Express Scripts 2014 Annual Report Download - page 54
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Please find page 54 of the 2014 Express Scripts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Express Scripts 2014 Annual Report
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SPECIALTYDRUGREVENUES
Weoperatespecialtypharmaciesthatdispensemedicationsforthetreatmentofcomplexandpotentiallylife
threateningdiseases.Manyoftheproductsarecoveredunderamedicalbenefitwhichresultsinamorecomplicated
adjudicationprocessandcoveragereview,ofteninvolvingaprimary,secondaryortertiarycoverage.Asaresult,certain
revenuesareestimatedbasedonhistoricalcollectionrates.Amountsreceivedfromourclientsmaybegreaterthanorlessthan
originallyestimated.Differencesmayaffecttheamountandtimingofrevenuesforanyperiodifactualpricingvariesfrom
estimates.Allowancesforreturnsareestimatedbasedonhistoricalreturntrends.Thediscounts,contractualallowances,
allowancesforreturnsandanydifferencesbetweenestimatesandactualamountsdonothaveamaterialeffectonour
consolidatedfinancialstatements.
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Item 7A — Quantitative and Qualitative Disclosures About Market Risk
Weareexposedtomarketriskfromchangesininterestratesrelatedtodebtoutstandingunderourcredit
agreement.Ourearningsaresubjecttochangeasaresultofmovementsinmarketinterestrates.AtDecember31,2014,wehad
$1,315.8millionofgrossobligationswhichweresubjecttovariableratesofinterestunderourcreditagreement.Ahypothetical
increaseininterestratesof1%wouldresultinanincreaseinannualinterestexpenseofapproximately$13.2million(pre-tax),
assumingobligationssubjecttovariableinterestratesremainedconstant.