Document and Company Informatio
Document and Company Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| Jun. 30, 2009
| |
Document and Company Information [Abstract] | |||
Entity Registrant Name | EXPRESS SCRIPTS INC | ||
Entity Central Index Key | 0000885721 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $18,660,280,000 | ||
Entity Common Stock, Shares Outstanding | 275,298,000 |
Consolidated Balance Sheet
Consolidated Balance Sheet (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets: | ||
Cash and cash equivalents | 1070.4 | 530.7 |
Restricted cash and investments | 9.1 | 4.8 |
Receivables, net | 2521.2 | 1155.9 |
Inventories | 313 | 203 |
Deferred taxes | 135 | 118.2 |
Prepaid expenses and other current assets | 94.8 | 31.2 |
Total current assets | 4143.5 | 2043.8 |
Property and equipment, net | 354.1 | 222.2 |
Goodwill | 5519.2 | 2881.1 |
Other intangible assets, net | 1882.6 | 332.6 |
Other assets | 31.8 | 29.5 |
Total assets | 11931.2 | 5509.2 |
Current liabilities: | ||
Claims and rebates payable | 2850.7 | 1380.7 |
Accounts payable | 706.9 | 496.4 |
Accrued expenses | 552.4 | 420.5 |
Current maturities of long-term debt | 1340.1 | 420 |
Current liabilities of discontinued operations | 6.7 | 4.1 |
Total current liabilities | 5456.8 | 2721.7 |
Long-term debt | 2492.5 | 1340.3 |
Other liabilities | 430.1 | 369 |
Total liabilities | 8379.4 | 4,431 |
Stockholders' equity: | ||
Preferred stock, 5,000,000 shares authorized, $0.01 par value per share; and no shares issued and outstanding | 0 | 0 |
Common stock, 1,000,000,000 shares authorized, $0.01 par value; shares issued: 345,279,000 and 318,958,000, respectively; shares outstanding: 275,007,000 and 247,649,000, respectively | 3.5 | 3.2 |
Additional paid-in capital | 2,260 | 640.8 |
Accumulated other comprehensive income | 14.1 | 6.2 |
Retained earnings | 4188.6 | 3,361 |
Stockholders' equity before treasury stock | 6466.2 | 4011.2 |
Common stock in treasury at cost, 70,272,000 and 71,309,000 shares, respectively | -2914.4 | (2,933) |
Total stockholders' equity | 3551.8 | 1078.2 |
Total liabilities and stockholders' equity | 11931.2 | 5509.2 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
Stockholders' equity: | ||
Preferred stock, par value per share | 0.01 | 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | 0.01 | 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 345,279,000 | 318,958,000 |
Common stock, shares outstanding | 275,007,000 | 247,649,000 |
Common stock in treasury at cost, shares | 70,272,000 | 71,309,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||
Revenues | 24748.9 | [1] | $21,978 | [1] | $21,824 | [1] | |||||||||||||
Cost of revenues | 22318.5 | [1] | 19937.1 | [1] | 20065.2 | [1] | |||||||||||||
Gross profit | 2430.4 | 2040.9 | 1758.8 | ||||||||||||||||
Selling, general and administrative | 932 | 760.4 | 698 | ||||||||||||||||
Operating income | 1498.4 | 1280.5 | 1060.8 | ||||||||||||||||
Other (expense) income: | |||||||||||||||||||
Non-operating charges, net | 0 | (2) | -18.6 | ||||||||||||||||
Undistributed loss from joint venture | 0 | -0.3 | -1.3 | ||||||||||||||||
Interest income | 5.3 | 13 | 12.2 | ||||||||||||||||
Interest expense | -194.4 | -77.6 | -108.4 | ||||||||||||||||
Total other (expense) income | -189.1 | -66.9 | -116.1 | ||||||||||||||||
Income before income taxes | 1309.3 | 1213.6 | 944.7 | ||||||||||||||||
Provision for income taxes | 482.8 | 434 | 344.2 | ||||||||||||||||
Net income from continuing operations | 826.5 | 779.6 | 600.5 | ||||||||||||||||
Net income (loss) from discontinued operations, net of tax | 1.1 | -3.5 | -32.7 | ||||||||||||||||
Net income | 827.6 | 776.1 | 567.8 | ||||||||||||||||
Weighted average number of common shares outstanding during the period: | |||||||||||||||||||
Basic: | 263.5 | 248.9 | 260.4 | ||||||||||||||||
Diluted: | 266.1 | 251.8 | 264 | ||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | 3.14 | 3.13 | 2.31 | ||||||||||||||||
Discontinued operations | $0 | -0.01 | -0.13 | ||||||||||||||||
Net earnings | 3.14 | 3.12 | 2.18 | ||||||||||||||||
Diluted earnings (loss) per share: | |||||||||||||||||||
Continuing operations | 3.11 | 3.1 | 2.27 | ||||||||||||||||
Discontinued operations | $0 | -0.01 | -0.12 | ||||||||||||||||
Net earnings | 3.11 | 3.08 | 2.15 | ||||||||||||||||
[1]Includes retail pharmacy co-payments of $3,132.1, $3,153.6, and $3,554.5 for the years ended December 31, 2009, 2008, and 2007, respectively. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (USD $) | ||||||
In Millions | Common Stock
| Additional Paid-in Capital
| Accumulated Other Comprehensive Income
| Retained Earnings
| Treasury Stock
| Total
|
Beginning Balance, shares at Dec. 31, 2006 | 159.4 | |||||
Beginning Balance at Dec. 31, 2006 | 1.6 | 495.3 | 11.9 | 2017.3 | -1401.2 | 1124.9 |
Comprehensive income: | ||||||
Net income | 567.8 | 567.8 | ||||
Other comprehensive income, | ||||||
Foreign currency translation adjustment | 11 | 11 | ||||
Realized and unrealized gain on available for sale securities; net of taxes | (2) | (2) | ||||
Comprehensive income | 9 | 567.8 | 576.8 | |||
Stock split in form of dividend | 1.6 | -1.6 | ||||
Stock split in form of dividend, shares | 159.4 | |||||
Treasury stock acquired | -1140.3 | -1140.3 | ||||
Common stock issued under employee plans, net of forfeitures and stock redeemed for taxes | 1.5 | 3.1 | 4.6 | |||
Common stock issued under employee plans, net of forfeitures and stock redeemed for taxes, shares | 0.1 | |||||
Amortization of unearned compensation under employee plans | 31.6 | 31.6 | ||||
Exercise of stock options | -11.7 | 61.3 | 49.6 | |||
Tax benefit relating to employee stock compensation | 49.4 | 49.4 | ||||
Cumulative effect of adoption of FIN 48 | -0.2 | -0.2 | ||||
Ending Balance at Dec. 31, 2007 | 3.2 | 564.5 | 20.9 | 2584.9 | -2477.1 | 696.4 |
Ending Balance, shares at Dec. 31, 2007 | 318.9 | |||||
Comprehensive income: | ||||||
Net income | 776.1 | 776.1 | ||||
Other comprehensive income, | ||||||
Foreign currency translation adjustment | -14.7 | -14.7 | ||||
Comprehensive income | -14.7 | 776.1 | 761.4 | |||
Treasury stock acquired | -494.4 | -494.4 | ||||
Common stock issued under employee plans, net of forfeitures and stock redeemed for taxes | 0.6 | 4 | 4.6 | |||
Amortization of unearned compensation under employee plans | 40.3 | 40.3 | ||||
Exercise of stock options | -6.8 | 34.5 | 27.7 | |||
Tax benefit relating to employee stock compensation | 42.2 | 42.2 | ||||
Ending Balance at Dec. 31, 2008 | 3.2 | 640.8 | 6.2 | 3,361 | (2,933) | 1078.2 |
Ending Balance, shares at Dec. 31, 2008 | 318.9 | |||||
Comprehensive income: | ||||||
Net income | 827.6 | 827.6 | ||||
