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 AmerisourceBergen Reports Fourth Quarter and Fiscal Year 2015 Results
   Thursday, October 29, 2015 6:30:02 AM ET

AmerisourceBergen Corporation (ABC ) today reported that in its fiscal year 2015 fourth quarter ended September 30, 2015, adjusted diluted earnings per share increased 6.4 percent to $1.17. Revenue increased 12.3 percent to $35.5 billion in the quarter. Adjusted earnings per share for the September quarter included a one-time tax charge that negatively impacted adjusted results by 4 cents. On the basis of U.S. generally accepted accounting principles (GAAP), diluted earnings per share were $1.56 for the September quarter of fiscal 2015. In the tables that follow, we present our GAAP results as well as GAAP to non-GAAP reconciliations.

"Our strong performance in the September quarter and excellent results for the fiscal year put us in position to continue to meet our long-term strategic and financial objectives in the years ahead," said Steven H. Collis, AmerisourceBergen President and Chief Executive Officer. "Over the course of fiscal 2015, we made a strategic acquisition of MWI Veterinary Supply, Inc. and earlier this month announced a definitive agreement to acquire PharMEDium Healthcare Holdings, Inc. Both of these acquisitions strengthen our position in the pharmaceutical supply channel, and enhance our ability to grow in the future and deliver value to all of our stakeholders. Our strong balance sheet and cash flow generation, thoughtful deployment of capital, and associates’ dedication to delivering financial and operating excellence gives me great confidence that we will continue to drive success in fiscal 2016."

The comments below compare adjusted results, which exclude:

-- Warrant expense;

-- Gains on antitrust litigation settlements;

-- LIFO expense;

-- Acquisition-related intangibles amortization;

-- Employee severance, litigation and other expenses; and

-- An impairment charge related to an equity investment.

In addition, we calculate our adjusted earnings per share for each period using a diluted weighted average share count, which excludes the accounting dilution resulting from the impact of the unexercised equity warrants, and the impact from the shares repurchased under our special share repurchase programs. We previously issued $600 million of 1.15% senior notes due in May 2017 to fund our initial special share repurchase program. The interest expense incurred relating to this borrowing is also excluded from the non-GAAP presentation.

Summary of Adjusted Quarterly Results

-- Revenue: In the fourth quarter of fiscal 2015, revenue was $35.5 billion, up 12.3 percent compared to the same quarter in the previous fiscal year, reflecting an 8 percent increase in AmerisourceBergen Drug Corporation (ABDC) revenue, and a 24 percent increase in AmerisourceBergen Specialty Group (ABSG) revenue.

-- Gross Profit: Gross profit in the fiscal 2015 fourth quarter was $1.1 billion, a 14.6 percent increase over the same period in the previous year, driven primarily by the addition of a full quarter of results from MWI Veterinary Supply, Inc. (MWI). Gross profit as a percentage of revenue increased 6 basis points to 2.99 percent from the prior year quarter.

-- Operating Expenses: In the fourth quarter of fiscal 2015, operating expenses were $606 million, up 20.5 percent over the same period in the last fiscal year. The increase in operating expenses in the quarter was primarily driven by the addition of MWI and additional costs to support the increase in revenue growth, particularly at ABSG. Operating expenses as a percentage of revenue in the fiscal 2015 fourth quarter were 1.71 percent compared with 1.59 percent for the same period in the previous fiscal year, driven by the higher expense profile of MWI.

-- Operating Income: In the fiscal 2015 fourth quarter, operating income of $456 million was up 7.6 percent versus the prior year, driven by the increase in gross profit, which was offset in part by the increase in operating expenses. Operating income as a percentage of revenue decreased 5 basis points to 1.29 percent in the fiscal 2015 fourth quarter compared to the previous year’s fourth quarter.

-- Tax Rate: The effective tax rate for the fourth quarter of fiscal 2015 was 37.0 percent, down from 37.5 percent in the previous fiscal year’s fourth quarter, as the favorable impact of growth in our international businesses was offset in part by a $10 million reserve of a deferred tax asset, originating from state net operating losses, that will not likely be utilized.

-- Earnings Per Share: Diluted earnings per share were up 6.4 percent to $1.17 in the fourth quarter of fiscal year 2015 compared to $1.10 in the previous fiscal year’s fourth quarter, driven by the increase in operating income.

-- Shares Outstanding: Diluted weighted average shares outstanding for the fourth quarter of fiscal year 2015 were 230.1 million, flat versus the prior year quarter as share repurchases offset employee stock option exercises.

Segment Discussion

The Pharmaceutical Distribution segment includes both AmerisourceBergen Drug Corporation and AmerisourceBergen Specialty Group. Other includes AmerisourceBergen Consulting Services, World Courier, and MWI.

Pharmaceutical Distribution Segment

In the fourth fiscal quarter of 2015, Pharmaceutical Distribution revenues were $34.0 billion, an increase of 10 percent compared to the same quarter in the prior year. ABDC revenues increased 8 percent, due primarily to the onboarding of the Walgreens Boots Alliance, Inc. generic pharmaceuticals business, and solid organic sales growth from our independent pharmacy, alternate site, and health systems customers. ABSG revenues increased 24 percent, which was driven by strong performance in our blood products, vaccine and physician office distribution businesses, the impact of manufacturer shifts of certain oncology products from full line distribution to specialty distribution, and an increase in sales to community oncology practices. Intrasegment revenues between ABDC and ABSG have been eliminated in the presentation of total Pharmaceutical Distribution revenue. Total intrasegment revenues were $1.6 billion and $1.1 billion in the quarters ended September 30, 2015 and 2014, respectively.

Operating income of $388.1 million in the September quarter of fiscal 2015 was essentially flat compared to the same period in the previous year due to the impact of previously announced customer renewals and a lower contribution from generic inflation.

Other

Revenues in Other were $1.6 billion in the fourth quarter of fiscal 2015, an increase of 139 percent over the same period in the prior year due to the addition of a full quarter of revenues from MWI. Operating income increased 82 percent to $68 million in the fourth quarter of fiscal 2015, driven by the additional income from MWI.

Summary of Fiscal Year 2015

In fiscal year 2015, adjusted diluted earnings per share from continuing operations were $4.96, an increase of 24.9 percent over the prior fiscal year. Revenue of $136.0 billion was up 13.7 percent over the last fiscal year. Gross profit increased 21.2 percent and operating income increased 22.0 percent, driven primarily by the increase in revenues and the addition of MWI. Operating income margin increased 10 basis points to 1.40 percent due to the addition of MWI and the improvement in ABDC’s operating income margin. Diluted weighted average shares outstanding in fiscal 2015 were 230.3 million, down one percent from the prior fiscal year.

