Express Scripts Holding Co. | 2013 | FY | 3

15. Condensed consolidating financial information
The senior notes issued by the Company, ESI and Medco are jointly and severally and fully and unconditionally (subject to certain customary release provisions, including sale, exchange, transfer or liquidation of the guarantor subsidiary) guaranteed by certain of our 100% owned domestic subsidiaries, other than certain regulated subsidiaries, and, with respect to notes issued by ESI and Medco, by us. The following condensed consolidating financial information has been prepared in accordance with the requirements for presentation of such information. The condensed consolidating financial information presented below is not indicative of what the financial position, results of operations or cash flows would have been had each of the entities operated as an independent company during the period for various reasons, including, but not limited to, intercompany transactions and integration of systems.
In December 2012 we sold both our Liberty and EAV subsidiaries. In addition, during the fourth quarter of 2012, we determined that our European operations and portions of UBC met the criteria of discontinued operations. In June 2013 we sold the portion of our UBC business which primarily provided technology solutions and publications to biopharmaceutical companies, and in the third quarter of 2013 we sold the remaining portions of our UBC business that were classified as discontinued. In the fourth quarter of 2013, we sold our acute infusion therapies line of business. Consequently, the operations of EAV, our European operations, the portions of UBC operations that were sold, and our acute infusion therapies line of business are included as discontinued operations of the non-guarantors as of and for the year ended December 31, 2013 (through their respective dates of sale, as applicable), and as of December 31, 2012. Results for the year ended December 31, 2012 include the operations of Liberty, EAV, our European operations, UBC and our acute infusion therapies line of business subsequent to the date of the Merger, April 2, 2012 (revised to reflect the operations as discontinued operations as applicable). The following presentation reflects the structure that exists as of the most recent balance sheet date and also includes certain retrospective revisions to conform prior periods to current period presentation (discussed and presented in further detail below). The condensed consolidating financial information is presented separately for:
(i)
Express Scripts (the Parent Company), the issuer of certain guaranteed obligations;
(ii)
ESI, guarantor, the issuer of additional guaranteed obligations;
(iii)
Medco, guarantor, the issuer of additional guaranteed obligations;
(iv)
Guarantor subsidiaries, on a combined basis (but excluding ESI and Medco), as specified in the indentures related to Express Scripts’, ESI’s and Medco’s obligations under the notes;
(v)
Non-guarantor subsidiaries, on a combined basis;
(vi)
Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Express Scripts, ESI, Medco, the guarantor subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in our subsidiaries and (c) record consolidating entries; and
(vii)
Express Scripts and subsidiaries on a consolidated basis.
Certain amounts from prior periods have been revised to conform to current period presentation:
(i)
With respect to the condensed consolidating balance sheet as of December 31, 2012, amounts related to the goodwill allocated to Medco Health Solutions, Inc. and certain of its guarantor and non-guarantor subsidiaries have changed as we finalized the purchase price allocation in the first quarter of 2013. The impact of the measurement period adjustment is to reallocate goodwill and intercompany amounts as follows:
(in millions)
Medco Health Solutions, Inc.
 
Guarantors
 
Non-guarantors
 
Eliminations
Intercompany assets
$
(2,040.0
)
 
$
2,000.5

 
$
—

 
$
39.5

Goodwill
$
2,040.0

 
$
(2,000.5
)
 
$
39.5

 
$
—

Intercompany liabilities
$
—

 
$
—

 
$
(39.5
)
 
$
39.5




Condensed Consolidating Balance Sheet
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
1,145.9

 
$
3.6

 
$
44.0

 
$
797.9

 
$
—

 
$
1,991.4

Restricted cash and investments
—

 
—

 
1.0

 
—

 
21.8

 
—

 
22.8

Receivables, net
—

 
1,381.3

 
750.5

 
1,557.1

 
334.0

 
—

 
4,022.9

Other current assets
—

 
99.8

 
286.4

 
2,010.4

 
26.7

 
—

 
2,423.3

Current assets of discontinued operations
—

 
—

 
—

 
—

 
31.0

 
—

 
31.0

Total current assets
—

 
2,627.0

 
1,041.5

 
3,611.5

 
1,211.4

 
—

 
8,491.4

Property and equipment, net
—

 
550.3

 
5.4

 
1,082.7

 
20.5

 
—

 
1,658.9

Investments in subsidiaries
36,060.9

 
9,096.2

 
12,089.8

 
—

 
—

 
(57,246.9
)
 
