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Business Segment Information (Tables)
 3 Months Ended
Mar. 31, 2019
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, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

1,157,601

 

$

62,307

 

$

(145)

 

$

1,219,763

 

PBM revenue

 

 

 —

 

 

632,198

 

 

(46,884)

 

 

585,314

 

Cost of care

 

 

(928,661)

 

 

 —

 

 

 —

 

 

(928,661)

 

Cost of goods sold

 

 

 —

 

 

(604,913)

 

 

45,248

 

 

(559,665)

 

Direct service costs and other

 

 

(186,246)

 

 

(75,586)

 

 

(7,245)

 

 

(269,077)

 

Stock compensation expense (1)

 

 

2,950

 

 

1,485

 

 

3,211

 

 

7,646

 

Changes in fair value of contingent consideration (1)

 

 

233

 

 

 —

 

 

 —

 

 

233

 

Segment Profit (Loss)

 

$

45,877

 

$

15,491

 

$

(5,815)

 

$

55,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Three Months Ended March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

1,164,253

 

$

59,895

 

$

(169)

 

$

1,223,979

 

PBM revenue

 

 

 —

 

 

556,565

 

 

(41,055)

 

 

515,510

 

Cost of care

 

 

(941,961)

 

 

 —

 

 

 —

 

 

(941,961)

 

Cost of goods sold

 

 

 —

 

 

(530,207)

 

 

40,414

 

 

(489,793)

 

Direct service costs and other

 

 

(179,190)

 

 

(79,635)

 

 

(13,099)

 

 

(271,924)

 

Stock compensation expense (1)

 

 

1,750

 

 

1,672

 

 

6,185

 

 

9,607

 

Changes in fair value of contingent consideration (1)

 

 

144

 

 

 —

 

 

 —

 

 

144

 

Segment Profit (Loss)

 

$

44,996

 

$

8,290

 

$

(7,724)

 

$

45,562

 

 

(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.
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, 

 

 

    

2018

    

2019

 

Income before income taxes

 

$

11,377

 

$

970

 

Stock compensation expense

 

 

7,646

 

 

9,607

 

Changes in fair value of contingent consideration

 

 

233

 

 

144

 

Depreciation and amortization

 

 

30,407

 

 

30,708

 

Interest expense

 

 

8,366

 

 

9,107

 

Interest and other income

 

 

(2,476)

 

 

(4,974)

 

Segment Profit

 

$

55,553

 

$

45,562