Full Press Release Details
CENCORA REPORTS FISCAL 2024 THIRD QUARTER RESULTS
Revenue of $74.2 billion for the Third Quarter, a 10.9 Percent Increase Year-Over-Year
Third Quarter GAAP Diluted EPS of $2.42 and Adjusted Diluted EPS of $3.34
Adjusted Diluted EPS Guidance Range Raised to $13.55 to $13.65 for Fiscal 2024
CONSHOHOCKEN, PA, July 31, 2024 - Cencora, Inc. (NYSE COR) today reported that in its fiscal year 2024 third quarter ended June 30, 2024, revenue increased 10.9 percent year-over-year to $74.2 billion. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share (EPS) was $2.42 for the third quarter of fiscal 2024 compared to $2.35 in the prior year third quarter. Adjusted diluted EPS, which is a non-GAAP financial measure that excludes items described below, increased 14.4 percent to $3.34 in the fiscal third quarter from $2.92 in the prior year third quarter.
Cencora is updating its outlook for fiscal year 2024. The Company does not provide forward-looking guidance on a GAAP basis, as discussed below in Fiscal Year 2024 Expectations. Adjusted diluted EPS guidance has been raised from the previous range of $13.35 to $13.55 to a range of $13.55 to $13.65.
"We are pleased to raise our fiscal 2024 guidance following Cencora's strong third quarter results, as our purpose-driven team members exhibited another quarter of solid execution against our pharmaceutical-centric strategy," said Steven H. Collis, Chairman, President Chief Executive Officer of Cencora.
"Throughout my time as Cencora's CEO, our strategic positioning at the center of healthcare has allowed our company to capitalize on market growth and innovation while enhancing our capabilities to help our customers navigate the complexity of the ever-changing healthcare environment, Mr. Collis continued. "As I move into my new role as Executive Chairman of the Board on October 1st, I am incredibly proud of the growth and evolution of our enterprise, and as COO Bob Mauch concurrently transitions into his new role of CEO, I am confident that Cencora will continue to drive long-term value creation for its partners and stakeholders."
Third Quarter Fiscal Year 2024 Summary Results
| GAAP | Adjusted (Non-GAAP) | |
| Revenue | $74.2B | $74.2B |
| Gross Profit | $2.4B | $2.4B |
| Operating Expenses | $1.7B | $1.5B |
| Operating Income | $672M | $878M |
| Interest Expense, Net | $31M | $31M |
| Effective Tax Rate | 22.4% | 21.0% |
| Net Income Attributable to Cencora, Inc. | $483M | $668M |
| Diluted Earnings Per Share | $2.42 | $3.34 |
| Diluted Shares Outstanding | 200.0M | 200.0M |
Below, Cencora presents descriptive summaries of the Company's GAAP and adjusted (non-GAAP) quarterly results. In the tables that follow, GAAP results and GAAP to non-GAAP reconciliations are presented. For more information related to non-GAAP financial measures, including adjustments made in the periods presented, please refer to the "Supplemental Information Regarding Non-GAAP Financial Measures" following the tables.
Third Quarter GAAP Results
Revenue In the third quarter of fiscal 2024, revenue was $74.2 billion, up 10.9 percent compared to the same quarter in the previous fiscal year, primarily due to a 12.2 percent increase in revenue within the U.S. Healthcare Solutions segment.
Gross Profit Gross profit in the third quarter of fiscal 2024 was $2.4 billion, a 6.5 percent increase compared to the same period in the previous fiscal year, due primarily to the increase in gross profit in the U.S. Healthcare Solutions segment and a lower Turkey highly inflationary impact on inventory, offset in part by lower gains from antitrust litigation settlements. Gross profit as a percentage of revenue was 3.25 percent, a decrease of 13 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and or weight loss in the GLP-1 class, which have lower profit margins.
Operating Expenses In the third quarter of fiscal 2024, operating expenses were $1.7 billion, a 9.0 percent increase compared to the same quarter in the previous fiscal year, primarily due to a litigation and opioid-related expense in the current year period compared to a credit in the prior year quarter, and an increase in distribution, selling, and administrative expenses to support revenue growth.