—

Intercompany
—

 
—

 
—

 
14,247.9

 
—

 
(14,247.9
)
 
—

Goodwill
—

 
2,921.4

 
22,608.1

 
3,750.3

 
25.6

 
—

 
29,305.4

Other intangible assets, net
51.7

 
1,071.7

 
10,946.8

 
1,926.0

 
19.4

 
—

 
14,015.6

Other assets
—

 
79.9

 
16.5

 
3.9

 
12.2

 
(35.6
)
 
76.9

Total assets
$
36,112.6

 
$
16,346.5

 
$
46,708.1

 
$
24,622.3

 
$
1,289.1

 
$
(71,530.4
)
 
$
53,548.2

Claims and rebates payable
$
—

 
$
3,866.2

 
$
2,901.6

 
$
—

 
$
—

 
$
—

 
$
6,767.8

Accounts payable
—

 
875.1

 
62.7

 
1,834.9

 
127.3

 
—

 
2,900.0

Accrued expenses
45.3

 
455.9

 
241.0

 
615.5

 
624.5

 
—

 
1,982.2

Current maturities of long-term debt
1,583.9

 
0.1

 
—

 
—

 
—

 
—

 
1,584.0

Current liabilities of discontinued operations
—

 
—

 
—

 
—

 
1.3

 
—

 
1.3

Total current liabilities
1,629.2

 
5,197.3

 
3,205.3

 
2,450.4

 
753.1

 
—

 
13,235.3

Long-term debt
7,975.9

 
1,994.9

 
2,392.2

 
—

 
—

 
—

 
12,363.0

Intercompany
4,670.1

 
6,328.1

 
3,222.2

 
—

 
27.5

 
(14,247.9
)
 
—

Deferred taxes
—

 
—

 
4,034.7

 
1,386.4

 
19.5

 
—

 
5,440.6

Other liabilities
—

 
199.1

 
419.9

 
79.0

 
2.0

 
(35.6
)
 
664.4

Noncurrent liabilities of discontinued operations
—

 
—

 
—

 
—

 
0.1

 
—

 
0.1

Non-controlling interest
—

 
—

 
—

 
—

 
7.4

 
—

 
7.4

Express Scripts stockholders’ equity
21,837.4

 
2,627.1

 
33,433.8

 
20,706.5

 
479.5

 
(57,246.9
)
 
21,837.4

Total liabilities and stockholders’ equity
$
36,112.6

 
$
16,346.5

 
$
46,708.1

 
$
24,622.3

 
$
1,289.1

 
$
(71,530.4
)
 
$
53,548.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
As of December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
2,346.6

 
$
—

 
$
126.9

 
$
319.6

 
$
—

 
$
2,793.1

Restricted cash and investments
—

 
—

 
—

 
1.0

 
18.6

 
—

 
19.6

Receivables, net
—

 
1,097.8

 
2,330.0

 
1,493.0

 
505.0

 
—

 
5,425.8

Other current assets
—

 
119.2

 
306.6

 
1,800.4

 
20.8

 
—

 
2,247.0

Current assets of discontinued operations
—

 
—

 
—

 
—

 
271.4

 
—

 
271.4

Total current assets
—

 
3,563.6

 
2,636.6

 
3,421.3

 
1,135.4

 
—

 
10,756.9

Property and equipment, net
—

 
305.7

 
—

 
1,307.2

 
19.2

 
—

 
1,632.1

Investments in subsidiaries
31,375.6

 
8,292.7

 
5,121.0

 
—

 
—

 
(44,789.3
)
 
—

Intercompany
2,189.0

 
—

 
926.8

 
6,127.2

 
—

 
(9,243.0
)
 
—

Goodwill
—

 
2,921.4

 
22,621.5

 
3,750.3

 
27.2

 
—

 
29,320.4

Other intangible assets, net
67.1

 
1,192.4

 
12,609.4

 
2,153.6

 
15.4

 
—

 
16,037.9

Other assets
—

 
57.4

 
14.4

 
5.9

 
4.7

 
(26.3
)
 
56.1

Noncurrent assets of discontinued operations
—

 
—

 
—

 
—

 
307.8

 
—

 
307.8

Total assets
$
33,631.7

 
$
16,333.2

 
$
43,929.7

 
$
16,765.5

 
$
1,509.7

 
$
(54,058.6
)
 