Other comprehensive income, | ||||||
Foreign currency translation adjustment | 7.9 | 7.9 | ||||
Comprehensive income | 7.9 | 827.6 | 835.5 | |||
Issuance of common stock, net of costs | 0.3 | 1568.8 | 1569.1 | |||
Issuance of common stock, net of costs, shares | 26.4 | |||||
Common stock issued under employee plans, net of forfeitures and stock redeemed for taxes | (3) | 6 | 3 | |||
Amortization of unearned compensation under employee plans | 44.6 | 44.6 | ||||
Exercise of stock options | -4.6 | 12.6 | 8 | |||
Tax benefit relating to employee stock compensation | 13.4 | 13.4 | ||||
Ending Balance at Dec. 31, 2009 | 3.5 | $2,260 | 14.1 | 4188.6 | -2914.4 | 3551.8 |
Ending Balance, shares at Dec. 31, 2009 | 345.3 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities: | |||
Net income | 827.6 | 776.1 | 567.8 |
Net (income) loss from discontinued operations, net of tax | -1.1 | 3.5 | 32.7 |
Net income from continuing operations | 826.5 | 779.6 | 600.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 109.9 | 97.7 | 97.5 |
Deferred financing fees | 66.3 | 2.4 | 2.2 |
Deferred income taxes | 51.5 | 33.8 | 4.1 |
Bad debt expense | 24.1 | 30.1 | 36.7 |
Employee stock-based compensation expense | 44.6 | 40.2 | 31.6 |
Other, net | 3.3 | 18.3 | -1.7 |
Changes in operating assets and liabilities, net of changes resulting from acquisitions: | |||
Receivables | -505.4 | 21.9 | 71.6 |
Inventories | -58.1 | (38) | 25.3 |
Other current and non-current assets | -68.4 | 5.4 | 6.9 |
Claims and rebates payable | 995.4 | 113 | -16.8 |
Other current and non-current liabilities | 267.9 | -8.8 | -9.8 |
Net cash provided by operating activities-continuing operations | 1757.6 | 1095.6 | 848.1 |
Net cash provided by (used in) operating activities-discontinued operations | 13.9 | 7.4 | -20.8 |
Net cash flows provided by operating activities | 1771.5 | 1,103 | 827.3 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired, and investment in joint venture | -4672.6 | -251.5 | -14.3 |
Purchase of short-term investments | -1201.4 | 0 | 0 |
Sale of short-term investments | 1198.9 | 0 | 0 |
Purchases of property and equipment | -149.4 | -85.8 | (75) |
Cash received from short-term investment | 6.4 | 38.9 | 0 |
Short-term investment transferred from cash | 0 | -49.3 | 0 |
Sale of marketable securities | 0 | 0 | 34.2 |
Proceeds from the sale of business | 0 | 27.7 | 0 |
Other | -4.3 | -0.6 | -0.7 |
Net cash used in investing activities-continuing operations | -4822.4 | -320.6 | -55.8 |
Net cash used in investing activities-discontinued operations | 0 | 0 | -2.5 |
Net cash used in investing activities | -4822.4 | -320.6 | -58.3 |
Cash flows from financing activities: | |||
Proceeds from long-term debt, net of discounts | 2491.6 | 0 | 800 |
Net proceeds from stock issuance | 1569.1 | 0 | 0 |
Repayment of long-term debt | -420.1 | (260) | -180.1 |
Deferred financing fees | -79.5 | 0 | -1.5 |
Tax benefit relating to employee stock-based compensation | 13.4 | 42.1 | 49.4 |
Net proceeds from employee stock plans | 12.5 | 31.9 | 52.8 |
Repayments of revolving credit line, net | 0 | 0 | (50) |
Treasury stock acquired | 0 | -494.4 | -1140.3 |
Net cash provided by (used in) financing activities | 3,587 | -680.4 | -469.7 |
Effect of foreign currency translation adjustment | 3.6 | (6) | 4.4 |
Net increase in cash and cash equivalents | 539.7 | 96 | 303.7 |
Cash and cash equivalents at beginning of year | 530.7 | 434.7 | 131 |
Cash and cash equivalents at end of year | 1070.4 | 530.7 | 434.7 |
Cash paid during the year for: | |||
Income tax payments, net of refunds | 478.3 | 342.4 | 279.2 |
Interest | 185.8 | 72.9 | 112.2 |
Summary of significant accounti
Summary of significant accounting policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of significant accounting policies [Abstract] | |
Summary of significant accounting policies | 1. Summary of significant accounting policies Organization and operations. We are one of the largest full-service pharmacy benefit management (PBM) companies in North America, providing health care management and administration services on behalf of clients that include health maintenance organizations, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers compensation plans and government health programs. During the first quarter of 2009, we changed our reportable segments to PBM and Emerging Markets (EM). Segment disclosures for 2008 and 2007 have been reclassified to reflect the new structure where appropriate. Under the new structure, our integrated PBM services include network claims processing, home delivery services, patient care and direct specialty home delivery to patients, benefit design consultation, drug utilization review, formulary management, drug data analysis services, distribution of injectable drugs to patient homes and physicians offices, bio-pharma services, and fulfillment of prescriptions to low-income patients through manufacturer-sponsored patient assistance programs and company-sponsored generic patient assistance programs. Through our EM segment, we provide services including distribution of pharmaceuticals and medical supplies to providers and clinics, distribution of sample units to physicians and verification of practitioner licensure; fertility services to providers and patients; and healthcare administration and implementation of consumer-directed healthcare solutions. As noted above, we report segments on the basis of services offered and have determined we have two reportable segments: PBM and EM. Our domestic and Canadian PBM operating segments have similar characteristics and as such have been aggregated into a single PBM reporting segment. Basis of presentation. The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Investments in affiliated companies, 20% to 50% owned, are accounted for under the equity method. Certain amounts in prior years have been reclassified to conform to the current year presentation. The preparation of the consolidated financial statements conforms to generally accepted accounting principles in the United States, and requires us to make estimates and assumptions which affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates and assumptions. Discontinued operations. On June30, 2008, we completed the sale of CuraScript Infusion Pharmacy, Inc. (IP), our infusion pharmacy line of business, for $27.5million and recorded a pre-tax gain of approximately $7.4million. The gain is included in net loss from discontinued operations, net of tax in the consolidated statement of operations for the year ended December31, 2008. Rights to certain working capital balances related to IP were not sold and are retained on the consolidated balance sheet as of De |
