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Condensed Consolidating Financial Information
 12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Financial Information Condensed Consolidating Financial Information
The following tables present condensed consolidating financial information for: Owens & Minor, Inc. (O&M); the guarantors of Owens & Minor, Inc.’s 2021 Notes and 2024 Notes, on a combined basis; and the non-guarantor subsidiaries of the 2021 Notes and 2024 Notes, on a combined basis. The guarantor subsidiaries are 100% owned by Owens & Minor, Inc. Separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional, as well as joint and several, and we believe the condensed consolidating financial information is more meaningful in understanding the financial position, results of operations and cash flows of the guarantor subsidiaries. The prior period has been recast for the change in guarantor structure as a result of the amended Credit Agreement.
Condensed Consolidating Financial Information

Year ended December 31, 2019
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Operations
 
 
 
 
 
 
 
 
 
Net revenue
$
—

 
$
9,135,401

 
$
956,217

 
$
(880,679
)
 
$
9,210,939

Cost of goods sold
—

 
8,066,842

 
895,851

 
(880,245
)
 
8,082,448

Gross margin
—

 
1,068,559

 
60,366

 
(434
)
 
1,128,491

Distribution, selling and administrative expenses
(1,056
)
 
909,263

 
118,549

 
(3,691
)
 
1,023,065

Goodwill and intangible asset impairment charges
—

 
—

 
—

 
—

 
—

Acquisition-related and exit and realignment charges
—

 
24,757

 
5,293

 
—

 
30,050

Other operating (income) expense, net
(379
)
 
56,434

 
(53,830
)
 
—

 
2,225

Operating income (loss)
1,435

 
78,105

 
(9,646
)
 
3,257

 
73,151

Interest expense, net
(67,483
)
 
147,988

 
17,608

 
—

 
98,113

Other (income) expense, net
(1,173
)
 
2,003

 
2,927

 
—

 
3,757

Income (loss) from continuing operations before income taxes
70,091

 
(71,886
)
 
(30,181
)
 
3,257

 
(28,719
)
Income tax (benefit) provision
—

 
(5,207
)
 
(928
)
 
—

 
(6,135
)
Equity in earnings (loss) of subsidiaries
(92,675
)
 
(59,710
)
 
—

 
152,385

 
—

Income (loss) from continuing operations
(22,584
)
 
(126,389
)
 
(29,253
)
 
155,642

 
(22,584
)
Income (loss) from discontinued operations, net of tax
—

 
—

 
(39,787
)
 
—

 
(39,787
)
Net income (loss)
(22,584
)
 
(126,389
)
 
(69,040
)
 
155,642

 
(62,371
)
Other comprehensive income (loss), net of tax
(7,095
)
 
6,890

 
13,930

 
(20,820
)
 
(7,095
)
Comprehensive income (loss)
$
(29,679
)
 
$
(119,499
)
 
$
(55,110
)
 
$
134,822

 
$
(69,466
)

Year ended December 31, 2018
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Operations
 
 
 
 
 
 
 
 
 
Net revenue
$
—

 
$
9,420,326

 
$
691,073

 
$
(693,207
)
 
$
9,418,192

Cost of goods sold
—

 
8,418,859

 
618,834

 
(690,027
)
 
8,347,666

Gross margin
—

 
1,001,467

 
72,239

 
(3,180
)
 
1,070,526

Distribution, selling and administrative expenses
(4,242
)
 
882,224

 
74,883

 
—

 
952,865

Goodwill and intangible asset impairment charges
—

 
180,006

 
233,939

 
—

 
413,945

Acquisition-related and exit and realignment charges
—

 
45,997

 
13,104

 
—

 
59,101

Other operating (income) expense, net
—

 
3,881

 
(6,920
)
 
—

 
(3,039
)
Operating income (loss)
4,242

 
(110,641
)
 
(242,767
)
 
(3,180
)
 
(352,346
)
Interest expense, net
21,896

 
58,265

 
(9,178
)
 
—

 
70,983

Other (income) expense, net
3,765

 
—

 
—

 
—

 
3,765

Income (loss) from continuing operations before income taxes
(21,419
)
 
(168,906
)
 
(233,589
)
 
(3,180
)
 
(427,094
)
Income tax (benefit) provision
(5,569
)
 
(31,285
)
 
4,425

 
—

 
(32,429
)
Equity in earnings (loss) of subsidiaries
(421,162
)
 
(90,771
)
 
—

 
511,933

 
—

Income (loss) from continuing operations
(437,012
)
 
(228,392
)
 
(238,014
)
 