Fiscal Year 2016 Expectations

Our expectations for financial performance in fiscal 2016 assume that we will complete the PharMEDium transaction during the first fiscal quarter. Other assumptions include:

-- Adjusted diluted earnings per share in the range of $5.73 to $5.90, a 15 percent to 19 percent increase over fiscal 2015;

-- Revenue growth in the range of 8 percent to 10 percent;

-- Adjusted operating income growth in the 16 percent to 18 percent range;

-- Adjusted operating margin increase of 8 to 12 basis points;

-- Effective tax rate of approximately 35.5 percent;

-- Free cash flow generation in the range of $2.3 billion to $2.7 billion;

-- Capital expenditures in the $400 million range;

-- Modest share repurchases under the regular and special programs, as well as special share repurchases to satisfy previously disclosed hedging programs, all subject to market conditions.

Conference Call

The Company will host a conference call to discuss the results at 11:00 a.m. Eastern Time on October 29, 2015.

Participating in the conference call will be:

Steven H. Collis, President & Chief Executive Officer Tim G. Guttman, Executive Vice President & Chief Financial Officer

The dial-in number for the live call will be (612) 332-1210. No access code is required. The live call will also be webcast via the Company’s website at www.amerisourcebergen.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 www.amerisourcebergen.com approximately two hours after the completion of the call and will remain available for thirty days. The telephone replay will also be available approximately two hours after the completion of the call and will remain available for seven days. To access the telephone replay from within the US, dial (800) 475-6701. From outside the US, dial (320) 365-3844. The access code for the replay is 370374.

About AmerisourceBergen

AmerisourceBergen is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. With services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen delivers innovative programs and solutions across the pharmaceutical supply channel in human and animal health. With over $135 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs approximately 17,000 people. AmerisourceBergen is ranked #16 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.

AmerisourceBergen’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 and Section 21E of the Securities Exchange Act of 1934. Words such as "expect," "likely," "outlook," "forecast," "would," "could," "should," "can," "will," "project," "intend," "plan," "continue," "sustain," "synergy," "on track," "believe," "seek," "estimate," "anticipate," "may," "possible," "assume," variations of such words, and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and change in circumstances. These statements are not guarantees of future performance and are based on assumptions that could prove incorrect or could cause actual results to vary materially from those indicated. Among the factors that could cause actual results to differ materially from those projected, anticipated, or implied are the following: competition; industry consolidation of both customers and suppliers resulting in increasing pressure to reduce prices for our products and services; changes in pharmaceutical market growth rates; price inflation in branded and generic pharmaceuticals, and price deflation in generics; declining economic conditions in the United States and abroad; financial market volatility and disruption; substantial defaults in payment, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer; the loss, bankruptcy or insolvency of a major supplier; changes to the customer or supplier mix; the retention of key customer or supplier relationships under less favorable economics or the adverse resolution of any contract or other dispute with customers or suppliers; interest rate and foreign currency exchange rate fluctuations; the disruption of AmerisourceBergen’s cash flow and ability to return value to its stockholders in accordance with its past practices; risks associated with the strategic, long-term relationship between Walgreen Boots Alliance, Inc. and AmerisourceBergen, including with respect to the pharmaceutical distribution agreement and/or the global sourcing joint venture; risks associated with the potential impact on AmerisourceBergen’s earnings per share resulting from the issuance of the warrants to subsidiaries of Walgreen Boots Alliance, Inc. (the "Warrants"); AmerisourceBergen’s inability to implement its hedging strategy to mitigate the potentially dilutive effect of the issuance of its common stock in accordance with the Warrants under its special share repurchase program due to its financial performance, the current and future share price of its common stock, its expected cash flows, competing priorities for capital, and overall market conditions; changes in the United States healthcare and regulatory environment; increasing governmental regulations regarding the pharmaceutical supply channel and pharmaceutical compounding; federal and state government enforcement initiatives to detect and prevent suspicious orders of controlled substances and the diversion of controlled substances; federal and state prosecution of alleged violations of related laws and regulations, and any related litigation, including shareholder derivative lawsuits or other disputes relating to our distribution of controlled substances; increased federal scrutiny and qui tam litigation for alleged violations of fraud and abuse laws and regulations and/or any other laws and regulations governing the marketing, sale, purchase and/or dispensing of pharmaceutical products or services and any related litigation; material adverse resolution of pending legal proceedings; declining reimbursement rates for pharmaceuticals; the possibility that the merger with PharMEDium may not be completed in the anticipated time frame, or at all; the acquisition of businesses that do not perform as expected, or that are difficult to integrate or control, including the integration of MWI and, if completed, PharMEDium, or the ability to capture all of the anticipated synergies related thereto; managing foreign expansion, including non-compliance with the U.S. Foreign Corrupt Practices Act, anti-bribery laws and economic sanctions and import laws and regulations; malfunction, failure or breach of sophisticated information systems to operate as designed; risks generally associated with data privacy regulation and the international transfer of personal data; changes in tax laws or legislative initiatives that could adversely affect AmerisourceBergen’s tax positions and/or AmerisourceBergen’s tax liabilities or adverse resolution of challenges to AmerisourceBergen’s tax positions; natural disasters or other unexpected events that affect AmerisourceBergen’s operations; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting AmerisourceBergen’s business generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors) and Item 1 (Business) in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014 and elsewhere in that report and (ii) in other reports filed with the Securities and Exchange Commission.

                                                                                                                                                              
                                                                                                                                 AMERISOURCEBERGEN CORPORATION
                                                                                                                                       FINANCIAL SUMMARY
                                                                                                                             (In thousands, except per share data)
                                                                                                                                          (unaudited)
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               
                                                                                          Three                                                                                          Three
                                                                                      Months Ended                                                                                   Months Ended
                                                                                      September 30,                                            % of                                  September 30,                                % of                                        %
                                                                                          2015                                                Revenue                                    2014                                    Revenue                                   Change
                                                                  -----------------------------------------------------                     ----------                     --------------------------------                     ---------                     --------------------------------
                                                                                                                                                                                                                                                               
Revenue                                                                              $ 35,470,378                                                                                             $ 31,588,708                                                          12.3 %
                                                                                                                                                                                                                                                               
Cost of goods sold                                                  34,496,804                                                         30,716,164                                                          12.3 %
                                                                  -------------------- ---------- --------------------                                                     -------------------- ----------
                                                                                                                                                                                                                                                               
Gross profit (1)                                                                          973,574                                            2.74 %                                                872,544                      2.76 %                              11.6 %
                                                                                                                                                                                                                                                               
