Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

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, 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

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Three Months Ended March 31, 2020
Managed care and other revenue	$	1,208,674	$	64,435	$	(173)	$	1,272,936
PBM revenue		—		573,778		(52,407)		521,371
Cost of care		(951,642)		—		—		(951,642)
Cost of goods sold		—		(537,574)		51,432		(486,142)
Direct service costs and other		(196,909)		(81,866)		(8,956)		(287,731)
Stock compensation expense (1)		2,021		2,107		1,929		6,057
Changes in fair value of contingent consideration (1)				—		—		—
Segment Profit (Loss)	$	62,144	$	20,880	$	(8,175)	$	74,849

(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,
	2019		2020
Income before income taxes	$	970	$	34,838
Stock compensation expense		9,607		6,057
Changes in fair value of contingent consideration		144		—
Depreciation and amortization		30,708		28,684
Interest expense		9,107		9,029
Interest and other income		(4,974)		(3,759)
Segment Profit	$	45,562	$	74,849