1.Alternative strategies (giving advantages and disadvantages for each). There should be
at least two alternative strategies identified and discussed.
2.Projected Financial Statements (Income Statement, Balance Sheet and Statement of
Cash Flows) for 3 years into the future. This must be broken down by year into two (2)
columns: 1 column without your strategy and 1 column with your strategy. The without
column should serve as the basis for your with strategy column and only those financial
statement accounts that will be changed, based on your strategy, should be impacted.
3.Include Projected ratios for the without and with strategy by year. Discuss how these
ratios compare and contrast with the historical findings.
4.Cost Analysis completed on an Excel tab that outlines the cost that will be incurred to
implement the strategy. This information should correspond with the With Strategy on the
Projected Financial Statements, linking of cells to the financial statements is encouraged.
5.Net Present Value analysis of proposed strategy’s new cash flow – you may also use
Excel to solve for this. From the income statement the change in operating income
between your with and without strategy should serve as your cash inflow for each year.
NOTE: To construct the first cash flow (cf1) the new revenue from your strategy(s) must
be discounted back to the present value by calculating EBIT (Operating Income on the
Income Statement) and that figure will be your cfn for each year. cf0 (initial cost of your
strategy), cf1 (discounted cash flow first year), r (opportunity cost of capital, the rate of the
next best alternative use of cash/debt/equity resources).
6.Implementation strategy – how and when will the strategy be implemented, this should
outline the who, how, what, and when of the implementation process.
7.Specific recommended strategy and long term objectives
Explain why you chose the strategy, discuss the advantages/benefits to organizational
success and sustainability. Incude a discussion of the challenges or disadvantages that
may arise as a result of the strategic choice.
Running head: ABC CORPORATION 1
ABC corporation
Student Name
Institution Affiliation
ABC CORPORATION 2
1. Alternative Strategies
ABC’s alternative strategies include offer value –added distribution and service solutions to
healthcare providers (Sec, 2007).
a) Advantage is that ABC is able to sell its products or services above what their cost of
production.
b) It is also critical as it offers consumers an incentive to come up with purchases therefore
improving the firm’s revenue and bottom line.
The disadvantage is that there is lack of uniformity and inconsistency for ABC’s financial
statements.
The second strategy is optimization and growth of the specialty distribution and service
a) The first advantage is that there is improved efficiency of the services that ABC offers to its
clients.
b) The second advantage is that it aids in minimization of costs which cause higher profits and
success in tough fights.
The disadvantage is that more evaluations for the structure of the company objectives and
constraints are needed.
3. Ratios
The projected current ratio increased for 2021 and 2022 before decreasing in 2023. The
value for 2021 will be 1.00188379, that for 2022 will be 1.02732 and that for 2023 is expected
to be -1.0771E+15. The same happened to cash ratio where the value increased for the two years
ABC CORPORATION 3
of 2021 and 2022 before decreasing for year 2023. The expected ratios were increasing for 2021
and 2022 before decreasing in 2023. It was a trend in all the ratios.
6. Implementation strategy
Implementation strategy for ABC involves the approach through which ABC translates
the above strategies into actionable plans and events. It is the way the firm steers the activities
into the direction to find out the strategy and aid the firm to gain its strategic goals.
ABC believes that it would optimize and increase the pharmaceutical distribution and
service businesses as it is well positioned in terms of size and market share. The growth would
increase its value added means. The company will utilize distribution to increase its growth and
position within the pharmaceutical chain associated with their supply. The company is
determined to provide value-added solutions that enhances efficiency and competitiveness for
the healthcare and pharmaceutical. The company management is in control of this steps and the
entire implementation process.
7. Specific recommended strategy and long-term objectives
The specific recommended strategy is the value-added strategy
The long term goals of ABC company are investment goals which include achieving the
highest return possible in a specific risk group of parameters and minimum produce outcome that
aids in achieving the plans of assumed interest rate for funding these plans within the full market
cycle. I chose the strategy because it aids ABC to achieve its main goals. The advantage of the
strategy to the firm is that it would aid the company to take the market share, improve profits and
eventually the entire success of the firm. The challenge that could arise is the firm could
experience difficulties in preparing their statements.
ABC CORPORATION 4
References
Sec. (2007). AMERISOURCEBERGEN CORPORATION. Retrieved from
https://www.sec.gov/Archives/edgar/data/1140859/000119312507255013/d10k.htm
Ratio Analysis
Profitability Ratios
2018
2019
2020
Gross Profit
Gross Profit
4,612,317,000 5,138,312,000 5,191,884,000
Net Revenue of Operations
$ 1,658,405,000 $ 855,365,000 $ (3,408,716,000)
2.781176492
6.007157179
-1.523120143
Horizontal Analysis
-3.225980687
7.530277321
Liquidity Ratios
2018
2019
2020
Current Ratio
CA
28,132,054 33,055,702
CL
29,581,294 33,853,077
0.951008228
0.976446011
Cash Ratio
Cash + Market Securities/ Current Liabilities
Cash
$ 3,374,194 $ 4,597,746
CL
29,581,294 33,853,077
0.114065125
0.135814715
Leverage Ratios
Debt to Asssets Ratio
Rotal Debt/Total Assets
2018
2019
2020
Total Debt
0 6,198,943
Total Assets
39,171,980 44,274,830
0
0.140010543
Debt to Equity Ratio
Total Debt/Total Equity
Total Debt
0 6,198,943
Total Equity
2,993,206 (839,636)
0
-7.382893301
Activity Ratios
Total Asset Turnover Ratio
Revenue $ 167,939,635,000 $ 179,589,121,000 $ 189,893,926,000
Average Total Asset
39,171,980 44,274,830
4584.632204
4288.981482
Price to earnings ratio
18.65 50.7 9.397
Forecasted
Vertical Analysis
2021
2022
2023
5560404667
5850188167
6139971667
-5365436333
-7898996833
-1.5556E+19
-1.882558792
-4.034707109
3.34788E+19
29.04279334
39.79905134
3.60106E+20
8,600,600,000
2021
2022
0
37979350
42902998
-9912713258
38124860
42396643
-4.2345E+16
1.001883794
1.027321577
-1.07716E+15
5821298
7044850
-2466977294
38124860
42396643
-1.05384E+16
0.157564305
0.179313894
-2.29206E+14
2021
2022
2023
12397886
18596829
24795772
49377680
54480530
1.26519E+14
0.280021086
0.42003163
1.7714E+13
12397886
18596829
-12515665917
-4672478
-8505320
4.79706E+16
-14.7657866
-22.1486799
-3.54162E+17
2.01095E+11 2.12072E+11 -2.19837E+13
49377680
54480530
-1.1218E+20
3993.330761
3697.680039
3.3166E+22
-31.906 -73.209 -1.36985E+24
Competitor Ratios-McKesson
2020
5.2036
2020
0.9906
2020
0.53
2020
0.22
1.3914
12 Months Ended
Sep. 30, 2020 Oct. 31, 2020
Cover [Abstract]
Document Type 10-K
Document Annual Report true
Document Period End Date Sep. 30,
2020
Document Transition Report false
Entity File Number 1-16671
Entity Registrant Name AMERISOURCEBERGEN
CORP
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 23-3079390
Entity Address, Address Line One 1300 Morris Drive
Entity Address, City or Town Chesterbrook,
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19087-5594
City Area Code 610
Local Phone Number 727-7000
Trading Symbol ABC
Title of 12(b) Security Common stock
Security Exchange Name NYSE
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
ICFR Auditor Attestation Flag true
Entity Shell Company false
Entity Public Float
Entity Common Stock, Shares Outstanding 204,249,747
Entity Central Index Key 0001140859
Document Fiscal Period Focus FY
Current Fiscal Year End Date --09-30
Document Fiscal Year Focus 2020
Amendment Flag false
Cover - USD ($)
Mar. 31, 2020
$ 10,238,925,461
CONSOLIDATED BALANCE SHEETS - USD ($) $ in 2019 2020
Current assets:
Cash and cash equivalents $ 3,374,194 $ 4,597,746
Accounts receivable, less allowances for returns and
doubtful accounts: 2020 — $1,417,308; 2019 —
$1,222,906
12,386,879 13,846,301
Inventories 11,060,254 12,589,278
Right to recover asset 1,147,483 1,344,649
Income tax receivable (Note 5) 5,859 488,428
Prepaid expenses and other 157,385 189,300
Total current assets 28,132,054 33,055,702
Property and equipment, net 1,770,516 1,484,808
Goodwill 6,705,507 6,706,719
Other intangible assets 2,294,836 1,886,107
Deferred income taxes 0 361,640
Other assets 269,067 779,854
TOTAL ASSETS 39,171,980 44,274,830
Current liabilities:
Accounts payable 28,385,074 31,705,055
Accrued expenses and other 1,057,208 1,646,763
Short-term debt 139,012 501,259
Total current liabilities 29,581,294 33,853,077
Long-term debt 4,033,880 3,618,261
Long-term financing obligation (Note 1) 320,518 0
Accrued income taxes 284,075 284,845
Deferred income taxes 1,860,195 686,485
Other liabilities 98,812 472,855
Accrued litigation liability 0 6,198,943
Commitments and contingencies (Note 14)
Stockholders' (deficit) equity:
Common stock, $0.01 par value — authorized, issued,
and outstanding: 2020 — 600,000,000 shares,
287,790,479 shares and 204,226,465 shares; 2019 —
600,000,000 shares, 285,295,170 shares and 206,760,654
shares
2,853 2,878
Additional paid-in capital 4,850,142 5,081,776
Retained earnings 4,235,491 518,335
Accumulated other comprehensive loss (111,965) (108,830)
Treasury stock, at cost: 2020 — 83,564,014 shares;
2019 — 78,534,516 shares
(6,097,604) (6,513,083)
Total AmerisourceBergen Corporation stockholders'
(deficit) equity
2,878,917 (1,018,924)
Noncontrolling interest 114,289 179,288
Total (deficit) equity 2,993,206 (839,636)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY $ 39,171,980 $ 44,274,830
Forecasted without strategy
Forecasted with strategy
2021
2022
2023
2019 2020
2021
2022
2023
5821298
7044850
8268402
$ 4,375,000 $ 4,597,746
4820492
5043238
5265984
15305723 16765145 18224567
12,586,879 13,846,301
15105723 16365145 17624567
14118302
15647326
17176350
11,060,254 12,589,278
14118302
15647326
17176350
1541815
1738981
1936147
1,147,483 1,344,649
1541815
1738981
1936147
970997
1453566
1936135
5,859 488,428
970997
1453566
1936135
221215
253130
285045
157,385 189,300
221215
253130
285045
37979350
42902998
47826646
28,132,054 33,055,702
37979350
42902998
47826646
1199100
913392
627684
1,770,516 1,484,808
1199100
913392
627684
6707931
6709143
6710355
6,705,507 6,706,719
6707931
6709143
6710355
1477378
1068649
659920
2,294,836 1,886,107
1477378
1068649
659920
723280
1084920
1446560
0 361,640
723280
1084920
1446560
1290641
1801428
2312215
269,067 779,854
1290641
1801428
2312215
49377680
54480530
59583380
49,171,980 50,274,830
51377680
52480530
53583380
35025036
38345017
41664998
28,385,074 31,705,055
35025036
38345017
41664998
2236318
2825873
3415428
1,057,208 1,646,763
2236318
2825873
3415428
863506
1225753
1588000
139,012 501,259
863506
1225753
1588000
38124860
42396643
46668426
29,581,294 33,853,077
38124860
42396643
46668426
3202642
2787023
2371404
4,033,880 3,618,261
3202642
2787023
2371404
-320518
-641036
-961554
320,518 0
-320518
-641036
-961554
285615
286385
287155
284,075 284,845
285615
286385
287155
-487225
-1660935
-2834645
1,860,195 686,485
-487225
-1660935
-2834645
846898
1220941
1594984
98,812 472,855
846898
1220941
1594984
12397886
18596829
24795772
0 6,198,943
12397886
18596829
24795772
2903 2928 2953
2,853 2,878
2903 2928 2953
5313410
5545044
5776678
4,850,142 5,081,776
5313410
5545044
5776678
-3198821
-6915977
-1.1E+07
4,235,491 518,335
-3198821
-6915977
-1.1E+07
-105695
-102560
-99425
(111,965) (108,830)
-105695
-102560
-99425
-6928562 -7344041 -7759520
(6,097,604) (6,513,083)
-6928562 -7344041 -7759520
-4916765 -8814606 -1.3E+07
2,878,917 (1,018,924)
-4916765 -8814606 -1.3E+07
244287
309286
374285
114,289 179,288
244287
309286
374285
-4672478
-8505320
-1.2E+07
2,993,206 (839,636)
-4672478
-8505320
-1.2E+07
49377680 54480530 59583380
########## ##########
48377680 52480530 56583380
OPERATING ACTIVITIES
Net (loss) income
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, including amounts charged to cost of goods sold
Amortization, including amounts charged to interest expense
Provision for doubtful accounts
(Benefit) provision for deferred income taxes
Share-based compensation expense
LIFO expense (credit)
Impairment of PharMEDium assets
Gain on sale of an equity investment
Goodwill impairment
Impairment of non-customer note receivable
Loss on consolidation of equity investments
Loss on early retirement of debt
Other, net
Changes in operating assets and liabilities, excluding the effects of acquisitions and
divestitures:
Accounts receivable
Inventories
Income tax receivable
Prepaid expenses and other assets
Accounts payable
Income taxes payable
Accrued expenses
Accrued litigation liability
Other liabilities
NET CASH PROVIDED BY OPERATING ACTIVITIES
INVESTING ACTIVITIES
Capital expenditures
Cost of acquired companies, net of cash acquired
Cost of equity investments
Proceeds on sale of property and equipment
Other, net
NET CASH USED IN INVESTING ACTIVITIES
FINANCING ACTIVITIES
Senior notes and other loan borrowings
Senior notes and other loan repayments
Borrowings under revolving and securitization credit facilities
Repayments under revolving and securitization credit facilities
Payment of premium on early retirement of debt
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($)
Purchases of common stock
Exercises of stock options
Cash dividends on common stock
Profarma retail equity offering
Tax withholdings related to restricted share vesting
Other
NET CASH USED IN FINANCING ACTIVITIES
INCREASE IN CASH AND CASH EQUIVALENTS
Cash and cash equivalents at beginning of year
CASH AND CASH EQUIVALENTS AT END OF YEAR
12 Months Ended
Forecasted without strategy
2018 2019 2020 2021 2022 2023
$ 1,615,892,000 $ 854,135,000 $ (3,399,558,000)
-5325293667
-7833018667
-10340743667
318,483,000 321,102,000 290,744,000
282370666.7
268501166.7
254631666.7
191,626,000 176,410,000 117,269,000
87411333.33
50232833.33
13054333.33
16,660,000 25,196,000 11,912,000
13174666.67
10800666.67
8426666.667
(795,524,000) 28,537,000 (1,544,971,000)
-1520099667
-1894823167
-2269546667
62,316,000 58,874,000 74,411,000
77295333.33
83342833.33
89390333.33
67,324,000 (22,544,000) 7,422,000
-42501333.3
-72452333.3
-102403333.3
0 570,000,000 361,652,000
672202666.7
853028666.7
1033854667
0 (13,692,000) 0
-4564000
-4564000
-4564000
59,684,000 0 0
-39789333.3
-69631333.3
-99473333.33
30,000,000 0 0
-20000000
-35000000
-50000000
42,328,000 0 0
-28218666.7
-49382666.7
-70546666.67
23,766,000 0 22,175,000
13722666.67
12927166.67
12131666.67
(19,078,000) (23,193,000) (3,044,000)
929000
8946000
16963000
(657,770,000) (1,241,890,000) (1,628,991,000)
-2147438000
-2633048500
-3118659000
(4,923,000) (167,990,000) (1,621,143,000)
-2214238667
-3022348667
-3830458667
4,566,000 (2,834,000) (482,569,000)
-647414000
-890981500
-1134549000
(61,777,000) (3,899,000) 28,050,000
77285000
122198500
167112000
859,036,000 1,561,048,000 3,300,832,000
4348768000
5569666000
6790564000
209,899,000 (13,353,000) (3,289,000)
-148769000
-255363000
-361957000
(537,905,000) 239,688,000 524,021,000
1137194000
1668157000
2199120000
0 0 6,198,943,000
8265257333
11364728833
14464200333
(13,215,000) (1,572,000) (46,826,000)
-54148666.7
-70954166.7
-87759666.67
1,411,388,000 2,344,023,000 2,207,040,000
2783135667
3180961667
3578787667
(336,411,000) (310,222,000) (369,677,000)
-372036000
-388669000
-405302000
(785,299,000) (63,951,000) 0
502215666.7
894865166.7
1287514667
0 0 (56,080,000)
-74773333.3
-102813333
-130853333.3
8,100,000 1,295,000 36,364,000
43517000
57649000
71781000
2,496,000 (2,954,000) 9,522,000
10047333.33
13560333.33
17073333.33
(1,111,114,000) (375,832,000) (379,871,000)
108970666.7
474592166.7
840213666.7
1,314,430,000 506,948,000 599,480,000
92002666.67
-265472333
-622947333.3
(681,001,000) (510,863,000) (598,452,000)
-514223000
-472948500
-431674000
25,129,704,000 640,126,000 116,946,000
-1.6384E+10
-2.889E+10
-41396590667
(25,127,438,000) (769,284,000) (149,980,000)
16295224000
28783953000
41272682000
(22,348,000) 0 (21,448,000)
-13698666.7
-13248666.7
-12798666.67
(639,235,000) (674,031,000) (420,449,000)
-359119000
-249726000
-140333000
138,456,000 76,234,000 159,533,000
145818000
156356500
166895000
(333,041,000) (338,974,000) (343,578,000)
-349068000
-354336500
-359605000
0 0 66,355,000
88473333.33
121650833.3
154828333.3
(8,246,000) (5,987,000) (9,787,000)
-9547666.67
-10318166.7
-11088666.67
(14,154,000) (10,682,000) (2,237,000)
2892666.667
8851166.667
14809666.67
(242,873,000) (1,086,513,000) (603,617,000)
-1005078333
-1185450333
-1365822333
57,401,000 881,678,000 1,223,552,000
1887028000
2470103500
3053179000
2,435,115,000 2,492,516,000 3,374,194,000
3706354000
4175893500
4645433000
$ 2,492,516,000 $ 3,374,194,000 $ 4,597,746,000
5593382000
6645997000
7698612000
Forecasted with strategy
2018 2019 2020 2021 2022
$ 1,815,892,000 $ 854,135,000 $ (3,399,558,000)
-5458627000
-8066352000
318,483,000 321,102,000 290,744,000
282370666.7
268501166.7
191,626,000 176,410,000 117,269,000
87411333.33
50232833.33
16,660,000 25,196,000 11,912,000
13174666.67
10800666.67
(795,524,000) 28,537,000 (1,544,971,000)
-1520099667
-1894823167
62,316,000 58,874,000 74,411,000
77295333.33
83342833.33
67,324,000 (22,544,000) 7,422,000
-42501333.3
-72452333.3
0 570,000,000 361,652,000
672202666.7
853028666.7
0 (13,692,000) 0
-4564000
-4564000
59,684,000 0 0
-39789333.3
-69631333.3
30,000,000 0 0
-20000000
-35000000
42,328,000 0 0
-28218666.7
-49382666.7
23,766,000 0 22,175,000
13722666.67
12927166.67
(19,078,000) (23,193,000) (3,044,000)
929000
8946000
(657,770,000) (1,241,890,000) (1,628,991,000)
-2147438000
-2633048500
(4,923,000) (167,990,000) (1,621,143,000)
-2214238667
-3022348667
4,566,000 (2,834,000) (482,569,000)
-647414000
-890981500
(61,777,000) (3,899,000) 28,050,000
77285000
122198500
859,036,000 1,561,048,000 3,300,832,000
4348768000
5569666000
209,899,000 (13,353,000) (3,289,000)
-148769000
-255363000
(537,905,000) 239,688,000 524,021,000
1137194000
1668157000
0 0 6,198,943,000
8265257333
11364728833
(13,215,000) (1,572,000) (46,826,000)
-54148666.7
-70954166.7
1,411,388,000 2,344,023,000 2,207,040,000
2783135667
3180961667
(336,411,000) (310,222,000) (369,677,000)
-372036000
-388669000
(785,299,000) (63,951,000) 0
502215666.7
894865166.7
0 0 (56,080,000)
-74773333.3
-102813333
8,100,000 1,295,000 36,364,000
43517000
57649000
2,496,000 (2,954,000) 9,522,000
10047333.33
13560333.33
(1,111,114,000) (375,832,000) (379,871,000)
108970666.7
474592166.7
1,314,430,000 506,948,000 599,480,000
92002666.67
-265472333
(681,001,000) (510,863,000) (598,452,000)
-514223000
-472948500
25,129,704,000 640,126,000 116,946,000
-1.6384E+10
-2.889E+10
(25,127,438,000) (769,284,000) (149,980,000)
16295224000
28783953000
(22,348,000) 0 (21,448,000)
-13698666.7
-13248666.7
(639,235,000) (674,031,000) (420,449,000)
-359119000
-249726000
138,456,000 76,234,000 159,533,000
145818000
156356500
(333,041,000) (338,974,000) (343,578,000)
-349068000