Operating expenses:
    Distribution, selling and administrative                                              556,367                                            1.57 %                                                459,249                      1.45 %                              21.1 %
    Depreciation and amortization                                                          69,348                                            0.20 %                                                 49,512                      0.16 %                              40.1 %
    Warrants                                                                             (196,487 )                                         -0.55 %                                                155,739                      0.49 %
    Employee severance, litigation and other                             6,895                         0.02 %                                 781                         - %
                                                                  -------------------- ---------- --------------------                                                     -------------------- ----------
Total operating expenses                                                                  436,123                                            1.23 %                                                665,281                      2.11 %                             -34.4 %
                                                                                                                                                                                                                                                               
Operating income                                                                          537,451                                            1.52 %                                                207,263                      0.66 %                             159.3 %
                                                                                                                                                                                                                                                               
Other loss                                                                                  2,413                                            0.01 %                                                  1,332                         - %
                                                                                                                                                                                                                                                               
Impairment charge on equity investment (2)                                                 30,622                                            0.09 %                                                      -                         - %
                                                                                                                                                                                                                                                               
Interest expense, net                                                   28,920                         0.08 %                              17,653                      0.06 %                              63.8 %
                                                                  -------------------- ---------- --------------------                                                     -------------------- ----------
                                                                                                                                                                                                                                                               
Income before income taxes                                                                475,496                                            1.34 %                                                188,278                      0.60 %                             152.5 %
                                                                                                                                                                                                                                                               
Income taxes                                                           111,209                         0.31 %                             120,476                      0.38 %                              -7.7 %
                                                                  -------------------- ---------- --------------------                                                     -------------------- ----------
                                                                                                                                                                                                                                                               
Net income                                                                           $    364,287                         1.03 %                                           $     67,802                      0.21 %                             437.3 %
                                                                  ==================== ========== ====================                                                     ==================== ==========
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               
Earnings per share:
    Basic                                                                            $       1.72                                                                                             $       0.30                                                         473.3 %
    Diluted                                                                          $       1.56                                                                                             $       0.29                                                         437.9 %
                                                                                                                                                                                                                                                               
Weighted average common shares outstanding:
    Basic                                                                                 212,155                                                                                                  224,087
    Diluted (3)                                                                           233,395                                                                                                  235,074                                                          -0.7 %
                                                                                                                                                                                                                                                                          
(1)   Includes a $88.9 million LIFO expense charge and a $0.4 million
                         gain from antitrust litigation settlements in the three months
                         ended September 30, 2015. Includes a $54.4 million LIFO expense
                         charge in the three months ended September 30, 2014.
(2)                      Represents an impairment charge related to the Company’s minority
                         ownership interest in a pharmaceutical wholesaler in Brazil.
(3)                      Includes the dilutive effect of stock options, restricted stock,
                         restricted stock units and the Warrants issued to Walgreens Boots
                         Alliance, Inc.
                          
                                                                                                                                                                                                                                                                           
                                                                                                                                                 AMERISOURCEBERGEN CORPORATION
                                                                                                                                                       FINANCIAL SUMMARY
                                                                                                                                             (In thousands, except per share data)
                                                                                                                                                          (unaudited)
                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                
                                                                                                    Fiscal                                                                                                    Fiscal
                                                                                                  Year Ended                                                                                                Year Ended
                                                                                                 September 30,                                            % of                                             September 30,                                           % of                                        %
                                                                                                     2015                                                Revenue                                               2014                                               Revenue                                   Change
                                                                            ------------------------------------------------------                     ----------                     ------------------------------------------------------                     ---------                     --------------------------------
                                                                                                                                                                                                                                                                                                
Revenue                                                                                        $ 135,961,803                                                                                             $ 119,569,127                                                                               13.7 %
                                                                                                                                                                                                                                                                                                
Cost of goods sold                                                            132,432,490                                                         116,586,761                                                            13.6 %
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                
Gross profit (1)                                                                                   3,529,313                                            2.60 %                                               2,982,366                                           2.49 %                              18.3 %
                                                                                                                                                                                                                                                                                                
Operating expenses:
    Distribution, selling and administrative                                                       1,918,045                                            1.41 %                                               1,587,261                                           1.33 %                              20.8 %
    Depreciation and amortization                                                                    243,280                                            0.18 %                                                 185,290                                           0.15 %                              31.3 %
    Warrants                                                                                         912,724                                            0.67 %                                                 422,739                                           0.35 %
    Employee severance, litigation and other                                       37,894                         0.03 %                                8,192                        0.01 %
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
Total operating expenses                                                                           3,111,943                                            2.29 %                                               2,203,482                                           1.84 %                              41.2 %
                                                                                                                                                                                                                                                                                                
Operating income                                                                                     417,370                                            0.31 %                                                 778,884                                           0.65 %                             -46.4 %
                                                                                                                                                                                                                                                                                                
Other loss (income) (2)                                                                               13,598                                            0.01 %                                                  (4,360 )                                            - %
                                                                                                                                                                                                                                                                                                
Impairment charge on equity investment (3)                                                            30,622                                            0.02 %                                                       -                                              - %
                                                                                                                                                                                                                                                                                                
Interest expense, net                                                                                 99,001                                            0.07 %                                                  76,862                                           0.06 %                              28.8 %
                                                                                                                                                                                                                                                                                                
Loss on early retirement of debt                                                        -                            - %                               32,954                        0.03 %
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                
Income before income taxes                                                                           274,149                                            0.20 %                                                 673,428                                           0.56 %                             -59.3 %
                                                                                                                                                                                                                                                                                                
Income taxes                                                                      409,036                         0.30 %                              389,398                        0.33 %                               5.0 %
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                
(Loss) income from continuing operations                                                            (134,887 )                                         -0.10 %                                                 284,030                                           0.24 %                            -147.5 %
                                                                                                                                                                                                                                                                                                
Loss from discontinued operations, net of income taxes                                  -                                                              (7,546 )
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
                                                                                                                                                                                                                                                                                                
Net (loss) income                                                               ($134,887 )                                         -0.10 %                                           $     276,484                        0.23 %
                                                                            ==================== =========== ====================                                                     ==================== =========== ====================
                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                
Basic earnings per share:
    Continuing operations                                                                             ($0.62 )                                                                                           $        1.25                                                                             -149.6 %
    Discontinued operations                                                             -                                                               (0.03 )
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
        Total                                                                      ($0.62 )                                                                                           $        1.22  
                                                                            ==================== =========== ====================                                                     ==================== =========== ====================
                                                                                                                                                                                                                                                                                                
