What changed in this filing

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Item 1. Business

2021-11-23 compared with 2020-11-19 · 127 added, 49 removed, 160 unchanged (52% of the section changed)

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Aging Population.

The number of individuals age 65 and over in the United States is expected to exceed 63 million by 2024 and is the most rapidly growing segment of the population.

The number of individuals aged 65 and over in the United States is expected to exceed 65 million by 2025 and is the most rapidly growing segment of the population.

This age group suffers from more chronic illnesses and disabilities than the rest of the population and accounts for a substantial portion of total healthcare expenditures in the United States.

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In particular, we believe ongoing research and development of biotechnology and other specialty pharmaceutical drugs will provide opportunities for the continued growth of our specialty pharmaceuticals business.

Increased Use of Generic Pharmaceuticals.

Increased Use of Generic and Biosimilar Pharmaceuticals.

A number of patents for widely used brand-name pharmaceutical products will continue to expire during the next several years.

In addition, increased emphasis by managed care and other third-party payors on utilization of generics has accelerated their growth.

We consider the increase in generic usage a favorable trend because generic pharmaceuticals have historically provided us with a greater gross profit margin opportunity than brand-name products, although their lower prices reduce revenue growth.

In addition, increased emphasis by managed care and other third-party payors on utilization of generics and biosimilars has accelerated their growth.

We consider the increase in generic and biosimilar usage a favorable trend because generic and biosimilar pharmaceuticals have historically provided us with a greater gross profit margin opportunity than brand-name products, although their lower prices reduce revenue growth.

Generic pharmaceuticals currently account for approximately 90% of the prescription volume in the United States.

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Pharmaceutical manufacturers' continued emphasis on research and development is expected to result in the continuing introduction of cost-effective drug therapies and new uses for existing drug therapies.

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Legislative Developments.

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In connection with the mitigation and containment procedures recommended by the WHO and imposed by federal, state, and local governmental authorities, we implemented measures designed to keep our employees safe and address business continuity issues at our distribution centers and other locations.

We continue to evaluate and plan for the potential effects of a prolonged disruption and the related impacts on our revenue, results of operations, and cash flows.

These items include, but are not limited to, the financial condition of our customers and the realization of accounts receivable, decreased availability and demand for our products and services, and delays related to current and future projects.

While our operational and financial performance may be significantly impacted by COVID-19, it is not possible for us to predict the duration or magnitude of the outbreak and whether it could have a material adverse impact on the Company's financial position, results of operations, or cash flows (see Risk Factor - We face risks related to health epidemics and pandemics, and the continued spread of COVID-19 is adversely affecting our business).

We continue to evaluate and plan for the potential effects of any disruption and the related impacts on our revenue, results of operations, and cash flows.

These items include, but are not limited to, the financial condition of our customers and the realization of accounts receivable, changes in availability and demand for our products and services, changes in operating costs, and delays related to current and future projects.

Other economic conditions and certain risk factors could adversely affect our business and prospects (see Item 1A.

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We source generics globally, offer a value-added generic formulary program to our healthcare provider customers, and monitor our customers' compliance with our generics program.

We also provide data and other valuable services to our manufacturer customers, which includes our international presence in Switzerland where we lead our global manufacturer relations and commercialization strategy.

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provide data and other valuable services to our manufacturer customers, which includes our international presence in Switzerland where we lead our global manufacturer relations and commercialization strategy.

We offer value-added services and solutions to assist healthcare providers and pharmaceutical manufacturers to improve their efficiency and their patient outcomes.

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Our consulting service businesses help global pharmaceutical and biotechnology manufacturers commercialize their products.

We believe we are the largest provider of reimbursement services that assist pharmaceutical companies in supporting access to branded drugs.

We believe we are one of the largest providers of reimbursement services that assist pharmaceutical companies in supporting access to branded drugs.

We also provide outcomes research, contract field staffing, patient assistance and copay assistance programs, adherence programs, risk mitigation services, and other market access programs to pharmaceutical companies.

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In order to grow our core strategic offerings and to enter related markets, we have acquired and invested in businesses and will continue to consider additional acquisitions and investments.

On June 1, 2021, we acquired a majority of Walgreens Boots Alliance, Inc.'s ("WBA") Alliance Healthcare businesses ("Alliance Healthcare").

Alliance Healthcare supplies pharmaceuticals, other healthcare products, and related services to healthcare providers, including pharmacies, doctors, health centers, and hospitals in 10 countries, primarily in Europe.