Operating Income In the third quarter of fiscal 2024, operating income of $672.5 million was essentially flat compared to the same period in the previous fiscal year due to the increase in gross profit, offset by the increase in operating expenses. Operating income as a percentage of revenue was 0.91 percent in the third quarter of fiscal 2024, a decrease of 9 basis points when compared to the prior year quarter due to the decline in gross profit margin.
Interest Expense, Net In the third quarter of fiscal 2024, net interest expense of $31.3 million decreased 45.9 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher investment interest rates and higher average investment cash balances, and a decrease in interest expense driven by decreased variable-rate borrowings and the September 2023 divestiture of our less-than-wholly-owned subsidiary in Egypt.
Effective Tax Rate The effective tax rate was 22.4 percent for the third quarter of fiscal 2024. The effective tax rate was 21.3 percent in the prior year quarter.
Diluted Earnings Per Share Diluted earnings per share was $2.42 in the third quarter of fiscal 2024, a 3.0 percent increase compared to $2.35 in the previous fiscal year's third quarter.
Diluted Shares Outstanding Diluted weighted average shares outstanding for the third quarter of fiscal 2024 were 200.0 million, a decrease of 2.1 percent versus the prior fiscal year third quarter primarily due to share repurchases.
Third Quarter Adjusted (non-GAAP) Results
Revenue No adjustments were made to the GAAP presentation of revenue. In the third quarter of fiscal 2024, revenue was $74.2 billion, up 10.9 percent compared to the same quarter in the previous fiscal year, primarily due to a 12.2 percent increase in revenue within the U.S. Healthcare Solutions segment.
Adjusted Gross Profit Adjusted gross profit in the third quarter of fiscal 2024 was $2.4 billion, a 6.2 percent increase compared to the same period in the previous fiscal year due to the increase in gross profit in the U.S. Healthcare Solutions segment. Adjusted gross profit as a percentage of revenue was 3.19 percent in the fiscal 2024 third quarter, a decrease of 14 basis points from the prior year quarter due to the decline in U.S. Healthcare Solutions gross profit margin primarily due to increased sales of products labeled for diabetes and or weight loss in the GLP-1 class, which have lower profit margins.
Adjusted Operating Expenses In the third quarter of fiscal 2024, adjusted operating expenses were $1.5 billion, a 5.9 percent increase compared to the same period in the previous fiscal year, primarily driven by an increase in distribution, selling, and administrative expenses to support revenue growth.
Adjusted Operating Income In the third quarter of fiscal 2024, adjusted operating income was $877.7 million, a 6.7 percent increase compared to the same period in the prior fiscal year, driven by a 9.9 percent increase in U.S. Healthcare Solutions, partially offset by a 4.1 percent decrease in International Healthcare Solutions. Adjusted operating income as a percentage of revenue was 1.18 percent in the fiscal 2024 third quarter, a decrease of 5 basis points when compared to the prior year quarter.
Interest Expense, Net No adjustments were made to the GAAP presentation of net interest expense. In the third quarter of fiscal 2024, net interest expense of $31.3 million decreased 45.9 percent compared to the same quarter in the previous fiscal year due to an increase in interest income as a result of higher investment interest rates and higher average investment cash balances, and a decrease in interest expense driven by decreased variable-rate borrowings and the September 2023 divestiture of our less-than-wholly-owned subsidiary in Egypt.
Adjusted Effective Tax Rate The adjusted effective tax rate was 21.0 percent for the third quarter of fiscal 2024 compared to 21.5 percent in the prior year quarter.
Adjusted Diluted Earnings Per Share Adjusted diluted earnings per share was $3.34 in the third quarter of fiscal 2024, a 14.4 percent increase compared to $2.92 in the previous fiscal year's third quarter.
Diluted Shares Outstanding No adjustments were made to the GAAP presentation of diluted shares outstanding. Diluted weighted average shares outstanding for the third quarter of fiscal 2024 were 200.0 million, a decrease of 2.1 percent versus the prior fiscal year third quarter primarily due to share repurchases.
The Company is organized geographically based upon the products and services it provides to its customers under two reportable segments U.S. Healthcare Solutions and International Healthcare Solutions.
U.S. Healthcare Solutions
U.S. Healthcare Solutions revenue was $67.2 billion in the third quarter of fiscal 2024, an increase of 12.2 percent compared to the same quarter in the previous fiscal year due to overall market growth primarily driven by unit volume growth, including increased sales of products labeled for diabetes and or weight loss in the GLP-1 class and increased sales of specialty products to physician practices and health systems. Segment operating income of $698.3 million in the third quarter of fiscal 2024 was up 9.9 percent compared to the same period in the previous fiscal year reflecting an increase in gross profit, partially offset by an increase in operating expenses.
