| Summary of condensed balance sheets |
CATAMARAN CORPORATION Condensed Consolidated Balance Sheets (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | As of March 31, 2014 | | | | | | | | | | ASSETS | | | | | | | | | | Current assets | |
| | | | | | | | |
| Cash and cash equivalents | $ | 201,288 |
| | $ | 446,612 |
| | $ | 36,815 |
| | $ | — |
| | $ | 684,715 |
| Restricted cash | — |
| | 27,386 |
| | 4,836 |
| | — |
| | 32,222 |
| Accounts receivable, net | — |
| | 907,326 |
| | 328,755 |
| | (104,656 | ) | | 1,131,425 |
| Rebates receivable | 45,264 |
| | 996,215 |
| | 110,220 |
| | (483,646 | ) | | 668,053 |
| Other current assets | 50 |
| | 112,608 |
| | 40,132 |
| | — |
| | 152,790 |
| Intercompany receivable | 126,874 |
| | 107,889 |
| | — |
| | (234,763 | ) | | — |
| Total current assets | 373,476 |
| | 2,598,036 |
| | 520,758 |
| | (823,065 | ) | | 2,669,205 |
| Property and equipment, net | 73 |
| | 159,088 |
| | 32,143 |
| | — |
| | 191,304 |
| Goodwill | — |
| | 4,639,090 |
| | 83,465 |
| | — |
| | 4,722,555 |
| Other intangible assets, net | — |
| | 1,106,867 |
| | 19,566 |
| | — |
| | 1,126,433 |
| Investment in subsidiaries | 6,053,157 |
| | 112,590 |
| | 37,071 |
| | (6,202,818 | ) | | — |
| Other long-term assets | 16,591 |
| | 47,786 |
| | 22,023 |
| | (1,424 | ) | | 84,976 |
| Total assets | $ | 6,443,297 |
| | $ | 8,663,457 |
| | $ | 715,026 |
| | $ | (7,027,307 | ) | | $ | 8,794,473 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities | |
| | | | | | | | |
| Accounts payable | $ | — |
| | $ | 1,016,210 |
| | $ | 72,835 |
| | $ | (127,006 | ) | | $ | 962,039 |
| Accrued expenses and other current liabilities | 3,649 |
| | 259,708 |
| | 32,188 |
| | — |
| | 295,545 |
| Rebates payable | — |
| | 1,158,134 |
| | 44,412 |
| | (483,646 | ) | | 718,900 |
| Current portion - long-term debt | 56,250 |
| | — |
| | — |
| | — |
| | 56,250 |
| Intercompany payable | — |
| | — |
| | 200,819 |
| | (200,819 | ) | | — |
| Total current liabilities | 59,899 |
| | 2,434,052 |
| | 350,254 |
| | (811,471 | ) | | 2,032,734 |
| Deferred income taxes | — |
| | 286,060 |
| | 5,301 |
| | — |
| | 291,361 |
| Long-term debt | 1,396,661 |
| | — |
| | — |
| | — |
| | 1,396,661 |
| Other long-term liabilities | 1,858 |
| | 61,625 |
| | 23,447 |
| | — |
| | 86,930 |
| Total liabilities | 1,458,418 |
| | 2,781,737 |
| | 379,002 |
| | (811,471 | ) | | 3,807,686 |
| Commitments and contingencies (Note 10) | | | | | | | | | | Shareholders’ equity | |
| | | | | | | | |
| Total shareholders' equity | 4,984,879 |
| | 5,881,720 |
| | 334,779 |
| | (6,216,499 | ) | | 4,984,879 |
| Non-controlling interest | — |
| | — |
| | 1,245 |
| | 663 |
| | 1,908 |
| Total equity | 4,984,879 |
| | 5,881,720 |
| | 336,024 |
| | (6,215,836 | ) | | 4,986,787 |
| Total liabilities and equity | $ | 6,443,297 |
| | $ | 8,663,457 |
| | $ | 715,026 |
| | $ | (7,027,307 | ) | | $ | 8,794,473 |
|
CATAMARAN CORPORATION Condensed Consolidated Balance Sheets (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | As of December 31, 2013 | | | | | | | | | | ASSETS | | | | | | | | | | Current assets | |
| | | | | | | | |
| Cash and cash equivalents | $ | 15,090 |
| | $ | 350,889 |
| | $ | 21,262 |
| | $ | — |
| | $ | 387,241 |
