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Express Scripts 2009 Annual Report
the redemption date. The Senior Notes are jointly and severally and fully and unconditionally guaranteed on a
senior unsecured basis by most of our current and future 100% owned domestic subsidiaries.
Financing costs of $13.3 million, for the issuance of the Senior Notes, are being amortized over an average
weighted period of 5.2 years and are reflected in other intangible assets, net in the accompanying consolidated
balance sheet. We used the net proceeds for the acquisition of WellPoint’s NextRx PBM Business (see Note 3).
We entered into a commitment letter with a syndicate of commercial banks for an unsecured, 364-day, $2.5
billion term loan credit facility in order to finance the NextRx acquisition. Upon completion of the public offering
of common stock and debt securities, we terminated the credit facility and incurred $56.3 million in fees and
incurred an additional $10.0 million in fees upon the completion of the acquisition.
The following represents the schedule of current maturities for our long-term debt as of December 31, 2009
(amounts in millions):
Year Ended December 31,
2010
$ 1,340.0
2011
0.1
2012
1,000.1
2013
0.1
2014
1,000.0
Thereafter
500.0
$ 3,840.3
10. Income taxes
Income from continuing operations before income taxes of $1,309.3 million resulted in net tax expense of
$482.8 million for 2009. We consider our Canadian earnings to be indefinitely reinvested and accordingly, have not
recorded a provision for United States federal and state income taxes thereon. Cumulative undistributed Canadian
earnings for which United States taxes have not been provided are included in consolidated retained earnings in the
amount of $40.6 million, $31.5 million and $34.3 million as of December 31, 2009, 2008, and 2007, respectively.
Upon distribution of such earnings, we would be subject to United States income taxes of approximately $14.6
million.
The provision (benefit) for income taxes for continuing operations consists of the following:
Year Ended December 31,
(in millions)
2009
2008
2007
Income from continuing operations before
income taxes:
United States
$ 1,313.3
$ 1,221.9
$ 937.1
Foreign
(4.0)
(8.3)
7.6
Total
$ 1,309.3
$ 1,213.6
$ 944.7
Current provision:
Federal
$ 407.6
$ 381.1
$ 320.9
State
25.5
18.2
15.8
Foreign
(1.8)
0.9
3.4
Total current provision
431.3
400.2
340.1
Deferred provision:
Federal
43.5
38.8
7.4
State
4.7
(2.1)
(2.4)
Foreign
3.3
(2.9)
(0.9)
Total deferred provision
51.5
33.8
4.1
Total current and deferred provision
$ 482.8
$ 434.0
$ 344.2
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