| Summary of condensed balance sheets |
CATAMARAN CORPORATION Condensed Consolidated Balance Sheets March 31, 2015 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | ASSETS | | | | | | | | | | Current assets | |
| | | | | | | | |
| Cash and cash equivalents | $ | 36,057 |
| | $ | 683,546 |
| | $ | 145,598 |
| | $ | — |
| | $ | 865,201 |
| Accounts receivable, net | 4,010 |
| | 1,323,025 |
| | 329,088 |
| | (286,927 | ) | | 1,369,196 |
| Rebates receivable | 9,652 |
| | 823,696 |
| | 152,144 |
| | (149,356 | ) | | 836,136 |
| Other current assets | 120 |
| | 144,676 |
| | 69,467 |
| | 12 |
| | 214,275 |
| Intercompany receivable | — |
| | 534,122 |
| | — |
| | (534,122 | ) | | — |
| Total current assets | 49,839 |
| | 3,509,065 |
| | 696,297 |
| | (970,393 | ) | | 3,284,808 |
| Property and equipment, net | 297 |
| | 148,677 |
| | 50,014 |
| | — |
| | 198,988 |
| Goodwill | — |
| | 4,689,522 |
| | 234,143 |
| | — |
| | 4,923,665 |
| Other intangible assets, net | — |
| | 913,389 |
| | 67,091 |
| | — |
| | 980,480 |
| Intercompany loans receivable | 275,000 |
| | — |
| | — |
| | (275,000 | ) | | — |
| Investment in subsidiaries | 6,471,100 |
| | 553,491 |
| | 71 |
| | (7,024,662 | ) | | — |
| Other long-term assets | 12,895 |
| | 43,474 |
| | 21,987 |
| | (7,926 | ) | | 70,430 |
| Total assets | $ | 6,809,131 |
| | $ | 9,857,618 |
| | $ | 1,069,603 |
| | $ | (8,277,981 | ) | | $ | 9,458,371 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities | |
| | | | | | | | |
| Accounts payable | $ | — |
| | $ | 1,335,543 |
| | $ | 4,162 |
| | $ | (271,307 | ) | | $ | 1,068,398 |
| Accrued expenses and other current liabilities | 4,452 |
| | 233,059 |
| | 41,418 |
| | (6,545 | ) | | 272,384 |
| Rebates payable | — |
| | 955,623 |
| | 43,283 |
| | (43,283 | ) | | 955,623 |
| Current portion - long-term debt | 87,500 |
| | — |
| | — |
| | — |
| | 87,500 |
| Intercompany payable | 18,961 |
| | — |
| | 614,771 |
| | (633,732 | ) | | — |
| Total current liabilities | 110,913 |
| | 2,524,225 |
| | 703,634 |
| | (954,867 | ) | | 2,383,905 |
| Deferred income taxes | — |
| | 268,288 |
| | 1,548 |
| | — |
| | 269,836 |
| Long-term debt | 1,327,744 |
| | — |
| | — |
| | — |
| | 1,327,744 |
| Intercompany loans payable | — |
| | 275,000 |
| | — |
| | (275,000 | ) | | — |
| Other long-term liabilities | 821 |
| | 72,191 |
| | 26,319 |
| | — |
| | 99,331 |
| Total liabilities | 1,439,478 |
| | 3,139,704 |
| | 731,501 |
| | (1,229,867 | ) | | 4,080,816 |
| Commitments and contingencies (Note 10) |
|
| |
|
| |
|
| |
|
| |
|
| Shareholders’ equity | |
| | | | | | | | |
| Total shareholders' equity | 5,369,653 |
| | 6,717,914 |
| | 336,857 |
| | (7,054,771 | ) | | 5,369,653 |
| Non-controlling interest | — |
| | — |
| | 1,245 |
| | 6,657 |
| | 7,902 |
| Total equity | 5,369,653 |
| | 6,717,914 |
| | 338,102 |
| | (7,048,114 | ) | | 5,377,555 |
| Total liabilities and equity | $ | 6,809,131 |
| | $ | 9,857,618 |
| | $ | 1,069,603 |
| | $ | (8,277,981 | ) | | $ | 9,458,371 |
|
CATAMARAN CORPORATION Condensed Consolidated Balance Sheets December 31, 2014 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | ASSETS | | | | | | | | | | Current assets | |
