Condensed Consolidating Financial Statements of Guarantors (Tables)

12 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Statements of Guarantors

Schedule of condensed consolidating balance sheet

Condensed Consolidating Balance Sheet
As of September 30, 2015

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	164,443		$	1,344		$	137,563		$	—		$	303,350
Accounts receivable, net		—			149,423			49,270			—			198,693
Intercompany		29,258			—			85,513			(114,771	)		—
Inventories		—			630,013			214,210			—			844,223
Deferred income taxes		—			56,119			75			—			56,194
Other current assets		876			24,148			34,807			—			59,831
Total current assets		194,577			861,047			521,438			(114,771	)		1,462,291
Property, plant and equipment, net		120,977			266,401			218,330			—			605,708
Goodwill		—			720,813			397,207			—			1,118,020
Other intangible assets, net		—			1,341,784			322,754			—			1,664,538
Other assets		7,728			10,066			58			—			17,852
Intercompany loan receivable		2,497,035			1,319,331			—			(3,816,366	)		—
Investments in subsidiaries		2,078,945			146,539			—			(2,225,484	)		—
Total assets	$	4,899,262		$	4,665,981		$	1,459,787		$	(6,156,621	)	$	4,868,409
Liabilities and Stockholder's Equity
Current liabilities:
Current portion of long-term debt	$	33,498		$	—		$	998		$	—		$	34,496
Accounts payable		—			188,599			93,880			—			282,479
Intercompany		—			114,771			—			(114,771	)		—
Accrued expenses and
other current liabilities		31,971			137,817			79,773			—			249,561
Total current liabilities		65,469			441,187			174,651			(114,771	)		566,536
Intercompany loan payable		1,319,331			2,116,214			380,821			(3,816,366	)		—
Long-term debt, net of current portion		2,082,716			—			46,442			—			2,129,158
Deferred income taxes		—			613,165			88,529			—			701,694
Other liabilities		—			12,731			26,544			—			39,275
Total liabilities		3,467,516			3,183,297			716,987			(3,931,137	)		3,436,663
Commitments and contingencies
Stockholder's Equity:
Common stock		—			—			—			—			—
Capital in excess of par		1,542,584			1,404,431			746,911			(2,151,342	)		1,542,584
(Accumulated deficit) retained earnings		(1,136	)		96,025			92,282			(188,307	)		(1,136	)
Accumulated other comprehensive income (loss)		(109,702	)		(17,772	)		(96,393	)		114,165			(109,702	)
Total stockholder's equity		1,431,746			1,482,684			742,800			(2,225,484	)		1,431,746
Total liabilities and stockholder's equity	$	4,899,262		$	4,665,981		$	1,459,787		$	(6,156,621	)	$	4,868,409

Condensed Consolidating Balance Sheet
As of September 30, 2014
(as revised)

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	77,550		$	751		$	61,187		$	—		$	139,488
Accounts receivable, net		—			130,749			44,952			—			175,701
Intercompany		30,425			—			32,102			(62,527	)		—
Inventories		—			654,192			202,742			—			856,934
Deferred income taxes		—			24,329			1,913			—			26,242
Other current assets		2,618			21,300			40,843			—			64,761
Total current assets		110,593			831,321			383,739			(62,527	)		1,263,126
Property, plant and equipment, net		95,022			304,274			197,906			—			597,202
Goodwill		—			726,354			436,928			—			1,163,282
Other intangible assets, net		—			1,439,374			352,218			—			1,791,592
Other assets		—			8,116			91			—			8,207
Intercompany loan receivable		2,438,743			1,060,793			—			(3,499,536	)		—
Investments in subsidiaries		2,100,050			148,921			—			(2,248,971	)		—
Total assets	$	4,744,408		$	4,519,153		$	1,370,882		$	(5,811,034	)	$	4,823,409
Liabilities and Stockholder's Equity
Current liabilities:
Current portion of long-term debt	$	—		$	—		$	261		$	—		$	261
Accounts payable		—			140,761			87,116			—			227,877
Intercompany		—			62,527			—			(62,527	)		—
Accrued expenses and other current liabilities		34,282			112,136			74,638			—			221,056
Total current liabilities		34,282			315,424			162,015			(62,527	)		449,194
Intercompany loan payable		1,060,793			2,098,900			339,843			(3,499,536	)		—
Long-term debt, net of current portion		2,098,900			—			587			—			2,099,487
Deferred income taxes		22,280			586,116			99,566			—			707,962
Other liabilities		14,773			13,732			24,881			—			53,386
Total liabilities		3,231,028			3,014,172			626,892			(3,562,063	)		3,310,029
Commitments and contingencies
Stockholder's Equity:
Common stock		—			—			—			—			—
Capital in excess of par		1,561,014			1,417,462			739,911			(2,157,373	)		1,561,014
(Accumulated deficit) retained earnings		(18,431	)		93,552			24,570			(118,122	)		(18,431	)
Accumulated other comprehensive income (loss)		(29,203	)		(6,033	)		(20,491	)		26,524			(29,203	)
Total stockholder's equity		1,513,380			1,504,981			743,990			(2,248,971	)		1,513,380
Total liabilities and stockholder's equity	$	4,744,408		$	4,519,153		$	1,370,882		$	(5,811,034	)	$	4,823,409