-354336500
0 0 66,355,000
88473333.33
121650833.3
(8,246,000) (5,987,000) (9,787,000)
-9547666.67
-10318166.7
(14,154,000) (10,682,000) (2,237,000)
2892666.667
8851166.667
(242,873,000) (1,086,513,000) (603,617,000)
-1005078333
-1185450333
57,401,000 881,678,000 1,223,552,000
1887028000
2470103500
2,435,115,000 2,492,516,000 3,374,194,000
3706354000
4175893500
$ 2,492,516,000 $ 3,374,194,000 $ 4,597,746,000
5593382000
6645997000
2023
-10674077000
254631666.7
13054333.33
8426666.667
-2269546667
89390333.33
-102403333.3
1033854667
-4564000
-99473333.33
-50000000
-70546666.67
12131666.67
16963000
-3118659000
-3830458667
-1134549000
167112000
6790564000
-361957000
2199120000
14464200333
-87759666.67
3578787667
-405302000
1287514667
-130853333.3
71781000
17073333.33
840213666.7
-622947333.3
-431674000
-41396590667
41272682000
-12798666.67
-140333000
166895000
-359605000
154828333.3
-11088666.67
14809666.67
-1365822333
3053179000
4645433000
7698612000
2018
Statement of Comprehensive Income [Abstract]
Net (loss) income $ 1,615,892
Other comprehensive (loss) income:
Foreign currency translation adjustments (36,904)
Loss on consolidation of equity investments 45,941
Other, net (756)
Total other comprehensive (loss) income 8,281
Total comprehensive (loss) income 1,624,173
Comprehensive loss attributable to noncontrolling interest 50,829
Comprehensive (loss) income attributable to AmerisourceBergen Corporation $ 1,675,002
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands
12 Months Ended
Forecasted without strategy
2019 2020 2021 2022 2023
$ 854,135 $ (3,399,558)
-5325294
-7833019
-10340743.7
(32,957) (7,872)
3121
17637
32153
0 0
-30627.3
-53597.8
-76568.3333
(271) (1,074)
-1018.33
-1177.33
-1336.33333
(33,228) (8,946)
-28524.7
-37138.2
-45751.6667
820,907 (3,408,504)
-5353818
-7870157
-10386495.3
1,746 2,923
-29406.7
-53359.7
-77312.6667
$ 822,653 $ (3,405,581)
-5383225
-7923517
-10463808
Forecasted with strategy
2018 2019 2020 2021 2022 2023
$ 1,615,892 $ 854,135 $ (3,399,558)
-5325293.667
-7833018.667
-10340743.67
(36,904) (32,957) (7,872)
3121
17637
-1.50136E+11
45,941 0 0
-30627.33333
-53597.83333
46392753.17
(756) (271) (1,074)
-1018.333333
-1177.333333
2.38716E+13
8,281 (33,228) (8,946)
-28524.66667
-37138.16667
-3.99587E+11
1,624,173 820,907 (3,408,504)
-5353818.333
-7870156.833
-6.00689E+19
50,829 1,746 2,923
-29406.66667
-53359.66667
9.5713E+15
$ 1,675,002 $ 822,653 $ (3,405,581)
-5383225
-7923516.5
1.52593E+26
2018 2019 2020 2021 2022 2023
Comprehensive (loss) income attributable to AmerisourceBergen Corporation
1675002
822653
-3405581
-5383225
-7923517
-1E+07
Years
Net Income
2018
1675002
2019
822653
2020
-3405581
2021
-5383225
2022
-7923516.5
2023
-10463808
Net Present Value
$156,090.24
<
2018 2019 2020 2021 2022 2023
1675002
822653
-3405581
-5383225
-7923517
1.53E+26
Income Statement [Abstract]
Revenue
Cost of goods sold
Gross profit
Operating expenses:
Distribution, selling, and administrative
Depreciation
Amortization
Employee severance, litigation, and other (Note 13)
Goodwill impairment
Impairment of PharMEDium assets (Note 1)
Operating (loss) income
Other (income) loss
Interest expense, net
Loss on consolidation of equity investments
Loss on early retirement of debt
(Loss) income before income taxes
Income tax (benefit) expense
Net (loss) income
Net (income) loss attributable to noncontrolling interest
Net (loss) income attributable to AmerisourceBergen Corporation
Earnings per share:
Basic (usd per share)
Diluted (usd per share)
Weighted average common shares outstanding:
Basic (shares)
Diluted (shares)
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands
12 Months Ended
Sep. 30, 2018 Sep. 30, 2019 2020
$ 167,939,635,000 $ 179,589,121,000 $ 189,893,926,000
163,327,318,000 174,450,809,000 184,702,042,000
4,612,317,000 5,138,312,000 5,191,884,000
2,460,301,000 2,663,508,000 2,767,217,000
283,971,000 294,965,000 280,187,000
181,156,000 167,442,000 110,875,000
183,520,000 330,474,000 6,807,307,000
59,684,000 0 0
0 570,000,000 361,652,000
1,443,685,000 1,111,923,000 (5,135,354,000)
25,469,000 (12,952,000) (1,581,000)
174,699,000 157,769,000 137,883,000
42,328,000 0 0
23,766,000 0 22,175,000
1,177,423,000 967,106,000 (5,293,831,000)
(438,469,000) 112,971,000 (1,894,273,000)
1,615,892,000 854,135,000 (3,399,558,000)
42,513,000 1,230,000 (9,158,000)
$ 1,658,405,000 $ 855,365,000 $ (3,408,716,000)
$ 7.61 $ 4.07 $ (16.65)
$ 7.53 $ 4.04 $ (16.65)
217,872 210,165 204,783
220,336 211,840 204,783
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands
Balance, beginning of period at Sep. 30, 2017
Increase (decrease) in stockholders' equity
Consolidation of variable interest entity
Net (loss) income
Other comprehensive income (loss)
Cash dividends
Exercises of stock options
Share-based compensation expense
Common stock purchases for employee stock purchase plan
Purchases of common stock
Employee tax withholdings related to restricted share vesting
Other
Balance, end of period at Sep. 30, 2018
Increase (decrease) in stockholders' equity
Net (loss) income
Other comprehensive income (loss)
Cash dividends
Exercises of stock options
Share-based compensation expense
Purchases of common stock
Employee tax withholdings related to restricted share vesting
Other
Balance, end of period at Sep. 30, 2019
Increase (decrease) in stockholders' equity
Accounting Standards Update [Extensible List]
Net (loss) income
Other comprehensive income (loss)
Cash dividends
Exercises of stock options
Share-based compensation expense
Purchases of common stock
Profarma retail equity offering
Employee tax withholdings related to restricted share vesting
Other
Balance, end of period at Sep. 30, 2020
Increase (decrease) in stockholders' equity
Accounting Standards Update [Extensible List]
Total Adoption of ASU Common Stock
$ 2,064,461 $ 2,806
167,966
1,615,892
8,281
(333,041)
138,456 27
62,316
(341)
(663,220)
(8,246)
(2,563) 3
3,049,961 $ (2,584) 2,836
854,135
(33,228)
(338,974)
76,234 15
58,874
(664,803)
(5,987)
(422) 2
$ 2,993,206 $ 35,138 2,853
us-gaap:AccountingStandardsUpdate201409Member
$ (3,399,558)
(8,946)
(343,578)
159,533 21
74,411
(405,692)
66,355
(9,787)
(718) 4
$ (839,636) $ 2,878
us-gaap:AccountingStandardsUpdate201602Member
Additional Paid-in Capital Retained Earnings Retained EarningsAdoption of ASU
$ 4,517,635 $ 2,395,218
1,658,405
(333,041)
138,429
62,316
(341)
(2,566)
4,715,473 3,720,582 $ (1,482)
855,365
(338,974)
76,219
58,874
(424)
4,850,142 4,235,491 $ 35,138
(3,408,716)
(343,578)
159,512
74,411
(1,567)
(722)
$ 5,081,776 $ 518,335
Accumulated Other Comprehensive Loss Treasury Stock Non-controlling Interest
$ (95,850) $ (4,755,348) $ 0
167,966
(42,513)
16,597 (8,316)
(663,220)
(8,246)
(79,253) (5,426,814) 117,137
(1,230)
(32,712) (516)
(664,803)
(5,987)
(111,965) (6,097,604) 114,289
9,158
3,135 (12,081)
(405,692)
67,922
(9,787)
$ (108,830) $ (6,513,083) $ 179,288
Non-controlling InterestAdoption of ASU
$ (1,102)
Statement of Stockholders' Equity [Abstract]
Cash dividends (usd per share)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ /
shares
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 1.66 $ 1.60 $ 1.52
12 Months Ended
Accounting Policies [Abstract]
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
12 Months Ended
Sep. 30, 2020
Summary of Significant Accounting Policies AmerisourceBergen Corporation and its subsidiaries,
including less-than-wholly-owned subsidiaries in which AmerisourceBergen Corporation has a
controlling financial interest (the "Company"), is one of the largest global pharmaceutical
sourcing and distribution services companies, helping both healthcare providers and
pharmaceutical and biotech manufacturers improve patient access to products and enhance
patient care. The Company delivers innovative programs and services designed to improve the
effectiveness and efficiency of the pharmaceutical supply chain in both human and animal
health. Basis of Presentation The accompanying financial statements present the consolidated
financial position, results of operations, and cash flows of the Company as of the dates and for
the periods indicated. All intercompany accounts and transactions have been eliminated in
consolidation. The preparation of financial statements in conformity with U.S. generally accepted
accounting principles ("GAAP") requires management to make estimates and assumptions that
affect amounts reported in the financial statements and accompanying notes. Actual amounts
could differ from these estimated amounts due to uncertainties inherent in such estimates.
Management periodically evaluates estimates used in the preparation of the financial statements
for continued reasonableness. Certain reclassifications have been made to prior-period amounts
in order to conform to the current year presentation. In March 2020, the World Health
Organization ("WHO") declared a global pandemic attributable to the outbreak and continued
spread of COVID-19. In connection with the mitigation and containment procedures
recommended by the WHO and imposed by federal, state, and local governmental authorities,
the Company implemented measures designed to keep its employees safe and address business
continuity issues at its distribution centers and other locations. The Company continues to
evaluate and plan for the potential effects of a prolonged disruption and the related impacts on
its revenue, results of operations, and cash flows. These items include, but are not limited to, the
financial condition of its customers and the realization of accounts receivable, decreased
availability and demand for its products and services, and delays related to current and future
projects. While the Company's operational and financial performance may be significantly
impacted by COVID-19, it is not possible for the Company to predict the duration or magnitude of
Business Combinations [Abstract]
Acquisitions and Investments
Acquisitions and Investments
12 Months Ended
Sep. 30, 2020
Acquisitions and Investments NEVSCO In December 2017, the Company acquired Northeast
Veterinary Supply Company ("NEVSCO") for $70.0 million. NEVSCO was an independent, regional
distributor of veterinary pharmaceuticals and medical supplies serving primarily the northeast
region of the United States and strengthens MWI Animal Health's ("MWI") support of
independent veterinary practices and provides even greater value and care to current and future
animal health customers. NEVSCO is included within the MWI operating segment. The purchase
price was allocated to the underlying assets acquired and liabilities assumed based upon their
fair values on the date of the acquisition. The purchase price exceeded the fair value of the net
tangible and intangible assets acquired by $30.4 million, which was allocated to goodwill. The fair
value of accounts receivable, inventory, and accounts payable and accrued expenses acquired
was $8.5 million, $6.7 million, and $2.9 million, respectively. The fair value of the intangible
assets acquired of $29.8 million primarily consisted of customer relationships, which the
Company is amortizing over its estimated useful life of 15 years. Goodwill and intangible assets
resulting from the acquisition are deductible for income tax purposes. H.D. Smith In January
2018, the Company acquired H.D. Smith Holding Company ("H.D. Smith") for $815.0 million. The
Company funded the acquisition through the issuance of new long-term debt (see Note 7). H.D.
Smith was the largest independent pharmaceutical wholesaler in the United States and provides
full-line distribution of brand, generic, and specialty drugs, as well as high-value services and
solutions for manufacturers and healthcare providers. H.D. Smith's customers included retail
pharmacies, specialty pharmacies, long-term care facilities, institutional/hospital systems, and
independent physicians and clinics. The acquisition strengthens the Company's core business,
expands and enhances its strategic scale in pharmaceutical distribution, and expands the
Company's support for independent community pharmacies. H.D. Smith has been integrated into
the Pharmaceutical Distribution reportable segment. The purchase price was allocated to the
underlying assets acquired and liabilities assumed based upon their fair values on the date of
acquisition. The purchase price exceeded the fair value of the net tangible and intangible assets
acquired by $499.9 million, which was allocated to goodwill. The fair value of accounts
receivable, inventory, and accounts payable and accrued expenses acquired was $163.1 million,
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entity
Variable Interest Entity
12 Months Ended
Sep. 30, 2020
Variable Interest Entity As discussed in Note 2, the Company made an additional investment in
Profarma in January 2018. In connection with this investment, the Company obtained substantial
governance rights, allowing it to direct the activities that significantly impact Profarma’s
economic performance. As such, the Company consolidated the operating results of Profarma in
its consolidated financial statements as of and for the periods ended September 30, 2020 and
September 30, 2019. The Company is not obligated to provide future financial support to
Profarma. The following assets and liabilities of Profarma are included in the Company's
Consolidated Balance Sheet: (in thousands) September 30, September 30, Cash and cash
equivalents $ 96,983 $ 9,431 Accounts receivables, net 120,486 154,491 Inventories 144,059
185,602 Prepaid expenses and other 52,885 64,119 Property and equipment, net 23,584 30,961
Goodwill 82,309 82,309 Other intangible assets 73,543 74,429 Other long-term assets 53,513
9,169 Total assets $ 647,362 $ 610,511 Accounts payable $ 141,147 $ 165,053 Accrued expenses
and other 34,415 49,191 Short-term debt 98,399 106,439 Long-term debt 44,144 60,973 Deferred
income taxes 38,854 42,371 Other long-term liabilities 43,413 5,303 Total liabilities $ 400,372 $
429,330 Profarma's assets can only be used to settle its obligations, and its creditors do not have
recourse to the general credit of the Company. Profarma Retail Equity Offering In August 2020,
Profarma received $66.4 million through an equity offering of its retail business. The equity
offering decreased Profarma's voting ownership interest in the retail business from 100% to
53.5%. Profarma continues to consolidate the operating results of the retail business in its
consolidated financial statements.
Property, Plant and Equipment [Abstract]
Property and Equipment
Property and Equipment
12 Months Ended
Sep. 30, 2020
Property and Equipment The following table summarizes the Company's property and equipment
balances for the periods indicated: (in thousands) September 30, September 30, Property and
equipment, at cost: Land $ 39,572 $ 44,142 Buildings and improvements 586,551 942,129
Machinery, equipment, and other 2,618,354 2,362,869 Total property and equipment 3,244,477
3,349,140 Less accumulated depreciation (1,759,669) (1,578,624) Property and equipment, net $
1,484,808 $ 1,770,516
Income Tax Disclosure [Abstract]
Income Taxes
Income Taxes
12 Months Ended
Sep. 30, 2020
Income Taxes The following table summarizes the Company's (loss) income before income taxes
for the periods indicated: Fiscal Year Ended September 30, (in thousands) 2020 2019 2018
Domestic $ (5,961,269) $ 336,150 $ 704,935 Foreign 667,438 630,956 472,488 Total $ (5,293,831)
$ 967,106 $ 1,177,423 The components of the Company's consolidated income tax (benefit)
expense are summarized in the following table for the periods indicated: Fiscal Year Ended
September 30, (in thousands) 2020 2019 2018 Current (benefit) provision: Federal $ (473,751) $
(12,801) $ 247,755 State and local 30,236 15,246 39,328 Foreign 94,213 81,989 69,972 Total
current (benefit) provision (349,302) 84,434 357,055 Deferred (benefit) provision: Federal
(914,613) 61,819 (828,023) State and local (264,409) (31,086) 33,887 Foreign (365,949) (2,196)
(1,388) Total deferred (benefit) provision (1,544,971) 28,537 (795,524) (Benefit) provision for
income taxes $ (1,894,273) $ 112,971 $ (438,469) A reconciliation of the statutory U.S. federal
income tax rate to the Company's consolidated effective income tax rate is as follows for the
periods indicated: Fiscal Year Ended September 30, 2020 2019 2018 Statutory U.S. federal income
tax rate 21.0% 21.0% 24.5% State and local income tax rate, net of federal tax benefit (0.5) 2.4
(0.1) Foreign tax rate differential 1.0 (6.7) (6.2) Litigation settlements and accruals (see Note 14)
(6.2) 0.1 (6.3) U.S. Tax reform — (3.6) (52.0) PharMEDium worthless stock deduction 12.4 — —
Swiss Tax reform 6.8 — — CARES Act 1.2 — — Goodwill impairment (see Note 1) — — 1.7
Capital gain on distribution — — 3.6 Other 0.1 (1.5) (2.4) Effective income tax rate 35.8% 11.7%
(37.2)% The Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief, and
Economic Security ("CARES") Act became law on March 27, 2020. The CARES Act was a response
to the market volatility and instability resulting from the coronavirus pandemic and included
provisions to support businesses in the form of loans, grants, and tax changes, among other types
of relief that were not previously available under the U.S. Tax Cuts and Jobs Act of 2017 (the
"2017 Tax Act"). As it relates to the Company, the CARES Act provided relief through adjustments
to net operating loss rules and the acceleration of available refunds for alternative minimum tax
credit carryforwards. PharMEDium As discussed in Note 1, the Company decided in January 2020
to shut down and permanently exit the PharMEDium Healthcare Holdings LLC ("PharMEDium")
compounding business. Following the decision to exit PharMEDium and in connection with the
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
12 Months Ended
Sep. 30, 2020
Goodwill and Other Intangible Assets The following is a summary of the changes in the carrying
value of goodwill, by reportable segment, for the fiscal years ended September 30, 2020 and
2019: (in thousands) Pharmaceutical Other Total Goodwill as of September 30, 2018 $ 4,852,775
$ 1,811,497 $ 6,664,272 Goodwill recognized in connection with acquisitions — 43,418 43,418
Foreign currency translation — (2,183) (2,183) Goodwill as of September 30, 2019 4,852,775
1,852,732 6,705,507 Foreign currency translation — 1,212 1,212 Goodwill as of September 30,
2020 $ 4,852,775 $ 1,853,944 $ 6,706,719 The following is a summary of other intangible assets:
September 30, 2020 September 30, 2019 (dollars in thousands) Weighted Average Remaining
Useful Life Gross Accumulated Net Gross Accumulated Net Indefinite-lived trade names $
685,312 $ — $ 685,312 $ 685,324 $ — $ 685,324 Finite-lived: Customer relationships 13 years
1,671,888 (565,372) 1,106,516 1,931,212 (489,471) 1,441,741 Trade names and other 14 years
210,394 (116,115) 94,279 271,521 (103,750) 167,771 Total other intangible assets $ 2,567,594 $
(681,487) $ 1,886,107 $ 2,888,057 $ (593,221) $ 2,294,836 Amortization expense for finite-lived
intangible assets was $110.9 million, $167.4 million, and $181.2 million in the fiscal years ended
September 30, 2020, 2019, and 2018, respectively. Amortization expense for finite-lived
intangible assets is estimated to be $101.9 million in fiscal 2021, $100.3 million in fiscal 2022,
$98.8 million in fiscal 2023, $97.4 million in fiscal 2024, $96.6 million in 2025, and $705.8 million
thereafter.
