XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Business Segment Information (Tables)
 9 Months Ended
Sep. 30, 2018
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 September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

769,451

 

$

65,131

 

$

(224)

 

$

834,358

 

PBM revenue

 

 

 —

 

 

618,178

 

 

(33,130)

 

 

585,048

 

Cost of care

 

 

(569,306)

 

 

 —

 

 

 —

 

 

(569,306)

 

Cost of goods sold

 

 

 —

 

 

(575,327)

 

 

31,645

 

 

(543,682)

 

Direct service costs and other

 

 

(143,550)

 

 

(74,976)

 

 

(8,846)

 

 

(227,372)

 

Stock compensation expense (1)

 

 

2,623

 

 

5,680

 

 

2,020

 

 

10,323

 

Changes in fair value of contingent consideration (1)

 

 

(834)

 

 

 —

 

 

 —

 

 

(834)

 

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

 

 

789

 

 

 —

 

 

(1)

 

 

788

 

Segment profit (loss)

 

$

57,595

 

$

38,686

 

$

(8,534)

 

$

87,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Three Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

1,176,439

 

$

59,500

 

$

(152)

 

$

1,235,787

 

PBM revenue

 

 

 —

 

 

665,734

 

 

(48,015)

 

 

617,719

 

Cost of care

 

 

(938,031)

 

 

 —

 

 

 —

 

 

(938,031)

 

Cost of goods sold

 

 

 —

 

 

(618,463)

 

 

47,318

 

 

(571,145)

 

Direct service costs and other

 

 

(179,022)

 

 

(74,491)

 

 

(11,958)

 

 

(265,471)

 

Stock compensation expense (1)

 

 

2,165

 

 

1,359

 

 

5,796

 

 

9,320

 

Changes in fair value of contingent consideration (1)

 

 

148

 

 

 —

 

 

 —

 

 

148

 

Segment profit (loss)

 

$

61,699

 

$

33,639

 

$

(7,011)

 

$

88,327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

2,190,097

 

$

195,970

 

$

(670)

 

$

2,385,397

 

PBM revenue

 

 

 —

 

 

1,856,856

 

 

(98,085)

 

 

1,758,771

 

Cost of care

 

 

(1,634,624)

 

 

 —

 

 

 —

 

 

(1,634,624)

 

Cost of goods sold

 

 

 —

 

 

(1,742,610)

 

 

93,940

 

 

(1,648,670)

 

Direct service costs and other

 

 

(428,432)

 

 

(225,782)

 

 

(26,016)

 

 

(680,230)

 

Stock compensation expense (1)

 

 

8,388

 

 

17,094

 

 

6,352

 

 

31,834

 

Changes in fair value of contingent consideration (1)

 

 

(631)

 

 

 —

 

 

 —

 

 

(631)

 

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

 

 

(56)

 

 

 —

 

 

(3)

 

 

(59)

 

Segment profit (loss)

 

$

134,854

 

$

101,528

 

$

(24,476)

 

$

211,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Nine Months Ended September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

3,488,928

 

$

182,410

 

$

(448)

 

$

3,670,890

 

PBM revenue

 

 

 —

 

 

1,940,726

 

 

(142,110)

 

 

1,798,616

 

Cost of care

 

 

(2,802,506)

 

 

 —

 

 

 —

 

 

(2,802,506)

 

Cost of goods sold

 

 

 —

 

 

(1,827,327)

 

 

138,098

 

 

(1,689,229)

 

Direct service costs and other

 

 

(543,258)

 

 

(221,018)

 

 

(29,424)

 

 

(793,700)

 

Stock compensation expense (1)

 

 

7,857

 

 

4,252

 

 

15,296

 

 

27,405

 

Changes in fair value of contingent consideration (1)

 

 

451

 

 

 —

 

 

 —

 

 

451

 

Segment profit (loss)

 

$

151,472

 

$

79,043

 

$

(18,588)

 

$

211,927

 

 

(1)

Stock compensation expense, changes in the fair value of contingent consideration recorded in relation to acquisitions and impairment of intangible assets 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

 

Nine Months Ended

 

 

 

 

September 30, 

 

September 30, 

 

 

 

 

2017

    

2018

    

2017

    

2018

    

 

Income before income taxes

 

$

44,975

 

$

40,961

 

$

84,838

 

$

70,713

 

 

Stock compensation expense

 

 

10,323

 

 

9,320

 

 

31,834

 

 

27,405

 

 

Changes in fair value of contingent consideration

 

 

(834)

 

 

148

 

 

(631)

 

 

451

 

 

Non-controlling interest segment (profit) loss

 

 

(788)

 

 

 —

 

 

59

 

 

 —

 

 

Depreciation and amortization

 

 

28,189

 

 

33,047

 

 

82,896

 

 

97,302

 

 

Interest expense

 

 

7,663

 

 

8,990

 

 

16,711

 

 

26,034

 

 

Interest and other income

 

 

(1,781)

 

 

(4,139)

 

 

(3,801)

 

 

(9,978)

 

 

Segment Profit

 

$

87,747

 

$

88,327

 

$

211,906

 

$

211,927