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x
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
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|
|
|
|
|
Virginia
|
|
54-1701843
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
9120 Lockwood Boulevard, Mechanicsville, Virginia
|
|
23116
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $2 par value
|
|
New York Stock Exchange
|
3.875% Senior Notes due 2021
|
|
Not Listed
|
4.375% Senior Notes due 2024
|
|
Not Listed
|
|
|
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
¨
|
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|
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|
|||
Non-accelerated filer
|
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¨
|
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Smaller reporting company
|
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¨
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Item No.
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Page
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1
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||
1A.
|
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||
1B.
|
|
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||
2
|
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|
||
3
|
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||
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||
4
|
|
|
Mine Safety Disclosures
|
|
5
|
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||
6
|
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||
7
|
|
|
||
7A.
|
|
|
||
8
|
|
|
||
9
|
|
|
||
9A.
|
|
|
||
9B.
|
|
|
||
|
|
|||
|
|
|||
|
|
|
|
|
|
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||
|
|
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|
10
|
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||
11
|
|
|
||
12
|
|
|
||
13
|
|
|
||
14
|
|
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||
|
|
|
|
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||
|
|
|
|
|
15
|
|
|
GPO
|
|
Year of Renewal
|
|
Term
|
|
Sales to Members as a % of Consolidated Net Revenue in 2018
|
Vizient
|
|
2016
|
|
3 years
|
|
40%
|
Premier
|
|
2016
|
|
5 years
|
|
19%
|
HPG
|
|
2017
|
|
4 years
|
|
13%
|
•
|
Expenses and difficulties in the transition and integration of operations and systems;
|
•
|
Retention of current customers and the ability to obtain new customers;
|
•
|
The assimilation and retention of personnel, including management personnel, in the acquired businesses;
|
•
|
Accounting, tax, regulatory and compliance issues that could arise;
|
•
|
Difficulties in implementing uniform controls, procedures and policies in our acquired companies, or in remediating control deficiencies in acquired companies not formerly subject to the Sarbanes-Oxley Act of 2002;
|
•
|
Unanticipated expenses incurred or charges to earnings based on unknown circumstances or liabilities;
|
•
|
Failure to realize the synergies and other benefits we expect from the acquisition at the pace we anticipate;
|
•
|
General economic conditions in the markets in which the acquired businesses operate;
|
•
|
Difficulties encountered in conducting business in markets where we have limited experience and expertise;
|
•
|
Failure to fully integrate Information Technology;
|
•
|
Inadequate indemnification from the seller; and
|
•
|
Failure of the seller to perform under the transition services agreement.
|
•
|
Lack of familiarity with and expertise in conducting business in foreign markets;
|
•
|
Foreign currency fluctuations and exchange risk;
|
•
|
Unexpected changes in foreign regulations or conditions relating to labor, the economic or political environment, and social norms or requirements;
|
•
|
Adverse tax consequences and difficulties in repatriating cash generated or held abroad;
|
•
|
Local economic environments, such as in the European markets served by both the Global Solutions and Global Products business units, including recession, inflation, indebtedness, currency volatility and competition; and
|
•
|
Changes in trade protection laws and other laws affecting trade and investment, including import/export regulations in both the United States and foreign countries.
|
•
|
the publication of earnings estimates or other research reports and speculation in the press or investment community;
|
•
|
changes in our industry and competitors;
|
•
|
changes in government or legislation;
|
•
|
our financial condition, results of operations and cash flows and prospects;
|
•
|
stock repurchases;
|
•
|
activism by any single large shareholder or combination of shareholders;
|
•
|
any future issuances of our common stock, which may include primary offerings for cash, stock splits, issuances in connection with business acquisitions, issuances of restricted stock/units and the grant or exercise of stock options from time to time;
|
•
|
general market and economic conditions; and
|
•
|
any outbreak or escalation of hostilities in areas where we do business.
|
|
Base
Period
|
|
Years Ended
|
||||||||||||||||||||
Company Name / Index
|
12/2013
|
|
12/2014
|
|
12/2015
|
|
12/2016
|
|
12/2017
|
|
12/2018
|
||||||||||||
Owens & Minor, Inc.
|
$
|
100.00
|
|
|
$
|
98.9
|
|
|
$
|
104.3
|
|
|
$
|
105.2
|
|
|
$
|
58.5
|
|
|
$
|
20.8
|
|
S&P 500 Index
|
100.00
|
|
|
113.7
|
|
|
115.3
|
|
|
129.1
|
|
|
157.2
|
|
|
150.3
|
|
||||||
S&P 500 Healthcare
|
100.00
|
|
|
125.3
|
|
|
134.0
|
|
|
130.4
|
|
|
159.2
|
|
|
169.4
|
|
|
At or for the years ended December 31,
|
|||||||||||||||||||
|
2018
(1)
|
|
2017
(2)
|
|
2016
(3)
|
|
2015
(4)
|
|
2014
(5)
|
|
||||||||||
Summary of Operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
9,838,708
|
|
|
$
|
9,318,275
|
|
|
$
|
9,723,431
|
|
|
$
|
9,772,946
|
|
|
$
|
9,440,182
|
|
|
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
|
$
|
103,409
|
|
|
$
|
66,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share—basic and diluted
|
$
|
(7.28
|
)
|
|
$
|
1.20
|
|
|
$
|
1.76
|
|
|
$
|
1.65
|
|
|
$
|
1.06
|
|
|
Cash dividends
|
$
|
0.86
|
|
|
$
|
1.03
|
|
|
$
|
1.02
|
|
|
$
|
1.01
|
|
|
$
|
1.00
|
|
|
Stock price at year end
|
$
|
6.33
|
|
|
$
|
18.88
|
|
|
$
|
35.29
|
|
|
$
|
35.98
|
|
|
$
|
35.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Summary of Financial Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
3,773,788
|
|
|
$
|
3,376,293
|
|
|
$
|
2,717,752
|
|
|
$
|
2,773,776
|
|
|
$
|
2,729,963
|
|
|
Cash and cash equivalents
|
$
|
103,367
|
|
|
$
|
104,522
|
|
|
$
|
185,488
|
|
|
$
|
161,020
|
|
|
$
|
56,772
|
|
|
Total debt
|
$
|
1,681,172
|
|
|
$
|
917,363
|
|
|
$
|
569,387
|
|
|
$
|
573,522
|
|
|
$
|
609,173
|
|
|
Total equity
|
$
|
518,419
|
|
|
$
|
1,015,479
|
|
|
$
|
960,038
|
|
|
$
|
992,590
|
|
|
$
|
990,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin as a percent of revenue
|
13.89
|
%
|
|
12.58
|
%
|
|
12.21
|
%
|
|
12.43
|
%
|
|
12.39
|
%
|
|
|||||
Distribution, selling and administrative expenses as a percent of revenue
|
12.83
|
%
|
|
10.91
|
%
|
|
9.98
|
%
|
|
10.17
|
%
|
|
10.42
|
%
|
|
|||||
Operating income (loss) as a percent of revenue
|
(3.99
|
)%
|
|
0.96
|
%
|
|
2.05
|
%
|
|
2.05
|
%
|
|
1.69
|
%
|
|
|||||
Days sales outstanding (DSO)
(6)
|
28.5
|
|
|
28.7
|
|
|
23.1
|
|
|
21.0
|
|
|
22.1
|
|
|
|||||
Average annual inventory turnover
(7)
|
7.4
|
|
|
8.5
|
|
|
9.2
|
|
|
9.4
|
|
|
10.1
|
|
|
|
For the years ended December 31,
|
||||||||||
(Dollars in thousands, except per share data)
|
2018
|
|
2017
|
|
2016
|
||||||
Operating income (loss), as reported (GAAP)
|
$
|
(392,174
|
)
|
|
$
|
89,251
|
|
|
$
|
199,599
|
|
Intangible amortization
(1)
|
36,514
|
|
|
16,402
|
|
|
10,002
|
|
|||
Goodwill and intangible asset impairment charges
(2)
|
439,613
|
|
|
—
|
|
|
—
|
|
|||
Acquisition-related and exit and realignment charges
(3)
|
62,200
|
|
|
60,707
|
|
|
24,675
|
|
|||
Fair value adjustments related to purchase accounting
(4)
|
27,088
|
|
|
—
|
|
|
—
|
|
|||
Other
(5)
|
3,532
|
|
|
13,432
|
|
|
—
|
|
|||
Operating income, adjusted (non-GAAP) (Adjusted Operated Income)
|
$
|
176,773
|
|
|
$
|
179,792
|
|
|
$
|
234,276
|
|
|
|
|
|
|
|
||||||
Net income (loss) as reported (GAAP)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
Intangible amortization
(1)
|
36,514
|
|
|
16,402
|
|
|
10,002
|
|
|||
Income tax expense (benefit)
(6)
|
(7,677
|
)
|
|
(5,214
|
)
|
|
(2,592
|
)
|
|||
Goodwill and intangible asset impairment charges
(2)
|
439,613
|
|
|
—
|
|
|
—
|
|
|||
Income tax expense (benefit)
(6)
|
(32,729
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition-related and exit and realignment charges
(3)
|
62,200
|
|
|
60,707
|
|
|
24,675
|
|
|||
Income tax expense (benefit)
(6)
|
(13,079
|
)
|
|
(22,200
|
)
|
|
(6,835
|
)
|
|||
Fair value adjustments related to purchase accounting
(4)
|
27,088
|
|
|
—
|
|
|
—
|
|
|||
Income tax expense (benefit)
(6)
|
(5,696
|
)
|
|
—
|
|
|
—
|
|
|||
Other
(5)
|
3,532
|
|
|
13,432
|
|
|
—
|
|
|||
Income tax expense (benefit)
(6)
|
(743
|
)
|
|
(3,792
|
)
|
|
—
|
|
|||
Tax adjustments
(7)
|
(1,596
|
)
|
|
(34,591
|
)
|
|
—
|
|
|||
Net income, adjusted (non-GAAP) (Adjusted Net Income)
|
$
|
70,415
|
|
|
$
|
97,537
|
|
|
$
|
134,037
|
|
|
|
|
|
|
|
||||||
Net income (loss) per diluted common share, as reported (GAAP)
|
$
|
(7.28
|
)
|
|
$
|
1.20
|
|
|
$
|
1.76
|
|
Intangible amortization
(1)
|
0.47
|
|
|
0.18
|
|
|
0.12
|
|
|||
Goodwill and intangible asset impairment charges
(2)
|
6.81
|
|
|
—
|
|
|
—
|
|
|||
Acquisition-related and exit and realignment charges
(3)
|
0.80
|
|
|
0.65
|
|
|
0.29
|
|
|||
Fair value adjustments related to purchase accounting
(4)
|
0.33
|
|
|
—
|
|
|
—
|
|
|||
Other
(5)
|
0.04
|
|
|
0.16
|
|
|
—
|
|
|||
Tax adjustments
(7)
|
(0.02
|
)
|
|
(0.58
|
)
|
|
—
|
|
|||
Net income per diluted common share, adjusted (non-GAAP) (Adjusted EPS)
|
$
|
1.15
|
|
|
$
|
1.61
|
|
|
$
|
2.17
|
|
Net revenue.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Global Solutions
|
$
|
9,188,066
|
|
|
$
|
9,186,018
|
|
|
$
|
2,048
|
|
|
—
|
%
|
Global Products
|
1,111,322
|
|
|
504,026
|
|
|
607,296
|
|
|
120.5
|
%
|
|||
Inter-segment
|
(460,680
|
)
|
|
(371,769
|
)
|
|
(88,911
|
)
|
|
23.9
|
%
|
|||
Net revenue
|
$
|
9,838,708
|
|
|
$
|
9,318,275
|
|
|
$
|
520,433
|
|
|
5.6
|
%
|
Cost of goods sold.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Cost of goods sold
|
$
|
8,471,745
|
|
|
$
|
8,146,409
|
|
|
$
|
325,336
|
|
|
4.0
|
%
|
Gross margin.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Gross margin
|
$
|
1,366,963
|
|
|
$
|
1,171,866
|
|
|
$
|
195,097
|
|
|
16.6
|
%
|
As a % of net revenue
|
13.89
|
%
|
|
12.58
|
%
|
|
|
|
|
Operating expenses.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Distribution, selling & administrative expenses
|
$
|
1,261,748
|
|
|
$
|
1,016,978
|
|
|
$
|
244,770
|
|
|
24.1
|
%
|
As a % of net revenue
|
12.83
|
%
|
|
10.91
|
%
|
|
|
|
|
|||||
Other operating (income) expense, net
|
$
|
(4,424
|
)
|
|
$
|
4,930
|
|
|
$
|
(9,354
|
)
|
|
(189.7
|
)%
|
Interest expense, net.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Interest expense, net
|
$
|
77,021
|
|
|
$
|
31,773
|
|
|
$
|
45,248
|
|
|
142.4
|
%
|
Effective interest rate
|
5.30
|
%
|
|
4.34
|
%
|
|
|
|
|
Income taxes.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Income tax (benefit) provision
|
$
|
(32,183
|
)
|
|
$
|
(15,315
|
)
|
|
$
|
(16,868
|
)
|
|
(110.1
|
)%
|
Effective tax rate
|
6.9
|
%
|
|
(26.6
|
)%
|
|
|
|
|
Net revenue.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Global Solutions
|
$
|
9,186,018
|
|
|
$
|
9,535,248
|
|
|
$
|
(349,230
|
)
|
|
(3.7
|
)%
|
Global Products
|
504,026
|
|
|
539,580
|
|
|
(35,554
|
)
|
|
(6.6
|
)%
|
|||
Inter-segment
|
(371,769
|
)
|
|
(351,397
|
)
|
|
(20,372
|
)
|
|
5.8
|
%
|
|||
Net revenue
|
$
|
9,318,275
|
|
|
$
|
9,723,431
|
|
|
$
|
(405,156
|
)
|
|
(4.2
|
)%
|
Cost of goods sold.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Cost of goods sold
|
$
|
8,146,409
|
|
|
$
|
8,536,121
|
|
|
$
|
(389,712
|
)
|
|
(4.6
|
)%
|
Gross margin.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Gross margin
|
$
|
1,171,866
|
|
|
$
|
1,187,310
|
|
|
$
|
(15,444
|
)
|
|
(1.3
|
)%
|
As a % of net revenue
|
12.58
|
%
|
|
12.21
|
%
|
|
|
|
|
Interest expense, net.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Interest expense, net
|
$
|
31,773
|
|
|
$
|
27,057
|
|
|
$
|
4,716
|
|
|
17.4
|
%
|
Effective interest rate
|
4.34
|
%
|
|
4.93
|
%
|
|
|
|
|
Income taxes.
