Guarantor Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2014

Guarantor Subsidiaries [Abstract]

Summary Consolidating Statements of Income (Guaranteed Senior Notes Payable)

Summary Consolidating

Statements of Comprehensive Income (Loss)

(in thousands)

	For the three months ended March 31,
2014:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating /  Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	1,540,006		$	31,032		$	—		$	1,571,038
Cost of sales	—			1,194,399			18,185			—			1,212,584
Gross profit	—			345,607			12,847			—			358,454
Selling, general and administrative expenses	987			182,120			3,706			—			186,813
Provision for doubtful accounts	—			21,047			514			—			21,561
Settlement, litigation and other related charges	—			7,052			—			—			7,052
Other charges	—			10,276			—			—			10,276
Operating income (loss)	(987		)	125,112			8,627			—			132,752
Interest expense, net of investment income	(29,156		)	(285		)	—			—			(29,441		)
Income (loss) before income taxes	(30,143		)	124,827			8,627			—			103,311
Income tax (benefit) expense	(11,671		)	48,004			3,340			—			39,673
Income (loss) from continuing operations	(18,472		)	76,823			5,287			—			63,638
Income (loss) from discontinued operations	—			171			(35		)	—			136
Equity of net income of subsidiaries	82,246			—			—			(82,246		)	—
Net income	$	63,774		$	76,994		$	5,252		$	(82,246	)	$	63,774
Comprehensive income	$	63,997		$	76,994		$	5,252		$	(82,246	)	$	63,997
2013:
Net sales	$	—		$	1,427,130		$	31,815		$	—		$	1,458,945
Cost of sales	—			1,091,162			18,079			—			1,109,241
Gross profit	—			335,968			13,736			—			349,704
Selling, general and administrative expenses	1,006			184,978			4,709			—			190,693
Provision for doubtful accounts	—			23,532			478			—			24,010
Settlement, litigation and other related charges	—			22,619			—			—			22,619
Other charges	—			4,006			—			—			4,006
Operating income (loss)	(1,006		)	100,833			8,549			—			108,376
Interest expense, net of investment income	(28,991		)	(293		)	(178		)	—			(29,462		)
Income (loss) before income taxes	(29,997		)	100,540			8,371			—			78,914
Income tax (benefit) expense	(11,546		)	38,924			3,222			—			30,600
Income (loss) from continuing operations	(18,451		)	61,616			5,149			—			48,314
Income (loss) from discontinued operations	—			6,063			(23		)	—			6,040
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

Condensed Consolidating Balance Sheets (Guaranteed Senior Notes Payable)

Condensed Consolidating Balance Sheets

(in thousands)