| Restricted cash | — |
| | 27,384 |
| | 4,836 |
| | — |
| | 32,220 |
| Accounts receivable, net | 194 |
| | 954,006 |
| | 61,319 |
| | (55,933 | ) | | 959,586 |
| Rebates receivable | 35,777 |
| | 473,924 |
| | 92,227 |
| | (295,973 | ) | | 305,955 |
| Other current assets | 107 |
| | 114,808 |
| | 16,785 |
| | 20,973 |
| | 152,673 |
| Intercompany receivable | 130,743 |
| | — |
| | 125,888 |
| | (256,631 | ) | | — |
| Total current assets | 181,911 |
| | 1,921,011 |
| | 322,317 |
| | (587,564 | ) | | 1,837,675 |
| Property and equipment, net | 69 |
| | 188,676 |
| | 8,262 |
| | — |
| | 197,007 |
| Goodwill | — |
| | 4,636,810 |
| | 83,465 |
| | — |
| | 4,720,275 |
| Other intangible assets, net | — |
| | 1,160,205 |
| | 21,214 |
| | — |
| | 1,181,419 |
| Investment in subsidiaries | 5,980,865 |
| | 105,947 |
| | — |
| | (6,086,812 | ) | | — |
| Other long-term assets | 15,674 |
| | 30,144 |
| | 59,932 |
| | (46,363 | ) | | 59,387 |
| Total assets | $ | 6,178,519 |
| | $ | 8,042,793 |
| | $ | 495,190 |
| | $ | (6,720,739 | ) | | $ | 7,995,763 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities | |
| | | | | | | | |
| Accounts payable | $ | — |
| | $ | 840,055 |
| | $ | 37,251 |
| | $ | (59,501 | ) | | $ | 817,805 |
| Accrued expenses and other current liabilities | 2,947 |
| | 200,071 |
| | 28,403 |
| | 22,679 |
| | 254,100 |
| Rebates payable | — |
| | 612,173 |
| | 40,065 |
| | (295,973 | ) | | 356,265 |
| Current portion - long-term debt | 50,000 |
| | — |
| | — |
| | — |
| | 50,000 |
| Intercompany payable | — |
| | 232,124 |
| | — |
| | (232,124 | ) | | — |
| Total current liabilities | 52,947 |
| | 1,884,423 |
| | 105,719 |
| | (564,919 | ) | | 1,478,170 |
| Deferred income taxes | — |
| | 296,040 |
| | 5,301 |
| | — |
| | 301,341 |
| Long-term debt | 1,215,363 |
| | — |
| | — |
| | — |
| | 1,215,363 |
| Other long-term liabilities | 1,719 |
| | 86,600 |
| | 23,651 |
| | (22,579 | ) | | 89,391 |
| Total liabilities | 1,270,029 |
| | 2,267,063 |
| | 134,671 |
| | (587,498 | ) | | 3,084,265 |
| Commitments and contingencies (Note 10) |
|
| |
|
| |
|
| |
|
| |
|
| Shareholders’ equity | |
| | | | | | | | |
| Total shareholders' equity | 4,908,490 |
| | 5,775,730 |
| | 359,274 |
| | (6,135,004 | ) | | 4,908,490 |
| Non-controlling interest | — |
| | — |
| | 1,245 |
| | 1,763 |
| | 3,008 |
| Total equity | 4,908,490 |
| | 5,775,730 |
| | 360,519 |
| | (6,133,241 | ) | | 4,911,498 |
| Total liabilities and equity | $ | 6,178,519 |
| | $ | 8,042,793 |
| | $ | 495,190 |
| | $ | (6,720,739 | ) | | $ | 7,995,763 |
|
|
| Summary of condensed income statements |
CATAMARAN CORPORATION Condensed Consolidated Statements of Operations (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | For the Three Months ended March 31, 2014 | | | | | | | | | | | | | | | | | | | | Revenue | $ | 11,041 |
| | $ | 4,577,654 |
| | $ | 697,416 |
| | $ | (371,632 | ) | | $ | 4,914,479 |
| Cost of revenue | 9,594 |
| | 4,339,549 |
| | 622,306 |
| | (371,632 | ) | | 4,599,817 |
| Gross profit | 1,447 |
| | 238,105 |
| | 75,110 |
| | — |
| | 314,662 |
| Expenses: | |
| | |
| | | | |
| | | Selling, general and administrative | 319 |
| | 101,330 |
| | 28,870 |
| | — |
| | 130,519 |