International Healthcare Solutions
International Healthcare Solutions revenue of $7.1 billion in the third quarter of fiscal 2024 was flat compared to the previous fiscal year's third quarter. Segment operating income in the third quarter of fiscal 2024 was $179.4 million, a decrease of 4.1 percent, primarily due to higher information technology expenses in our European distribution business and lower operating income at our global specialty logistics business, partially offset by the positive results of our Canadian business. On a constant currency basis, International Healthcare Solutions revenue and operating income increased by 5.8 percent and 0.8 percent, respectively.
Recent Company Highlights Milestones
Cencora hosted its inaugural ThinkLive Cell and Gene Therapy Summit, assembling leaders from across the healthcare and biopharmaceutical industries to explore the latest developments in Cell and Gene Therapy and strategies to drive commercial success and enhance patient access.
Good Neighbor Pharmacy, a national franchise for independent pharmacies offered through Cencora, announced that it has been ranked #1 in Customer Satisfaction with Chain Drug Store Pharmacies in the J.D. Power 2024 U.S. Pharmacy Study. This is the thirteenth time that Good Neighbor Pharmacy has earned this recognition in the last 15 years and the network's eighth consecutive win. In July, Good Neighbor Pharmacy hosted its annual ThoughtSpot tradeshow conference, which provided members the opportunity to collaborate, learn and discover new resources to help them deliver patient care and advance the health of their communities.
Disability IN announced that Cencora earned the recognition of a "Best Place to Work for Disability Inclusion" for the second year in a row based on the company's score on the Disability Equality Index.
Fiscal Year 2024 Expectations
The Company does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available or cannot be reasonably estimated. Please refer to the Supplemental Information Regarding Non-GAAP Financial Measures following the tables for additional information.
Fiscal Year 2024 Expectations on an Adjusted (non-GAAP) Basis
Cencora is updating its fiscal year 2024 financial guidance to reflect expected continued strong business performance in the U.S. Healthcare Solutions segment, tapered expectations in the International Healthcare Solutions segment and a lower net interest expense. The Company now expects
Revenue growth to be approximately 12 percent, from the previous range of 10 to 12 percent
U.S. Healthcare Solutions revenue growth to be in the range of 12 to 13 percent, from the previous range of 11 to 13 percent
International Healthcare Solutions revenue growth to be in the range of 4 to 6 percent, from the previous range of 4 to 7 percent
Adjusted diluted earnings per share to be in the range of $13.55 to $13.65, up from the previous range of $13.35 to $13.55.
Additional expectations now include
Adjusted consolidated operating income growth to be in the range of 10 to 11 percent, from the previous range of 9 to 11 percent
U.S. Healthcare Solutions segment operating income growth to be in the range of 11 to 12 percent, from the previous range of 10 to 12 percent
International Healthcare Solutions segment operating income growth to be in the range of 5 to 7 percent, from the previous range of 5 to 8 percent
Net interest expense to be in the range of $170 million to $190 million, from the previous range of $185 million to $215 million
Adjusted free cash flow to be in the range of $2.5 billion to $3.0 billion, up from the previous expectation of approximately $2.5 billion and
Weighted average diluted shares outstanding are expected to be under 201 million, from the previous range of approximately 201 to 202 million
For additional details regarding updated guidance expectations on a constant currency basis, please refer to our slide presentation for investors.
Dividend Declaration
The Company's Board of Directors declared a quarterly cash dividend of $0.51 per common share, payable August 26, 2024, to stockholders of record at the close of business on August 9, 2024.
Conference Call Slide Presentation
The Company will host a conference call to discuss its operating results at 8 30 a.m. ET on July 31, 2024. A slide presentation for investors has also been posted on the Company's website at investor.cencora.com. Participating in the conference call will be
Steven H. Collis, Chairman, President Chief Executive Officer
James F. Cleary, Executive Vice President Chief Financial Officer
Robert P. Mauch, Executive Vice President Chief Operating Officer
The dial-in number for the live call will be (833) 470-1428. From outside the United States and Canada, dial +1 (404) 975-4839. The access code for the call will be 393872. The live call will also be webcast via the Company's website at investor.cencora.com. Users are encouraged to log on to the webcast approximately 10 minutes in advance of the scheduled start time of the call.