As of March 31, 2014:	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	284,410	$	49,777	$	12,800	$	—		$	346,987
Accounts receivable, net (including intercompany)	—		752,924		336,511		(333,815		)	755,620
Inventories	—		435,847		6,787		—			442,634
Deferred income tax benefits, net-current	—		126,717		21		—			126,738
Other current assets	1,407		250,744		24,962		—			277,113
Current assets of discontinued operations	—		46,537		122		—			46,659
Total current assets	285,817		1,662,546		381,203		(333,815		)	1,995,751
Properties and equipment, net	—		313,016		4,840		—			317,856
Goodwill	—		4,028,651		28,805		—			4,057,456
Identifiable intangible assets, net	—		120,093		1,964		—			122,057
Other noncurrent assets	42,079		53,855		65		—			95,999
Noncurrent assets of discontinued operations	—		85,028		31		—			85,059
Investment in subsidiaries	5,059,898		—		—		(5,059,898		)	—
Total assets	$	5,387,794	$	6,263,189	$	416,908	$	(5,393,713	)	$	6,674,178
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (including intercompany)	$	37,402	$	852,060	$	28,745	$	(333,815	)	$	584,392
Current portion of long term debt	528,475		—		—		—			528,475
Current liabilities of discontinued operations	—		17,404		3		—			17,407
Long-term debt, notes and convertible debentures	1,405,876		11,615		—		—			1,417,491
Deferred income tax liabilities	368,532		640,955		13,928		—			1,023,415
Other noncurrent liabilities	—		52,960		1,689		—			54,649
Noncurrent liabilities of discontinued operations	—		840		—		—			840
Convertible debt	329,425		—		—		—			329,425
Stockholders' equity	2,718,084		4,687,355		372,543		(5,059,898		)	2,718,084
Total liabilities and stockholders' equity	$	5,387,794	$	6,263,189	$	416,908	$	(5,393,713	)	$	6,674,178
As of December 31, 2013:
ASSETS
Cash and cash equivalents	$	275,910	$	68,050	$	12,041	$	—		$	356,001
Accounts receivable, net (including intercompany)	—		693,729		315,323		(313,368		)	695,684
Inventories	—		505,567		6,851		—			512,418
Deferred income tax benefits, net-current	—		135,148		—		(54		)	135,094
Other current assets	1,989		242,166		21,381		—			265,536
Current assets of discontinued operations	—		49,128		867		—			49,995
Total current assets	277,899		1,693,788		356,463		(313,422		)	2,014,728
Properties and equipment, net	—		301,200		4,688		—			305,888
Goodwill	—		4,028,651		28,805		—			4,057,456
Identifiable intangible assets, net	—		127,798		2,176		—			129,974
Other noncurrent assets	41,825		54,834		63		—			96,722
Noncurrent assets of discontinued operations	—		87,047		31		—			87,078
Investment in subsidiaries	5,131,280		—		—		(5,131,280		)	—
Total assets	$	5,451,004	$	6,293,318	$	392,226	$	(5,444,702	)	$	6,691,846
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (including intercompany)	$	83,028	$	793,461	$	23,986	$	(313,368	)	$	587,107
Current portion of long term debt	527,204		—		—		—			527,204
Current liabilities of discontinued operations	—		18,829		17		—			18,846
Long-term debt, notes and convertible debentures	1,405,628		13,191		—		—			1,418,819
Deferred income tax liabilities	363,240		635,640		13,907		(54		)	1,012,733
Other noncurrent liabilities	—		52,072		1,763		—			53,835
Noncurrent liabilities of discontinued operations	—		1,398		—		—			1,398
Convertible debt	331,101		—		—		—			331,101
Stockholders' equity	2,740,803		4,778,727		352,553		(5,131,280		)	2,740,803
Total liabilities and stockholders' equity	$	5,451,004	$	6,293,318	$	392,226	$	(5,444,702	)	$	6,691,846

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

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Three months ended March 31,
2014:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(1,854	)	$	178,130		$	1,222		$	177,498
Cash flows from investing activities:
Divestiture of businesses, net	—			3,629			—			3,629
Capital expenditures	—			(25,702		)	(463		)	(26,165		)
Other	—			(284		)	—			(284		)
Net cash flows (used in) investing activities	—			(22,357		)	(463		)	(22,820		)
Cash flows from financing activities:
Payments on terms loans	(5,313		)	—			—			(5,313		)
Payments on long-term borrowings and obligations	(39,030		)	—			—			(39,030		)
Decrease in cash overdraft balance	(2,611		)	(926		)	—			(3,537		)
Payments for Omnicare common stock repurchase	(95,417		)	—			—			(95,417		)
Dividends paid	(19,596		)	—			—			(19,596		)
Other	172,321			(167,504		)	—			4,817
Net cash flows from (used in) financing activities	10,354			(168,430		)	—			(158,076		)
Net increase (decrease) in cash and cash equivalents	8,500			(12,657		)	759			(3,398		)
Increase (decrease) from discontinued operations	—			5,616			—			5,616
Net increase (decrease) from continuing operations	8,500			(18,273		)	759			(9,014		)
Cash and cash equivalents at beginning of period	275,910			68,050			12,041			356,001
Cash and cash equivalents at end of period	$	284,410		$	49,777		$	12,800		$	346,987
2013:
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	—			(22,099		)	(316		)	(22,415		)
Other	(227		)	367			—			140
Net cash flows used in investing activities	(227		)	(21,732		)	(316		)	(22,275		)
Cash flows from financing activities:
Payments on term 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 repurchases	(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 (decrease) in cash and cash equivalents	53,590			4,478			(2,463		)	55,605
Increase (decrease) from discontinued operations	—			1,717			—			1,717
Net increase (decrease) from continuing operations	53,590			2,761			(2,463		)	53,888
Cash and cash equivalents at beginning of period	383,674			49,108			11,838			444,620
Cash and cash equivalents at end of period	$	437,264		$	51,869		$	9,375		$	498,508