| Depreciation of property and equipment | 9 |
| | 11,238 |
| | 1,121 |
| | — |
| | 12,368 |
| Amortization of intangible assets | — |
| | 53,339 |
| | 1,647 |
| | — |
| | 54,986 |
| | 328 |
| | 165,907 |
| | 31,638 |
| | — |
| | 197,873 |
| Operating income | 1,119 |
| | 72,198 |
| | 43,472 |
| | — |
| | 116,789 |
| Interest and other expense, net | 9,966 |
| | 778 |
| | 592 |
| | — |
| | 11,336 |
| Equity in (income) in subsidiaries | (72,292 | ) | | (17,402 | ) | | — |
| | 89,694 |
| | — |
| Income before income taxes | 63,445 |
| | 88,822 |
| | 42,880 |
| | (89,694 | ) | | 105,453 |
| Income tax expense | — |
| | 16,530 |
| | 11,578 |
| | — |
| | 28,108 |
| Net income | 63,445 |
| | 72,292 |
| | 31,302 |
| | (89,694 | ) | | 77,345 |
| Less net income attributable to non-controlling interest | — |
| | — |
| | — |
| | 13,900 |
| | 13,900 |
| Net income attributable to the Company | $ | 63,445 |
| | $ | 72,292 |
| | $ | 31,302 |
| | $ | (103,594 | ) | | $ | 63,445 |
|
CATAMARAN CORPORATION Condensed Consolidated Statements of Operations (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | For the Three Months ended March 31, 2013 | | | | | | | | | | | | | | | | | | | | Revenue | $ | 7,913 |
| | $ | 2,865,980 |
| | $ | 466,834 |
| | $ | (121,011 | ) | | $ | 3,219,716 |
| Cost of revenue | 7,139 |
| | 2,668,224 |
| | 416,992 |
| | (121,011 | ) | | 2,971,344 |
| Gross profit | 774 |
| | 197,756 |
| | 49,842 |
| | — |
| | 248,372 |
| Expenses: | |
| | |
| | | | |
| | | Selling, general and administrative | 314 |
| | 81,962 |
| | 18,219 |
| | — |
| | 100,495 |
| Depreciation of property and equipment | 9 |
| | 6,269 |
| | 692 |
| | — |
| | 6,970 |
| Amortization of intangible assets | — |
| | 48,422 |
| | 1,634 |
| | — |
| | 50,056 |
| | 323 |
| | 136,653 |
| | 20,545 |
| | — |
| | 157,521 |
| Operating income | 451 |
| | 61,103 |
| | 29,297 |
| | — |
| | 90,851 |
| Interest and other (income) expense, net | (15,052 | ) | | 25,538 |
| | 553 |
| | — |
| | 11,039 |
| Equity in (income) in subsidiaries | (35,904 | ) | | (14,169 | ) | | — |
| | 50,073 |
| | — |
| Income before income taxes | 51,407 |
| | 49,734 |
| | 28,744 |
| | (50,073 | ) | | 79,812 |
| Income tax expense | — |
| | 13,830 |
| | 9,198 |
| | — |
| | 23,028 |
| Net income | 51,407 |
| | 35,904 |
| | 19,546 |
| | (50,073 | ) | | 56,784 |
| Less net income attributable to non-controlling interest | — |
| | — |
| | — |
| | 5,376 |
| | 5,376 |
| Net income attributable to the Company | $ | 51,407 |
| | $ | 35,904 |
| | $ | 19,546 |
| | $ | (55,449 | ) | | $ | 51,408 |
|
|
| Summary of condensed cash flow statements |
CATAMARAN CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | For the Three Months ended March 31, 2014 | | | | | | | | | | Cash flows from operating activities: | |
| | |
| | | | | | |
| Net cash provided (used) by operating activities | $ | 43,878 |
| | $ | 419,040 |
| | $ | (194,699 | ) | | $ | (132,543 | ) | | $ | 135,676 |
| Cash flows from investing activities: | |
| | |
| | | | | | |
| Acquisitions, net of cash acquired | — |
| | (2,026 | ) | | — |
| | — |
| | (2,026 | ) | Purchases of property and equipment | (13 | ) | | (4,833 | ) | | (7,936 | ) | | — |
| | (12,782 | ) | Net cash used in investing activities | (13 | ) | | (6,859 | ) | | (7,936 | ) | | — |
