Express Scripts Holding Co.

CIK:0001532063|SEC Filings

Unaudited Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenues	$ 25,563.2	$ 24,683.4	$ 75,974.4	$ 74,685.8
Cost of revenues	23,211.8	22,445.7	69,539.4	68,414.2
Gross profit	2,351.4	2,237.7	6,435.0	6,271.6
Selling, general and administrative	862.8	759.3	2,672.6	2,360.0
Operating income	1,488.6	1,478.4	3,762.4	3,911.6
Other (expense) income:
Interest income and other	13.0	13.6	33.8	28.7
Interest expense and other	(151.0)	(147.7)	(456.3)	(439.9)
Other (expense) income, net	(138.0)	(134.1)	(422.5)	(411.2)
Income before income taxes	1,350.6	1,344.3	3,339.9	3,500.4
Provision for income taxes	276.8	499.3	760.8	1,299.6
Net income	1,073.8	845.0	2,579.1	2,200.8
Less: Net income attributable to non-controlling interest	2.2	3.3	7.0	11.0
Net income attributable to Express Scripts	$ 1,071.6	$ 841.7	$ 2,572.1	$ 2,189.8
Weighted average number of common shares outstanding during the period:
Basic (shares)	562.9	571.8	562.5	585.1
Diluted (shares)	567.9	574.7	566.8	588.4
Basic earnings per share:
Earnings attributable to Express Scripts (usd per share)	$ 1.90	$ 1.47	$ 4.57	$ 3.74
Diluted earnings per share:
Earnings attributable to Express Scripts (usd per share)	$ 1.89	$ 1.46	$ 4.54	$ 3.72

Unaudited Consolidated Statement of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 2,579.1	$ 2,200.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,500.2	1,344.2
Deferred income taxes	(207.3)	(247.5)
Employee stock-based compensation expense	89.7	78.0
Other, net	20.7	24.2
Changes in operating assets and liabilities, net of effects of acquisition:
Receivables	(792.5)	161.2
Inventories	(44.1)	(93.8)
Other current and noncurrent assets	(187.1)	(88.8)
Claims and rebates payable	(0.4)	642.6
Accounts payable	680.1	475.4
Accrued expenses	(750.9)	(659.3)
Other noncurrent liabilities	100.8	144.5
Net cash flows provided by operating activities	2,988.3	3,981.5
Cash flows from investing activities:
Capital expenditures for property and equipment and computer software	(241.3)	(177.3)
Acquisitions, net of cash acquired	(26.4)	(122.7)
Other, net	(28.3)	(11.3)
Net cash used in investing activities	(296.0)	(311.3)
Cash flows from financing activities:
Repayment of long-term debt	(831.4)	(650.0)
Treasury stock acquired	(420.7)	(2,735.7)
Net proceeds from employee stock plans	198.9	51.3
Commercial paper repayments, net	(195.0)	0.0
Other, net	(43.4)	(22.5)
Net cash used in financing activities	(1,291.6)	(3,356.9)
Effect of foreign currency translation adjustment	(4.6)	5.4
Net increase in cash and cash equivalents	1,396.1	318.7
Cash and cash equivalents at beginning of period	2,309.6	3,077.2
Cash and cash equivalents at end of period	$ 3,705.7	$ 3,395.9

Unaudited Consolidated Balance Sheet - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,705.7	$ 2,309.6
Receivables, net	7,824.1	7,056.3
Inventories	2,168.9	2,124.9
Prepaid expenses and other current assets	653.5	466.3
Total current assets	14,352.2	11,957.1
Property and equipment, net	490.9	551.3
Computer software, net	827.5	814.9
Goodwill	31,110.5	31,099.7
Other intangible assets, net	8,425.5	9,625.9
Other assets	235.0	206.9
Total assets	55,441.6	54,255.8
Current liabilities:
Claims and rebates payable	10,190.2	10,188.5
Accounts payable	4,412.9	3,755.7
Accrued expenses	2,067.0	2,869.3
Short-term debt and current maturities of long-term debt	2,021.3	1,032.9
Total current liabilities	18,691.4	17,846.4
Long-term debt	12,974.2	14,981.5
Deferred taxes	2,347.8	2,562.4
Other liabilities	855.4	740.2
Total liabilities	34,868.8	36,130.5
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, 15.0 shares authorized, $0.01 par value per share; no shares issued and outstanding	0.0	0.0
Common stock, 2,985.0 shares authorized, $0.01 par value; shares issued: 866.9 and 862.3, respectively; shares outstanding: 563.6 and 564.4, respectively	8.7	8.6
Additional paid-in capital	23,826.8	23,537.8
Accumulated other comprehensive loss	(6.5)	(2.9)
Retained earnings	18,890.7	16,318.6
Total Express Scripts stockholders' equity before treasury stock and non-controlling interest	42,719.7	39,862.1
Common stock in treasury at cost, 303.3 and 297.9 shares, respectively	(22,153.8)	(21,742.5)
Total Express Scripts stockholders' equity	20,565.9	18,119.6
Non-controlling interest	6.9	5.7
Total stockholders' equity	20,572.8	18,125.3
Total liabilities and stockholders' equity	$ 55,441.6	$ 54,255.8