The acquisition expands our reach and solutions in pharmaceutical distribution and adds to our depth and breadth of global manufacturer services.

For the allocation of the purchase price, see Note 2 of the Notes to Consolidated Financial Statements.

• Divestitures.

In order to allow us to concentrate on our strategic focus areas, we have divested certain non-core businesses and may, from time to time, consider additional divestitures.

In January 2020, we decided to permanently exit the PharMEDium Healthcare Holdings LLC’s ("PharMEDium") compounding business, and, as a result, the Company ceased all commercial and administrative operations related to this business in fiscal 2020.

The decision to permanently exit the PharMEDium business was due to a number of factors including, but not limited to, ongoing operational, regulatory, and commercial challenges.

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We recently entered into agreements to sell two non-core subsidiaries.

In connection with entering into these agreements, we concluded that both disposal groups met the held for sale criteria and classified their assets and liabilities as held for sale as of September 30, 2021.

Refer to Note 2 of the Notes to Consolidated Financial Statements for a summary of the assets and liabilities classified as held for sale.

Operating Structure.

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Servicing healthcare providers in the pharmaceutical supply channel, the Pharmaceutical Distribution Services segment's operations provide drug distribution, strategic global sourcing, and related services designed to reduce healthcare costs and improve patient outcomes.

equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers.

Through a number of operating businesses, the Pharmaceutical Distribution Services reportable segment provides pharmaceutical distribution (including plasma and other blood products, injectible pharmaceuticals, vaccines, and other specialty pharmaceutical products) and additional services to physicians who specialize in a variety of disease states, especially oncology, and to other healthcare providers, including hospitals and dialysis clinics.

The Pharmaceutical Distribution Services reportable segment distributes a comprehensive offering of brand-name, specialty brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to a wide variety of healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical clinics, long-term care and alternate site pharmacies, and other customers.

Through a number of operating businesses, the Pharmaceutical Distribution Services reportable segment provides pharmaceutical distribution (including plasma and other blood products, injectable pharmaceuticals, vaccines, and other specialty pharmaceutical products) and additional services to physicians who specialize in a variety of disease states, especially oncology, and to other healthcare providers, including hospitals and dialysis clinics.

Additionally, the Pharmaceutical Distribution Services reportable segment provides data analytics, outcomes research, and additional services for biotechnology and pharmaceutical manufacturers.

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Additionally, it delivers packaging solutions to institutional and retail healthcare providers.

Other consists of operating segments that focus on global commercialization services and animal health and includes AmerisourceBergen Consulting Services ("ABCS"), World Courier, and MWI.

ABCS, through a number of operating businesses, provides a full suite of integrated manufacturer services that range from clinical trial support to product post-approval and commercialization support.

World Courier, which operates in more than 50 countries, is a leading global specialty transportation and logistics provider for the biopharmaceutical industry.

Other consists of operating segments that focus on global commercialization services, animal health (MWI Animal Health), and international pharmaceutical wholesale and related service operations (Alliance Healthcare).

The operating segments that focus on global commercialization services include AmerisourceBergen Consulting Services ("ABCS") and World Courier.

MWI is a leading animal health distribution company in the United States and in the United Kingdom.

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Additionally, MWI offers demand-creating sales force services to manufacturers.

World Courier, which operates in more than 50 countries, is a leading global specialty transportation and logistics provider for the biopharmaceutical industry.

Sales and Marketing .

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We are typically the primary source of supply for our healthcare provider customers.

Our manufacturer customers include branded, generic, and biotechnology manufacturers of prescription pharmaceuticals, as well as over-the-counter product and health and beauty aid manufacturers.

Our manufacturer customers include branded,

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generic, and biotechnology manufacturers of prescription pharmaceuticals, as well as over-the-counter product and health and beauty aid manufacturers.

In addition, we offer a broad range of value-added solutions designed to enhance the operating efficiencies and competitive positions of our customers, thereby allowing them to improve the delivery of healthcare to patients and consumers.

Our two largest customers, Walgreens Boots Alliance, Inc.

("WBA") and Express Scripts, Inc.

("Express Scripts"), accounted for approximately 33% and approximately 12%, respectively, of revenue in the fiscal year ended September 30, 2020.

Our two largest customers, WBA and Express Scripts, Inc.

("Express Scripts"), accounted for approximately 31% a nd approximately 12% , respectively, of revenue in the fiscal year ended September 30, 2021.