| | (14,808 | ) | Cash flows from financing activities: | |
| | |
| | | |
|
| | |
| Proceeds from issuance of debt | 492,500 |
| | — |
| | — |
| | — |
| | 492,500 |
| Repayment of long-term debt | (306,250 | ) | | — |
| | — |
| | — |
| | (306,250 | ) | Payment of financing costs | (955 | ) | | — |
| | — |
| | — |
| | (955 | ) | Proceeds from exercise of options | 5,070 |
| | (1,503 | ) | | — |
| | — |
| | 3,567 |
| Tax benefit on option exercises | — |
| | 2,692 |
| | — |
| | — |
| | 2,692 |
| Net transactions with parent and affiliates | (66,269 | ) | | (299,906 | ) | | 233,632 |
| | 132,543 |
| | — |
| Distributions to non-controlling interest | — |
| | — |
| | (15,000 | ) | | — |
| | (15,000 | ) | Proceeds from restricted stock
| 18,185 |
| | (17,741 | ) | | (444 | ) | | — |
| | — |
| Net cash provided (used) by financing activities | 142,281 |
| | (316,458 | ) | | 218,188 |
| | 132,543 |
| | 176,554 |
| Effect of foreign exchange on cash balances | 52 |
| | — |
| | — |
| | — |
| | 52 |
| Change in cash and cash equivalents | 186,198 |
| | 95,723 |
| | 15,553 |
| | — |
| | 297,474 |
| Cash and cash equivalents, beginning of period | 15,090 |
| | 350,889 |
| | 21,262 |
| | — |
| | 387,241 |
| Cash and cash equivalents, end of period | $ | 201,288 |
| | $ | 446,612 |
| | $ | 36,815 |
| | $ | — |
| | $ | 684,715 |
|
CATAMARAN CORPORATION Condensed Consolidated Statements of Cash Flows (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | For the Three Months ended March 31, 2013 | | | | | | | | | | Cash flows from operating activities: | |
| | |
| | | | | | |
| Net cash provided (used) by operating activities | $ | 37,310 |
| | $ | 82,038 |
| | $ | 606 |
| | $ | (56,649 | ) | | $ | 63,305 |
| Cash flows from investing activities: | |
| | |
| | | | | | |
| Purchases of property and equipment | — |
| | (25,243 | ) | | — |
| | — |
| | (25,243 | ) | Proceeds from restricted cash | — |
| | 20,004 |
| | — |
| | — |
| | 20,004 |
| Net cash used by investing activities | — |
| | (5,239 | ) | | — |
| | — |
| | (5,239 | ) | Cash flows from financing activities: | |
| | |
| | | | | | |
| Repayment of long-term debt | (100,000 | ) | | — |
| | — |
| | — |
| | (100,000 | ) | Proceeds from exercise of options | 1,117 |
| | (325 | ) | | (7 | ) | | — |
| | 785 |
| Tax benefit on option exercises | — |
| | 4,924 |
| | 4 |
| | — |
| | 4,928 |
| Payments of contingent consideration | — |
| | (18,338 | ) | | (4,865 | ) | | — |
| | (23,203 | ) | Net transactions with parent and affiliates | 12,779 |
| | (75,992 | ) | | 6,564 |
| | 56,649 |
| | — |
| Proceeds from restricted stock | 20,759 |
| | (20,475 | ) | | (284 | ) | | — |
| | — |
| Net cash (used) provided by financing activities | (65,345 | ) | | (110,206 | ) | | 1,412 |
| | 56,649 |
| | (117,490 | ) | Effect of foreign exchange on cash balances | 4 |
| | — |
| | — |
| | — |
| | 4 |
| Change in cash and cash equivalents | (28,031 | ) | | (33,407 | ) | | 2,018 |
| | — |
| | (59,420 | ) | Cash and cash equivalents, beginning of period | 33,603 |
| | 303,832 |
| | 33,341 |
| | — |
| | 370,776 |
| Cash and cash equivalents, end of period | $ | 5,572 |
| | $ | 270,425 |
| | $ | 35,359 |
| | $ | — |
| | $ | 311,356 |
|
|