11,512			—			—			11,512
Operating income (loss)	(1,003		)	124,850			983			—			124,830
Interest expense, net of investment income	(30,388		)	(283		)	(163		)	—			(30,834		)
Income (loss) before income taxes	(31,391		)	124,567			820			—			93,996
Income tax (benefit) expense	(12,086		)	47,755			2,588			—			38,257
Equity of net income of subsidiaries	75,044			—			—			(75,044		)	—
Net income (loss)	$	55,739		$	76,812		$	(1,768	)	$	(75,044	)	$	55,739
Comprehensive Income (loss)	$	56,161		$	76,812		$	(1,768	)	$	(75,044	)	$	56,161

Condensed Consolidating Balance Sheets (Guaranteed Senior Notes Payable)

Condensed Consolidating Balance Sheets

(in thousands)



As of March 31, 2013:	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	437,264	$	62,790	$	9,764	$	—		$	509,818
Restricted cash	—		5		—		—			5
Accounts receivable, net (including intercompany)	—		834,286		244,778		(238,681		)	840,383
Inventories	—		375,390		7,268		—			382,658
Deferred income tax benefits, net-current	67		116,782		—		(1,064		)	115,785
Other current assets	2,105		267,048		21,148		(10,825		)	279,476
Total current assets	439,436		1,656,301		282,958		(250,570		)	2,128,125
Properties and equipment, net	—		286,266		6,528		—			292,794
Goodwill	—		4,228,135		28,824		—			4,256,959
Identifiable intangible assets, net	—		184,454		2,809		—			187,263
Other noncurrent assets	68,243		83,903		14,817		(19,752		)	147,211
Investment in subsidiaries	5,454,351		—		—		(5,454,351		)	—
Total assets	$	5,962,030	$	6,439,059	$	335,936	$	(5,724,673	)	$	7,012,352
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	271,877	$	609,959	$	39,845	$	(249,506	)	$	672,175
Long-term debt, notes and convertible debentures	1,801,588		16,403		5,000		(5,000		)	1,817,991
Deferred income tax liabilities	338,328		553,663		19,113		(1,064		)	910,040
Other noncurrent liabilities			76,661		—		(14,752		)	61,909
Stockholders' equity	3,550,237		5,182,373		271,978		(5,454,351		)	3,550,237
Total liabilities and stockholders' equity	$	5,962,030	$	6,439,059	$	335,936	$	(5,724,673	)	$	7,012,352
As of December 31, 2012:
ASSETS
Cash and cash equivalents	$	383,674	$	58,312	$	12,227	$	—		$	454,213
Restricted cash	—		1,066		—		—			1,066
Accounts receivable, net (including intercompany)	—		849,753		197,370		(190,071		)	857,052
Inventories	—		379,448		6,250		—			385,698
Deferred income tax benefits, net-current	—		137,736		—		(1,550		)	136,186
Other current assets	1,765		248,833		14,871		(10,825		)	254,644
Total current assets	385,439		1,675,148		230,718		(202,446		)	2,088,859
Properties and equipment, net	—		276,056		6,604		—			282,660
Goodwill	—		4,219,900		37,059		—			4,256,959
Identifiable intangible assets, net	—		193,852		3,021		—			196,873
Other noncurrent assets	75,336		93,508		11,382		(16,313		)	163,913
Investment in subsidiaries	5,453,702		—		—		(5,453,702		)	—
Total assets	$	5,914,477	$	6,458,464	$	288,784	$	(5,672,461	)	$	6,989,264

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	60,454	$	587,025	$	35,431	$	(200,896	)	$	482,014
Long-term debt, notes and convertible debentures	2,012,807		17,223		5,000		(5,000		)	2,030,030
Deferred income tax liabilities	335,504		559,405		21,301		(1,550		)	914,660
Other noncurrent liabilities	—		68,161		—		(11,313		)	56,848
Stockholders' equity	3,505,712		5,226,650		227,052		(5,453,702		)	3,505,712
Total liabilities and stockholders' equity	$	5,914,477	$	6,458,464	$	288,784	$	(5,672,461	)	$	6,989,264

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

Condensed Consolidating Statements of Cash Flows

(in thousands)