$
58,111.2

Claims and rebates payable
$
—

 
$
2,554.1

 
$
4,885.9

 
$
—

 
$
—

 
$
—

 
$
7,440.0

Accounts payable
—

 
477.5

 
—

 
2,284.5

 
136.9

 
—

 
2,898.9

Accrued expenses
62.9

 
428.3

 
327.8

 
612.0

 
201.9

 
—

 
1,632.9

Current maturities of long-term debt
631.6

 
0.1

 
303.2

 
—

 
—

 
—

 
934.9

Current liabilities of discontinued operations
—

 
—

 
—

 
—

 
150.7

 
—

 
150.7

Total current liabilities
694.5

 
3,460.0

 
5,516.9

 
2,896.5

 
489.5

 
—

 
13,057.4

Long-term debt
9,552.2

 
2,992.1

 
2,435.8

 
—

 
—

 
—

 
14,980.1

Intercompany
—

 
8,764.5

 
—

 
—

 
478.5

 
(9,243.0
)
 
—

Deferred taxes
—

 
—

 
5,074.7

 
861.8

 
—

 
—

 
5,936.5

Other liabilities
—

 
158.7

 
484.6

 
73.1

 
2.8

 
(26.3
)
 
692.9

Noncurrent liabilities of discontinued operations
—

 
—

 
—

 
—

 
48.6

 
—

 
48.6

Non-controlling interest
—

 
—

 
—

 
—

 
10.7

 
—

 
10.7

Express Scripts stockholders’ equity
23,385.0

 
957.9

 
30,417.7

 
12,934.1

 
479.6

 
(44,789.3
)
 
23,385.0

Total liabilities and stockholders’ equity
$
33,631.7

 
$
16,333.2

 
$
43,929.7

 
$
16,765.5

 
$
1,509.7

 
$
(54,058.6
)
 
$
58,111.2



Condensed Consolidating Statement of Operations
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
For the year ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
29,927.9

 
$
52,736.8

 
$
23,273.8

 
$
1,517.7

 
$
(3,357.4
)
 
$
104,098.8

Operating expenses
—

 
28,380.5

 
52,498.3

 
21,988.0

 
1,037.7

 
(3,357.4
)
 
100,547.1

Operating income
—

 
1,547.4

 
238.5

 
1,285.8

 
480.0

 
—

 
3,551.7

Other (expense) income, net
(343.9
)
 
(148.8
)
 
(23.5
)
 
5.4

 
(10.6
)
 
—

 
(521.4
)
Income (loss) before income taxes
(343.9
)
 
1,398.6

 
215.0

 
1,291.2

 
469.4

 
—

 
3,030.3

Provision (benefit) for income taxes
(124.8
)
 
533.0

 
93.3

 
470.6

 
131.9

 
—

 
1,104.0

Net income (loss) from continuing operations
(219.1
)
 
865.6

 
121.7

 
820.6

 
337.5

 
—

 
1,926.3

Net loss from discontinued operations, net of tax
—

 
—

 
—

 
—

 
(53.6
)
 
—

 
(53.6
)
Equity in earnings of subsidiaries
2,063.7

 
803.5

 
272.9

 
—

 
—

 
(3,140.1
)
 
—

Net income
$
1,844.6

 
$
1,669.1

 
$
394.6

 
$
820.6

 
$
283.9

 
$
(3,140.1
)
 
$
1,872.7

Less: Net income attributable to non-controlling interest
—

 
—

 
—

 
—

 
28.1

 
—

 
28.1

Net income attributable to Express Scripts
1,844.6

 
1,669.1

 
394.6

 
820.6

 
255.8

 
(3,140.1
)
 
1,844.6

Other comprehensive loss, net of tax
(7.2
)
 
(7.2
)
 
—

 
—

 
(7.2
)
 
14.4

 
(7.2
)
Comprehensive income attributable to Express Scripts
$
1,837.4

 
$
1,661.9

 
$
394.6

 
$
820.6

 
$
248.6

 
$
(3,125.7
)
 
$
1,837.4

For the year ended December 31, 2012
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
29,763.1

 
$
43,085.7

 
$
22,007.8

 
$
1,329.8

 
$
(2,472.1
)
 
$
93,714.3

Operating expenses
—

 
28,591.8

 
43,090.3

 
20,573.7

 
1,136.7

 
(2,472.1
)
 
90,920.4

Operating income
—

 
1,171.3

 
(4.6
)
 
1,434.1

 
193.1

 
—

 
2,793.9

Other (expense) income, net
(373.7
)
 
(180.1
)
 
(49.4
)
 
(2.2
)
 
