AmerisourceBergen 2007 Annual Report Download - page 22

(a) Includes $5.0 million of facility consolidations and employee severance costs, net of income tax expense of $2.9 million and a $22.1 million gain from antitrust litigation
settlements, net of income tax expense of $13.7 million and also includes $17.5 million relating to the write-down of tetanus-diphtheria vaccine inventory to its estimated
net realizable value, net of income tax benefit of $10.3 million.
As a result of the July 31, 2007 divestiture of Long-Term Care, the statement of operations data includes the operations of Long-Term Care for the ten months ended July 31,
2007 and the September 30, 2007 balance sheet data excludes Long-Term Care.
(b) Includes $14.2 million of facility consolidations and employee severance costs, net of income tax benefit of $5.9 million, a $25.8 million gain from antitrust litigation
settlements, net of income tax expense of $15.1 million, and a $4.1 million gain on the sale of an equity investment and an eminent domain settlement, net of income tax
expense of $2.4 million.
(c) Includes $14.0 million of facility consolidations and employee severance costs, net of income tax benefit of $8.7 million, a $71.4 million loss on early retirement of debt,
net of income tax benefit of $40.5 million, a $24.7 million gain from antitrust litigation settlements, net of income tax expense of $15.4 million and an impairment charge
of $3.2 million, net of income tax benefit of $2.1 million.
(d) Includes $4.6 million of facility consolidations and employee severance costs, net of income tax benefit of $2.9 million, a $14.5 million loss on early retirement of debt,
net of income tax benefit of $9.1 million, and a $23.4 million gain from an antitrust litigation settlement, net of income tax expense of $14.6 million.
(e) Includes $5.4 million of facility consolidations and employee severance costs, net of income tax benefit of $3.5 million and a $2.6 million loss on early retirement of debt,
net of income tax benefit of $1.6 million.
(f) On December 28, 2005, the Company effected a two-for-one stock split of its outstanding shares of common stock in the form of a 100% stock dividend. All applicable share
and per-share amounts have been retroactively adjusted to reflect this stock split.
(g) Effective October 1, 2004, the Company changed its method of recognizing cash discounts and other related manufacturer incentives. The Company recorded a $10.2 million
charge for the cumulative effect of change in accounting (net of income tax benefit of $6.3 million) in the consolidated statement of operations for the fiscal year ended
September 30, 2005. The $10.2 million charge reduced diluted earnings per share by $0.05 for the fiscal year ended September 30, 2005.
Had the Company used its current method of accounting for recognizing cash discounts and other related manufacturer incentives for each of the two fiscal years ended
September 30, 2004, diluted earnings per share from continuing operations would have been lower by $0.04 for fiscal 2003 and lower by $0.01 for fiscal 2004.
(h) Effective October 1, 2005, the Company adopted Statement of Financial Accounting Standard 123R, using the modified-prospective transition method, and therefore, began
to expense the fair value of all outstanding stock options over their remaining vesting periods to the extent the options were not fully vested as of the adoption date and
began to expense the fair value of all share-based compensation awards granted subsequent to September 30, 2005 over their requisite service periods. During the fiscal years
ended September 30, 2007 and 2006, we recorded $25.0 million and $16.4 million of share-based compensation expense, which had the effect of lowering diluted earnings
per share from continuing operations by $0.08 and $0.05, respectively. Had we expensed share-based compensation for each of the three years ended September 30, 2005,
diluted earnings per share from continuing operations would have been lower by $0.08 for fiscal 2003, lower by $0.37 for fiscal 2004 and lower by $0.02 for fiscal 2005.
(i) Balances as of September 30, 2004 reflect a change in accounting to accrue for customer sales returns. The impact of the accrual was to decrease accounts receivable, increase
merchandise inventories, and decrease operating revenue and cost of goods sold by $316.8 million. The accrual for customer sales returns had no impact on net income.
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Selected Financial Data
The following table should be read in conjunction with the consolidated financial statements, including the notes thereto, and Management’s
Discussion and Analysis of Financial Condition and Results of Operations available in the Company’s Annual Report on Form 10-K as filed
with the SEC for the Fiscal Year Ended September 30, 2007.
As of or for the fiscal year ended September 30,
(amounts in thousands, except per share amounts) 2007 (a) 2006 (b) 2005 (c) 2004 (d) 2003 (e)
Statement of Operations Data:
Operating revenue $61,669,032 $56,672,940 $50,012,598 $48,812,452 $45,463,400
Bulk deliveries to customer warehouses 4,405,280 4,530,205 4,564,723 4,308,339 4,120,639
Total revenue 66,074,312 61,203,145 54,577,321 53,120,791 49,584,039
Gross profit 2,326,739 2,231,815 1,980,184 2,166,430 2,225,613
Operating expenses 1,506,397 1,483,109 1,343,238 1,265,471 1,339,484
Operating income 820,342 748,706 636,946 900,959 886,129
Interest expense, net 32,288 12,464 57,223 112,704 144,748
Income from continuing operations 493,768 468,012 291,922 474,874 443,065
Net income 469,167 467,714 264,645 468,390 441,229
Earnings per share from continuing operations — diluted (f) (g) (h) 2.63 2.26 1.37 2.06 1.95
Earnings per share — diluted (f) (g) (h) 2.50 2.25 1.24 2.03 1.95
Cash dividends declared per common share (f) $0.20 $ 0.10 $ 0.05 $ 0.05 $ 0.05
Weighted average common shares outstanding — diluted (f) 187,886 207,446 215,540 235,558 231,908
Balance Sheet Data:
Cash and cash equivalents $ 640,204 $ 1,261,268 $ 966,553 $ 871,343 $ 800,036
Short-term investment securities available for sale 467,419 67,840 349,130 — —
Accounts receivable — net (i) 3,472,358 3,427,139 2,640,646 2,260,973 2,295,437
Merchandise inventories (i) 4,101,502 4,422,055 4,003,690 5,135,830 5,733,837
Property and equipment — net 506,984 509,746 514,758 465,264 353,170
Total assets 12,310,064 12,783,920 11,381,174 11,654,003 12,040,125
Accounts payable 6,988,782 6,499,264 5,292,253 4,947,037 5,393,769
Long-term debt, including current portion 1,227,774 1,095,491 952,711 1,438,471 1,784,154
Stockholders’ equity 3,099,720 4,141,157 4,280,357 4,339,045 4,005,317
Total liabilities and stockholders’ equity $12,310,064 $12,783,920 $11,381,174 $11,654,003 $12,040,125