OPERATING AND REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Operating and Reportable Segments

OPERATING AND REPORTABLE SEGMENTS

Following the sale of substantially all of the Company’s Home Health Services segment on March 31, 2014, the Company’s operating and reportable segments, “Infusion Services,” and “PBM Services,” reflect how the Company’s chief operating decision maker reviews the Company’s results in terms of allocating resources and assessing performance. All prior period Segment Operating Results and Supplementary Data have been reclassified to exclude the Home Health Services segment.

The Infusion Services operating and reportable segment provides services consisting of home infusion therapy, respiratory therapy and the provision of durable medical equipment, products and services. Infusion services include the dispensing and administering of infusion-based drugs, which typically require nursing support and clinical management services, equipment to administer the correct dosage and patient training designed to improve patient outcomes.

The PBM Services operating and reportable segment consists of PBM services, which primarily consists of discount card programs. The discount card programs provide a cost effective alternative for individuals who may be uninsured, underinsured or may have restrictive coverage that disallows reimbursement for certain medications. Under these discount programs, individuals who present a discount card at one of the Company’s participating network pharmacies receive prescription medications at a discounted price compared to the retail price. In addition, in the Company’s capacity as a pharmacy benefit manager, it has fully funded prescription benefit programs where the Company reimburses its network pharmacies and third party payors in turn reimburse the Company based on Medi-Span reported pricing for those claims fulfilled for their plan participants.

The Company’s chief operating decision maker evaluates segment performance and allocates resources based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as income (loss) from continuing operations, net of income taxes adjusted for net interest expense, income tax expense (benefit), depreciation, amortization of intangibles and stock-based compensation expense and prior to the allocation of certain corporate expenses. Segment Adjusted EBITDA excludes acquisition, integration and transitional expenses; restructuring and other expense; and other expenses related to the Company’s strategic assessment. Segment Adjusted EBITDA also excludes the operating losses of start-up branch locations that the Company has invested in organically rather than through acquisition. Segment Adjusted EBITDA is a measure of earnings that management monitors as an important indicator of operating and financial performance. The accounting policies of the operating and reportable segments are consistent with those described in the Company's summary of significant accounting policies.

Segment Reporting Information (in thousands)
	Year Ended December 31,
	2014			2013			2012
Results of Operations:
Revenue:
Infusion Services - product revenue	$	901,653		$	675,684		$	471,506
Infusion Services - service revenue	21,001			21,182			10,080
Total Infusion Services revenue	922,654			696,866			481,586
PBM Services - service revenue	61,401			72,592			111,861
Total revenue	$	984,055		$	769,458		$	593,447
Adjusted EBITDA by Segment before corporate overhead:
Infusion Services	$	6,501		$	60,686		$	35,421
PBM Services	6,731			17,094			25,644
Total Segment Adjusted EBITDA	13,232			77,780			61,065
Corporate overhead	(36,264		)	(32,042		)	(26,755		)
Interest expense, net	(38,539		)	(28,198		)	(26,068		)
Loss on extinguishment of debt	(2,373		)	(15,898		)	—
Income tax benefit (expense)	(11,391		)	(2,523		)	7,117
Depreciation	(16,388		)	(13,381		)	(8,367		)
Amortization of intangibles	(6,555		)	(6,671		)	(3,957		)
Stock-based compensation expense	(8,570		)	(9,450		)	(6,122		)
Acquisition and integration expenses	(17,924		)	(16,130		)	(4,046		)
Restructuring and other expenses and investments	(18,610		)	(10,478		)	(5,142		)
Loss from continuing operations, net of income taxes	$	(143,382	)	$	(56,991	)	$	(12,275	)

Segment Reporting Information (continued) (in thousands)
	Year Ended December 31,
	2014		2013		2012
Supplemental Operating Data:
Capital Expenditures:
Infusion Services	$	9,754	$	15,972	$	6,685
PBM Services	—		—		—
Corporate unallocated	4,075		9,553		3,973
Total Capital Expenditures	$	13,829	$	25,525	$	10,658
Depreciation Expense:
Infusion Services	$	10,203	$	8,541	$	4,312
PBM Services	—		—		—
Corporate unallocated	6,185		4,840		4,055
Total Depreciation Expense	$	16,388	$	13,381	$	8,367
Total Assets:
Infusion Services	$	755,955	$	793,475	$	438,171
PBM Services	29,147		25,239		36,354
Corporate unallocated	39,611		53,169		95,423
Assets from discontinued operations	—		64,959		63,245
Assets associated with discontinued operations, not sold	—		16		9,183
Total Assets	$	824,713	$	936,858	$	642,376
Goodwill:
Infusion Services	$	560,579	$	558,593	$	304,282
PBM Services	12,744		12,744		12,744
Total Goodwill	$	573,323	$	571,337	$	317,026