Summary Consolidating Statements of Income (Guaranteed Convertible Senior Debentures)

Summary Consolidating

Statements of Comprehensive Income (Loss)

(in thousands)

	For the three months ended March 31,
2014:	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Consolidating /  Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	—		$	1,571,038		$	—		$	1,571,038
Cost of sales	—			—			1,212,584			—			1,212,584
Gross profit	—			—			358,454			—			358,454
Selling, general and administrative expenses	987			436			185,390			—			186,813
Provision for doubtful accounts	—			—			21,561			—			21,561
Settlement, litigation and other related charges	—			—			7,052			—			7,052
Other charges	—			—			10,276			—			10,276
Operating income (loss)	(987		)	(436		)	134,175			—			132,752
Interest expense, net of investment income	(29,156		)	—			(285		)	—			(29,441		)
Income (loss) before income taxes	(30,143		)	(436		)	133,890			—			103,311
Income tax (benefit) expense	(11,671		)	(169		)	51,513			—			39,673
Income (loss) from continuing operations	(18,472		)	(267		)	82,377			—			63,638
Income from discontinued operations	—			—			136			—			136
Equity of net income of subsidiaries	82,246			—			—			(82,246		)	—
Net income (loss)	$	63,774		$	(267	)	$	82,513		$	(82,246	)	$	63,774
Comprehensive income (loss)	$	63,997		$	(267	)	$	82,513		$	(82,246	)	$	63,997
2013:
Net sales	$	—		$	—		$	1,458,945		$	—		$	1,458,945
Cost of sales	—			—			1,109,241			—			1,109,241
Gross profit	—			—			349,704			—			349,704
Selling, general and administrative expenses	1,006			399			189,288			—			190,693
Provision for doubtful accounts	—			—			24,010			—			24,010
Settlement, litigation and other related charges	—			—			22,619			—			22,619
Other charges	—			—			4,006			—			4,006
Operating income (loss)	(1,006		)	(399		)	109,781			—			108,376
Interest expense, net of investment income	(28,991		)	—			(471		)	—			(29,462		)
Income (loss) before income taxes	(29,997		)	(399		)	109,310			—			78,914
Income tax (benefit) expense	(11,546		)	(154		)	42,300			—			30,600
Income (loss) from continuing operations	(18,451		)	(245		)	67,010			—			48,314
Income from discontinued operations	—			—			6,040			—			6,040
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

Condensed Consolidating Balance Sheets (Guaranteed Convertible Senior Debentures)

Condensed Consolidating Balance Sheets

(in thousands)

