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Condensed Consolidating Financial Information
12 Months Ended
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
The following tables present condensed consolidating financial information for: Owens & Minor, Inc. (O&M); the guarantors of Owens & Minor, Inc.’s 2021 Notes and 2024 Notes, on a combined basis; and the non-guarantor subsidiaries of the 2021 Notes and 2024 Notes, on a combined basis. The guarantor subsidiaries are 100% owned by Owens & Minor, Inc. Separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional, as well as joint and several, and we believe the condensed consolidating financial information is more meaningful in understanding the financial position, results of operations and cash flows of the guarantor subsidiaries.
Condensed Consolidating Financial Information
 
Year ended December 31, 2015
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Income
 
 
 
 
 
 
 
 
 
Net revenue
$

 
$
9,176,855

 
$
751,442

 
$
(155,351
)
 
$
9,772,946

Cost of goods sold

 
8,305,734

 
410,009

 
(157,370
)
 
8,558,373

Gross margin

 
871,121

 
341,433

 
2,019

 
1,214,573

Selling, general and administrative expenses
1,229

 
649,524

 
282,843

 

 
933,596

Acquisition-related and exit and realignment charges

 
8,877

 
19,527

 

 
28,404

Depreciation and amortization

 
34,497

 
25,690

 

 
60,187

Other operating (income) expense, net

 
(2,621
)
 
(5,352
)
 

 
(7,973
)
Operating (loss) earnings
(1,229
)
 
180,844

 
18,725

 
2,019

 
200,359

Interest expense (income), net
27,457

 
(3,371
)
 
3,063

 

 
27,149

Income (loss) before income taxes
(28,686
)
 
184,215

 
15,662

 
2,019

 
173,210

Income tax (benefit) provision
(9,837
)
 
71,807

 
7,831

 

 
69,801

Equity in earnings of subsidiaries
122,258

 

 

 
(122,258
)
 

Net income (loss)
103,409

 
112,408

 
7,831

 
(120,239
)
 
103,409

Other comprehensive income (loss), net of tax
(27,824
)
 
(243
)
 
(27,581
)
 
27,824

 
(27,824
)
Comprehensive income (loss)
$
75,585

 
$
112,165

 
$
(19,750
)
 
$
(92,415
)
 
$
75,585


Year ended December 31, 2014
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Income
 
 
 
 
 
 
 
 
 
Net revenue
$

 
$
8,910,274

 
$
626,044

 
$
(96,136
)
 
$
9,440,182

Cost of goods sold

 
8,051,350

 
311,947

 
(93,081
)
 
8,270,216

Gross margin

 
858,924

 
314,097

 
(3,055
)
 
1,169,966

Selling, general and administrative expenses
952

 
623,871

 
302,154

 

 
926,977

Acquisition-related and exit and realignment charges

 
15,065

 
27,736

 

 
42,801

Depreciation and amortization
2

 
35,582

 
21,541

 

 
57,125

Other operating (income) expense, net

 
(10,261
)
 
(6,212
)
 

 
(16,473
)
Operating (loss) earnings
(954
)
 
194,667

 
(31,122
)
 
(3,055
)
 
159,536

Loss on early retirement of debt
14,890

 

 

 

 
14,890

Interest expense (income), net
15,737

 
1,520

 
906

 

 
18,163

Income (loss) before income taxes
(31,581
)
 
193,147

 
(32,028
)
 
(3,055
)
 
126,483

Income tax (benefit) provision
(1,700
)
 
65,983

 
(4,303
)
 

 
59,980

Equity in earnings of subsidiaries
96,384

 

 

 
(96,384
)
 

Net income (loss)
66,503

 
127,164

 
(27,725
)
 
(99,439
)
 
66,503

Other comprehensive income (loss), net of tax
(33,569
)
 
(3,846
)
 
(29,539
)
 
33,385

 
(33,569
)
Comprehensive income (loss)
$
32,934

 
$
123,318

 
$
(57,264
)
 
$
(66,054
)
 
$
32,934

Condensed Consolidating Financial Information
 
Year ended December 31, 2013
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Income
 
 
 
 
 
