Interim Financial Data

The interim financial data is unaudited; however, in the opinion of Omnicare management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Omnicare consolidated results of operations, financial position and cash flows for the interim periods presented have been made. All significant intercompany accounts and transactions have been eliminated.

Stock-Based Compensation

Stock-based compensation expense recognized in the Consolidated Statements of Comprehensive Income for stock options, restricted stock units, performance share units and stock awards totaled approximately $4.5 million and $3.1 million for the three months ended March 31, 2013 and 2012, respectively.

Accounts Receivable

The following table is an aging of the Company’s gross accounts receivable (net of allowances for contractual adjustments), aged based on payment terms and categorized based on the three primary types of accounts receivable characteristics (in thousands):



March 31, 2013	Current and 0-180 Days Past Due		181 Days and Over Past Due		Total
Medicare (Part D and Part B), Medicaid and Third-Party payors	$	224,747	$	129,579	$	354,326
Facility payors	409,412		146,882		556,294
Private Pay payors	71,033		100,818		171,851
Total gross accounts receivable	$	705,192	$	377,279	$	1,082,471
December 31, 2012
Medicare (Part D and Part B), Medicaid and Third-Party payors	$	238,348	$	163,773	$	402,121
Facility payors	383,848		168,945		552,793
Private Pay payors	70,835		100,719		171,554
Total gross accounts receivable	$	693,031	$	433,437	$	1,126,468

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) ("AOCI") by component and in the aggregate, follows (in thousands):



	March 31, 2013			December 31, 2012
Unrealized loss on fair value of investments	$	(510	)	$	(428	)
Pension and postemployment benefits	(2,334		)	(2,392		)
Total accumulated other comprehensive income (loss), net	$	(2,844	)	$	(2,820	)

The amounts are net of applicable tax benefits which were not material at March 31, 2013 and December 31, 2012. The reclassifications out of AOCI did not materially affect any individual line item on the Statement of Comprehensive Income.

Fair Value

The Company’s financial assets and liabilities, measured at fair value on a recurring basis, were as follows (in thousands):



			Based on
	Fair Value		Quoted Prices in Active Markets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
March 31, 2013
Bond portfolio	$	25,075	$	—	$	25,075	$	—
7.75% interest rate swap agreements - fair value hedge	39,961		—		39,961		—
Derivatives	—		—		—		—
Total	$	65,036	$	—	$	65,036	$	—
December 31, 2012
Bond portfolio	$	24,887	$	—	$	24,887	$	—
7.75% interest rate swap agreements - fair value hedge	46,090		—		46,090		—
Derivatives	—		—		—		—
Total	$	70,977	$	—	$	70,977	$	—

The fair value of the Company’s fixed-rate debt facilities are shown at the Debt note of the Notes to Consolidated Financial Statements.

Income Taxes

The quarterly effective tax rates are different than the federal statutory rate largely as a result of the impact of state and local income taxes and certain non-deductible charges. The year over year change in the effective tax rate is primarily due to certain non-deductible charges relating to the disposition of businesses in 2012.

Other charges

Other charges consist of the following (in thousands):



	Three months ended March 31,
	2013		2012
Acquisition and other related costs	$	537	$	3,109
Disposition of businesses	—		5,903
Separation costs	3,469		2,500
Total - other charges	$	4,006	$	11,512

Disposition of Businesses

In 2012, the Company completed the disposition of its Canadian pharmacy and the Company's pharmacy operational software business, which were not considered, individually or in the aggregate, significant to the operations of Omnicare. The Company recorded a charge on the disposition of these businesses of $5.9 million in the three months ended March 31, 2012. These charges are reflected in the "Other charges" caption of the Consolidated Statements of Comprehensive Income.

Common Stock Repurchase Program

In the three months ended March 31, 2013, the Company did not repurchase any shares through authorized share repurchase programs. The Company had approximately $220 million of combined share repurchase authority remaining as of March 31, 2013, which expires on December 31, 2014. In 2012, the Company entered into a $250 million Accelerated Repurchase Agreement (“ASR”) with Goldman, Sachs & Co. that is anticipated to be completed during the second quarter of 2013. As of March 31, 2013, the Company had a $50 million equity forward contract recorded as part of the ASR, which is included in paid in capital.

Recently Issued Accounting Standards

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the income statement or in the notes, significant amounts reclassified from accumulated other comprehensive income by the net income line item. The adoption of this amended guidance on January 1, 2013 did not have a material impact on the Company's consolidated results of operations, financial position and cash flows.