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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Net revenue:        
Managed care and other $ 834,358 $ 751,589 $ 2,385,397 $ 2,127,911
PBM and dispensing 585,048 540,543 1,758,771 1,445,588
Total net revenue 1,419,406 1,292,132 4,144,168 3,573,499
Costs and expenses:        
Cost of care 569,306 480,243 1,634,624 1,410,403
Cost of goods sold 543,682 509,673 1,648,670 1,362,062
Direct service costs and other operating expenses [1],[2],[3] 227,372 229,094 680,230 635,627
Depreciation and amortization 28,189 26,885 82,896 77,472
Interest expense 7,663 3,038 16,711 6,780
Interest and other income (1,781) (741) (3,801) (2,116)
Total costs and expenses 1,374,431 1,248,192 4,059,330 3,490,228
Income before income taxes 44,975 43,940 84,838 83,271
Provision for income taxes 11,739 18,631 29,206 43,259
Net income 33,236 25,309 55,632 40,012
Less: net (loss) income attributable to non-controlling interest 785 (200) (66) (2,692)
Net income attributable to Magellan $ 32,451 $ 25,509 $ 55,698 $ 42,704
Net income attributable to Magellan per common share:        
Basic (in dollars per share) $ 1.39 $ 1.11 $ 2.41 $ 1.83
Diluted (in dollars per share) $ 1.32 $ 1.06 $ 2.30 $ 1.75
[1] Includes changes in fair value of contingent consideration of $313 and $(834) for the three months ended September 30, 2016 and 2017, respectively, and $510 and $(631) for the nine months ended September 30, 2016 and 2017, respectively.
[2] Includes impairment of intangible assets of $0 and $4,800 for the three and nine months ended September 30, 2016, respectively.
[3] Includes stock compensation expense of $9,176 and $10,323 for the three months ended September 30, 2016 and 2017, respectively, and $27,573 and $31,834 for the nine months ended September 30, 2016 and 2017, respectively