Medco 2014 Annual Report Download - page 49

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47
Express Scripts 2014 Annual Report
The2013ASRAgreementwasaccountedforasaninitialtreasurystocktransactionandaforwardstockpurchase
contract.Werecordedthistransactionasanincreasetotreasurystockof$1,350.1million,andrecordedtheremaining$149.9
millionasadecreasetoadditionalpaid-incapitalintheconsolidatedbalancesheetatDecember31,2013.The$149.9million
recordedinadditionalpaid-incapitalwasreclassifiedtotreasurystockuponcompletionofthe2013ASRProgramonApril16,
2014.Theforwardstockpurchasecontractwasclassifiedasanequityinstrumentandwasdeemedtohaveafairvalueofzero
attheeffectivedateofthe2013ASRAgreement.Theinitialdeliveryofsharesresultedinanimmediatereductionofthe
outstandingsharesusedtocalculatetheweighted-averagecommonsharesoutstandingforbasicanddilutednetincomeper
shareontheeffectivedateofthe2013ASRAgreement.Theremaining0.6millionsharesreceivedforthesettlementtothe
ASRProgramreducedweighted-averagecommonsharesoutstandingfortheyearendedDecember31,2014.
STOCK REPURCHASE PROGRAM
IneachofMarch2014andDecember2014,theBoardofDirectorsofExpressScriptsapprovedanincreaseinthe
authorizednumberofsharesthatmaybepurchasedunderthesharerepurchaseprogram(the“ShareRepurchaseProgram”),
originallyannouncedandexecutedduring2013.Eachauthorizationapprovedanadditional65.0millionshares,foratotal
authorizationof205.0millionshares(includingsharespreviouslypurchased,asadjustedforanysubsequentstocksplit,stock
dividendorsimilartransaction)oftheCompany’scommonstock.
Includingthesharesrepurchasedthroughthe2013ASRProgram,werepurchased62.1millionand60.4million
sharesfor$4,642.9millionand$3,905.3millionduringtheyearsendedDecember31,2014and2013,respectively.Additional
sharerepurchases,ifany,willbemadeinsuchamountsandatsuchtimesastheCompanydeemsappropriatebasedupon
prevailingmarketandbusinessconditionsandotherfactors.AsofDecember31,2014,therewere83.7millionshares
remainingundertheShareRepurchaseProgram.Currentyearrepurchaseswerefundedthroughinternallygeneratedcashand
debt.
UponconsummationoftheMergeronApril2,2012,allESIsharesheldintreasurywerenolongeroutstandingand
werecancelledandretiredandceasedtoexist.SeeNote9-Commonstock.
SENIOR NOTES
FollowingtheconsummationoftheMergeronApril2,2012,severalseriesofseniornotesissuedbyMedcoare
reportedasdebtobligationsofExpressScripts.ThebelowdescriptionreflectstheredemptionactivityoftheCompanyforthe
yearsendedDecember31,2014and2013.SeeNote7-Financingforacompletesummaryofoutstandingseniornotes.
TheJune2014seniornotes(the“June2014SeniorNotes”)consistof:
• $500.0millionaggregateprincipalamountof1.250%seniornotesdue2017
• $1,000.0millionaggregateprincipalamountof2.250%seniornotesdue2019
• $1,000.0millionaggregateprincipalamountof3.500%seniornotesdue2024
AportionofthenetproceedsfromthesaleoftheJune2014SeniorNoteswasusedtoredeemalloftheCompany’s
outstanding3.500%seniornotesdue2016inJuly2014andtopayforaportionoftheCompany’soutstanding2.750%senior
notesdue2014attheirmaturityonNovember15,2014,andtheremainderisforgeneralcorporatepurposes,whichincludes
repurchasesoftheCompany’scommonstockunderitsShareRepurchaseProgrampursuanttoopenmarkettransactions.
InNovember2014,$900.0millionaggregateprincipalamountof2.750%seniornotesdue2014maturedandwere
redeemed.InJuly2014,$1,250.0millionaggregateprincipalamountof3.500%seniornotesdue2016wereredeemed.
InMarch2013,$1,000.0millionaggregateprincipalamountof6.250%seniornotesdue2014wereredeemed.
InMarch2013,$300.0millionaggregateprincipalamountof6.125%seniornotesdue2013maturedandwere
redeemed.
BANK CREDIT FACILITIES
InDecember2014,theCompanyenteredintocreditagreementsprovidingforthreeuncommittedrevolvingcredit
facilities(the“2014creditfacilities”),eachfor$150.0million,whichareavailableforgeneralcorporatepurposes.The2014
creditfacilitiesareavailablefromDecember17,2014untilDecember16,2015,fromJanuary2,2015untilJanuary2,2016
andfromDecember19,2014untilDecember19,2015,respectively.AsofDecember31,2014,noamountsweredrawnunder
the2014creditfacilities.Thematuritydateofeachloandrawnunderthe2014creditfacilitiescanbespecifiedbytheCompany
43