Debt Disclosure [Abstract]
Debt
Debt
12 Months Ended
Sep. 30, 2020
Debt Debt consisted of the following: September 30, (in thousands) 2020 2019 Revolving credit
note $ — $ — Term loan due October 2020 399,982 399,778 Overdraft facility due 2021 (£30,000)
— 32,573 Receivables securitization facility due 2022 350,000 350,000 Multi-currency revolving
credit facility due 2024 — — $500,000, 3.50% senior notes due 2021 — 498,908 $500,000, 3.40%
senior notes due 2024 498,232 497,744 $500,000, 3.25% senior notes due 2025 496,990 496,311
$750,000, 3.45% senior notes due 2027 743,940 743,099 $500,000, 2.80% senior notes due 2030
494,045 — $500,000, 4.25% senior notes due 2045 494,730 494,514 $500,000, 4.30% senior
notes due 2047 492,755 492,488 Nonrecourse debt 148,846 167,477 Total debt 4,119,520
4,172,892 Less AmerisourceBergen Corporation current portion 399,982 32,573 Less nonrecourse
current portion 101,277 106,439 Total, net of current portion $ 3,618,261 $ 4,033,880 Multi-
Currency Revolving Credit Facility The Company has a $1.4 billion multi-currency senior
unsecured revolving credit facility ("Multi-Currency Revolving Credit Facility"), is scheduled to
expire in September 2024, with a syndicate of lenders. Interest on borrowings under the Multi-
Currency Revolving Credit Facility accrues at specified rates based upon the Company's debt
rating and ranges from 70 basis points to 112.5 basis points over CDOR/LIBOR/EURIBOR/Bankers
Acceptance Stamping Fee, as applicable (91 basis points over CDOR/LIBOR/EURIBOR/Bankers
Acceptance Stamping Fee as of September 30, 2020) and from 0 basis points to 12.5 basis points
over the alternate base rate and Canadian prime rate, as applicable. The Company pays facility
fees to maintain the availability under the Multi-Currency Revolving Credit Facility at specified
rates based on its debt rating, ranging from 5 basis points to 12.5 basis points, annually, of the
total commitment (9 basis points as of September 30, 2020). The Company may choose to repay
or reduce its commitments under the Multi-Currency Revolving Credit Facility at any time. The
Multi-Currency Revolving Credit Facility contains covenants, including compliance with a financial
leverage ratio test, as well as others that impose limitations on, among other things,
indebtedness of subsidiaries and asset sales, with which the Company was compliant as of
September 30, 2020. The opioid litigation accrual discussed in Note 14 has not and is not
expected to have an impact on the Company's compliance with its debt covenants. Commercial
Paper Program The Company has a commercial paper program whereby it may from time to time
Equity [Abstract]
Stockholders' Equity and Weighted Average Common Shares Outstanding
Stockholders' Equity and Weighted Average Common Shares Outstanding
12 Months Ended
Sep. 30, 2020
Stockholders' Equity and Weighted Average Common Shares Outstanding The authorized capital
stock of the Company consists of 600,000,000 shares of common stock, par value $0.01 per share
(the "common stock"), and 10,000,000 shares of preferred stock, par value $0.01 per share (the
"preferred stock"). The board of directors is authorized to provide for the issuance of shares of
preferred stock in one or more series with various designations and preferences and relative,
participating, optional, or other special rights and qualifications, limitations, or restrictions.
Except as required by law, or as otherwise provided by the board of directors of the Company,
the holders of preferred stock will have no voting rights and will not be entitled to notice of
meetings of stockholders. Holders of preferred stock will be entitled to receive, when declared by
the board of directors, out of legally available funds, dividends at the rates fixed by the board of
directors for the respective series of preferred stock, and no more, before any dividends will be
declared and paid, or set apart for payment, on common stock with respect to the same dividend
period. No shares of preferred stock have been issued as of September 30, 2020. The holders of
the Company's common stock are entitled to one vote per share and have the exclusive right to
vote for the board of directors and for all other purposes as provided by law. Subject to the rights
of holders of the Company's preferred stock, holders of common stock are entitled to receive
ratably on a per share basis such dividends and other distributions in cash, stock, or property of
the Company as may be declared by the board of directors from time to time out of the legally
available assets or funds of the Company. The opioid litigation accrual discussed in Note 14 has
not and is not expected to impact the Company's ability to pay dividends. The following
illustrates the components of Accumulated Other Comprehensive Loss, net of income taxes:
September 30, (in thousands) 2020 2019 Pension and postretirement adjustments $ (5,761) $
(5,344) Foreign currency translation (103,043) (107,252) Other (26) 631 Total accumulated other
comprehensive loss $ (108,830) $ (111,965) In November 2016, the Company's board of directors
authorized a share repurchase program allowing the Company to purchase up to $1.0 billion of
its outstanding shares of common stock, subject to market conditions. During the fiscal year
ended September 30, 2018, the Company purchased 7.7 million shares of its common stock for a
total of $663.1 million, which included $24.0 million of September 2018 purchases that cash
Related Party Transactions [Abstract]
Related Party Transactions
Related Party Transactions
12 Months Ended
Sep. 30, 2020
Related Party Transactions WBA owns more than 10% of the Company's outstanding common
stock and is, therefore, considered a related party. The Company operates under various
agreements and arrangements with WBA, including a pharmaceutical distribution agreement
pursuant to which the Company distributes pharmaceutical products to WBA and an agreement
that provides the Company the ability to access favorable economic pricing and generic products
through a generic purchasing services arrangement with Walgreens Boots Alliance Development
GmbH. Both of these agreements expire in 2026. Revenue from the various agreements and
arrangements with WBA was $63.1 billion, $60.3 billion, and $54.7 billion in the fiscal years
ended September 30, 2020, 2019, and 2018, respectively. The Company's receivable from WBA,
net of incentives, was $6.6 billion and $6.1 billion as of September 30, 2020 and 2019,
respectively.
Retirement Benefits [Abstract]
Retirement and Other Benefit Plans
Retirement and Other Benefit Plans
12 Months Ended
Sep. 30, 2020
Retirement and Other Benefit Plans The Company sponsors various retirement benefit plans and
a deferred compensation plan covering eligible employees. The Compensation and Succession
Planning Committee ("Compensation Committee") of the Company's board of directors has
delegated the administration of the Company's retirement and other benefit plans to its Benefits
Committee, an internal committee, comprised of senior finance, human resources, and legal
executives. The Benefits Committee is responsible for the investment options under the
Company's savings plans, as well as performance of the investment advisers and plan
administrators. Defined Contribution Plans The Company sponsors the AmerisourceBergen
Employee Investment Plan (the "Plan"), which is a defined contribution 401(k) plan covering
salaried and certain hourly employees. Eligible participants may contribute to the plan from 1%
to 50% of their regular compensation before taxes. Effective January 1, 2017, the Company
contributed $1.00 for each $1.00 invested by the participant up to the first 3% of the participant's
salary. Effective January 1, 2019, the Company contributes $1.00 for each $1.00 invested by the
participant up to the first 3% of the participant's salary and $0.50 for each additional $1.00
invested by the participant of up to an additional 2% of salary. An additional discretionary
contribution, in an amount not to exceed the limits established by the Internal Revenue Code
("IRC"), may also be made depending upon the Company's performance. Based on the
Company's performance in fiscal 2020, 2019, and 2018, the Company recognized an expense for
discretionary contributions to the Plan in the fiscal years ended September 30, 2020, 2019, and
2018. All contributions are invested at the direction of the employee in one or more funds. All
contributions vest immediately except for the discretionary contributions made by the Company,
which vest in full after five years of credited service. The Company also sponsors the
AmerisourceBergen Corporation Benefit Restoration Plan. This unfunded plan provides benefits
to selected key management, including all of the Company's executive officers. Effective January
1, 2017, this plan provided eligible participants with an annual amount equal to 3% of the
participant's total cash compensation to the extent that his or her compensation exceeds the
annual compensation limit established by Section 401(a) (17) of the IRC. Effective January 1,
2019, this plan provides eligible participants with an annual amount equal to 4% of the
Share-based Payment Arrangement [Abstract]
Share-Based Compensation
Share-Based Compensation
12 Months Ended
Sep. 30, 2020
Share-Based Compensation Stock Options The Company's employee stock option plans provide
for the granting of incentive and nonqualified stock options to acquire shares of common stock to
employees at a price not less than the fair market value of the common stock on the date the
option is granted. Option terms and vesting periods are determined at the date of grant by the
Compensation Committee of the board of directors. Employee options generally vest ratably, in
equal amounts, over a four three As of September 30, 2020, employee and non-employee
director stock options and restricted stock units for an additional 9.2 million shares may be
granted under the AmerisourceBergen Corporation Omnibus Incentive Plan (the "Plan"). The
estimated fair value of options granted is expensed on a straight-line basis over the requisite
service periods of the awards and are net of estimated forfeitures. The Company estimates the
fair values of option grants using a binomial option pricing model. Expected volatilities are based
upon the historical volatility of the Company's common stock and other factors, such as implied
market volatility. The Company uses historical exercise data, taking into consideration the
optionees' ages at grant date, to estimate the terms for which the options are expected to be
outstanding. The Company anticipates that it not will grant any stock options in fiscal 2021. The
risk-free rates during the terms of such options are based upon the U.S. Treasury yield curve in
effect at the time of grant. The weighted average fair values of the options granted during the
fiscal years ended September 30, 2020, 2019, and 2018 were $16.61, $18.60, and $14.16,
respectively. The following weighted average assumptions were used to estimate the fair values
of options granted: Fiscal Year Ended September 30, 2020 2019 2018 Risk-free interest rate
1.66% 2.91% 1.89% Expected dividend yield 1.86% 1.79% 1.96% Volatility of common stock
28.17% 27.67% 26.54% Expected life of the options 3.79 years 3.77 years 3.76 years During the
fiscal years ended September 30, 2020, 2019, and 2018, the Company recognized stock option
expense of $13.0 million, $21.0 million, and $22.6 million, respectively. A summary of the
Company's stock option activity and related information for its option plans for the fiscal year
ended September 30, 2020 is presented below: (in thousands, except exercise price and
contractual term) Options Weighted Weighted Aggregate Outstanding as of September 30, 2019
7,659 $83 4 years $ 35,319 Granted 383 $86 Exercised (2,242) $76 Forfeited (166) $83 Expired
Commitments and Contingencies Disclosure [Abstract]
Leases
Leases
12 Months Ended
Sep. 30, 2020
LeasesThe Company has long-term leases for facilities and equipment. In the normal course of
business, leases are generally renewed or replaced by other leases. Certain leases include
escalation clauses. The following illustrates the components of lease cost for the period
presented: (in thousands) Fiscal year ended September 30, 2020 Operating lease cost $ 118,144
Short-term lease cost 4,632 Variable lease cost 17,814 Total lease cost $ 140,590 The Company
recorded rental expense of $108.9 million and $114.9 million in the fiscal years ended September
30, 2019 and 2018, respectively. The following summarizes balance sheet information related to
operating leases: (in thousands, except for lease term and discount rate) September 30, 2020
Right of use assets Other assets $ 443,522 Lease liabilities Accrued expenses and other $ 92,587
Other long-term liabilities 385,507 Total lease liabilities $ 478,094 Weighted-average remaining
lease term 6.50 years Weighted-average discount rate 3.72% Other cash flow information related
to operating leases is as follows: (in thousands) Fiscal year ended September 30, 2020 Cash paid
for amounts included in the measurement of lease liabilities Operating lease cash payments $
115,028 Right-of-use assets obtained in exchange for lease liabilities New operating leases $
61,779 Leases recognized upon adoption of ASC 842 $ 526,281 Future minimum rental payments
under noncancellable operating leases were as follows: Payments Due by Fiscal Year (in
thousands) As of September 30, 2020 2021 $ 117,680 2022 113,632 2023 102,564 2024 93,464
2025 83,789 Thereafter 376,396 Total future undiscounted lease payments 887,525 Less: Future
payments for leases that have not yet commenced 1 (308,431) Less: Imputed interest (101,000)
Total lease liabilities $ 478,094 1 The Company has certain leases that it has executed for which it
does not control the underlying assets; therefore, lease liabilities and ROU assets were not
recorded on the Company's Consolidated Balance Sheet as of September 30, 2020. These future
commitments primarily relate to the Company's new general corporate and administrative
office. Under the prior accounting guidance, the future minimum rental payments under
noncancellable operating leases and financing obligations as of September 30, 2019 were as
follows: Payments Due by Fiscal Year (in thousands) Operating Financing Obligations 1 Total 2020
$ 94,958 $ 22,468 $ 117,426 2021 84,002 29,790 113,792 2022 72,224 36,914 109,138 2023
63,507 35,950 99,457 2024 56,377 35,276 91,653 Thereafter 177,267 270,410 447,677 Total
Restructuring and Related Activities [Abstract]
Employee Severance, Litigation, and Other
Employee Severance, Litigation, and Other
12 Months Ended
Sep. 30, 2020
Employee Severance, Litigation, and Other The following illustrates the charges incurred by the
Company relating to Employee Severance, Litigation, and Other for the periods indicated: Fiscal
Year Ended September 30, (in thousands) 2020 2019 2018 Employee severance $ 34,401 $ 34,147
$ 36,694 Litigation and opioid-related costs 6,722,346 185,145 61,527 Acquisition-related deal
and integration costs 15,958 43,184 33,912 Business transformation efforts 37,961 55,437 32,963
Other restructuring initiatives (3,359) 12,561 18,424 Total employee severance, litigation, and
other $ 6,807,307 $ 330,474 $ 183,520 Employee severance in the fiscal year ended September
30, 2020 included costs primarily related to position eliminations resulting from the Company's
decision to permanently exit the PharMEDium compounding business. Employee severance in
the fiscal year ended September 30, 2019 included costs primarily related to PharMEDium
restructuring activities, position eliminations resulting from our business transformation efforts
and the integration of H.D. Smith, and restructuring activities related to our consulting business.
Employee severance in the fiscal year ended September 30, 2018 included costs primarily related
to position eliminations resulting from the Company's business transformation efforts and
restructuring activities related to our consulting business. Litigation and opioid-related costs in
the fiscal year ended September 30, 2020 included costs primarily related to a $6.6 billion legal
accrual ($5.5 billion, net of an income tax benefit) (see Note 14) and legal fees in connection with
opioid lawsuits and investigations. Litigation and opioid-related costs in the fiscal year ended
September 30, 2019 consisted of $116.7 million of legal settlements and accruals and $68.5
million of legal fees in connection with opioid lawsuits and investigations. Litigation and opioid-
related costs in the fiscal year ended September 30, 2018 primarily related to opioid lawsuits,
investigations, and related initiatives. Acquisition-related deal and integration costs in the fiscal
year ended September 30, 2019 are primarily related to the integration of H.D. Smith. Integration
costs primarily included costs to transition servicing legacy H.D. Smith customers to existing
company distribution facilities and operating systems. Acquisition-related deal and integration
costs in the fiscal year ended September 30, 2018 were primarily related to the acquisition of
H.D. Smith. Business transformation efforts in the fiscal years ended September 30, 2020, 2019,
and 2018 were primarily related to costs associated with reorganizing the Company to further
Commitments and Contingencies Disclosure [Abstract]
Legal Matters and Contingencies
Legal Matters and Contingencies
12 Months Ended
Sep. 30, 2020
Legal Matters and Contingencies In the ordinary course of its business, the Company becomes
involved in lawsuits, administrative proceedings, government subpoenas, government
investigations, stockholder demands, and other disputes, including antitrust, commercial,
product liability, intellectual property, regulatory, employment discrimination, and other
matters. Significant damages or penalties may be sought from the Company in some matters,
and some matters may require years for the Company to resolve. The Company records a reserve
for these matters when it is both probable that a liability has been incurred and the amount of
the loss can be reasonably estimated. For those matters for which the Company has not
recognized a liability, the Company cannot predict the outcome of their impact on the Company
as uncertainty remains with regard to whether such matters will proceed to trial, whether
settlements will be reached, and the amount and terms of any such settlements. Outcomes may
include settlements in significant amounts that are not currently estimable, limitations on the
Company's conduct, the imposition of corporate integrity agreement obligations, consent
decrees, and/or other civil and criminal penalties. From time to time, the Company is also
involved in disputes with its customers, which the Company generally seeks to resolve through
commercial negotiations. If negotiations are unsuccessful, the parties may litigate the dispute or
otherwise attempt to settle the matter. With respect to the specific legal proceedings and claims
described below, unless otherwise noted, the amount or range of possible losses is not
reasonably estimable. There can be no assurance that the settlement, resolution, or other
outcome of one or more matters, including the matters set forth below, during any subsequent
reporting period will not have a material adverse effect on the Company's results of operations
or cash flows for that period or on the Company's financial condition. Opioid Lawsuits and
Investigations A significant number of counties, municipalities, and other governmental entities
in a majority of U.S. states and Puerto Rico, as well as numerous states and tribes, have filed
lawsuits in various federal, state and other courts against pharmaceutical wholesale distributors
(including the Company and certain subsidiaries, such as AmerisourceBergen Drug Corporation
("ABDC") and H.D. Smith), pharmaceutical manufacturers, retail chains, medical practices, and
physicians relating to the distribution of prescription opioid pain medications. Other lawsuits
Litigation Settlement [Abstract]
Litigation Settlements
Litigation Settlements
12 Months Ended
Sep. 30, 2020
Litigation Settlements Antitrust Settlements Numerous lawsuits have been filed against certain
brand pharmaceutical manufacturers alleging that the manufacturer, by itself or in concert with
others, took improper actions to delay or prevent generic drugs from entering the market. These
lawsuits are generally brought as class actions. The Company has not been a named a plaintiff in
any of these lawsuits, but has been a member of the direct purchasers' class (i.e., those
purchasers who purchase directly from these pharmaceutical manufacturers). None of the
lawsuits has gone to trial, but some have settled in the past with the Company receiving proceeds
Segment Reporting [Abstract]
Business Segment Information
Business Segment Information
12 Months Ended
Sep. 30, 2020
Business Segment Information The Company is organized based upon the products and services
it provides to its customers. The Company's operations are comprised of the Pharmaceutical
Distribution Services reportable segment and other operating segments that are not significant
enough to require separate reportable segment disclosure and, therefore, have been included in
Other for the purpose of reportable segment presentation. Other consists of operating segments
that focus on global commercialization services and animal health (MWI Animal Health). The
operating segments that focus on global commercialization services include AmerisourceBergen
Consulting Services ("ABCS") and World Courier. The chief operating decision maker ("CODM") of
the Company is the Chairman, President & Chief Executive Officer of the Company, whose
function is to allocate resources to, and assess the performance of, the Company's operating
segments. The CODM does not review assets by operating segment for the purpose of assessing
performance or allocating resources. The Pharmaceutical Distribution Services reportable
segment distributes a comprehensive offering of brand-name, specialty brand-name and generic
pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and
equipment, and related services to a wide variety of healthcare providers, including acute care
hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies,
medical clinics, long-term care and alternate site pharmacies, and other customers. Through a
number of operating businesses, the Pharmaceutical Distribution Services reportable segment
provides pharmaceutical distribution (including plasma and other blood products, injectible
pharmaceuticals, vaccines, and other specialty pharmaceutical products) and additional services
to physicians who specialize in a variety of disease states, especially oncology, and to other
healthcare providers, including hospitals and dialysis clinics. Additionally, the Pharmaceutical
Distribution Services reportable segment provides data analytics, outcomes research, and
additional services for biotechnology and pharmaceutical manufacturers. The Pharmaceutical
Distribution Services reportable segment also provides pharmacy management, staffing and
additional consulting services, and supply management software to a variety of retail and
institutional healthcare providers. Additionally, it delivers packaging solutions to institutional and
retail healthcare providers. MWI is a leading animal health distribution company in the United
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments
Fair Value of Financial Instruments
12 Months Ended
Sep. 30, 2020
Fair Value of Financial Instruments The recorded amounts of the Company's cash and cash
equivalents, accounts receivable, and accounts payable as of September 30, 2020 and 2019
approximate fair value based upon the relatively short-term nature of these financial
instruments. Within Cash and Cash Equivalents, the Company had $2,548.0 million and $1,552.0
million of investments in money market accounts as of September 30, 2020 and 2019. The fair
value of the money market accounts was determined based upon unadjusted quoted prices in
active markets for identical assets, otherwise known as Level 1 inputs. The recorded amount of
long-term debt (see Note 7) and the corresponding fair value as of September 30, 2020 were
$3,618.3 million and $4,026.4 million, respectively. The recorded amount of long-term debt and
the corresponding fair value as of September 30, 2019 were $4,033.9 million and $4,158.4
million, respectively. The fair value of long-term debt was determined based upon inputs other
than quoted prices, otherwise known as Level 2 inputs.
