AmerisourceBergen 2005 Annual Report Download - page 51

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AmerisourceBergen Corporation 2005
-49-
The following tables present reportable segment information for the periods indicated (dollars in thousands):
Revenue
Fiscal year ended September 30, 2005 2004 2003
Pharmaceutical Distribution $49,319,371 $48,113,015 $44,657,911
PharMerica 1,571,369 1,575,255 1,608,203
Intersegment eliminations (878,142) (875,818) (802,714)
Operating revenue 50,012,598 48,812,452 45,463,400
Bulk deliveries to customer warehouses 4,564,723 4,308,339 4,120,639
Total revenue $54,577,321 $53,120,791 $49,584,039
Management evaluates segment performance based on revenues excluding bulk deliveries to customer warehouses. For further information
regarding the nature of bulk deliveries, which only occur in the Pharmaceutical Distribution segment, see Note 1. Intersegment eliminations represent
the elimination of the Pharmaceutical Distribution segment’s sales to PharMerica. ABDC is the principal supplier of pharmaceuticals to PharMerica.
Operating Income
Fiscal year ended September 30, 2005 2004 2003
Pharmaceutical Distribution $532,887 $748,625 $791,216
PharMerica 91,947 121,846 103,843
Facility consolidations, employee severance and other (22,723) (7,517) (8,930)
Gain on litigation settlements 40,094 38,005 —
Impairment charge (5,259) — —
Operating income 636,946 900,959 886,129
Other (income) loss (990) (6,236) 8,015
Interest expense, net 57,223 112,704 144,748
Loss on early retirement of debt 111,888 23,592 4,220
Income from continuing operations before taxes and cumulative effect of
change in accounting $468,825 $770,899 $729,146
Segment operating income is evaluated before other (income) loss; interest expense, net; loss on early retirement of debt; facility
consolidations, employee severance and other; gain on litigation settlements; and impairment charge. All corporate office expenses are allocated
to the two reportable segments.
Assets
AtSeptember 30, 2005 2004
Pharmaceutical Distribution $10,803,578 $11,093,798
PharMerica 577,596 560,205
Total assets $11,381,174 $11,654,003
Depreciation & Amortization
Fiscal year ended September 30, 2005 2004 2003
Pharmaceutical Distribution $64,404 $58,358 $51,604
PharMerica 16,795 15,067 17,593
Total depreciation and amortization $81,199 $73,425 $69,197
Depreciation and amortization includes depreciation and amortization of property and equipment and intangible assets, but excludes
amortization of deferred financing costs and other debt-related items, which is included in interest expense.
Capital Expenditures
Fiscal year ended September 30, 2005 2004 2003
Pharmaceutical Distribution $182,347 $174,004 $70,207
PharMerica 21,029 15,274 20,347
Total capital expenditures $203,376 $189,278 $90,554
Note 15. DisclosureAbout Fair Value of Financial Instruments
The recorded amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable at September 30, 2005 and
2004 approximate fair value. The fair values of the Company’s debt instruments are estimated based on market prices. The recorded amount of
debt (see Note 6) andthe corresponding fair value as of September 30, 2005 were $952,711 and $941,568 respectively. The recorded amount
of debt (see Note 6) and the corresponding fair value as of September 30, 2004 were $1,438,471 and $1,539,846, respectively.