Condensed Consolidating Financial Statements (Tables)
 9 Months Ended
Sep. 30, 2014
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Summary of condensed balance sheets
CATAMARAN CORPORATION
Condensed Consolidated Balance Sheets
September 30, 2014
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
 

 
 
 
 
 
 
 
 

Cash and cash equivalents
$
238,095

 
$
605,182

 
$
63,558

 
$
—

 
$
906,835

Restricted cash
—

 
27,388

 
4,836

 
—

 
32,224

Accounts receivable, net
275

 
1,288,324

 
94,432

 
(86,786
)
 
1,296,245

Rebates receivable
10,698

 
868,643

 
144,499

 
(143,723
)
 
880,117

Other current assets
134

 
129,285

 
47,568

 
—

 
176,987

Intercompany receivable
235,851

 
—

 
—

 
(235,851
)
 
—

Total current assets
485,053

 
2,918,822

 
354,893

 
(466,360
)
 
3,292,408

Property and equipment, net
95

 
147,633

 
41,000

 
—

 
188,728

Goodwill
—

 
4,641,174

 
83,465

 
—

 
4,724,639

Other intangible assets, net
—

 
1,002,933

 
16,307

 
—

 
1,019,240

Investment in subsidiaries
6,105,884

 
142,927

 
37,072

 
(6,285,883
)
 
—

Other long-term assets
14,858

 
44,400

 
21,884

 
(6,892
)
 
74,250

Total assets
$
6,605,890

 
$
8,897,889

 
$
554,621

 
$
(6,759,135
)
 
$
9,299,265

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
 

 
 
 
 
 
 
 
 

Accounts payable
$
—

 
$
1,134,918

 
$
97,220

 
$
(126,367
)
 
$
1,105,771

Accrued expenses and other current liabilities
4,336

 
284,510

 
31,097

 
(6,545
)
 
313,398

Rebates payable
—

 
1,005,692

 
53,066

 
(143,723
)
 
915,035

Current portion - long-term debt
75,000

 
—

 
—

 
—

 
75,000

Intercompany payable
—

 
146,870

 
12,350

 
(159,220
)
 
—

Total current liabilities
79,336

 
2,571,990

 
193,733

 
(435,855
)
 
2,409,204

Deferred income taxes
—

 
254,009

 
5,302

 
—

 
259,311

Long-term debt
1,362,202

 
—

 
—

 
—

 
1,362,202

Other long-term liabilities
1,401

 
70,611

 
25,324

 
—

 
97,336

Total liabilities
1,442,939

 
2,896,610

 
224,359

 
(435,855
)
 
4,128,053

Commitments and contingencies (Note 10)


 


 


 


 


Shareholders’ equity
 

 
 
 
 
 
 
 
 

      Total shareholders' equity
5,162,951

 
6,001,279

 
329,017

 
(6,330,296
)
 
5,162,951

Non-controlling interest
—

 
—

 
1,245

 
7,016

 
8,261

      Total equity
5,162,951

 
6,001,279

 
330,262

 
(6,323,280
)
 
5,171,212

Total liabilities and equity
$
6,605,890

 
$
8,897,889

 
$
554,621

 
$
(6,759,135
)
 
$
9,299,265










CATAMARAN CORPORATION
Condensed Consolidated Balance Sheets
December 31, 2013
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
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
Three Months ended September 30, 2014
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenue
$
9,891

 
$
5,164,201

 
$
982,885

 
$
(615,264
)
 
$
5,541,713

Cost of revenue
8,669

 
4,886,560

 
910,200

 
(615,264
)
 
5,190,165

Gross profit
1,222

 
277,641

 
72,685

 
—

 
351,548

Expenses:
 

 
 

 
 
 
 

 
 
Selling, general and administrative
801

 
103,590

 
27,506

 
—

 
131,897

Depreciation of property and equipment
6

 
17,970

 
1,466

 
—

 
19,442

Amortization of intangible assets
—

 
50,596

 
1,620

 
—

 
52,216

 
807

 
172,156

 
30,592

 
—

 
203,555

Operating income
415

 
105,485

 
42,093

 
—

 
147,993

Interest and other expense, net
14,054

 
3,021

 
843

 
—

 
17,918

Equity (income) in subsidiaries
(95,608
)
 
(15,769
)
 
—

 
111,377

 
—

Income before income taxes
81,969

 
118,233

 
41,250

 
(111,377
)
 
130,075

Income tax expense
—

 
22,625

 
11,138

 
—

 
33,763

Net income
81,969

 
95,608

 
30,112

 
(111,377
)
 
96,312

Less net income attributable to non-controlling interest
—

 
—

 
—

 
14,344

 
14,344

Net income attributable to the Company
$
81,969

 
$
95,608

 
$
30,112

 
$
(125,721
)
 
