Condensed Consolidating Financial Information

9 Months Ended

Dec. 28, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION

The 2012 Notes of the Company (the “Parent”) are fully and unconditionally guaranteed on a joint and several senior unsecured basis by certain of its domestic subsidiaries (the “Guarantor Subsidiaries”). The guarantees made by the Guarantor Subsidiaries will rank senior in right of payment to all of their existing and future obligations expressly subordinated or junior in right of payment to the notes, equal with all of their existing and future unsecured unsubordinated obligations, and will be effectively subordinated to any of their existing and future secured obligations to the extent of the value of the assets securing such obligations.

The following tables present the condensed consolidating financial information of the Parent, the Guarantor Subsidiaries, and the subsidiaries that are not guarantors (the “Non-Guarantor Subsidiaries”) as of December 28, 2012and March 30, 2012and for the years ended December 28, 2012andDecember 30, 2011.

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 28, 2012

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current Assets:
	Cash and cash equivalents		$	150,045	$	25,217	$	40,872	$	-	$	216,134
	Accounts receivable, net			137,502		66,684		-		-		204,186
	Inventories			129,811		47,465		206		-		177,482
	Intercompany receivable (payable)			367,765		(352,030)		(2,355)		(13,380)		-
	Prepaid expenses and other current assets			54,227		4,905		342		-		59,474
	Assets held for sale			-		252,986		2,183		(2,749)		252,420
		Total current assets		839,350		45,227		41,248		(16,129)		909,696
Property and equipment, net				41,784		40,564		72		-		82,420
Other Assets:
	Goodwill			34,824		108,652		-		-		143,476
	Intangibles, net			10,242		42,028		-		-		52,270
	Investment in subsidiaries			161,501		37,719		-		(199,220)		-
	Other assets			102,075		16,844		35		-		118,954
		Total assets	$	1,189,776	$	291,034	$	41,355	$	(215,349)	$	1,306,816
LIABILITIES AND EQUITY
Current Liabilities:
	Accounts payable		$	117,534	$	29,257	$	588	$	-	$	147,379
	Accrued expenses			36,827		19,024		41		-		55,892
	Current portion of long-term debt			212,387		-		-		-		212,387
	Other current liabilities			29,268		10,652		(78)		-		39,842
	Liabilities held for sale			-		41,956		3,152		(4,592)		40,516
		Total current liabilities		396,016		100,889		3,703		(4,592)		496,016
Revolving line of credit and long-term debt, excluding current portion				250,000		-		-		-		250,000
Other noncurrent liabilities				92,392		17,039		-		-		109,431
		Total liabilities		738,408		117,928		3,703		(4,592)		855,447
Equity:
	PSS World Medical Inc. shareholders' equity:
		Total PSS World Medical, Inc. shareholders' equity		451,368		173,106		37,652		(213,852)		448,274
	Noncontrolling interest			-		-		-		3,095		3,095
		Total equity		451,368		173,106		37,652		(210,757)		451,369
		Total liabilities and equity	$	1,189,776	$	291,034	$	41,355	$	(215,349)	$	1,306,816

• Intercompany payables and receivables have been reclassified to their net presentation in the respective columns.

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET

MARCH 30, 2012

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Current Assets:
	Cash and cash equivalents		$	117,448	$	13,529	$	32,175	$	-	$	163,152
	Accounts receivable, net			137,214		22,591		29,737		-		189,542
	Inventories			113,635		33,310		253		-		147,198
	Intercompany receivable (payable)			290,404		(253,925)		(37,043)		564		-
	Prepaid expenses and other current assets			39,483		4,590		113		-		44,186
	Assets held for sale			26,975		250,522		2,526		(2,645)		277,378
		Total current assets		725,159		70,617		27,761		(2,081)		821,456
Property and equipment, net				39,854		40,189		108		-		80,151
Other Assets:
	Goodwill			31,319		78,138		-		-		109,457
	Intangibles, net			10,435		23,111		-		-		33,546
	Investment in subsidiaries			184,218		23,942		-		(208,160)		-
	Other assets			95,951		15,373		36		-		111,360
		Total assets	$	1,086,936	$	251,370	$	27,905	$	(210,241)	$	1,155,970
LIABILITIES AND EQUITY
Current Liabilities:
	Accounts payable		$	122,254	$	(4,121)	$	586	$	-	$	118,719
	Accrued expenses			20,211		17,176		49		-		37,436
	Other current liabilities			2,667		5,348		-		-		8,015
	Liabilities held for sale			4,025		36,456		3,095		(5,936)		37,640
		Total current liabilities		149,157		54,859		3,730		(5,936)		201,810
Revolving line of credit and long-term debt, excluding current portion				454,916		-		-		-		454,916
Other noncurrent liabilities				92,052		16,381		-		-		108,433
		Total liabilities		696,125		71,240		3,730		(5,936)		765,159
Equity:
	PSS World Medical Inc. shareholders' equity:
		Total PSS World Medical, Inc. shareholders' equity		390,811		179,536		24,175		(207,394)		387,128
	Noncontrolling interest			-		594		-		3,089		3,683
		Total equity		390,811		180,130		24,175		(204,305)		390,811
		Total liabilities and equity	$	1,086,936	$	251,370	$	27,905	$	(210,241)	$	1,155,970

• Intercompany payables and receivables have been reclassified to their net presentation in the respective columns.