| | | | | | | | |
| Cash and cash equivalents | $ | 333,469 |
| | $ | 648,903 |
| | $ | 29,580 |
| | $ | — |
| | $ | 1,011,952 |
| Accounts receivable, net | 304 |
| | 1,217,675 |
| | 166,937 |
| | (130,580 | ) | | 1,254,336 |
| Rebates receivable | 10,710 |
| | 851,929 |
| | 155,719 |
| | (154,534 | ) | | 863,824 |
| Other current assets | 99 |
| | 166,858 |
| | 52,478 |
| | — |
| | 219,435 |
| Intercompany receivable | — |
| | 675,551 |
| | — |
| | (675,551 | ) | | — |
| Total current assets | 344,582 |
| | 3,560,916 |
| | 404,714 |
| | (960,665 | ) | | 3,349,547 |
| Property and equipment, net | 110 |
| | 154,413 |
| | 55,504 |
| | — |
| | 210,027 |
| Goodwill | — |
| | 4,689,522 |
| | 35,117 |
| | — |
| | 4,724,639 |
| Other intangible assets, net | — |
| | 963,096 |
| | 5,103 |
| | — |
| | 968,199 |
| Investment in subsidiaries | 6,375,214 |
| | 266,096 |
| | 71 |
| | (6,641,381 | ) | | — |
| Other long-term assets | 13,874 |
| | 42,876 |
| | 22,084 |
| | (7,061 | ) | | 71,773 |
| Total assets | $ | 6,733,780 |
| | $ | 9,676,919 |
| | $ | 522,593 |
| | $ | (7,609,107 | ) | | $ | 9,324,185 |
| LIABILITIES AND EQUITY | | | | | | | | | | Current liabilities | |
| | | | | | | | |
| Accounts payable | $ | 4 |
| | $ | 1,079,598 |
| | $ | 3,150 |
| | $ | (114,961 | ) | | $ | 967,791 |
| Accrued expenses and other current liabilities | 10,580 |
| | 304,309 |
| | 18,846 |
| | (6,545 | ) | | 327,190 |
| Rebates payable | — |
| | 967,733 |
| | 42,932 |
| | (42,932 | ) | | 967,733 |
| Current portion - long-term debt | 81,250 |
| | — |
| | — |
| | — |
| | 81,250 |
| Intercompany payable | 23,898 |
| | — |
| | 626,434 |
| | (650,332 | ) | | — |
| Total current liabilities | 115,732 |
| | 2,351,640 |
| | 691,362 |
| | (814,770 | ) | | 2,343,964 |
| Deferred income taxes | — |
| | 255,777 |
| | 1,548 |
| | — |
| | 257,325 |
| Long-term debt | 1,344,973 |
| | — |
| | — |
| | — |
| | 1,344,973 |
| Other long-term liabilities | 1,096 |
| | 71,475 |
| | 26,245 |
| | — |
| | 98,816 |
| Total liabilities | 1,461,801 |
| | 2,678,892 |
| | 719,155 |
| | (814,770 | ) | | 4,045,078 |
| Commitments and contingencies (Note 10) |
|
| |
|
| |
|
| |
|
| |
|
| Shareholders’ equity | |
| | | | | | | | |
| Total shareholders' equity | 5,271,979 |
| | 6,998,027 |
| | (197,807 | ) | | (6,800,220 | ) | | 5,271,979 |
| Non-controlling interest | — |
| | — |
| | 1,245 |
| | 5,883 |
| | 7,128 |
| Total equity | 5,271,979 |
| | 6,998,027 |
| | (196,562 | ) | | (6,794,337 | ) | | 5,279,107 |
| Total liabilities and equity | $ | 6,733,780 |
| | $ | 9,676,919 |
| | $ | 522,593 |
| | $ | (7,609,107 | ) | | $ | 9,324,185 |
|
|
| Summary of condensed income statements |
CATAMARAN CORPORATION Condensed Consolidated Statements of Operations Three Months ended March 31, 2015 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | | | | | | | | | | | Revenue | $ | 9,073 |
| | $ | 5,628,573 |
| | $ | 987,500 |
| | $ | (645,886 | ) | | $ | 5,979,260 |
| Cost of revenue | 7,555 |
| | 5,332,626 |
| | 903,543 |
| | (643,218 | ) | | 5,600,506 |
| Gross profit | 1,518 |
| | 295,947 |
| | 83,957 |
| | (2,668 | ) | | 378,754 |
| Expenses: | |