508,753

 
(394,665
)
Income (loss) from discontinued operations, net of tax
—

 
—

 
(42,347
)
 
—

 
(42,347
)
Net income (loss)
(437,012
)
 
(228,392
)
 
(280,361
)
 
508,753

 
(437,012
)
Other comprehensive income (loss), net of tax
(20,528
)
 
(14,940
)
 
(18,873
)
 
33,813

 
(20,528
)
Comprehensive income (loss)
$
(457,540
)
 
$
(243,332
)
 
$
(299,234
)
 
$
542,566

 
$
(457,540
)

 


December 31, 2019
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheets
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
45,187

 
$
3,011

 
$
18,808

 
$
24

 
$
67,030

Accounts receivable, net
77

 
890,548

 
915,798

 
(1,131,717
)
 
674,706

Merchandise inventories
—

 
973,529

 
177,853

 
(5,190
)
 
1,146,192

Other current assets
180

 
69,761

 
78,319

 
(68,888
)
 
79,372

Current assets of discontinued operations
—

 
—

 
439,983

 
—

 
439,983

Total current assets
45,444

 
1,936,849

 
1,630,761

 
(1,205,771
)
 
2,407,283

Property and equipment, net
—

 
196,708

 
118,719

 
—

 
315,427

Operating lease assets, net
—

 
142,219

 
—

 
—

 
142,219

Goodwill, net
—

 
109,276

 
283,905

 
—

 
393,181

Intangible assets, net
—

 
198,392

 
86,626

 
—

 
285,018

Due from O&M and subsidiaries
—

 
—

 
—

 
—

 
—

Advances to and investments in consolidated subsidiaries
1,608,017

 
363,122

 
—

 
(1,971,139
)
 
—

Other assets, net
5,948

 
824,349

 
27,750

 
(758,091
)
 
99,956

Total assets
$
1,659,409

 
$
3,770,915

 
$
2,147,761

 
$
(3,935,001
)
 
$
3,643,084

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
1,558,074

 
$
391,386

 
$
(1,141,425
)
 
$
808,035

Accrued payroll and related liabilities
—

 
38,755

 
14,829

 
—

 
53,584

Other current liabilities
4,403

 
235,955

 
93,243

 
(102,572
)
 
231,029

Current liabilities of discontinued operations
—

 
—

 
323,511

 
—

 
323,511

Total current liabilities
4,403

 
1,832,784

 
822,969

 
(1,243,997
)
 
1,416,159

Long-term debt, excluding current portion
688,110

 
809,565

 
10,740

 
—

 
1,508,415

Due to O&M and subsidiaries
487,306

 
80,093

 
786,382

 
(1,353,781
)
 
—

Intercompany debt
—

 
816,785

 
752,105

 
(1,568,890
)
 
—

Operating Lease Liabilities, excluding current portion
—

 
117,080

 
—

 
—

 
117,080

Deferred income taxes
—

 
—

 
40,550

 
—

 
40,550

Other liabilities
17,436

 
64,612

 
16,658

 
20

 
98,726

Total liabilities
1,197,255

 
3,720,919

 
2,429,404

 
(4,166,648
)
 
3,180,930

Equity
 
 
 
 
 
 
 
 

Common stock
125,686

 
—

 
—

 
—

 
125,686

Paid-in capital
251,401

 
174,614

 
123,869

 
(298,483
)
 
251,401

Retained earnings (deficit)
137,774

 
(88,615
)
 
(388,676
)
 
477,291

 
137,774

Accumulated other comprehensive income (loss)
(52,707
)
 
(36,003
)
 
(16,836
)
 
52,839

 
(52,707
)
Total equity
462,154

 
49,996

 
(281,643
)
 
231,647

 
462,154

Total liabilities and equity
$
1,659,409

 
$
3,770,915

 
$
2,147,761

 
$
(3,935,001
)
 
$
3,643,084



Condensed Consolidating Financial Information
 
December 31, 2018
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheets
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
37,254

 
$
5,294

 
$
23,760

 
$
—

 
$
66,308

Accounts receivable, net
—

 
804,638

 
415,944

 
(463,895
)
 
756,687

Merchandise inventories
—

 
1,060,083

 
218,401

 
(4,758
)
 
1,273,726

Other current assets
117

 
117,163

 
5,914

 
(1,268
)
 
121,926

Current assets of discontinued operations
—

 
—

 
319,930

 
—

 
319,930

Total current assets
37,371

 
1,987,178

 
983,949

 
(469,921
)
 