|
For the years ended December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
Income tax (benefit) provision
|
$
|
(15,315
|
)
|
|
$
|
63,755
|
|
|
$
|
(79,070
|
)
|
|
(124.0
|
)%
|
Effective tax rate
|
(26.6
|
)%
|
|
37.0
|
%
|
|
|
|
|
|
December 31,
|
|
Change
|
|||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
Cash and cash equivalents
|
$
|
103,367
|
|
|
$
|
104,522
|
|
|
$
|
(1,155
|
)
|
|
(1.1
|
)%
|
Accounts receivable, net
|
$
|
823,418
|
|
|
$
|
758,936
|
|
|
$
|
64,482
|
|
|
8.5
|
%
|
Days sales outstanding
(1)
|
28.5
|
|
|
28.7
|
|
|
|
|
|
|||||
Merchandise inventories
|
$
|
1,290,103
|
|
|
$
|
990,193
|
|
|
$
|
299,910
|
|
|
30.3
|
%
|
Inventory turnover
(2)
|
7.4
|
|
|
8.5
|
|
|
|
|
|
|||||
Accounts payable
|
$
|
1,109,589
|
|
|
$
|
947,572
|
|
|
$
|
162,017
|
|
|
17.1
|
%
|
|
For the years ended December 31,
|
||||||||||
(Dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Net cash provided by (used for):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
115,589
|
|
|
$
|
56,774
|
|
|
$
|
187,695
|
|
Investing activities
|
(815,829
|
)
|
|
(416,643
|
)
|
|
(24,746
|
)
|
|||
Financing activities
|
701,071
|
|
|
272,806
|
|
|
(142,704
|
)
|
|||
Effect of exchange rate changes on cash
|
(1,986
|
)
|
|
6,097
|
|
|
4,223
|
|
|||
Increase (decrease) in cash and cash equivalents
|
$
|
(1,155
|
)
|
|
$
|
(80,966
|
)
|
|
$
|
24,468
|
|
(Dollars in thousands)
|
Payments due by period
|
||||||||||||||||||
Contractual obligations
|
Total
|
|
Less than 1
year
|
|
1-3 years
|
|
4-5 years
|
|
After 5
years
|
||||||||||
Long-term debt
(1)
|
$
|
2,102,428
|
|
|
$
|
105,029
|
|
|
$
|
504,834
|
|
|
$
|
678,535
|
|
|
$
|
814,030
|
|
Purchase obligations
(2)
|
141,762
|
|
|
49,388
|
|
|
79,832
|
|
|
9,718
|
|
|
2,824
|
|
|||||
Operating leases
(2)
|
251,748
|
|
|
64,082
|
|
|
95,618
|
|
|
46,340
|
|
|
45,708
|
|
|||||
Capital lease obligations
(1)
|
25,479
|
|
|
5,735
|
|
|
5,744
|
|
|
4,003
|
|
|
9,997
|
|
|||||
Unrecognized tax benefits, net
(3)
|
9,568
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other long-term liabilities
(4)
|
74,670
|
|
|
3,478
|
|
|
7,061
|
|
|
6,926
|
|
|
57,205
|
|
|||||
Total contractual obligations
|
$
|
2,605,655
|
|
|
$
|
227,712
|
|
|
$
|
693,089
|
|
|
$
|
745,522
|
|
|
$
|
929,764
|
|
|
Page
|
Consolidated Statements of Income (Loss) for the Years Ended December 31, 2018, 2017 and 2016
|
|
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2018, 2017, and 2016
|
|
Consolidated Balance Sheets as of December 31, 2018 and 2017
|
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2018, 2017 and 2016
|
|
Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2018, 2017 and 2016
|
|
Notes to Consolidated Financial Statements
|
|
Report of Independent Registered Public Accounting Firm
|
|
Selected Quarterly Financial Information (unaudited)
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Net revenue
|
$
|
9,838,708
|
|
|
$
|
9,318,275
|
|
|
$
|
9,723,431
|
|
Cost of goods sold
|
8,471,745
|
|
|
8,146,409
|
|
|
8,536,121
|
|
|||
Gross margin
|
1,366,963
|
|
|
1,171,866
|
|
|
1,187,310
|
|
|||
Distribution, selling and administrative expenses
|
1,261,748
|
|
|
1,016,978
|
|
|
970,424
|
|
|||
Goodwill and intangible asset impairment charges
|
439,613
|
|
|
—
|
|
|
—
|
|
|||
Acquisition-related and exit and realignment charges
|
62,200
|
|
|
60,707
|
|
|
24,675
|
|
|||
Other operating (income) expense, net
|
(4,424
|
)
|
|
4,930
|
|
|
(7,388
|
)
|
|||
Operating income (loss)
|
(392,174
|
)
|
|
89,251
|
|
|
199,599
|
|
|||
Interest expense, net
|
77,021
|
|
|
31,773
|
|
|
27,057
|
|
|||
Income (loss) before income taxes
|
(469,195
|
)
|
|
57,478
|
|
|
172,542
|
|
|||
Income tax (benefit) provision
|
(32,183
|
)
|
|
(15,315
|
)
|
|
63,755
|
|
|||
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
|
|
|
|
|
|
||||||
Net income (loss) per common share: basic and diluted
|
$
|
(7.28
|
)
|
|
$
|
1.20
|
|
|
$
|
1.76
|
|
Cash dividends per common share
|
$
|
0.86
|
|
|
$
|
1.03
|
|
|
$
|
1.02
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Currency translation adjustments (net of income tax of $0 in 2018, 2017 and 2016)
|
(19,366
|
)
|
|
43,060
|
|
|
(15,017
|
)
|
|||
Change in unrecognized net periodic pension costs (net of income tax of $1,377 in 2018, $6 in 2017, and $343 in 2016)
|
3,920
|
|
|
(857
|
)
|
|
(727
|
)
|
|||
Net unrealized gain (loss) on derivative instruments and other (net of income tax of $1,831 in 2018, and $0 in 2017 and 2016)
|
(5,082
|
)
|
|
196
|
|
|
86
|
|
|||
Other comprehensive income (loss)
|
(20,528
|
)
|
|
42,399
|
|
|
(15,658
|
)
|
|||
Comprehensive income (loss)
|
$
|
(457,540
|
)
|
|
$
|
115,192
|
|
|
$
|
93,129
|
|
December 31,
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
103,367
|
|
|
$
|
104,522
|
|
Accounts receivable, net
|
823,418
|
|
|
758,936
|
|
||
Merchandise inventories
|
1,290,103
|
|
|
990,193
|
|
||
Other current assets
|
321,690
|
|
|
328,254
|
|
||
Total current assets
|
2,538,578
|
|
|
2,181,905
|
|
||
Property and equipment, net
|
386,723
|
|
|
206,490
|
|
||
Goodwill, net
|
414,122
|
|
|
713,811
|
|
||
Intangible assets, net
|
321,764
|
|
|
184,468
|
|
||
Other assets, net
|
112,601
|
|
|
89,619
|
|
||
Total assets
|
$
|
3,773,788
|
|
|
$
|
3,376,293
|
|
Liabilities and equity
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
1,109,589
|
|
|
$
|
947,572
|
|
Accrued payroll and related liabilities
|
48,203
|
|
|
30,416
|
|
||
Other current liabilities
|
314,219
|
|
|
331,745
|
|
||
Total current liabilities
|
1,472,011
|
|
|
1,309,733
|
|
||
Long-term debt, excluding current portion
|
1,650,582
|
|
|
900,744
|
|
||
Deferred income taxes
|
50,852
|
|
|
74,247
|
|
||
Other liabilities
|
81,924
|
|
|
76,090
|
|
||
Total liabilities
|
3,255,369
|
|
|
2,360,814
|
|
||
Commitments and contingencies
|
|
|
|
||||
Equity
|
|
|
|
||||
Common stock, par value $2 per share; authorized—200,000 shares; issued and outstanding— 62,294 shares and 61,476 shares
|
124,588
|
|
|
122,952
|
|
||
Paid-in capital
|
238,773
|
|
|
226,937
|
|
||
Retained earnings
|
200,670
|
|
|
690,674
|
|
||
Accumulated other comprehensive loss
|
(45,612
|
)
|
|
(25,084
|
)
|
||
Total equity
|
518,419
|
|
|
1,015,479
|
|
||
Total liabilities and equity
|
$
|
3,773,788
|
|
|
$
|
3,376,293
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
Adjustments to reconcile net income (loss) to cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
101,927
|
|
|
59,443
|
|
|
55,393
|
|
|||
Share-based compensation expense
|
16,376
|
|
|
11,911
|
|
|
12,042
|
|
|||
Goodwill and intangible asset impairment charges
|
439,613
|
|
|
—
|
|
|
—
|
|
|||
Deferred income tax (benefit) expense
|
(35,018
|
)
|
|
(49,988
|
)
|
|
4,218
|
|
|||
Provision for losses on accounts receivable
|
9,430
|
|
|
2,674
|
|
|
377
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
11,106
|
|
|
(100,010
|
)
|
|
(25,244
|
)
|
|||
Merchandise inventories
|
(65,451
|
)
|
|
(57,032
|
)
|
|
22,589
|
|
|||
Accounts payable
|
92,179
|
|
|
143,947
|
|
|
43,430
|
|
|||
Net change in other assets and liabilities
|
(23,604
|
)
|
|
(33,263
|
)
|
|
(37,559
|
)
|
|||
Other, net
|
6,043
|
|
|
6,299
|
|
|
3,662
|
|
|||
Cash provided by operating activities
|
115,589
|
|
|
56,774
|
|
|
187,695
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Acquisitions, net of cash acquired
|
(751,834
|
)
|
|
(366,569
|
)
|
|
—
|
|
|||
Additions to computer software and intangible assets
|
(20,812
|
)
|
|
(16,124
|
)
|
|
(9,819
|
)
|
|||
Additions to property and equipment
|
(44,873
|
)
|
|
(34,613
|
)
|
|
(20,302
|
)
|
|||
Proceeds from sale of property and equipment
|
1,690
|
|
|
663
|
|
|
5,375
|
|
|||
Cash used for investing activities
|
(815,829
|
)
|
|
(416,643
|
)
|
|
(24,746
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of debt
|
695,750
|
|
|
250,000
|
|
|
—
|
|
|||
Proceeds from revolving credit facility
|
105,500
|
|
|
104,600
|
|
|
—
|
|
|||
Repayment of debt
|
(16,250
|
)
|
|
(3,125
|
)
|
|
—
|
|
|||
Financing costs paid
|
(28,512
|
)
|
|
(1,798
|
)
|
|
—
|
|
|||
Cash dividends paid
|
(48,200
|
)
|
|
(63,151
|
)
|
|
(63,382
|
)
|
|||
Repurchases of common stock
|
—
|
|
|
(5,000
|
)
|
|
(71,028
|
)
|
|||
Other, net
|
(7,217
|
)
|
|
(8,720
|
)
|
|
(8,294
|
)
|
|||
Cash provided by (used for) financing activities
|
701,071
|
|
|
272,806
|
|
|
(142,704
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(1,986
|
)
|
|
6,097
|
|
|
4,223
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
(1,155
|
)
|
|
(80,966
|
)
|
|
24,468
|
|
|||
Cash and cash equivalents at beginning of year
|
104,522
|
|
|
185,488
|
|
|
161,020
|
|
|||
Cash and cash equivalents at end of year
|
$
|
103,367
|
|
|
$
|
104,522
|
|
|
$
|
185,488
|
|
|
Common Shares
Outstanding
|
|
Common Stock
($2 par value)
|
|
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total Equity
|
|||||||||||
Balance, December 31, 2015
|
62,803
|
|
|
$
|
125,606
|
|
|
$
|
211,943
|
|
|
$
|
706,866
|
|
|
$
|
(51,825
|
)
|
|
$
|
992,590
|
|
Net income
|
|
|
|
|
|
|
108,787
|
|
|
|
|
108,787
|
|
|||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(15,658