Schedule of condensed consolidating statement of operations and comprehensive income (loss)

Consolidated Statements of Operations and Comprehensive (Loss) Income
For the fiscal year ended September 30, 2015

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,124,299		$	1,172,050		$	(70,225	)	$	3,226,124
Costs and expenses:
Cost of sales		—			1,300,944			515,743			(70,225	)		1,746,462
Advertising, promotion and catalog		—			146,813			51,390			—			198,203
Selling, general and administrative		101,669			464,500			412,096			—			978,265
Goodwill and intangible asset impairment charges		—			55,000			—			—			55,000
Facility restructuring charges		—			29,493			—			—			29,493
		101,669			1,996,750			979,229			(70,225	)		3,007,423
Income (loss) from operations		(101,669	)		127,549			192,821			—			218,701
Other income (expense):
Intercompany interest		214,186			(194,846	)		(19,340	)		—			—
Interest		(194,846	)		62,394			(478	)		—			(132,930	)
Miscellaneous, net		567			(7,075	)		8,242			—			1,734
		19,907			(139,527	)		(11,576	)		—			(131,196	)
Income (loss) before income taxes		(81,762	)		(11,978	)		181,245			—			87,505
Provision (benefit) for income taxes		(23,320	)		(4,371	)		40,778			—			13,087
Equity in income of subsidiaries		132,860			18,870			—			(151,730	)		—
Net income (loss)		74,418			11,263			140,467			(151,730	)		74,418
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment, net of taxes		(81,220	)		(12,460	)		(75,902	)		88,362			(81,220	)
Change in fair value of interest rate swaps, net of taxes		721			721			—			(721	)		721
Total other comprehensive (loss) income, net of tax		(80,499	)		(11,739	)		(75,902	)		87,641			(80,499	)
Comprehensive (loss) income	$	(6,081	)	$	(476	)	$	64,565		$	(64,089	)	$	(6,081	)

Consolidated Statements of Operations and Comprehensive Income (Loss)
Year Ended September 30, 2014

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,158,213		$	1,160,397		$	(112,832	)	$	3,205,778
Costs and expenses:
Cost of sales		—			1,339,925			513,324			(112,832	)		1,740,417
Advertising, promotion and catalog		—			163,894			38,860			—			202,754
Selling, general and administrative		96,771			459,309			396,453			—			952,533
Goodwill and intangible asset impairment charges		—			207,334			—			—			207,334
		96,771			2,170,462			948,637			(112,832	)		3,103,038
Income (loss) from operations		(96,771	)		(12,249	)		211,760			—			102,740
Other income (expense):
Intercompany interest		157,567			(137,589	)		(19,978	)		—			—
Interest		(137,589	)		1,106			445			—			(136,038	)
Miscellaneous, net		1,497			(1,665	)		(541	)		—			(709	)
		21,475			(138,148	)		(20,074	)		—			(136,747	)
Income (loss) before income taxes		(75,296	)		(150,397	)		191,686			—			(34,007	)
Provision (benefit) for income taxes		(10,816	)		(24,416	)		45,377			—			10,145
Equity in income of subsidiaries		20,328			24,086			—			(44,414	)		—
Net income (loss)		(44,152	)		(101,895	)		146,309			(44,414	)		(44,152	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of taxes		(18,799	)		(2,503	)		(21,722	)		24,225			(18,799	)
Change in fair value of interest rate swaps net of taxes		3,180			3,180			—			(3,180	)		3,180
Total other comprehensive income (loss), net of tax		(15,619	)		677			(21,722	)		21,045			(15,619	)
Comprehensive income (loss)	$	(59,771	)	$	(101,218	)	$	124,587		$	(23,369	)	$	(59,771	)

Consolidated Statements of Operations and Comprehensive Income (Loss)
Year Ended September 30, 2013