2,538,577

Property and equipment, net
—

 
201,055

 
122,888

 
—

 
323,943

Goodwill, net
—

 
414,122

 
—

 
—

 
414,122

Intangible assets, net
—

 
290,814

 
23,361

 
—

 
314,175

Due from O&M and subsidiaries
—

 
880,901

 
—

 
(880,901
)
 
—

Advances to and investments in consolidated subsidiaries
1,697,191

 
93,278

 
—

 
(1,790,469
)
 
—

Other assets, net
1,788

 
56,221

 
26,501

 
—

 
84,510

Other assets of discontinued operations
—

 
—

 
98,461

 
—

 
98,461

Total assets
$
1,736,350

 
$
3,923,569

 
$
1,255,160

 
$
(3,141,291
)
 
$
3,773,788

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$
—

 
$
1,190,283

 
$
350,272

 
$
(475,358
)
 
$
1,065,197

Accrued payroll and related liabilities
—

 
23,071

 
15,287

 
—

 
38,358

Other current liabilities
9,641

 
161,371

 
7,918

 
—

 
178,930

Current liabilities of discontinued operations
—

 
—

 
189,526

 
—

 
189,526

Total current liabilities
9,641

 
1,374,725

 
563,003

 
(475,358
)
 
1,472,011

Long-term debt, excluding current portion
595,856

 
1,040,664

 
11,398

 
—

 
1,647,918

Due to O&M and subsidiaries
605,558

 
—

 
67,900

 
(673,458
)
 
—

Intercompany debt
—

 
1,246,787

 
322,101

 
(1,568,888
)
 
—

Deferred income taxes
—

 
29,288

 
21,564

 
—

 
50,852

Other liabilities
6,876

 
51,366

 
19,448

 
—

 
77,690

Other liabilities of discontinued operations
—

 
—

 
6,898

 
—

 
6,898

Total liabilities
1,217,931

 
3,742,830

 
1,012,312

 
(2,717,704
)
 
3,255,369

Equity
 
 
 
 
 
 
 
 

Common stock
124,588

 
—

 
—

 
—

 
124,588

Paid-in capital
238,773

 
174,614

 
583,869

 
(758,483
)
 
238,773

Retained earnings (deficit)
200,670

 
37,777

 
(319,636
)
 
281,859

 
200,670

Accumulated other comprehensive income (loss)
(45,612
)
 
(31,652
)
 
(21,385
)
 
53,037

 
(45,612
)
Total equity
518,419

 
180,739

 
242,848

 
(423,587
)
 
518,419

Total liabilities and equity
$
1,736,350

 
$
3,923,569

 
$
1,255,160

 
$
(3,141,291
)
 
$
3,773,788




 


Condensed Consolidating Financial Information
Year ended December 31, 2019
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Cash Flows
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(22,584
)
 
$
(126,389
)
 
$
(69,040
)
 
$
155,642

 
$
(62,371
)
Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities:
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
92,675

 
59,710

 
—

 
(152,385
)
 
—

Depreciation and amortization
—

 
45,165

 
71,513

 
—

 
116,678

Share-based compensation expense
—

 
15,803

 
—

 
—

 
15,803

Impairment charges
—

 
—

 
32,112

 
 
 
32,112

Deferred income tax (benefit) expense
—

 
(7,725
)
 
(9,677
)
 
—

 
(17,402
)
Provision for losses on accounts receivable
—

 
(45
)
 
12,959

 
—

 
12,914

Change in operating right of use assets and lease liabilities
—

 
(226
)
 
(2,373
)
 
—

 
(2,599
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
(77
)
 
(85,865
)
 
(518,355
)
 
667,823

 
63,526

Merchandise inventories
—

 
86,554

 
40,933

 
434

 
127,921

Accounts payable
—

 
367,791

 
62,645

 
(666,067
)
 
(235,631
)
Net change in other assets and liabilities
(243
)
 
(709,524
)
 
819,991

 
(5,423
)
 
104,801

Other, net
1,297

 
4,566

 
4,470

 
—

 
10,333

Cash provided by (used for) operating activities
71,068

 
(350,185
)
 
445,178

 
24

 
166,085

Investing activities:
 
 
 
 
 
 
 
 
 
Additions to property and equipment
—

 
(25,298
)
 
(17,121
)
 
—

 
(42,419
)
Additions to computer software
—

 
(7,978
)
 
(1,831
)
 
—

 
(9,809
)
Proceeds from sale of property and equipment
—

 
—

 
331

 
—

 
331

Cash used for investing activities
—

 
(33,276
)
 
(18,621
)
 
—

 
(51,897
)
Financing activities:
 
 
 
 
 
 
 
 
 
Change in intercompany advances
(19,558
)
 
465,972

 
(446,414
)
 