|
)
|
|
(15,658
|
)
|
|||||||||
Dividends declared ($1.02 per share)
|
|
|
|
|
|
|
(63,212
|
)
|
|
|
|
(63,212
|
)
|
|||||||||
Shares repurchased and retired
|
(2,045
|
)
|
|
(4,091
|
)
|
|
|
|
(66,937
|
)
|
|
|
|
(71,028
|
)
|
|||||||
Share-based compensation expense, exercises and other
|
273
|
|
|
547
|
|
|
8,012
|
|
|
|
|
|
|
8,559
|
|
|||||||
Balance, December 31, 2016
|
61,031
|
|
|
122,062
|
|
|
219,955
|
|
|
685,504
|
|
|
(67,483
|
)
|
|
960,038
|
|
|||||
Net income
|
|
|
|
|
|
|
72,793
|
|
|
|
|
72,793
|
|
|||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
42,399
|
|
|
42,399
|
|
|||||||||
Dividends declared ($1.03 per share)
|
|
|
|
|
|
|
(62,933
|
)
|
|
|
|
(62,933
|
)
|
|||||||||
Shares repurchased and retired
|
(155
|
)
|
|
(310
|
)
|
|
|
|
(4,690
|
)
|
|
|
|
(5,000
|
)
|
|||||||
Share-based compensation expense, exercises and other
|
600
|
|
|
1,200
|
|
|
6,982
|
|
|
|
|
|
|
8,182
|
|
|||||||
Balance, December 31, 2017
|
61,476
|
|
|
122,952
|
|
|
226,937
|
|
|
690,674
|
|
|
(25,084
|
)
|
|
1,015,479
|
|
|||||
Net loss
|
|
|
|
|
|
|
(437,012
|
)
|
|
|
|
(437,012
|
)
|
|||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(20,528
|
)
|
|
(20,528
|
)
|
|||||||||
Dividends declared ($0.86 per share)
|
|
|
|
|
|
|
(52,992
|
)
|
|
|
|
(52,992
|
)
|
|||||||||
Share-based compensation expense, exercises and other
|
818
|
|
|
1,636
|
|
|
11,836
|
|
|
|
|
|
|
13,472
|
|
|||||||
Balance, December 31, 2018
|
62,294
|
|
|
$
|
124,588
|
|
|
$
|
238,773
|
|
|
$
|
200,670
|
|
|
$
|
(45,612
|
)
|
|
$
|
518,419
|
|
|
|
Preliminary Fair Value
Originally Estimated as of Acquisition Date (1) |
|
Differences Between Prior and Current Period Preliminary Fair Value Estimate
|
|
Fair Value Estimated as of Acquisition Date
|
||||||
Assets acquired:
|
|
|
|
|
|
|
||||||
Current assets
|
|
$
|
307,427
|
|
|
$
|
23,443
|
|
|
$
|
330,870
|
|
Goodwill
|
|
183,711
|
|
|
(53,347
|
)
|
|
130,364
|
|
|||
Intangible assets
|
|
191,000
|
|
|
230
|
|
|
191,230
|
|
|||
Other noncurrent assets
|
|
152,555
|
|
|
65,685
|
|
|
218,240
|
|
|||
Total assets
|
|
834,693
|
|
|
36,011
|
|
|
870,704
|
|
|||
Liabilities assumed:
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
83,822
|
|
|
8,616
|
|
|
92,438
|
|
|||
Noncurrent liabilities
|
|
11,223
|
|
|
8,994
|
|
|
20,217
|
|
|||
Total liabilities
|
|
95,045
|
|
|
17,610
|
|
|
112,655
|
|
|||
Fair value of net assets acquired, net of cash
|
|
$
|
739,648
|
|
|
$
|
18,401
|
|
|
$
|
758,049
|
|
|
|
Pro Forma - Unaudited
|
||||||
|
|
Year Ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net revenue
|
|
$
|
10,118,708
|
|
|
$
|
10,158,275
|
|
|
Preliminary Fair Value
Originally Estimated as of Acquisition Date (2) |
|
Differences Between Prior and Current Period Preliminary Fair Value Estimate
|
|
Fair Value as of Acquisition Date
|
||||||
Assets acquired:
|
|
|
|
|
|
||||||
Current assets
|
$
|
61,986
|
|
|
$
|
—
|
|
|
$
|
61,986
|
|
Goodwill
|
288,691
|
|
|
(4,933
|
)
|
|
283,758
|
|
|||
Intangible assets
|
115,000
|
|
|
—
|
|
|
115,000
|
|
|||
Other noncurrent assets
|
5,069
|
|
|
(1,282
|
)
|
|
3,787
|
|
|||
Total assets
|
470,746
|
|
|
(6,215
|
)
|
|
464,531
|
|
|||
Liabilities assumed:
|
|
|
|
|
|
||||||
Current liabilities
|
72,962
|
|
|
—
|
|
|
72,962
|
|
|||
Noncurrent liabilities
|
31,215
|
|
|
—
|
|
|
31,215
|
|
|||
Total liabilities
|
104,177
|
|
|
—
|
|
|
104,177
|
|
|||
Fair value of net assets acquired, net of cash
|
$
|
366,569
|
|
|
$
|
(6,215
|
)
|
|
$
|
360,354
|
|
December 31,
|
2018
|
|
2017
|
||||
Land and land improvements
|
$
|
23,046
|
|
|
$
|
17,638
|
|
Buildings and leasehold improvements
|
200,881
|
|
|
148,288
|
|
||
Machinery and equipment
|
418,208
|
|
|
274,604
|
|
||
Construction in progress
|
14,693
|
|
|
5,541
|
|
||
Property and equipment, gross
|
656,828
|
|
|
446,071
|
|
||
Accumulated depreciation and amortization
|
(270,105
|
)
|
|
(239,581
|
)
|
||
Property and equipment, net
|
$
|
386,723
|
|
|
$
|
206,490
|
|
|
|
Global Solutions
|
|
Global Products
|
|
Consolidated
|
||||||
|
|
|
|
|
|
|
||||||
Carrying amount of goodwill, January 1, 2017
|
|
$
|
199,397
|
|
|
$
|
215,539
|
|
|
$
|
414,936
|
|
Acquisitions (See Note 3)
|
|
288,691
|
|
|
—
|
|
|
288,691
|
|
|||
Currency translation adjustments
|
|
7,772
|
|
|
2,412
|
|
|
10,184
|
|
|||
Carrying amount of goodwill, December 31, 2017
|
|
495,860
|
|
|
217,951
|
|
|
713,811
|
|
|||
Currency translation adjustments
|
|
(1,347
|
)
|
|
(637
|
)
|
|
(1,984
|
)
|
|||
Acquisitions (See Note 3)
|
|
(4,933
|
)
|
|
130,364
|
|
|
125,431
|
|
|||
Carrying amount of goodwill, December 31, 2018
|
|
489,580
|
|
|
347,678
|
|
|
837,258
|
|
|||
Accumulated goodwill impairment, December 31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Goodwill impairment charge
|
|
(205,675
|
)
|
|
(217,461
|
)
|
|
(423,136
|
)
|
|||
Accumulated goodwill impairment, December 31, 2018
|
|
(205,675
|
)
|
|
(217,461
|
)
|
|
(423,136
|
)
|
|||
Net carrying amount of goodwill, December 31, 2018
|
|
$
|
283,905
|
|
|
$
|
130,217
|
|
|
$
|
414,122
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Customer
Relationships |
|
Tradenames
|
|
Other
Intangibles |
|
Customer
Relationships |
|
Tradenames
|
|
Other
Intangibles |
||||||||||||
Gross intangible assets
|
$
|
267,510
|
|
|
$
|
97,000
|
|
|
$
|
42,930
|
|
|
$
|
199,265
|
|
|
$
|
31,000
|
|
|
$
|
12,537
|
|
Accumulated amortization
|
(72,947
|
)
|
|
(8,544
|
)
|
|
(4,185
|
)
|
|
(54,757
|
)
|
|
(1,769
|
)
|
|
(1,808
|
)
|
||||||
Net intangible assets
|
$
|
194,563
|
|
|
$
|
88,456
|
|
|
$
|
38,745
|
|
|
$
|
144,508
|
|
|
$
|
29,231
|
|
|
$
|
10,729
|
|
Weighted average useful life
|
10 years
|
|
|
11 years
|
|
|
8 years
|
|
|
11 years
|
|
|
9 years
|
|
|
10 years
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Global Solutions
|
$
|
16,808
|
|
|
$
|
41,549
|
|
|
$
|
21,795
|
|
Global Products
|
133
|
|
|
1,893
|
|
|
1,669
|
|
|||
Total exit and realignment charges
|
$
|
16,941
|
|
|
$
|
43,442
|
|
|
$
|
23,464
|
|
|
Lease
Obligations |
|
Severance and
Other |
|
Total
|
||||||
Accrued exit and realignment charges, January 1, 2016
|
$
|
486
|
|
|
$
|
1,840
|
|
|
$
|
2,326
|
|
Provision for exit and realignment activities
|
—
|
|
|
11,823
|
|
|
11,823
|
|
|||
Change in estimate
|
—
|
|
|
(261
|
)
|
|
(261
|
)
|
|||
Cash payments, net of sublease income
|
(486
|
)
|
|
(11,164
|
)
|
|
(11,650
|
)
|
|||
Accrued exit and realignment charges, December 31, 2016
|
—
|
|
|
2,238
|
|
|
2,238
|
|
|||
Provision for exit and realignment activities
|
—
|
|
|
17,691
|
|
|
17,691
|
|
|||
Change in estimate
|
—
|
|
|
(365
|
)
|
|
(365
|
)
|
|||
Cash payments, net of sublease income
|
—
|
|
|
(7,592
|
)
|
|
(7,592
|
)
|
|||
Accrued exit and realignment charges, December 31, 2017
|
—
|
|
|
11,972
|
|
|
11,972
|
|
|||
Provision for exit and realignment activities
|
—
|
|
|
10,325
|
|
|
10,325
|
|
|||
Change in estimate
|
—
|
|
|
(108
|
)
|
|
(108
|
)
|
|||
Cash payments, net of sublease income
|
—
|
|
|
(13,975
|
)
|
|
(13,975
|
)
|
|||
Accrued exit and realignment charges, December 31, 2018
|
$
|
—
|
|
|
$
|
8,214
|
|
|
$
|
8,214
|
|
|
2018
|
|
2017
|
||||||||||||
December 31,
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Carrying
Amount |
|
Estimated
Fair Value |
||||||||
3.875% Senior Notes, $275 million par value, maturing September 2021
|
$
|
273,577
|
|
|
$
|
207,001
|
|
|
$
|
272,734
|
|
|
$
|
278,080
|
|
4.375% Senior Notes, $275 million par value, maturing December 2024
|
272,972
|
|
|
174,859
|
|
|
272,959
|
|
|
277,915
|
|
||||
Term Loan A-1
|
231,847
|
|
|
231,847
|
|
|
246,182
|
|
|
246,182
|
|
||||
Term Loan A-2
|
190,575
|
|
|
190,575
|
|
|
—
|
|
|
—
|
|
||||
Term Loan B
|
483,327
|
|
|
385,284
|
|
|
—
|
|
|
—
|
|
||||
Revolver
|
210,100
|
|
|
210,100
|
|
|
104,600
|
|
|
104,600
|
|
||||
Capital leases
|
18,774
|
|
|
18,774
|
|
|
20,888
|
|
|
20,888
|
|
||||
Total debt
|
1,681,172
|
|
|
1,418,440
|
|
|
917,363
|
|
|
927,665
|
|
||||
Less current maturities
|
(30,590
|
)
|
|
(30,590
|
)
|
|
(16,619
|
)
|
|
(16,619
|
)
|
||||
Long-term debt
|
$
|
1,650,582
|
|
|
$
|
1,387,850
|
|
|
$
|
900,744
|
|
|
$
|
911,046
|
|
Year
|
|
||
|
|
||
2019
|
$
|
5,735
|
|
2020
|
3,471
|
|
|
2021
|
2,273
|
|
|
2022
|
2,051
|
|
|
2023
|
1,952
|
|
|
Thereafter
|
9,997
|
|
|
Total minimum lease payments
|
25,479
|
|
|
Less: Amounts representing interest
|
(6,705
|
)
|
|
Present value of total minimum lease payments
|
18,774
|
|
|
Less: Current portion of capital lease obligations
|
(3,090
|
)
|
|
Long-term portion of capital lease obligations
|
$
|
15,684
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
Number of
Shares |
|
Weighted
Average Grant-date Value Per Share |
|
Number of
Shares |
|
Weighted
Average Grant-date Value Per Share |
|
Number of
Shares |
|
Weighted
Average Grant-date Value Per Share |
|||||||||
Nonvested awards at beginning of year
|
1,657
|
|
|
$
|
42.60
|
|
|
1,091
|
|
|
$
|
44.15
|
|
|
1,104
|
|
|
$
|
40.02
|
|
Granted
|
2,281
|
|
|
15.33
|
|
|
1,152
|
|
|
30.55
|
|
|
572
|
|
|
34.75
|
|
|||
Vested
|
(616
|
)
|
|
31.59
|
|
|
(351
|
)
|
|
33.97
|
|
|
(337
|
)
|
|
32.65
|
|
|||
