Guarantor Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2015

Guarantor Subsidiaries [Abstract]

Summary Consolidating Statements of Income (Guaranteed Senior Notes Payable)

Summary Consolidating

Statements of Comprehensive Income (Loss)

(in thousands)

	Three months ended June 30,
2015:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating /  Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	1,701,457		$	31,860		$	—		$	1,733,317
Cost of sales	—			1,360,522			18,864			—			1,379,386
Gross profit	—			340,935			12,996			—			353,931
Selling, general and administrative expenses	585			164,294			3,831			—			168,710
Provision for doubtful accounts	—			18,896			288			—			19,184
Settlement, litigation and other related charges	—			57,702			—			—			57,702
Other charges	7,431			3,974			—			—			11,405
Operating (loss) income	(8,016		)	96,069			8,877			—			96,930
Interest expense, net of investment income	(27,179		)	(199		)	—			—			(27,378		)
(Loss) income before income taxes	(35,195		)	95,870			8,877			—			69,552
Income tax (benefit) expense	(13,631		)	45,777			3,436			—			35,582
(Loss) income from continuing operations	(21,564		)	50,093			5,441			—			33,970
Loss from discontinued operations	—			—			—			—			—
Equity of net income of subsidiaries	55,534			—			—			(55,534		)	—
Net income (loss)	$	33,970		$	50,093		$	5,441		$	(55,534	)	$	33,970
Comprehensive income (loss)	$	35,012		$	50,093		$	5,441		$	(55,534	)	$	35,012
2014:
Net sales	$	—		$	1,580,208		$	30,376		$	—		$	1,610,584
Cost of sales	—			1,238,120			18,234			—			1,256,354
Gross profit	—			342,088			12,142			—			354,230
Selling, general and administrative expenses	1,441			176,922			5,700			—			184,063
Provision for doubtful accounts	—			20,585			505			—			21,090
Settlement, litigation and other related charges	—			7,547			—			—			7,547
Other charges	—			11,284			—			—			11,284
Operating (loss) income	(1,441		)	125,750			5,937			—			130,246
Interest expense, net of investment income	(29,064		)	(916		)	—			—			(29,980		)
(Loss) income before income taxes	(30,505		)	124,834			5,937			—			100,266
Income tax (benefit) expense	(11,672		)	48,427			2,265			—			39,020
(Loss) income from continuing operations	(18,833		)	76,407			3,672			—			61,246
Loss from discontinued operations	—			(453		)	(38,822		)	—			(39,275		)
Equity of net income (loss) of subsidiaries	40,804			—			—			(40,804		)	—
Net income (loss)	$	21,971		$	75,954		$	(35,150	)	$	(40,804	)	$	21,971
Comprehensive income (loss)	$	22,015		$	75,954		$	(35,150	)	$	(40,804	)	$	22,015

Condensed Consolidating Balance Sheets (Guaranteed Senior Notes Payable)

Condensed Consolidating Balance Sheets

(in thousands)