Our top 10 customers, including governmental agencies and group purchasing organizations ("GPO"), represented approximately 69% of revenue in the fiscal year ended September 30, 2021.

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Information Systems .

The Pharmaceutical Distribution Services operating segment recently transitioned its key specialty distribution businesses onto its primary enterprise resource planning ("ERP") system.

As a result, the pharmaceutical distribution facilities in the United States all now operate under a single ERP system.

Pharmaceutical Distribution Services’

ERP system provides for, among other things, electronic order entry by customers, invoice preparation and purchasing, and inventory tracking.

All of our other operating segments operate the majority of their businesses on their own common operating systems resulting in the ability to rapidly deploy new capabilities.

We continue to make investments to enhance and upgrade the operating systems utilized by our other operating segments.

The Pharmaceutical Distribution Services operating segment’s distribution facilities in the United States operate under a single enterprise resource planning (“ERP”) system.

Pharmaceutical Distribution Services’ ERP system provides for, among other things, electronic order entry by customers, invoice preparation and purchasing, and inventory tracking.

Our other operating segments operate the majority of their businesses on their own common operating systems resulting in the ability to rapidly deploy new capabilities.

We continue to make investments to enhance and upgrade the operating systems utilized by our other operating segments, including, but not limited to, Alliance Healthcare.

Additionally, we are improving our entity-wide infrastructure environment to drive efficiency, capabilities, and speed to market.

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Pharmaceutical Distribution Services has made significant investments in its electronic ordering systems.

Pharmaceutical Distribution Services’ systems are intended to strengthen customer relationships by helping customers to reduce operating costs, and by providing them a platform for a number of the basic and value-added services, including product demand data, inventory replenishment, single-source billing, third-party claims processing, real-time price and incentive updates, and price labels.

Pharmaceutical Distribution Services’ systems are intended to strengthen customer relationships by helping customers to reduce operating costs, and by providing them a platform for a number of basic and value-added services, including product demand data, inventory replenishment, single-source billing, third-party claims processing, real-time price and incentive updates, and price labels.

Pharmaceutical Distribution Services processes a substantial portion of its purchase orders, invoices, and payments electronically, and it continues to make substantial investments to expand its electronic interface with its suppliers.

Pharmaceutical Distribution Services has warehouse operating systems, which are used to manage the majority of Pharmaceutical Distribution Services’ transactional volume.

Pharmaceutical Distribution Services has warehouse operating systems, which are used to manage the majority of its transactional volume.

The warehouse operating systems have improved Pharmaceutical Distribution Services’ productivity and operating leverage.

A significant portion of our data center operations, which were previously outsourced to third-party providers, is now insourced.

Our data center operations are insourced.

We face a highly competitive global environment in the distribution of pharmaceuticals and related healthcare services.

Our largest competitors are McKesson Corporation ("McKesson"), Cardinal Health, Inc.

("Cardinal"), FFF Enterprises, Henry Schein, Inc., and UPS Logistics, among others.

("Cardinal"), and UPS Logistics, among others.

Pharmaceutical Distribution Services competes with both McKesson and Cardinal, as well as national generic distributors and regional distributors within pharmaceutical distribution.

In addition, we compete with manufacturers who sell directly to customers, chain drugstores who manage their own warehousing, specialty distributors, and packaging and healthcare technology companies.

ABCS, World Courier, and MWI also face competition from a variety of businesses.

ABCS, World Courier, MWI, and Alliance Healthcare also face competition from a variety of businesses.

In all areas, competitive factors include price, product offerings, value-added service programs, service and delivery, credit terms, and customer support.

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Intellectual Property

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Although we believe that our patents or other proprietary products and processes do not infringe upon the intellectual property rights of any third parties, third parties may assert infringement claims against us from time to time.

Human Capital

We aspire to create healthier futures and accelerate business results by inspiring the best and brightest global talent across all dimensions of diversity to perform at their full potential.

As of September 30, 2020, we had approximately 22,000 employees, of which approximately 21,000 were full-time employees.

More than 56% of our workforce is comprised of women, 49% is comprised of individuals with ethnically diverse backgrounds, and 30% of our Board of Directors are women.

Additionally, our Executive Management Committee is made up of 43% women.

Approximately 2% of our employees are covered by collective bargaining agreements.

We believe that our relationship with our employees is good.

If any of our employees in locations that are unionized should engage in strikes or other such bargaining tactics in connection with the negotiation of new collective bargaining agreements upon the expiration of any existing collective bargaining agreements, such tactics could be disruptive to our operations and adversely affect our results of operations.