Forfeited
|
(809
|
)
|
|
22.59
|
|
|
(235
|
)
|
|
34.49
|
|
|
(248
|
)
|
|
34.06
|
|
|||
Nonvested awards at end of year
|
2,513
|
|
|
23.96
|
|
|
1,657
|
|
|
42.60
|
|
|
1,091
|
|
|
44.15
|
|
December 31,
|
2018
|
|
2017
|
||||
Change in benefit obligation
|
|
|
|
||||
Benefit obligation, beginning of year
|
$
|
53,274
|
|
|
$
|
52,051
|
|
Interest cost
|
1,674
|
|
|
1,887
|
|
||
Actuarial (gain) loss
|
(3,207
|
)
|
|
2,796
|
|
||
Benefits paid
|
(3,578
|
)
|
|
(3,460
|
)
|
||
Benefit obligation, end of year
|
$
|
48,163
|
|
|
$
|
53,274
|
|
Change in plan assets
|
|
|
|
||||
Fair value of plan assets, beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
Employer contribution
|
3,578
|
|
|
3,460
|
|
||
Benefits paid
|
(3,578
|
)
|
|
(3,460
|
)
|
||
Fair value of plan assets, end of year
|
$
|
—
|
|
|
$
|
—
|
|
Funded status, end of year
|
$
|
(48,163
|
)
|
|
$
|
(53,274
|
)
|
Amounts recognized in the consolidated balance sheets
|
|
|
|
||||
Other current liabilities
|
$
|
(3,410
|
)
|
|
$
|
(3,481
|
)
|
Other liabilities
|
(44,752
|
)
|
|
(49,791
|
)
|
||
Accumulated other comprehensive loss
|
13,722
|
|
|
19,019
|
|
||
Net amount recognized
|
$
|
(34,440
|
)
|
|
$
|
(34,253
|
)
|
Accumulated benefit obligation
|
$
|
48,163
|
|
|
$
|
53,274
|
|
Weighted average assumptions used to determine benefit obligation
|
|
|
|
||||
Discount rate
|
4.00
|
%
|
|
3.25
|
%
|
||
Rate of increase in compensation levels
|
N/A
|
|
|
N/A
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Interest cost
|
$
|
1,674
|
|
|
$
|
1,887
|
|
|
$
|
1,980
|
|
Recognized net actuarial loss
|
2,091
|
|
|
1,849
|
|
|
1,646
|
|
|||
Net periodic benefit cost
|
$
|
3,765
|
|
|
$
|
3,736
|
|
|
$
|
3,626
|
|
Weighted average assumptions used to determine net periodic benefit cost
|
|
|
|
|
|
||||||
Discount rate
|
3.25
|
%
|
|
3.75
|
%
|
|
4.00
|
%
|
|||
Rate of increase in future compensation levels
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Year ended December 31,
|
2018
|
|
2017
|
||||
Net actuarial loss
|
$
|
(13,722
|
)
|
|
$
|
(19,019
|
)
|
Deferred tax benefit
|
5,562
|
|
|
6,939
|
|
||
Amounts included in accumulated other comprehensive income (loss), net of tax
|
$
|
(8,160
|
)
|
|
$
|
(12,080
|
)
|
Year
|
|
||
2019
|
$
|
3,378
|
|
2020
|
3,325
|
|
|
2021
|
3,147
|
|
|
2022
|
3,006
|
|
|
2023
|
2,868
|
|
|
2024-2028
|
12,316
|
|
|
Notional Amount
|
|
Fair Value
|
|
Level in Fair Value Hierarchy
|
|
Maturity Date
|
||||
Interest rate swaps
|
$
|
450,000
|
|
|
$
|
(6,875
|
)
|
|
Level 2
|
|
May 2022 & May 2025
|
Foreign currency contracts
|
$
|
25,592
|
|
|
$
|
20
|
|
|
Level 2
|
|
January 2019 - December 2019
|
|
|
||
Interest rate swaps
|
$
|
(6,875
|
)
|
Foreign currency contracts
|
$
|
20
|
|
|
Notional Amount
|
|
Fair Value
|
|
Level in Fair Value Hierarchy
|
|
Maturity Date
|
||||
Foreign currency contracts
|
$
|
32,683
|
|
|
$
|
(198
|
)
|
|
Level 2
|
|
January 2019 - April 2019
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Income (loss) before income taxes:
|
|
|
|
|
|
||||||
U.S.
|
$
|
(419,964
|
)
|
|
$
|
49,903
|
|
|
$
|
150,942
|
|
Foreign
|
(49,231
|
)
|
|
7,575
|
|
|
21,600
|
|
|||
Income (loss) before income taxes
|
$
|
(469,195
|
)
|
|
$
|
57,478
|
|
|
$
|
172,542
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Current tax provision (benefit):
|
|
|
|
|
|
||||||||||||
Federal
|
|
$
|
(7,991
|
)
|
|
|
|
$
|
27,043
|
|
|
|
|
$
|
46,846
|
|
|
State
|
1,901
|
|
|
|
5,455
|
|
|
|
8,512
|
|
|
||||||
Foreign
|
8,925
|
|
|
|
2,175
|
|
|
|
4,179
|
|
|
||||||
Total current tax provision
|
2,835
|
|
|
|
34,673
|
|
|
|
59,537
|
|
|
||||||
Deferred tax provision (benefit):
|
|
|
|
|
|
||||||||||||
Federal
|
(23,956
|
)
|
|
|
(43,838
|
)
|
|
|
5,303
|
|
|
||||||
State
|
(7,640
|
)
|
|
|
(1,068
|
)
|
|
|
885
|
|
|
||||||
Foreign
|
(3,422
|
)
|
|
|
(5,082
|
)
|
|
|
(1,970
|
)
|
|
||||||
Total deferred tax (benefit) provision
|
(35,018
|
)
|
|
|
(49,988
|
)
|
|
|
4,218
|
|
|
||||||
Total income tax (benefit) provision
|
|
$
|
(32,183
|
)
|
|
|
|
$
|
(15,315
|
)
|
|
|
|
$
|
63,755
|
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
|||
Federal statutory rate
|
21.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Increases (decreases) in the rate resulting from:
|
|
|
|
|
|
|||
State income taxes, net of federal income tax impact
|
1.4
|
%
|
|
4.3
|
%
|
|
3.7
|
%
|
Foreign income taxes
|
(0.1
|
)%
|
|
(8.2
|
)%
|
|
(4.3
|
)%
|
Valuation allowance
|
(0.5
|
)%
|
|
(1.9
|
)%
|
|
0.5
|
%
|
Tax Reform and other prior period adjustments
|
0.4
|
%
|
|
(60.2
|
)%
|
|
—
|
%
|
Goodwill and intangible asset impairment charges
|
(14.0
|
)%
|
|
—
|
%
|
|
—
|
%
|
Other
|
(1.3
|
)%
|
|
4.4
|
%
|
|
2.1
|
%
|
Effective income tax rate
|
6.9
|
%
|
|
(26.6
|
)%
|
|
37.0
|
%
|
December 31,
|
2018
|
|
2017
|
||||||||
Deferred tax assets:
|
|
|
|
||||||||
Employee benefit plans
|
|
$
|
25,240
|
|
|
|
|
$
|
23,181
|
|
|
Accrued liabilities not currently deductible
|
25,924
|
|
|
|
20,477
|
|
|
||||
Finance charges
|
2,661
|
|
|
|
2,007
|
|
|
||||
Capital leases
|
3,320
|
|
|
|
3,732
|
|
|
||||
Allowance for losses on accounts receivable
|
3,988
|
|
|
|
4,043
|
|
|
||||
Net operating loss carryforwards
|
25,422
|
|
|
|
16,536
|
|
|
||||
Goodwill
|
1,048
|
|
|
|
—
|
|
|
||||
Interest limitation
|
4,473
|
|
|
|
—
|
|
|
||||
Other
|
10,325
|
|
|
|
4,311
|
|
|
||||
Total deferred tax assets
|
102,401
|
|
|
|
74,287
|
|
|
||||
Less: valuation allowances
|
(14,346
|
)
|
|
|
(12,726
|
)
|
|
||||
Net deferred tax assets
|
88,055
|
|
|
|
61,561
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||||||
Merchandise inventories
|
44,015
|
|
|
|
43,683
|
|
|
||||
Goodwill
|
—
|
|
|
|
26,194
|
|
|
||||
Property and equipment
|
34,926
|
|
|
|
10,669
|
|
|
||||
Computer software
|
10,177
|
|
|
|
9,473
|
|
|
||||
Insurance
|
767
|
|
|
|
243
|
|
|
||||
Intangible assets
|
30,279
|
|
|
|
38,726
|
|
|
||||
Withholding tax liabilities
|
7,963
|
|
|
|
—
|
|
|
||||
Other
|
662
|
|
|
|
212
|
|
|
||||
Total deferred tax liabilities
|
128,789
|
|
|
|
129,200
|
|
|
||||
Net deferred tax liability
|
|
$
|
(40,734
|
)
|
|
|
|
$
|
(67,639
|
)
|
|
|
2018
|
|
2017
|
|||||||
Unrecognized tax benefits at January 1,
|
|
$
|
13,585
|
|
|
|
|
$
|
10,725
|
|
Increases for positions taken during current period
|
1,035
|
|
|
|
1,644
|
|
||||
Increases for positions taken during prior periods
|
29
|
|
|
|
1,928
|
|
||||
Decreases for positions taken during prior periods
|
(142
|
)
|
|
|
(712
|
)
|
||||
Lapse of statute of limitations
|
(4,939
|
)
|
|
|
—
|
|
||||
Settlements with taxing authorities
|
—
|
|
|
|
—
|
|
||||
Unrecognized tax benefits at December 31,
|
|
$
|
9,568
|
|
|
|
|
$
|
13,585
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
72,793
|
|
|
$
|
108,787
|
|
Less: income allocated to unvested restricted shares
|
—
|
|
|
(1,060
|
)
|
|
(1,147
|
)
|
|||
Net income (loss)—basic
|
(437,012
|
)
|
|
71,733
|
|
|
107,640
|
|
|||
Add: undistributed income attributable to unvested restricted shares—basic
|
—
|
|
|
58
|
|
|
297
|
|
|||
Less: undistributed income attributable to unvested restricted shares—diluted
|
—
|
|
|
(58
|
)
|
|
(297
|
)
|
|||
Net income (loss)—diluted
|
$
|
(437,012
|
)
|
|
$
|
71,733
|
|
|
$
|
107,640
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average shares outstanding—basic and diluted
|
60,014
|
|
|
60,001
|
|
|
61,093
|
|
|||
Net income (loss):
|
|
|
|
|
|
||||||
Basic and diluted
|
$
|
(7.28
|
)
|
|
$
|
1.20
|
|
|
$
|
1.76
|
|
|
Retirement Plans
|
|
Currency Translation Adjustments
|
|
Derivatives and Other
|
|
Total
|
||||||||
Accumulated other comprehensive income (loss), December 31, 2017
|
$
|
(12,066
|
)
|
|
$
|
(13,185
|
)
|
|
$
|
167
|
|
|
$
|
(25,084
|
)
|
Other comprehensive income (loss) before reclassifications
|
3,207
|
|
|
(19,366
|
)
|
|
(7,867
|
)
|
|
(24,026
|
)
|
||||
Income tax
|
(834
|
)
|
|
—
|
|
|
2,099
|
|
|
1,265
|
|
||||
Other comprehensive income (loss) before reclassifications, net of tax
|
2,373
|
|
|
(19,366
|
)
|
|
(5,768
|
)
|
|
(22,761
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
2,090
|
|
|
—
|
|
|
954
|
|
|
3,044
|
|
||||
Income tax
|
(543
|
)
|
|
—
|
|
|
(268
|
)
|
|
(811
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax
|
1,547
|
|
|
—
|
|
|
686
|
|
|
2,233
|
|
||||
Other comprehensive income (loss)
|
3,920
|
|
|
(19,366
|
)
|
|
(5,082
|
)
|
|
(20,528
|
)
|
||||
Accumulated other comprehensive income (loss), December 31, 2018
|
$
|
(8,146
|
)
|
|
$
|
(32,551
|
)
|
|
$
|
(4,915
|
)
|
|
$
|
(45,612
|
)
|
|
Retirement Plans
|
|
Currency Translation Adjustments
|
|
Derivatives and Other
|
|
Total
|
||||||||
Accumulated other comprehensive income (loss), December 31, 2016
|
$
|
(11,209
|
)
|
|
$
|
(56,245
|
)
|
|
$
|
(29
|
)
|
|
$
|
(67,483
|
)
|
Other comprehensive income (loss) before reclassifications
|
(2,796
|
)
|
|
43,060
|
|
|
196
|
|
|
40,460
|
|
||||
Income tax
|
727
|
|
|
—
|
|
|
—
|
|
|
727
|
|
||||
Other comprehensive income (loss) before reclassifications, net of tax
|
(2,069
|
)
|
|
43,060
|
|
|
196
|
|
|
41,187
|
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
1,933
|
|
|
—
|
|
