Condensed consolidating financial information

6 Months Ended

Jun. 30, 2011

Condensed consolidating financial information [Abstract]

Condensed consolidating financial information

Note 11 — Condensed consolidating financial information

     Our senior notes are jointly and severally and fully and unconditionally guaranteed by our 100% owned domestic subsidiaries, other than certain regulated subsidiaries including Express Scripts Insurance Company. The following condensed consolidating financial information has been prepared in accordance with the requirements for presentation of such information. Effective September 17, 2010, PMG was sold. The assets, liabilities, and operations from PMG are included as discontinued operations in those of the non-guarantors for all periods presented. Certain amounts from prior periods have been reclassified to conform to current period presentation. The following presents the condensed consolidating financial information separately for:

(i)	Express Scripts, Inc. (the Parent Company), the issuer of the guaranteed obligations;
(ii)	Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Express Scripts’ obligations under the notes;
(iii)	Non-guarantor subsidiaries, on a combined basis;
(iv)	Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries and (c) record consolidating entries; and
(v)	Express Scripts, Inc. and subsidiaries on a consolidated basis.

Condensed Consolidating Balance Sheet

	Express				Non-
(in millions)	Scripts, Inc.		Guarantors		Guarantors		Eliminations			Consolidated
As of June 30, 2011
Cash and cash equivalents	$	198.7	$	3.2	$	89.1	$	—		$	291.0
Restricted cash and investments		—		11.2		4.7		—			15.9
Receivables, net		1,322.3		605.7		11.4		—			1,939.4
Other current assets		24.6		388.7		36.9		—			450.2
Total current assets		1,545.6		1,008.8		142.1		—			2,696.5
Property and equipment, net		236.5		118.0		15.3		—			369.8
Investments in subsidiaries		6,558.0		—		—		(6,558.0	)		—
Intercompany		—		3,525.7		—		(3,525.7	)		—
Goodwill		2,921.4		2,538.8		26.6		—			5,486.8
Other intangible assets, net		1,376.5		275.8		3.9		—			1,656.2
Other assets		23.5		4.2		0.9		—			28.6
Total assets	$	12,661.5	$	7,471.3	$	188.8	$	(10,083.7	)	$	10,237.9
Claims and rebates payable	$	2,530.5	$	0.4	$	—	$	—		$	2,530.9
Accounts payable		726.4		16.4		2.8		—			745.6
Accrued expenses		58.4		416.2		12.6		—			487.2
Current maturities of long-term debt		999.8		—		—		—			999.8
Total current liabilities		4,315.1		433.0		15.4		—			4,763.5
Long-term debt		3,088.7		—		—		—			3,088.7
Intercompany		3,368.2		—		157.5		(3,525.7	)		—
Other liabilities		61.5		493.9		2.3		—			557.7
Stockholders’ equity		1,828.0		6,544.4		13.6		(6,558.0	)		1,828.0
Total liabilities and stockholders’ equity	$	12,661.5	$	7,471.3	$	188.8	$	(10,083.7	)	$	10,237.9
As of December 31, 2010
Cash and cash equivalents	$	456.7	$	9.0	$	58.0	$	—		$	523.7
Restricted cash and investments		—		11.7		4.6		—			16.3
Receivables, net		1,175.6		536.2		9.1		—			1,720.9
Other current assets		249.0		396.0		35.4		—			680.4
Total current assets		1,881.3		952.9		107.1		—			2,941.3
Property and equipment, net		231.5		127.2		14.0		—			372.7
Investments in subsidiaries		6,382.2		—		—		(6,382.2	)		—
Intercompany		—		3,214.0		—		(3,214.0	)		—
Goodwill		2,921.4		2,538.8		26.0		—			5,486.2
Other intangible assets, net		1,426.2		294.8		4.0		—			1,725.0
Other assets		20.6		10.1		1.9		—			32.6
Total assets	$	12,863.2	$	7,137.8	$	153.0	$	(9,596.2	)	$	10,557.8
Claims and rebates payable	$	2,664.9	$	1.6	$	—	$	—		$	2,666.5
Accounts payable		634.4		17.7		4.6		—			656.7
Accrued expenses		288.7		294.5		10.7		—			593.9
Current maturities of long-term debt		—		0.1		—		—			0.1
Total current liabilities		3,588.0		313.9		15.3		—			3,917.2
Long-term debt		2,493.7		—		—		—			2,493.7
Intercompany		3,094.8		—		119.2		(3,214.0	)		—
Other liabilities		80.1		455.5		4.7		—			540.3
Stockholders’ equity		3,606.6		6,368.4		13.8		(6,382.2	)		3,606.6
Total liabilities and stockholders’ equity	$	12,863.2	$	7,137.8	$	153.0	$	(9,596.2	)	$	10,557.8