Fair value measurements
Fair value measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair value measurements [Abstract] | |
Fair value measurements | 2. Fair value measurements In September2006, the FASB issued authoritative guidance which defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements. This guidance applies whenever another standard requires (or permits) assets or liabilities to be measured at fair value. This guidance does not expand the use of fair value to any new circumstances. Our adoption of the guidance did not have a material impact on our consolidated financial position, results of operations or cash flows. The guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets and liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. Financial assets accounted for at fair value on a recurring basis at December31, 2009 and 2008 include cash equivalents of $909.8million and $471.2million, restricted cash and investments of $9.1million and $4.8million, and trading securities of $11.4million and $12.8million (included in other assets), respectively. These assets are carried at fair value based on quoted market prices for identical securities (Level 1 inputs). Cash equivalents include investments in AAA-rated money market mutual funds with weighted average maturities of less than 90days. As of December31, 2009 and 2008, short-term investments, included in prepaid expenses and other current assets in the consolidated balance sheet, consisted of our investment in the Reserve Primary Fund (the Primary Fund), which is a money market fund. The estimated fair value of our investment in the Primary Fund was $1.9million and $8.4million as of December31, 2009 and 2008, respectively. We recognized an unrealized loss of $2.0million in the third quarter of 2008, when the net asset value of the Primary Fund decreased below $1 per share. We received cash distributions from the Primary Fund of $6.5million during 2009 and $38.9million during 2008. We assessed the fair value of the underlying collateral for the Primary Fund through evaluation of the liquidation value of assets held by the Primary Fund, which is classified within Level 3 of the fair value hierarchy. There were no assets or liabilities classified as Level 3 prior to the third quarter of 2008. In February2007, the FASB issued authoritative guidance under which a company may elect to measure eligible financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings at each subsequent reporting date. Eligible items include, but are not limited to, accounts and loans receivable, equity method investments, accounts payable, guarantees, issued debt and firm commitments. If elected, this guidance is effective for fisc |
Changes in business
Changes in business | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Changes in business [Abstract] | |
Changes in business | 3. Changes in business Acquisitions. On December1, 2009, we completed the purchase of the shares and equity interests of certain subsidiaries of WellPoint that provide pharmacy benefit management services (NextRx or the PBM Business), in exchange for total consideration of $4.675billion paid in cash, which is subject to a purchase price adjustment for working capital. The NextRx PBM Business is a national provider of PBM services, and we believe the acquisition will enhance our ability to achieve cost savings, innovations, and operational efficiencies which will benefit our customers and stockholders. The purchase price was primarily funded through a $2.5billion underwritten public offering of senior notes completed on June9, 2009 resulting in net proceeds of $2,478.3 million, and a public offering of 26.45million shares of common stock completed June10, 2009 resulting in net proceeds of $1,569.1million. For the year ended December31, 2009, we incurred transaction costs of $61.1million related to the acquisition which are included in selling, general and administrative expense. In accordance with the accounting guidance for business combinations which became effective in 2009, the transaction costs were expensed as incurred. Our PBM operating results include those of the NextRx PBM Business beginning on December1, 2009, the date of acquisition. Revenues included in our consolidated statement of operations for the year ended December31, 2009 attributable to NextRx were $1,358.2million. Due to the integration of operations and other factors, it is not practicable to determine the earnings included in our consolidated statement of operations for the year ended December31, 2009 attributable to NextRx. The parties have agreed to make an election under Section338(h)(10) of the Internal Revenue Code with respect to the transaction which results in the goodwill and other intangibles generated being tax deductible over 15years. We estimate the value of such election to us to be between $800 million and $1.2billion dependent upon the discount factor and tax rate assumed. Additionally, at the closing of the acquisition, we entered into a 10-year contract with WellPoint under which we will provide pharmacy benefits management services to WellPoint and its designated affiliates. The following unaudited pro forma information presents a summary of our combined results of operations and those of the PBM Business as if the acquisition and financing transactions had occurred at the beginning of the periods presented, along with certain pro forma adjustments to give effect to amortization of other intangible assets, interest expense on acquisition debt and other adjustments. The following pro forma financial information is not necessarily indicative of the results of operations as they would have been had the transactions been effected on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, differences resulting from the 10-year contract with Wel |
Discontinued operations
Discontinued operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Discontinued operations [Abstract] | |