|
—
|
|
|
1,933
|
|
||||
Income tax
|
(721
|
)
|
|
—
|
|
|
—
|
|
|
(721
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax
|
1,212
|
|
|
—
|
|
|
—
|
|
|
1,212
|
|
||||
Other comprehensive income (loss)
|
(857
|
)
|
|
43,060
|
|
|
196
|
|
|
42,399
|
|
||||
Accumulated other comprehensive income (loss), December 31, 2017
|
$
|
(12,066
|
)
|
|
$
|
(13,185
|
)
|
|
$
|
167
|
|
|
$
|
(25,084
|
)
|
|
Retirement Plans
|
|
Currency Translation Adjustments
|
|
Derivatives and Other
|
|
Total
|
||||||||
Accumulated other comprehensive income (loss), December 31, 2015
|
$
|
(10,482
|
)
|
|
$
|
(41,228
|
)
|
|
$
|
(115
|
)
|
|
$
|
(51,825
|
)
|
Other comprehensive income (loss) before reclassifications
|
(2,716
|
)
|
|
(15,017
|
)
|
|
86
|
|
|
(17,647
|
)
|
||||
Income tax
|
869
|
|
|
—
|
|
|
—
|
|
|
869
|
|
||||
Other comprehensive income (loss) before reclassifications, net of tax
|
(1,847
|
)
|
|
(15,017
|
)
|
|
86
|
|
|
(16,778
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
1,646
|
|
|
—
|
|
|
—
|
|
|
1,646
|
|
||||
Income tax
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
(526
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax
|
1,120
|
|
|
—
|
|
|
—
|
|
|
1,120
|
|
||||
Other comprehensive income (loss)
|
(727
|
)
|
|
(15,017
|
)
|
|
86
|
|
|
(15,658
|
)
|
||||
Accumulated other comprehensive income (loss), December 31, 2016
|
$
|
(11,209
|
)
|
|
$
|
(56,245
|
)
|
|
$
|
(29
|
)
|
|
$
|
(67,483
|
)
|
|
Total
|
||
2019
|
$
|
64,082
|
|
2020
|
53,138
|
|
|
2021
|
42,480
|
|
|
2022
|
26,445
|
|
|
2023
|
19,895
|
|
|
Thereafter
|
45,708
|
|
|
Total minimum payments
|
$
|
251,748
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Net revenue:
|
|
|
|
|
|
||||||
Segment net revenue
|
|
|
|
|
|
||||||
Global Solutions
|
$
|
9,188,066
|
|
|
$
|
9,186,018
|
|
|
$
|
9,535,248
|
|
Global Products
|
1,111,322
|
|
|
504,026
|
|
|
539,580
|
|
|||
Total segment net revenue
|
10,299,388
|
|
|
9,690,044
|
|
|
10,074,828
|
|
|||
Inter-segment net revenue
|
|
|
|
|
|
|
|||||
Global Products
|
(460,680
|
)
|
|
(371,769
|
)
|
|
(351,397
|
)
|
|||
Total inter-segment net revenue
|
(460,680
|
)
|
|
(371,769
|
)
|
|
(351,397
|
)
|
|||
Consolidated net revenue
|
$
|
9,838,708
|
|
|
$
|
9,318,275
|
|
|
$
|
9,723,431
|
|
|
|
|
|
|
|
||||||
Operating income (loss):
|
|
|
|
|
|
||||||
Global Solutions
|
$
|
104,099
|
|
|
$
|
141,091
|
|
|
$
|
175,508
|
|
Global Products
|
75,688
|
|
|
38,458
|
|
|
59,384
|
|
|||
Inter-segment eliminations
|
(3,014
|
)
|
|
243
|
|
|
(616
|
)
|
|||
Goodwill and intangible asset impairment charges
|
(439,613
|
)
|
|
—
|
|
|
—
|
|
|||
Intangible amortization
|
(36,514
|
)
|
|
(16,402
|
)
|
|
(10,002
|
)
|
|||
Acquisition-related and exit and realignment charges
|
(62,200
|
)
|
|
(60,707
|
)
|
|
(24,675
|
)
|
|||
Other
(1)
|
(30,620
|
)
|
|
(13,432
|
)
|
|
—
|
|
|||
Consolidated operating income (loss)
|
$
|
(392,174
|
)
|
|
$
|
89,251
|
|
|
$
|
199,599
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization:
|
|
|
|
|
|
||||||
Global Solutions
|
$
|
63,710
|
|
|
$
|
50,809
|
|
|
$
|
46,586
|
|
Global Products
|
38,217
|
|
|
8,634
|
|
|
8,807
|
|
|||
Consolidated depreciation and amortization
|
$
|
101,927
|
|
|
$
|
59,443
|
|
|
$
|
55,393
|
|
|
|
|
|
|
|
||||||
Capital expenditures:
|
|
|
|
|
|
||||||
Global Solutions
|
$
|
49,524
|
|
|
$
|
46,932
|
|
|
$
|
27,207
|
|
Global Products
|
16,161
|
|
|
3,805
|
|
|
2,914
|
|
|||
Consolidated capital expenditures
|
$
|
65,685
|
|
|
$
|
50,737
|
|
|
$
|
30,121
|
|
December 31,
|
2018
|
|
2017
|
||||
Total assets:
|
|
|
|
||||
Global Solutions
|
$
|
2,618,759
|
|
|
$
|
2,870,998
|
|
Global Products
|
1,051,662
|
|
|
400,773
|
|
||
Segment assets
|
3,670,421
|
|
|
3,271,771
|
|
||
Cash and cash equivalents
|
103,367
|
|
|
104,522
|
|
||
Consolidated total assets
|
$
|
3,773,788
|
|
|
$
|
3,376,293
|
|
Year ended December 31,
|
2018
|
|
2017
|
|
2016
|
||||||
Net revenue:
|
|
|
|
|
|
||||||
United States
|
$
|
9,261,149
|
|
|
$
|
8,899,208
|
|
|
$
|
9,338,543
|
|
International
|
577,559
|
|
|
419,067
|
|
|
384,888
|
|
|||
Consolidated net revenue
|
$
|
9,838,708
|
|
|
$
|
9,318,275
|
|
|
$
|
9,723,431
|
|
December 31,
|
2018
|
|
2017
|
||||
Long-lived assets:
|
|
|
|
||||
United States
|
$
|
582,667
|
|
|
$
|
327,442
|
|
International
|
193,322
|
|
|
125,395
|
|
||
Consolidated long-lived assets
|
$
|
775,989
|
|
|
$
|
452,837
|
|
Year ended December 31, 2018
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
8,871,152
|
|
|
$
|
1,660,763
|
|
|
$
|
(693,207
|
)
|
|
$
|
9,838,708
|
|
Cost of goods sold
|
—
|
|
|
8,048,457
|
|
|
1,113,315
|
|
|
(690,027
|
)
|
|
8,471,745
|
|
|||||
Gross margin
|
—
|
|
|
822,695
|
|
|
547,448
|
|
|
(3,180
|
)
|
|
1,366,963
|
|
|||||
Distribution, selling and administrative expenses
|
(477
|
)
|
|
733,125
|
|
|
529,100
|
|
|
—
|
|
|
1,261,748
|
|
|||||
Acquisition-related and exit and realignment charges
|
—
|
|
|
44,340
|
|
|
17,860
|
|
|
—
|
|
|
62,200
|
|
|||||
Goodwill and intangible asset impairment charges
|
—
|
|
|
180,006
|
|
|
259,607
|
|
|
—
|
|
|
439,613
|
|
|||||
Other operating (income) expense, net
|
—
|
|
|
3,002
|
|
|
(7,426
|
)
|
|
—
|
|
|
(4,424
|
)
|
|||||
Operating income (loss)
|
477
|
|
|
(137,778
|
)
|
|
(251,693
|
)
|
|
(3,180
|
)
|
|
(392,174
|
)
|
|||||
Interest expense, net
|
21,896
|
|
|
43,021
|
|
|
12,104
|
|
|
—
|
|
|
77,021
|
|
|||||
Income (loss) before income taxes
|
(21,419
|
)
|
|
(180,799
|
)
|
|
(263,797
|
)
|
|
(3,180
|
)
|
|
(469,195
|
)
|
|||||
Income tax (benefit) provision
|
(5,569
|
)
|
|
(32,037
|
)
|
|
5,423
|
|
|
—
|
|
|
(32,183
|
)
|
|||||
Equity in earnings (loss) of subsidiaries
|
(421,162
|
)
|
|
(79,629
|
)
|
|
—
|
|
|
500,791
|
|
|
—
|
|
|||||
Net income (loss)
|
(437,012
|
)
|
|
(228,391
|
)
|
|
(269,220
|
)
|
|
497,611
|
|
|
(437,012
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
(20,528
|
)
|
|
(14,940
|
)
|
|
(18,873
|
)
|
|
33,813
|
|
|
(20,528
|
)
|
|||||
Comprehensive income (loss)
|
$
|
(457,540
|
)
|
|
$
|
(243,331
|
)
|
|
$
|
(288,093
|
)
|
|
$
|
531,424
|
|
|
$
|
(457,540
|
)
|
Year ended December 31, 2017
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
8,582,868
|
|
|
$
|
915,350
|
|
|
$
|
(179,943
|
)
|
|
$
|
9,318,275
|
|
Cost of goods sold
|
—
|
|
|
7,802,499
|
|
|
524,035
|
|
|
(180,125
|
)
|
|
8,146,409
|
|
|||||
Gross margin
|
—
|
|
|
780,369
|
|
|
391,315
|
|
|
182
|
|
|
1,171,866
|
|
|||||
Distribution, selling and administrative expenses
|
(395
|
)
|
|
643,073
|
|
|
374,300
|
|
|
—
|
|
|
1,016,978
|
|
|||||
Acquisition-related and exit and realignment charges
|
—
|
|
|
52,986
|
|
|
7,721
|
|
|
—
|
|
|
60,707
|
|
|||||
Other operating (income) expense, net
|
—
|
|
|
3,887
|
|
|
1,043
|
|
|
—
|
|
|
4,930
|
|
|||||
Operating income (loss)
|
395
|
|
|
80,423
|
|
|
8,251
|
|
|
182
|
|
|
89,251
|
|
|||||
Interest expense, net
|
27,482
|
|
|
546
|
|
|
3,745
|
|
|
—
|
|
|
31,773
|
|
|||||
Income (loss) before income taxes
|
(27,087
|
)
|
|
79,877
|
|
|
4,506
|
|
|
182
|
|
|
57,478
|
|
|||||
Income tax (benefit) provision
|
—
|
|
|
(12,409
|
)
|
|
(2,906
|
)
|
|
—
|
|
|
(15,315
|
)
|
|||||
Equity in earnings (loss) of subsidiaries
|
99,880
|
|
|
(3,527
|
)
|
|
—
|
|
|
(96,353
|
)
|
|
—
|
|
|||||
Net income (loss)
|
72,793
|
|
|
88,759
|
|
|
7,412
|
|
|
(96,171
|
)
|
|
72,793
|
|
|||||
Other comprehensive income (loss), net of tax
|
42,399
|
|
|
42,209
|
|
|
42,612
|
|
|
(84,821
|
)
|
|
42,399
|
|
|||||
Comprehensive income (loss)
|
$
|
115,192
|
|
|
$
|
130,968
|
|
|
$
|
50,024
|
|
|
$
|
(180,992
|
)
|
|
$
|
115,192
|
|
Year ended December 31, 2016
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue
|
$
|
—
|
|
|
$
|
9,190,660
|
|
|
$
|
697,559
|
|
|
$
|
(164,788
|
)
|
|
$
|
9,723,431
|
|
Cost of goods sold
|
—
|
|
|
8,330,960
|
|
|
370,594
|
|
|
(165,433
|
)
|
|
8,536,121
|
|
|||||
Gross margin
|
—
|
|
|
859,700
|
|
|
326,965
|
|
|
645
|
|
|
1,187,310
|
|
|||||
Distribution, selling and administrative expenses
|
1,127
|
|
|
670,800
|
|
|
298,497
|
|
|
—
|
|
|
970,424
|
|
|||||
Acquisition-related and exit and realignment charges
|
—
|
|
|
15,611
|
|
|
9,064
|
|
|
—
|
|
|
24,675
|
|
|||||
Other operating (income) expense, net
|
—
|
|
|
(5,066
|
)
|
|
(2,322
|
)
|
|
—
|
|
|
(7,388
|
)
|
|||||
Operating income (loss)
|
(1,127
|
)
|
|
178,355
|
|
|
21,726
|
|
|
645
|
|
|
199,599
|
|
|||||
Interest expense (income), net
|
28,901
|
|
|
(4,744
|
)
|
|
2,900
|
|
|
—
|
|
|
27,057
|
|
|||||
Income (loss) before income taxes
|
(30,028
|
)
|
|
183,099
|
|
|
18,826
|
|
|
645
|
|
|
172,542
|
|
|||||
Income tax (benefit) provision
|
—
|
|
|
61,545
|
|
|
2,210
|
|
|
—
|
|
|
63,755
|
|
|||||
Equity in earnings (loss) of subsidiaries
|
138,815
|
|
|
(389
|
)
|
|
—
|
|
|
(138,426
|
)
|
|
—
|
|
|||||
Net income (loss)
|
108,787
|
|
|
121,165
|
|
|
16,616
|
|
|
(137,781
|
)
|
|
108,787
|
|
|||||
Other comprehensive income (loss), net of tax
|
(15,658
|
)
|
|
(15,480
|
)
|
|
(15,017
|
)
|
|
30,497
|
|
|
(15,658
|
)
|
|||||
Comprehensive income (loss)
|
$
|
93,129
|
|
|
$
|
105,685
|
|
|
$
|
1,599
|
|
|
$
|
(107,284
|
)
|
|
$
|
93,129
|
|
December 31, 2018
