Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Schedule of operating results by business segment

The following tables summarize, for the periods indicated, operating results by business segment (in thousands):

	Commercial			Public Sector			Specialty Solutions			Pharmacy Management			Corporate and Elimination			Consolidated
Three Months Ended September 30, 2013
Managed care and other revenue	$	190,655		$	445,260		$	94,125		$	57,164		$	(17,091	)	$	770,113
PBM and dispensing revenue		—			—			—			103,485			—			103,485
Cost of care		(118,022	)		(382,913	)		(65,403	)		(15,290	)		17,091			(564,537	)
Cost of goods sold		—			—			—			(97,503	)		—			(97,503	)
Direct service costs and other		(47,032	)		(27,826	)		(13,990	)		(32,281	)		(35,705	)		(156,834	)
Stock compensation expense(1)		124			259			384			198			3,559			4,524

Segment profit (loss)	$	25,725		$	34,780		$	15,116		$	15,773		$	(32,146	)	$	59,248

	Commercial			Public Sector			Specialty Solutions			Pharmacy Management			Corporate and Elimination			Consolidated
Three Months Ended September 30, 2014
Managed care and other revenue	$	144,257		$	388,682		$	120,808		$	49,273		$	—		$	703,020
PBM and dispensing revenue		—			—			—			241,226			(21,076	)		220,150
Cost of care		(71,264	)		(337,128	)		(86,787	)		(1	)		—			(495,180	)
Cost of goods sold		—			—			—			(223,251	)		21,071			(202,180	)
Direct service costs and other		(37,513	)		(45,789	)		(17,843	)		(45,535	)		(30,248	)		(176,928	)
Stock compensation expense(1)		164			225			269			8,122			3,181			11,961
Less: non-controlling interest segment profit (loss)(2)		—			(1,323	)		—			—			—			(1,323	)

Segment profit (loss)	$	35,644		$	7,313		$	16,447		$	29,834		$	(27,072	)	$	62,166

	Commercial			Public Sector			Specialty Solutions			Pharmacy Management			Corporate and Elimination			Consolidated
Nine Months Ended September 30, 2013
Managed care and other revenue	$	578,030		$	1,266,739		$	277,118		$	166,092		$	(48,557	)	$	2,239,422
PBM and dispensing revenue		—			—			—			298,685			—			298,685
Cost of care		(354,520	)		(1,095,694	)		(182,212	)		(43,325	)		48,557			(1,627,194	)
Cost of goods sold		—			—			—			(281,190	)		—			(281,190	)
Direct service costs and other		(129,823	)		(82,403	)		(41,224	)		(93,216	)		(94,292	)		(440,958	)
Stock compensation expense(1)		390			833			1,275			898			11,368			14,764

Segment profit (loss)	$	94,077		$	89,475		$	54,957		$	47,944		$	(82,924	)	$	203,529

	Commercial			Public Sector			Specialty Solutions			Pharmacy Management			Corporate and Elimination			Consolidated
Nine Months Ended September 30, 2014
Managed care and other revenue	$	531,173		$	1,206,579		$	345,568		$	149,620		$	(18,055	)	$	2,214,885
PBM and dispensing revenue		—			—			—			590,115			(27,341	)		562,774
Cost of care		(299,318	)		(1,034,754	)		(250,192	)		(16,296	)		18,055			(1,582,505	)
Cost of goods sold		—			—			—			(547,362	)		27,318			(520,044	)
Direct service costs and other		(120,319	)		(134,138	)		(50,881	)		(122,691	)		(92,655	)		(520,684	)
Stock compensation expense(1)		476			729			1,037			13,981			9,760			25,983
Less: non-controlling interest segment profit (loss)(2)		—			(3,301	)		—			—			—			(3,301	)

Segment profit (loss)	$	112,012		$	41,717		$	45,532		$	67,367		$	(82,918	)	$	183,710

(1)	Stock compensation expense is included in direct service costs and other operating expenses, however this amount is excluded from the computation of Segment Profit since it is managed on a consolidated basis.
(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 consolidated income before income taxes

The following table reconciles Segment Profit to income before income taxes (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2014			2013			2014
Segment profit	$	59,248		$	62,166		$	203,529		$	183,710
Stock compensation expense		(4,524	)		(11,961	)		(14,764	)		(25,983	)
Non-controlling interest segment profit (loss)		—			(1,323	)		—			(3,301	)
Depreciation and amortization		(17,654	)		(23,956	)		(50,770	)		(66,665	)
Interest expense		(789	)		(2,879	)		(2,191	)		(5,719	)
Interest income		291			241			1,002			827

Income before income taxes	$	36,572		$	22,288		$	136,806		$	82,869

Summary of assets used in operations of segment

The following tables summarize those assets that are used in the operations of each segment. The remainder of the Company's assets cannot be specifically identified by segment (in thousands):

	Commercial		Public Sector		Specialty Solutions		Pharmacy Management		Corporate and Elimination		Consolidated
Year Ended December 31, 2013
Restricted cash	$	25,107	$	196,651	$	—	$	—	$	14,938	$	236,696
Net accounts receivable		50,407		62,977		7,368		115,527		1,906		238,185
Investments		16,491		92,966		—		—		98,856		208,313
Pharmaceutical inventory		—		—		—		49,609		—		49,609
Goodwill		120,485		20,882		104,549		242,290		—		488,206
Other intangible assets, net		3,513		4,590		3,686		57,905		—		69,694

	Commercial		Public Sector		Specialty Solutions		Pharmacy Management		Corporate and Elimination		Consolidated
Nine Months Ended September 30, 2014
Restricted cash	$	18,579	$	144,882	$	—	$	—	$	1,705	$	165,166
Net accounts receivable		56,898		60,377		14,912		165,936		4,559		302,682
Investments		18,089		159,959		—		—		23,376		201,424
Pharmaceutical inventory		—		—		—		40,899		—		40,899
Goodwill		129,042		20,879		104,549		311,636		—		566,106
Other intangible assets, net		2,402		6,651		2,675		128,585		—		140,313