11.9

 
—

 
(593.5
)
Income (loss) before income taxes
(373.7
)
 
991.2

 
(54.0
)
 
1,431.9

 
205.0

 
—

 
2,200.4

Provision (benefit) for income taxes
(142.1
)
 
449.6

 
(20.4
)
 
550.8

 
0.1

 
—

 
838.0

Net income (loss) from continuing operations
(231.6
)
 
541.6

 
(33.6
)
 
881.1

 
204.9

 
—

 
1,362.4

Net loss from discontinued operations, net of tax
—

 
—

 
—

 
—

 
(32.3
)
 
—

 
(32.3
)
Equity in earnings of subsidiaries
1,544.5

 
740.0

 
296.5

 
—

 
—

 
(2,581.0
)
 
—

Net income
$
1,312.9

 
$
1,281.6

 
$
262.9

 
$
881.1

 
$
172.6

 
$
(2,581.0
)
 
$
1,330.1

Less: Net income attributable to non-controlling interest
—

 
—

 
—

 
—

 
17.2

 
—

 
17.2

Net income attributable to Express Scripts
1,312.9

 
1,281.6

 
262.9

 
881.1

 
155.4

 
(2,581.0
)
 
1,312.9

Other comprehensive income, net of tax
1.9

 
1.9

 
—

 
—

 
1.9

 
(3.8
)
 
1.9

Comprehensive income attributable to Express Scripts
$
1,314.8

 
$
1,283.5

 
$
262.9

 
$
881.1

 
$
157.3

 
$
(2,584.8
)
 
$
1,314.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Operations
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
For the year ended December 31, 2011
 
 
 
 
 
 
 
 
Revenues
$
—

 
$
29,450.9

 
$
—

 
$
16,520.3

 
$
157.1

 
$
—

 
$
46,128.3

Operating expenses
—

 
27,847.9

 
—

 
15,841.3

 
124.7

 
—

 
43,813.9

Operating income
—

 
1,603.0

 
—

 
679.0

 
32.4

 
—

 
2,314.4

Other (expense) income, net
(22.2
)
 
(259.8
)
 
—

 
(5.9
)
 
0.6

 
—

 
(287.3
)
Income (loss) before income taxes
(22.2
)
 
1,343.2

 
—

 
673.1

 
33.0

 
—

 
2,027.1

Provision (benefit) for income taxes
(8.1
)
 
487.9

 
—

 
263.8

 
5.0

 
—

 
748.6

Net income (loss) from continuing operations
(14.1
)
 
855.3

 
—

 
409.3

 
28.0

 
—

 
1,278.5

Equity in earnings of subsidiaries
1,289.9

 
434.6

 
—

 
—

 
—

 
(1,724.5
)
 
—

Net income
$
1,275.8

 
$
1,289.9

 
$
—

 
$
409.3

 
$
28.0

 
$
(1,724.5
)
 
$
1,278.5

Less: Net income attributable to non-controlling interest
—

 
—

 
—

 
—

 
2.7

 
—

 
2.7

Net income attributable to Express Scripts
1,275.8

 
1,289.9

 
—

 
409.3

 
25.3

 
(1,724.5
)
 
1,275.8

Other comprehensive loss, net of tax
(2.8
)
 
(2.8
)
 
—

 
—

 
(2.8
)
 
5.6

 
(2.8
)
Comprehensive income attributable to Express Scripts
$
1,273.0

 
$
1,287.1

 
$
—

 
$
409.3

 
$
22.5

 
$
(1,718.9
)
 
$
1,273.0



Condensed Consolidating Statement of Cash Flows
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
For the year ended December 31, 2013
Net cash flows provided by (used in) operating activities
$
(214.1
)
 
$
2,731.3

 
$
765.9

 
$
556.0

 
$
929.1

 
$
(10.7
)
 
$
4,757.5

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(398.3
)
 
—

 
(16.5
)
 
(8.2
)
 
—

 
(423.0
)
Proceeds from the sale of business
—

 
1.6

 
—

 
355.3

 
—

 
—

 
356.9

Acquisitions, net of cash acquired
—

 
—

 
—

 
—

 
(14.5
)
 
—

 
(14.5
)
Other
—

 
14.0

 
—

 
—

 
(3.4
)
 
—

 
10.6

Net cash (used in) provided by investing activities—continuing operations
—

 
(382.7
)
 
—

 
338.8

 
(26.1
)
 
—

 
(70.0
)
Net cash used in investing activities—discontinued operations
—

 
—

 
—

 
—

 
(2.1
)
 