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
12 Months Ended
Sep. 30, 2020
Quarterly Financial Information (Unaudited) Fiscal Year Ended September 30, 2020 (in thousands,
except per share amounts) First Second Third Fourth Fiscal Revenue $ 47,864,742 $ 47,417,639 $
45,366,777 $ 49,244,768 $ 189,893,926 Gross profit (a) $ 1,231,214 $ 1,388,107 $ 1,225,716 $
1,346,847 $ 5,191,884 Distribution, selling, and administrative expenses; depreciation; and
amortization 790,468 787,208 762,300 818,303 3,158,279 Employee severance, litigation, and
other (b) 39,309 67,732 58,585 6,641,681 6,807,307 Impairment of PharMEDium assets 138,000
223,652 — — 361,652 Operating income (loss) $ 263,437 $ 309,515 $ 404,831 $ (6,113,137) $
(5,135,354) Net income (loss) (c) $ 186,568 $ 971,111 $ 287,268 $ (4,844,505) $ (3,399,558) Net
income (loss) attributable to AmerisourceBergen Corporation (c) $ 187,640 $ 960,277 $ 289,439 $
(4,846,072) $ (3,408,716) Earnings per share operations: Basic $ 0.91 $ 4.68 $ 1.42 $ (23.74) $
(16.65) Diluted $ 0.90 $ 4.64 $ 1.41 $ (23.74) $ (16.65)
__________________________________________________________ (a) The first, second, and
fourth quarters of the fiscal year ended September 30, 2020 include gains from antitrust litigation
settlements of $8.5 million, $0.1 million, and $0.5 million, respectively. The first, second, and
third quarters of the fiscal year ended September 30, 2020 include LIFO expense of $13.3 million,
$23.9 million, and $6.1 million. The fourth quarter of the fiscal year ended September 30, 2020
includes LIFO credit of $35.8 million. The first quarter of the fiscal year ended September 30,
2020 includes PharMEDium remediation costs of $7.1 million. The second and third quarters of
the fiscal year ended September 30, 2020 include PharMEDium shutdown costs of $5.0 million
and $0.4 million, respectively. (b) The fourth quarter of the fiscal year ended September 30, 2020
includes a $6.6 billion legal expense accrual in connection with opioid lawsuits. (c) The second
quarter of the fiscal year ended September 30, 2020 includes discrete tax benefits of $741.0
million primarily related to the permanent shutdown of the PharMEDium business. The third
quarter of the fiscal year ended September 30, 2020 includes a loss on the early retirement of
debt of $22.2 million. The fourth quarter of the fiscal year ended September 30, 2020 includes
tax benefits of $1.1 billion relating to the $6.6 billion legal expense accrual in connection with
opioid lawsuits, $360.7 million relating to Switzerland tax reform, and a $20.4 million adjustment
to the discrete tax benefits previously recognized primarily attributable to the income tax
Subsequent Events [Abstract]
Subsequent Event
Subsequent Event
12 Months Ended
Sep. 30, 2020
Subsequent EventIn November 2020, the Company's board of directors increased the quarterly
dividend paid on common stock by 5% and declared a regular quarterly cash dividend of $0.44
per share, payable on November 30, 2020 to shareholders of record on November 16, 2020.
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule II - Valuation and Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Sep. 30, 2020
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In thousands) Balance at Charged to
Deductions- Balance at Year Ended September 30, 2020 Allowances for returns and doubtful
accounts $ 1,223,887 $ 4,019,830 $ (3,826,409) $ 1,417,308 Year Ended September 30, 2019
Allowances for returns and doubtful accounts $ 1,049,901 $ 3,720,642 $ (3,546,656) $ 1,223,887
Year Ended September 30, 2018 Allowances for returns and doubtful accounts $ 1,068,251 $
3,397,562 $ (3,415,912) $ 1,049,901
__________________________________________________________ (1) Represents the
provision for returns and doubtful accounts. (2) Represents reductions to the returns allowance
and accounts receivable written off during year, net of recoveries. (3) Includes an allowance for
doubtful accounts for long-term accounts receivable within Other Assets on the Consolidated
Balance Sheets of $981 thousand and $13,568 thousand as of September 30, 2019, and 2018,
respectively.
Accounting Policies [Abstract]
Basis of Presentation
Use of Estimates
Reclassifications
Summary of Significant Accounting Policies (Policies)
Recently Adopted Accounting Pronouncements
Business Combinations
Cash Equivalents
Concentrations of Credit Risk and Allowance for Doubtful Accounts
Contingencies
Derivative Financial Instruments
Foreign Currency
Goodwill and Other Intangible Assets
Income Taxes
Inventories
Investments, VIE
Investments, Equity Securities
Manufacturer Incentives
Leases
Property and Equipment
Revenue Recognition
Share-Based Compensation
Shipping and Handling Costs
Supplier Reserves
12 Months Ended
Sep. 30, 2020
The accompanying financial statements present the consolidated financial position, results of
operations, and cash flows of the Company as of the dates and for the periods indicated. All
intercompany accounts and transactions have been eliminated in consolidation.
The preparation of financial statements in conformity with U.S. generally accepted accounting
principles ("GAAP") requires management to make estimates and assumptions that affect
amounts reported in the financial statements and accompanying notes. Actual amounts could
differ from these estimated amounts due to uncertainties inherent in such estimates.
Management periodically evaluates estimates used in the preparation of the financial statements
for continued reasonableness.
Certain reclassifications have been made to prior-period amounts in order to conform to the
current year presentation. In March 2020, the World Health Organization ("WHO") declared a
global pandemic attributable to the outbreak and continued spread of COVID-19. In connection
with the mitigation and containment procedures recommended by the WHO and imposed by
federal, state, and local governmental authorities, the Company implemented measures
designed to keep its employees safe and address business continuity issues at its distribution
centers and other locations. The Company continues to evaluate and plan for the potential
effects of a prolonged disruption and the related impacts on its revenue, results of operations,
and cash flows. These items include, but are not limited to, the financial condition of its
customers and the realization of accounts receivable, decreased availability and demand for its
products and services, and delays related to current and future projects. While the Company's
operational and financial performance may be significantly impacted by COVID-19, it is not
possible for the Company to predict the duration or magnitude of the outbreak and whether it
could have a material adverse impact on the Company's financial position, results of operations,
or cash flows. See Risk Factor - We face risks related to health epidemics and pandemics, and the
continued spread of COVID-19 is adversely affecting our business.
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic
606)" ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in
Accounting Standards Codification ("ASC") 605 - "Revenue Recognition" and most industry-
specific guidance throughout the Codification. ASU 2014-09 outlines a single comprehensive
model for entities to use in accounting for revenue arising from contracts with customers. The
standard's core principle is that a company should recognize revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which
the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB
issued ASU No. 2016-08, "Revenue from Contracts with Customers (Topic 606) - Principal versus
Agent Considerations" ("ASU 2016-08"), which clarified the implementation guidance for
principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU No.
2016-10, "Revenue from Contracts with Customers (Topic 606) - Identifying Performance
Obligations and Licensing" ("ASU 2016-10"), which amended the guidance in ASU 2014-09 related
to identifying performance obligations and accounting for licenses of intellectual property. The
Company was required to adopt ASU 2016-08 and ASU 2016-10 with ASU 2014-09, collectively
ASC 606. The Company adopted ASC 606 as of October 1, 2018 on a modified retrospective basis
for all open contracts as of October 1, 2018. The adoption had an immaterial impact on the
Company's October 1, 2018 retained earnings and did not and will not have a material impact on
the Company's revenues, results of operations, or cash flows. The Company did not record any
material contract assets, contract liabilities, or deferred contract costs in its Consolidated Balance
Sheet upon adoption. The Company elected the practical expedient to expense costs to obtain a
contract when incurred when the amortization period would have been one year or less.
Additionally, the Company elected the practical expedients to not disclose the value of
unsatisfied performance obligations for (i) contracts with an original expected length of one year
or less, (ii) contracts for which the Company recognizes revenue at the amount to which it has
the right to invoice for services performed, and (iii) for contracts for which the variable
consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly
unsatisfied promise to transfer a distinct good or service that forms part of a single performance
The assets acquired and liabilities assumed from the acquired business are recorded at fair value,
with the residual of the purchase price recorded as goodwill. The results of operations of the
acquired businesses are included in the Company's operating results from the dates of
acquisition.
The Company considers all highly liquid investments with original maturities of three months or
less to be cash equivalents. The carrying value of cash equivalents approximates fair value.
The Company sells its inventories to a large number of customers in the healthcare industry that
include institutional and retail healthcare providers. Institutional healthcare providers include
acute care hospitals, health systems, mail order pharmacies, long-term care and other alternate
care pharmacies and providers of pharmacy services to such facilities, and physician offices.
Retail healthcare providers include national and regional retail drugstore chains, independent
community pharmacies, pharmacy departments of supermarkets and mass merchandisers, and
veterinarians. The financial condition of the Company's customers can be affected by changes in
government reimbursement policies as well as by other economic pressures in the healthcare
industry. The Company's trade accounts receivables are exposed to credit risk. Revenue from the
various agreements and arrangements with the Company's largest customer in the fiscal year
ended September 30, 2020, Walgreens Boots Alliance, Inc. ("WBA"), accounted for approximately
33% of revenue and represented approximately 47% of accounts receivable, net of incentives, as
of September 30, 2020. Express Scripts, Inc., the Company's second largest customer in the fiscal
year ended September 30, 2020, accounted for approximately 12% of revenue and represented
approximately 7% of accounts receivable as of September 30, 2020. The Company generally does
not require collateral for trade receivables. In determining the appropriate allowance for
doubtful accounts, the Company considers a combination of factors, such as the aging of trade
receivables, industry trends, and its customers' financial strength, credit standing, and payment
and default history. Changes in these factors, among others, may lead to adjustments in the
Company's allowance for doubtful accounts. The calculation of the required allowance requires
judgment by Company management as to the impact of those and other factors on the ultimate
realization of its trade receivables. Each of the Company's business units performs ongoing credit
evaluations of its customers' financial condition and maintains reserves for probable bad debt
losses based upon historical experience and for specific credit problems when they arise. There
were no significant changes to this process during the fiscal years ended September 30, 2020,
2019, and 2018, and bad debt expense was computed in a consistent manner during these
periods. The Company maintains cash and cash equivalents with several financial institutions.
Deposits held with banks may exceed the amount of insurance provided on such deposits. These
Loss Contingencies: In the ordinary course of its business, the Company becomes involved in
lawsuits, administrative proceedings, government subpoenas, government investigations,
stockholder demands, and other disputes, including antitrust, commercial, product liability,
intellectual property, regulatory, employment discrimination, and other matters. Significant
damages or penalties may be sought from the Company in some matters, and some matters may
require years for the Company to resolve. The Company records a liability when it is both
probable that a loss has been incurred and the amount can be reasonably estimated. The
Company also performs an assessment of the materiality of loss contingencies where a loss is
either not probable or it is reasonably possible that a loss could be incurred in excess of amounts
accrued. If a loss or an additional loss has at least a reasonable possibility of occurring and the
impact on the financial statements would be material, the Company provides disclosure of the
loss contingency in the notes to its financial statements. The Company reviews all contingencies
at least quarterly to determine whether the likelihood of loss has changed and to assess whether
a reasonable estimate of the loss or the range of the loss can be made. Among the loss
contingencies that the Company considered in accordance with the foregoing in connection with
the preparation of the accompanying financial statements were the opioid matters described in
Note 14. Gain Contingencies: The Company records gain contingencies when they are realized.
Gains from antitrust litigation settlements are realized upon the receipt of cash and recorded as a
reduction to cost of goods sold because they represent a recovery of amounts historically paid to
manufacturers to originally acquire the pharmaceuticals that were the subject of the antitrust
litigation settlements (see Note 15).
The Company records all derivative financial instruments on the balance sheet at fair value and
complies with established criteria for designation and effectiveness of hedging relationships. The
Company's policy prohibits it from entering into derivative financial instruments for speculative
or trading purposes.
When the functional currency of the Company's foreign operations is the applicable local
currency, assets and liabilities are translated into U.S. dollars using the current exchange rates in
effect at the balance sheet date, while revenues and expenses are translated at the weighted
average exchange rates for the period. The resulting translation adjustments are recorded as a
component of Accumulated Other Comprehensive Loss within Stockholders' Equity.
Goodwill arises from acquisitions or consolidations of specific operating companies and is
assigned to the reporting unit in which a particular operating company resides. The Company
identifies its reporting units based upon the Company's management reporting structure,
beginning with its operating segments. The Company aggregates two or more components
within an operating segment that have similar economic characteristics. The Company evaluates
whether the components within its operating segments have similar economic characteristics,
which include the similarity of long-term gross margins, the nature of the components' products,
services, and production processes, the types of customers and the methods by which products
or services are delivered to customers, and the components' regulatory environment. The
Company's reporting units include Pharmaceutical Distribution Services, Profarma Distribuidora
de Produtos Farmacêuticos S.A. ("Profarma"), AmerisourceBergen Consulting Services ("ABCS"),
World Courier, and MWI Animal Health ("MWI"). Goodwill and other intangible assets with
indefinite lives, such as certain trademarks and trade names, are not amortized; rather, they are
tested for impairment at least annually. For the purpose of these impairment tests, the Company
can elect to perform a qualitative assessment to determine if it is more likely than not that the
fair values of its reporting units and indefinite-lived intangible assets are less than the respective
carrying values of those reporting units and indefinite-lived intangible assets, respectively. Such
qualitative factors can include, among others, industry and market conditions, overall financial
performance, and relevant entity-specific events. If the Company concludes based on its
qualitative assessment that it is more likely than not that the fair value of a reporting unit is less
than its carrying value, it performs a quantitative analysis. The Company elected to perform a
qualitative impairment assessment of goodwill and indefinite-lived intangible assets in the fourth
quarter of fiscal 2020, with the exception of its testing of goodwill and indefinite-lived intangibles
in the MWI and Profarma reporting units. The Company elected to perform a qualitative
impairment assessment of goodwill and indefinite-lived intangible assets in the fourth quarter of
fiscal 2019, with the exception of the its testing of goodwill in the Profarma reporting unit. In the
fourth quarter of fiscal 2018, the Company elected to bypass performing the qualitative
assessment and went directly to performing its annual quantitative assessments of goodwill and
The Company accounts for income taxes using a method that requires recognition of deferred tax
assets and liabilities for expected future tax consequences of temporary differences that
currently exist between tax bases and financial reporting bases of the Company's assets and
liabilities (commonly known as the asset and liability method). In assessing the need to establish
a valuation allowance on deferred tax assets, the Company considers whether it is more likely
than not that some portion or all of the deferred tax assets will not be realized. The Company
recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the
tax position will be sustained upon examination by the taxing authorities, including settlements
with tax authorities or resolutions of any related appeals or litigation processes, based upon the
technical merits of the position. Tax benefits associated with uncertain tax positions that have
met the recognition criteria are measured and recorded based upon the highest probable
outcome that is more than 50% likely to be realized after full disclosure and resolution of a tax
examination.
Inventories are stated at the lower of cost or market. Cost for approximately 70% and 75% of the
Company's inventories as of September 30, 2020 and 2019, respectively, has been determined
using the last-in, first-out ("LIFO") method. If the Company had used the first-in, first-out method
of inventory valuation, which approximates current replacement cost, inventories would have
been approximately $1,519.2 million and $1,511.8 million higher than the amounts reported as
of September 30, 2020 and 2019, respectively. The Company recorded LIFO expense of $7.4
million and $67.3 million in the fiscal years ended September 30, 2020 and 2018, respectively,
and a LIFO credit of $22.5 million in the fiscal year ended September 30, 2019. The annual LIFO
provision is affected by manufacturer pricing practices, which may be impacted by market and
other external influences, changes in inventory quantities, and product mix, many of which are
difficult to predict. Changes to any of the above factors can have a material impact to the
Company's annual LIFO provision.
The Company first evaluates its investments in accordance with the variable interest model to
determine whether it has a controlling financial interest in an investment. This evaluation is
made as of the date on which the Company makes its initial investment, and subsequent
evaluations are made if the structure of the investment changes. If it has determined that an
investment is a variable interest entity ("VIE"), the Company evaluates whether the VIE is
required to be consolidated. When the Company holds rights that give it the power to direct the
activities of an entity that most significantly impact the entity's economic performance,
combined with the obligation to absorb an entity's losses and the right to receive benefits, the
Company consolidates a VIE. If it is determined that an investment is not a VIE, the Company
then evaluates its investments under the voting interest model and generally consolidates
investments in which it holds an ownership interest of greater than 50%. When the Company
consolidates less-than-wholly-owned subsidiaries, it presents its noncontrolling interest in its
consolidated financial statements.
For equity securities without a readily determinable fair value, the Company uses the fair value
measurement alternative and measures the securities at cost less impairment, if any, including
adjustments for observable price changes in orderly transactions for an identical or similar
investment of the same issuer. For investments in which the Company can exercise significant
influence but does not control, it uses the equity method of accounting. The Company's share of
earnings and losses is recorded in Other (Income) Loss in the Consolidated Statements of
Operations. The Company monitors its investments for impairment by considering factors such as
the operating performance of the investment and current economic and market conditions.
The Company considers fees and other incentives received from its suppliers relating to the
purchase or distribution of inventory to represent product discounts, and, as a result, they are
recognized within cost of goods sold upon the sale of the related inventory.
The Company is often involved in the construction of its facilities. Prior to October 1, 2019, in
certain cases, the Company made payments for certain structural components included in the
lessor's construction of the leased assets, which resulted in the Company being deemed the
owner of the leased assets for accounting purposes. As a result, regardless of the significance of
the payments, ASC 840, Leases, defined those payments as automatic indicators of ownership
and required the Company to capitalize the lessor's total project cost with a corresponding
financing obligation. Upon completion of the lessor's project, the Company performed a sale-
leaseback analysis pursuant to ASC 840 to determine if these assets and the related financing
obligations could be derecognized from the Company's Consolidated Balance Sheet. If the
Company was deemed to have had "continuing involvement," the leased assets and the related
financing obligations remained on the Company's Consolidated Balance Sheet and were
amortized over the life of the assets and the lease term, respectively. All other leases were
considered operating leases in accordance with ASC 840. Assets subject to an operating lease and
the related lease payments were not recorded on the Company's Consolidated Balance Sheet.