Replays of the call will be made available via telephone and webcast. A replay of the webcast will be posted on investor.cencora.com approximately one hour after the completion of the call and will remain available for one year. The telephone replay will also be available approximately one hour after the completion of the call and will remain available for seven days. To access the telephone replay from within the U.S. and Canada, dial (866) 813-9403. From outside the United States, dial +1 (929) 458-6194. The access code for the replay is 371683.
Upcoming Investor Event
Cencora management will be attending the following investor events in the coming months
Morgan Stanley Global Healthcare Conference, September 5, 2024
Wells Fargo Healthcare Conference, September 6, 2024 and
Baird Healthcare Conference, September 11, 2024.
Please check the website for updates regarding the timing of the live presentation webcasts, if any, and for replay information.
Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #24 on the Global Fortune 500 with more than $250 billion in annual revenue. Learn more at investor.cencora.com
Cencora's Cautionary Note Regarding Forward-Looking Statements
Certain of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"). Words such as "aim," "anticipate," "believe," "can," "continue," "could,", "estimate," expect, "intend," "may," "might," "on track," "opportunity," "plan," "possible," "potential," "predict," "project," "seek," "should," "strive," "sustain," "synergy," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances and speak only as of the date hereof. These statements are not guarantees of future performance and are based on assumptions and estimates that could prove incorrect or could cause actual results to vary materially from those indicated. A more detailed discussion of the risks and uncertainties that could cause our actual results to differ materially from those indicated is included in (i) the "Risk Factors" and "Management's Discussion and Analysis" sections in the Company's Annual Report on Form 10-K for the fiscal year ended September, 30, 2023 and elsewhere in that report and (ii) other reports filed by the Company pursuant to the Securities Exchange Act. The Company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by the federal securities laws.
(in thousands, except per share data)
| Three Months Ended June 30, 2024 | % of Revenue | Three Months Ended June 30, 2023 | % of Revenue | % Change | ||||||||||
| Revenue | $ | 74,241,353 | $ | 66,947,043 | 10.9% | |||||||||
| Cost of goods sold | 71,830,576 | 64,682,397 | 11.1% | |||||||||||
| Gross profit 1 | 2,410,777 | 3.25% | 2,264,646 | 3.38% | 6.5% | |||||||||
| Operating expenses | ||||||||||||||
| Distribution, selling, and administrative | 1,383,206 | 1.86% | 1,304,141 | 1.95% | 6.1% | |||||||||
| Depreciation and amortization | 272,595 | 0.37% | 274,272 | 0.41% | (0.6)% | |||||||||
| Litigation and opioid-related expenses (credit), net 2 | 14,485 | (67,102) | ||||||||||||
| Acquisition-related deal and integration expenses | 25,758 | 19,283 | ||||||||||||
| Restructuring and other expenses | 42,257 | 63,924 | ||||||||||||
| Total operating expenses | 1,738,301 | 2.34% | 1,594,518 | 2.38% | 9.0% | |||||||||
| Operating income | 672,476 | 0.91% | 670,128 | 1.00% | 0.4% | |||||||||
| Other loss, net | 12,814 | 3,436 | ||||||||||||
| Interest expense, net | 31,328 | 57,864 | (45.9)% | |||||||||||
| Income before income taxes | 628,334 | 0.85% | 608,828 | 0.91% | 3.2% | |||||||||
| Income tax expense | 140,740 | 129,615 | ||||||||||||
| Net income | 487,594 | 0.66% | 479,213 | 0.72% | 1.7% | |||||||||
| Net (income) loss attributable to noncontrolling interests | (4,131) | 368 | ||||||||||||
| Net income attributable to Cencora, Inc. | $ | 483,463 | 0.65% | $ | 479,581 | 0.72% | 0.8% | |||||||
| Earnings per share | ||||||||||||||
| Basic | $ | 2.44 | $ | 2.37 | 3.0% | |||||||||
| Diluted | $ | 2.42 | $ | 2.35 | 3.0% | |||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 198,260 | 202,349 | (2.0)% | |||||||||||
| Diluted | 200,047 | 204,375 | (2.1)% |
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1 Includes a $51.6 million gain from antitrust litigation settlements, a $6.8 million LIFO expense, and Turkey foreign currency remeasurement expense of $3.6 million in the three months ended June 30, 2024. Includes a $118.6 million gain from antitrust litigation settlements, a $35.0 million LIFO expense, and Turkey foreign currency remeasurement expense of $50.6 million in the three months ended June 30, 2023.