 
 
 
 
Net revenue
$

 
$
8,687,131

 
$
435,035

 
$
(50,634
)
 
$
9,071,532

Cost of goods sold

 
7,826,768

 
177,541

 
(49,852
)
 
7,954,457

Gross margin

 
860,363

 
257,494

 
(782
)
 
1,117,075

Selling, general and administrative expenses
2,559

 
613,394

 
247,703

 

 
863,656

Acquisition-related and exit and realignment charges

 
8,130

 
4,314

 

 
12,444

Depreciation and amortization
14

 
35,712

 
14,860

 

 
50,586

Other operating (income) expense, net

 
(4,290
)
 
(3,404
)
 

 
(7,694
)
Operating (loss) earnings
(2,573
)
 
207,417

 
(5,979
)
 
(782
)
 
198,083

Interest expense (income), net
11,103

 
2,550

 
(555
)
 

 
13,098

Income (loss) before income taxes
(13,676
)
 
204,867

 
(5,424
)
 
(782
)
 
184,985

Income tax (benefit) provision
(5,474
)
 
81,011

 
(1,434
)
 

 
74,103

Equity in earnings of subsidiaries
119,084

 

 

 
(119,084
)
 

Net income (loss)
110,882

 
123,856

 
(3,990
)
 
(119,866
)
 
110,882

Other comprehensive income (loss), net of tax
9,974

 
3,838

 
6,143

 
(9,981
)
 
9,974

Comprehensive income (loss)
$
120,856

 
$
127,694

 
$
2,153

 
$
(129,847
)
 
$
120,856


 


Condensed Consolidating Financial Information
December 31, 2015
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheets
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
103,284

 
$
5,614

 
$
52,122

 
$

 
$
161,020

Accounts and notes receivable, net

 
507,673

 
89,895

 
(9,633
)
 
587,935

Merchandise inventories

 
883,232

 
59,930

 
(2,387
)
 
940,775

Other current assets
104

 
72,683

 
212,183

 

 
284,970

Total current assets
103,388

 
1,469,202

 
414,130

 
(12,020
)
 
1,974,700

Property and equipment, net

 
103,219

 
105,711

 

 
208,930

Goodwill, net

 
247,271

 
172,348

 

 
419,619

Intangible assets, net

 
13,731

 
81,519

 

 
95,250

Due from O&M and subsidiaries

 
518,473

 

 
(518,473
)
 

Advances to and investments in consolidated subsidiaries
1,967,176

 

 

 
(1,967,176
)
 

Other assets, net
4,064

 
57,409

 
17,868

 

 
79,341

Total assets
$
2,074,628

 
$
2,409,305

 
$
791,576

 
$
(2,497,669
)
 
$
2,777,840

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
662,909

 
$
56,073

 
$
(8,373
)
 
$
710,609

Accrued payroll and related liabilities

 
32,094

 
13,813

 

 
45,907

Other current liabilities
6,924

 
109,137

 
191,012

 

 
307,073

Total current liabilities
6,924

 
804,140

 
260,898

 
(8,373
)
 
1,063,589

Long-term debt, excluding current portion
548,046

 
4,527

 
19,986

 

 
572,559

Due to O&M and subsidiaries
527,068

 

 
70,089

 
(597,157
)
 

Intercompany debt

 
138,890

 

 
(138,890
)
 

Deferred income taxes

 
67,562

 
18,764

 

 
86,326

Other liabilities

 
57,573

 
5,203

 

 
62,776

Total liabilities
1,082,038

 
1,072,692

 
374,940

 
(744,420
)
 
1,785,250

Equity
 
 
 
 
 
 
 
 

Common stock
125,606

 

 

 

 
125,606

Paid-in capital
211,943

 
241,877

 
516,608

 
(758,485
)
 
211,943

Retained earnings (deficit)
706,866

 
1,104,787

 
(58,648
)
 
(1,046,139
)
 
706,866

Accumulated other comprehensive income (loss)
(51,825
)
 
(10,051
)
 
(41,324
)
 
51,375

 
(51,825
)
Total equity
992,590

 
1,336,613

 
416,636

 
(1,753,249
)
 