Rent expense was recognized on a straight-line basis over the expected lease term and was
recorded in Distribution, Selling, and Administrative in the Company's Consolidated Statements
of Operations. Subsequent to the adoption of ASC 842 on October 1, 2019, at the inception of an
arrangement, the Company determines whether the arrangement is or contains a lease based on
the facts and circumstances present. Leases are classified as either finance or operating, with
classification affecting the pattern of expense recognition in the income statement. At the lease
commencement date, operating and finance lease liabilities and their corresponding ROU assets
are recorded based on the present value of lease payments over the expected lease term. The
interest rate implicit in lease contracts is typically not readily determinable and, as such, the
Company uses its incremental borrowing rate to discount the lease liabilities, which is the rate
incurred to borrow on a collateralized basis over a similar term in a similar economic
environment. Certain adjustments to the ROU asset may be required for items such as incentives
received. The Company does not recognize on the balance sheet leases with terms of one year or
less. The Company has operating leases that are primarily comprised of buildings, office
Property and equipment are stated at cost and depreciated using the straight-line method over
the estimated useful lives of the assets, which range from 3 to 40 years for buildings and
improvements and from 3 to 10 years for machinery, equipment, and other. The costs of repairs
and maintenance are charged to expense as incurred. The Company capitalizes project costs
relating to computer software developed or obtained for internal use when the activities related
to the project reach the application development stage. Costs that are associated with
preliminary stage activities, training, maintenance, and all other post-implementation stage
activities are expensed as they are incurred. Software development costs are depreciated using
the straight-line method over the estimated useful lives, which range from 3 to 10 years.
The Company's revenues are primarily generated from the distribution of pharmaceutical
products. The Company also generates revenues from global commercialization services, which
include clinical trial support, post-approval and commercialization support, and global specialty
transportation and logistics for the biopharmaceutical industry. See Note 16 for the Company's
disaggregated revenue. The Company recognizes revenue related to the distribution of products
at a point in time when title and control transfers to customers and there is no further obligation
to provide services related to such products. Service revenue is recognized over the period that
services are provided to the customer. The Company is generally the principal in a transaction;
therefore, revenue is primarily recorded on a gross basis. When the Company is the principal in a
transaction, it has determined that it controls the ability to direct the use of the product or
service prior to the transfer to a customer, it is primarily responsible for fulfilling the promise to
provide the product or service to its customer, it has discretion in establishing pricing, and it
controls the relationship with the customer. Revenue is recognized at the amount of
consideration expected to be received. For the distribution business, revenue is primarily
generated from a contract related to a confirmed purchase order with a customer in a
distribution arrangement and is net of estimated sales returns and allowances, other customer
incentives, and sales tax.
The Company accounts for the compensation cost of all share-based payments at fair value. The
Company estimates the fair value of option grants using a binomial option pricing model. The fair
value of restricted stock units and performance stock units is based upon the grant date market
price of the Company’s common stock. Share-based compensation expense is recognized over
the requisite service period within Distribution, Selling, and Administrative in the Consolidated
Statements of Operations to correspond with the same line item as the cash compensation paid
to employees. Compensation expense associated with nonvested performance stock units is
dependent upon the Company's periodic assessment of the probability of the targets being
achieved and its estimate of the number of shares that will ultimately be issued. The income tax
effects of awards are recognized when the awards vest or are settled and are recognized in
Income Tax Expense in the Company’s Consolidated Statements of Operations and in cash flows
from operations in the Consolidated Statements of Cash Flows.
Shipping and handling costs include all costs to warehouse, pick, pack, and deliver inventory to
customers.
The Company establishes reserves against amounts due from its suppliers relating to various
price and rebate incentives, including deductions or billings taken against payments otherwise
due to them from the Company. These reserve estimates are established based upon the
judgment of Company management after carefully considering the status of current outstanding
claims, historical experience with the suppliers, the specific incentive programs, and any other
pertinent information available to the Company. The Company evaluates the amounts due from
its suppliers on a continual basis and adjusts the reserve estimates when appropriate based upon
changes in factual circumstances. The ultimate outcome of any outstanding claim may be
different than the Company's estimate.
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities
Variable Interest Entity (Tables)
12 Months Ended
Sep. 30, 2020
The following assets and liabilities of Profarma are included in the Company's Consolidated
Balance Sheet: (in thousands) September 30, September 30, Cash and cash equivalents $ 96,983
$ 9,431 Accounts receivables, net 120,486 154,491 Inventories 144,059 185,602 Prepaid expenses
and other 52,885 64,119 Property and equipment, net 23,584 30,961 Goodwill 82,309 82,309
Other intangible assets 73,543 74,429 Other long-term assets 53,513 9,169 Total assets $ 647,362
$ 610,511 Accounts payable $ 141,147 $ 165,053 Accrued expenses and other 34,415 49,191
Short-term debt 98,399 106,439 Long-term debt 44,144 60,973 Deferred income taxes 38,854
42,371 Other long-term liabilities 43,413 5,303 Total liabilities $ 400,372 $ 429,330
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment
Property, Plant, and Equipment (Tables)
12 Months Ended
Sep. 30, 2020
The following table summarizes the Company's property and equipment balances for the periods
indicated: (in thousands) September 30, September 30, Property and equipment, at cost: Land $
39,572 $ 44,142 Buildings and improvements 586,551 942,129 Machinery, equipment, and other
2,618,354 2,362,869 Total property and equipment 3,244,477 3,349,140 Less accumulated
depreciation (1,759,669) (1,578,624) Property and equipment, net $ 1,484,808 $ 1,770,516
Income Tax Disclosure [Abstract]
Domestic and foreign income from continuing operations before income taxes
Income tax provision
Reconciliation of the effective income tax rate
Significant components of deferred tax liabilities (assets)
Income Taxes (Tables)
Reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding
interest and penalties
12 Months Ended
Sep. 30, 2020
The following table summarizes the Company's (loss) income before income taxes for the periods
indicated: Fiscal Year Ended September 30, (in thousands) 2020 2019 2018 Domestic $
(5,961,269) $ 336,150 $ 704,935 Foreign 667,438 630,956 472,488 Total $ (5,293,831) $ 967,106 $
1,177,423
The components of the Company's consolidated income tax (benefit) expense are summarized in
the following table for the periods indicated: Fiscal Year Ended September 30, (in thousands)
2020 2019 2018 Current (benefit) provision: Federal $ (473,751) $ (12,801) $ 247,755 State and
local 30,236 15,246 39,328 Foreign 94,213 81,989 69,972 Total current (benefit) provision
(349,302) 84,434 357,055 Deferred (benefit) provision: Federal (914,613) 61,819 (828,023) State
and local (264,409) (31,086) 33,887 Foreign (365,949) (2,196) (1,388) Total deferred (benefit)
provision (1,544,971) 28,537 (795,524) (Benefit) provision for income taxes $ (1,894,273) $
112,971 $ (438,469)
A reconciliation of the statutory U.S. federal income tax rate to the Company's consolidated
effective income tax rate is as follows for the periods indicated: Fiscal Year Ended September 30,
2020 2019 2018 Statutory U.S. federal income tax rate 21.0% 21.0% 24.5% State and local income
tax rate, net of federal tax benefit (0.5) 2.4 (0.1) Foreign tax rate differential 1.0 (6.7) (6.2)
Litigation settlements and accruals (see Note 14) (6.2) 0.1 (6.3) U.S. Tax reform — (3.6) (52.0)
PharMEDium worthless stock deduction 12.4 — — Swiss Tax reform 6.8 — — CARES Act 1.2 — —
Goodwill impairment (see Note 1) — — 1.7 Capital gain on distribution — — 3.6 Other 0.1 (1.5)
(2.4) Effective income tax rate 35.8% 11.7% (37.2)%
Significant components of the Company's deferred tax liabilities (assets) are as follows:
September 30, (in thousands) 2020 2019 Inventories $ 1,309,815 $ 1,293,075 Property and
equipment 94,521 143,851 Goodwill and other intangible assets 613,123 709,015 Right-of-use
assets (Note 12) 113,220 — Other 1,888 1,892 Gross deferred tax liabilities 2,132,567 2,147,833
Net operating loss and tax credit carryforwards (263,171) (318,868) Allowance for doubtful
accounts (20,051) (22,544) Accrued expenses (21,284) (33,312) Accrued litigation liability
(1,078,555) — Employee and retiree benefits (13,891) (12,420) Goodwill and other intangible
assets (582,406) — Lease liabilities (Note 12) (121,182) — Share-based compensation (38,914)
(39,961) Other (79,916) (60,215) Gross deferred tax assets (2,219,370) (487,320) Valuation
allowance for deferred tax assets 411,648 199,682 Deferred tax assets, net of valuation
allowance (1,807,722) (287,638) Net deferred tax liabilities $ 324,845 $ 1,860,195
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding
interest and penalties, for the periods indicated is as follows: Fiscal Year Ended September 30, (in
thousands) 2020 2019 2018 Unrecognized tax benefits at beginning of period $ 105,657 $ 98,124
$ 323,869 Additions of tax positions of the current year 385,797 18,819 2,804 Additions to tax
positions of the prior years 5,599 751 558 Reductions of tax positions of the prior years (6,480)
(10,317) (224,878) Settlements with taxing authorities — — (1,847) Expiration of statutes of
limitations (12,222) (1,720) (2,382) Unrecognized tax benefits at end of period $ 478,351 $
105,657 $ 98,124
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying value of goodwill
Other intangible assets - indefinite-lived
Other intangible assets - finite-lived
Goodwill and Other Intangible Assets (Tables)
12 Months Ended
Sep. 30, 2020
The following is a summary of the changes in the carrying value of goodwill, by reportable
segment, for the fiscal years ended September 30, 2020 and 2019: (in thousands) Pharmaceutical
Other Total Goodwill as of September 30, 2018 $ 4,852,775 $ 1,811,497 $ 6,664,272 Goodwill
recognized in connection with acquisitions — 43,418 43,418 Foreign currency translation —
(2,183) (2,183) Goodwill as of September 30, 2019 4,852,775 1,852,732 6,705,507 Foreign
currency translation — 1,212 1,212 Goodwill as of September 30, 2020 $ 4,852,775 $ 1,853,944 $
6,706,719
The following is a summary of other intangible assets: September 30, 2020 September 30, 2019
(dollars in thousands) Weighted Average Remaining Useful Life Gross Accumulated Net Gross
Accumulated Net Indefinite-lived trade names $ 685,312 $ — $ 685,312 $ 685,324 $ — $ 685,324
Finite-lived: Customer relationships 13 years 1,671,888 (565,372) 1,106,516 1,931,212 (489,471)
1,441,741 Trade names and other 14 years 210,394 (116,115) 94,279 271,521 (103,750) 167,771
Total other intangible assets $ 2,567,594 $ (681,487) $ 1,886,107 $ 2,888,057 $ (593,221) $
2,294,836
The following is a summary of other intangible assets: September 30, 2020 September 30, 2019
(dollars in thousands) Weighted Average Remaining Useful Life Gross Accumulated Net Gross
Accumulated Net Indefinite-lived trade names $ 685,312 $ — $ 685,312 $ 685,324 $ — $ 685,324
Finite-lived: Customer relationships 13 years 1,671,888 (565,372) 1,106,516 1,931,212 (489,471)
1,441,741 Trade names and other 14 years 210,394 (116,115) 94,279 271,521 (103,750) 167,771
Total other intangible assets $ 2,567,594 $ (681,487) $ 1,886,107 $ 2,888,057 $ (593,221) $
2,294,836
Debt Disclosure [Abstract]
Debt Instruments
Debt (Tables)
12 Months Ended
Sep. 30, 2020
Debt consisted of the following: September 30, (in thousands) 2020 2019 Revolving credit note $
— $ — Term loan due October 2020 399,982 399,778 Overdraft facility due 2021 (£30,000) —
32,573 Receivables securitization facility due 2022 350,000 350,000 Multi-currency revolving
credit facility due 2024 — — $500,000, 3.50% senior notes due 2021 — 498,908 $500,000, 3.40%
senior notes due 2024 498,232 497,744 $500,000, 3.25% senior notes due 2025 496,990 496,311
$750,000, 3.45% senior notes due 2027 743,940 743,099 $500,000, 2.80% senior notes due 2030
494,045 — $500,000, 4.25% senior notes due 2045 494,730 494,514 $500,000, 4.30% senior
notes due 2047 492,755 492,488 Nonrecourse debt 148,846 167,477 Total debt 4,119,520
4,172,892 Less AmerisourceBergen Corporation current portion 399,982 32,573 Less nonrecourse
current portion 101,277 106,439 Total, net of current portion $ 3,618,261 $ 4,033,880
Equity [Abstract]
Components of accumulated other comprehensive loss
Components of diluted weighted average shares outstanding
Stockholders' Equity and Weighted Average Common Shares Outstanding (Tables)
12 Months Ended
Sep. 30, 2020
The following illustrates the components of Accumulated Other Comprehensive Loss, net of
income taxes: September 30, (in thousands) 2020 2019 Pension and postretirement adjustments
$ (5,761) $ (5,344) Foreign currency translation (103,043) (107,252) Other (26) 631 Total
accumulated other comprehensive loss $ (108,830) $ (111,965)
The following illustrates the components of diluted weighted average shares outstanding: Fiscal
Year Ended September 30, (in thousands) 2020 2019 2018 Weighted average common shares
outstanding - basic 204,783 210,165 217,872 Effect of dilutive securities - stock options and
restricted stock units — 1,675 2,464 Weighted average common shares outstanding - diluted
204,783 211,840 220,336
Share-based Payment Arrangement [Abstract]
Weighted average assumptions
Stock options
Nonvested options
Nonvested restricted shares
Nonvested performance stock units
Share-Based Compensation (Tables)
12 Months Ended
Sep. 30, 2020
The following weighted average assumptions were used to estimate the fair values of options
granted: Fiscal Year Ended September 30, 2020 2019 2018 Risk-free interest rate 1.66% 2.91%
1.89% Expected dividend yield 1.86% 1.79% 1.96% Volatility of common stock 28.17% 27.67%
26.54% Expected life of the options 3.79 years 3.77 years 3.76 years
A summary of the Company's stock option activity and related information for its option plans for
the fiscal year ended September 30, 2020 is presented below: (in thousands, except exercise
price and contractual term) Options Weighted Weighted Aggregate Outstanding as of September
30, 2019 7,659 $83 4 years $ 35,319 Granted 383 $86 Exercised (2,242) $76 Forfeited (166) $83
Expired (75) $95 Outstanding as of September 30, 2020 5,559 $86 3 years $ 62,770 Exercisable as
of September 30, 2020 3,430 $88 2 years $ 33,107 Expected to vest after September 30, 2020
2,072 $83 5 years $ 29,032
A summary of the status of the Company's nonvested options as of September 30, 2020 and
changes during the fiscal year ended September 30, 2020 is presented below: (in thousands,
except grant date fair value) Options Weighted Nonvested as of September 30, 2019 3,265 $16
Granted 383 $17 Vested (1,353) $16 Forfeited (166) $16 Nonvested as of September 30, 2020
2,129 $16
A summary of the status of the Company's nonvested restricted stock units as of September 30,
2020 and changes during the fiscal year ended September 30, 2020 are presented below: (in
thousands, except grant date fair value) Restricted Weighted Nonvested as of September 30,
2019 1,222 $81 Granted 760 $86 Vested (346) $76 Forfeited (124) $84 Nonvested as of
September 30, 2020 1,512 $85
A summary of the status of the Company's nonvested performance stock units as of September
30, 2020 and changes during the fiscal year ended September 30, 2020 is presented below (based
upon target award amounts). (in thousands, except grant date fair value) Performance Weighted
Nonvested as of September 30, 2019 283 $84 Granted 150 $86 Vested (139) $78 Forfeited (6) $89
Nonvested as of September 30, 2020 288 $88
Commitments and Contingencies Disclosure [Abstract]
Lease cost
Summarized balance sheet information
Future minimum renal payments, operating leases
Future minimum rental payments, operating leases
Leases (Tables)
Future minimum rental payments, financing obligations
12 Months Ended
Sep. 30, 2020
The following illustrates the components of lease cost for the period presented: (in thousands)
Fiscal year ended September 30, 2020 Operating lease cost $ 118,144 Short-term lease cost 4,632
Variable lease cost 17,814 Total lease cost $ 140,590 Other cash flow information related to
operating leases is as follows: (in thousands) Fiscal year ended September 30, 2020 Cash paid for
amounts included in the measurement of lease liabilities Operating lease cash payments $
115,028 Right-of-use assets obtained in exchange for lease liabilities New operating leases $
61,779 Leases recognized upon adoption of ASC 842 $ 526,281
The following summarizes balance sheet information related to operating leases: (in thousands,
except for lease term and discount rate) September 30, 2020 Right of use assets Other assets $
443,522 Lease liabilities Accrued expenses and other $ 92,587 Other long-term liabilities 385,507
Total lease liabilities $ 478,094 Weighted-average remaining lease term 6.50 years Weighted-
average discount rate 3.72%
Future minimum rental payments under noncancellable operating leases were as follows:
Payments Due by Fiscal Year (in thousands) As of September 30, 2020 2021 $ 117,680 2022
113,632 2023 102,564 2024 93,464 2025 83,789 Thereafter 376,396 Total future undiscounted
lease payments 887,525 Less: Future payments for leases that have not yet commenced 1
(308,431) Less: Imputed interest (101,000) Total lease liabilities $ 478,094 1 The Company has
certain leases that it has executed for which it does not control the underlying assets; therefore,
lease liabilities and ROU assets were not recorded on the Company's Consolidated Balance Sheet
as of September 30, 2020. These future commitments primarily relate to the Company's new
general corporate and administrative office.
Under the prior accounting guidance, the future minimum rental payments under noncancellable
operating leases and financing obligations as of September 30, 2019 were as follows: Payments
Due by Fiscal Year (in thousands) Operating Financing Obligations 1 Total 2020 $ 94,958 $ 22,468
$ 117,426 2021 84,002 29,790 113,792 2022 72,224 36,914 109,138 2023 63,507 35,950 99,457
2024 56,377 35,276 91,653 Thereafter 177,267 270,410 447,677 Total minimum lease payments $
548,335 $ 430,808 $ 979,143 1 Represents the portion of future minimum lease payments
relating to facility leases where the Company was determined to be the accounting owner (see
Note 1). These payments were recognized as reductions to the financing obligation and as
interest expense and excluded the future non-cash termination of the financing obligation.
Under the prior accounting guidance, the future minimum rental payments under noncancellable
operating leases and financing obligations as of September 30, 2019 were as follows: Payments
Due by Fiscal Year (in thousands) Operating Financing Obligations 1 Total 2020 $ 94,958 $ 22,468
$ 117,426 2021 84,002 29,790 113,792 2022 72,224 36,914 109,138 2023 63,507 35,950 99,457
2024 56,377 35,276 91,653 Thereafter 177,267 270,410 447,677 Total minimum lease payments $
548,335 $ 430,808 $ 979,143 1 Represents the portion of future minimum lease payments
relating to facility leases where the Company was determined to be the accounting owner (see
Note 1). These payments were recognized as reductions to the financing obligation and as
interest expense and excluded the future non-cash termination of the financing obligation.