Discontinued operations | 4. Discontinued operations On June30, 2008, we completed the sale of IP, our infusion pharmacy line of business, for $27.5million and recorded a pre-tax gain of approximately $7.4million. The gain is included in net loss from discontinued operations, net of tax in the consolidated statement of operations for the year ended December31, 2008. Rights to certain working capital balances related to IP were not sold and are retained on the balance sheet as of December31, 2009. For a period of time, we will continue to generate cash flows and income statement activity on assets and liabilities of discontinued operations as these working capital balances wind down, which are not expected to be material. IP was identified as available for sale during the fourth quarter of 2007 as we considered it non-core to our future operations. In connection with the classification of IP as a discontinued operation, we recorded a charge of $34.0million in the fourth quarter of 2007 related to impairment losses. IP was headquartered in Louisville, Kentucky and operated twelve infusion pharmacies in six states. IP offered a broad range of infused therapies in the home to patients with acute or chronic conditions. Prior to being classified as a discontinued operation, IP was included in our former SAAS segment. The results of operations for IP are reported as discontinued operations for all periods presented in the accompanying consolidated statements of operations. Additionally, for all periods presented, assets and liabilities of the discontinued operations are segregated in the accompanying consolidated balance sheets, and cash flows of our discontinued operations are segregated in our accompanying consolidated statement of cash flows. On April4, 2008, we completed the sale of CMP and recorded a pre-tax loss of approximately $1.3million which is included in net loss from discontinued operations, net of tax in the consolidated statement of operations for the year ended December31, 2008. CMP, which assembles customer medical kits containing various types of medical supplies, was included in our former SAAS segment prior to being classified as a discontinued operation. Certain information with respect to the discontinued operations for the year ended December 31, 2009, 2008, and 2007 is summarized as follows: (in millions) 2009 2008 2007 Revenues $ $ 44.7 $ 108.3 Net income (loss)from discontinued operations, net of tax 1.1 (3.5 ) (32.7 ) Income tax (expense)benefit from discontinued operations (0.8 ) (0.3 ) 14.0 |
Non-operating charges, net
Non-operating charges, net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Non-operating charges, net [Abstract] | |
Non-operating charges, net | 5. Non-operating charges, net The non-operating charge of $2.0million during the year ended December31, 2008 represents an unrealized loss on shares held in the Reserve Primary Fund (See Note 2). On December18, 2006, we announced a proposal to acquire all of the outstanding shares of Caremark Rx, Inc. (Caremark) common stock. On March16, 2007, Caremark shareholders approved a merger agreement with CVS Corporation (CVS) and we subsequently withdrew our proposal to acquire Caremark. We incurred legal and other professional fees (which do not include internal costs) of $27.2million as a result of the proposed acquisition. These expenses were partially offset by a $4.4million special dividend paid by CVS Caremark Corporation (CVS Caremark) on Caremark stock we owned prior to the CVS Caremark merger and by a non-operating gain of $4.2million resulting from the sale of our shares of CVS Caremark stock in the second quarter of 2007. |
Joint venture
Joint venture | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Joint venture [Abstract] | |
Joint venture | 6. Joint venture On July1, 2008, the merger of RxHub and SureScripts was announced. We are one of the founders of RxHub, an electronic exchange enabling physicians who use electronic prescribing technology to link to pharmacies, PBM companies and health plans. The new organization enables physicians to securely access health information through a fast and efficient health exchange when caring for their patients. We retain one-sixth ownership in the merged company. Due to the decreased ownership percentage, the investment is recorded under the cost method, under which dividends are the basis of recognition of earnings from an investment. RxHub has not paid any dividends to date. Prior to the merger, the investment in RxHub was recorded using the equity method of accounting, which required our percentage interest in RxHubs results to be recorded in our consolidated statement of operations. Our percentage of RxHubs loss for 2008 and 2007 was $0.3million and $1.3million, respectively, and has been recorded in other (expense)income, net, in the consolidated statement of operations. Our investment in RxHub (approximately $0.8million at both December31, 2009 and 2008) is recorded in other assets in our consolidated balance sheet. |
Property and equipment
Property and equipment | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Property and equipment [Abstract] | |
Property and equipment | 7. Property and equipment Property and equipment of our continuing operations, at cost, consists of the following: December 31, (in millions) 2009 2008 Land and buildings $ 11.2 $ 6.3 Furniture 41.3 37.9 Equipment 305.1 198.8 Computer software 305.2 249.8 Leasehold improvements 65.2 51.9 Total Property and equipment 728.0 544.7 Less accumulated depreciation 373.9 322.5 Property and equipment, net $ 354.1 $ 222.2 Depreciation expense for our continuing operations in 2009, 2008 and 2007 was $65.1million, $64.0million and $63.8million, respectively. Internally developed software, net of accumulated depreciation, for our continuing operations was $62.9million and $55.5million at December31, 2009 and 2008, respectively. We capitalized $24.0million of internally developed software during 2009. In July2004, we entered into a capital lease with the Camden County Joint Development Authority in association with the development of our Patient Care Contact Center in St. Marys, Georgia (see Note 13). Under certain of our operating leases for facilities in which we operate home delivery and specialty pharmacies, we are required to remove improvements and equipment upon surrender of the property to the landlord and convert the facilities back to office space. Our asset retirement obligation for our continuing operations was $5.5million and $6.3million at December31, 2009 and 2008, respectively. |
Goodwill and Other intangibles
Goodwill and Other intangibles | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Other intangibles [Abstract] | |