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Balance Sheets
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
37,254
|
|
|
$
|
657
|
|
|
$
|
65,456
|
|
|
$
|
—
|
|
|
$
|
103,367
|
|
Accounts receivable, net
|
—
|
|
|
745,085
|
|
|
542,228
|
|
|
(463,895
|
)
|
|
823,418
|
|
|||||
Merchandise inventories
|
—
|
|
|
1,044,395
|
|
|
250,466
|
|
|
(4,758
|
)
|
|
1,290,103
|
|
|||||
Other current assets
|
117
|
|
|
115,539
|
|
|
207,302
|
|
|
(1,268
|
)
|
|
321,690
|
|
|||||
Total current assets
|
37,371
|
|
|
1,905,676
|
|
|
1,065,452
|
|
|
(469,921
|
)
|
|
2,538,578
|
|
|||||
Property and equipment, net
|
—
|
|
|
199,115
|
|
|
187,608
|
|
|
—
|
|
|
386,723
|
|
|||||
Goodwill, net
|
—
|
|
|
130,364
|
|
|
283,758
|
|
|
—
|
|
|
414,122
|
|
|||||
Intangible assets, net
|
—
|
|
|
186,771
|
|
|
134,993
|
|
|
—
|
|
|
321,764
|
|
|||||
Due from O&M and subsidiaries
|
—
|
|
|
486,669
|
|
|
—
|
|
|
(486,669
|
)
|
|
—
|
|
|||||
Advances to and investments in consolidated subsidiaries
|
1,697,191
|
|
|
429,926
|
|
|
—
|
|
|
(2,127,117
|
)
|
|
—
|
|
|||||
Other assets, net
|
1,788
|
|
|
53,545
|
|
|
57,268
|
|
|
—
|
|
|
112,601
|
|
|||||
Total assets
|
$
|
1,736,350
|
|
|
$
|
3,392,066
|
|
|
$
|
1,729,079
|
|
|
$
|
(3,083,707
|
)
|
|
$
|
3,773,788
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
1,147,081
|
|
|
$
|
437,866
|
|
|
$
|
(475,358
|
)
|
|
$
|
1,109,589
|
|
Accrued payroll and related liabilities
|
—
|
|
|
19,954
|
|
|
28,249
|
|
|
—
|
|
|
48,203
|
|
|||||
Other current liabilities
|
9,641
|
|
|
137,401
|
|
|
167,177
|
|
|
|
|
|
314,219
|
|
|||||
Total current liabilities
|
9,641
|
|
|
1,304,436
|
|
|
633,292
|
|
|
(475,358
|
)
|
|
1,472,011
|
|
|||||
Long-term debt, excluding current portion
|
595,856
|
|
|
1,040,664
|
|
|
14,062
|
|
|
—
|
|
|
1,650,582
|
|
|||||
Due to O&M and subsidiaries
|
605,558
|
|
|
—
|
|
|
470,318
|
|
|
(1,075,876
|
)
|
|
—
|
|
|||||
Intercompany debt
|
—
|
|
|
816,785
|
|
|
752,105
|
|
|
(1,568,890
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
—
|
|
|
50,852
|
|
|
—
|
|
|
50,852
|
|
|||||
Other liabilities
|
6,876
|
|
|
49,442
|
|
|
25,606
|
|
|
—
|
|
|
81,924
|
|
|||||
Total liabilities
|
1,217,931
|
|
|
3,211,327
|
|
|
1,946,235
|
|
|
(3,120,124
|
)
|
|
3,255,369
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
124,588
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124,588
|
|
|||||
Paid-in capital
|
238,773
|
|
|
174,614
|
|
|
123,865
|
|
|
(298,479
|
)
|
|
238,773
|
|
|||||
Retained earnings (deficit)
|
200,670
|
|
|
37,777
|
|
|
(319,636
|
)
|
|
281,859
|
|
|
200,670
|
|
|||||
Accumulated other comprehensive income (loss)
|
(45,612
|
)
|
|
(31,652
|
)
|
|
(21,385
|
)
|
|
53,037
|
|
|
(45,612
|
)
|
|||||
Total equity
|
518,419
|
|
|
180,739
|
|
|
(217,156
|
)
|
|
36,417
|
|
|
518,419
|
|
|||||
Total liabilities and equity
|
$
|
1,736,350
|
|
|
$
|
3,392,066
|
|
|
$
|
1,729,079
|
|
|
$
|
(3,083,707
|
)
|
|
$
|
3,773,788
|
|
December 31, 2017
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Balance Sheets
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
13,700
|
|
|
$
|
865
|
|
|
$
|
89,957
|
|
|
$
|
—
|
|
|
$
|
104,522
|
|
Accounts receivable, net
|
—
|
|
|
559,269
|
|
|
206,410
|
|
|
(6,743
|
)
|
|
758,936
|
|
|||||
Merchandise inventories
|
—
|
|
|
902,190
|
|
|
89,580
|
|
|
(1,577
|
)
|
|
990,193
|
|
|||||
Other current assets
|
100
|
|
|
123,067
|
|
|
205,087
|
|
|
—
|
|
|
328,254
|
|
|||||
Total current assets
|
13,800
|
|
|
1,585,391
|
|
|
591,034
|
|
|
(8,320
|
)
|
|
2,181,905
|
|
|||||
Property and equipment, net
|
—
|
|
|
107,010
|
|
|
99,480
|
|
|
—
|
|
|
206,490
|
|
|||||
Goodwill, net
|
—
|
|
|
180,006
|
|
|
533,805
|
|
|
—
|
|
|
713,811
|
|
|||||
Intangible assets, net
|
—
|
|
|
9,582
|
|
|
174,886
|
|
|
—
|
|
|
184,468
|
|
|||||
Due from O&M and subsidiaries
|
—
|
|
|
439,654
|
|
|
—
|
|
|
(439,654
|
)
|
|
—
|
|
|||||
Advances to and investments in consolidated subsidiaries
|
2,114,853
|
|
|
558,429
|
|
|
—
|
|
|
(2,673,282
|
)
|
|
—
|
|
|||||
Other assets, net
|
—
|
|
|
57,724
|
|
|
31,895
|
|
|
—
|
|
|
89,619
|
|
|||||
Total assets
|
$
|
2,128,653
|
|
|
$
|
2,937,796
|
|
|
$
|
1,431,100
|
|
|
$
|
(3,121,256
|
)
|
|
$
|
3,376,293
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
824,307
|
|
|
$
|
130,028
|
|
|
$
|
(6,763
|
)
|
|
$
|
947,572
|
|
Accrued payroll and related liabilities
|
—
|
|
|
15,504
|
|
|
14,912
|
|
|
—
|
|
|
30,416
|
|
|||||
Other current liabilities
|
5,822
|
|
|
140,048
|
|
|
185,875
|
|
|
—
|
|
|
331,745
|
|
|||||
Total current liabilities
|
5,822
|
|
|
979,859
|
|
|
330,815
|
|
|
(6,763
|
)
|
|
1,309,733
|
|
|||||
Long-term debt, excluding current portion
|
545,352
|
|
|
340,672
|
|
|
14,720
|
|
|
—
|
|
|
900,744
|
|
|||||
Due to O&M and subsidiaries
|
562,000
|
|
|
—
|
|
|
506,703
|
|
|
(1,068,703
|
)
|
|
—
|
|
|||||
Intercompany debt
|
—
|
|
|
138,890
|
|
|
—
|
|
|
(138,890
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
25,493
|
|
|
48,754
|
|
|
—
|
|
|
74,247
|
|
|||||
Other liabilities
|
—
|
|
|
66,136
|
|
|
9,954
|
|
|
—
|
|
|
76,090
|
|
|||||
Total liabilities
|
1,113,174
|
|
|
1,551,050
|
|
|
910,946
|
|
|
(1,214,356
|
)
|
|
2,360,814
|
|
|||||
Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock
|
122,952
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122,952
|
|
|||||
Paid-in capital
|
226,937
|
|
|
174,614
|
|
|
583,869
|
|
|
(758,483
|
)
|
|
226,937
|
|
|||||
Retained earnings (deficit)
|
690,674
|
|
|
1,236,165
|
|
|
(50,416
|
)
|
|
(1,185,749
|
)
|
|
690,674
|
|
|||||
Accumulated other comprehensive income (loss)
|
(25,084
|
)
|
|
(24,033
|
)
|
|
(13,299
|
)
|
|
37,332
|
|
|
(25,084
|
)
|
|||||
Total equity
|
1,015,479
|
|
|
1,386,746
|
|
|
520,154
|
|
|
(1,906,900
|
)
|
|
1,015,479
|
|
|||||
Total liabilities and equity
|
$
|
2,128,653
|
|
|
$
|
2,937,796
|
|
|
$
|
1,431,100
|
|
|
$
|
(3,121,256
|
)
|
|
$
|
3,376,293
|
|
Year ended December 31, 2018
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
$
|
(437,012
|
)
|
|
$
|
(228,391
|
)
|
|
$
|
(269,220
|
)
|
|
$
|
497,611
|
|
|
$
|
(437,012
|
)
|
Adjustments to reconcile net income (loss) to cash (used for) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
421,162
|
|
|
79,629
|
|
|
—
|
|
|
(500,791
|
)
|
|
—
|
|
|||||
Intercompany dividend
|
|
|
|
30,000
|
|
|
|
|
|
(30,000
|
)
|
|
—
|
|
|||||
Depreciation and amortization
|
—
|
|
|
28,069
|
|
|
73,858
|
|
|
—
|
|
|
101,927
|
|
|||||
Share-based compensation expense
|
—
|
|
|
16,376
|
|
|
—
|
|
|
—
|
|
|
16,376
|
|
|||||
Goodwill and intangible asset impairment charges
|
|
|
180,006
|
|
|
259,607
|
|
|
|
|
439,613
|
|
|||||||
Provision for losses on accounts receivable
|
—
|
|
|
140
|
|
|
9,290
|
|
|
—
|
|
|
9,430
|
|
|||||
Deferred income tax (benefit) expense
|
—
|
|
|
(31,435
|
)
|
|
(3,583
|
)
|
|
—
|
|
|
(35,018
|
)
|
|||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts receivable
|
—
|
|
|
(92,751
|
)
|
|
(353,294
|
)
|
|
457,151
|
|
|
11,106
|
|
|||||
Merchandise inventories
|
—
|
|
|
93,612
|
|
|
(162,241
|
)
|
|
3,178
|
|
|
(65,451
|
)
|
|||||
Accounts payable
|
—
|
|
|
249,004
|
|
|
311,765
|
|
|
(468,590
|
)
|
|
92,179
|
|
|||||
Net change in other assets and liabilities
|
2,355
|
|
|
(29,690
|
)
|
|
(7,710
|
)
|
|
11,441
|
|
|
(23,604
|
)
|
|||||
Other, net
|
854
|
|
|
5,740
|
|
|
(551
|
)
|
|
—
|
|
|
6,043
|
|
|||||
Cash provided by (used for) operating activities
|
(12,641
|
)
|
|
300,309
|
|
|
(142,079
|
)
|
|
(30,000
|
)
|
|
115,589
|
|
|||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition, net of cash acquired
|
—
|
|
|
(751,834
|
)
|
|
—
|
|
|
—
|
|
|
(751,834
|
)
|
|||||
Additions to computer software and intangible assets
|
—
|
|
|
(15,076
|
)
|
|
(5,736
|
)
|
|
—
|
|
|
(20,812
|
)
|
|||||
Additions to property and equipment
|
—
|
|
|
(33,245
|
)
|
|
(11,628
|
)
|
|
—
|
|
|
(44,873
|
)
|
|||||
Proceeds from sale of property and equipment
|
—
|
|
|
1,429
|
|
|
261
|
|
|
—
|
|
|
1,690
|
|
|||||
Cash used for investing activities
|
—
|
|
|
(798,726
|
)
|
|
(17,103
|
)
|
|
—
|
|
|
(815,829
|
)
|
|||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in intercompany advances
|
87,295
|
|
|
(256,888
|
)
|
|
169,593
|
|
|
—
|
|
|
—
|
|
|||||
Intercompany dividend
|
—
|
|
|
—
|
|
|
(30,000
|
)
|
|
30,000
|
|
|
—
|
|
|||||
Proceeds from issuance of debt
|
—
|
|
|
695,750
|
|
|
—
|
|
|
—
|
|
|
695,750
|
|
|||||
Proceeds from revolving credit facility
|
—
|
|
|
105,500
|
|
|
—
|
|
|
—
|
|
|
105,500
|
|
|||||
Repayment of debt
|
—
|
|
|
(16,250
|
)
|
|
—
|
|
|
—
|
|
|
(16,250
|
)
|
|||||
Financing costs paid
|
—
|
|
|
(28,512
|
)
|
|
—
|
|
|
—
|
|
|
(28,512
|
)
|
|||||
Cash dividends paid
|
(48,200
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,200
|
)
|
|||||
Other, net
|
(2,900
|
)
|
|
(1,391
|
)
|
|
(2,926
|
)
|
|
—
|
|
|
(7,217
|
)
|
|||||
Cash provided by financing activities
|
36,195
|
|
|
498,209
|
|
|
136,667
|
|
|
30,000
|
|
|
701,071
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(1,986
|
)
|
|
—
|
|
|
(1,986
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
23,554
|
|
|
(208
|
)
|
|
(24,501
|
)
|
|
—
|
|
|
(1,155
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