Restructuring and Related Activities [Abstract]
Employee severance, litigation, and other charges
Employee Severance, Litigation, and Other (Tables)
12 Months Ended
Sep. 30, 2020
The following illustrates the charges incurred by the Company relating to Employee Severance,
Litigation, and Other for the periods indicated: Fiscal Year Ended September 30, (in thousands)
2020 2019 2018 Employee severance $ 34,401 $ 34,147 $ 36,694 Litigation and opioid-related
costs 6,722,346 185,145 61,527 Acquisition-related deal and integration costs 15,958 43,184
33,912 Business transformation efforts 37,961 55,437 32,963 Other restructuring initiatives
(3,359) 12,561 18,424 Total employee severance, litigation, and other $ 6,807,307 $ 330,474 $
183,520
Segment Reporting [Abstract]
Reconciliation of revenue from segments to consolidated
Reconciliation of segment operating income, depreciation and amortization, and capital
expenditures from segments to consolidated
Reconciliation of total segment operating income to income from continuing operations before
income taxes
Business Segment Information (Tables)
12 Months Ended
Sep. 30, 2020
The following illustrates reportable and operating segment disaggregated revenue as required by
ASC 606 for the periods indicated: Fiscal Year Ended September 30, (in thousands) 2020 2019
2018 Pharmaceutical Distribution Services $ 182,467,189 $ 172,813,537 $ 161,699,343 Other:
MWI Animal Health 4,216,462 3,975,232 3,789,759 Global Commercialization Services 3,308,640
2,893,109 2,542,971 Total Other 7,525,102 6,868,341 6,332,730 Intersegment eliminations
(98,365) (92,757) (92,438) Revenue $ 189,893,926 $ 179,589,121 $ 167,939,635
The following illustrates reportable segment operating income information for the periods
indicated: Fiscal Year Ended September 30, (in thousands) 2020 2019 2018 Pharmaceutical
Distribution Services $ 1,807,001 $ 1,671,251 $ 1,626,748 Other 400,139 380,660 355,091
Intersegment eliminations (2,693) (659) (609) Total segment operating income $ 2,204,447 $
2,051,252 $ 1,981,230 Fiscal Year Ended September 30, (in thousands) 2020 2019 2018
Pharmaceutical Distribution Services $ 203,062 $ 232,735 $ 225,608 Other 77,522 69,824 64,768
Acquisition-related intangibles amortization 110,478 159,848 174,751 Total depreciation and
amortization $ 391,062 $ 462,407 $ 465,127 The following illustrates capital expenditures by
reportable segment for the periods indicated: Fiscal Year Ended September 30, (in thousands)
2020 2019 2018 Pharmaceutical Distribution Services $ 201,144 $ 210,161 $ 190,191 Other
168,533 100,061 146,220 Total capital expenditures $ 369,677 $ 310,222 $ 336,411
The following reconciles total segment operating income to income before income taxes for the
periods indicated: Fiscal Year Ended September 30, (in thousands) 2020 2019 2018 Total segment
operating income $ 2,204,447 $ 2,051,252 $ 1,981,230 Gain from antitrust litigation settlements
9,076 145,872 35,938 LIFO (expense) credit (7,422) 22,544 (67,324) PharMEDium remediation
costs (16,165) (69,423) (66,204) PharMEDium shutdown costs (43,206) — — New York State
Opioid Stewardship Act (14,800) 22,000 (22,000) Contingent consideration adjustment 12,153 —
— Acquisition-related intangibles amortization (110,478) (159,848) (174,751) Employee
severance, litigation, and other (6,807,307) (330,474) (183,520) Goodwill impairment — —
(59,684) Impairment of PharMEDium assets (361,652) (570,000) — Operating (loss) income
(5,135,354) 1,111,923 1,443,685 Other (income) loss (1,581) (12,952) 25,469 Interest expense,
net 137,883 157,769 174,699 Loss on consolidation of equity investments — — 42,328 Loss on
early retirement of debt 22,175 — 23,766 (Loss) income before income taxes $ (5,293,831) $
967,106 $ 1,177,423
Quarterly Financial Information Disclosure [Abstract]
Quarterly financial information
Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Sep. 30, 2020
Fiscal Year Ended September 30, 2020 (in thousands, except per share amounts) First Second
Third Fourth Fiscal Revenue $ 47,864,742 $ 47,417,639 $ 45,366,777 $ 49,244,768 $ 189,893,926
Gross profit (a) $ 1,231,214 $ 1,388,107 $ 1,225,716 $ 1,346,847 $ 5,191,884 Distribution, selling,
and administrative expenses; depreciation; and amortization 790,468 787,208 762,300 818,303
3,158,279 Employee severance, litigation, and other (b) 39,309 67,732 58,585 6,641,681
6,807,307 Impairment of PharMEDium assets 138,000 223,652 — — 361,652 Operating income
(loss) $ 263,437 $ 309,515 $ 404,831 $ (6,113,137) $ (5,135,354) Net income (loss) (c) $ 186,568 $
971,111 $ 287,268 $ (4,844,505) $ (3,399,558) Net income (loss) attributable to
AmerisourceBergen Corporation (c) $ 187,640 $ 960,277 $ 289,439 $ (4,846,072) $ (3,408,716)
Earnings per share operations: Basic $ 0.91 $ 4.68 $ 1.42 $ (23.74) $ (16.65) Diluted $ 0.90 $ 4.64
$ 1.41 $ (23.74) $ (16.65) __________________________________________________________
(a) The first, second, and fourth quarters of the fiscal year ended September 30, 2020 include
gains from antitrust litigation settlements of $8.5 million, $0.1 million, and $0.5 million,
respectively. The first, second, and third quarters of the fiscal year ended September 30, 2020
include LIFO expense of $13.3 million, $23.9 million, and $6.1 million. The fourth quarter of the
fiscal year ended September 30, 2020 includes LIFO credit of $35.8 million. The first quarter of
the fiscal year ended September 30, 2020 includes PharMEDium remediation costs of $7.1
million. The second and third quarters of the fiscal year ended September 30, 2020 include
PharMEDium shutdown costs of $5.0 million and $0.4 million, respectively. (b) The fourth quarter
of the fiscal year ended September 30, 2020 includes a $6.6 billion legal expense accrual in
connection with opioid lawsuits. (c) The second quarter of the fiscal year ended September 30,
2020 includes discrete tax benefits of $741.0 million primarily related to the permanent
shutdown of the PharMEDium business. The third quarter of the fiscal year ended September 30,
2020 includes a loss on the early retirement of debt of $22.2 million. The fourth quarter of the
fiscal year ended September 30, 2020 includes tax benefits of $1.1 billion relating to the $6.6
billion legal expense accrual in connection with opioid lawsuits, $360.7 million relating to
Switzerland tax reform, and a $20.4 million adjustment to the discrete tax benefits previously
recognized primarily attributable to the income tax deductions resulting from the permanent
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD
($) $ in Thousands
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease, liability
Operating lease, right-of-use asset
Retained earnings
Property and equipment, net
Financing obligations
Accrued Expenses and Other Long-term Liabilities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease, liability
Adoption of ASU
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings
Retained earnings, tax
Property and equipment, net
Financing obligations
Sep. 30, 2020 Dec. 31, 2019 Oct. 01, 2019 Sep. 30, 2019
$ 478,094
443,522 $ 3,200 $ 526,281
518,335 $ 4,235,491
(1,484,808) (1,770,516)
$ 0 $ (320,518)
562,100
35,100
9,600
266,000
$ 324,800
Walgreens Boots Alliance, Inc.
Concentration Risk [Line Items]
Major customer, percentage of revenue
Major customer, percentage of accounts receivable
Express Scripts, Inc.
Concentration Risk [Line Items]
Major customer, percentage of revenue
Major customer, percentage of accounts receivable
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details)
12 Months Ended
Sep. 30, 2020
33.00%
47.00%
12.00%
7.00%
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) -
USD ($)
Assets Held and Used [Line Items]
Goodwill impairment
Goodwill impairment
Indefinite-lived intangible asset impairment
Impairment of PharMEDium assets
Finite-lived intangible asset impairment
Property and equipment impairment
Operating lease, right-of-use asset
PharMEDium Healthcare Holdings, Inc
Assets Held and Used [Line Items]
Carrying value of asset group, excluding goodwill
Fair value of asset group
Discount rate (as a percentage)
Customer relationships
Assets Held and Used [Line Items]
Finite-lived intangible asset impairment
Trade names
Assets Held and Used [Line Items]
Finite-lived intangible asset impairment
Software technology
Assets Held and Used [Line Items]
Finite-lived intangible asset impairment
Jul. 01, 2018 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019
$ 59,700,000
$ 0 $ 0 $ 223,652,000 $ 138,000,000 $ 0
123,200,000
11,600,000
$ 443,522,000 3,200,000
$ 145,000,000
17.00%
Jun. 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 0 $ 0 $ 59,684,000
000
$ 0 $ 570,000,000 $ 0 361,652,000 $ 570,000,000 $ 0
522,100,000
47,900,000
$ 443,522,000
792,000,000
$ 222,000,000
15.00%
$ 420,800,000
79,900,000
$ 21,400,000
Oct. 01, 2019
$ 526,281,000
Accounting Policies [Abstract]
Percentage of inventories, cost determined using LIFO
Excess cost of inventories over LIFO, if used FIFO
LIFO charges (credit)
Summary of Significant Accounting Policies - Merchandise Inventories (Details) - USD ($) $ in
Thousands
Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019
70.00% 75.00%
$ 1,519,200 $ 1,511,800
$ (35,800) $ 6,100 $ 23,900 $ 13,300 $ 57,200 $ (9,900)
3 Months Ended
Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
70.00% 75.00%
$ 1,519,200 $ 1,511,800
$ (66,800) $ (3,000) $ 7,422 $ (22,544) $ 67,324
12 Months Ended
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Machinery, equipment, and other | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Machinery, equipment, and other | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Software development costs | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Software development costs | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives
Summary of Significant Accounting Policies - Property and Equipment (Details)
12 Months Ended
Sep. 30, 2020
3 years
40 years
3 years
10 years
3 years
10 years
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in
Millions
Accounting Policies [Abstract]
Accrual for estimated customer sales returns
Sep. 30, 2020 Sep. 30, 2019
$ 1,344.7 $ 1,147.5
Shipping and Handling [Line Items]
Distribution, selling, and administrative
Shipping and Handling
Shipping and Handling [Line Items]
Distribution, selling, and administrative
Summary of Significant Accounting Policies - Shipping and Handling Costs (Details) - USD ($) $
in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 2,767,217 $ 2,663,508 $ 2,460,301
$ 665,300 $ 619,700 $ 590,800
12 Months Ended
1 Months Ended
Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill
Northeast Veterinary Supply Company NEVSCO
Business Acquisition [Line Items]
Cash paid to acquire business, including purchase price adjustments $ 70,000
Goodwill 30,400
Estimated fair value of accounts receivable 8,500
Estimated fair value of inventory 6,700
Estimated fair value of accounts payable and accrued expenses 2,900
Estimated fair value of the intangible assets acquired, finite-lived $ 29,800
Customer relationships | Northeast Veterinary Supply Company NEVSCO
Business Acquisition [Line Items]
Estimated useful life (in years) 15 years
Acquisitions and Investments - NEVSCO (Details) - USD ($) $ in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 6,706,719 $ 6,705,507 $ 6,664,272
Business Acquisition [Line Items]
Payment to acquire business, net of cash acquired
Goodwill
Net deferred tax liabilities
H.D. Smith
Business Acquisition [Line Items]
Payment to acquire business, net of cash acquired
Goodwill
Estimated fair value of accounts receivable
Estimated fair value of inventory
Estimated fair value of accounts payable and accrued expenses
Estimated fair value of the intangible assets acquired, finite-lived
Net deferred tax liabilities
Customer relationships | H.D. Smith
Business Acquisition [Line Items]
Estimated fair value of the intangible assets acquired, finite-lived
Estimated useful life (in years)
Trade names | H.D. Smith
Business Acquisition [Line Items]
Estimated fair value of the intangible assets acquired, finite-lived
Estimated useful life (in years)
Acquisitions and Investments - H.D. Smith (Details) - USD ($) $ in Thousands
1 Months Ended
Jan. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 0 $ 63,951 $ 785,299
6,706,719 6,705,507 $ 6,664,272
$ 324,845 $ 1,860,195
$ 815,000
499,900
163,100
350,700
366,100
167,800
60,600
$ 156,600
12 years
$ 11,200
2 years
12 Months Ended
Business Acquisition [Line Items]
Investment in profarma
Goodwill
Net deferred tax liabilities
Loss on consolidation of equity investments
Foreign currency translation adjustment from AOCI
Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Investment in profarma
Ownership interest in profarma
Goodwill
Estimated fair value of accounts receivable
Estimated fair value of inventory
Estimated fair value of accounts payable and accrued expenses
Assumed short-term debt
Assumed long-term debt
Assumed cash
Noncontrolling interest
Estimated fair value of the intangible assets acquired, finite-lived
Net deferred tax liabilities
Profarma Joint Venture
Business Acquisition [Line Items]
Investment in specialty joint venture
Ownership in specialty joint venture
Goodwill
Estimated fair value of accounts receivable
Estimated fair value of inventory
Estimated fair value of accounts payable and accrued expenses
Assumed short-term debt
Assumed cash
Estimated fair value of the intangible assets acquired, finite-lived
Estimated useful life (in years)
Loss on consolidation of equity investments
Gain on remeasurement of Profarma's previously held equity interest
Customer relationships | Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Estimated fair value of the intangible assets acquired, finite-lived
Customer relationships | Profarma Joint Venture
Business Acquisition [Line Items]
Estimated useful life (in years)
Trade names | Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Acquisitions and Investments - Proforma and Specialty Joint Venture (Details) - USD ($) $ in
Thousands
Estimated fair value of the intangible assets acquired, finite-lived
Foreign currency translation
Business Acquisition [Line Items]
Foreign currency translation adjustment from AOCI
Fair Value, Recurring | Level 2 | Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Fair value of equity interests
Fair Value, Recurring | Level 2 | Profarma Joint Venture
Business Acquisition [Line Items]
Fair value of equity interests
Minimum | Trade names | Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Estimated useful life (in years)
Maximum | Trade names | Profarma Distribuidora de Produtos Farmaceuticos S.A.
Business Acquisition [Line Items]
Estimated useful life (in years)
Sep. 30, 2018 Jan. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 56,080 $ 0 $ 0
$ 6,664,272 6,706,719 6,705,507 6,664,272
324,845 1,860,195
0 0 42,328
$ 0 $ 0 $ (45,941)
$ 62,500
38.20%
$ 142,000
160,100
190,500
167,700
209,900
12,400
150,800
168,000
84,600
50,100
$ 23,600 $ 15,600
89.90% 64.50% 89.90%
$ 3,500
65,000
29,100
54,300
32,700
28,900
$ 4,600
15 years
$ 8,800
12,400
$ 25,900
15 years
1 Months Ended
12 Months Ended
$ 58,700
$ 45,900
103,100
$ 31,200
15 years
25 years
Variable Interest Entity (Details) - USD ($) $ in Thousands Sep. 30, 2020 Sep. 30, 2019
Variable Interest Entity [Line Items]
Cash and cash equivalents $ 4,597,746 $ 3,374,194
Inventories 12,589,278 11,060,254
Property and equipment, net 1,484,808 1,770,516
Goodwill 6,706,719 6,705,507
Other long-term assets 779,854 269,067
TOTAL ASSETS 44,274,830 39,171,980
Long-term debt
Deferred income taxes 686,485 1,860,195
Other long-term liabilities 472,855 98,812
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Cash and cash equivalents 96,983 9,431
Accounts receivables, net 120,486 154,491
Inventories 144,059 185,602
Prepaid expenses and other 52,885 64,119
Property and equipment, net 23,584 30,961
Goodwill 82,309 82,309
Other intangible assets 73,543 74,429
Other long-term assets 53,513 9,169
TOTAL ASSETS 647,362 610,511
Accounts payable 141,147 165,053
Accrued expenses and other 34,415 49,191
Short-term debt 98,399 106,439
Long-term debt 44,144 60,973
Deferred income taxes 38,854 42,371
Other long-term liabilities 43,413 5,303
Total liabilities $ 400,372 $ 429,330
Oct. 31, 2018 Sep. 30, 2018
$ 6,664,272
$ 400,000
Variable Interest Entity [Line Items]
Profarma retail equity offering
Variable Interest Entity, Primary Beneficiary | Profarma Distribuidora de Produtos Farmaceuticos
S.A.
Variable Interest Entity [Line Items]
Profarma retail equity offering
Retail Business | Variable Interest Entity, Primary Beneficiary | Profarma Distribuidora de
Produtos Farmaceuticos S.A.