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,226,010		$	1,040,601		$	(103,570	)	$	3,163,041
Costs and expenses:
Cost of sales		—			1,343,613			460,866			(103,570	)		1,700,909
Advertising, promotion and catalog		—			153,418			36,067			—			189,485
Selling, general and administrative		103,625			458,065			348,497			—			910,187
Merger expenses		—			32,695									32,695
		103,625			1,987,791			845,430			(103,570	)		2,833,276
Income (loss) from operations		(103,625	)		238,219			195,171			—			329,765
Other income (expense):
Intercompany interest		162,091			(147,676	)		(14,415	)		—			—
Interest		(147,676	)		—			576			—			(147,100	)
Miscellaneous, net		(341	)		9,532			(7,498	)		—			1,693
		14,074			(138,144	)		(21,337	)		—			(145,407	)
Income (loss) before income taxes		(89,551	)		100,075			173,834			—			184,358
Provision (benefit) for income taxes		(26,871	)		33,075			48,674			—			54,878
Equity in income of subsidiaries		192,160			20,010			—			(212,170	)		—
Net income (loss)		129,480			87,010			125,160			(212,170	)		129,480
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of taxes		605			(2,950	)		2,191			759			605
Change in fair value of interest rate swaps net of taxes		4,405			4,405			—			(4,405	)		4,405
Total other comprehensive income (loss), net of tax		5,010			1,455			2,191			(3,646	)		5,010
Comprehensive income (loss)	$	134,490		$	88,465		$	127,351		$	(215,816	)	$	134,490

Schedule of condensed consolidating statement of cash flows

NBTY, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2015

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	74,418		$	11,263		$	140,467		$	(151,730	)	$	74,418
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(132,860	)		(18,870	)		—			151,730			—
Impairments and disposals of assets		—			62,239			1,542			—			63,781
Depreciation of property, plant and equipment		16,796			48,257			24,797			—			89,850
Amortization of intangible assets		—			42,590			2,966			—			45,556
Foreign currency transaction loss (gain)		—			4,907			22			—			4,929
Amortization and write-off of financing fees		18,791			—			—			—			18,791
Stock-based compensation		2,461			140			244			—			2,845
Allowance for doubtful accounts		—			598			21			—			619
Inventory reserves		—			1,728			4,747			—			6,475
Deferred income taxes		—			(19,773	)		(10,488	)		—			(30,261	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		—			(23,422	)		(8,519	)		—			(31,941	)
Inventories		—			1,115			(30,208	)		—			(29,093	)
Other assets		—			(885	)		5,212			—			4,327
Accounts payable		—			32,774			13,478			—			46,252
Accrued expenses and other liabilities		—			8,405			15,566			—			23,971
Dividends received		63,966			8,789			—			(72,755	)		—
Intercompany accounts		—			(6,111	)		6,111			—			—
Cash (used in) provided by operating activities	$	43,572		$	153,744		$	165,958		$	(72,755	)	$	290,519
Cash flows from investing activities:
Purchase of property, plant and equipment		(33,420	)		(15,317	)		(66,723	)		—			(115,460	)
Proceeds from sale of building		—			933			—			—			933
Proceeds from sale of powder facility assets					23,983									23,983
Investment in subsidiary		(7,000	)		—			—			7,000			—
Net cash used in investing activities		(40,420	)		9,599			(66,723	)		7,000			(90,544	)
Cash flows from financing activities:
Principal payments under long-term agreements		—			—			(871	)		—			(871	)
Proceeds from sale-leaseback		—			—			52,826						52,826
Payments for financing fees		(611	)		—			—			—			(611	)
Dividends paid		(78,398	)		—			(72,755	)		72,755			(78,398	)
Capital contribution		—			—			7,000			(7,000	)		—
Intercompany accounts		162,750			(162,750	)					—			—
Net cash used in financing activities		83,741			(162,750	)		(13,800	)		65,755			(27,054	)
Effect of exchange rate changes on cash		—			—			(9,059	)		—			(9,059	)
Net increase in cash and cash equivalents		86,893			593			76,376			—			163,862
Cash and cash equivalents at beginning of period		77,550			751			61,187			—			139,488
Cash and cash equivalents at end of period	$	164,443		$	1,344		$	137,563		$	—		$	303,350