However, we believe we have adequate contingency plans in place to assure delivery of pharmaceuticals to our customers in the event of any such disruptions.

Human Capital Resources

Our ability to be successful in the global marketplace directly depends on attracting and retaining a talented and skilled workforce.

As the strength of our workforce is critical to our success, we aspire to create healthier futures and accelerate business results by inspiring the best and brightest global talent across all dimensions of diversity to perform at their full potential.

As of September 30, 2021, we had approximately 42,000 employees, of which approximately 38,000 were full-time employees and approximately 40% were U.S.-based employees.

Approximately 27% of our employees are covered by collective bargaining agreements, a large majority of which are Alliance Healthcare employees located outside of the United States.

Talent Development

We consider employee development to be a strategic priority.

We support employee growth and development by offering a variety of benefits including:

• Leadership and professional development programs and resources;

• Tuition reimbursement;

• Opportunities to volunteer and participate in mentorship programs and Employee Resource Groups;

• Recognition for excellence, such as our annual Pursuit of Purpose awards and True Blue associate recognition program;

• Personalized learning and skill building experiences through a global learning experience platform.

Importantly, we have also made thoughtful investments to build our talent and culture.

In fiscal 2020, we partnered with leaders across the Company to create a new integrated talent framework aligned to our business strategy and purpose, and in fiscal 2021, we introduced to our global team members this new framework, which includes a new leadership competency model, enterprise learning strategy, and modern approach to performance management.

We introduced our new leadership model, which emphasizes people, collaboration, innovation, and purpose, to our team members in fiscal 2021 through a series of experiential learning programs.

Implementation started with our top 300 leaders and we are working to embed it into our hiring, performance management, development, and succession-planning processes.

The ultimate goal of the new leadership model is to help us unlock the full potential of our people and build the new skills and behaviors we need to achieve our enterprise strategy.

Our goal is to provide our team members with clear pathways for career development, access to programs and benefits that allow them to live fuller, healthier lives, and an ability to participate in the community in ways that inspire and celebrate individuality.

Our talent development programs are designed to help provide a supportive and engaging work environment where team members can excel, while remaining authentic and empowered to share their unique perspectives.

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Diversity, Equity, and Inclusion ("DE&I")

At AmerisourceBergen, we strive to foster a global workplace that values varying cultural, experiential, and philosophical perspectives, creates pathways for every team member to thrive, makes a positive impact on our communities through equitable access to healthcare, and is transparent and accountable for progress.

We encourage and embrace different cultures and backgrounds, as we recognize the value of employing a workforce of unique and varying viewpoints and experiences.

Currently, 49% of our U.S.

workforce are individuals with ethnically and/or racially diverse backgrounds and 57% are women.

We have one ethnically and/or racially diverse Director, and women account for 30% of our Board of Directors and 57% of our Executive Management Committee.

Our long-term DE&I strategy is focused on four critical dimensions—people, culture, progress, and community—and is grounded in deep organizational insights, our people data, and industry research and benchmarks.

In pursuit of this strategy, in 2021, we:

• Introduced AmerisourceBergen’s Global Diversity & Inclusion Council, representing central leadership and driving force accelerating business results through our global diversity & inclusion strategy.

• Launched the ABility Employee Resource Group ("ERG") with the mission to elevate employee voices, bring enterprise-wide awareness, and become a resource for all individuals and their families with visible and invisible disabilities.

• Furthered our focus on supplier diversity by partnering with businesses with diverse ownership in sectors that we rely on.

• Supported equitable access to COVID-19 vaccines through our Good Neighbor Pharmacy partners, including our partnership with the Federal Retail Pharmacy Program to support vaccination efforts across the U.S., and delivered vaccines in more than 30 countries around the world.

• Directed meaningful dollars, through both the Company and the AmerisourceBergen Foundation, to philanthropic causes that benefit diverse communities, including $700 thousand to the Boys & Girls Clubs of America to address vaccine hesitancy in diverse communities, along with nearly $2.7 million of in-kind donations of healthcare products to underserved communities across the globe in conjunction with our non-profit partners.

• Doubled investment in team member development and launched new enterprise learning strategy and digital learning platform.

In addition to the foregoing, we offer the following DE&I programs and initiatives:

• To connect and align our diverse workforce, our ERG program includes eight ERGs, comprised of approximately 4,000 members globally.