Condensed Consolidating Statement of Operations

	Express						Non-
(in millions)	Scripts, Inc.			Guarantors			Guarantors			Eliminations			Consolidated
For the three months ended June 30, 2011
Revenues	$	7,239.1		$	4,084.2		$	38.1		$	—		$	11,361.4
Operating expenses		6,820.2			3,930.0			31.9			—			10,782.1
Operating income		418.9			154.2			6.2			—			579.3
Interest expense, net		(47.5	)		(1.3	)		—			—			(48.8	)
Income before income taxes		371.4			152.9			6.2			—			530.5
Provision for income taxes		136.4			58.0			1.9			—			196.3
Net income from continuing operations		235.0			94.9			4.3			—			334.2
Equity in earnings of subsidiaries		99.2			—			—			(99.2	)		—
Net income (loss)	$	334.2		$	94.9		$	4.3		$	(99.2	)	$	334.2
For the three months ended June 30, 2010
Revenues	$	7,467.2		$	3,800.1		$	21.5		$	—		$	11,288.8
Operating expenses		7,051.0			3,685.3			22.2			—			10,758.5
Operating income (loss)		416.2			114.8			(0.7	)		—			530.3
Interest (expense) income, net		(40.1	)		(1.5	)		0.1			—			(41.5	)
Income (loss) before income taxes		376.1			113.3			(0.6	)		—			488.8
Provision for income taxes		141.4			40.4			(0.3	)		—			181.5
Net income (loss) from continuing operations		234.7			72.9			(0.3	)		—			307.3
Net loss from discontinued operations, net of tax		—			—			(17.4	)		—			(17.4	)
Equity in earnings of subsidiaries		55.2			—			—			(55.2	)		—
Net income (loss)	$	289.9		$	72.9		$	(17.7	)	$	(55.2	)	$	289.9
For the six months ended June 30, 2011
Revenues	$	14,412.2		$	7,981.4		$	62.3		$	—		$	22,455.9
Operating expenses		13,545.8			7,718.8			59.6			—			21,324.2
Operating income		866.4			262.6			2.7			—			1,131.7
Interest (expense) income, net		(85.4	)		(3.0	)		0.3			—			(88.1	)
Income before income taxes		781.0			259.6			3.0			—			1,043.6
Provision for income taxes		283.5			96.0			3.4			—			382.9
Net income (loss) from continuing operations		497.5			163.6			(0.4	)		—			660.7
Equity in earnings of subsidiaries		163.2			—			—			(163.2	)		—
Net income (loss)	$	660.7		$	163.6		$	(0.4	)	$	(163.2	)	$	660.7
For the six months ended June 30, 2010
Revenues	$	14,861.7		$	7,522.8		$	42.7		$	—		$	22,427.2
Operating expenses		14,102.6			7,293.2			46.4			—			21,442.2
Operating income (loss)		759.1			229.6			(3.7	)		—			985.0
Interest (expense) income, net		(79.7	)		(3.0	)		0.1			—			(82.6	)
Income (loss) before income taxes		679.4			226.6			(3.6	)		—			902.4
Provision for income taxes		251.7			83.1			(0.3	)		—			334.5
Net income (loss) from continuing operations		427.7			143.5			(3.3	)		—			567.9
Net loss from discontinued operations, net of tax		—			—			(17.8	)		—			(17.8	)
Equity in earnings of subsidiaries		122.4			—			—			(122.4	)		—
Net income (loss)	$	550.1		$	143.5		$	(21.1	)	$	(122.4	)	$	550.1

