Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2020
Managed care and other revenue	$	488,906	$	64,435	$	(173)	$	553,168
PBM revenue		—		573,778		(4,567)		569,211
Cost of care		(349,108)		—		—		(349,108)
Cost of goods sold		—		(537,574)		4,333		(533,241)
Direct service costs and other		(105,936)		(81,866)		(16,439)		(204,241)
Stock compensation expense (1)		1,761		2,107		1,929		5,797
Segment Profit (Loss)	$	35,623	$	20,880	$	(14,917)	$	41,586

					Corporate
			Pharmacy		and
	Healthcare		Management		Elimination		Consolidated
Three Months Ended March 31, 2021
Managed care and other revenue	$	533,010	$	93,227	$	(161)	$	626,076
PBM revenue		—		538,972		(3,399)		535,573
Cost of care		(379,191)		—		—		(379,191)
Cost of goods sold		—		(495,593)		3,223		(492,370)
Direct service costs and other		(114,993)		(104,596)		(11,432)		(231,021)
Legal matter settlement		—		9,000		—		9,000
Stock compensation expense (1)		2,519		2,696		1,842		7,057
Segment Profit (Loss)	$	41,345	$	43,706	$	(9,927)	$	75,124

(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.

Schedule of reconciliation of Segment Profit to income before income taxes

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

	Three Months Ended
	March 31,
	2020		2021
Income from continuing operations before income taxes	$	4,692	$	39,414
Stock compensation expense		5,797		7,057
Depreciation and amortization		23,358		21,417
Interest expense		8,958		6,426
Interest and other income		(1,219)		(341)
Special charges		—		1,151
Segment Profit from continuing operations	$	41,586	$	75,124