Goodwill and Other intangibles | 8. Goodwill and Other Intangibles The following is a summary of our goodwill and other intangible assets (amounts in millions): December 31, 2009 December 31, 2008 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Goodwill PBM (1) $ 5,472.1 $ 107.3 $ 5,364.8 $ 2,833.7 $ 107.0 $ 2,726.7 EM 154.4 154.4 154.4 154.4 $ 5,626.5 $ 107.3 $ 5,519.2 $ 2,988.1 $ 107.0 $ 2,881.1 Other intangible assets PBM Customer contracts(1) $ 2,018.3 $ 197.8 $ 1,820.5 $ 432.2 $ 159.5 $ 272.7 Other (2) 27.9 10.9 17.0 21.1 13.0 8.1 2,046.2 208.7 1,837.5 453.3 172.5 280.8 EM Customer relationships 72.4 29.7 42.7 72.4 23.0 49.4 Other 2.4 2.4 2.4 2.4 74.8 29.7 45.1 74.8 23.0 51.8 Total other intangible assets $ 2,121.0 $ 238.4 $ 1,882.6 $ 528.1 $ 195.5 $ 332.6 (1) Changes in goodwill and customer contracts are the result of the acquisition of the NextRx PBM Business. See Note 3. (2) Changes in other intangible assets are a result of long-term financing costs recorded related to the Senior Notes partially offset by the write-off of fully amortized contractual assets. The change in the net carrying value of goodwill by business segment is shown in the following table: (in millions) PBM EM Total Balance at December31, 2007 $ 2,540.9 $ 154.4 $ 2,695.3 Acquisitions1 208.2 208.2 Foreign currency translation and other (22.4 ) (22.4 ) Balance at December31, 2008 2,726.7 154.4 2,881.1 Acquisitions2 2,686.7 2,686.7 Foreign currency translation and other (48.6 ) (48.6 ) Balance at December31, 2009 $ 5,364.8 $ 154.4 $ 5,519.2 (1) Represents the acquisition of MSC in July2008. (2) Represents the acquisition of NextRx in December2009. The aggregate amount of amortization expense of other intangible assets for our continuing operations was $115.1million, $36.1million and $38.8million for the year ended December31, 2009, 2008 and 2007, respectively. Amortization expense for the year ended December 31, 2009 includes $66.3million of fees incurred, recorded in interest expense in the consolidated statement of operations, related to the termination of the bridge loan for the financing of the NextRx acquisition. Additionally |
Financing
Financing | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Financing [Abstract] | |
Financing | 9. Financing Long-term debt consists of: December 31, (in millions) 2009 2008 Term A loans due October14, 2010 with an average interest rate of 0.9% at December31, 2009 $ 540.0 $ 960.0 Term-1 loans due October14, 2010 with an average interest rate of 1.1% at December31, 2009 800.0 800.0 5.25% senior notes due 2012, net of unamortized discount 999.4 6.25% senior notes due 2014, net of unamortized discount 996.1 7.25% senior notes due 2019, net of unamortized discount 496.8 Revolving credit facility due October14, 2010 Other 0.3 0.3 Total debt 3,832.6 1,760.3 Less current maturities 1,340.1 420.0 Long-term debt $ 2,492.5 $ 1,340.3 At December31, 2009, our credit facility includes $540.0million of Term A loans, $800.0 million of Term-1 loans and a $600.0million revolving credit facility. The revolving credit facility (none of which was outstanding as of December31, 2009) is available for general corporate purposes. During 2009, we made scheduled payments of $420.0million on the Term A loan. The maturity date of the credit facility is October14, 2010. While we cannot provide any assurances that free cash flow from operations will be sufficient to make our scheduled payments, we anticipate that we will continue making scheduled payments under the terms of the credit agreement until the loan is repaid in full on or before the maturity date of October14, 2010. We do not believe we will need to secure external sources of capital in order to meet these obligations; however, we may decide to secure external capital for operating activities or for other business needs. In the event future cash flows are insufficient to meet our scheduled payments, we believe it will be possible to amend, extend, and/or refinance the Term loans prior to their maturity. The credit facility requires us to pay interest periodically on the London Interbank Offered Rates (LIBOR) or base rate options, plus a margin. The margin over LIBOR will range from 0.50% to 1.125%, depending on our consolidated leverage ratio or our credit rating. Under the credit facility we are required to pay commitment fees on the unused portion of the $600.0million revolving credit facility. The commitment fee will range from 0.10% to 0.25% depending on our consolidated leverage ratio or our credit rating. At December31, 2009, the weighted average interest rate on the facility was 1.0%. The credit facility contains covenants which limit the indebtedness we may incur, the common shares we may repurchase, and dividends we may pay. The repurchase and dividend covenant applies if certain leverage thresholds are exceeded. The covenants also include a minimum interest coverage ratio and a maximum leverage ratio. At December31, 2009, we believe we are in compliance with all covenants associated with our credit facility. On June9, 2009, we issued $2.5billion of Senior Notes, including $1.0billion aggregate principal amount of 5.250% Senior Notes due 2012; $1.0billion aggregate principal amoun |
Income taxes
Income taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income taxes [Abstract] | |
Income taxes | 10. Income taxes Income from continuing operations before income taxes of $1,309.3million resulted in net tax expense of $482.8million for 2009. We consider our Canadian earnings to be indefinitely reinvested and accordingly, have not recorded a provision for United States federal and state income taxes thereon. Cumulative undistributed Canadian earnings for which United States taxes have not been provided are included in consolidated retained earnings in the amount of $40.6 million, $31.5million and $34.3million as of December31, 2009, 2008, and 2007, respectively. Upon distribution of such earnings, we would be subject to United States income taxes of approximately $14.6million. The provision (benefit)for income taxes for continuing operations consists of the following: Year Ended December 31, (in millions) 2009 2008 2007 Income from continuing operations before income taxes: United States $ 1,313.3 $ 1,221.9 $ 937.1 Foreign (4.0 ) (8.3 ) 7.6 Total $ 1,309.3 $ 1,213.6 $ 944.7 Current provision: Federal $ 407.6 $ 381.1 $ 320.9 State 25.5 18.2 15.8 Foreign (1.8 ) 0.9 3.4 Total current provision 431.3 400.2 340.1 Deferred provision: Federal 43.5 38.8 7.4 State 4.7 (2.1 ) (2.4 ) Foreign 3.3 (2.9 ) (0.9 ) Total deferred provision 51.5 33.8 4.1 Total current and deferred provision $ 482.8 $ 434.0 $ 344.2 A reconciliation of the statutory federal income tax rate and the effective tax rate follows (the effect of foreign taxes on the effective tax rate for 2009, 2008, and 2007 is immaterial): Year Ended December 31, 2009 2008 2007 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.7 0.8 0.9 Non-deductible penalty 0.4 Other, net 0.2 0.1 Effective tax rate 36.9 % 35.8 % 36.4 % Our effective tax rate increased to 36.9% for the year ended December31, 2009, as compared to 35.8% for the year ended December31, 2008. Our 2009 effective tax rate reflects an increase in certain state income tax rates due to enacted law changes as well as the impact of our recent acquisition of NextRx. Our 2008 effective rate includes discrete tax adjustments resulting in a net tax benefit of $7.7million attributable to lapses in the applicable statutes of limitations, favorable audit resolutions, and changes in our unrecognized tax benefits. Our 2007 effective rate reflects a nondeductible penalty of $10.5million relating to the settlement of a legal matter. The effective tax rate recognized in discontinued operations was 42.5%, (9.3%), and 29.7% as of December31, 2009, 2008, and 2007, respectively. The corresponding net tax provision was $0.7 million and $0.3million in 2009 and 2008, respective |