Condensed Consolidating Statement of Cash Flows

	Express						Non-
	Scripts, Inc.			Guarantors			Guarantors			Eliminations			Consolidated
For the six months ended June 30, 2011
Net cash flows provided by (used in) operating activities	$	573.2		$	295.6		$	(2.5	)	$	(163.2	)	$	703.1
Cash flows from investing activities:
Purchase of property and equipment		(46.2	)		(4.1	)		(3.8	)		—			(54.1	)
Other		—			2.1			0.3			—			2.4
Net cash used in investing activities		(46.2	)		(2.0	)		(3.5	)		—			(51.7	)
Cash flows from financing activities:
Treasury stock acquired		(2,515.7	)		—			—			—			(2,515.7	)
Proceeds from long-term debt, net of discounts		1,494.0			—			—			—			1,494.0
Proceeds from revolving credit line, net		100.0			—			—			—			100.0
Tax benefit relating to employee stock compensation		25.9			—			—			—			25.9
Net proceeds from employee stock plans		23.1			—			—			—			23.1
Deferred financing fees		(10.9	)		—			—			—			(10.9	)
Repayment of long-term debt		(0.1	)		—			—			—			(0.1	)
Net transactions with parent		98.7			(299.4	)		37.5			163.2			—
Net cash (used in) provided by financing activities		(785.0	)		(299.4	)		37.5			163.2			(883.7	)
Effect of foreign currency translation adjustment		—			—			(0.4	)		—			(0.4	)
Net (decrease) increase in cash and cash equivalents		(258.0	)		(5.8	)		31.1			—			(232.7	)
Cash and cash equivalents at beginning of period		456.7			9.0			58.0			—			523.7
Cash and cash equivalents at end of period	$	198.7		$	3.2		$	89.1		$	—		$	291.0

Condensed Consolidating Statement of Cash Flows

	Express						Non-
	Scripts, Inc.			Guarantors			Guarantors			Eliminations			Consolidated
For the six months ended June 30, 2010
Net cash flows provided by (used in) operating activities	$	977.9		$	589.3		$	4.0		$	(122.4	)	$	1,448.8
Cash flows from investing activities:
Purchase of property and equipment		(29.2	)		(21.4	)		(0.5	)		—			(51.1	)
Other		11.6			(1.9	)		(7.0	)		—			2.7
Net cash used in investing activities — continuing operations		(17.6	)		(23.3	)		(7.5	)		—			(48.4	)
Net cash used in investing activities — discontinued operations		—			—			(0.8	)		—			(0.8	)
Net cash used in investing activities		(17.6	)		(23.3	)		(8.3	)		—			(49.2	)
Cash flows from financing activities:
Treasury stock acquired		(528.7	)		—			—			—			(528.7	)
Repayment of long-term debt		(360.0	)		—			—			—			(360.0	)
Tax benefit relating to employee stock compensation		30.8			—			—			—			30.8
Net proceeds from employee stock plans		16.7			—			—			—			16.7
Net transactions with parent		445.6			(567.5	)		(0.5	)		122.4			—
Net cash provided by (used in) financing activities		(395.6	)		(567.5	)		(0.5	)		122.4			(841.2	)
Effect of foreign currency translation adjustment		—			—			2.4			—			2.4
Net increase (decrease) in cash and cash equivalents		564.7			(1.5	)		(2.4	)		—			560.8
Cash and cash equivalents at beginning of period		1,005.0			10.0			55.4			—			1,070.4
Cash and cash equivalents at end of period	$	1,569.7		$	8.5		$	53.0		$	—		$	1,631.2