As of March 31, 2014:	Parent		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	284,410	$	—	$	62,577	$	—		$	346,987
Accounts receivable, net (including intercompany)	—		188		755,620		(188		)	755,620
Inventories	—		—		442,634		—			442,634
Deferred income tax benefits, net-current	—		—		126,738		—			126,738
Other current assets	1,407		—		275,706		—			277,113
Current assets of discontinued operations	—		—		46,659		—			46,659
Total current assets	285,817		188		1,709,934		(188		)	1,995,751
Properties and equipment, net	—		17		317,839		—			317,856
Goodwill	—		—		4,057,456		—			4,057,456
Identifiable intangible assets, net	—		—		122,057		—			122,057
Other noncurrent assets	42,079		19		53,901		—			95,999
Noncurrent assets of discontinued operations	—		—		85,059		—			85,059
Investment in subsidiaries	5,059,898		—		—		(5,059,898		)	—
Total assets	$	5,387,794	$	224	$	6,346,246	$	(5,060,086	)	$	6,674,178
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (including intercompany)	$	37,402	$	—	$	547,178	$	(188	)	$	584,392
Current portion of long term debt	528,475		—		—		—			528,475
Current liabilities of discontinued operations	—		—		17,407		—			17,407
Long-term debt, notes and convertible debentures	1,405,876		—		11,615		—			1,417,491
Deferred income tax liabilities	368,532		—		654,883		—			1,023,415
Other noncurrent liabilities	—		—		54,649		—			54,649
Noncurrent liabilities of discontinued operations	—		—		840		—			840
Convertible debt	329,425		—		—		—			329,425
Stockholders' equity	2,718,084		224		5,059,674		(5,059,898		)	2,718,084
Total liabilities and stockholders' equity	$	5,387,794	$	224	$	6,346,246	$	(5,060,086	)	$	6,674,178
As of December 31, 2013:
ASSETS
Cash and cash equivalents	$	275,910	$	—	$	80,091	$	—		$	356,001
Accounts receivable, net (including intercompany)	—		210		695,684		(210		)	695,684
Inventories	—		—		512,418		—			512,418
Deferred income tax benefits, net-current	—		—		135,094		—			135,094
Other current assets	1,989		—		263,547		—			265,536
Current assets of discontinued operations	—		—		49,995		—			49,995
Total current assets	277,899		210		1,736,829		(210		)	2,014,728
Properties and equipment, net	—		19		305,869		—			305,888
Goodwill	—		—		4,057,456		—			4,057,456
Identifiable intangible assets, net	—		—		129,974		—			129,974
Other noncurrent assets	41,825		19		54,878		—			96,722
Noncurrent assets of discontinued operations	—		—		87,078		—			87,078
Investment in subsidiaries	5,131,280		—		—		(5,131,280		)	—
Total assets	$	5,451,004	$	248	$	6,372,084	$	(5,131,490	)	$	6,691,846
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (including intercompany)	$	83,028	$	—	$	504,289	$	(210	)	$	587,107
Current portion of long term debt	527,204		—		—		—			527,204
Current liabilities of discontinued operations	—		—		18,846		—			18,846
Long-term debt, notes and convertible debentures	1,405,628		—		13,191		—			1,418,819
Deferred income tax liabilities	363,240		—		649,493		—			1,012,733
Other noncurrent liabilities	—		—		53,835		—			53,835
Noncurrent liabilities of discontinued operations	—		—		1,398		—			1,398
Convertible debt	331,101		—		—		—			331,101
Stockholders' equity	2,740,803		248		5,131,032		(5,131,280		)	2,740,803
Total liabilities and stockholders' equity	$	5,451,004	$	248	$	6,372,084	$	(5,131,490	)	$	6,691,846

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

Condensed Consolidating Statements of Cash Flows - Unaudited

(in thousands)

	Three months ended March 31,
2014:	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(1,854	)	$	—	$	179,352		$	177,498
Cash flows from investing activities:
Disposition of businesses	—			—		3,629			3,629
Capital expenditures	—			—		(26,165		)	(26,165		)
Other	—			—		(284		)	(284		)
Net cash flows used in investing activities	—			—		(22,820		)	(22,820		)
Cash flows from financing activities:
Payments on terms loans	(5,313		)	—		—			(5,313		)
Payments on long-term borrowings and obligations	(39,030		)	—		—			(39,030		)
Decrease in cash overdraft balance	(2,611		)	—		(926		)	(3,537		)
Payments for Omnicare common stock repurchase	(95,417		)	—		—			(95,417		)
Dividends paid	(19,596		)	—		—			(19,596		)
Other	172,321			—		(167,504		)	4,817
Net cash flows from (used in) financing activities	10,354			—		(168,430		)	(158,076		)
Net increase in cash and cash equivalents	8,500			—		(11,898		)	(3,398		)
Less increase in cash and cash equivalents of discontinued operations	—			—		5,616			5,616
Increase (decrease) in cash and cash equivalents of continuing operations	8,500			—		(17,514		)	(9,014		)
Cash and cash equivalents at beginning of period	275,910			—		80,091			356,001
Cash and cash equivalents at end of period	$	284,410		$	—	$	62,577		$	346,987
2013:
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	—			—		(22,415		)	(22,415		)
Other	(227		)	—		367			140
Net cash flows used in investing activities	(227		)	—		(22,048		)	(22,275		)
Cash flows from financing activities:
Payments on term 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 repurchases	(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 (decrease) in cash and cash equivalents	53,590			—		2,015			55,605
Less increase in cash and cash equivalents of discontinued operations	—			—		1,717			1,717
Increase in cash and cash equivalents of continuing operations	53,590			—		298			53,888
Cash and cash equivalents at beginning of period	383,674			—		60,946			444,620
Cash and cash equivalents at end of period	$	437,264		$	—	$	61,244		$	498,508