Variable Interest Entity [Line Items]
Ownership percentage before equity offering
Ownership percentage after equity offering
Variable Interest Entity - Additional Information (Details) - USD ($) $ in Thousands
1 Months Ended
Aug. 31, 2020 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 66,355 $ 0 $ 0
$ 66,400
100.00%
53.50%
12 Months Ended
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, at cost $ 3,244,477
Less accumulated depreciation (1,759,669)
Property and equipment, net 1,484,808
Land
Property, Plant and Equipment [Line Items]
Property and equipment, at cost 39,572
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, at cost 586,551
Machinery, equipment, and other
Property, Plant and Equipment [Line Items]
Property and equipment, at cost $ 2,618,354
Sep. 30, 2019
$ 3,349,140
(1,578,624)
1,770,516
44,142
942,129
$ 2,362,869
Income Tax Disclosure [Abstract]
Domestic
Foreign
(Loss) income before income taxes
Income Taxes - Domestic and Foreign Income From Continuing Operations Before Income
Taxes (Details) - USD ($) $ in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ (5,961,269) $ 336,150 $ 704,935
667,438 630,956 472,488
$ (5,293,831) $ 967,106 $ 1,177,423
12 Months Ended
Current (benefit) provision:
Federal
State and local
Foreign
Total current (benefit) provision
Deferred (benefit) provision:
Federal
State and local
Foreign
Total deferred (benefit) provision
(Benefit) provision for income taxes
Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands
3 Months Ended
Dec. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ (473,751) $ (12,801) $ 247,755
30,236 15,246 39,328
94,213 81,989 69,972
(349,302) 84,434 357,055
(914,613) 61,819 (828,023)
(264,409) (31,086) 33,887
(365,949) (2,196) (1,388)
(1,544,971) 28,537 (795,524)
$ (37,000) $ (1,894,273) $ 112,971 $ (438,469)
12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Statutory U.S. federal income tax rate 21.00%
State and local income tax rate, net of federal tax benefit (0.50%)
Foreign tax rate differential 1.00%
Litigation settlements and accruals (see Note 14) (6.20%)
U.S. Tax reform 0
PharMEDium worthless stock deduction 12.40%
Swiss Tax reform 6.80%
CARES Act 1.20%
Goodwill impairment (see Note 1) 0.00%
Capital gain on distribution 0.00%
Other 0.10%
Effective income tax rate 35.80%
Income Taxes - Reconciliation of Effective Income Tax Rate (Details)
12 Months Ended
Sep. 30, 2019 Sep. 30, 2018
21.00% 24.50%
2.40% (0.10%)
(6.70%) (6.20%)
0.10% (6.30%)
(0.036) (0.520)
0.00% 0.00%
0.00% 0.00%
0.00% 0.00%
0.00% 1.70%
0.00% 3.60%
(1.50%) (2.40%)
11.70% (37.20%)
12 Months Ended
Income Taxes - Additional Information (Details) - USD ($)
Operating Loss Carryforwards [Line Items]
Income tax benefit
CARES Act, tax benefit
Net current income tax receivable
Gross deferred tax asset
Valuation allowance for deferred tax assets
Legal accrual
Deferred tax benefit
Reserve for an uncertain tax position
Tax Cuts and Jobs Act, recognized income tax benefits
Tax Cuts and Jobs Act, deferred income tax benefit as result of applying a lower U.S. federal
income tax rate
Tax Cuts and Jobs Act, current income tax expense on historical foreign earnings and profits
Tax Cuts and Jobs Act, decrease in provisional transition tax
Adjustments recorded to deferred income taxes related to 2017 Tax Act
Undistributed earnings of international subsidiaries
Permanently reinvested cumulative undistributed earnings
Valuation allowance - increase (decrease)
Excess tax benefit from the exercise of stock options and lapses of restricted stock units
Income tax payments, net of refunds
Unrecognized tax benefits, including interest and penalties
Unrecognized tax benefits, including interest and penalties, net of federal benefit
Unrecognized tax benefits that would impact effective tax rate
Unrecognized tax benefits, interest and penalties
Reductions of tax positions of the prior years
Unrecognized tax benefits
Reduction of unrecognized tax benefits reasonably possible
Swiss Federal Tax Administration
Operating Loss Carryforwards [Line Items]
Reduced tax rate for a period (in years)
Gross deferred tax asset
Valuation allowance for deferred tax assets
Net deferred tax asset
PharMEDium Healthcare Holdings, Inc
Operating Loss Carryforwards [Line Items]
Ordinary tax deduction
Income tax benefit
Net current income tax receivable
Federal
Operating Loss Carryforwards [Line Items]
Potential tax benefits from net operating loss carryforwards
Federal | Minimum
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards, term (in years)
Federal | Maximum
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards, term (in years)
State
Operating Loss Carryforwards [Line Items]
Potential tax benefits from net operating loss carryforwards
Tax credit carryforwards
Foreign
Operating Loss Carryforwards [Line Items]
Potential tax benefits from net operating loss carryforwards
Foreign | Alternative minimum tax credit carryforwards
Operating Loss Carryforwards [Line Items]
Tax credit carryforwards
USAO - EDNY Civil Claims
Operating Loss Carryforwards [Line Items]
Litigation settlement, payment
Opioid Lawsuits and Investigations
Operating Loss Carryforwards [Line Items]
Income tax benefit
Legal accrual
Legal settlement term (in years)
Deferred tax benefit
Reserve for an uncertain tax position
Unrecognized tax benefits
Sep. 30, 2020 Sep. 30, 2018 Sep. 30, 2020 Mar. 31, 2020 Dec. 31, 2018 Sep. 30, 2020
$ 37,000,000 $ 1,894,273,000
720,600,000
$ 488,428,000 $ 488,428,000 488,428,000
2,219,370,000 2,219,370,000 2,219,370,000
411,648,000 411,648,000 411,648,000
6,722,346,000
1,544,971,000
478,351,000 $ 98,124,000 478,351,000 478,351,000
$ 37,000,000
182,600,000
0
3,000,000,000 3,000,000,000 3,000,000,000
2,300,000,000 2,300,000,000 2,300,000,000
(212,000,000)
3,900,000
139,400,000
498,300,000 498,300,000 498,300,000
455,500,000 455,500,000 455,500,000
437,200,000 437,200,000 437,200,000
19,900,000 19,900,000 19,900,000
(6,480,000)
385,797,000
13,900,000 13,900,000 $ 13,900,000
10 years
582,400,000 582,400,000 $ 582,400,000
221,700,000 221,700,000 221,700,000
360,700,000 360,700,000 360,700,000
2,400,000,000 2,400,000,000 2,400,000,000
$ (741,000,000) 655,000,000
488,400,000 488,400,000 488,400,000
$ 12,400,000 12,400,000 12,400,000
1 year
17 years
$ 201,200,000 201,200,000 201,200,000
12,800,000 12,800,000 12,800,000
58,900,000 58,900,000 58,900,000
2,100,000 2,100,000 2,100,000
$ 625,000,000
1,100,000,000
$ 6,600,000,000
18 years
1,100,000,000
$ 359,500,000 $ 359,500,000 359,500,000
$ 371,500,000
Sep. 30, 2019 Sep. 30, 2018 Sep. 30, 2017
$ (112,971,000) $ 438,469,000
5,859,000
487,320,000
199,682,000
185,145,000 61,527,000
(28,537,000) 795,524,000
105,657,000 98,124,000 $ 323,869,000
612,600,000
897,600,000
285,000,000
(300,000)
7,900,000 22,700,000
117,700,000 104,000,000
124,200,000
95,000,000
76,800,000
18,600,000
(10,317,000) (224,878,000)
$ 18,819,000 $ 2,804,000
Income Taxes - Significant Components of Deferred Tax Liabilities (Assets) (Details) - USD ($) $
in Thousands
Components of Deferred Tax Assets and Liabilities [Abstract]
Inventories
Property and equipment
Goodwill and other intangible assets
Right-of-use assets (Note 12)
Other
Gross deferred tax liabilities
Net operating loss and tax credit carryforwards
Allowance for doubtful accounts
Accrued expenses
Accrued litigation liability
Employee and retiree benefits
Goodwill and other intangible assets
Lease liabilities (Note 12)
Share-based compensation
Other
Gross deferred tax assets
Valuation allowance for deferred tax assets
Deferred tax assets, net of valuation allowance
Net deferred tax liabilities
Sep. 30, 2020 Sep. 30, 2019
$ 1,309,815 $ 1,293,075
94,521 143,851
613,123 709,015
113,220 0
1,888 1,892
2,132,567 2,147,833
(263,171) (318,868)
(20,051) (22,544)
(21,284) (33,312)
(1,078,555) 0
(13,891) (12,420)
(582,406) 0
(121,182) 0
(38,914) (39,961)
(79,916) (60,215)
(2,219,370) (487,320)
411,648 199,682
(1,807,722) (287,638)
$ 324,845 $ 1,860,195
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax
Returns [Roll Forward]
Unrecognized tax benefits at beginning of period
Additions of tax positions of the current year
Additions to tax positions of the prior years
Reductions of tax positions of the prior years
Settlements with taxing authorities
Expiration of statutes of limitations
Unrecognized tax benefits at end of period
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 105,657 $ 98,124 $ 323,869
385,797 18,819 2,804
5,599 751 558
(6,480) (10,317) (224,878)
0 0 (1,847)
(12,222) (1,720) (2,382)
$ 478,351 $ 105,657 $ 98,124
12 Months Ended
Goodwill [Roll Forward]
Beginning balance
Goodwill recognized in connection with acquisitions
Foreign currency translation
Ending balance
Operating segments | Pharmaceutical Distribution
Goodwill [Roll Forward]
Beginning balance
Goodwill recognized in connection with acquisitions
Foreign currency translation
Ending balance
Operating segments | Other
Goodwill [Roll Forward]
Beginning balance
Goodwill recognized in connection with acquisitions
Foreign currency translation
Ending balance
Goodwill and Other Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands
Sep. 30, 2020 Sep. 30, 2019
$ 6,705,507 $ 6,664,272
43,418
1,212 (2,183)
6,706,719 6,705,507
4,852,775 4,852,775
0
0 0
4,852,775 4,852,775
1,852,732 1,811,497
43,418
1,212 (2,183)
$ 1,853,944 $ 1,852,732
12 Months Ended
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment
Amortization expense, fiscal year maturity
Amortization expense
2021
2022
2023
2024
2025
Thereafter
Jul. 01, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 59,700
$ 110,875 $ 167,442 $ 181,156
101,900
100,300
98,800
97,400
96,600
$ 705,800
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in
Thousands
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangibles, accumulated amortization
Total other intangible assets, gross carrying amount
Total other intangible assets, net carrying amount
Trade names
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangibles
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, weighted average remaining useful life
Finite-lived intangibles, gross carrying amount
Finite-lived intangibles, accumulated amortization
Finite-lived intangibles, net carrying amount
Trade names and other
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, weighted average remaining useful life
Finite-lived intangibles, gross carrying amount
Finite-lived intangibles, accumulated amortization
Finite-lived intangibles, net carrying amount
Sep. 30, 2020 Sep. 30, 2019
$ (681,487) $ (593,221)
2,567,594 2,888,057
1,886,107 2,294,836
$ 685,312 685,324
13 years
$ 1,671,888 1,931,212
(565,372) (489,471)
$ 1,106,516 1,441,741
14 years
$ 210,394 271,521
(116,115) (103,750)
$ 94,279 $ 167,771
Debt - Debt Instruments (Details) Sep. 30, 2020USD ($)
Debt Instrument [Line Items]
Debt
Total debt $ 4,119,520,000
Total, net of current portion 3,618,261,000
Revolving credit note
Debt Instrument [Line Items]
Maximum borrowing capacity 75,000,000
Debt 0
Term loans due in 2020
Debt Instrument [Line Items]
Debt 399,982,000
Overdraft facility due in 2021
Debt Instrument [Line Items]
Maximum borrowing capacity | £
Debt 0
Receivables securitization facility due 2022
Debt Instrument [Line Items]
Maximum borrowing capacity 1,450,000,000
Debt 350,000,000
Multi-currency revolving credit facility due 2021
Debt Instrument [Line Items]
Maximum borrowing capacity 1,400,000,000
Debt 0
$500,000, 3.50% senior notes due 2021
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 3.50%
Debt $ 0
$500,000, 3.40% senior notes due 2024
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 3.40%
Debt $ 498,232,000
$500,000, 3.25% senior notes due 2025
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 3.25%
Debt $ 496,990,000
$750,000, 3.45% senior notes due 2027
Debt Instrument [Line Items]
Principal amount $ 750,000,000
Interest rate 3.45%
Debt $ 743,940,000
$500,000, 2.80% senior notes due 2030
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 2.80%
Debt $ 494,045,000
$500,000, 4.25% senior notes due 2045
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 4.25%
Debt $ 494,730,000
$500,000, 4.3% senior notes due 2047
Debt Instrument [Line Items]
Principal amount $ 500,000,000
Interest rate 4.30%
Debt $ 492,755,000
Non-recourse Debt
Debt Instrument [Line Items]
Debt 148,846,000
Less nonrecourse current portion 101,277,000
Corporation Debt
Debt Instrument [Line Items]
Less nonrecourse current portion $ 399,982,000
Sep. 30, 2020GBP (£) Sep. 30, 2019USD ($) Oct. 31, 2018USD ($) Dec. 31, 2017USD ($)
$ 400,000,000
$ 4,172,892,000
4,033,880,000
0
399,778,000
£ 30,000,000
32,573,000
350,000,000
0
3.50%
498,908,000
3.40%
497,744,000
3.25%
496,311,000
$ 750,000,000
3.45% 3.45%
743,099,000
2.80%
0
4.25%
494,514,000
$ 500,000,000
4.30% 4.30%
492,488,000
167,477,000
106,439,000
$ 32,573,000
Debt - Additional Information (Details)
Debt Instrument [Line Items]
Long-term debt
Payment of premium on early retirement of debt
Scheduled future principal payments, in fiscal 2021
Scheduled future principal payments, in fiscal 2022
Scheduled future principal payments, in fiscal 2023
Scheduled future principal payments, in fiscal 2024
Scheduled future principal payments, in fiscal 2025
Scheduled future principal payments, thereafter
Interest paid
Amortization of financing fees and accretion of original issue discounts
Multi-currency revolving credit facility due 2021
Debt Instrument [Line Items]
Maximum borrowing capacity
Facility fee, period end
Long-term debt
Commercial paper
Debt Instrument [Line Items]
Maximum borrowing capacity
Short-term debt
Receivables securitization facility due 2022
Debt Instrument [Line Items]
Maximum borrowing capacity
Accordion feature, potential increase in commitment
Long-term debt
Revolving credit note
Debt Instrument [Line Items]
Maximum borrowing capacity
Long-term debt
Overdraft facility due in 2021
Debt Instrument [Line Items]
Maximum borrowing capacity | £
Long-term debt
Term Loan Agreement October 2018
Debt Instrument [Line Items]
Principal amount
$500,000, 2.80% senior notes due 2030
Debt Instrument [Line Items]
Long-term debt
Principal amount
Interest rate
$500,000, 2.80% senior notes due 2030 | Notes Payable to Banks
Debt Instrument [Line Items]
Principal amount
Interest rate
Debt instrument, redemption price, percentage of principal amount redeemed
Effective yield percentage
$500,000, 3.50% senior notes due 2021
Debt Instrument [Line Items]
Long-term debt
Principal amount
Interest rate
$500,000, 3.50% senior notes due 2021 | Notes Payable to Banks
Debt Instrument [Line Items]
Principal amount
Interest rate
Payment of premium on early retirement of debt
$750,000, 3.45% senior notes due 2027
Debt Instrument [Line Items]
Long-term debt
Principal amount
Interest rate
Effective yield percentage
Percentage of principal amount
$500,000, 4.3% senior notes due 2047
Debt Instrument [Line Items]
Long-term debt
Principal amount
Interest rate
Effective yield percentage
Percentage of principal amount
$400,000, 4.875% senior notes due 2019
Debt Instrument [Line Items]
Principal amount
Interest rate
Minimum | Multi-currency revolving credit facility due 2021
Debt Instrument [Line Items]
Facility fee, period end
Maximum | Multi-currency revolving credit facility due 2021
Debt Instrument [Line Items]
Facility fee, period end
CDOR / LIBOR / EURIBOR / Bankers Acceptance Stamping Fee | Multi-currency revolving credit
facility due 2021
Debt Instrument [Line Items]
Variable rate spread
CDOR / LIBOR / EURIBOR / Bankers Acceptance Stamping Fee | Minimum | Multi-currency
revolving credit facility due 2021
Debt Instrument [Line Items]
Variable rate spread
CDOR / LIBOR / EURIBOR / Bankers Acceptance Stamping Fee | Maximum | Multi-currency
revolving credit facility due 2021
Debt Instrument [Line Items]
Variable rate spread
Alternate base rate and Canadian prime rate | Minimum | Multi-currency revolving credit facility
due 2021
Debt Instrument [Line Items]
Variable rate spread
Alternate base rate and Canadian prime rate | Maximum | Multi-currency revolving credit facility
due 2021
Debt Instrument [Line Items]
Variable rate spread
Sep. 30, 2020USD ($) May 31, 2020USD ($) Dec. 31, 2017USD ($) Sep. 30, 2020USD ($)
$ 22,300,000 $ 21,448,000
$ 493,100,000 493,100,000
383,900,000 383,900,000
8,000,000 8,000,000
503,700,000 503,700,000
500,000,000 500,000,000
2,300,000,000 2,300,000,000
150,700,000
6,400,000
$ 1,400,000,000 1,400,000,000
0.09%
$ 0 0
1,400,000,000 1,400,000,000
0 0
1,450,000,000 1,450,000,000
250,000,000 250,000,000
350,000,000 350,000,000
75,000,000 75,000,000
0 0
0 0
494,045,000 494,045,000
$ 500,000,000 $ 500,000,000
2.80% 2.80%
$ 500,000,000
2.80%
99.71%
2.81%
$ 0 $ 0
$ 500,000,000 $ 500,000,000
3.50% 3.50%
$ 500,000,000
3.50%
$ 21,400,000
$ 743,940,000 $ 743,940,000
$ 750,000,000 $ 750,000,000 $ 750,000,000
3.45% 3.45% 3.45%
3.48%
99.76%
$ 492,755,000 $ 492,755,000
$ 500,000,000 $ 500,000,000 $ 500,000,000
4.30% 4.30% 4.30%
4.33%
99.51%
$ 400,000,000
4.875%
0.05%
0.125%
0.91%
0.70%
1.125%
0.00%
0.125%
Sep. 30, 2019USD ($) Sep. 30, 2018USD ($) Sep. 30, 2020GBP (£) Oct. 31, 2018USD ($)
$ 400,000,000
$ 0 $ 22,348,000
167,400,000 162,100,000
7,100,000 $ 7,700,000
0
0
350,000,000
0
£ 30,000,000
32,573,000
$ 400,000,000
0
2.80%
498,908,000
3.50%
743,099,000
3.45%
$ 492,488,000
4.30%
Equity, Class of Treasury Stock [Line Items]
Common stock, authorized (shares)
Common stock, par value (usd per share)
Preferred stock, authorized (shares)
Preferred stock, par value (usd per share)
Preferred stock, issued (shares)
Shares repurchased
Antidilutive securities excluded from computation of diluted earnings per share (shares)
November 2016 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase program, authorized amount
Shares repurchased (shares)
Shares repurchased
Shares repurchased, cash settled
October 2018 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase program, authorized amount
Shares repurchased (shares)
Shares repurchased
Shares repurchased, cash settled
Share repurchase program, availability remaining
May 2020 Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Share repurchase program, authorized amount
Stockholders' Equity and Weighted Average Common Shares Outstanding - Additional
Information (Details) - USD ($)
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018 May 31, 2020 Oct. 31, 2018
600,000,000 600,000,000
$ 0.01 $ 0.01
10,000,000
$ 0.01
0
$ 405,692,000 $ 664,803,000 $ 663,220,000
4,200,000 4,600,000 3,200,000
1,400,000 7,700,000
$ 125,800,000 $ 663,100,000
$ 24,000,000
$ 1,000,000,000
4,900,000 6,700,000
$ 405,600,000 $ 538,900,000
$ 14,800,000
$ 55,500,000
$ 500,000,000
12 Months Ended
Nov. 30, 2016
$ 1,000,000,000
Stockholders' Equity and Weighted Average Common Shares Outstanding - Components of
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss
Pension and postretirement adjustments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss
Foreign currency translation
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss
Other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive loss
Sep. 30, 2020 Sep. 30, 2019
$ (1,018,924) $ 2,878,917
(108,830) (111,965)
(5,761) (5,344)
(103,043) (107,252)
$ (26) $ 631
Equity [Abstract]
Weighted average common shares outstanding — basic (shares)
Effect of dilutive securities — stock options and restricted stock units (shares)
Weighted average common shares outstanding — diluted (shares)
Stockholders' Equity and Weighted Average Common Shares Outstanding - Components of
Diluted Weighted Average Shares Outstanding (Details) - shares shares in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
204,783 210,165 217,872
0 1,675 2,464
204,783 211,840 220,336
12 Months Ended
Sep. 30, 2020
Walgreens Boots Alliance, Inc.
Related Party Transaction [Line Items]
Ownership percentage (more than) 10.00%
Walgreens Boots Alliance, Inc.
