
	For the Quarter Ended
	March 31,		June 30,		September 30,		December 31,
	2016		2016		2016		2016
Year Ended December 31, 2016
Net revenue:
Managed care and other	$	676,461	$	699,861	$	751,589	$	775,031
PBM and dispensing		440,561		464,484		540,543		488,354
Total net revenue		1,117,022		1,164,345		1,292,132		1,263,385
Costs and expenses:
Cost of care		457,631		472,529		480,243		472,211
Cost of goods sold		415,459		436,930		509,673		456,658
Direct service costs and other operating expenses (1) (2) (3)		192,456		214,077		229,094		240,985
Depreciation and amortization		25,007		25,580		26,885		28,574
Interest expense		1,748		1,994		3,038		3,413
Interest and other income		(683)		(692)		(741)		(702)
Total costs and expenses		1,091,618		1,150,418		1,248,192		1,201,139
Income before income taxes		25,404		13,927		43,940		62,246
Provision for income taxes		12,013		12,615		18,631		26,469
Net income		13,391		1,312		25,309		35,777
Less: net income (loss) attributable to non-controlling interest		154		(2,646)		(200)		602
Net income attributable to Magellan	$	13,237	$	3,958	$	25,509	$	35,175
Weighted average number of common shares outstanding—basic		23,631		23,516		23,052		22,556
Weighted average number of common shares outstanding—diluted		24,511		24,643		24,009		23,493
Net income per common share attributable to Magellan:
Net income per common share—basic:	$	0.56	$	0.17	$	1.11	$	1.56
Net income per common share—diluted:	$	0.54	$	0.16	$	1.06	$	1.50


	For the Quarter Ended
	March 31,		June 30,		September 30,		December 31,
	2017		2017		2017		2017
Year Ended December 31, 2017
Net revenue:
Managed care and other	$	729,340	$	821,699	$	834,358	$	1,093,785
PBM and dispensing		576,283		597,440		585,048		600,630
Total net revenue		1,305,623		1,419,139		1,419,406		1,694,415
Costs and expenses:
Cost of care		482,054		583,264		569,306		779,146
Cost of goods sold		542,633		562,355		543,682		563,240
Direct service costs and other operating expenses (4) (5)		221,486		231,372		227,372		261,653
Depreciation and amortization		26,976		27,731		28,189		32,810
Interest expense		4,148		4,900		7,663		9,266
Interest and other income		(949)		(1,071)		(1,781)		(2,086)
Total costs and expenses		1,276,348		1,408,551		1,374,431		1,644,029
Income before income taxes		29,275		10,588		44,975		50,386
Provision (benefit) for income taxes		11,806		5,661		11,739		(4,123)
Net income		17,469		4,927		33,236		54,509
Less: net income (loss) attributable to non-controlling interest		(278)		(573)		785		—
Net income attributable to Magellan	$	17,747	$	5,500	$	32,451	$	54,509
Weighted average number of common shares outstanding—basic		23,012		23,108		23,282		23,921
Weighted average number of common shares outstanding—diluted		24,038		24,038		24,563		25,113
Net income per common share attributable to Magellan:
Net income per common share—basic:	$	0.77	$	0.24	$	1.39	$	2.28
Net income per common share—diluted:	$	0.74	$	0.23	$	1.32	$	2.17

(1)

Includes stock compensation expense of $8,887, $9,510, $9,176 and $9,849 for the quarters ended March 31, June 30, September 30 and December 31, 2016, respectively.

(2)

Includes changes in fair value of contingent consideration of $(266), $463, $313 and $(614) for the quarters ended March 31, June 30, September 30 and December 31, 2016, respectively.

(3)

Includes impairment of intangible assets of $4,800 for the quarter ended June 30, 2016.

(4)

Includes stock compensation expense of $10,140, $11,371, $10,323 and $7,282 for the quarters ended March 31, June 30, September 30 and December 31, 2017, respectively.

(5)

Includes changes in fair value of contingent consideration of $(49), $252, $(834) and $1,327 for the quarters ended March 31, June 30, September 30 and December 31, 2017, respectively.