—

 
—

Repayments from revolving credit facility
—

 
(32,200
)
 
—

 
—

 
(32,200
)
Repayment of debt
(37,311
)
 
(48,281
)
 
—

 
—

 
(85,592
)
Financing costs paid
—

 
(4,313
)
 
—

 
—

 
(4,313
)
Cash dividends paid
(5,226
)
 
—

 
—

 
—

 
(5,226
)
Other, net
(1,040
)
 
—

 
(1,826
)
 
—

 
(2,866
)
Cash (used for) provided by financing activities
(63,135
)
 
381,178

 
(448,240
)
 
—

 
(130,197
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
—

 
—

 
(2,671
)
 
—

 
(2,671
)
Net increase (decrease) in cash and cash, cash equivalents and restricted cash
7,933

 
(2,283
)
 
(24,354
)
 
24

 
(18,680
)
Cash, cash equivalents and restricted cash at beginning of year
37,254

 
5,294

 
60,819

 
—

 
103,367

Cash, cash equivalents and restricted at end of year
$
45,187

 
$
3,011

 
$
36,465

 
$
24

 
$
84,687


Year ended December 31, 2018
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Cash Flows
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(437,012
)
 
$
(228,392
)
 
$
(280,361
)
 
$
508,753

 
$
(437,012
)
Adjustments to reconcile net income to cash (used for) provided by operating activities:
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
421,162

 
90,771

 
—

 
(511,933
)
 
—

Intercompany dividend


 
30,000

 


 
(30,000
)
 
—

Depreciation and amortization
—

 
45,096

 
56,831

 
—

 
101,927

Share-based compensation expense
—

 
16,376

 
—

 
—

 
16,376

Goodwill and intangible asset impairment charges
—

 
180,006

 
259,607

 
—

 
439,613

Provision for losses on accounts receivable
—

 
9,654

 
(224
)
 
—

 
9,430

Deferred income tax (benefit) expense
—

 
(31,435
)
 
(3,583
)
 
—

 
(35,018
)
Changes in operating assets and liabilities:

 

 

 

 


Accounts receivable
—

 
(113,989
)
 
(332,056
)
 
457,151

 
11,106

Merchandise inventories
—

 
81,330

 
(149,959
)
 
3,178

 
(65,451
)
Accounts payable
—

 
225,119

 
335,650

 
(468,590
)
 
92,179

Net change in other assets and liabilities
2,355

 
(29,825
)
 
(7,575
)
 
11,441

 
(23,604
)
Other, net
854

 
5,741

 
(552
)
 
—

 
6,043

Cash provided by (used for) operating activities
(12,641
)
 
280,452

 
(122,222
)
 
(30,000
)
 
115,589

Investing activities:
 
 
 
 
 
 
 
 
 
Acquisition, net of cash acquired
—

 
(751,834
)
 
—

 
—

 
(751,834
)
Additions to computer software and intangible assets
—

 
(15,076
)
 
(5,736
)
 
—

 
(20,812
)
Additions to property and equipment
—

 
(33,245
)
 
(11,628
)
 
—

 
(44,873
)
Proceeds from sale of property and equipment
—

 
1,429

 
261

 
—

 
1,690

Cash used for investing activities
—

 
(798,726
)
 
(17,103
)
 
—

 
(815,829
)
Financing activities:
 
 
 
 
 
 
 
 
 
Change in intercompany advances
87,295

 
(242,609
)
 
155,314

 
—

 
—

Intercompany dividend
—

 
—

 
(30,000
)
 
30,000

 
—

Proceeds from issuance of debt
—

 
695,750

 
—

 
—

 
695,750

Proceed from revolving credit facility
—

 
105,500

 
—

 
—

 
105,500

Repayment of debt
—

 
(16,250
)
 
—

 
—

 
(16,250
)
Financing costs paid
—

 
(28,512
)
 
—

 
—

 
(28,512
)
Cash dividends paid
(48,200
)
 
—

 
—

 
—

 
(48,200
)
Other, net
(2,900
)
 
(1,391
)
 
(2,926
)
 
—

 
(7,217
)
Cash provided by financing activities
36,195

 
512,488

 
122,388

 
30,000

 
701,071

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
(1,986
)
 
—

 
(1,986
)
Net increase (decrease) in cash and cash equivalents
23,554

 
(5,786
)
 
(18,923
)
 
—

 
(1,155
)
Cash and cash equivalents at beginning of year
13,700

 
11,080

 
79,742

 
—

 
104,522

Cash and cash equivalents at end of year
$
37,254

 
$
5,294

 
$
60,819

 
$
—

 
$
103,367