—

 
(2.1
)
Net cash (used in) provided by investing activities
—

 
(382.7
)
 
—

 
338.8

 
(28.2
)
 
—

 
(72.1
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury stock acquired
(4,055.2
)
 
—

 
—

 
—

 
—

 
—

 
(4,055.2
)
Repayment of long-term debt
(631.6
)
 
(1,000.0
)
 
(300.0
)
 
—

 
—

 
—

 
(1,931.6
)
Net proceeds from employee stock plans
466.0

 
—

 
—

 
—

 
—

 
—

 
466.0

Excess tax benefit relating to employee stock-based compensation
—

 
26.6

 
16.1

 
—

 
—

 
—

 
42.7

Distributions paid to non-controlling interest
—

 
—

 
—

 
—

 
(31.7
)
 
—

 
(31.7
)
Other
—

 
—

 
—

 
(13.0
)
 
28.0

 
—

 
15.0

Net intercompany transactions
4,434.9

 
(2,575.9
)
 
(478.4
)
 
(964.7
)
 
(415.9
)
 
—

 
—

Net cash (used in) provided by financing activities—continuing operations
214.1

 
(3,549.3
)
 
(762.3
)
 
(977.7
)
 
(419.6
)
 
—

 
(5,494.8
)
Net cash used in financing activities— discontinued operations
—

 
—

 
—

 
—

 
(10.7
)
 
10.7

 
—

Net cash (used in) provided by financing activities
214.1

 
(3,549.3
)
 
(762.3
)
 
(977.7
)
 
(430.3
)
 
10.7

 
(5,494.8
)
Effect of foreign currency translation adjustment
—

 
—

 
—

 
—

 
(5.7
)
 
—

 
(5.7
)
Less cash attributable to discontinued operations
—

 
—

 
—

 
—

 
13.4

 
—

 
13.4

Net (decrease) increase in cash and cash equivalents
—

 
(1,200.7
)
 
3.6

 
(82.9
)
 
478.3

 
—

 
(801.7
)
Cash and cash equivalents at beginning of year
—

 
2,346.6

 
—

 
126.9

 
319.6

 
—

 
2,793.1

Cash and cash equivalents at end of year
$
—

 
$
1,145.9

 
$
3.6

 
$
44.0

 
$
797.9

 
$
—

 
$
1,991.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
For the year ended December 31, 2012
Net cash flows provided by (used in) operating activities
$
(147.3
)
 
$
655.1

 
$
3,355.4

 
$
916.7

 
$
1.7

 
$
—

 
$
4,781.6

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(70.0
)
 
—

 
(85.9
)
 
(4.3
)
 
—

 
(160.2
)
Proceeds from the sale of business
—

 
31.5

 
30.0

 
—

 
—

 
—

 
61.5

Acquisitions, net of cash acquired
(10,283.6
)
 
—

 
—

 
—

 
(42.4
)
 
—

 
(10,326.0
)
Other
—

 
(5.0
)
 
—

 
—

 
1.0

 
—

 
(4.0
)
Net cash (used in) provided by investing activities—continuing operations
(10,283.6
)
 
(43.5
)
 
30.0

 
(85.9
)
 
(45.7
)
 
—

 
(10,428.7
)
Acquisitions, cash acquired— discontinued operations
—

 
—

 
—

 
—

 
42.4

 
—

 
42.4

Net cash used in investing activities— discontinued operations
—

 
—

 
—

 
(3.8
)
 
(1.6
)
 
—

 
(5.4
)
Net cash (used in) provided by investing activities
(10,283.6
)
 
(43.5
)
 
30.0

 
(89.7
)
 
(4.9
)
 
—

 
(10,391.7
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayment of long-term debt
(1,368.4
)
 
(1,000.1
)
 
(1,500.0
)
 
—

 
—

 
—

 
(3,868.5
)
Net proceeds from employee stock plans
295.2

 
—

 
30.8

 
—

 
—

 
—

 
326.0

Excess tax benefit relating to employee stock-based compensation
—

 
37.2

 
8.1

 
—

 
—

 
—

 
45.3

Distributions paid to non-controlling interest
—

 
—

 
—

 
—

 
(8.1
)
 
—

 
(8.1
)
Proceeds from long-term debt, net of discounts
7,458.9

 
—

 
—

 
—

 
—

 
—

 
7,458.9

Repayment of revolving credit line, net
—

 
—

 
(1,000.0
)
 