As of June 30, 2015	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	267,328	$	26,981	$	20,399	$	—		$	314,708
Accounts receivable, net (including intercompany)	—		614,679		168,566		(166,383		)	616,862
Inventories	—		471,026		6,484		—			477,510
Deferred income tax benefits, net-current	—		77,115		697		(412		)	77,400
Other current assets	551		159,930		27,202		—			187,683
Total current assets	267,879		1,349,731		223,348		(166,795		)	1,674,163
Properties and equipment, net	—		264,328		4,833		—			269,161
Goodwill	—		4,065,442		28,805		—			4,094,247
Identifiable intangible assets, net	—		111,504		908		—			112,412
Other noncurrent assets	21,101		49,452		73		—			70,626
Investment in subsidiaries	4,754,789		—		—		(4,754,789		)	—
Total assets	$	5,043,769	$	5,840,457	$	257,967	$	(4,921,584	)	$	6,220,609
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities (including intercompany)	$	44,747	$	649,068	$	38,166	$	(166,383	)	$	565,598
Current portion of long-term debt	445,863		5,321		—		—			451,184
Long-term debt, notes and convertible debentures	1,502,946		4,476		—		—			1,507,422
Deferred income tax liabilities	354,547		598,147		—		(412		)	952,282
Other noncurrent liabilities	—		47,041		1,416		—			48,457
Convertible debt	145,034		—		—		—			145,034
Stockholders’ equity	2,550,632		4,536,404		218,385		(4,754,789		)	2,550,632
Total liabilities and stockholders’ equity	$	5,043,769	$	5,840,457	$	257,967	$	(4,921,584	)	$	6,220,609
As of December 31, 2014
ASSETS
Cash and cash equivalents	$	113,072	$	26,865	$	13,862	$	—		$	153,799
Accounts receivable, net (including intercompany)	—		576,151		100,046		(97,436		)	578,761
Inventories	—		511,840		7,744		—			519,584
Deferred income tax benefits, net-current	—		58,988		432		(220		)	59,200
Other current assets	2,287		256,106		29,167		—			287,560
Total current assets	115,359		1,429,950		151,251		(97,656		)	1,598,904
Properties and equipment, net	—		262,689		5,064		—			267,753
Goodwill	—		4,033,001		28,805		—			4,061,806
Identifiable intangible assets, net	—		97,613		1,329		—			98,942
Other noncurrent assets	21,717		58,629		39		—			80,385
Investment in subsidiaries	4,931,821		—		—		(4,931,821		)	—
Total assets	$	5,068,897	$	5,881,882	$	186,488	$	(5,029,477	)	$	6,107,790
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities (including intercompany)	$	27,725	$	459,808	$	30,817	$	(97,436	)	$	420,914
Current portion of long-term debt	446,717		—		—		—			446,717
Long-term debt, notes and convertible debentures	1,510,212		7,347		—		—			1,517,559
Deferred income tax liabilities	343,816		592,651		—		(220		)	936,247
Other noncurrent liabilities	—		44,228		1,698		—			45,926
Convertible debt	151,706		—		—		—			151,706
Stockholders’ equity	2,588,721		4,777,848		153,973		(4,931,821		)	2,588,721
Total liabilities and stockholders’ equity	$	5,068,897	$	5,881,882	$	186,488	$	(5,029,477	)	$	6,107,790

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

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Six months ended June 30,
2015:	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows from (used in) operating activities	$	(14,494	)	$	438,028		$	6,811		$	430,345
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			(54,802		)	—			(54,802		)
Capital expenditures	—			(27,390		)	(274		)	(27,664		)
Net cash flows used in investing activities	—			(82,192		)	(274		)	(82,466		)
Cash flows from financing activities:
Payments on terms loans	(10,000		)	—			—			(10,000		)
Payments on long-term borrowings and obligations	(5,999		)	—			—			(5,999		)
Fees paid for financing activities	(2,239		)	—			—			(2,239		)
Decrease in cash overdraft balance	4,790			(3,498		)	—			1,292
Payments for Omnicare common stock repurchase	(125,000		)	—			—			(125,000		)
Dividends paid	(42,362		)	—			—			(42,362		)
Other	349,560			(352,222		)	—			(2,662		)
Net cash flows from (used in) financing activities	168,750			(355,720		)	—			(186,970		)
Net increase in cash and cash equivalents	154,256			116			6,537			160,909
Increase (decrease) from discontinued operations	—			—			—			—
Net increase in cash and cash equivalents of continuing operations	154,256			116			6,537			160,909
Cash and cash equivalents at beginning of period	113,072			26,865			13,862			153,799
Cash and cash equivalents at end of period	$	267,328		$	26,981		$	20,399		$	314,708
2014:
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(57,203	)	$	453,196		$	387		$	396,380
Cash flows from investing activities:
Divestiture of business, net	—			7,114			—			7,114
Capital expenditures	—			(47,473		)	(550		)	(48,023		)
Other	—			(32		)	(658		)	(690		)
Net cash flows used in investing activities	—			(40,391		)	(1,208		)	(41,599		)
Cash flows from financing activities:
Payments on term loans	(10,625		)	—			—			(10,625		)
Payments on long-term borrowings and obligations	(175,115		)	—			—			(175,115		)
Increase (decrease) in cash overdraft balance	314			(7,184		)	—			(6,870		)
Payments for Omnicare common stock repurchases	(160,438		)	—			—			(160,438		)
Dividends paid	(38,979		)	—			—			(38,979		)
Other	454,061			(452,660		)	—			1,401
Net cash flows from (used in) financing activities	69,218			(459,844		)	—			(390,626		)
Net increase (decrease) in cash and cash equivalents	12,015			(47,039		)	(821		)	(35,845		)
Increase (decrease) in cash and cash equivalents of discontinued operations	—			6,478			(1,048		)	5,430
Net increase (decrease) from continuing operations	12,015			(53,517		)	227			(41,275		)
Cash and cash equivalents at beginning of period	275,910			68,050			12,041			356,001
Cash and cash equivalents at end of period	$	287,925		$	14,533		$	12,268		$	314,726

Summary Consolidating Statements of Income (Guaranteed Convertible Senior Debentures)

