Acquisitions (Tables)

9 Months Ended

Sep. 30, 2014

AlphaCare Holdings Inc.

Acquisitions

Summary of estimated fair values of assets acquired and liabilities assumed at the date of the acquisition

The estimated fair values of AlphaCare Holdings assets acquired and liabilities assumed at the date of acquisition are summarized as follows (in thousands):

	Initial Amounts Recognized at Acquisition Date(1)			Measurement Period Adjustments(2)			Current Amounts Recognized at Acquisition Date
Assets acquired:
Current assets (includes $6,249 of cash and $7,900 of restricted cash)	$	14,766		$	(548	)	$	14,218
Property and equipment, net		310			(39	)		271
Other assets		475			66			541
Other identified intangible assets		4,590			2,600			7,190
Goodwill		20,882			(3	)		20,879
Total assets acquired		41,023			2,076			43,099
Liabilities assumed:
Current liabilities		3,139			1,039			4,178
Deferred tax liabilities		1,830			1,037			2,867
Total liabilities assumed		4,969			2,076			7,045
Net assets acquired		36,054			—			36,054
Less: net assets attributable to noncontrolling interest		(10,554	)		—			(10,554	)
Net consideration	$	25,500		$	—		$	25,500

(1)

As previously reported in the Company's Form 10-K for the year ended December 31, 2013.

(2)

The measurement period adjustments were recorded to reflect a $2.6 million increase in the customer contracts identified intangible and a $1.0 million increase to the deferred tax liability as a result of finalization of the valuation and other net changes of ($1.6) as a result of changes in the estimated fair values of the associated assets acquired and liabilities assumed based on factors existing at the acquisition date.

CDMI

Acquisitions

Summary of estimated fair values of assets acquired and liabilities assumed at the date of the acquisition

The estimated fair values of CDMI assets acquired and liabilities assumed at the date of the acquisition are summarized as follows (in thousands):

Assets acquired:
Current assets (includes $42,123 of accounts receivable)	$	42,226
Property and equipment, net		457
Other assets		9
Other identified intangible assets		84,220
Goodwill		69,092
Total assets acquired		196,004
Liabilities assumed:
Current liabilities		29,160
Contingent consideration		45,778
Total liabilities assumed		74,938
Net assets acquired	$	121,066

Schedule of pro forma information

Such pro forma information does not purport to be indicative of operating results that would have been reported had the acquisition of CDMI occurred on January 1, 2013 and 2014 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2014		2013		2014
Net revenue		884,980		923,170		2,568,398		2,789,252
Net income		45,410		27,133		99,951		53,965
Income per common share attributable to Magellan Health, Inc.:
Basic	$	1.68	$	1.02	$	3.71	$	1.99
Diluted	$	1.63	$	1.00	$	3.61	$	1.94