NBTY, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2014

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(44,152	)	$	(101,895	)	$	146,309		$	(44,414	)	$	(44,152	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(20,328	)		(24,086	)		—			44,414			—
Impairments and disposals of assets		—			213,314			1,499			—			214,813
Depreciation of property, plant and equipment		11,956			28,234			20,340			—			60,530
Amortization of intangible assets		—			42,590			3,437			—			46,027
Foreign currency transaction loss (gain)		—			1,372			330			—			1,702
Amortization and write-off of financing fees		19,033			—			—			—			19,033
Stock-based compensation		3,521			185			382			—			4,088
Allowance for doubtful accounts		—			407			581			—			988
Inventory reserves		—			2,874			3,132			—			6,006
Deferred income taxes		—			(49,158	)		277			—			(48,881	)
Changes in operating assets and liabilities, net of acquisitions:											—
Accounts receivable		—			(3,956	)		(2,744	)		—			(6,700	)
Inventories		—			(88,597	)		(34,474	)		—			(123,071	)
Other assets		—			7,451			(7,079	)		—			372
Accounts payable		—			(56,196	)		25,264			—			(30,932	)
Accrued expenses and other liabilities		—			(973	)		3,894			—			2,921
Dividends received		126,596			25,341			—			(151,937	)		—
Intercompany accounts		—			(545	)		545			—			—
Cash (used in) provided by operating activities	$	96,626		$	(3,638	)	$	161,693		$	(151,937	)	$	102,744
Cash flows from investing activities:
Purchase of property, plant and equipment		(22,031	)		(34,701	)		(48,475	)		—			(105,207	)
Proceeds from sale of building		—			7,178			10			—			7,188
Investment in subsidiary		(6,500	)		—			—			6,500			—
Net cash used in investing activities		(28,531	)		(27,523	)		(48,465	)		6,500			(98,019	)
Cash flows from financing activities:
Principal payments under long-term agreements		—			—			(378	)		—			(378	)
Dividends paid		(60,063	)		—			(151,937	)		151,937			(60,063	)
Capital contribution		—			—			6,500			(6,500	)		—
Intercompany accounts		(11,838	)		(3,445	)		15,283			—			—
Net cash used in financing activities		(71,901	)		(3,445	)		(130,532	)		145,437			(60,441	)
Effect of exchange rate changes on cash		—			—			(3,357	)		—			(3,357	)
Net decrease in cash and cash equivalents		(3,806	)		(34,606	)		(20,661	)		—			(59,073	)
Cash and cash equivalents at beginning of period		81,356			35,357			81,848			—			198,561
Cash and cash equivalents at end of period	$	77,550		$	751		$	61,187		$	—		$	139,488

NBTY, INC. AND SUBSIDIARIES
Condensed Consolidating Statement of Cash Flows
Fiscal Year Ended September 30, 2013

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	129,480		$	87,010		$	125,160		$	(212,170	)	$	129,480
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in earnings of subsidiaries		(192,160	)		(20,010	)		—			212,170			—
Impairments and disposals of assets		—			5,014			255			—			5,269
Depreciation of property, plant and equipment		8,213			40,124			16,546			—			64,883
Amortization of intangible assets		—			42,341			3,412			—			45,753
Foreign currency transaction loss (gain)		(745	)		—			(201	)		—			(946	)
Amortization and write-off of financing fees		22,504			—			—			—			22,504
Stock-based compensation		1,845			72			126			—			2,043
Allowance for doubtful accounts		—			(2,587	)		—			—			(2,587	)
Amortization of incremental inventory fair value		—			2,417			—			—			2,417
Inventory reserves		—			2,042			—			—			2,042
Deferred income taxes		—			5,293			—			—			5,293
Call premium on term loan		(15,075	)		—			—			—			(15,075	)
Changes in operating assets and liabilities, net of acquisitions:											—
Accounts receivable		—			9,126			(13,822	)		—			(4,696	)
Inventories		—			(11,297	)		(3,053	)		—			(14,350	)
Other assets		—			1,721			(5,454	)		—			(3,733	)
Accounts payable		—			42,331			3,422			—			45,753
Accrued expenses and other liabilities		—			20,544			6,982			—			27,526
Dividends received		62,010			27,589			—			(89,599	)		—
Intercompany accounts		—			44,124			(44,124	)		—			—
Net cash provided by operating activities		16,072			295,854			89,249			(89,599	)		311,576
Cash flows from investing activities:
Purchase of property, plant and equipment		(35,186	)		(59,039	)		(34,995	)		—			(129,220	)
Proceeds from sale of building		7,548			—			—			—			7,548
Cash paid for acquisitions, net of cash acquired		(77,936	)		(4,537	)		—			—			(82,473	)
Cash used in investing activities		(105,574	)		(63,576	)		(34,995	)		—			(204,145	)
Cash flows from financing activities:
Principal payments under long-term agreements		—			—			(603	)		—			(603	)
Proceeds from borrowings under the revolver		80,000			—			—			—			80,000
Paydowns of borrowings under the revolver		(80,000	)		—			—			—			(80,000	)
Payments for financing fees		(7,387	)		—			—			—			(7,387	)
Dividends paid		(216,926	)		—			(89,599	)		89,599			(216,926	)
Intercompany		211,510			(211,510	)		—			—			—
Net cash used in financing activities		(12,803	)		(211,510	)		(90,202	)		89,599			(224,916	)
Effect of exchange rate changes on cash and cash equivalents		—			—			910			—			910
Net (decrease) increase in cash and cash equivalents		(102,305	)		20,768			(35,038	)		—			(116,575	)
Cash and cash equivalents at beginning of period		183,661			14,589			116,886			—			315,136
Cash and cash equivalents at end of period	$	81,356		$	35,357		$	81,848		$	—		$	198,561