Common stock
Common stock | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Common stock [Abstract] | |
Common stock (reflecting the two-for-one stock split effective June 22, 2007) | 11. Common stock (reflecting the two-for-one stock split effective June22, 2007) On June10, 2009, we completed a public offering of 26.45million shares of common stock, which includes 3.45million shares sold as a result of the underwriters exercise of their overallotment option in full at closing, at a price of $61.00 per share. The sale resulted in net proceeds of $1,569.1million after giving effect to the underwriting discount and issuance costs of $44.4million. We used the net proceeds for the acquisition of WellPoints NextRx PBM Business (see Note 3). On May23, 2007, we announced a two-for-one stock split for stockholders of record on June8, 2007, effective June22, 2007. The split was effected in the form of a dividend by issuance of one additional share of common stock for each share of common stock outstanding. The earnings per share and the weighted average number of shares outstanding for basic and diluted earnings per share for each period have been adjusted for the stock split. We have a stock repurchase program, originally announced on October25, 1996. In 2008, our Board of Directors authorized total increases in the program of 15million shares. Treasury shares are carried at first in, first out cost. There is no limit on the duration of the program. During 2009, we did not repurchase any treasury shares. There are 21.0million shares remaining under this program. Additional share repurchases, if any, will be made in such amounts and at such times as we deem appropriate based upon prevailing market and business conditions and other factors. Through December31, 2009, approximately 18.2million shares of treasury stock have been reissued in connection with employee compensation plans. As of December31, 2009, approximately 12.4million shares of our common stock have been reserved for employee benefit plans (see Note 12). Preferred Share Purchase Rights. In July2001 our Board of Directors adopted a stockholder rights plan which declared a dividend of one right for each outstanding share of our common stock. The rights plan will expire on July25, 2011. The rights are currently represented by our common stock certificates. When the rights become exercisable, they will entitle each holder to purchase 1/1,000th of a share of our SeriesA Junior Participating Preferred Stock for an exercise price of $300 (subject to adjustment). The rights will become exercisable and will trade separately from the common stock only upon the tenth day after a public announcement that a person, entity or group (Person) has acquired 15% or more of our outstanding common stock (Acquiring Person) or ten days after the commencement or public announcement of a tender or exchange offer which would result in any Person becoming an Acquiring Person; provided that any Person who beneficially owned 15% or more of our common stock as of the date of the rights plan will not become an Acquiring Person so long as such Person does not become the beneficial owner of additional shares representing 2% or more of our outstanding shares of common stock. In the event that any Person becomes an Acquiring Person, the rights will be exercisable for our common stock |
Employee benefit plans and stoc
Employee benefit plans and stock-based compensation plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee benefit plans and stock-based compensation plans [Abstract] | |
Employee benefit plans and stock-based compensation plans | 12. Employee benefit plans and stock-based compensation plans Retirement savings plan. We sponsor retirement savings plans under Section 401(k) of the Internal Revenue Code for all of our full-time employees. Employees may elect to enter into a written salary deferral agreement under which a maximum of 15% to 25% of their salary, subject to aggregate limits required under the Internal Revenue Code, may be contributed to the plan. We match 200% of the first 1% and 100% of the next 3% of the employees compensation contributed to the Plan for substantially all employees. For the years ended December31, 2009, 2008, and 2007, we had contribution expense of approximately $22.0million, $19.7million and $17.9million, respectively. Employee stock purchase plan. We offer an employee stock purchase plan that qualifies under Section423 of the Internal Revenue Code and permits all employees, excluding certain management level employees, to purchase shares of our common stock. Participating employees may contribute up to 10% of their salary to purchase common stock at the end of each monthly participation period at a purchase price equal to 95% of the fair market value of our common stock on the last business day of the participation period. During 2009, 2008 and 2007, approximately 130,000, 118,000 and 131,000 shares of our common stock were issued under the plan, respectively. Our common stock reserved for future employee purchases under the plan is approximately 1.4million shares at December31, 2009. Deferred compensation plan. We maintain a non-qualified deferred compensation plan (the Executive Deferred Compensation Plan) that provides benefits payable to eligible key employees at retirement, termination or death. Benefit payments are funded by a combination of contributions from participants and us. Participants may elect to defer up to 50% of their base earnings and 100% of specific bonus awards. Participants become fully vested in our contributions on the third anniversary of the end of the plan year for which the contribution is credited to their account. For 2009, our contribution was equal to 6% of each qualified participants total annual compensation, with 25% being allocated as a hypothetical investment in our common stock and the remaining being allocated to a variety of investment options. We have chosen to fund our liability for this plan through investments in trading securities, which primarily consists of mutual funds (see Note 1). We incurred net compensation expense of approximately $(0.6) million, $1.8million and $1.1million in 2009, 2008, and 2007, respectively. At December31, 2009, approximately 3.0million shares of our Common Stock have been reserved for future issuance under the plan. Stock-based compensation plans. In August2000, the Board of Directors adopted the Express Scripts, Inc. 2000 Long-Term Incentive Plan which was subsequently amended in February2001 and again in December2001 (as amended, the 2000 LTIP), which provides for the grant of various equity awards with various terms to our officers, Board of Directors and key employees selected by the Compensation Committee of the Board of Directors. The 2000 |