—

 
—

 
—

 
(1,000.0
)
Proceeds from accounts receivable financing facility
—

 
—

 
—

 
—

 
600.0

 
—

 
600.0

Repayment of accounts receivable financing facility
—

 
—

 
—

 
—

 
(600.0
)
 
—

 
(600.0
)
Deferred financing fees
(52.4
)
 
(50.8
)
 
—

 
—

 
—

 
—

 
(103.2
)
Net intercompany transactions
4,097.6

 
(2,773.5
)
 
(924.3
)
 
(705.5
)
 
305.7

 
—

 
—

Net cash provided by (used in) financing activities—continuing operations
10,430.9

 
(3,787.2
)
 
(3,385.4
)
 
(705.5
)
 
297.6

 
—

 
2,850.4

Net cash used in financing activities— discontinued operations
—

 
—

 
—

 
—

 
(26.8
)
 
—

 
(26.8
)
Net cash provided by (used in) financing activities
10,430.9

 
(3,787.2
)
 
(3,385.4
)
 
(705.5
)
 
270.8

 
—

 
2,823.6

Effect of foreign currency translation adjustment
—

 
—

 
—

 
—

 
2.0

 
—

 
2.0

Less cash attributable to discontinued operations
—

 
—

 
—

 
—

 
(42.5
)
 
—

 
(42.5
)
Net (decrease) increase in cash and cash equivalents
—

 
(3,175.6
)
 
—

 
121.5

 
227.1

 
—

 
(2,827.0
)
Cash and cash equivalents at beginning of year
—

 
5,522.2

 
—

 
5.4

 
92.5

 
—

 
5,620.1

Cash and cash equivalents at end of year
$
—

 
$
2,346.6

 
$
—

 
$
126.9

 
$
319.6

 
$
—

 
$
2,793.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Cash Flows
(in millions)
Express
Scripts
Holding
Company
 
Express
Scripts, Inc.
 
Medco
Health
Solutions,
Inc.
 
Guarantors
 
Non-
Guarantors
 
Eliminations
 
Consolidated
For the year ended December 31, 2011
Net cash flows provided by (used in) operating activities
$
(14.1
)
 
$
1,426.4

 
$
—

 
$
753.1

 
$
27.7

 
$
—

 
$
2,193.1

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(124.9
)
 
—

 
(13.4
)
 
(6.1
)
 
—

 
(144.4
)
Other
—

 
(1.0
)
 
—

 
1.3

 
20.2

 
—

 
20.5

Net cash (used in) provided by investing activities
—

 
(125.9
)
 
—

 
(12.1
)
 
14.1

 
—

 
(123.9
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Treasury stock acquired
—

 
(2,515.7
)
 
—

 
—

 
—

 
—

 
(2,515.7
)
Repayment of long-term debt
—

 
(0.1
)
 
—

 
—

 
—

 
—

 
(0.1
)
Net proceeds from employee stock plans
—

 
32.2

 
—

 
—

 
—

 
—

 
32.2

Excess tax benefit relating to employee stock-based compensation
—

 
28.3

 
—

 
—

 
—

 
—

 
28.3

Distributions paid to non-controlling interest
—

 
—

 
—

 
—

 
(1.1
)
 
—

 
(1.1
)
Proceeds from long-term debt, net of discounts
4,086.3

 
1,494.0

 
—

 
—

 
—

 
—

 
5,580.3

Deferred financing fees
(29.2
)
 
(62.4
)
 
—

 
—

 
—

 
—

 
(91.6
)
Other
—

 
(2.9
)
 
—

 
—

 
—

 
—

 
(2.9
)
Net intercompany transactions
(4,043.0
)
 
4,791.6

 
—

 
(744.6
)
 
(4.0
)
 
—

 
—

Net cash provided by (used in) financing activities
14.1

 
3,765.0

 
—

 
(744.6
)
 
(5.1
)
 
—

 
3,029.4

Effect of foreign currency translation adjustment
—

 
—

 
—

 
—

 
(2.2
)
 
—

 
(2.2
)
Net increase (decrease) in cash and cash equivalents
—

 
5,065.5

 
—

 
(3.6
)
 
34.5

 
—

 
5,096.4

Cash and cash equivalents at beginning of year
—

 
456.7

 
—

 
9.0

 
58.0

 
—

 
523.7

Cash and cash equivalents at end of year
$
—

 
$
5,522.2

 
$
—

 
$
5.4

 
$
92.5

 
$
—

 
$
5,620.1

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