Diluted earnings per share:
    Continuing operations                                                                             ($0.62 )                                                                                           $        1.21                                                                             -151.2 %
    Discontinued operations                                                                                -                                                                                                     (0.03 )
    Rounding                                                                            -                                                               (0.01 )
                                                                            -------------------- ----------- --------------------                                                     -------------------- ----------- --------------------
        Total                                                                      ($0.62 )                                                                                           $        1.17  
                                                                            ==================== =========== ====================                                                     ==================== =========== ====================
                                                                                                                                                                                                                                                                                                
Weighted average common shares outstanding:
    Basic                                                                                            217,786                                                                                                   227,367
    Diluted (4)                                                                                      217,786                                                                                                   235,405                                                                               -7.5 %
                                                                                                                                                                                                                                                                                                           
(1)   Includes a $542.8 million LIFO expense charge and a $65.5 million
                         gain from antitrust litigation settlements in the fiscal year
                         ended September 30, 2015. Includes a $348.1 million LIFO expense
                         charge and a $24.4 million gain from antitrust litigation
                         settlements in the fiscal year ended September 30, 2014.
(2)                      Includes a $11.1 million loss on the sale of a small technology
                         business in the fiscal year ended September 30, 2015.
(3)                      Represents an impairment charge related to the Company’s minority
                         ownership interest in a pharmaceutical wholesaler in Brazil.
(4)                      As a result of the net loss, stock options, restricted stock,
                         restricted stock units and the Warrants issued to Walgreens Boots
                         Alliance, Inc. were anti-dilutive for the fiscal year ended
                         September 30, 2015. The dilutive effect of these items is included
                         in the fiscal year ended September 30, 2014.
                          
                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                     AMERISOURCEBERGEN CORPORATION
                                                                                                                                                                                                                                     GAAP TO NON-GAAP RECONCILIATIONS
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                                                                                                                                                     (unaudited)
                                                    
                                                                                                                                                                                                                                                                                                             Three Months Ended September 30, 2015
                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Diluted
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Earnings Per Share
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        --------------------------------
                                                                                     Gross Profit                                                Operating                                            Operating Income                                          Impairment Charge                                      Interest Expense, Net                                   Income Before Income Taxes                                        Income Taxes                                              Net Income
                                                                                                                                                 Expenses
                                                                        -----------------------------------                        ---------------------------------                        ----------------------------------                        ---------------------------------                        ----------------------------------                        ------------------------------------                        ---------------------------------                        ----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
GAAP                                                                         $   973,574                                                $ 436,123                                                $  537,451                                                $  30,622                                                 $  28,920                                                  $  475,496                                                $ 111,209                                                $  364,287                                                $   1.56
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Warrant expense (1)                                                                    -                                                  196,487                                                  (196,487 )                                                      -                                                    (2,156 )                                                  (194,331 )                                                  7,072                                                  (201,403 )                                                 (0.85 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Gain on antitrust litigation settlements                                            (443 )                                                      -                                                      (443 )                                                      -                                                         -                                                        (443 )                                                    470                                                      (913 )                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
LIFO expense                                                                      88,929                                                        -                                                    88,929                                                        -                                                         -                                                      88,929                                                   29,399                                                    59,530                                                    0.26
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Acquisition-related intangibles amortization                                           -                                                  (19,617 )                                                  19,617                                                        -                                                         -                                                      19,838                                                    7,207                                                    12,631                                                    0.05
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Employee severance, litigation and other                                               -                                                   (6,895 )                                                   6,895                                                        -                                                         -                                                       6,895                                                    2,652                                                     4,243                                                    0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Impairment charge on equity investment (2)                                             -                                                        -                                                         -                                                  (30,622 )                                                       -                                                      30,622                                                        -                                                    30,622                                                    0.13
                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                        --------------------------------------                     ------------------------------------                     -------------------------------------                     ------------------------------------                     -------------------------------------                     ---------------------------------------                     ------------------------------------                     -------------------------------------                     -----------------------------------
Adjusted Non-GAAP                                                            $ 1,062,060                             $ 606,098                             $  455,962                             $       -                              $  26,764                               $  427,006                             $ 158,009                             $  268,997                             $   1.17  
                                                                        ====== ========= ====================                      ====== ======= ====================                      ====== ======== ====================                      ====== ======= ====================                      ======= ======= ====================                      ======== ======== ====================                      ====== ======= ====================                      ====== ======== ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Adjusted Non-GAAP % changes vs. prior year quarter                                  14.6 %                                                   20.5 %                                                     7.6 %                                                      - %                                                    72.5 %                                                       4.6 %                                                    3.2 %                                                     5.5 %                                                   6.4 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Percentages of Revenue:                                                                                                                          Adjusted
                                                                                         GAAP                                                    Non-GAAP
                                                                        --------------------------------------                     ------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Gross profit                                                                        2.74 %                                                   2.99 %
Operating expenses                                                                  1.23 %                                                   1.71 %
Operating income                                                                    1.52 %                                                   1.29 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
 
(2) Represents an impairment charge related to the
Company’s minority ownership interest in a pharmaceutical wholesaler
in Brazil. Due to the nature of the loss, no tax benefit was
recorded.
                                    
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company’s
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
 
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     AMERISOURCEBERGEN CORPORATION
                                                                                                                                                                                                                                     GAAP TO NON-GAAP RECONCILIATIONS
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                               Three Months Ended September 30, 2014
                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Diluted Earnings Per Share
                                                                              Gross Profit                                          Operating Expenses                                                Operating Income                                              Interest Expense, Net                                   Income Before Income Taxes                                        Income Taxes                                              Net Income
                                                                  ------------------------------------                     -------------------------------------                     --------------------------------------------------                     -------------------------------------                     ---------------------------------------                     ------------------------------------                     ------------------------------------
                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    --------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
GAAP                                                                   $ 872,544                                                $  665,281                                                              $ 207,263                                                 $  17,653                                                  $  188,278                                                $ 120,476                                                $  67,802                                                       $          0.29
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Warrant expense (1)                                                            -                                                  (155,739 )                                                              155,739                                                    (2,136 )                                                   157,875                                                    7,139                                                  150,736                                                                  0.66
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Gain on antitrust litigation settlements                                     (40 )                                                       -                                                                    (40 )                                                       -                                                         (40 )                                                   (146 )                                                    106                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
LIFO expense                                                              54,416                                                         -                                                                 54,416                                                         -                                                      54,416                                                   22,431                                                   31,985                                                                  0.14
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Acquisition-related intangibles amortization                                   -                                                    (5,683 )                                                                5,683                                                         -                                                       6,911                                                    2,743                                                    4,168                                                                  0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Employee severance, litigation and other                                       -                                                      (781 )                                                                  781                                                         -                                                         781                                                      339                                                      442                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Loss on early retirement of debt                                               -                                                         -                                                                      -                                                         -                                                           -                                                      176                                                     (176 )                                                                   -
                                                                                                                                                                                                                                                                                                                                                                
