11. Selected Quarterly Financial Data (Unaudited)

The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and 2018 (in thousands, except per share amounts):


	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 (1) (2) (3)		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


	For the Quarter Ended
	March 31,		June 30,		September 30,		December 31,
	2018		2018		2018		2018
Year Ended December 31, 2018
Net revenue:
Managed care and other	$	1,219,763	$	1,215,340	$	1,235,787	$	1,207,552
PBM and dispensing		585,314		595,583		617,719		637,093
Total net revenue		1,805,077		1,810,923		1,853,506		1,844,645
Costs and expenses:
Cost of care		928,661		935,814		938,031		959,906
Cost of goods sold		559,665		558,419		571,145		593,793
Direct service costs and other operating expenses (3)(4)		269,077		259,152		265,471		277,835
Depreciation and amortization		30,407		33,848		33,047		35,358
Interest expense		8,366		8,678		8,990		9,362
Interest and other income		(2,476)		(3,363)		(4,139)		(4,090)
Total costs and expenses		1,793,700		1,792,548		1,812,545		1,872,164
Income (loss) before income taxes		11,377		18,375		40,961		(27,519)
(Benefit) provision for income taxes		(75)		4,824		13,816		448
Net income (loss) attributable to Magellan		11,452		13,551		27,145		(27,967)
Weighted average number of common shares outstanding—basic		24,349		24,569		24,433		24,048
Weighted average number of common shares outstanding—diluted		25,612		25,407		24,928		24,048
Net income (loss) per common share attributable to Magellan:
Net income (loss) per common share—basic:	$	0.47	$	0.55	$	1.11	$	(1.16)
Net income (loss) per common share—diluted:	$	0.45	$	0.53	$	1.09	$	(1.16)

(1)

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.

(2)

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.

(3)

Includes stock compensation expense of $7,646, $10,439, $9,320 and $2,067 for the quarters ended March 31, June 30, September 30 and December 31, 2018, respectively.

(4)

Includes changes in fair value of contingent consideration of $233, $70, $148 and $856 for the quarters ended March 31, June 30, September 30 and December 31, 2018, respectively.