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OPERATING AND REPORTABLE SEGMENTS
 6 Months Ended
Jun. 30, 2015
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.

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, impairments 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)
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
2015
 
2014
Results of Operations:
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
Infusion Services - product revenue
$
241,020

 
$
225,277

 
$
480,067

 
$
441,180

Infusion Services - service revenue
5,957

 
5,271

 
11,187

 
10,437

Total Infusion Services revenue
246,977

 
230,548

 
491,254

 
451,617

PBM Services - service revenue
15,386

 
16,577

 
32,790

 
34,801

Total revenue
$
262,363

 
$
247,125

 
$
524,044

 
$
486,418

 
 
 
 
 
 
 
 
Adjusted EBITDA by Segment before corporate overhead:
 
 
 

 
 
 
 

Infusion Services
$
4,140

 
$
16,194

 
$
16,839

 
$
31,155

PBM Services
1,737

 
1,837

 
3,126

 
3,512

Total Segment Adjusted EBITDA
5,877

 
18,031

 
19,965

 
34,667

Corporate overhead
(8,411
)
 
(7,016
)
 
(16,179
)
 
(14,492
)
Consolidated Adjusted EBITDA
(2,534
)
 
11,015

 
3,786

 
20,175

Interest expense, net
(9,080
)
 
(9,135
)
 
(18,243
)
 
(19,634
)
Loss on sale of assets
(628
)
 


 
(628
)
 
—

Income tax (expense) benefit
19,921

 
(3,063
)
 
17,993

 
(6,554
)
Depreciation
(4,130
)
 
(3,958
)
 
(8,434
)
 
(7,794
)
Amortization of intangibles
(1,489
)
 
(1,620
)
 
(2,979
)
 
(3,323
)
Impairment of goodwill
(238,000
)
 
—

 
(238,000
)
 
—

Stock-based compensation expense
(1,162
)
 
(1,998
)
 
(2,819
)
 
(4,884
)
Acquisition and integration expenses
(259
)
 
(5,333
)
 
(479
)
 
(11,832
)
Restructuring and other expenses
(5,803
)
 
(4,519
)
 
(9,266
)
 
(10,021
)
Loss from continuing operations, net of income taxes
$
(243,164
)
 
$
(18,611
)
 
$
(259,069
)
 
$
(43,867
)


Supplemental Operating Data
 
 
 
 
June 30,
2015
 
December 31,
2014
Total Assets:
 
 
 
Infusion Services
$
510,566

 
$
755,955

PBM Services
26,702

 
29,147

Corporate unallocated, including cash and cash equivalents
39,881

 
39,611

Total Assets
$
577,149

 
$
824,713