The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2014 and 2015 (in thousands, except per share amounts):

	For the Quarter Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014
Fiscal Year Ended December 31, 2014
Net revenue:
Managed care and other	$	829,591		$	682,274		$	703,020		$	753,489
PBM and dispensing		136,884			205,740			220,150			228,970

Total net revenue		966,475			888,014			923,170			982,459

Costs and expenses:
Cost of care		605,708			481,617			495,180			506,090
Cost of goods sold		125,298			192,566			202,180			212,905
Direct service costs and other operating expenses(1)(2)		164,722			179,034			176,928			202,814
Depreciation and amortization		20,229			22,480			23,956			24,405
Interest expense		836			2,004			2,879			1,668
Interest and other income		(311	)		(275	)		(241	)		(474	)

Total costs and expenses		916,482			877,426			900,882			947,408

Income before income taxes		49,993			10,588			22,288			35,051
Provision for income taxes		25,613			6,261			(3,490	)		15,305

Net income		24,380			4,327			25,778			19,746
Less: net income (loss) attributable to non-controlling interest		(1,340	)		(659	)		(1,355	)		(1,819	)

Net income attributable to Magellan Health, Inc.	$	25,720		$	4,986		$	27,133		$	21,565


Weighted average number of common shares outstanding—basic		27,370			27,144			26,703			25,558


Weighted average number of common shares outstanding—diluted		28,051			27,765			27,242			26,382


Net income per common share attributable to Magellan Health, Inc.:
Net income per common share—basic:	$	0.94		$	0.18		$	1.02		$	0.84


Net income per common share—diluted:	$	0.92		$	0.18		$	1.00		$	0.82

	For the Quarter Ended
	March 31, 2015			June 30, 2015			September 30, 2015			December 31, 2015
Fiscal Year Ended December 31, 2015
Net revenue:
Managed care and other	$	748,650		$	776,240		$	809,249		$	863,506
PBM and dispensing		232,318			381,367			380,833			405,237

Total net revenue		980,968			1,157,607			1,190,082			1,268,743

Costs and expenses:
Cost of care		522,328			568,288			596,323			587,816
Cost of goods sold		218,207			361,409			360,444			381,817
Direct service costs and other operating expenses(3)(4)		204,450			191,455			220,586			205,901
Depreciation and amortization		23,496			25,022			26,721			27,605
Interest expense		1,626			1,653			1,654			1,648
Interest and other income		(466	)		(500	)		(631	)		(568	)

Total costs and expenses		969,641			1,147,327			1,205,097			1,204,219

Income (loss) before income taxes		11,327			10,280			(15,015	)		64,524
Provision (benefit) for income taxes		4,133			5,987			(7,254	)		39,543

Net income (loss)		7,194			4,293			(7,761	)		24,981
Less: net income (loss) attributable to non-controlling interest		(94	)		(350	)		47			(2,309	)

Net income (loss) attributable to Magellan Health, Inc.	$	7,288		$	4,643		$	(7,808	)	$	27,290


Weighted average number of common shares outstanding—basic		25,319			25,684			24,892			23,582


Weighted average number of common shares outstanding—diluted		26,399			26,776			24,892			24,402


Net income (loss) per common share attributable to Magellan Health, Inc.:
Net income (loss) per common share—basic:	$	0.29		$	0.18		$	(0.31	)	$	1.16


Net income (loss) per common share—diluted:	$	0.28		$	0.17		$	(0.31	)	$	1.12


(1)	Includes stock compensation expense of $4,472, $9,550, $11,961 and $14,601 for the quarters ended March 31, June 30, September 30 and December 31, 2014, respectively.
(2)	Includes changes in fair value of contingent consideration of $6,172 for the quarter ended December 31, 2014.
(3)	Includes stock compensation expense of $13,901, $13,795, $12,897 and $9,791 for the quarters ended March 31, June 30, September 30 and December 31, 2015, respectively.
(4)	Includes changes in fair value of contingent consideration of $14,969, $2,567, $29,738 and $(3,017) for the quarters ended March 31, June 30, September 30 and December 31, 2015, respectively.