	Three months ended March 31,
2013:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(3,365	)	$	114,407		$	(2,147	)	$	108,895
Cash flows from investing activities:
Capital expenditures	—			(22,813		)	(316		)	(23,129		)
Other	(227		)	1,081			—			854
Net cash flows used in investing activities	(227		)	(21,732		)	(316		)	(22,275		)
Cash flows from financing activities:
Payments on terms loans	(5,313		)	—			—			(5,313		)
Payments on long-term borrowings and obligations	(1,684		)	—			—			(1,684		)
Increase (decrease) in cash overdraft balance	(10,900		)	1,126			—			(9,774		)
Payments for Omnicare common stock repurchase	(302		)	—			—			(302		)
Dividends paid	(14,479		)	—			—			(14,479		)
Other	89,860			(89,323		)	—			537
Net cash flows from (used in) financing activities	57,182			(88,197		)	—			(31,015		)
Net increase in cash and cash equivalents	53,590			4,478			(2,463		)	55,605
Cash and cash equivalents at beginning of period	383,674			58,312			12,227			454,213
Cash and cash equivalents at end of period	$	437,264		$	62,790		$	9,764		$	509,818
2012:
Cash flows from operating activities:
Net cash flows from operating activities	$	3,153		$	94,417		$	2,847		$	100,417
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			(563		)	—			(563		)
Capital expenditures	—			(19,432		)	(807		)	(20,239		)
Other	—			513			(1		)	512
Net cash flows used in investing activities	—			(19,482		)	(808		)	(20,290		)
Cash flows from financing activities:
Payments on term loans	(6,587		)	—			—			(6,587		)
Increase (decrease) in cash overdraft balance	290			(3,441		)	—			(3,151		)
Payments for Omnicare common stock repurchases	(22,328		)	—			—			(22,328		)
Dividends paid	(7,825		)	—			—			(7,825		)
Other	78,543			(75,699		)	(1,165		)	1,679
Net cash flows from (used in) financing activities	42,093			(79,140		)	(1,165		)	(38,212		)
Net increase (decrease) in cash and cash equivalents	45,246			(4,205		)	874			41,915
Cash and cash equivalents at beginning of period	460,253			101,786			18,223			580,262
Cash and cash equivalents at end of period	$	505,499		$	97,581		$	19,097		$	622,177

Summary Consolidating Statements of Income (Guaranteed Convertible Senior Debentures)

Summary Consolidating

Statements of Comprehensive Income

(in thousands)



	For the three months ended March 31,
2013:	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Consolidating / Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	—		$	1,525,003		$	—		$	1,525,003
Cost of sales	—			—			1,154,179			—			1,154,179
Gross profit	—			—			370,824			—			370,824
Selling, general and administrative expenses	1,006			399			200,421			—			201,826
Provision for doubtful accounts	—			—			24,226			—			24,226
Settlement, litigation and other related charges	—			—			22,619			—			22,619
Other charges	—			—			4,006			—			4,006
Operating income (loss)	(1,006		)	(399		)	119,552			—			118,147
Interest expense, net of investment income	(28,991		)	—			(468		)	—			(29,459		)
Income (loss) before income taxes	(29,997		)	(399		)	119,084			—			88,688
Income tax (benefit) expense	(11,546		)	(154		)	46,034			—			34,334
Equity of net income of subsidiaries	72,805			—			—			(72,805		)	—
Net income (loss)	$	54,354		$	(245	)	$	73,050		$	(72,805	)	$	54,354
Comprehensive Income (loss)	$	54,330		$	(245	)	$	73,050		$	(72,805	)	$	54,330
2012:
Net sales	$	—		$	—		$	1,593,068		$	—		$	1,593,068
Cost of sales	—			—			1,224,968			—			1,224,968
Gross profit	—			—			368,100			—			368,100
Selling, general and administrative expenses	1,003			322			198,799			—			200,124
Provision for doubtful accounts	—			—			24,431			—			24,431
Settlement, litigation and other related charges	—			—			7,203			—			7,203
Other charges	—			—			11,512			—			11,512
Operating income (loss)	(1,003		)	(322		)	126,155			—			124,830
Interest expense, net of investment income	(30,388		)	—			(446		)	—			(30,834		)
Income (loss) before income taxes	(31,391		)	(322		)	125,709			—			93,996
Income tax (benefit) expense	(12,086		)	(124		)	50,467			—			38,257
Equity of net income of subsidiaries	75,044			—			—			(75,044		)	—
Net income (loss)	$	55,739		$	(198	)	$	75,242		$	(75,044	)	$	55,739
Comprehensive Income (loss)	$	56,161		$	(198	)	$	75,242		$	(75,044	)	$	56,161

Condensed Consolidating Balance Sheets (Guaranteed Convertible Senior Debentures)

Condensed Consolidating Balance Sheets

(in thousands)