$
81,968



CATAMARAN CORPORATION
Condensed Consolidated Statements of Operations
Three Months ended September 30, 2013
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenue
$
8,635

 
$
3,272,637

 
$
517,576

 
$
(184,700
)
 
$
3,614,148

Cost of revenue
7,765

 
3,040,815

 
462,480

 
(184,700
)
 
3,326,360

Gross profit
870

 
231,822

 
55,096

 
—

 
287,788

Expenses:
 

 
 

 
 
 
 

 
 
Selling, general and administrative
253

 
89,938

 
20,263

 
—

 
110,454

Depreciation of property and equipment
6

 
9,274

 
699

 
—

 
9,979

Amortization of intangible assets
—

 
45,477

 
1,743

 
—

 
47,220

 
259

 
144,689

 
22,705

 
—

 
167,653

Operating income
611

 
87,133

 
32,391

 
—

 
120,135

Interest and other expense, net
7,873

 
724

 
429

 
—

 
9,026

Equity (income) in subsidiaries
(80,200
)
 
(11,544
)
 
—

 
91,744

 
—

Income before income taxes
72,938

 
97,953

 
31,962

 
(91,744
)
 
111,109

Income tax expense
—

 
17,753

 
10,228

 
—

 
27,981

Net income
72,938

 
80,200

 
21,734

 
(91,744
)
 
83,128

Less net income attributable to non-controlling interest
—

 
—

 
—

 
10,190

 
10,190

Net income attributable to the Company
$
72,938

 
$
80,200

 
$
21,734

 
$
(101,934
)
 
$
72,938



CATAMARAN CORPORATION
Condensed Consolidated Statements of Operations
Nine Months ended September 30, 2014
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenue
$
29,581

 
$
15,050,082

 
$
2,423,698

 
$
(1,661,361
)
 
$
15,842,000

Cost of revenue
25,670

 
14,273,762

 
2,207,905

 
(1,661,361
)
 
14,845,976

Gross profit
3,911

 
776,320

 
215,793

 
—

 
996,024

Expenses:
 

 
 

 
 
 
 

 
 
Selling, general and administrative
1,934

 
302,454

 
84,660

 
—

 
389,048

Depreciation of property and equipment
23

 
40,946

 
3,935

 
—

 
44,904

Amortization of intangible assets
—

 
157,273

 
4,906

 
—

 
162,179

 
1,957

 
500,673

 
93,501

 
—

 
596,131

Operating income
1,954

 
275,647

 
122,292

 
—

 
399,893

Interest and other expense, net
38,132

 
4,663

 
2,087

 
—

 
44,882

Equity (income) in subsidiaries
(253,023
)
 
(44,697
)
 
—

 
297,720

 
—

Income before income taxes
216,845

 
315,681

 
120,205

 
(297,720
)
 
355,011

Income tax expense
—

 
62,658

 
32,455

 
—

 
95,113

Net income
216,845

 
253,023

 
87,750

 
(297,720
)
 
259,898

Less net income attributable to non-controlling interest
—

 
—

 
—

 
43,053

 
43,053

Net income attributable to the Company
$
216,845

 
$
253,023

 
$
87,750

 
$
(340,773
)
 
$
216,845


CATAMARAN CORPORATION
Condensed Consolidated Statements of Operations
Nine Months ended September 30, 2013
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenue
$
25,273

 
$
9,244,324

 
$
1,485,165

 
$
(503,467
)
 
$
10,251,295

Cost of revenue
22,458

 
8,603,084

 
1,328,471

 
(503,467
)
 
9,450,546

Gross profit
2,815

 
641,240

 
156,694

 
—

 
800,749

Expenses:
 

 
 

 
 
 
 

 
 
Selling, general and administrative
761

 
252,671

 
57,407

 
—

 
310,839

Depreciation of property and equipment
21

 
22,774

 
2,092

 
—

 
24,887

Amortization of intangible assets
—

 
142,321

 
5,047

 
—

 
147,368

 
782

 
417,766

 
64,546

 
—

 
483,094

Operating income
2,033

 
223,474

 
92,148

 
—

 
317,655

Interest and other expense, net
27,334

 
2,243

 
1,395

 
—

 
30,972

Equity (income) in subsidiaries
(213,065
)
 
(38,409
)
 
—

 
251,474

 
—

Income before income taxes
187,764

 
259,640

 
90,753

 
(251,474
)
 
286,683

Income tax expense
—

 
46,575

 
29,041

 
—

 
75,616

Net income
187,764

 
213,065

 
61,712

 
(251,474
)
 
211,067

Less net income attributable to non-controlling interest
—

 
—

 
—

 
23,303

 
23,303

Net income attributable to the Company
$
187,764

 
$
213,065

 
$
61,712

 
$
(274,777
)
 
$
187,764
Summary of condensed cash flow statements
CATAMARAN CORPORATION
Condensed Consolidated Statements of Cash Flows
Nine Months ended September 30, 2014
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
Cash flows from operating activities:
 