13,700
|
|
|
865
|
|
|
89,957
|
|
|
—
|
|
|
104,522
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
37,254
|
|
|
$
|
657
|
|
|
$
|
65,456
|
|
|
$
|
—
|
|
|
$
|
103,367
|
|
Year ended December 31, 2017
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
$
|
72,793
|
|
|
$
|
88,759
|
|
|
$
|
7,412
|
|
|
$
|
(96,171
|
)
|
|
$
|
72,793
|
|
Adjustments to reconcile net income to cash (used for) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity in earnings of subsidiaries
|
(99,880
|
)
|
|
3,527
|
|
|
—
|
|
|
96,353
|
|
|
—
|
|
|||||
Intercompany dividend
|
—
|
|
|
25,000
|
|
|
—
|
|
|
(25,000
|
)
|
|
—
|
|
|||||
Depreciation and amortization
|
—
|
|
|
34,548
|
|
|
24,895
|
|
|
—
|
|
|
59,443
|
|
|||||
Share-based compensation expense
|
—
|
|
|
11,911
|
|
|
—
|
|
|
—
|
|
|
11,911
|
|
|||||
Provision for losses on accounts receivable
|
—
|
|
|
2,450
|
|
|
224
|
|
|
—
|
|
|
2,674
|
|
|||||
Deferred income tax (benefit) expense
|
—
|
|
|
(44,879
|
)
|
|
(5,109
|
)
|
|
—
|
|
|
(49,988
|
)
|
|||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accounts receivable
|
—
|
|
|
(35,549
|
)
|
|
(61,103
|
)
|
|
(3,358
|
)
|
|
(100,010
|
)
|
|||||
Merchandise inventories
|
—
|
|
|
(45,624
|
)
|
|
(11,224
|
)
|
|
(184
|
)
|
|
(57,032
|
)
|
|||||
Accounts payable
|
—
|
|
|
141,118
|
|
|
1,775
|
|
|
1,054
|
|
|
143,947
|
|
|||||
Net change in other assets and liabilities
|
(1,277
|
)
|
|
(26,456
|
)
|
|
(7,836
|
)
|
|
2,306
|
|
|
(33,263
|
)
|
|||||
Other, net
|
(1
|
)
|
|
6,605
|
|
|
(305
|
)
|
|
—
|
|
|
6,299
|
|
|||||
Cash provided by (used for) operating activities
|
(28,365
|
)
|
|
161,410
|
|
|
(51,271
|
)
|
|
(25,000
|
)
|
|
56,774
|
|
|||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisition, net of cash acquired
|
—
|
|
|
(366,569
|
)
|
|
—
|
|
|
—
|
|
|
(366,569
|
)
|
|||||
Additions to computer software and intangible assets
|
—
|
|
|
(7,587
|
)
|
|
(8,537
|
)
|
|
—
|
|
|
(16,124
|
)
|
|||||
Additions to property and equipment
|
—
|
|
|
(25,270
|
)
|
|
(9,343
|
)
|
|
—
|
|
|
(34,613
|
)
|
|||||
Proceeds from sale of property and equipment
|
—
|
|
|
198
|
|
|
465
|
|
|
—
|
|
|
663
|
|
|||||
Cash used for investing activities
|
—
|
|
|
(399,228
|
)
|
|
(17,415
|
)
|
|
—
|
|
|
(416,643
|
)
|
|||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in intercompany advances
|
75,969
|
|
|
(170,358
|
)
|
|
94,389
|
|
|
—
|
|
|
—
|
|
|||||
Intercompany dividend
|
—
|
|
|
—
|
|
|
(25,000
|
)
|
|
25,000
|
|
|
—
|
|
|||||
Proceeds from issuance of debt
|
—
|
|
|
250,000
|
|
|
—
|
|
|
—
|
|
|
250,000
|
|
|||||
Proceed from revolving credit facility
|
—
|
|
|
104,600
|
|
|
—
|
|
|
—
|
|
|
104,600
|
|
|||||
Repayment of debt
|
—
|
|
|
(3,125
|
)
|
|
—
|
|
|
—
|
|
|
(3,125
|
)
|
|||||
Financing costs paid
|
—
|
|
|
(1,798
|
)
|
|
—
|
|
|
—
|
|
|
(1,798
|
)
|
|||||
Cash dividends paid
|
(63,151
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,151
|
)
|
|||||
Repurchases of common stock
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,000
|
)
|
|||||
Other, net
|
(3,768
|
)
|
|
(1,902
|
)
|
|
(3,050
|
)
|
|
—
|
|
|
(8,720
|
)
|
|||||
Cash provided by financing activities
|
4,050
|
|
|
177,417
|
|
|
66,339
|
|
|
25,000
|
|
|
272,806
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
6,097
|
|
|
—
|
|
|
6,097
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(24,315
|
)
|
|
(60,401
|
)
|
|
3,750
|
|
|
—
|
|
|
(80,966
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
38,015
|
|
|
61,266
|
|
|
86,207
|
|
|
—
|
|
|
185,488
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
13,700
|
|
|
$
|
865
|
|
|
$
|
89,957
|
|
|
$
|
—
|
|
|
$
|
104,522
|
|
Year ended December 31, 2016
|
Owens &
Minor, Inc.
|
|
Guarantor
Subsidiaries
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
$
|
108,787
|
|
|
$
|
121,165
|
|
|
$
|
16,616
|
|
|
$
|
(137,781
|
)
|
|
$
|
108,787
|
|
Adjustments to reconcile net income to cash (used for) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity in earnings of subsidiaries
|
(138,815
|
)
|
|
389
|
|
|
—
|
|
|
138,426
|
|
|
—
|
|
|||||
Depreciation and amortization
|
—
|
|
|
29,589
|
|
|
25,804
|
|
|
—
|
|
|
55,393
|
|
|||||
Share-based compensation expense
|
—
|
|
|
12,042
|
|
|
—
|
|
|
—
|
|
|
12,042
|
|
|||||
Provision for losses on accounts receivable
|
—
|
|
|
84
|
|
|
293
|
|
|
—
|
|
|
377
|
|
|||||
Deferred income tax (benefit) expense
|
—
|
|
|
6,245
|
|
|
(2,027
|
)
|
|
—
|
|
|
4,218
|
|
|||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accounts receivable
|
—
|
|
|
(18,581
|
)
|
|
(6,358
|
)
|
|
(305
|
)
|
|
(25,244
|
)
|
|||||
Merchandise inventories
|
—
|
|
|
26,666
|
|
|
(3,449
|
)
|
|
(628
|
)
|
|
22,589
|
|
|||||
Accounts payable
|
—
|
|
|
20,280
|
|
|
22,862
|
|
|
288
|
|
|
43,430
|
|
|||||
Net change in other assets and liabilities
|
180
|
|
|
(26,397
|
)
|
|
(11,342
|
)
|
|
—
|
|
|
(37,559
|
)
|
|||||
Other, net
|
1,615
|
|
|
999
|
|
|
1,048
|
|
|
—
|
|
|
3,662
|
|
|||||
Cash provided by (used for) operating activities
|
(28,233
|
)
|
|
172,481
|
|
|
43,447
|
|
|
—
|
|
|
187,695
|
|
|||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to computer software and intangible assets
|
—
|
|
|
(4,004
|
)
|
|
(5,815
|
)
|
|
—
|
|
|
(9,819
|
)
|
|||||
Additions to property and equipment
|
—
|
|
|
(10,329
|
)
|
|
(9,973
|
)
|
|
—
|
|
|
(20,302
|
)
|
|||||
Proceeds from sale of property and equipment
|
—
|
|
|
125
|
|
|
5,250
|
|
|
—
|
|
|
5,375
|
|
|||||
Cash used for investing activities
|
—
|
|
|
(14,208
|
)
|
|
(10,538
|
)
|
|
—
|
|
|
(24,746
|
)
|
|||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in intercompany advances
|
101,424
|
|
|
(100,308
|
)
|
|
(1,116
|
)
|
|
—
|
|
|
—
|
|
|||||
Cash dividends paid
|
(63,382
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,382
|
)
|
|||||
Repurchases of common stock
|
(71,028
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(71,028
|
)
|
|||||
Other, net
|
(4,050
|
)
|
|
(2,313
|
)
|
|
(1,931
|
)
|
|
—
|
|
|
(8,294
|
)
|
|||||
Cash used for financing activities
|
(37,036
|
)
|
|
(102,621
|
)
|
|
(3,047
|
)
|
|
—
|
|
|
(142,704
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
4,223
|
|
|
—
|
|
|
4,223
|
|
|||||
Net increase (decrease) in cash and cash equivalents
|
(65,269
|
)
|
|
55,652
|
|
|
34,085
|
|
|
—
|
|
|
24,468
|
|
|||||
Cash and cash equivalents at beginning of year
|
103,284
|
|
|
5,614
|
|
|
52,122
|
|
|
—
|
|
|
161,020
|
|
|||||
Cash and cash equivalents at end of year
|
$
|
38,015
|
|
|
$
|
61,266
|
|
|
$
|
86,207
|
|
|
$
|
—
|
|
|
$
|
185,488
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
1st
|
|
2nd
|
|
3rd
|
|
4th
|
||||||||
(in thousands, except per share data)
|
Quarter
(1)
|
|
Quarter
(2)
|
|
Quarter
(3)
|
|
Quarter
(4)
|
||||||||
Net revenue
|
$
|
2,372,579
|
|
|
$
|
2,458,271
|
|
|
$
|
2,464,877
|
|
|
$
|
2,542,981
|
|
Gross margin
|
$
|
324,687
|
|
|
$
|
324,994
|
|
|
$
|
352,574
|
|
|
$
|
364,710
|
|
Net income (loss)
|
$
|
8,151
|
|
|
$
|
(182,777
|
)
|
|
$
|
(565
|
)
|
|
$
|
(261,821
|
)
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
$
|
0.13
|
|
|
$
|
(3.07
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(4.37
|
)
|
Cash dividends per common share
|
$
|
0.260
|
|
|
$
|
0.260
|
|
|
$
|
0.260
|
|
|
$
|
0.075
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
(in thousands, except per share data)
|
1st
Quarter
(5)
|
|
2nd
Quarter
(6)
|
|
3rd
Quarter
(7)
|
|
4th
Quarter
(8)
|
||||||||
Net revenue
|
$
|
2,328,573
|
|
|
$
|
2,265,907
|
|
|
$
|
2,333,961
|
|
|
$
|
2,389,834
|
|
Gross margin
|
$
|
281,180
|
|
|
$
|
273,532
|
|
|
$
|
301,942
|
|
|
$
|
315,212
|
|
Net income
|
$
|
18,785
|
|
|
$
|
20,141
|
|
|
$
|
10,871
|
|
|
$
|
22,997
|
|
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
$
|
0.31
|
|
|
$
|
0.33
|
|
|
$
|
0.18
|
|
|
$
|
0.38
|
|
Cash dividends per common share
|
$
|
0.2575
|
|
|
$
|
0.2575
|
|
|
$
|
0.2575
|
|
|
$
|
0.2575
|
|
2.1
|
||
|
||
2.2
|
||
|
|
|
3.1
|
||
|
||
3.2
|
||
|
|
|
4.1
|
||
|
||
4.2
|
||
|
||
4.3
|
||
|
||
4.4
|
||
|
|
|
4.5
|
||
|
|
|
4.6
|
||
|
|
|
10.1
|
||
|
|
|
10.2
|
||
|
|
|
10.3
|
||
|
||
10.4
|
||
|
||
10.5
|
||
|
|
|
10.6
|
||
|
|
|
10.7
|
||
|
|
10.8
|
||
|
||
10.9
|
||
|
||
10.10
|
||
|
||
10.11
|
||
|
||
10.12
|
||
|
||
10.13
|
||
|
||
10.14
|
||
|
||
10.15
|
||
|
|
|
10.16
|
||
|
|
|
10.17
|
||
|
|
|
10.18
|
||
|
|
|
10.19
|
||
|
|
|
10.20
|
||
|
|
|
10.21
|
||
|
|
|
10.22
|
||
|
|
|
10.23
|
||
|
|
|
10.24
|
||
|
|
|
10.25
|
||
|
|
|
10.26
|
||
|
|
10.27
|
||
|
|
|
10.28
|
||
|
|
|
10.29
|
||
|
|
|
10.30
|
||
|
|
|
10.31
|
||
|
|
|
10.32
|
||
|
|
|
10.33
|
||
|
|
|
10.34
|
||
|
|
|
10.35
|
||
|
|
|
10.36
|
||
|
|
|
10.37
|
||
|
|
|
10.38
|
||
|
|
|
10.39
|
||
|
|
|
10.40
|
||
|
|
|
10.41
|
||
|
|
|
10.42
|
|
|
|
10.43
|
||
|
|
|
10.44
|
||
|
|
|
10.45
|
||
|
|
|
10.46
|
||
|
|
|
10.47
|
||
|
|
|
10.48
|
||
|
|
|
10.49
|
||
|
|
|
10.50
|
||
|
|
|
11.1
|
||
|
|
|
21.1
|
||
|
|
|
23.1
|
||
|
|
|
31.1
|
||
|
|
|
31.2
|
||
|
|
|
32.1
|
||
|
|
|
32.2
|
||
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Definition Linkbase Document
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
OWENS & MINOR, INC.