Summary Consolidating

Statements of Comprehensive Income (Loss)

(in thousands)

	Three months ended June 30,
2015:	Parent			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Consolidating /  Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
Net sales	$	—		$	—		$	1,733,317		$	—		$	1,733,317
Cost of sales	—			—			1,379,386			—			1,379,386
Gross profit	—			—			353,931			—			353,931
Selling, general and administrative expenses	585			1,539			166,586			—			168,710
Provision for doubtful accounts	—			—			19,184			—			19,184
Settlement, litigation and other related charges	—			—			57,702			—			57,702
Other charges	7,431			—			3,974			—			11,405
Operating (loss) income	(8,016		)	(1,539		)	106,485			—			96,930
Interest expense, net of investment income	(27,179		)	—			(199		)	—			(27,378		)
(Loss) income before income taxes	(35,195		)	(1,539		)	106,286			—			69,552
Income tax (benefit) expense	(13,631		)	(597		)	49,810			—			35,582
(Loss) income from continuing operations	(21,564		)	(942		)	56,476			—			33,970
Loss from discontinued operations	—			—			—			—			—
Equity of net income of subsidiaries	55,534			—			—			(55,534		)	—
Net income (loss)	$	33,970		$	(942	)	$	56,476		$	(55,534	)	$	33,970
Comprehensive income (loss)	$	35,012		$	(942	)	$	56,476		$	(55,534	)	$	35,012
2014:
Net sales	$	—		$	—		$	1,610,584		$	—		$	1,610,584
Cost of sales	—			—			1,256,354			—			1,256,354
Gross profit	—			—			354,230			—			354,230
Selling, general and administrative expenses	1,441			443			182,179			—			184,063
Provision for doubtful accounts	—			—			21,090			—			21,090
Settlement, litigation and other related charges	—			—			7,547			—			7,547
Other charges	—			—			11,284			—			11,284
Operating (loss) income	(1,441		)	(443		)	132,130			—			130,246
Interest expense, net of investment income	(29,064		)	—			(916		)	—			(29,980		)
(Loss) income before income taxes	(30,505		)	(443		)	131,214			—			100,266
Income tax (benefit) expense	(11,672		)	(170		)	50,862			—			39,020
(Loss) income from continuing operations	(18,833		)	(273		)	80,352			—			61,246
Loss from discontinued operations	—			—			(39,275		)	—			(39,275		)
Equity of net income of subsidiaries	40,804			—			—			(40,804		)	—
Net income (loss)	$	21,971		$	(273	)	$	41,077		$	(40,804	)	$	21,971
Comprehensive income (loss)	$	22,015		$	(273	)	$	41,077		$	(40,804	)	$	22,015

Condensed Consolidating Balance Sheets (Guaranteed Convertible Senior Debentures)

Condensed Consolidating Balance Sheets

(in thousands)

As of June 30, 2015	Parent		Guarantor Subsidiary		Non-Guarantor Subsidiaries		Consolidating/Eliminating Adjustments			Omnicare, Inc. and Subsidiaries
ASSETS
Cash and cash equivalents	$	267,328	$	—	$	47,380	$	—		$	314,708
Accounts receivable, net (including intercompany)	—		175		616,862		(175		)	616,862
Inventories	—		—		477,510		—			477,510
Deferred income tax benefits, net-current	—		—		77,400		—			77,400
Other current assets	551		26		187,106		—			187,683
Total current assets	267,879		201		1,406,258		(175		)	1,674,163
Properties and equipment, net	—		8		269,153		—			269,161
Goodwill	—		—		4,094,247		—			4,094,247
Identifiable intangible assets, net	—		—		112,412		—			112,412
Other noncurrent assets	21,101		19		49,506		—			70,626
Investment in subsidiaries	4,754,789		—		—		(4,754,789		)	—
Total assets	$	5,043,769	$	228	$	5,931,576	$	(4,754,964	)	$	6,220,609
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities (including intercompany)	$	44,747	$	2	$	521,024	$	(175	)	$	565,598
Current portion of long-term debt	445,863		—		5,321		—			451,184
Long-term debt, notes and convertible debentures	1,502,946		—		4,476		—			1,507,422
Deferred income tax liabilities	354,547		—		597,735		—			952,282
Other noncurrent liabilities	—		—		48,457		—			48,457
Convertible debt	145,034		—		—		—			145,034
Stockholders’ equity	2,550,632		226		4,754,563		(4,754,789		)	2,550,632
Total liabilities and stockholders’ equity	$	5,043,769	$	228	$	5,931,576	$	(4,754,964	)	$	6,220,609
As of December 31, 2014
ASSETS
Cash and cash equivalents	$	113,072	$	—	$	40,727	$	—		$	153,799
Accounts receivable, net (including intercompany)	—		203		578,761		(203		)	578,761
Inventories	—		—		519,584		—			519,584
Deferred income tax benefits, net-current	—		—		59,200		—			59,200
Other current assets	2,287		—		285,273		—			287,560
Total current assets	115,359		203		1,483,545		(203		)	1,598,904
Properties and equipment, net	—		12		267,741		—			267,753
Goodwill	—		—		4,061,806		—			4,061,806
Identifiable intangible assets, net	—		—		98,942		—			98,942
Other noncurrent assets	21,717		19		58,649		—			80,385
Investment in subsidiaries	4,931,821		—		—		(4,931,821		)	—
Total assets	$	5,068,897	$	234	$	5,970,683	$	(4,932,024	)	$	6,107,790
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities (including intercompany)	$	27,725	$	—	$	393,392	$	(203	)	$	420,914
Current portion of long-term debt	446,717		—		—		—			446,717
Long-term debt, notes and convertible debentures	1,510,212		—		7,347		—			1,517,559
Deferred income tax liabilities	343,816		—		592,431		—			936,247
Other noncurrent liabilities	—		—		45,926		—			45,926
Convertible debt	151,706		—		—		—			151,706
Stockholders’ equity	2,588,721		234		4,931,587		(4,931,821		)	2,588,721
Total liabilities and stockholders’ equity	$	5,068,897	$	234	$	5,970,683	$	(4,932,024	)	$	6,107,790