                                                                  ------------------------------------                     -------------------------------------                     --------------------------------------------------                     -------------------------------------                     ---------------------------------------                     ------------------------------------                     ------------------------------------                     ----------------------------
Adjusted Non-GAAP                                                      $ 926,920                             $  503,078                                           $ 423,842                              $  15,517                               $  408,221                             $ 153,158                             $ 255,063                                    $          1.10                      (2)
                                                                  ====== ======= ====================                      ====== ======== ====================                      ==================== ======= ====================                      ======= ======= ====================                      ======== ======== ====================                      ====== ======= ====================                      ====== ======= ====================                      ============= =============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                         Adjusted
Percentages of Revenue:                                                           GAAP                                                   Non-GAAP
                                                                  ------------------------------------                     -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Gross profit                                                                2.76 %                                                    2.93 %
Operating expenses                                                          2.11 %                                                    1.59 %
Operating income                                                            0.66 %                                                    1.34 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
(1) The amount of Warrant expense deductible for tax
purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
 
(2) The sum of the components do not equal the total due
to rounding.
                                    
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company’s
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
 
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     AMERISOURCEBERGEN CORPORATION
                                                                                                                                                                                                                                     GAAP TO NON-GAAP RECONCILIATIONS
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                            Fiscal Year Ended September 30, 2015
                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Diluted Earnings Per Share
                                                                                    Gross Profit                                            Operating Expenses                                               Operating Income                                                Impairment Charge                                      Interest Expense, Net                                    Income Before Income Taxes                                        Income Taxes                                            Net (Loss) Income
                                                                       --------------------------------------                     --------------------------------------                     -------------------------------------------------                     ------------------------------------                     -------------------------------------                     ----------------------------------------                     ------------------------------------                     --------------------------------------
                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
GAAP                                                                        $ 3,529,313                                                $ 3,111,943                                                $              417,370                                                $  30,622                                                 $  99,001                                                  $   274,149                                                $ 409,036                                                  ($134,887 )                                                $    (0.62 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Warrant expense (1)                                                                   -                                                   (912,724 )                                                             912,724                                                        -                                                    (8,615 )                                                    921,339                                                   28,540                                                    892,799                                                        3.91
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Gain on antitrust litigation settlements                                        (65,493 )                                                        -                                                               (65,493 )                                                      -                                                         -                                                      (65,493 )                                                (24,933 )                                                  (40,560 )                                                     (0.18 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
LIFO expense                                                                    542,807                                                          -                                                               542,807                                                        -                                                         -                                                      542,807                                                  206,648                                                    336,159                                                        1.46
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Acquisition-related intangibles amortization                                          -                                                    (54,095 )                                                              54,095                                                        -                                                         -                                                       55,117                                                   20,984                                                     34,133                                                        0.15
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Employee severance, litigation and other                                              -                                                    (37,894 )                                                              37,894                                                        -                                                         -                                                       37,894                                                   14,426                                                     23,468                                                        0.10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Impairment charge on equity investment (2)                                            -                                                          -                                                                     -                                                  (30,622 )                                                       -                                                       30,622                                                        -                                                     30,622                                                        0.13
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                       --------------------------------------                     --------------------------------------                     -------------------------------------------------                     ------------------------------------                     -------------------------------------                     ----------------------------------------                     ------------------------------------                     --------------------------------------                     ---------------------------------------
Adjusted Non-GAAP                                                           $ 4,006,627                             $ 2,107,230                             $            1,899,397                             $       -                              $  90,386                               $ 1,796,435                             $ 654,701                             $ 1,141,734                               $     4.96                        (3)
                                                                       ====== ========= ====================                      ====== ========= ====================                      ====== ==================== ====================                      ====== ======= ====================                      ======= ======= ====================                      ======== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ======== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Adjusted Non-GAAP % changes vs. prior year period                                  21.2 %                                                     20.5 %                                                                22.0 %                                                      - %                                                    22.5 %                                                       20.7 %                                                   15.9 %                                                     23.6 %                                                      24.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                 Adjusted
Percentages of Revenue:                                                                 GAAP                                                     Non-GAAP
                                                                       --------------------------------------                     --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Gross profit                                                                       2.60 %                                                     2.95 %
Operating expenses                                                                 2.29 %                                                     1.55 %
Operating income                                                                   0.31 %                                                     1.40 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
(1) The amount of Warrant expense deductible for income
tax purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
 
(2) Represents an impairment charge related to the
Company’s minority ownership interest in a pharmaceutical wholesaler
in Brazil. Due to the nature of the loss, no tax benefit was
recorded.
                                    
(3) The sum of the components do not equal the total due
to rounding.
                                    
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company’s
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
 
