Medco 2014 Annual Report Download - page 39

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37
Express Scripts 2014 Annual Report
(1) IncludestheacquisitionofMedcoeffectiveApril2,2012.
(2) Includesretailpharmacyco-paymentsof$10,272.7,$12,620.3,$11,668.6,$5,786.6and$6,181.4fortheyearsendedDecember31,
2014,2013,2012,2011and2010,respectively.
(3) Primarilyconsistsoftheresultsofoperationsfromthediscontinuedoperationsofouracuteinfusiontherapieslineofbusiness,
portionsofUBC,EAV,ourEuropeanoperationsandPMG.Ouracuteinfusiontherapieslineofbusinesswasclassifiedasa
discontinuedoperationin2013.PortionsofUBC,EAVandourEuropeanoperationswereclassifiedasdiscontinuedoperationsin
2012.PMGwasclassifiedasadiscontinuedoperationin2010.
(4) Earningspershareandweighted-averagesharesoutstandingreflectthetwo-for-onestockspliteffectiveJune8,2010.
(5) PriortotheMerger,ESIandMedcousedslightlydifferentmethodologiestoreportclaims;however,webelievethedifferences
betweentheclaimsreportedbyESIandMedcowouldnotbematerialhadthesamemethodologyapplied.Wehavesincecombined
thesetwoapproachesintoonemethodology.ThischangewasmadeprospectivelybeginningApril2,2012.Wehavenotrestatedthe
numberofclaimsinpriorperiods,becausethedifferencesarenotmaterial.
(6) Excludedfromnetworkclaimsaremanualclaimsanddrugformularyonlyclaimswhereweonlyadministertheclient’sformulary.
(7) Theseclaimsincludehomedelivery,specialtyandotherclaimsincluding:;(a)drugswedistributetootherPBMs’clientsunder
limiteddistributioncontractswithpharmaceuticalmanufacturers;(b)FreedomFPclaims;and(c)drugsdistributedthroughpatient
assistanceprograms.
(8) Totaladjustedclaimsreflecthomedeliveryclaimsmultipliedby3,ashomedeliveryclaimstypicallycoveratimeperiod3times
longerthannetworkclaims.
(9) EBITDAfromcontinuingoperationsattributabletoExpressScriptsisearningsbeforeinterestincome(expense),incometaxes,
depreciationandamortizationandequityincomefromjointventure,oralternativelycalculatedasoperatingincomeplus
depreciationandamortization.EBITDAfromcontinuingoperationsattributabletoExpressScriptsispresentedbecauseitisawidely
acceptedindicatorofacompany’sabilitytoserviceindebtednessandisfrequentlyusedtoevaluateacompany’sperformance.
EBITDAfromcontinuingoperationsattributabletoExpressScripts,however,shouldnotbeconsideredasanalternativetonet
income,asameasureofoperatingperformance,asanalternativetocashflow,asameasureofliquidityorasasubstituteforany
othermeasurecomputedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.Inaddition,ourdefinition
andcalculationofEBITDAfromcontinuingoperationsattributabletoExpressScriptsmaynotbecomparabletothatusedbyother
companies.
(in millions, except per share data) 2014 2013 2012(1) 2011 2010
Balance Sheet Data (as of December 31):
Cashandcashequivalents $1,832.6 $1,991.4 $2,793.1 $5,620.1 $523.7
Workingcapital(deficit) (6,448.8)(4,743.9)(2,300.5)2,599.9 (975.9)
Totalassets 53,798.9 53,548.2 58,111.2 15,607.0 10,557.8
Debt:
Short-termdebt 2,555.3 1,584.0 934.9 999.9 0.1
Long-termdebt 11,012.7 12,363.0 14,980.1 7,076.4 2,493.7
Capitalleaseobligation 28.4 42.0 — — —
Stockholders’equity 20,064.0 21,844.8 23,395.7 2,475.3 3,606.6
Networkclaims—continuingoperations(5)(6) 933.6 1,065.3 1,020.7 600.4 602.0
Homedelivery,specialtyandotherclaims—continuing
operations(5)(7) 128.5 141.2 128.7 53.4 54.1
Totalclaims—continuingoperations(5) 1,062.1 1,206.5 1,149.4 653.8 656.1
Totaladjustedclaims—continuingoperations(5)(8) 1,309.8 1,478.0 1,395.3 751.5 753.9
Cashflowsprovidedbyoperatingactivities—
continuingoperations $4,549.0 $4,768.9 $4,751.1 $2,193.1 $2,105.1
Cashflowsusedininvestingactivities—continuing
operations (411.9)(70.0)(10,428.7)(123.9)(145.1)
Cashflows(usedin)providedbyfinancingactivities—
continuingoperations (4,289.7)(5,494.8)2,850.4 3,029.4 (2,523.0)
EBITDAfromcontinuingoperationsattributableto
ExpressScripts(9) 5,817.9 5,970.6 4,648.1 2,565.1 2,315.6
33