|
|
|
|
|
|
/s/ Robert C. Sledd
|
|
Robert C. Sledd
|
|
Chairman and Interim President & Chief Executive Officer
|
|
|
|
|
|
|
/s/ Robert C. Sledd
|
|
/s/ Lemuel E. Lewis
|
Robert C. Sledd
|
|
Lemuel E. Lewis
|
Chairman and Interim President & Chief Executive Officer
|
|
Director
|
|
|
|
|
|
|
/s/ Robert K. Snead
|
|
/s/ Martha H. Marsh
|
Robert K. Snead
|
|
Martha H. Marsh
|
Chief Financial Officer
|
|
Director
|
|
|
|
|
|
|
/s/ Michael W. Lowry
|
|
/s/ Mark F. McGettrick
|
Michael W. Lowry
|
|
Mark F. McGettrick
|
Chief Accounting Officer
|
|
Director
|
|
|
|
|
|
|
/s/ Stuart M. Essig
|
|
/s/ Eddie N. Moore, Jr.
|
Stuart M. Essig
|
|
Eddie N. Moore, Jr.
|
Director
|
|
Director
|
|
|
|
|
|
|
/s/ John W. Gerdelman
|
|
/s/ Anne Marie Whittemore
|
John W. Gerdelman
|
|
Anne Marie Whittemore
|
Director
|
|
Lead Director
|
|
|
|
|
|
|
/s/ Barbara B. Hill
|
|
|
Barbara B. Hill
|
|
|
Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary
|
State of Incorporation/Organization
|
Country
|
Assumed Name
|
500 Expressway Drive South LLC
|
Delaware
|
USA
|
|
Access Diabetic Supply, L.L.C.
|
Florida
|
USA
|
AOM Healthcare Solutions
|
Access Respiratory Supply Inc
|
Florida
|
USA
|
|
AVID Medical, Inc.
|
Delaware
|
USA
|
|
Barista Acquisition I, LLC
|
Virginia
|
USA
|
|
Barista Acquisition II, LLC
|
Virginia
|
USA
|
|
Byram Healthcare Centers, Inc.
|
New Jersey
|
USA
|
|
Byram Holdings I, Inc.
|
New Jersey
|
USA
|
|
Clinical Care Services, L.L.C.
|
Utah
|
USA
|
|
Diabetes Specialty Center, L.L.C.
|
Utah
|
USA
|
|
Fusion 5 Inc.
|
Delaware
|
USA
|
|
GNB Associates, LLC
|
Virginia
|
USA
|
|
Halyard North Carolina, LLC
|
North Carolina
|
USA
|
|
Key Diabetes Supply Co.
|
Michigan
|
USA
|
AOM Healthcare Solutions
|
MAI Acquisition Corp.
|
Delaware
|
USA
|
|
Medegen Newco, LLC
|
Delaware
|
USA
|
|
Medical Action Industries, Inc.
|
Delaware
|
USA
|
|
Medical Supply Group, Inc.
|
Virginia
|
USA
|
|
O&M Byram Holdings, GP
|
Delaware
|
USA
|
|
O&M Funding Corp.
|
Virginia
|
USA
|
|
O&M Halyard, Inc.
|
Virginia
|
USA
|
|
O&M Worldwide, LLC
|
Virginia
|
USA
|
|
OMSolutions International, Inc.
|
Virginia
|
USA
|
|
Owens & Minor Canada, Inc.
|
Virginia
|
USA
|
|
Owens & Minor Distribution, Inc.
|
Virginia
|
USA
|
OM Healthcare Logistics
|
Owens & Minor Global Resources, LLC
|
Virginia
|
USA
|
|
Owens & Minor Healthcare Supply, Inc.
|
Virginia
|
USA
|
|
Owens & Minor International Logistics, Inc.
|
Virginia
|
USA
|
|
Owens & Minor Medical, Inc.
|
Virginia
|
USA
|
|
Owens & Minor, Inc.
|
Virginia
|
USA
|
|
Owens & Minor, Inc. Executive Deferred Compensation Trust
|
Virginia
|
USA
|
|
Arabian Medical Products Manufacturing Company (19%)
|
N/A
|
Saudi Arabia
|
|
ArcRoyal Holdings Unlimited Company
|
N/A
|
Ireland
|
|
ArcRoyal Unlimited Company
|
N/A
|
Ireland
|
|
Avent de Honduras S.A. de C.V.
|
N/A
|
Honduras
|
|
AVS Health Espana SL
|
N/A
|
Spain
|
|
Halyard Malaysia SND BHD
|
N/A
|
Malaysia
|
|
Healthcare Product Services Ltd.
|
N/A
|
United Kingdom
|
|
Healthcare Services Group Limited
|
N/A
|
United Kingdom
|
|
La Ada de Acuna, S. de R.L. de C.V
|
N/A
|
Mexico
|
|
MIRA Medsource (Malaysia) SDN. BHD.
|
N/A
|
Malaysia
|
|
Mira MEDsource (Shanghai) Co., LTD
|
N/A
|
Shanghai
|
|
Mira MEDsource Holding Company Limited
|
N/A
|
Hong Kong
|
|
Movianto Belgium NV
|
N/A
|
Belgium
|
|
Movianto Ceska republika sro
|
N/A
|
Czech Republic
|
|
Movianto Deutschland GmbH
|
N/A
|
Germany
|
|
Movianto Espana SLU
|
N/A
|
Spain
|
|
Movianto France SAS
|
N/A
|
France
|
|
Movianto GmbH
|
N/A
|
Germany
|
|
Movianto Nordic ApS
|
N/A
|
Denmark
|
|
Movianto Polska SP ZOO
|
N/A
|
Poland
|
|
Movianto Portugal, Unipessoal LDA
|
N/A
|
Portugal
|
|
Movianto Schweiz GmbH
|
N/A
|
Switzerland
|
|
Movianto Slovensko sro
|
N/A
|
Slovak Republic
|
|
Movianto Transport Solutions Ltd.
|
N/A
|
United Kingdom
|
|
Movianto UK Ltd.
|
N/A
|
United Kingdom
|
|
Nalvest Limited
|
N/A
|
Jersey
|
|
O and M Halyard South Africa Pty Ltd
|
N/A
|
South Africa
|
|
O&M Brasil Consultoria Ltda
|
N/A
|
Sao Paolo
|
|
O&M Halyard Australia PTY LTD
|
N/A
|
New South Wales
|
|
O&M Halyard Belgium
|
N/A
|
Belgium
|
|
O&M Halyard Canada ULC
|
N/A
|
British Columbia
|
|
O&M Halyard France
|
N/A
|
France
|
|
O&M Halyard Germany GmbH
|
N/A
|
Germany
|
|
O&M Halyard Health India LLP
|
N/A
|
Maharashtra
|
|
O&M Halyard International Unlimited Company
|
N/A
|
Ireland
|
|
O&M Halyard Japan GK
|
N/A
|
Japan
|
|
O&M Halyard Mexico, S. DE R.L. DE C.V.
|
N/A
|
Mexico
|
|
O&M Halyard Netherlands B.V.
|
N/A
|
Netherlands
|
|
O&M Halyard Singapore PTE Ltd
|
N/A
|
Singapore
|
|
O&M Halyard UK Limited
|
N/A
|
United Kingdom
|
|
O&M Healthcare International Limited
|
N/A
|
Ireland
|
|
O&M Healthcare Italia S.R.L.
|
N/A
|
Italy
|
|
O&M International Healthcare C.V.
|
N/A
|
Netherlands
|
|
O&M-Movianto France Holdings S.A.S.
|
N/A
|
France
|
|
O&M-Movianto Nederland B.V.
|
N/A
|
Netherlands
|
|
O&M-Movianto UK Holdings Ltd.
|
N/A
|
United Kingdom
|
|
Owens & Minor Global Services Unlimited Company
|
N/A
|
Ireland
|
|
Owens & Minor International Limited
|
N/A
|
Ireland
|
|
Owens & Minor Ireland Unlimited Company
|
N/A
|
Ireland
|
|
Owens & Minor Jersey Holdings Limited
|
N/A
|
Jersey
|
|
Owens & Minor Jersey Unlimited
|
N/A
|
Jersey
|
|
Pharmacare Logistics Ltd.
|
N/A
|
United Kingdom
|
|
Rutherford Holdings C.V.
|
N/A
|
Netherlands
|
|
Safeskin Medical & Scientific (Thailand) Ltd.
|
N/A
|
Songkhla
|
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2018 of Owens & Minor, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 6, 2019
|
/s/ Robert C. Sledd
|
|
Robert C. Sledd
|
|
Chairman and Interim President & Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2018, of Owens & Minor, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
March 6, 2019
|
/s/ Robert K. Snead
|
|
Robert K. Snead
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Robert C. Sledd
|
Robert C. Sledd
|
Chairman and Interim President & Chief Executive Officer
|
Owens & Minor, Inc.
|
March 6, 2019
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Robert K. Snead
|
Robert K. Snead
|
Chief Financial Officer
|
Owens & Minor, Inc.
|
March 6, 2019
|