Express Scripts 2013 Annual Report Download - page 84

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Express Scripts 2013 Annual Report 84
We incurred financing costs of $91.0 million related to the bridge facility. Financing costs of $26.0 million were
immediately expensed upon entering into the credit agreement, which reduced the commitments under the bridge facility by
$4,000.0 million. The remaining financing costs of $65.0 million related to the bridge facility were capitalized and were
amortized through April 2012. Amortization of the deferred financing costs was accelerated in proportion to the amount by
which alternative financing replaced the commitments under the bridge facility.
Financing costs of $36.1 million related to the term facility and revolving facility are being amortized over 4.4
years. In conjunction with our payment of $1,000.0 million on the term loan, we wrote off a proportionate amount of financing
costs.
Deferred financing costs are reflected in other intangible assets, net in the accompanying consolidated balance
sheet.
COVENANTS
Our bank financing arrangements contain covenants that restrict our ability to incur additional indebtedness, create
or permit liens on assets and engage in mergers or consolidations. The covenants also include minimum interest coverage ratios
and maximum leverage ratios. The March 2008 Senior Notes are also subject to an interest rate adjustment in the event of a
downgrade in the ratings to below investment grade. At December 31, 2013, we believe we were in compliance with all
covenants associated with our credit agreements.
The following represents the schedule of current maturities, excluding unamortized discounts and premiums, for
our long-term debt as of December 31, 2013 (amounts in millions):
Year Ended December 31,
2014 $ 1,584.3
2015 2,552.6
2016 3,013.2
2017 1,500.0
2018 1,200.0
Thereafter 3,950.0
$ 13,800.1
8. Income taxes
Income from continuing operations before income taxes of $3,030.3 million resulted in net tax expense of $1,104.0
million for 2013. We consider our foreign earnings to be indefinitely reinvested, and accordingly have not recorded a provision
for U.S. federal and state income taxes thereon. Cumulative undistributed foreign earnings for which U.S. taxes have not been
provided are included in consolidated retained earnings in the amount of $82.2 million, $65.6 million and $53.7 million as of
December 31, 2013, 2012, and 2011, respectively. Upon distribution of such earnings, we would be subject to United States
income taxes of approximately $30.0 million.