The ERGs continue to evolve, as leaders and members help to enhance workforce engagement, support the local communities in which we live and work, and provide career development opportunities for our global team members.

• We follow six competencies to accelerate growth through talent and culture.

This model leads with "People Forward," which focuses on the "employee experience," as we continue to build our diverse, equitable, and inclusive workplace.

We are proud that our DE&I efforts continue to be recognized.

The Human Rights Campaign awarded the Company a perfect score of 100 percent on its Corporate Equality Index for the third consecutive year.

We were also listed as one of the "Best Places to Work for LGBT Equality." DiversityInc deemed us a "Noteworthy Company," and we ranked eighth on DiversityInc’s "Top Companies for Philanthropy."

We aim to grow, learn, and shape our approach to DE&I for the betterment of our workforce and the communities we serve.

To that end, our Board of Directors continues to believe that DE&I is an important cornerstone of our culture and competitive advantage and, through its Governance, Sustainability & Corporate Responsibility Committee, plans to continue monitoring our DE&I practices and performance.

Competitive Compensation and Benefits

We offer all full-time team members a comprehensive benefit and compensation package, which includes:

• Medical, dental, and vision care, life insurance and other income protection, a retirement plan with Company match, and a discount employee stock purchase program;

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• An employee assistance program with free counseling sessions and unlimited digital mental health support, tuition assistance (including scholarships for dependents), medical coverage for same and opposite gender domestic partners, holidays, and paid time off;

• Infertility coverage and family building counseling services, as well as reimbursement for adoption expenses;

• Counseling and education guidance benefits to support the needs of team members and dependents with developmental and cognitive challenges;

• A minimum of eight weeks of paid parental leave following birth, adoption, or surrogacy for both parents.

We offer postpartum support and return-to-work assistance, including on-site lactation rooms and flexible work arrangements, such as flex hours.

For nursing moms who travel for work, we offer a service to ship breast milk back to their homes.

We also offer back-up child and elder care, plus discounts on services, such as childcare, saving for college, and tutoring.

Beginning in 2022, we will offer one week of paid caregiver leave to care for a family member who has a serious health condition.

We also believe it is important to invest in the health and wellness of our team members.

Our myWellbeing program focuses on the physical, emotional, financial, and social aspects of wellness.

Team members can earn points towards a reduction in health insurance premium costs by completing activities, such as monthly challenges, financial training, and getting preventive exams and screenings.

We also offer diabetes, weight management, and musculoskeletal programs for team members and their dependents.

To help team members navigate the often-confusing healthcare system, we provide a navigation and advocacy service to assist in finding the right care, obtaining a medical second opinion, and dealing with confusing medical bills.

Safety and COVID-19

We are focused on the safety and wellbeing of our team members.

In addition to utilizing a peer-to-peer safety program, we regularly convene our company leaders to review and evaluate safety data and issue operational excellence scorecards.

Distribution center team members receive training on proper safety procedures and incentive opportunities, with safety performance tracked and shared across the organization.

In connection with prioritizing safety, we have also implemented numerous safety precautions in response to the ongoing COVID-19 pandemic, such as mandatory health and temperature monitoring, face coverings and social distancing requirements, supplying personal protective equipment, enhanced cleaning and access to sanitizing supplies, and remote work options where available.

As the COVID-19 pandemic continues to evolve, we plan to continue to monitor and look for ways to enhance our safety protocols.

To further support our team members during the COVID-19 pandemic, we enhanced our benefit offerings (which are discussed above) to provide greater access to mental health telemedicine, additional paid time off for those needing to self-quarantine or care for a family member, and access to mindfulness videos and other wellness resources.

Additionally, team members whose household income was impacted, such as by a spouse experiencing job loss, were offered financial support through the AmerisourceBergen Associate Assistance Fund.

Government Regulation

We are subject to extensive oversight by various federal and state governmental entities and we are subject to, and affected by, a variety of federal and state laws, regulations, and policies.

We are subject to extensive oversight by United States, United Kingdom and European Union governmental entities and we are subject to, and affected by, a variety of laws, regulations, and policies.

Drug Enforcement Administration ("DEA"), the U.S.

Food and Drug Administration ("FDA"), the U.S.

Department of Justice ("DOJ"), and various other federal and state authorities regulate the purchase, storage, and/or distribution of pharmaceutical products, including controlled substances.

Department of Justice, and various other federal and state authorities regulate the purchase, storage, and/or distribution of pharmaceutical products, including controlled substances.