 
                                                                                                                                                                                                                                     AMERISOURCEBERGEN CORPORATION
                                                                                                                                                                                                                                     GAAP TO NON-GAAP RECONCILIATIONS
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                       Fiscal Year Ended September 30, 2014
                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Diluted Earnings Per Share From Continuing Operations
                                                                                                                                                                                                                                                                                                                   Loss on Retirement of Debt                                                                                                                                                      Income From Continuing Operations
                                                                                                                                                                                                                                                                                                             ---------------------------------------                                                                                                                                         ---------------------------------------------
                                                                               Gross Profit                                            Operating Expenses                                          Operating Income                                        Interest Expense, Net                                                  Income Before Income Taxes                                        Income Taxes
                                                                  --------------------------------------                     --------------------------------------                     --------------------------------------                     -------------------------------------                              ---------------------------------------------------       ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
GAAP                                                                   $ 2,982,366                                                $ 2,203,482                                                $   778,884                                                 $  76,862                                                  $   32,954                                                $   673,428                                                $ 389,398                                                     $     284,030                                                           $              1.21
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Warrant expense (1)                                                              -                                                   (422,739 )                                                  422,739                                                    (3,062 )                                                         -                                                    425,801                                                   26,434                                                           399,367                                                                          1.73
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Gain on antitrust litigation settlements                                   (24,436 )                                                        -                                                    (24,436 )                                                       -                                                           -                                                    (24,436 )                                                 (9,370 )                                                         (15,066 )                                                                       (0.06 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
LIFO expense                                                               348,063                                                          -                                                    348,063                                                         -                                                           -                                                    348,063                                                  133,445                                                           214,618                                                                          0.92
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Acquisition-related intangibles amortization                                     -                                                    (23,167 )                                                   23,167                                                         -                                                           -                                                     24,395                                                    9,354                                                            15,041                                                                          0.06
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Employee severance, litigation and other                                         -                                                     (8,192 )                                                    8,192                                                         -                                                           -                                                      8,192                                                    3,141                                                             5,051                                                                          0.02
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Loss on early retirement of debt                                                 -                                                          -                                                          -                                                         -                                                     (32,954 )                                                   32,954                                                   12,634                                                            20,320                                                                          0.09
                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                  --------------------------------------                     --------------------------------------                     --------------------------------------                     -------------------------------------                     ---------------------------------------                     --------------------------------------                     ------------------------------------                     ---------------------------------------------                     ---------------------------------------------------------
Adjusted Non-GAAP                                                      $ 3,305,993                             $ 1,749,384                             $ 1,556,609                              $  73,800                               $        -                             $ 1,488,397                             $ 565,036                                  $     923,361                                        $              3.97  
                                                                  ====== ========= ====================                      ====== ========= ====================                      ====== ========= ====================                      ======= ======= ====================                      ======== ======== ====================                      ====== ========= ====================                      ====== ======= ====================                      =========== =========== ====================                      ================= ================= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                            Adjusted
Percentages of Revenue:                                                            GAAP                                                     Non-GAAP
                                                                  --------------------------------------                     --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Gross profit                                                                  2.49 %                                                     2.76 %
Operating expenses                                                            1.84 %                                                     1.46 %
Operating income                                                              0.65 %                                                     1.30 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
(1) The amount of Warrant expense deductible for income
tax purposes is based on the initial valuation of the Warrants.
Therefore, the income tax rate on Warrant expense will vary by
quarter depending upon the quarterly changes in the fair value of
the Warrants. In connection with the fiscal 2014 special $650
million share repurchase program, the Company issued $600 million of
1.15% senior notes due in May 2017. The interest expense incurred
relating to this borrowing has been excluded from the non-GAAP
presentation.
 
Note: Management considers GAAP financial measures as well as the
presented non-GAAP financial measures in evaluating the Company’s
operating performance. Therefore, the Company believes that the
presentation of non-GAAP financial measures provides useful
supplementary information to, and facilitates additional analysis
by, investors.
 
 
                                                                                                           AMERISOURCEBERGEN CORPORATION
                                                                                          RECONCILIATION OF DILUTED SHARES OUTSTANDING (GAAP TO NON-GAAP)
                                                                                                                  (In thousands)
                                                                                                                    (unaudited)
                                                                                                                                                
                                                                                                                                                                                                                              
                                                                                                                                                                                                                              
                                                                                                              Three Months Ended September 30,                                                     Fiscal Year Ended September 30,
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------------
                                                                                                       2015                                      2014                                      2015                                      2014
                                                                                               --------------------                      --------------------                      --------------------                      --------------------
                                                                                                                                                                                                                              
Basic shares outstanding                                                                                    212,155                                   224,087                                   217,786                                   227,367
                                                                                                                                                                                                                              
                                                                                                              4,523                                     4,643                                         -                                     4,787
   Stock option, restricted stock, and restricted stock unit dilution
                                                                                                                                                                                                                              
   Warrant dilution                                                                                          16,717                                     6,344                                         -                                     3,251
                                                                                                                                                                     
                                                                                               --------------------                      --------------------                      --------------------                      --------------------
GAAP diluted shares outstanding                                                                             233,395                                   235,074                                   217,786                                   235,405
                                                                                               --------------------                      --------------------                      --------------------                      --------------------
                                                                                                                                                                                                                              
   Warrant dilution (1)                                                                                    (16,717)                                   (6,344)                                         -                                   (3,251)
                                                                                                                                                                                                                              
   Shares repurchased under special share repurchase programs (1)                                            13,444                                     2,197                                     7,629                                       657
                                                                                                                                                                                                                              
   Stock option, restricted stock, and restricted stock unit dilution (2)                                         -                                         -                                     4,857                                         -
                                                                                                                                                                     
                                                                                               --------------------                      --------------------                      --------------------                      --------------------
Non-GAAP diluted shares outstanding                                                                         230,122                                   230,927                                   230,272                                   232,811
                                                                                               --------------------                      --------------------                      --------------------                      --------------------
                                                                                                                                                                                                                              
(1) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to exclude the
impact of the Warrants and the shares repurchased under special
share repurchase programs, which were established to mitigate the
potentially dilutive effect of the Warrants and supplement the
Company’s previously executed hedging strategy.
 
(2) For the non-GAAP presentation, diluted weighted
average common shares outstanding have been adjusted to include the
impact of the stock options, restricted stock, and restricted stock
units that were anti-dilutive for the GAAP presentation.
 
         
                                                 AMERISOURCEBERGEN CORPORATION
                                                 WARRANT COVERAGE INFORMATION
                                                         (in millions)
                                                          (unaudited)
                                                                                                          
2016 Warrant Coverage:                                                                                       9/30/2015 (1)
------------------------------------------------------------                                             --------------------
   Shares from 2016 Capped Calls                                                                                         12.6
   Share Repurchases (2)                                                                                                 10.1
                                                                                                         --------------------
   Total Shares Covered                                                                                                  22.7
                                                                                                         ====================
                                                                                                          
   2016 Warrant Shares                                                                                                   22.7
                                                                                                         --------------------
   2016 Warrant Coverage                                                                                                 100%
                                                                                                         --------------------
                                                                                                          
                                                                                                          
                                                                                                          
2017 Warrant Coverage:
------------------------------------------------------------
   Shares from 2017 Capped Calls                                                                                         11.4
   Share Repurchases (2)                                                                                                  8.7
   2015 Call Options (3)                                                                                                  1.2
                                                                                                         --------------------
   Total Shares Covered                                                                                                  21.3
                                                                                                         ====================
                                                                                                          
   2017 Warrant Shares                                                                                                   22.7
                                                                                                         --------------------
   2017 Warrant Coverage                                                                                                  94%
                                                                                                         --------------------
                                                                                                          
(1) Based on September 30, 2015 closing stock price of
$94.99.
 
(2) Includes 4.5 million Call Options exercised between
April 2015 and September 2015.
                                
(3) Includes 1.2 million Call Options exercised from
October 1, 2015 through October 28, 2015, for a total cost of
approximately $112 million.
 