992,590

Total liabilities and equity
$
2,074,628

 
$
2,409,305

 
$
791,576

 
$
(2,497,669
)
 
$
2,777,840


 









Condensed Consolidating Financial Information
December 31, 2014
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Balance Sheets
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
22,013

 
$
3,912

 
$
30,847

 
$

 
$
56,772

Accounts and notes receivable, net

 
519,951

 
144,463

 
(38,222
)
 
626,192

Merchandise inventories

 
816,915

 
60,061

 
(4,519
)
 
872,457

Other current assets
(24,748
)
 
90,733

 
223,414

 
25,080

 
314,479

Total current assets
(2,735
)
 
1,431,511

 
458,785

 
(17,661
)
 
1,869,900

Property and equipment, net

 
110,076

 
122,903

 

 
232,979

Goodwill, net

 
247,271

 
176,005

 

 
423,276

Intangible assets, net

 
15,805

 
92,788

 

 
108,593

Due from O&M and subsidiaries

 
357,304

 

 
(357,304
)
 

Advances to and investments in consolidated subsidiaries
1,893,767

 

 

 
(1,893,767
)
 

Other assets, net
4,637

 
66,836

 
29,185

 

 
100,658

Total assets
$
1,895,669

 
$
2,228,803

 
$
879,666

 
$
(2,268,732
)
 
$
2,735,406

Liabilities and equity
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
567,285

 
$
54,898

 
$
(13,337
)
 
$
608,846

Accrued payroll and related liabilities

 
16,434

 
15,073

 

 
31,507

Other current liabilities
6,441

 
83,698

 
236,084

 

 
326,223

Total current liabilities
6,441

 
667,417

 
306,055

 
(13,337
)
 
966,576

Long-term debt, excluding current portion
547,763

 
39,915

 
20,873

 

 
608,551

Due to O&M and subsidiaries
350,627

 

 
77,788

 
(428,415
)
 

Intercompany debt

 
138,890

 

 
(138,890
)
 

Deferred income taxes

 
72,829

 
29,051

 

 
101,880

Other liabilities

 
55,794

 
11,767

 

 
67,561

Total liabilities
904,831

 
974,845

 
445,534

 
(580,642
)
 
1,744,568

Equity
 
 
 
 
 
 
 
 

Common stock
126,140

 

 

 

 
126,140

Paid-in capital
202,934

 
241,877

 
514,314

 
(756,191
)
 
202,934

Retained earnings (deficit)
685,765

 
1,022,379

 
(66,479
)
 
(955,900
)
 
685,765

Accumulated other comprehensive income (loss)
(24,001
)
 
(10,298
)
 
(13,703
)
 
24,001

 
(24,001
)
Total equity
990,838

 
1,253,958

 
434,132

 
(1,688,090
)
 
990,838

Total liabilities and equity
$
1,895,669

 
$
2,228,803

 
$
879,666

 
$
(2,268,732
)
 
$
2,735,406

Condensed Consolidating Financial Information
Year ended December 31, 2015
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Cash Flows
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
103,409

 
$
112,408

 
$
7,831

 
$
(120,239
)
 
$
103,409

Adjustments to reconcile net income to cash (used for) provided by operating activities:
 
 
 
 
 
 
 
 


Equity in earnings of subsidiaries
(122,258
)
 

 

 
122,258

 

Depreciation and amortization

 
34,497

 
31,485

 

 
65,982

Share-based compensation expense

 
11,306

 

 

 
11,306

Provision for losses on accounts and notes receivable

 
202

 
(226
)
 

 
(24
)
Deferred income tax (benefit) expense

 
(5,267
)
 
(834
)
 

 
(6,101
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 


Accounts and notes receivable

 
12,076

 
(27,274
)
 
33,531

 
18,333

Merchandise inventories

 
(66,317
)
 
(1,277
)
 
(2,133
)
 
(69,727
)
Accounts payable

 
95,624

 
13,418

 
4,969

 
114,011

Net change in other assets and liabilities
666

 
61,454

 
6,443

 
(38,386
)
 
30,177

Other, net
855

 
920

 
456

 

