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Segment Information
6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Information

The Company is organized in two operating segments, LTC and Specialty Care Group (“SCG”). These segments are based on the operations of the underlying businesses and the customers they serve. The Company's larger reportable segment is LTC, which primarily provides distribution of pharmaceuticals, related pharmacy consulting and other ancillary services, as well as end-of-life pharmaceutical care management. LTC's customers are primarily skilled nursing, assisted living and other providers of healthcare services including hospice care agencies. The Company’s other reportable segment is SCG, which provides specialty pharmacy and key commercialization services for the biopharmaceutical industry. The primary components of the "Corporate/Other" segment are the Company's corporate management oversight and administration, including its information technology and data management services, as well as other consolidating and eliminating entries, which have not been charged to reportable segments. Beginning in the second quarter of 2013, the Company concluded that the operations of its hospice pharmacy business were better aligned with the operation of its LTC, and began to review and manage the operations of this business as part of LTC. Accordingly, to align the reporting segments with the current way management reviews information to make operating decisions, assess performance and allocate resources, the results of the Company's hospice business are now reported in LTC. All prior period segment information has been recast to reflect the new segment reporting. The Company evaluates the performance of its segments based on revenue and operating income, and does not include segment assets or nonoperating income/expense items for management reporting purposes.
 
 
For the three months ended June 30,
2013:
 
LTC
 
SCG
 
Corporate/Other
 
Consolidated
Totals
Net sales
 
$
1,222,352

 
$
347,006

 
$
539

 
$
1,569,897

Depreciation and amortization expense
 
(19,673
)
 
(1,146
)
 
(14,507
)
 
(35,326
)
Settlement, litigation and other related charges
 
(3,512
)
 

 

 
(3,512
)
Other charges
 
(30,549
)
 

 
(719
)
 
(31,268
)
Operating income (loss)
 
131,049

 
29,887

 
(46,300
)
 
114,636

2012:
 
 
 
 
 
 
 
 
Net sales
 
$
1,254,873

 
$
278,065

 
$
3,089

 
$
1,536,027

Depreciation and amortization expense
 
(19,359
)
 
(2,280
)
 
(13,204
)
 
(34,843
)
Settlement, litigation and other related charges
 
(25,893
)
 
(200
)
 

 
(26,093
)
Other charges
 
(2,117
)
 

 
(47,092
)
 
(49,209
)
Operating income (loss)
 
130,102

 
24,370

 
(88,384
)
 
66,088

 
 
 
 
 
 
 
 
 
 
 
For the six months ended June 30,
2013:
 
LTC
 
SCG
 
Corporate/Other
 
Consolidated
Totals
Net sales
 
$
2,426,087

 
$
667,643

 
$
1,170

 
$
3,094,900

Depreciation and amortization expense
 
(39,428
)
 
(2,257
)
 
(27,363
)
 
(69,048
)
Settlement, litigation and other related charges
 
(26,131
)
 

 

 
(26,131
)
Other charges
 
(33,301
)
 

 
(1,973
)
 
(35,274
)
Operating income (loss)
 
267,781

 
60,852

 
(95,850
)
 
232,783

2012:
 
 
 
 
 
 
 
 
Net sales
 
$
2,604,289

 
$
518,164

 
$
6,642

 
$
3,129,095

Depreciation and amortization expense
 
(37,777
)
 
(4,472
)
 
(25,055
)
 
(67,304
)
Settlement, litigation and other related charges
 
(33,096
)
 
(200
)
 

 
(33,296
)
Other charges
 
(11,129
)
 

 
(49,592
)
 
(60,721
)
Operating income (loss)
 
274,922

 
47,678

 
(131,682
)
 
190,918