Commitments and contingencies
Commitments and contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and contingencies [Abstract] | |
Commitments and contingencies | 13. Commitments and contingencies We have entered into noncancellable agreements to lease certain office and distribution facilities with remaining terms from one to ten years. The majority of our lease agreements include renewal options which would extend the agreements from one to five years. Rental expense under the office and distribution facilities leases, excluding the discontinued operations of IP (see Note 4), in 2009, 2008 and 2007, was $29.6million, $31.0million and $31.6million, respectively. The future minimum lease payments due under noncancellable operating leases, excluding the facilities of the discontinued operations of IP (in millions): Minimum Lease Year Ended December 31, Payments 2010 $ 31.2 2011 26.4 2012 23.4 2013 22.1 2014 16.5 Thereafter 46.4 $ 166.0 We signed a lease agreement during 2009 for a new state of the art pharmacy fulfillment facility. We expect to take possession of this new facility during the second quarter of 2010. The annual lease commitments for this facility are approximately $1.5million and the term of the lease is ten years. Additionally, we signed a lease agreement in 2007 for an expansion of our corporate facilities. We took possession of the facility during the first quarter of 2009. The annual lease commitment for the new building is approximately $2.7million in 2010 and increases to $3.2million by 2018. The term of the lease is ten and a half years. In July2004, we entered into a capital lease with the Camden County Joint Development Authority in association with the development of our Patient Care Contact Center in St. Marys, Georgia. At December31, 2009, our lease obligation was $7.5million. Our lease obligation has been offset against $7.5million of industrial bonds issued by the Camden County Joint Development Authority. For the year ended December31, 2009, approximately 68.6% of our pharmaceutical purchases were through one wholesaler. We believe other alternative sources are readily available. Our top five clients collectively represented 23.7%, 18.2%, and 18.1% of revenues during 2009, 2008, and 2007 respectively. None of our clients accounted for 10% or more of our consolidated revenues in fiscal years 2009, 2008 or 2007. We believe no other concentration risks exist at December31, 2009. Due to the new long-term contracts we have entered into with WellPoint and the DoD, we expect to have a higher concentration of revenues among these clients in the future. In the ordinary course of business there have arisen various legal proceedings, investigations or claims now pending against us or our subsidiaries. The effect of these actions on future financial results is not subject to reasonable estimation because considerable uncertainty exists about the outcomes. We accrue self-insurance reserves based upon estimates of the aggregate liability of claim costs in excess of our insurance coverage which are probable and estimable. Reserves are estimated using certain actuarial assumptions followed in the insurance industry and our historical experience (see Note 1, Self-insurance re |
Segment information
Segment information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Segment information [Abstract] | |
Segment information | 14. Segment information During the first quarter of 2009, we changed our organizational structure resulting in two business segments: PBM and EM. Previously, we had reported segments of PBM and SAAS. Our chief operating decision maker assessed performance under this new structure beginning in the first quarter of 2009. The specialty pharmacy operations, which were previously in our SAAS segment, have been operationally integrated with our PBM operations in order to maximize its growth and improve efficiency. Additionally, the following services which were previously in SAAS were operationally integrated into the PBM: bio-pharma services including reimbursement and customized logistics solutions and fulfillment of prescriptions to low-income patients through pharmaceutical manufacturer-sponsored and company-sponsored generic patient assistance programs. The EM segment primarily consists of the following services: distribution of pharmaceuticals and medical supplies to providers and clinics, distribution of fertility pharmaceuticals requiring special handling or packaging, distribution of sample units to physicians and verification of practitioner licensure and healthcare account administration and implementation of consumer-directed healthcare solutions. During the first quarter 2010, we received notification of a client contract loss in one of our smaller EM lines of business. The client contract will remain in effect through December 31, 2010. We believe this will require a re-evaluation of the fair value of the business assets as compared to the carrying values and there could be an impairment charge in 2010. As of December 31, 2009, the total assets for this business were $39.8 million which includes goodwill and intangible assets of $23.9 million. As noted above, we report segments on the basis of services offered and have determined we have two reportable segments: PBM and EM. Our domestic and Canadian PBM operating segments have similar characteristics and as such have been aggregated into a single PBM reporting segment. Operating income is the measure used by our chief operating decision maker to assess the performance of each of our operating segments. The following table presents information about our reportable segments, including a reconciliation of operating income from continuing operations to income before income taxes from continuing operations for the respective years ended December31. All related segment disclosures have been reclassified in the table below and throughout the financial statements, where appropriate, to reflect the new segment structure. (in millions) PBM EM Total 2009 Product revenue: Network revenues $ 15,019.3 $ $ 15,019.3 Home delivery and specialty revenues 8,099.0 8,099.0 Other revenues 83.9 1,244.1 1,328.0 Service revenues 264.7 37.9 302.6 Total revenues 23,466.9 1,282.0 24,748.9 Depreciation and amortization expense 98.1 11.8 |