2 Includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow in the three months ended June 30, 2023.
(in thousands, except per share data)
| Nine Months Ended June 30, 2024 | % of Revenue | Nine Months Ended June 30, 2023 | % of Revenue | % Change | ||||||||||
| Revenue | $ | 214,908,493 | $ | 193,251,080 | 11.2% | |||||||||
| Cost of goods sold | 207,490,881 | 186,545,039 | 11.2% | |||||||||||
| Gross profit 1 | 7,417,612 | 3.45% | 6,706,041 | 3.47% | 10.6% | |||||||||
| Operating expenses | ||||||||||||||
| Distribution, selling, and administrative | 4,170,763 | 1.94% | 3,916,156 | 2.03% | 6.5% | |||||||||
| Depreciation and amortization | 814,930 | 0.38% | 687,678 | 0.36% | 18.5% | |||||||||
| Litigation and opioid-related expenses (credit), net 2 | 161,553 | (38,583) | ||||||||||||
| Acquisition-related deal and integration expenses | 69,431 | 99,392 | ||||||||||||
| Restructuring and other expenses | 152,325 | 177,608 | ||||||||||||
| Total operating expenses | 5,369,002 | 2.50% | 4,842,251 | 2.51% | 10.9% | |||||||||
| Operating income | 2,048,610 | 0.95% | 1,863,790 | 0.96% | 9.9% | |||||||||
| Other loss (income), net | 33,790 | (18,612) | ||||||||||||
| Interest expense, net | 136,022 | 167,989 | (19.0)% | |||||||||||
| Income before income taxes | 1,878,798 | 0.87% | 1,714,413 | 0.89% | 9.6% | |||||||||
| Income tax expense | 366,991 | 330,817 | ||||||||||||
| Net income | 1,511,807 | 0.70% | 1,383,596 | 0.72% | 9.3% | |||||||||
| Net (income) loss attributable to noncontrolling interests | (6,069) | 11,132 | ||||||||||||
| Net income attributable to Cencora, Inc. | $ | 1,505,738 | 0.70% | $ | 1,394,728 | 0.72% | 8.0% | |||||||
| Earnings per share | ||||||||||||||
| Basic | $ | 7.56 | $ | 6.87 | 10.0% | |||||||||
| Diluted | $ | 7.49 | $ | 6.80 | 10.1% | |||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 199,253 | 202,908 | (1.8)% | |||||||||||
| Diluted | 201,025 | 204,995 | (1.9)% |
________________________________________
1 Includes a $108.6 million gain from antitrust litigation settlements, a $64.4 million LIFO credit, and Turkey foreign currency remeasurement expense of $43.9 million in the nine months ended June 30, 2024. Includes a $168.5 million gain from antitrust litigation settlements, a $114.3 million LIFO expense, and Turkey foreign currency remeasurement expense of $59.0 million in the nine months ended June 30, 2023.