 
2,231

Cash provided by (used for) operating activities of continuing operations
(17,328
)
 
256,903


30,022




269,597

Investing activities:
 
 
 
 
 
 
 
 

Additions to computer software and intangible assets

 
(13,688
)
 
(2,397
)
 

 
(16,085
)
Additions to property and equipment

 
(3,621
)
 
(16,910
)
 

 
(20,531
)
Proceeds from sale of property and equipment

 
87

 
56

 

 
143

Cash used for investing activities of continuing operations

 
(17,222
)
 
(19,251
)
 

 
(36,473
)
Financing activities:
 
 
 
 
 
 
 
 

Proceeds from (repayment of) revolver

 
(33,700
)
 

 

 
(33,700
)
Change in intercompany advances
183,688

 
(201,851
)
 
18,163

 

 

Cash dividends paid
(63,651
)
 

 

 

 
(63,651
)
Repurchases of common stock
(20,000
)
 

 

 

 
(20,000
)
Excess tax benefits related to share-based compensation
646

 

 

 

 
646

Other, net
(2,084
)
 
(2,428
)
 
(3,016
)
 

 
(7,528
)
Cash provided by (used for) financing activities
98,599

 
(237,979
)
 
15,147

 

 
(124,233
)
Effect of exchange rates on cash and cash equivalents

 

 
(4,643
)
 

 
(4,643
)
Net increase (decrease) in cash and cash equivalents
81,271

 
1,702

 
21,275

 

 
104,248

Cash and cash equivalents at beginning of year
22,013

 
3,912

 
30,847

 

 
56,772

Cash and cash equivalents at end of year
$
103,284

 
$
5,614

 
$
52,122

 
$

 
$
161,020

Condensed Consolidating Financial Information
Year ended December 31, 2014
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Cash Flows
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
66,503

 
$
127,164

 
$
(27,725
)
 
$
(99,439
)
 
$
66,503

Adjustments to reconcile net income to cash provided by (used for) operating activities:
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
(96,384
)
 

 

 
96,384

 

Depreciation and amortization
2

 
35,879

 
27,526

 

 
63,407

Loss on early retirement of debt
14,890

 

 

 

 
14,890

Share-based compensation expense

 
8,369

 
(162
)
 

 
8,207

Provision for losses on accounts and notes receivable

 
(36
)
 
484

 

 
448

Deferred income tax (benefit) expense

 
1,292

 
(4,677
)
 

 
(3,385
)
Changes in operating assets and liabilities:

 
 
 
 
 

 

Accounts and notes receivable

 
(24,440
)
 
6,185

 
452

 
(17,803
)
Merchandise inventories

 
(65,916
)
 
8,308

 
279

 
(57,329
)
Accounts payable

 
(28,580
)
 
(24,613
)
 
1,045

 
(52,148
)
Net change in other assets and liabilities
(455
)
 
(12,341
)
 
(14,311
)
 
1,279

 
(25,828
)
Other, net
(1,161
)
 
(9
)
 
447

 

 
(723
)
Cash provided by (used for) operating activities
(16,605
)
 
41,382



(28,538
)
 

 
(3,761
)
Investing activities:


 


 


 


 


Acquisitions, net of cash acquired

 

 
(248,536
)
 

 
(248,536
)
Additions to computer software and intangible assets

 
(18,054
)
 
(4,330
)
 

 
(22,384
)
Additions to property and equipment

 
(34,475
)
 
(13,949
)
 

 
(48,424
)
Proceeds from the sale of investments

 
1,937

 

 
 
 
1,937

Proceeds from sale of property and equipment

 
156

 

 

 
156

Cash used for investing activities of continuing operations

 
(50,436
)
 
(266,815
)
 

 
(317,251
)
Financing activities:
 
 

 

 
 
 

Proceeds from issuance of debt
547,693

 

 

 

 
547,693

Proceeds from revolver

 
33,700

 

 

 
33,700

Repayment of debt
(217,352
)
 

 

 

 
(217,352
)
Change in intercompany advances
(287,275
)
 
(21,106
)
 
308,381

 

 