Quarterly financial data
Quarterly financial data (unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Quarterly financial data (unaudited) [Abstract] | |
Quarterly financial data (unaudited) | 15. Quarterly financial data (unaudited) The following is a presentation of our unaudited quarterly financial data: Quarters (in millions, except per share data) First Second Third Fourth Fiscal 2009(1) Total revenues (3) $ 5,422.8 $ 5,503.3 $ 5,619.4 $ 8,203.4 Cost of revenues (3) 4,888.7 4,909.3 5,006.8 7,513.7 Gross profit 534.1 594.0 612.6 689.7 Selling, general and administrative 178.6 214.0 254.1 285.3 Operating income 355.5 380.0 358.5 404.4 Net income from continuing operations 214.7 192.0 196.9 222.9 Net (loss)income from discontinued operations, net of tax (0.3 ) 0.3 0.7 0.4 Net income $ 214.4 $ 192.3 $ 197.6 $ 223.3 Basic earnings per share: Continuing operations $ 0.87 $ 0.75 $ 0.72 $ 0.81 Discontinued operations Net earnings 0.87 0.75 0.72 0.81 Diluted earnings per share: Continuing operations $ 0.86 $ 0.74 $ 0.71 $ 0.80 Discontinued operations Net earnings 0.86 0.74 0.71 0.80 Fiscal 2008(2) Total revenues (3) $ 5,490.8 $ 5,530.8 $ 5,450.5 $ 5,505.9 Cost of revenues (3) 5,024.7 5,028.2 4,930.1 4,954.1 Gross profit 466.1 502.6 520.4 551.8 Selling, general and administrative 171.5 185.9 189.7 213.3 Operating income 294.6 316.7 330.7 338.5 Net income from continuing operations 178.3 191.9 203.0 206.4 Net (loss)income from discontinued operations, net of tax (1.1 ) (1.7 ) (1.1 ) 0.4 Net income $ 177.2 $ 190.2 $ 201.9 $ 206.8 Basic earnings (loss)per share: Continuing operations $ 0.71 $ 0.77 $ 0.82 $ 0.83 Discontinued operations (0.01 ) Net earnings 0.70 0.76 0.82 0.84 Diluted earnings (loss)per share: Continuing operations $ 0.70 $ 0.76 $ 0.81 $ 0.83 Discontinued operations (0.01 ) Net earnings 0.69 0.75 0.81 0.83 (1) Includes the December1, 2009 acquisition of NextRx. (2) Includes the July22, 2008 acquisition of MSC. (3) Includes retail pharmacy co-payments of $822.7 and $887.7 for the three months ended March31, 2009 and 2008, respectively, $721.1 and $824.1 for the three months ended June 30, 2009 and 2008, respectively, $708.4 and $733.7 for the three months ended September30, 2009 and 2008, respectively, and $879.9 and $7 |
Condensed consolidating financi
Condensed consolidating financial information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Condensed consolidating financial information [Abstract] | |
Condensed consolidating financial information | 16. Condensed consolidating financial information Our senior notes are fully and unconditionally guaranteed by our 100% owned domestic subsidiaries, other than certain regulated subsidiaries including Express Scripts Insurance Company. The following condensed consolidating financial information has been prepared in accordance with the requirements for presentation of such information. Effective June30, 2008, CuraScript Infusion Pharmacy, Inc. was sold and effective April4, 2008, Custom Medical Products, Inc. (CMP) was sold. The assets, liabilities, and operations from these former subsidiaries are included as discontinued operations in those of the non-guarantors. Subsequent to the acquisition of NextRx on December1, 2009, Pharmacy Services Division of MSC Medical Services Company (MSC) on July22, 2008 and Connect Your Care, LLC (CYC) on October10, 2007, certain of the assets, liabilities and operations of the 100% owned domestic subsidiaries have been included in those of the guarantors. The following presents the condensed consolidating financial information separately for: (i) Express Scripts, Inc. (the Parent Company), the issuer of the guaranteed obligations; (ii) Guarantor subsidiaries, on a combined basis, as specified in the indentures related to Express Scripts obligations under the notes; (iii) Non-guarantor subsidiaries, on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a)eliminate intercompany transactions between or among the Parent Company, the guarantor subsidiaries and the non-guarantor subsidiaries, (b)eliminate the investments in our subsidiaries and (c)record consolidating entries; and (v) Express Scripts, Inc and subsidiaries on a consolidated basis. Condensed Consolidating Balance Sheet Express Non- (in millions) Scripts, Inc. Guarantors Guarantors Eliminations Consolidated As of December31, 2009 Cash and cash equivalents $ 1,005.0 $ 10.0 $ 55.4 $ $ 1,070.4 Restricted cash and investments 7.5 1.6 9.1 Receivables, net 1,179.8 1,331.5 9.9 2,521.2 Other current assets 196.0 341.2 5.6 542.8 Current assets $ 2,380.8 $ 1,690.2 $ 72.5 $ $ 4,143.5 Property and equipment, net 239.6 103.5 11.0 354.1 Investments in subsidiaries 5,970.2 (5,970.2 ) Intercompany (2,387.2 ) 2,467.5 (80.3 ) Goodwill 2,939.2 2,555.2 24.8 5,519.2 Other intangible assets, net 1,543.9 334.4 4.3 1,882.6 Other assets 21.3 8.6 1.9 31.8 Total assets $ 10,707.8 $ 7,159.4 $ 34.2 $ (5,970.2 ) $ 11,931.2 Claims and rebates payable $ 2,264.3 $ 586.4 $ $ $ 2,850.7 Accounts payable 674.4 29.5 3.0 706.9 Accrued expens |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves of Continuing Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Valuation and Qualifying Accounts and Reserves of Continuing Operations [Abstract] | |
Valuation and Qualifying Accounts and Reserves of Continuing Operations | Schedule Of Valuation And Qualifying Accounts Disclosure EXPRESS SCRIPTS, INC. ScheduleII Valuation and Qualifying Accounts and Reserves of Continuing Operations Years Ended December31, 2009, 2008, and 2007 Col. A Col. B Col. C Col. D Col. E (in millions) Additions Balance at Charges Charges Beginning of to Costs and to Other Balance at End Description Period Expenses Accounts Deductions(1) of Period Allowance for Doubtful Accounts Receivable Year Ended 12/31/07 $ 61.4 $ 36.7 $ $ 22.7 $ 75.4 Year Ended 12/31/08 $ 75.4 $ 30.1 $ 7.4 $ 36.1 $ 76.8 Year Ended 12/31/09 $ 76.8 $ 24.1 $ 13.6 $ 21.0 $ 93.5 Valuation Allowance for Deferred Tax Assets Year Ended 12/31/07 $ 6.0 $ 2.3 $ $ $ 8.3 Year Ended 12/31/08 $ 8.3 $ 3.4 $ $ $ 11.7 Year Ended 12/31/09 $ 11.7 $ 4.4 $ $ $ 16.1 (1) Except as otherwise described, these deductions are primarily write-offs of receivable amounts, net of any recoveries. |