 
 

 
 
 
 
 
 

Net cash provided (used) by operating activities
$
238,031

 
$
453,497

 
$
94,441

 
$
(358,875
)
 
$
427,094

Cash flows from investing activities:
 

 
 

 
 
 
 
 
 

Acquisitions, net of cash acquired
—

 
(2,026
)
 
—

 
—

 
(2,026
)
Purchases of property and equipment
(49
)
 
(28,352
)
 
(17,808
)
 
—

 
(46,209
)
Net cash used by investing activities
(49
)
 
(30,378
)
 
(17,808
)
 
—

 
(48,235
)
Cash flows from financing activities:
 

 
 

 
 
 
 
 
 

Proceeds from issuance of debt
492,500

 
—

 
—

 
—

 
492,500

Repayment of long-term debt
(325,000
)
 
—

 
—

 
—

 
(325,000
)
Payment of financing costs
(1,963
)
 
—

 
—

 
—

 
(1,963
)
Proceeds from exercise of options
7,950

 
(2,329
)
 
(25
)
 
—

 
5,596

Proceeds from exercise of warrants
3,453

 
—

 
—

 
—

 
3,453

Tax benefit on option exercises
—

 
4,204

 
37

 
—

 
4,241

Net transactions with parent and affiliates
(212,419
)
 
(150,501
)
 
(33,755
)
 
396,675

 
—

Distributions to non-controlling interest
—

 
—

 
—

 
(37,800
)
 
(37,800
)
Proceeds from restricted stock
20,441

 
(19,847
)
 
(594
)
 
—

 
—

Other
—

 
(353
)
 
—

 
—

 
(353
)
Net cash provided (used) by financing activities
(15,038
)
 
(168,826
)
 
(34,337
)
 
358,875

 
140,674

Effect of foreign exchange on cash balances
61

 
—

 
—

 
—

 
61

Change in cash and cash equivalents
223,005

 
254,293

 
42,296

 
—

 
519,594

Cash and cash equivalents, beginning of period
15,090

 
350,889

 
21,262

 
—

 
387,241

Cash and cash equivalents, end of period
$
238,095

 
$
605,182

 
$
63,558

 
$
—

 
$
906,835




























CATAMARAN CORPORATION
Condensed Consolidated Statements of Cash Flows
Nine Months ended September 30, 2013
(in thousands)
 
Catamaran Corporation
 
Guarantors
 
Non-Guarantors
 
Consolidations
 
Consolidated
Cash flows from operating activities:
 

 
 

 
 
 
 
 
 

Net cash provided (used) by operating activities
$
132,146

 
$
484,989

 
$
(23,116
)
 
$
(258,166
)
 
$
335,853

Cash flows from investing activities:
 

 
 

 
 
 
 
 
 

Acquisitions, net of cash acquired
—

 
—

 
(7,076
)
 
—

 
(7,076
)
Purchases of property and equipment
(8
)
 
(90,158
)
 
(3,106
)
 
—

 
(93,272
)
 Proceeds from restricted cash
—

 
20,004

 
—

 
—

 
20,004

Net cash used by investing activities
(8
)
 
(70,154
)
 
(10,182
)
 
—

 
(80,344
)
Cash flows from financing activities:
 

 
 

 
 
 
 
 
 

Proceeds from issuance of debt
100,000

 
—

 
—

 
—

 
100,000

Repayment of long-term debt
(256,250
)
 
—

 
—

 
—

 
(256,250
)
Payment of financing costs
(2,347
)
 
—

 
—

 
—

 
(2,347
)
Proceeds from exercise of options
4,224

 
(1,238
)
 
(10
)
 
—

 
2,976

Proceeds from exercise of warrants
487

 
—

 
—

 
—

 
487

Tax benefit on option exercises
—

 
10,462

 
7

 
—

 
10,469

Payments of contingent consideration
—

 
(18,338
)
 
(4,865
)
 
—

 
(23,203
)
Net transactions with parent and affiliates
(23,293
)
 
(292,700
)
 
35,712

 
280,281

 
—

Distributions to non-controlling interest
—

 
—

 
—

 
(22,115
)
 
(22,115
)
Proceeds from restricted stock
26,975

 
(26,259
)
 
(716
)
 
—

 
—

Net cash (used) provided by financing activities
(150,204
)
 
(328,073
)
 
30,128

 
258,166

 
(189,983
)
Effect of foreign exchange on cash balances
(75
)
 
—

 
—

 
—

 
(75
)
Change in cash and cash equivalents
(18,141
)
 
86,762

 
(3,170
)
 
—

 
65,451

Cash and cash equivalents, beginning of period
33,603

 
303,833

 
33,340

 
—

 
370,776

Cash and cash equivalents, end of period
$
15,462

 
$
390,595

 
$
30,170

 
$
—

 
$
436,227