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Business Segment Information (Tables)
 3 Months Ended
Mar. 31, 2017
Business Segment Information  
Schedule of operating results by business segment

The following tables summarize, for the periods indicated, operating results by business segment (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

618,928

 

$

57,577

 

$

(44)

 

$

676,461

 

PBM and dispensing revenue

 

 

 —

 

 

470,234

 

 

(29,673)

 

 

440,561

 

Cost of care

 

 

(457,631)

 

 

 —

 

 

 —

 

 

(457,631)

 

Cost of goods sold

 

 

 —

 

 

(443,949)

 

 

28,490

 

 

(415,459)

 

Direct service costs and other

 

 

(125,617)

 

 

(60,841)

 

 

(5,998)

 

 

(192,456)

 

Stock compensation expense (1)

 

 

2,019

 

 

5,422

 

 

1,446

 

 

8,887

 

Changes in fair value of contingent consideration (1)

 

 

(320)

 

 

54

 

 

 —

 

 

(266)

 

Less: non-controlling interest segment profit (loss) (2)

 

 

169

 

 

 —

 

 

(4)

 

 

165

 

Segment profit (loss)

 

$

37,210

 

$

28,497

 

$

(5,775)

 

$

59,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Three Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

665,376

 

$

64,180

 

$

(216)

 

$

729,340

 

PBM and dispensing revenue

 

 

 —

 

 

606,746

 

 

(30,463)

 

 

576,283

 

Cost of care

 

 

(482,054)

 

 

 —

 

 

 —

 

 

(482,054)

 

Cost of goods sold

 

 

 —

 

 

(571,837)

 

 

29,204

 

 

(542,633)

 

Direct service costs and other

 

 

(138,968)

 

 

(75,853)

 

 

(6,665)

 

 

(221,486)

 

Stock compensation expense (1)

 

 

2,659

 

 

5,730

 

 

1,751

 

 

10,140

 

Changes in fair value of contingent consideration (1)

 

 

(49)

 

 

 —

 

 

 —

 

 

(49)

 

Less: non-controlling interest segment profit (loss) (2)

 

 

(277)

 

 

 —

 

 

(1)

 

 

(278)

 

Segment profit (loss)

 

$

47,241

 

$

28,966

 

$

(6,388)

 

$

69,819

 

(1)

Stock compensation expense and changes in the fair value of contingent consideration recorded in relation to the acquisitions are included in direct service costs and other operating expenses; however, these amounts are excluded from the computation of Segment Profit.

(2)

The non‑controlling portion of AlphaCare’s segment profit (loss) is excluded from the computation of Segment Profit.

 

Schedule of reconciliation of Segment Profit to income before income taxes

The following table reconciles income before income taxes to Segment Profit (in thousands):

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 

 

 

 

    

2016

    

2017

    

 

Income before income taxes

 

$

25,404

 

$

29,275

 

 

Stock compensation expense

 

 

8,887

 

 

10,140

 

 

Changes in fair value of contingent consideration

 

 

(266)

 

 

(49)

 

 

Non-controlling interest segment profit (loss)

 

 

(165)

 

 

278

 

 

Depreciation and amortization

 

 

25,007

 

 

26,976

 

 

Interest expense

 

 

1,748

 

 

4,148

 

 

Interest and other income

 

 

(683)

 

 

(949)

 

 

Segment Profit

 

$

59,932

 

$

69,819