| | |
| | | | |
| | | Selling, general and administrative | 723 |
| | 117,802 |
| | 35,510 |
| | (2,668 | ) | | 151,367 |
| Depreciation of property and equipment | 18 |
| | 13,903 |
| | 1,887 |
| | — |
| | 15,808 |
| Amortization of intangible assets | — |
| | 49,707 |
| | 2,912 |
| | — |
| | 52,619 |
| | 741 |
| | 181,412 |
| | 40,309 |
| | (2,668 | ) | | 219,794 |
| Operating income | 777 |
| | 114,535 |
| | 43,648 |
| | — |
| | 158,960 |
| Interest and other expense, net | 9,969 |
| | 4,612 |
| | 914 |
| | — |
| | 15,495 |
| Equity (income) in subsidiaries | (95,885 | ) | | (16,796 | ) | | — |
| | 112,681 |
| | — |
| Income before income taxes | 86,693 |
| | 126,719 |
| | 42,734 |
| | (112,681 | ) | | 143,465 |
| Income tax expense | — |
| | 30,834 |
| | 13,077 |
| | — |
| | 43,911 |
| Net income | 86,693 |
| | 95,885 |
| | 29,657 |
| | (112,681 | ) | | 99,554 |
| Less net income attributable to non-controlling interest | — |
| | — |
| | — |
| | 12,861 |
| | 12,861 |
| Net income attributable to the Company | $ | 86,693 |
| | $ | 95,885 |
| | $ | 29,657 |
| | $ | (125,542 | ) | | $ | 86,693 |
|
CATAMARAN CORPORATION Condensed Consolidated Statements of Operations Three Months ended March 31, 2014 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | | | | | | | | | | | Revenue | $ | 11,041 |
| | $ | 4,776,699 |
| | $ | 620,136 |
| | $ | (493,397 | ) | | $ | 4,914,479 |
| Cost of revenue | 9,594 |
| | 4,532,630 |
| | 550,990 |
| | (493,397 | ) | | 4,599,817 |
| Gross profit | 1,447 |
| | 244,069 |
| | 69,146 |
| | — |
| | 314,662 |
| Expenses: | |
| | |
| | | | |
| | | Selling, general and administrative | 319 |
| | 103,171 |
| | 27,029 |
| | — |
| | 130,519 |
| Depreciation of property and equipment | 9 |
| | 11,259 |
| | 1,100 |
| | — |
| | 12,368 |
| Amortization of intangible assets | — |
| | 54,229 |
| | 757 |
| | — |
| | 54,986 |
| | 328 |
| | 168,659 |
| | 28,886 |
| | — |
| | 197,873 |
| Operating income | 1,119 |
| | 75,410 |
| | 40,260 |
| | — |
| | 116,789 |
| Interest and other expense, net | 9,966 |
| | 872 |
| | 498 |
| | — |
| | 11,336 |
| Equity (income) in subsidiaries | (72,292 | ) | | (15,126 | ) | | — |
| | 87,418 |
| | — |
| Income before income taxes | 63,445 |
| | 89,664 |
| | 39,762 |
| | (87,418 | ) | | 105,453 |
| Income tax expense | — |
| | 17,372 |
| | 10,736 |
| | — |
| | 28,108 |
| Net income | 63,445 |
| | 72,292 |
| | 29,026 |
| | (87,418 | ) | | 77,345 |
| Less net income attributable to non-controlling interest | — |
| | — |
| | — |
| | 13,900 |
| | 13,900 |
| Net income attributable to the Company | $ | 63,445 |
| | $ | 72,292 |
| | $ | 29,026 |
| | $ | (101,318 | ) | | $ | 63,445 |
|
|
| Summary of condensed cash flow statements |
CATAMARAN CORPORATION Condensed Consolidated Statements of Cash Flows Three Months ended March 31, 2015 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | Cash flows from operating activities: | |
| | |
| | | | | | |
| Net cash provided (used) by operating activities | $ | 48,431 |
| | $ | 329,792 |
| | $ | (114,184 | ) | | $ | (117,357 | ) | | $ | 146,682 |
| Cash flows from investing activities: | |
| | |
| | | | | | |