As of March 31, 2013:	Parent		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	437,264	$	—	$	72,554	$	—		$	509,818
Restricted cash	—		—		5		—			5
Accounts receivable, net (including intercompany)	—		201		840,383		(201		)	840,383
Inventories	—		—		382,658		—			382,658
Deferred income tax benefits, net-current	67		—		115,718		—			115,785
Other current assets	2,105		—		277,371		—			279,476
Total current assets	439,436		201		1,688,689		(201		)	2,128,125
Properties and equipment, net	—		22		292,772		—			292,794
Goodwill	—		—		4,256,959		—			4,256,959
Identifiable intangible assets, net	—		—		187,263		—			187,263
Other noncurrent assets	68,243		19		78,949		—			147,211
Investment in subsidiaries	5,454,351		—		—		(5,454,351		)	—
Total assets	$	5,962,030	$	242	$	6,504,632	$	(5,454,552	)	$	7,012,352
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	271,877	$	54	$	400,445	$	(201	)	$	672,175
Long-term debt, notes and convertible debentures	1,801,588		—		16,403		—			1,817,991
Deferred income tax liabilities	338,328		—		571,712		—			910,040
Other noncurrent liabilities			—		61,909		—			61,909
Stockholders' equity	3,550,237		188		5,454,163		(5,454,351		)	3,550,237
Total liabilities and stockholders' equity	$	5,962,030	$	242	$	6,504,632	$	(5,454,552	)	$	7,012,352
As of December 31, 2012:
ASSETS
Cash and cash equivalents	$	383,674	$	—	$	70,539	$	—		$	454,213
Restricted cash	—		—		1,066		—			1,066
Accounts receivable, net (including intercompany)	—		204		857,052		(204		)	857,052
Inventories	—		—		385,698		—			385,698
Deferred income tax benefits, net-current	—		—		137,736		(1,550		)	136,186
Other current assets	1,765		—		252,879		—			254,644
Total current assets	385,439		204		1,704,970		(1,754		)	2,088,859
Properties and equipment, net	—		22		282,638		—			282,660
Goodwill	—		—		4,256,959		—			4,256,959
Identifiable intangible assets, net	—		—		196,873		—			196,873
Other noncurrent assets	75,336		19		88,558		—			163,913
Investment in subsidiaries	5,453,702		—		—		(5,453,702		)	—
Total assets	$	5,914,477	$	245	$	6,529,998	$	(5,455,456	)	$	6,989,264
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities	$	60,454	$	54	$	421,710	$	(204	)	$	482,014
Long-term debt, notes and convertible debentures	2,012,807		—		17,223		—			2,030,030
Deferred income tax liabilities	335,504		—		580,706		(1,550		)	914,660
Other noncurrent liabilities	—		—		56,848		—			56,848
Stockholders' equity	3,505,712		191		5,453,511		(5,453,702		)	3,505,712
Total liabilities and stockholders' equity	$	5,914,477	$	245	$	6,529,998	$	(5,455,456	)	$	6,989,264

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

Condensed Consolidating Statements of Cash Flows - Unaudited

(in thousands)



	Three months ended March 31,
2013:	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(3,365	)	$	—	$	112,260		$	108,895
Cash flows from investing activities:
Capital expenditures	—			—		(23,129		)	(23,129		)
Other	(227		)	—		1,081			854
Net cash flows used in investing activities	(227		)	—		(22,048		)	(22,275		)
Cash flows from financing activities:
Payments on terms loans	(5,313		)	—		—			(5,313		)
Payments on long-term borrowings and obligations	(1,684		)	—		—			(1,684		)
Increase (decrease) in cash overdraft balance	(10,900		)	—		1,126			(9,774		)
Payments for Omnicare common stock repurchase	(302		)	—		—			(302		)
Dividends paid	(14,479		)	—		—			(14,479		)
Other	89,860			—		(89,323		)	537
Net cash flows from (used in) financing activities	57,182			—		(88,197		)	(31,015		)
Net increase in cash and cash equivalents	53,590			—		2,015			55,605
Cash and cash equivalents at beginning of period	383,674			—		70,539			454,213
Cash and cash equivalents at end of period	$	437,264		$	—	$	72,554		$	509,818
2012:
Cash flows from operating activities:
Net cash flows from operating activities	$	3,153		$	—	$	97,264		$	100,417
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			—		(563		)	(563		)
Capital expenditures	—			—		(20,239		)	(20,239		)
Other	—			—		512			512
Net cash flows used in investing activities	—			—		(20,290		)	(20,290		)
Cash flows from financing activities:
Payments on term loans	(6,587		)	—		—			(6,587		)
Increase (decrease) in cash overdraft balance	290			—		(3,441		)	(3,151		)
Payments for Omnicare common stock repurchases	(22,328		)	—		—			(22,328		)
Dividends paid	(7,825		)	—		—			(7,825		)
Other	78,543			—		(76,864		)	1,679
Net cash flows from (used in) financing activities	42,093			—		(80,305		)	(38,212		)
Net increase (decrease) in cash and cash equivalents	45,246			—		(3,331		)	41,915
Cash and cash equivalents at beginning of period	460,253			—		120,009			580,262
Cash and cash equivalents at end of period	$	505,499		$	—	$	116,678		$	622,177