                          Estimated Number of Shares to be Received
                                Upon Exercise of Capped Calls
                         (at various illustrative ABC share prices)
                                        (in millions)
                                
Illustrative ABC                       2016 Capped                          2017 Capped
 Share Price (4)                          Calls                                Calls
----------------                      -----------                      --------------------
                                                                        
       $95                                12.6                                 11.4
      $100                                12.0                                 10.9
      $105                                11.4                                 10.3
      $110                                10.9                                  9.9
      $115                                10.4                                  9.4
      $120                                10.0                                  9.1
      $125                                 9.6                                  8.7
      $130                                 9.2                                  8.4
                                                                        
(4) An ABC share price below $95 will increase the number
of shares to be received up to a maximum of 13.6 million shares for
the 2016 and 2017 Capped Calls, respectively.
 
 
                                                                                                       AMERISOURCEBERGEN CORPORATION
                                                                                                        SUMMARY SEGMENT INFORMATION
                                                                                                          (dollars in thousands)
                                                                                                                (unaudited)
                                                                                                                                                            
                                                                                                                                                                                                                       
                                                                                                                                      Three Months Ended September 30,
                                                                  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue                                                                                   2015                                                                      2014                                                    % Change
--------------------------------------------                      -----------------------------------------------------                     -----------------------------------------------------                     ---------------------
                                                                                                                                                                                                                       
Pharmaceutical Distribution                                                          $ 33,976,475                                                              $ 31,016,044                                                  9.5 %
Other                                                                                   1,557,201                                                                   652,239                                                138.7 %
Intersegment eliminations                                              (63,298 )                                              (79,575 )                                              -20.5 %
                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                       
       Revenue                                                                       $ 35,470,378                                           $ 31,588,708                              12.3 %
                                                                  ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
                                                                                                                                      Three Months Ended September 30,
                                                                  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating income                                                                          2015                                                                      2014                                                    % Change
--------------------------------------------                      -----------------------------------------------------                     -----------------------------------------------------                     ---------------------
                                                                                                                                                                                                                       
Pharmaceutical Distribution                                                          $    388,144                                                              $    386,487                                                  0.4 %
Other                                                                   67,818                              37,355                              81.5 %
                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
   Total segment operating income                                                         455,962                                                                   423,842                                                  7.6 %
                                                                                                                                                                                                                       
Gains on antitrust litigation settlements                                                     443                                                                        40
LIFO expense                                                                              (88,929 )                                                                 (54,416 )
Acquisition-related intangibles amortization                                              (19,617 )                                                                  (5,683 )
Warrant expense                                                                           196,487                                                                  (155,739 )
Employee severance, litigation and other                                (6,895 )                                                 (781 )
                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                       
          Operating income                                                           $    537,451                                           $    207,263                             159.3 %
                                                                  ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
                                                                                                                                                                                                                       
Percentages of revenue:
                                                                                                                                                                                                                       
Pharmaceutical Distribution
       Gross profit                                                                          2.34 %                                                                    2.55 %
       Operating expenses                                                                    1.19 %                                                                    1.30 %
       Operating income                                                                      1.14 %                                                                    1.25 %
                                                                                                                                                                                                                       
Other
       Gross profit                                                                         17.22 %                                                                   20.92 %
       Operating expenses                                                                   12.86 %                                                                   15.19 %
       Operating income                                                                      4.36 %                                                                    5.73 %
                                                                                                                                                                                                                       
AmerisourceBergen Corporation (GAAP)
       Gross profit                                                                          2.74 %                                                                    2.76 %
       Operating expenses                                                                    1.23 %                                                                    2.11 %
       Operating income                                                                      1.52 %                                                                    0.66 %
                                                                                                                                                                                                                       
AmerisourceBergen Corporation (Non-GAAP)
       Gross profit                                                                          2.99 %                                                                    2.93 %
       Operating expenses                                                                    1.71 %                                                                    1.59 %
       Operating income                                                                      1.29 %                                                                    1.34 %
                                                                                                                                                                                                                       
 
                                                                                                        AMERISOURCEBERGEN CORPORATION
                                                                                                         SUMMARY SEGMENT INFORMATION
                                                                                                           (dollars in thousands)
                                                                                                                 (unaudited)
                                                                                                                                                              
                                                                                                                                                                                                                         
                                                                                                                                        Fiscal Year Ended September 30,
                                                                  ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Revenue                                                                                    2015                                                                       2014                                                    % Change
--------------------------------------------                      ------------------------------------------------------                     ------------------------------------------------------                     ---------------------
                                                                                                                                                                                                                         
Pharmaceutical Distribution                                                          $ 131,480,550                                                              $ 117,383,967                                                 12.0 %
Other                                                                                    4,772,178                                                                  2,449,149                                                 94.9 %
Intersegment eliminations                                              (290,925 )                                              (263,989 )                                               10.2 %
                                                                  -------------------- ----------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                                         
       Revenue                                                                       $ 135,961,803                                           $ 119,569,127                              13.7 %
                                                                  ==================== =========== ====================                      ==================== =========== ====================
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
                                                                                                                                        Fiscal Year Ended September 30,
                                                                  ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating income                                                                           2015                                                                       2014                                                    % Change
--------------------------------------------                      ------------------------------------------------------                     ------------------------------------------------------                     ---------------------
                                                                                                                                                                                                                         
Pharmaceutical Distribution                                                          $   1,644,891                                                              $   1,405,992                                                 17.0 %
Other                                                                   254,506                              150,617                              69.0 %
                                                                  -------------------- ----------- --------------------                      -------------------- ----------- --------------------
   Total segment operating income                                                        1,899,397                                                                  1,556,609                                                 22.0 %
                                                                                                                                                                                                                         
Gains on antitrust litigation settlements                                                   65,493                                                                     24,436
LIFO expense                                                                              (542,807 )                                                                 (348,063 )
Acquisition-related intangibles amortization                                               (54,095 )                                                                  (23,167 )
Warrant expense                                                                           (912,724 )                                                                 (422,739 )
Employee severance, litigation and other                                (37,894 )                                                (8,192 )
                                                                  -------------------- ----------- --------------------                      -------------------- ----------- --------------------
                                                                                                                                                                                                                         
          Operating income                                                           $     417,370                                           $     778,884                             -46.4 %
                                                                  ==================== =========== ====================                      ==================== =========== ====================
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
                                                                                                                                                                                                                         
Percentages of revenue:
                                                                                                                                                                                                                         
Pharmaceutical Distribution
       Gross profit                                                                           2.39 %                                                                     2.36 %
       Operating expenses                                                                     1.14 %                                                                     1.16 %
       Operating income                                                                       1.25 %                                                                     1.20 %
                                                                                                                                                                                                                         
Other
       Gross profit                                                                          18.14 %                                                                    21.84 %
       Operating expenses                                                                    12.80 %                                                                    15.69 %
       Operating income                                                                       5.33 %                                                                     6.15 %
                                                                                                                                                                                                                         