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHSENDED DECEMBER 28, 2012

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales			$	309,264	$	122,903	$	27,295	$	(25,550)	$	433,912
Cost of goods sold				216,844		70,265		21,524		(20,133)		288,500
		Gross profit		92,420		52,638		5,771		(5,417)		145,412
General and administrative expenses				57,262		25,468		1,128		-		83,858
Selling expenses				27,815		9,732		-		-		37,547
Equity earnings of subsidiaries				9,947		4,689		-		(14,636)		-
		Income from operations		17,290		22,127		4,643		(20,053)		24,007
Other income (expense):
	Interest expense			(8,770)		(8)		-		-		(8,778)
	Interest income			364		(348)		-		-		16
	Other income, net			249		167		(1)		-		415
		Other expense, net		(8,157)		(189)		(1)		-		(8,347)
Income from continuing operations before provision for income taxes				9,133		21,938		4,642		(20,053)		15,660
(Benefit) provision for income taxes				(8,629)		13,755		-		-		5,126
Income from continuing operations				17,762		8,183		4,642		(20,053)		10,534
Income from discontinued operations, net of taxes				26,297		1,764		47		5		28,113
Net income (loss)				44,059		9,947		4,689		(20,048)		38,647
Net (loss) income attributable to noncontrolling interest				-		(120)		-		47		(73)
Net income (loss) attributable to PSS World Medical, Inc.			$	44,059	$	10,067	$	4,689	$	(20,095)	$	38,720

• Subsequent to December 28, 2012, the Company acquired a company that it intends to include as a Guarantor Subsidiary in future reporting periods.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE THREE MONTHSENDED DECEMBER 30, 2011

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales			$	293,712	$	98,046	$	2,445	$	-	$	394,203
Cost of goods sold				208,739		53,043		1,340		-		263,122
		Gross profit		84,973		45,003		1,105		-		131,081
General and administrative expenses				48,723		20,815		898		-		70,436
Selling expenses				25,219		7,488		-		-		32,707
Equity earnings of subsidiaries				6,674		243		-		(6,917)		-
		Income from operations		17,705		16,943		207		(6,917)		27,938
Other income (expense):
	Interest expense			(4,723)		(61)		-		-		(4,784)
	Interest income			359		(344)		-		-		15
	Other income, net			435		161		-		-		596
		Other expense, net		(3,929)		(244)		-		-		(4,173)
Income from continuing operations before provision for income taxes				13,776		16,699		207		(6,917)		23,765
(Benefit) provision for income taxes				(5,170)		13,113		-		-		7,943
Income from continuing operations				18,946		3,586		207		(6,917)		15,822
Income from discontinued operations, net of taxes				1,179		3,087		36		5		4,307
Net income (loss)				20,125		6,673		243		(6,912)		20,129
Net income (loss) attributable to noncontrolling interest				-		33		-		(36)		(3)
Net income (loss) attributable to PSS World Medical, Inc.			$	20,125	$	6,640	$	243	$	(6,876)	$	20,132

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE NINE MONTHSENDED DECEMBER 28, 2012

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales			$	905,918	$	343,483	$	80,770	$	(66,072)	$	1,264,099
Cost of goods sold				638,060		188,980		63,846		(50,664)		840,222
		Gross profit		267,858		154,503		16,924		(15,408)		423,877
General and administrative expenses				162,595		75,813		3,402		-		241,810
Selling expenses				81,526		28,309		-		-		109,835
Equity earnings of subsidiaries				26,399		13,551		-		(39,950)		-
		Income from operations		50,136		63,932		13,522		(55,358)		72,232
Other income (expense):
	Interest expense			(25,794)		(26)		-		-		(25,820)
	Interest income			1,069		(1,027)		1		-		43
	Other income, net			627		514		(3)		-		1,138
		Other expense, net		(24,098)		(539)		(2)		-		(24,639)
Income from continuing operations before provision for income taxes				26,038		63,393		13,520		(55,358)		47,593
(Benefit) provision for income taxes				(25,328)		40,748		-		-		15,420
Income from continuing operations				51,366		22,645		13,520		(55,358)		32,173
Income from discontinued operations, net of taxes				28,604		3,754		31		15		32,404
Net income (loss)				79,970		26,399		13,551		(55,343)		64,577
Net (loss) income attributable to noncontrolling interest				-		(164)		-		7		(157)
Net income (loss) attributable to PSS World Medical, Inc.			$	79,970	$	26,563	$	13,551	$	(55,350)	$	64,734

• Subsequent to December 28, 2012, the Company acquired a company that it intends to include as a Guarantor Subsidiary in future reporting periods.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE NINE MONTHSENDED DECEMBER 30, 2011