Related Party Transaction [Line Items]
Revenue from related party $ 63.1
Receivable from related party $ 6.6
Related Party Transactions (Details) - Investor - USD ($) $ in Billions
12 Months Ended
Sep. 30, 2019 Sep. 30, 2018
$ 60.3 $ 54.7
$ 6.1
12 Months Ended
Defined Benefit Plan Disclosure [Line Items]
Minimum allowed employee contributions, percent of salary
Maximum allowed employee contributions, percent of salary
Discretionary contributions, vesting period (in years)
Deferred compensation, annual benefit, percent of compensation, Benefit Restoration Plan
Defined contribution plans expense
Deferred compensation, common stock authorized for issuance (shares)
Deferred compensation, common stock issued (shares)
Deferred compensation liability
Employee contribution, first 3% of salary
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent of match
Employer matching contribution, percent of salary
Employee contribution, additional 2% of salary
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent of match
Employer matching contribution, percent of salary
Retirement and Other Benefit Plans (Details) - USD ($) $ in Millions
24 Months Ended
Sep. 30, 2020 Dec. 31, 2019 Sep. 30, 2019 Sep. 30, 2018 Dec. 31, 2018
1.00%
50.00%
5 years
4.00% 3.00%
$ 45.9 $ 51 $ 37.9
2,960,000
0
$ 31.1 $ 28
100.00% 100.00%
3.00% 3.00%
50.00%
2.00%
12 Months Ended
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units,
shares in Thousands, $ in Millions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted
Weighted average fair values of options granted (usd per share)
Stock option expense
Intrinsic value of stock option exercises
Total fair values of options vested
Nonvested options outstanding (shares)
Expected future compensation expense relating to nonvested options outstanding
Weighted average period over which expected future compensation expense relating to
nonvested options outstanding will be recognized
Employee options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)
Expiration period (in years)
Non-employee options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)
Expiration period (in years)
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock expense
Total fair values of restricted shares vested
Nonvested shares outstanding (shares)
Expected future compensation expense relating to restricted shares outstanding
Weighted average period over which expected future compensation expense relating to
restricted shares outstanding will be recognized
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)
Nonvested shares outstanding (shares)
Performance stock unit expense
Performance stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage
Performance stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage
Sep. 30, 2020 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
9,200 9,200
$ 16.61 $ 18.60 $ 14.16
$ 13 $ 21 $ 22.6
42.6 51.2 116.7
$ 21.3 $ 22.7 25.8
2,129 2,129 3,265
$ 10.3 $ 10.3
1 year 8 months 12 days
4 years
7 years
3 years
10 years
$ 39.8 $ 29.2 26.8
$ 26.4 $ 14.5 15.8
1,512 1,512 1,222
$ 43.4 $ 43.4
1 year 4 months 24 days
3 years
288 288 283
$ 21.5 $ 8.5 $ 12.8
0.00% 0.00%
200.00% 150.00%
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Risk-free interest rate 1.66%
Expected dividend yield 1.86%
Volatility of common stock 28.17%
Expected life of the options 3 years 9 months 14 days
Share-Based Compensation - Weighted Average Assumptions (Details)
Sep. 30, 2019 Sep. 30, 2018
2.91% 1.89%
1.79% 1.96%
27.67% 26.54%
3 years 9 months 7 days 3 years 9 months 3 days
12 Months Ended
Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, shares in
Thousands, $ in Thousands
Options
Outstanding, beginning of period (shares)
Granted (shares)
Exercised (shares)
Forfeited (shares)
Expired (shares)
Outstanding, end of period (shares)
Exercisable, end of period (shares)
Expected to vest after end of period (shares)
Weighted Average Exercise Price
Outstanding, beginning of period (usd per share)
Granted (usd per share)
Exercised (usd per share)
Forfeited (usd per share)
Expired (usd per share)
Outstanding, end of period (usd per share)
Exercisable, end of period (usd per share)
Expected to vest after end of period (usd per share)
Weighted Average Remaining Contractual Term
Outstanding
Exercisable
Expected to vest after end of period
Aggregate Intrinsic Value
Outstanding
Exercisable
Expected to vest after end of period
Sep. 30, 2020 Sep. 30, 2018 Sep. 30, 2020 Sep. 30, 2019
7,659
383
(2,242)
(166)
(75)
5,559 5,559
3,430 3,430
2,072 2,072
$ 83
86
76
83
95
$ 86 86
88 88
$ 83 $ 83
3 years 4 years
2 years
5 years
$ 62,770 $ 62,770 $ 35,319
33,107 33,107
$ 29,032 $ 29,032
Options
Nonvested, beginning of period (shares)
Granted (shares)
Vested (shares)
Forfeited (shares)
Nonvested, end of period (shares)
Weighted Average Grant Date Fair Value
Nonvested, beginning of period (usd per share)
Granted (usd per share)
Vested (usd per share)
Forfeited (usd per share)
Nonvested, end of period (usd per share)
Share-Based Compensation - Nonvested Options (Details) - $ / shares shares in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
3,265
383
(1,353)
(166)
2,129 3,265
$ 16
16.61 $ 18.60 $ 14.16
16
16
$ 16 $ 16
12 Months Ended
Restricted Stock Units
Nonvested, beginning of period (shares) | shares
Granted (shares) | shares
Vested (shares) | shares
Forfeited (shares) | shares
Nonvested, end of period (shares) | shares
Weighted Average Grant Date Fair Value
Nonvested, beginning of period (usd per share) | $ / shares
Granted (usd per share) | $ / shares
Vested (usd per share) | $ / shares
Forfeited (usd per share) | $ / shares
Nonvested, end of period (usd per share) | $ / shares
Share-Based Compensation - Nonvested Restricted Stock Units (Details) - Restricted stock units
shares in Thousands
12 Months Ended
Sep. 30, 2020$ / sharesshares
1,222
760
(346)
(124)
1,512
$ 81
86
76
84
$ 85
Performance Stock Units
Nonvested, beginning of period (shares) | shares
Granted (shares) | shares
Vested (shares) | shares
Forfeited (shares) | shares
Nonvested, end of period (shares) | shares
Weighted Average Grant Date Fair Value
Nonvested, beginning of period (usd per share) | $ / shares
Granted (usd per share) | $ / shares
Vested (usd per share) | $ / shares
Forfeited (usd per share) | $ / shares
Nonvested, end of period (usd per share) | $ / shares
Share-Based Compensation - Nonvested Performance Stock Units (Details) - Performance stock
units shares in Thousands
12 Months Ended
Sep. 30, 2020$ / sharesshares
283
150
(139)
(6)
288
$ 84
86
78
89
$ 88
12 Months Ended
Sep. 30, 2020USD ($)
Leases [Abstract]
Operating lease cost $ 118,144
Short-term lease cost 4,632
Variable lease cost 17,814
Total lease cost $ 140,590
Leases - Lease Cost (Details) $ in Thousands
Sep. 30, 2020
Operating Leases
Rental expense $ 108.9
Leases - Additional Information (Details) - USD ($) $ in Millions
12 Months Ended
Sep. 30, 2019
$ 114.9
12 Months Ended
Leases - Summary of Balance Sheet Information Related to Leases (Details) - USD ($) $ in
Thousands
Right of use assets
Operating lease, right-of-use asset
Lease liabilities
Accrued expenses and other
Other long-term liabilities
Total lease liabilities
Weighted-average remaining lease term
Weighted-average discount rate
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]
Sep. 30, 2020 Dec. 31, 2019 Oct. 01, 2019
$ 443,522 $ 3,200 $ 526,281
92,587
385,507
$ 478,094
6 years 6 months
3.72%
us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
us-gaap:OtherLiabilitiesNoncurrent
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cash payments
Right-of-use assets obtained in exchange for lease liabilities
New operating leases
Accounting Standards Update [Extensible List]
Leases recognized upon adoption of ASC 842
Leases - Other Information (Details) - USD ($) $ in Thousands
Sep. 30, 2020
$ 115,028
$ 61,779
us-gaap:AccountingStandardsUpdate201602Member
$ 443,522
12 Months Ended
Sep. 30, 2019 Dec. 31, 2019 Oct. 01, 2019
us-gaap:AccountingStandardsUpdate201409Member
$ 3,200 $ 526,281
12 Months Ended
Leases - Future Minimum Rental Payments Under Noncancelable Operating Leases (Details) $
in Thousands
Leases [Abstract]
2021
2022
2023
2024
2025
Thereafter
Total future undiscounted lease payments
Less: Future payments for leases that have not yet commenced
Less: Imputed interest
Total lease liabilities
Sep. 30, 2020USD ($)
$ 117,680
113,632
102,564
93,464
83,789
376,396
887,525
(308,431)
(101,000)
$ 478,094
Leases - Minimum Lease Payments (Details) $ in Thousands Sep. 30, 2020USD ($)
Operating Leases
2020 $ 94,958
2021 84,002
2022 72,224
2023 63,507
2024 56,377
Thereafter 177,267
Total minimum lease payments 548,335
Financing Obligations
2020 22,468
2021 29,790
2022 36,914
2023 35,950
2024 35,276
Thereafter 270,410
Total minimum lease payments 430,808
Operating and Financing Obligations
2020 117,426
2021 113,792
2022 109,138
2023 99,457
2024 91,653
Thereafter 447,677
Total minimum lease payments $ 979,143
Restructuring Cost and Reserve [Line Items]
Employee severance
Litigation and opioid-related costs
Acquisition-related deal and integration costs
Business transformation efforts
Other restructuring initiatives
Total employee severance, litigation, and other
Gain on the sale of a facility
Opioid Lawsuits and Investigations
Restructuring Cost and Reserve [Line Items]
Litigation and opioid-related costs
Litigation settlement, accrued reserve, net of income tax benefit
Litigation settlement, accrued reserve
Legal fees
Employee Severance, Litigation, and Other (Details) - USD ($) $ in Thousands
3 Months Ended
Sep. 30, 2020 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 34,401 $ 34,147 $ 36,694
6,722,346 185,145 61,527
15,958 43,184 33,912
37,961 55,437 32,963
(3,359) 12,561 18,424
6,807,307 330,474 183,520
19,100
$ 6,600,000
$ 5,500,000
$ 116,700
$ 68,500
12 Months Ended
Legal Matters and Contingencies (Details) $ in Thousands
Loss Contingencies [Line Items]
Litigation settlement
Annual fund commitment total
Estimated liability under the New York Opioid Stewardship Act
Settlement with Ohio Counties
Loss Contingencies [Line Items]
Litigation settlement
MDL and Other Related State Court Litigation
Loss Contingencies [Line Items]
Aggregate legal settlement (up to)
Legal settlement term (in years)
Company's portion of aggregate legal settlement
Program period (in years)
Opioid Lawsuits and Investigations
Loss Contingencies [Line Items]
Litigation settlement
Legal settlement term (in years)
Estimated payment
Opioid Lawsuits and Investigations | Pending Litigation
Loss Contingencies [Line Items]
Legal settlement term (in years)
Number of U.S. pharmaceutical distributors in settlement | numberOfDistributors
Global settlement
Estimated payment
Opioid Lawsuits and Investigations | Forecast
Loss Contingencies [Line Items]
Litigation settlement, payment
Oct. 21, 2019USD ($) Sep. 30, 2020USD ($)numberOfDistributors Dec. 31, 2018USD ($)
$ (14,800) $ (22,000)
$ 18,000,000
18 years
31.00%
10 years
$ 6,600,000
18 years
$ 6,200,000
3
$ 21,000,000
$ 6,500,000
Sep. 30, 2018USD ($) Sep. 30, 2021USD ($) Sep. 30, 2020USD ($)numberOfDistributors
$ 6,722,346
$ 22,000
66,700
$ 6,200,000
18 years
3
$ 21,000,000
$ 6,500,000
$ 408,000
Sep. 30, 2019USD ($) Sep. 30, 2018USD ($) Jul. 01, 2018USD ($)
$ 185,145 $ 61,527
$ 100,000
Sep. 30, 2020 Mar. 31, 2020
Litigation Settlement [Abstract]
Gain from antitrust litigation settlements $ 0.5 $ 0.1
Litigation Settlements (Details) - USD ($) $ in Millions
Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019 Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2020
$ 8.5 $ 3.1 $ 3.5 $ 52 $ 87.3 $ 9.1
3 Months Ended
12 Months Ended
Sep. 30, 2019 Sep. 30, 2018
$ 145.9 $ 35.9
12 Months Ended
Segment Reporting Information [Line Items]
Gain on sale of equity investment
Impairment of non-customer note receivable
Other | World Courier
Segment Reporting Information [Line Items]
Number of countries in which entity operates (over) | country
Other Nonoperating Income (Expense)
Segment Reporting Information [Line Items]
Gain on sale of equity investment
Impairment of non-customer note receivable
Business Segment Information - Additional Information (Details) $ in Thousands
3 Months Ended
Mar. 31, 2019USD ($) Sep. 30, 2020USD ($)country Sep. 30, 2019USD ($) Sep. 30, 2018USD ($)
$ 13,700
$ 0 $ 0 $ 30,000
50
$ 13,700
$ 30,000
12 Months Ended
Segment Reporting Information [Line Items]
Revenue
Operating income
Assets
Depreciation and amortization
Capital expenditures
Pharmaceutical Distribution
Segment Reporting Information [Line Items]
Capital expenditures
Other
Segment Reporting Information [Line Items]
Capital expenditures
Operating segments
Segment Reporting Information [Line Items]
Operating income
Operating segments | Pharmaceutical Distribution
Segment Reporting Information [Line Items]
Revenue
Operating income
Depreciation and amortization
Operating segments | MWI Animal Health
Segment Reporting Information [Line Items]
Revenue
Operating segments | Global Commercialization Services
Segment Reporting Information [Line Items]
Revenue
Operating segments | Other
Segment Reporting Information [Line Items]
Revenue
Operating income
Depreciation and amortization
Intersegment eliminations
Segment Reporting Information [Line Items]
Revenue
Operating income
Segment reconciling items
Segment Reporting Information [Line Items]
Acquisition-related intangibles amortization
Business Segment Information - Reconciliation of Segment Revenue, Operating Income, Assets,
Depreciation and Amortization, and Capital Expenditures (Details) - USD ($) $ in Thousands
Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019
$ 49,244,768 $ 45,366,777 $ 47,417,639 $ 47,864,742 $ 45,637,802 $ 45,239,265
(6,113,137) $ 404,831 $ 309,515 $ 263,437 179,841 $ 406,694
$ 44,274,830 $ 39,171,980
3 Months Ended
Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 43,319,602 $ 45,392,452 $ 189,893,926 $ 179,589,121 $ 167,939,635
$ 47,565 $ 477,823 (5,135,354) 1,111,923 1,443,685
44,274,830 39,171,980
391,062 462,407 465,127
369,677 310,222 336,411
201,144 210,161 190,191
168,533 100,061 146,220
2,204,447 2,051,252 1,981,230
182,467,189 172,813,537 161,699,343
1,807,001 1,671,251 1,626,748
203,062 232,735 225,608
4,216,462 3,975,232 3,789,759
3,308,640 2,893,109 2,542,971
7,525,102 6,868,341 6,332,730
400,139 380,660 355,091
77,522 69,824 64,768
(98,365) (92,757) (92,438)
(2,693) (659) (609)
$ 110,478 $ 159,848 $ 174,751
12 Months Ended
Segment Reporting Information [Line Items]
Operating income
Gain from antitrust litigation settlements
LIFO (expense) credit
PharMEDium remediation costs
PharMEDium shutdown costs
Contingent consideration adjustment
Employee severance, litigation, and other
Goodwill impairment
Impairment of long-lived assets
Other (income) loss
Interest expense, net
Loss on consolidation of equity investments
Loss on early retirement of debt
(Loss) income before income taxes
Operating segments
Segment Reporting Information [Line Items]
Operating income
Segment reconciling items
Segment Reporting Information [Line Items]
Gain from antitrust litigation settlements
LIFO (expense) credit
PharMEDium remediation costs
PharMEDium shutdown costs
New York State Opioid Stewardship Act
Acquisition-related intangibles amortization
Employee severance, litigation, and other
Goodwill impairment
Impairment of long-lived assets
Business Segment Information - Reconciliation of Segment Operating Income to Income From
Continuing Operations (Details) - USD ($)
Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019
############# $ 404,831,000 $ 309,515,000 $ 263,437,000 $ 179,841,000 $ 406,694,000
500,000 100,000 8,500,000 3,100,000 3,500,000
35,800,000 (6,100,000) (23,900,000) (13,300,000) (57,200,000) 9,900,000
(7,100,000) (6,700,000) (11,700,000)
(400,000) (5,000,000)
$ 0 0 $ (223,652,000) $ (138,000,000) $ 0 $ 0
$ (22,200,000)
3 Months Ended
Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 47,565,000 $ 477,823,000 $ (5,135,354,000) $ 1,111,923,000 $ 1,443,685,000
52,000,000 87,300,000 9,100,000 145,900,000 35,900,000
66,800,000 3,000,000 (7,422,000) 22,544,000 (67,324,000)
(12,300,000) (17,900,000)
12,153,000 0 0
(6,807,307,000) (330,474,000) (183,520,000)
0 0 (59,684,000)
$ (570,000,000) $ 0 (361,652,000) (570,000,000) 0
(1,581,000) (12,952,000) 25,469,000
137,883,000 157,769,000 174,699,000
0 0 42,328,000
22,175,000 0 23,766,000
(5,293,831,000) 967,106,000 1,177,423,000
2,204,447,000 2,051,252,000 1,981,230,000
9,076,000 145,872,000 35,938,000
(7,422,000) 22,544,000 (67,324,000)
(16,165,000) (69,423,000) (66,204,000)
(43,206,000) 0 0
(14,800,000) 22,000,000 (22,000,000)
(110,478,000) (159,848,000) (174,751,000)
(6,807,307,000) (330,474,000) (183,520,000)
0 0 (59,684,000)
$ (361,652,000) $ (570,000,000) $ 0
12 Months Ended
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions Sep. 30, 2020
Carrying amount
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Long-term debt $ 3,618.3
Fair value | Level 1 | Money market accounts
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash and cash equivalents 2,548
Fair value | Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Long-term debt $ 4,026.4
Sep. 30, 2019
$ 4,033.9
1,552
$ 4,158.4
Segment Reporting Information [Line Items]
Revenue
Gross profit
Distribution, selling, and administrative expenses; depreciation; and amortization
Employee severance, litigation, and other
Impairment of PharMEDium assets
Operating (loss) income
Net (loss) income
Net income attributable to AmerisourceBergen Corporation
Earnings per share operations:
Basic (usd per share)
Diluted (usd per share)
Gain (loss) related to litigation settlement
LIFO charges (credit)
PharMEDium remediation costs
PharMEDium shutdown costs
Legal accrual
Income tax benefit
Loss on early retirement of debt
Tax benefit related to Switzerland tax reform
Estimated liability under the New York Opioid Stewardship Act
Gain on sale of equity investment
Opioid Lawsuits and Investigations
Earnings per share operations:
Legal accrual
Income tax benefit
PharMEDium Healthcare Holdings, Inc
Earnings per share operations:
Income tax benefit
Adjustment to discrete tax benefits
Swiss Federal Tax Administration
Earnings per share operations:
Tax benefit related to Switzerland tax reform
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in
Thousands
Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Jun. 30, 2019
$ 49,244,768 $ 45,366,777 $ 47,417,639 $ 47,864,742 $ 45,637,802 $ 45,239,265
1,346,847 1,225,716 1,388,107 1,231,214 1,184,737 1,231,239
818,303 762,300 787,208 790,468 830,489 764,539
6,641,681 58,585 67,732 39,309 174,407 60,006
0 0 223,652 138,000 0 0
(6,113,137) 404,831 309,515 263,437 179,841 406,694
(4,844,505) 287,268 971,111 186,568 132,307 302,002
$ (4,846,072) $ 289,439 $ 960,277 $ 187,640 $ 132,619 $ 301,959
$ (23.74) $ 1.42 $ 4.68 $ 0.91 $ 0.64 $ 1.44
$ (23.74) $ 1.41 $ 4.64 $ 0.90 $ 0.63 $ 1.43
$ 500 $ 100 $ 8,500 $ 3,100 $ 3,500
(35,800) $ 6,100 23,900 13,300 57,200 (9,900)
$ 7,100 $ 6,700 $ 11,700
400 5,000
$ (22,200)
(14,800)
6,600,000
1,100,000
$ (741,000)
(20,400)
$ 360,700
3 Months Ended
Mar. 31, 2019 Dec. 31, 2018 Sep. 30, 2018 Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 43,319,602 $ 45,392,452 $ 189,893,926 $ 179,589,121 $ 167,939,635
1,424,756 1,297,580 5,191,884 5,138,312 4,612,317
751,802 779,085 3,158,279 3,125,915
55,389 40,672 6,807,307 330,474
570,000 0 361,652 570,000 0
47,565 477,823 (5,135,354) 1,111,923 1,443,685
28,073 391,753 (3,399,558) 854,135 1,615,892
$ 27,135 $ 393,652 $ (3,408,716) $ 855,365 $ 1,658,405
$ 0.13 $ 1.86 $ (16.65) $ 4.07 $ 7.61
$ 0.13 $ 1.84 $ (16.65) $ 4.04 $ 7.53
$ 52,000 $ 87,300 $ 9,100 $ 145,900 $ 35,900
(66,800) (3,000) 7,422 (22,544) 67,324
12,300 17,900
6,722,346 185,145 61,527
37,000 1,894,273 (112,971) 438,469
22,175 0 23,766
365,949 $ 2,196 $ 1,388
$ (22,000) $ 22,000
$ 13,700
$ 655,000
12 Months Ended
1 Months Ended
Nov. 30, 2020$ / shares
Subsequent Event [Line Items]
Dividend increase percentage 5.00%
Quarterly cash dividend declared (usd per share) $ 0.44
Subsequent Event (Details) - Subsequent Event
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period
Charged to Costs and Expenses
Deductions
Balance at End of Period
Schedule II - Valuation and Qualifying Accounts (Details) - Allowances for returns and doubtful
accounts - USD ($) $ in Thousands
Sep. 30, 2020 Sep. 30, 2019 Sep. 30, 2018
$ 1,223,887 $ 1,049,901 $ 1,068,251
4,019,830 3,720,642 3,397,562
(3,826,409) (3,546,656) (3,415,912)
$ 1,417,308 $ 1,223,887 $ 1,049,901
12 Months Ended
Schedule II - Valuation and Qualifying Accounts - Additional Information (Details) - USD ($) $ in
Thousands
Allowance for Doubtful Accounts for Long-term Accounts Receivable | Other Assets
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Allowance for doubtful accounts for long-term accounts receivable
Sep. 30, 2019 Sep. 30, 2018
$ 981 $ 13,568