Wholesale distributors of controlled substances must hold valid DEA licenses, meet various security and operating standards, and comply with regulations governing the sale, marketing, packaging, holding, and distribution of controlled substances.

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The fraud and abuse laws and regulations are broad in scope and are subject to frequent and varied interpretation.

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In recent years, some states have passed or proposed laws and regulations that are intended to protect the safety of the pharmaceutical supply channel.

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At the federal level, the supply chain security legislation known as the Drug Quality and Security Act ("DQSA") became law in 2013.

The DQSA establishes federal traceability standards requiring drugs to be labeled and tracked at the lot level, preempts state drug pedigree requirements, and will require all supply-chain stakeholders to participate in an electronic, interoperable prescription drug traceability system.

The DQSA establishes federal traceability standards requiring drugs to be labeled and tracked at the lot level, preempts state drug pedigree requirements, and requires all supply-chain stakeholders to participate in an electronic, interoperable prescription drug traceability system.

The DQSA also establishes requirements for drug wholesale distributors and third-party logistics providers, including licensing requirements applicable in states that had not previously licensed third-party logistics providers.

We expect that the FDA, and eventually comparable state agencies, will promulgate implementing regulations governing wholesale distributor and third-party logistics providers.

We expect that the FDA, and eventually all comparable state agencies, will promulgate implementing regulations governing wholesale distributor and third-party logistics providers.

To date, many states have created third-party logistics licensing categories aligned with the DQSA.

There can be no assurance that we are fully compliant with the DQSA requirements, or with additional related state regulatory and licensing requirements, and any failure to comply may result in suspension or delay of certain operations and additional costs to bring our operations into compliance.

These and other requirements will continue to increase the cost of our operations.

The regulation of public and private health insurance and benefit programs can also affect our business and scrutiny of the healthcare delivery and reimbursement systems in the United States can be expected to continue at both the state and federal levels.

The regulation of public and private health insurance and benefit programs can also affect our business and scrutiny of the healthcare delivery and reimbursement systems in the United States, including those related to the importation and reimportation of certain drugs from foreign markets, can be expected to continue at both the state and federal levels.

This process may result in additional legislation and/or regulation governing the production, delivery, or pricing of pharmaceutical products and other healthcare services.

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Some of our businesses collect, maintain, and/or access other personal information (including sensitive personal information) that is subject to federal and state laws protecting such information, in addition to the requirements of HIPAA, the HITECH Act, and the implementing regulations.

Personally identifiable information is also highly regulated in many other countries in which we operate.

As such regulations continue to evolve, we must comply with applicable privacy and security requirements of these countries, including but not limited to those in the European Union.

Most notably certain aspects of our business are subject to the European Union's General Data Protection Regulation ("GDPR") which became effective on May 25, 2018, the California Consumer Protection Act ("CCPA"), which became effective on January 1, 2020, and Brazil's new General Data Protection Law (Lei Geral de Proteção de Dados Pessoais) – Law No.

Personal information is also highly regulated in many other countries in which we operate and many of these law place restrictions on the transfer of personal information to other jurisdictions.

As such regulations continue to evolve, we must comply with applicable privacy and security requirements of these countries, including

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but not limited to those in the European Union and the United Kingdom.

Most notably certain aspects of our business are subject to the European Union's General Data Protection Regulation ("GDPR") which became effective on May 25, 2018, the UK GDPR and the UK Data Protection Act of 2018, the California Consumer Protection Act ("CCPA"), which became effective on January 1, 2020, and Brazil's new General Data Protection Law (Lei Geral de Proteção de Dados Pessoais) – Law No.

13,709/208 ("LGPD") which became effective in August 2020.

On November 3, 2020, the California Privacy Rights Act of 2020, which builds on the CCPA, was enacted through a ballot initiative.

Similarly, Virginia (the Virginia Consumer Data Protection Act, effective on January 1, 2023) and Colorado (the Colorado Privacy Act, with certain initial compliance required by July 1, 2023) have also enacted similarly situated data protection laws.

Other states and countries continue to enact similar legislation.

We have implemented a privacy and information security compliance program to facilitate our ongoing efforts to comply with the applicable privacy laws and regulations.

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Our electronic filings with the Securities and Exchange Commission (including all Forms 10-K, 10-Q, and 8-K, and any amendments to these reports) are available free of charge through our website at investor.amerisourcebergen.com immediately after we electronically file with or furnish them to the Securities and Exchange Commission and may also be viewed using their website at www.sec.gov .

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business