Cash dividends paid
(63,104
)
 

 

 

 
(63,104
)
Repurchases of common stock
(9,934
)
 

 

 

 
(9,934
)
Financing costs paid
(4,780
)
 
(611
)


 

 
(5,391
)
Excess tax benefits related to share-based compensation
582

 

 

 

 
582

Proceeds from exercise of stock options
1,180

 

 

 

 
1,180

Purchase of noncontrolling interest

 

 
(1,500
)
 

 
(1,500
)
Other, net
(2,783
)
 
(1,029
)
 
(3,502
)
 

 
(7,314
)
Cash provided by (used for) financing activities
(35,773
)
 
10,954

 
303,379

 

 
278,560

Effect of exchange rate changes on cash and cash equivalents

 

 
(2,681
)
 

 
(2,681
)
Net increase (decrease) in cash and cash equivalents
(52,378
)
 
1,900

 
5,345

 

 
(45,133
)
Cash and cash equivalents at beginning of year
74,391

 
2,012

 
25,502

 

 
101,905

Cash and cash equivalents at end of year
$
22,013

 
$
3,912

 
$
30,847

 
$

 
$
56,772

Condensed Consolidating Financial Information
Year ended December 31, 2013
Owens &
Minor, Inc.
 
Guarantor
Subsidiaries
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Statements of Cash Flows
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
110,882

 
$
123,856

 
$
(3,990
)
 
$
(119,866
)
 
$
110,882

Adjustments to reconcile net income to cash provided by (used for) operating activities:
 
 
 
 
 
 
 
 
 
Equity in earnings of subsidiaries
(119,084
)
 

 

 
119,084

 

Depreciation and amortization
14

 
35,712

 
14,860

 

 
50,586

Share-based compensation expense

 
6,381

 

 

 
6,381

Provision for losses on accounts and notes receivable

 
278

 
509

 

 
787

Deferred income tax (benefit) expense

 
5,821

 
(2,108
)
 

 
3,713

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 

Accounts and notes receivable

 
(22,055
)
 
(16,522
)
 
(68
)
 
(38,645
)
Merchandise inventories

 
(170
)
 
(7,676
)
 
782

 
(7,064
)
Accounts payable
(45,300
)
 
77,320

 
15,286

 
68

 
47,374

Net change in other assets and liabilities
1,774

 
(12,068
)
 
(22,043
)
 

 
(32,337
)
Other, net
(1,541
)
 
515

 
(97
)
 

 
(1,123
)
Cash provided by (used for) operating activities
(53,255
)
 
215,590


(21,781
)
 

 
140,554

Investing activities:
 
 
 
 
 
 
 
 
 
Additions to computer software and intangible assets

 
(21,773
)
 
(10,237
)
 

 
(32,010
)
Additions to property and equipment

 
(21,029
)
 
(7,090
)
 

 
(28,119
)
Proceeds from sale of property and equipment

 
2,746

 
305

 

 
3,051

Cash used for investing activities

 
(40,056
)
 
(17,022
)
 

 
(57,078
)
Financing activities:


 


 


 


 


Change in intercompany advances
145,354

 
(184,092
)
 
38,738

 

 

Cash dividends paid
(60,731
)
 

 

 

 
(60,731
)
Repurchases of common stock
(18,876
)
 

 

 

 
(18,876
)
Proceeds from exercise of stock options
5,352

 

 

 

 
5,352

Excess tax benefits related to share-based compensation
898

 

 

 

 
898

Other, net
(2,541
)
 
(3,071
)
 
(3,011
)
 

 
(8,623
)
Cash provided by (used for) financing activities
69,456

 
(187,163
)
 
35,727

 

 
(81,980
)
Effect of exchange rate changes on cash and cash equivalents

 

 
2,521

 

 
2,521

Net increase (decrease) in cash and cash equivalents
16,201

 
(11,629
)
 
(555
)
 

 
4,017

Cash and cash equivalents at beginning of year
58,190

 
13,641

 
26,057

 

 
97,888

Cash and cash equivalents at end of year
$
74,391

 
$
2,012

 
$
25,502

 
$

 
$
101,905