XML 29 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Business Segment Information (Tables)
 9 Months Ended
Sep. 30, 2017
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 September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

690,572

 

$

61,106

 

$

(89)

 

$

751,589

 

PBM and dispensing revenue

 

 

 —

 

 

570,231

 

 

(29,688)

 

 

540,543

 

Cost of care

 

 

(480,243)

 

 

 —

 

 

 —

 

 

(480,243)

 

Cost of goods sold

 

 

 —

 

 

(538,113)

 

 

28,440

 

 

(509,673)

 

Direct service costs and other

 

 

(152,992)

 

 

(66,475)

 

 

(9,627)

 

 

(229,094)

 

Stock compensation expense (1)

 

 

2,267

 

 

5,368

 

 

1,541

 

 

9,176

 

Changes in fair value of contingent consideration (1)

 

 

313

 

 

 —

 

 

 —

 

 

313

 

Less: non-controlling interest segment profit (loss) (2)

 

 

(189)

 

 

 —

 

 

(5)

 

 

(194)

 

Segment profit (loss)

 

$

60,106

 

$

32,117

 

$

(9,418)

 

$

82,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Three Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

769,451

 

$

65,131

 

$

(224)

 

$

834,358

 

PBM and dispensing revenue

 

 

 —

 

 

618,178

 

 

(33,130)

 

 

585,048

 

Cost of care

 

 

(569,306)

 

 

 —

 

 

 —

 

 

(569,306)

 

Cost of goods sold

 

 

 —

 

 

(575,327)

 

 

31,645

 

 

(543,682)

 

Direct service costs and other

 

 

(143,550)

 

 

(74,976)

 

 

(8,846)

 

 

(227,372)

 

Stock compensation expense (1)

 

 

2,623

 

 

5,680

 

 

2,020

 

 

10,323

 

Changes in fair value of contingent consideration (1)

 

 

(834)

 

 

 —

 

 

 —

 

 

(834)

 

Less: non-controlling interest segment profit (loss) (2)

 

 

789

 

 

 —

 

 

(1)

 

 

788

 

Segment profit (loss)

 

$

57,595

 

$

38,686

 

$

(8,534)

 

$

87,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Nine Months Ended September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

1,947,470

 

$

180,658

 

$

(217)

 

$

2,127,911

 

PBM and dispensing revenue

 

 

 —

 

 

1,535,864

 

 

(90,276)

 

 

1,445,588

 

Cost of care

 

 

(1,410,403)

 

 

 —

 

 

 —

 

 

(1,410,403)

 

Cost of goods sold

 

 

 —

 

 

(1,448,699)

 

 

86,637

 

 

(1,362,062)

 

Direct service costs and other

 

 

(418,574)

 

 

(191,402)

 

 

(25,651)

 

 

(635,627)

 

Stock compensation expense (1)

 

 

6,737

 

 

16,338

 

 

4,498

 

 

27,573

 

Changes in fair value of contingent consideration (1)

 

 

383

 

 

127

 

 

 —

 

 

510

 

Impairment of intangible assets (1)

 

 

4,800

 

 

 —

 

 

 —

 

 

4,800

 

Less: non-controlling interest segment profit (loss) (2)

 

 

(1,325)

 

 

 —

 

 

(16)

 

 

(1,341)

 

Segment profit (loss)

 

$

131,738

 

$

92,886

 

$

(24,993)

 

$

199,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

Corporate

    

 

 

 

 

 

 

 

 

Pharmacy

 

and

 

 

 

 

 

    

Healthcare

    

Management

    

Elimination

    

Consolidated

 

Nine Months Ended September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed care and other revenue

 

$

2,190,097

 

$

195,970

 

$

(670)

 

$

2,385,397

 

PBM and dispensing revenue

 

 

 —

 

 

1,856,856

 

 

(98,085)

 

 

1,758,771

 

Cost of care

 

 

(1,634,624)

 

 

 —

 

 

 —

 

 

(1,634,624)

 

Cost of goods sold

 

 

 —

 

 

(1,742,610)

 

 

93,940

 

 

(1,648,670)

 

Direct service costs and other

 

 

(428,432)

 

 

(225,782)

 

 

(26,016)

 

 

(680,230)

 

Stock compensation expense (1)

 

 

8,388

 

 

17,094

 

 

6,352

 

 

31,834

 

Changes in fair value of contingent consideration (1)

 

 

(631)

 

 

 —

 

 

 —

 

 

(631)

 

Less: non-controlling interest segment profit (loss) (2)

 

 

(56)

 

 

 —

 

 

(3)

 

 

(59)

 

Segment profit (loss)

 

$

134,854

 

$

101,528

 

$

(24,476)

 

$

211,906

 

 

(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.

(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 income before income taxes

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30, 

 

September 30, 

 

 

 

 

2016

    

2017

    

2016

    

2017

    

 

Income before income taxes

 

$

43,940

 

$

44,975

 

$

83,271

 

$

84,838

 

 

Stock compensation expense

 

 

9,176

 

 

10,323

 

 

27,573

 

 

31,834

 

 

Changes in fair value of contingent consideration

 

 

313

 

 

(834)

 

 

510

 

 

(631)

 

 

Impairment of intangible assets

 

 

 —

 

 

 —

 

 

4,800

 

 

 —

 

 

Non-controlling interest segment (profit) loss

 

 

194

 

 

(788)

 

 

1,341

 

 

59

 

 

Depreciation and amortization

 

 

26,885

 

 

28,189

 

 

77,472

 

 

82,896

 

 

Interest expense

 

 

3,038

 

 

7,663

 

 

6,780

 

 

16,711

 

 

Interest and other income

 

 

(741)

 

 

(1,781)

 

 

(2,116)

 

 

(3,801)

 

 

Segment Profit

 

$

82,805

 

$

87,747

 

$

199,631

 

$

211,906