| Acquisitions, net of cash acquired | — |
| | — |
| | (261,668 | ) | | — |
| | (261,668 | ) | Purchases of property and equipment | (224 | ) | | (7,660 | ) | | (1,256 | ) | | — |
| | (9,140 | ) | Net cash used by investing activities | (224 | ) | | (7,660 | ) | | (262,924 | ) | | — |
| | (270,808 | ) | Cash flows from financing activities: | |
| | |
| | | | | | |
| Repayment of long-term debt | (12,500 | ) | | — |
| | — |
| | — |
| | (12,500 | ) | Proceeds from exercise of options | 40 |
| | (12 | ) | | — |
| | — |
| | 28 |
| Tax benefit on option exercises | — |
| | 1,916 |
| | — |
| | — |
| | 1,916 |
| Net transactions with parent and affiliates | (358,555 | ) | | (264,464 | ) | | 493,575 |
| | 129,444 |
| | — |
| Distributions to non-controlling interest | — |
| | — |
| | — |
| | (12,087 | ) | | (12,087 | ) | Proceeds from restricted stock | 25,350 |
| | (24,901 | ) | | (449 | ) | | — |
| | — |
| Other | — |
| | (28 | ) | | — |
| | — |
| | (28 | ) | Net cash (used) provided by financing activities | (345,665 | ) | | (287,489 | ) | | 493,126 |
| | 117,357 |
| | (22,671 | ) | Effect of foreign exchange on cash balances | 46 |
| | — |
| | — |
| | — |
| | 46 |
| Change in cash and cash equivalents | (297,412 | ) | | 34,643 |
| | 116,018 |
| | — |
| | (146,751 | ) | Cash and cash equivalents, beginning of period | 333,469 |
| | 648,903 |
| | 29,580 |
| | — |
| | 1,011,952 |
| Cash and cash equivalents, end of period | $ | 36,057 |
| | $ | 683,546 |
| | $ | 145,598 |
| | $ | — |
| | $ | 865,201 |
|
CATAMARAN CORPORATION Condensed Consolidated Statements of Cash Flows Three Months ended March 31, 2014 (in thousands) | | | | | | | | | | | | | | | | | | | | | | Catamaran Corporation | | Guarantors | | Non-Guarantors | | Consolidations | | Consolidated | Cash flows from operating activities: | |
| | |
| | | | | | |
| Net cash provided (used) by operating activities | $ | 46,037 |
| | $ | 465,289 |
| | $ | (300,816 | ) | | $ | (74,834 | ) | | $ | 135,676 |
| Cash flows from investing activities: | |
| | |
| | | | | | |
| Acquisitions, net of cash acquired | — |
| | (2,026 | ) | | — |
| | — |
| | (2,026 | ) | Purchases of property and equipment | (13 | ) | | 1,942 |
| | (14,711 | ) | | — |
| | (12,782 | ) | Net cash used by investing activities | (13 | ) | | (84 | ) | | (14,711 | ) | | — |
| | (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 | (68,426 | ) | | (333,956 | ) | | 312,548 |
| | 89,834 |
| | — |
| Distributions to non-controlling interest | — |
| | — |
| | — |
| | (15,000 | ) | | (15,000 | ) | Proceeds from restricted stock | 18,183 |
| | (17,830 | ) | | (353 | ) | | — |
| | — |
| Net cash (used) provided by financing activities | 140,122 |
| | (350,597 | ) | | 312,195 |
| | 74,834 |
| | 176,554 |
| Effect of foreign exchange on cash balances | 52 |
| | — |
| | — |
| | — |
| | 52 |
| Change in cash and cash equivalents | 186,198 |
| | 114,608 |
| | (3,332 | ) | | — |
| | 297,474 |
| Cash and cash equivalents, beginning of period | 15,090 |
| | 362,647 |
| | 9,504 |
| | — |
| | 387,241 |
| Cash and cash equivalents, end of period | $ | 201,288 |
| | $ | 477,255 |
| | $ | 6,172 |
| | $ | — |
| | $ | 684,715 |
|
|