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

Condensed Consolidating Statements of Cash Flows

(in thousands)

	Six months ended June 30,
2015:	Parent			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Omnicare, Inc. and Subsidiaries
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(14,494	)	$	—	$	444,839		$	430,345
Cash flows from investing activities:
Acquisition of businesses, net of cash received	—			—		(54,802		)	(54,802		)
Capital expenditures	—			—		(27,664		)	(27,664		)
Net cash flows used in investing activities	—			—		(82,466		)	(82,466		)
Cash flows from financing activities:
Payments on terms loans	(10,000		)	—		—			(10,000		)
Payments on long-term borrowings and obligations	(5,999		)	—		—			(5,999		)
Fees paid for financing activities	(2,239		)	—		—			(2,239		)
Decrease in cash overdraft balance	4,790			—		(3,498		)	1,292
Payments for Omnicare common stock repurchase	(125,000		)	—		—			(125,000		)
Dividends paid	(42,362		)	—		—			(42,362		)
Other	349,560			—		(352,222		)	(2,662		)
Net cash flows from (used in) financing activities	168,750			—		(355,720		)	(186,970		)
Net increase in cash and cash equivalents	154,256			—		6,653			160,909
Less increase in cash and cash equivalents of discontinued operations	—			—		—			—
Increase in cash and cash equivalents of continuing operations	154,256			—		6,653			160,909
Cash and cash equivalents at beginning of period	113,072			—		40,727			153,799
Cash and cash equivalents at end of period	$	267,328		$	—	$	47,380		$	314,708
2014:
Cash flows from operating activities:
Net cash flows (used in) from operating activities	$	(57,203	)	$	—	$	453,583		$	396,380
Cash flows from investing activities:
Divestiture of business, net	—			—		7,114			7,114
Capital expenditures	—			—		(48,023		)	(48,023		)
Other	—			—		(690		)	(690		)
Net cash flows used in investing activities	—			—		(41,599		)	(41,599		)
Cash flows from financing activities:
Payments on term loans	(10,625		)	—		—			(10,625		)
Payments on long-term borrowings and obligations	(175,115		)	—		—			(175,115		)
Increase (decrease) in cash overdraft balance	314			—		(7,184		)	(6,870		)
Payments for Omnicare common stock repurchases	(160,438		)	—		—			(160,438		)
Dividends paid	(38,979		)	—		—			(38,979		)
Other	454,061			—		(452,660		)	1,401
Net cash flows from (used in) financing activities	69,218			—		(459,844		)	(390,626		)
Net increase (decrease) in cash and cash equivalents	12,015			—		(47,860		)	(35,845		)
Less increase in cash and cash equivalents of discontinued operations	—			—		5,430			5,430
Increase (decrease) in cash and cash equivalents of continuing operations	12,015			—		(53,290		)	(41,275		)
Cash and cash equivalents at beginning of period	275,910			—		80,091			356,001
Cash and cash equivalents at end of period	$	287,925		$	—	$	26,801		$	314,726