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69
Express Scripts 2014 Annual Report
4. Dispositions
During2012and2013,wedeterminedvariousbusinesseswerenolongercoretoourfutureoperationsand
committedtoaplantodisposeofthesebusinesses.In2014,ourEuropeanoperationsweresubstantiallyshutdown.In2013,we
soldvariousportionsofourUBClineofbusinessandouracuteinfusiontherapieslineofbusiness.In2012,wesoldEAV,
LibertyandCYC.Priortothesalesofouracuteinfusiontherapieslineofbusiness,EAVandLiberty,goodwillandintangible
impairmentchargeswererecorded.Belowisasummaryof2013and2012chargesassociatedwiththesebusinessesandthe
impacttoourconsolidatedstatementofoperations.
December 31, 2013 December 31, 2012
(in millions)
Gain
Recorded
Upon Sale
Goodwill &
Intangible
Impairments
Gain
Recorded
Upon Sale
Goodwill &
Intangible
Impairments
E AV $—$—$3.7 $(11.5)
DisposedUBCoperations
Technologysolutionsandpublicationsfor
biopharmaceuticalcompanies 18.3 — — —
Healtheconomics,outcomesresearch,dataanalytics
andmarketaccessservices 11.4 — — —
Specialtyservicesforpre-markettrials 22.1 — — —
Acuteinfusiontherapieslineofbusiness 0.5 (32.9)— —
Recordedinnetlossfromdiscontinuedoperations,net
oftax $52.3 $(32.9) $ 3.7 $(11.5)
Liberty $—$—$0.5 $(23.0)
CYC(1) 3.5 — 14.3 —
Recordedinselling,generalandadministrative $3.5 $—$14.8 $(23.0)
Totaldispositioncharges $55.8 $(32.9) $ 18.5 $(34.5)
(1)Reflectsthesettlementofcertainworkingcapitalbalancesin2013.
Sale of our acute infusion therapies line of business. InNovember2013,wesoldouracuteinfusiontherapiesline
ofbusiness,whichwasincludedwithinourPBMsegmentbeforebeingclassifiedasadiscontinuedoperation.During2013,we
recognizedagainonthesaleofthisbusiness,netofthesaleofitsassets,whichtotaled$0.5million.Thegainisincludedinthe
“Netlossfromdiscontinuedoperations,netoftax”lineitemintheaccompanyingconsolidatedstatementofoperationsforthe
yearendedDecember31,2013.
In2013,inconnectionwithenteringintoanagreementforthesaleofthebusiness,animpairmentinthevalueof
therelatedgoodwillwasidentified.Theimpairmentcharge,whichtotaled$32.9million,wasrecordedandreflectsgoodwill
impairmentandthesubsequentwrite-downtofairmarketvalue.Thefairvaluewasdeterminedutilizingthecontractedsales
priceofthebusiness(Level2).Theimpairmentchargeisincludedinthe“Netlossfromdiscontinuedoperations,netoftax”
lineitemintheaccompanyingconsolidatedstatementofoperationsfortheyearendedDecember31,2013.
Sale of portions of UBC. InAugust2013,wesoldtheportionofourUBCbusinessrelatedtospecialtyservicesfor
pre-markettrialslocatedinWayne,Pennsylvaniaandrecognizedagainonthesaleofthisbusinesswhichtotaled$22.1million.
InJuly2013,wesoldtheportionofourUBCbusinessrelatedtoprovidinghealtheconomics,outcomesresearch,dataanalytics
andmarketaccessserviceslocatedinBethesda,Marylandandrecognizedagainonthesaleofthisbusinesswhichtotaled$11.4
million.InJune2013,wesoldtheportionofourUBCbusinesswhichprimarilyprovidedtechnologysolutionsandpublications
forbiopharmaceuticalcompanieslocatedinHorsham,UnitedKingdomandrecognizedagainonthesaleofthisbusinesswhich
totaled$18.3million.Thegainsonthesebusinessesareincludedinthe“Netlossfromdiscontinuedoperations,netoftax”line
itemintheaccompanyingconsolidatedstatementofoperationsfortheyearendedDecember31,2013.OurdisposedUBC
operationswereincludedwithinourOtherBusinessOperationssegmentbeforebeingclassifiedasdiscontinuedoperationsas
ofDecember31,2012.
65