AmerisourceBergen Corporation (GAAP)
       Gross profit                                                                           2.60 %                                                                     2.49 %
       Operating expenses                                                                     2.29 %                                                                     1.84 %
                                                                                              0.31 %                                                                     0.65 %
       Operating income
                                                                                                                                                                                                                         
AmerisourceBergen Corporation (Non-GAAP)
       Gross profit                                                                           2.95 %                                                                     2.76 %
       Operating expenses                                                                     1.55 %                                                                     1.46 %
       Operating income                                                                       1.40 %                                                                     1.30 %
                                                                                                                                                                                                                         
 
                                                                     AMERISOURCEBERGEN CORPORATION
                                                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                            (in thousands)
                                                                              (unaudited)
                                                                                      
                                                                                                                              
                      ASSETS
                                                                                  September 30,                                             September 30,
                                                                                      2015                                                      2014
                                                                        --------------------------------                     ------------------------------------------
Current assets:
    Cash and cash equivalents                                                              $  2,167,442                                         $            1,808,513
    Accounts receivable, net                                                                  8,222,951                                                      6,312,883
    Merchandise inventories                                                                   9,755,094                                                      8,593,852
    Prepaid expenses and other                                               189,001                                      84,957
                                                                        -------------------- ----------                      -------------------- --------------------
        Total current assets                                                                 20,334,488                                                     16,800,205
                                                                                                                              
Property and equipment, net                                                                     979,251                                                        899,582
Goodwill and other intangible assets                                                          6,123,944                                                      3,481,744
Other long-term assets                                                       298,474                                     350,652
                                                                        -------------------- ----------                      -------------------- --------------------
                                                                                                                              
        Total assets                                                                       $ 27,736,157                                         $           21,532,183
                                                                        ==================== ==========                      ==================== ====================
                                                                                                                              
                                                                                                                              
       LIABILITIES AND STOCKHOLDERS’ EQUITY
                                                                                                                              
Current liabilities:
    Accounts payable                                                                       $ 20,886,439                                         $           15,592,834
    Other current liabilities                                              1,814,326                                   1,657,326
                                                                        -------------------- ----------                      -------------------- --------------------
        Total current liabilities                                                            22,700,765                                                     17,250,160
                                                                                                                              
Long-term debt                                                                                3,493,048                                                      1,995,632
                                                                                                                              
Other long-term liabilities                                                                     908,824                                                        329,492
                                                                                                                              
Stockholders’ equity                                                         633,520                                   1,956,899
                                                                        -------------------- ----------                      -------------------- --------------------
                                                                                                                              
        Total liabilities and stockholders’ equity                                         $ 27,736,157                                         $           21,532,183
                                                                        ==================== ==========                      ==================== ====================
                                                                                                                                                   
 
                                                                                                AMERISOURCEBERGEN CORPORATION
                                                                                       CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                       (in thousands)
                                                                                                         (unaudited)
                                                                                                                                 
                                                                                                                     Fiscal                                                                    Fiscal
                                                                                                                   Year Ended                                                                Year Ended
                                                                                                                  September 30,                                                             September 30,
                                                                                                                      2015                                                                      2014
                                                                                              -----------------------------------------------------                     ----------------------------------------------------
                                                                                                                                                                         
Operating Activities:
    Net (loss) income                                                                                               ($134,887 )                                                            $   276,484
    Loss from discontinued operations                                                                    -                              7,546  
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
       (Loss) income from continuing operations                                                                      (134,887 )                                                                284,030
                                                                                                                    1,284,660                                                                  750,940
    Adjustments to reconcile (loss) income from continuing operations
    to net cash provided by operating activities (1)
    Changes in operating assets and liabilities, excluding the effects
    of acquisitions and divestitures:
          Accounts receivable                                                                                      (1,478,793 )                                                               (938,286 )
          Merchandise inventories (2)                                                                                (836,382 )                                                               (956,506 )
          Accounts payable, accrued expenses, and income taxes                                                      5,127,345                                                                2,317,589
          Other                                                                                    (41,564 )                                              12,932  
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
       Net cash provided by operating activities - continuing operations                                            3,920,379                                                                1,470,699
       Net cash used in operating activities - discontinued operations                                   -                             (7,546 )
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
    Net cash provided by operating activities                                                    3,920,379                          1,463,153  
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                         
Investing Activities:
    Capital expenditures                                                                                             (231,585 )                                                               (264,457 )
    Cost of acquired companies, net of cash acquired                                                               (2,633,412 )                                                                 (9,103 )
    Cost of equity investments                                                                                              -                                                                 (117,794 )
    Investment in available-for-sale securities                                                                       (86,214 )                                                                      -
    Other                                                                                           20,046                              7,199  
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
    Net cash used in investing activities                                                       (2,931,165 )                                            (384,155 )
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                         
Financing Activities:
    Net borrowings                                                                                                  1,496,390                                                                  566,402
    Purchases of common stock (3)                                                                                  (1,859,106 )                                                               (753,926 )
    Exercises of stock options                                                                                        193,991                                                                  127,906
    Cash dividends on common stock                                                                                   (253,919 )                                                               (214,469 )
    Purchases of call options                                                                                        (180,000 )                                                               (211,397 )
    Other                                                                                          (27,641 )                                             (16,007 )
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
    Net cash used in financing activities                                                         (630,285 )                                            (501,491 )
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                         
Increase in cash and cash equivalents                                                                                 358,929                                                                  577,507
                                                                                                                                                                         
Cash and cash equivalents at beginning of year                                                   1,808,513                          1,231,006  
                                                                                              -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                         
Cash and cash equivalents at end of year                                                                         $  2,167,442                                           $ 1,808,513  
                                                                                              ==================== ========== ====================                      ==================== ========= ====================
                                                                                                                                                                                                        
(1) Adjustments include non-cash warrant expense of
$912.7 million and $422.7 million for the fiscal years ended
September 30, 2015 and 2014, respectively.
 
(2) Merchandise inventories include LIFO expense of
$542.8 million and $348.1 million for the fiscal years ended
September 30, 2015 and 2014, respectively.
                                  
(3) Includes purchases made under special share
repurchase programs totaling $1,540.1 million in the fiscal year
ended September 30, 2015, which includes $18.0 million of fiscal
2014 purchases that cash settled in October 2014.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20151029005406r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20151029005406/en/

SOURCE: AmerisourceBergen Corporation

AmerisourceBergen Corporation 
Barbara Brungess 
Vice President, Corporate & Investor Relations 
610-727-7199 
bbrungess@amerisourcebergen.com


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