Ownership percentage (more than)

  
    The following illustrates the components of diluted weighted average shares outstanding for the periods indicated:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three months endedJune 30, |  | Nine months endedJune 30, |
| (in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Weighted average common shares outstanding - basic |  | 208,885  |  |  | 206,156  |  |  | 208,895  |  |  | 205,255  |  |
| Dilutive effect of stock options and restricted stock units |  | 2,853  |  |  | 2,756  |  |  | 2,738  |  |  | 2,424  |  |
| Weighted average common shares outstanding - diluted |  | 211,738  |  |  | 208,912  |  |  | 211,633  |  |  | 207,679  |  |

There were no potentially dilutive stock options and restricted stock units that were antidilutive for the three months ended June 30, 2022 and 2021. The potentially dilutive stock options and restricted stock units that were antidilutive for the nine months ended June 30, 2022 and 2021 were 134 thousand and 129 thousand, respectively.Note 8. Related Party TransactionsWBA owns more than 10% of the Company’s outstanding common stock and is, therefore, considered a related party. The Company operates under various agreements and arrangements with WBA, including a pharmaceutical distribution agreement pursuant to which the Company distributes pharmaceutical products to WBA and an agreement that provides the Company the ability to access favorable economic pricing and generic products through a generic purchasing services arrangement with Walgreens Boots Alliance Development GmbH (both through 2029) as well as a distribution agreement pursuant to which it supplies branded and generic pharmaceutical products to WBA’s Boots UK Ltd. subsidiary (through 2031). Revenue from the various agreements and arrangements with WBA was $16.2 billion and $47.8 billion in the three and nine months ended June 30, 2022, respectively. Revenue from the various agreements and arrangements with WBA was $16.4 billion and $48.9 billion in the three and nine months ended June 30, 2021, respectively. The Company’s receivable from WBA, net of incentives, was $6.9 billion and $7.0 billion as of June 30, 2022 and September 30, 2021, respectively.Note 9. Employee Severance, Litigation, and Other    The following illustrates the charges incurred by the Company relating to Employee Severance, Litigation, and Other for the periods indicated:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Three months endedJune 30, |  | Nine months endedJune 30, |
| (in thousands) |  |  |  |  |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Employee severance |  |  |  |  |  | $ | 3,926  |  |  | $ | 6,720  |  |  | $ | 10,541  |  |  | $ | 6,720  |  |
| Litigation and opioid-related costs |  |  |  |  |  | 23,442  |  |  | 153,225  |  |  | 108,167  |  |  | 227,275  |  |
| Acquisition-related deal and integration costs |  |  |  |  |  | 36,570  |  |  | 54,674  |  |  | 69,710  |  |  | 97,149  |  |
| Business transformation efforts |  |  |  |  |  | 3,190  |  |  | 14,654  |  |  | 11,468  |  |  | 37,738  |  |
| Other restructuring initiatives |  |  |  |  |  | 742  |  |  | (2,309) |  |  | 9,348  |  |  | 6,619  |  |
|     Total employee severance, litigation, and other |  |  |  |  |  | $ | 67,870  |  |  | $ | 226,964  |  |  | $ | 209,234  |  |  | $ | 375,501  |  |

Employee severance in the three and nine months ended June 30, 2022 included costs primarily related to restructuring activities in the Company's manufacturer services businesses. Employee severance in the three and nine months ended June 30, 2021 primarily relate to restructuring activities in the International Healthcare Solutions businesses.Litigation and opioid-related costs in the three and nine months ended June 30, 2022 and 2021 related to legal fees in connection with opioid litigation lawsuits and investigations. The nine months ended June 30, 2022 also included an accrual of $36.6 million related to the opioid litigation settlements (see Note 10). Litigation and opioid-related costs in the three and nine months ended June 30, 2021 also included $124.3 million and $141.4 million, respectively, of accruals related to opioid litigation settlements.Acquisition-related deal and integration costs in the three and nine months ended June 30, 2022 primarily related to costs associated with the integration of Alliance Healthcare. Acquisition-related deal and integration costs in the three and nine months ended June 30, 2021 primarily related to costs associated with the June 2021 acquisition of Alliance Healthcare. Business transformation efforts in the three and nine months ended June 30, 2022 and 2021 primarily related to costs associated with reorganizing the Company to further align the organization to its customers' needs. The majority of these costs related to services provided by third-party consultants, including certain technology initiatives.  
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