2 The nine months ended June 30, 2024 includes a $214.0 million opioid litigation accrual, offset in part by a $92.2 million opioid settlement accrual reduction primarily as a result of the Company's prepayment of the net present value of a future obligation as permitted under its opioid settlement agreements. The nine months ended June 30, 2023 includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | |||||||||||||||||||
| GAAP | $ | 2,410,777 | $ | 1,738,301 | $ | 672,476 | $ | 628,334 | $ | 140,740 | $ | 483,463 | $ | 2.42 | |||||||||||
| Gains from antitrust litigation settlements | (51,605) | - | (51,605) | (51,605) | (12,095) | (39,510) | (0.20) | ||||||||||||||||||
| LIFO expense | 6,839 | - | 6,839 | 6,839 | 2,499 | 4,340 | 0.02 | ||||||||||||||||||
| Turkey highly inflationary impact | 3,636 | - | 3,636 | 4,535 | - | 4,535 | 0.02 | ||||||||||||||||||
| Acquisition-related intangibles amortization | - | (163,850) | 163,850 | 163,850 | 36,729 | 126,687 | 0.63 | ||||||||||||||||||
| Litigation and opioid-related expenses | - | (14,485) | 14,485 | 14,485 | 4,811 | 9,674 | 0.05 | ||||||||||||||||||
| Acquisition-related deal and integration expenses | - | (25,758) | 25,758 | 25,758 | 5,438 | 20,320 | 0.10 | ||||||||||||||||||
| Restructuring and other expenses | - | (42,257) | 42,257 | 42,257 | 9,706 | 32,551 | 0.16 | ||||||||||||||||||
| Loss on remeasurement of equity investment | - | - | - | 13,321 | - | 13,321 | 0.07 | ||||||||||||||||||
| Other, net | - | - | - | 4,638 | 820 | 3,818 | 0.02 | ||||||||||||||||||
| Tax reform 1 | - | - | - | (536) | (9,753) | 9,217 | 0.05 | ||||||||||||||||||
| Adjusted Non-GAAP | $ | 2,369,647 | $ | 1,491,951 | $ | 877,696 | $ | 851,876 | $ | 178,895 | $ | 668,416 | $ | 3.34 | |||||||||||
| Adjusted Non-GAAP % change vs. prior year | 6.2% | 5.9% | 6.7% | 12.1% | 9.5% | 12.1% | 14.4% |
| Percentages of Revenue | GAAP | Adjusted Non-GAAP | ||
| Gross profit | 3.25% | 3.19% | ||
| Operating expenses | 2.34% | 2.01% | ||
| Operating income | 0.91% | 1.18% |
________________________________________
1 Includes tax expense relating to 2020 Swiss tax reform and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss, Net.
Note For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||
| Gross Profit | Operating Expenses | Operating Income | Income Before Income Taxes | Income Tax Expense | Net Income Attributable to Cencora | Diluted Earnings Per Share | ||||||||||||||||||
| GAAP | $ | 2,264,646 | $ | 1,594,518 | $ | 670,128 | $ | 608,828 | $ | 129,615 | $ | 479,581 | $ | 2.35 | ||||||||||
| Gains from antitrust litigation settlements | (118,611) | - | (118,611) | (118,611) | (27,518) | (91,093) | (0.45) | |||||||||||||||||
| LIFO expense | 34,952 | - | 34,952 | 34,952 | 8,037 | 26,915 | 0.13 | |||||||||||||||||
| Turkey highly inflationary impact | 50,580 | - | 50,580 | 57,581 | - | 57,581 | 0.28 | |||||||||||||||||
| Acquisition-related intangibles amortization | - | (169,154) | 169,154 | 169,154 | 39,087 | 129,098 | 0.63 | |||||||||||||||||
| Litigation and opioid-related credit, net 1 | - | 67,102 | (67,102) | (67,102) | 3,750 | (70,852) | (0.35) | |||||||||||||||||
| Acquisition-related deal and integration expenses | - | (19,283) | 19,283 | 19,283 | 4,393 | 14,890 | 0.07 | |||||||||||||||||
| Restructuring and other expenses | - | (63,924) | 63,924 | 63,924 | 14,733 | 49,191 | 0.24 | |||||||||||||||||
| Recovery of non-customer note receivable | - | - | - | (3,000) | - | (3,000) | (0.01) | |||||||||||||||||
| Tax reform 2 | - | - | - | (4,823) | (8,748) | 3,925 | 0.02 | |||||||||||||||||
| Adjusted Non-GAAP | $ | 2,231,567 | $ | 1,409,259 | $ | 822,308 | $ | 760,186 | $ | 163,349 | $ | 596,236 | $ | 2.92 | 3 |
| Percentages of Revenue | GAAP | Adjusted Non-GAAP | ||
| Gross profit | 3.38% | 3.33% | ||
| Operating expenses | 2.38% | 2.11% | ||
| Operating income | 1.00% | 1.23% |
________________________________________
1 Includes the receipt of $83.4 million from the H.D. Smith opioid litigation indemnity escrow.
2 Includes tax expense relating to 2020 Swiss tax reform and the currency remeasurement of the related deferred tax assets, the latter of which is recorded within Other Loss, Net.
3 The sum of the components does not equal the total due to rounding.
Note For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.
GAAP TO NON-GAAP RECONCILIATIONS
(in thousands, except per share data)