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net sales			$	873,574	$	284,024	$	8,806	$	-	$	1,166,404
Cost of goods sold				622,570		157,581		2,572		-		782,723
		Gross profit		251,004		126,443		6,234		-		383,681
General and administrative expenses				146,981		60,260		2,805		-		210,046
Selling expenses				74,186		21,500		-		-		95,686
Equity earnings of subsidiaries				17,868		3,591		-		(21,459)		-
		Income from operations		47,705		48,274		3,429		(21,459)		77,949
Other income (expense):
	Interest expense			(13,530)		(334)		-		-		(13,864)
	Interest income			1,026		(967)		-		-		59
	Other income, net			1,043		533		(12)		-		1,564
		Other expense, net		(11,461)		(768)		(12)		-		(12,241)
Income from continuing operations before provision for income taxes				36,244		47,506		3,417		(21,459)		65,708
(Benefit) provision for income taxes				(14,886)		38,268		-		-		23,382
Income from continuing operations				51,130		9,238		3,417		(21,459)		42,326
Income from discontinued operations, net of taxes				3,256		8,630		174		15		12,075
Net income (loss)				54,386		17,868		3,591		(21,444)		54,401
Net income (loss) attributable to noncontrolling interest				-		90		-		(42)		48
Net income (loss) attributable to PSS World Medical, Inc.			$	54,386	$	17,778	$	3,591	$	(21,402)	$	54,353

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHSENDED DECEMBER 28, 2012

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash Flows From Operating Activities:
		Net cash (used in) provided by operating activities	$	(46,835)	$	124,125	$	9,118	$	78	$	86,486
Cash Flows From Investing Activities:
	Payments for business combinations, net of cash acquired			(5,620)		(67,438)		(500)		-		(73,558)
	Capital expenditures			(6,373)		(10,088)		(1)		-		(16,462)
	Proceeds from sale of discontinued operations			66,533		-		-		-		66,533
	Other			7		(175)		-		-		(168)
	Net cash (used in) provided by investing activities, discontinued operations			(300)		(1,513)		1		-		(1,812)
		Net cash provided by (used in) investing activities		54,247		(79,214)		(500)		-		(25,467)
Cash Flows From Financing Activities:
	Purchase and retirement of common stock			(7,803)		-		-		-		(7,803)
	Excess tax benefits from stock-based compensation arrangements			390		-		-		-		390
	Payment for debt issuance costs			(685)		-		-		-		(685)
	Proceeds from exercise of stock options			61		-		-		-		61
	Intercompany dividend			33,222		(33,223)		1		-		-
	Net cash provided by financing activities, discontinued operations			-		-		78		(78)		-
		Net cash provided by (used in) financing activities		25,185		(33,223)		79		(78)		(8,037)
	Net increase in cash and cash equivalents			32,597		11,688		8,697		-		52,982
	Cash and cash equivalents, beginning of period			117,448		13,529		32,175		-		163,152
	Cash and cash equivalents, end of period		$	150,045	$	25,217	$	40,872	$	-	$	216,134

• Subsequent to December 28, 2012, the Company acquired a company that it intends to include as a Guarantor Subsidiary in future reporting periods.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHSENDED DECEMBER 30, 2011

(Dollars in Thousands)

			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash Flows From Operating Activities:
		Net cash (used in) provided by operating activities	$	(36,856)	$	99,912	$	2,913	$	-	$	65,969
Cash Flows From Investing Activities:
	Payments for business combinations, net of cash acquired			(524)		(16,270)		-		-		(16,794)
	Capital expenditures			(2,224)		(13,393)		(5)		-		(15,622)
	Other			(189)		-		-		-		(189)
	Net cash used in investing activities, discontinued operations			(22)		(24,788)		(17)		-		(24,827)
		Net cash used in investing activities		(2,959)		(54,451)		(22)		-		(57,432)
Cash Flows From Financing Activities:
	Purchase and retirement of common stock			(115,760)		-		-		-		(115,760)
	Excess tax benefits from stock-based compensation arrangements			1,443		-		-		-		1,443
	Proceeds from exercise of stock options			555		-		-		-		555
	Proceeds from borrowings on the revolving line of credit			325,783		-		-		-		325,783
	Repayments on the revolving line of credit			(209,533)		-		-		-		(209,533)
	Payment of contingent consideration on business acquisitions			-		(4,000)		-		-		(4,000)
	Payment for debt issuance costs			(1,835)		-		-		-		(1,835)
	Payments under capital lease obligations			(33)		(514)		-		-		(547)
	Intercompany dividend			29,234		(29,234)		-		-		-
	Other			(1,523)		-		-		-		(1,523)
	Net cash used in financing activities, discontinued operations			-		(30)		-		-		(30)
		Net cash provided (used in) by financing activities		28,331		(33,778)		-		-		(5,447)
	Net (decrease) increase in cash and cash equivalents			(11,484)		11,683		2,891		-		3,090
	Cash and cash equivalents, beginning of period			13,901		3,568		11,879		-		29,348
	Cash and cash equivalents, end of period		$	2,417	$	15,251	$	14,770	$	-	$	32,438