Segment Information | Segment Information The Company's reporting segments include (1) home health services, (2) hospice services, (3) home and community-based services, (4) facility-based services and (5) healthcare innovations (“HCI”). The accounting policies of the segments are the same as those described in the summary of significant accounting policies, as described in Note 2 of the Notes to Condensed Consolidated Financial Statements. Reportable segments have been identified based upon how management has organized the business by services provided to customers and how the chief operating decision maker manages the business and allocates resources, consistent with the criteria in ASC 280, Segment Reporting. The following tables summarize the Company’s segment information for the three and six months ended June 30, 2019 and 2018 (amounts in thousands): Three Months Ended June 30, 2019 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 375,253 $ 55,057 $ 52,414 $ 27,975 $ 7,143 $ 517,842 Cost of service revenue 230,545 34,858 39,505 17,572 3,380 325,860 General and administrative expenses 108,958 15,096 11,213 9,335 3,982 148,584 Other intangible impairment charge 748 270 — — — 1,018 Operating income (loss) 35,002 4,833 1,696 1,068 (219 ) 42,380 Interest expense (2,023 ) (323 ) (284 ) (170 ) (85 ) (2,885 ) Income (loss) before income taxes and noncontrolling interest 32,979 4,510 1,412 898 (304 ) 39,495 Income tax expense (benefit) 8,070 1,581 (171 ) 148 (71 ) 9,557 Net income (loss) 24,909 2,929 1,583 750 (233 ) 29,938 Less net income (loss) attributable to non controlling interests 3,948 898 (267 ) 365 (6 ) 4,938 Net income (loss) attributable to LHC Group, Inc.'s common stockholder $ 20,961 $ 2,031 $ 1,850 $ 385 $ (227 ) $ 25,000 Total assets $ 1,407,221 $ 234,789 $ 240,746 $ 77,686 $ 69,413 $ 2,029,855 Three Months Ended June 30, 2018 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 360,276 $ 50,554 $ 52,753 $ 28,304 $ 10,137 $ 502,024 Cost of service revenue 223,490 32,998 39,682 19,307 5,527 321,004 General and administrative expenses 105,674 15,108 12,444 10,601 5,387 149,214 Other intangible impairment charge 291 — — 487 — 778 Operating income (loss) 30,821 2,448 627 (2,091 ) (777 ) 31,028 Interest expense (2,256 ) (473 ) (158 ) (159 ) (156 ) (3,202 ) Income (loss) before income taxes and noncontrolling interest 28,565 1,975 469 (2,250 ) (933 ) 27,826 Income tax expense (benefit) 7,091 483 139 (313 ) (230 ) 7,170 Net income (loss) 21,474 1,492 330 (1,937 ) (703 ) 20,656 Less net income (loss) attributable to noncontrolling interests 3,810 412 (90 ) (207 ) (66 ) 3,859 Net income (loss) attributable to LHC Group, Inc.'s common stockholders $ 17,664 $ 1,080 $ 420 $ (1,730 ) $ (637 ) $ 16,797 Total assets $ 1,306,773 $ 189,447 $ 255,456 $ 66,665 $ 63,329 $ 1,881,670 Six Months Ended June 30, 2019 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 738,288 $ 106,793 $ 104,199 $ 55,676 $ 15,471 $ 1,020,427 Cost of service revenue 456,668 68,034 79,360 35,304 7,486 646,852 General and administrative expenses 213,797 29,949 22,195 18,512 9,352 293,805 Other intangible impairment charge 7,066 271 — — — 7,337 Operating income (loss) 60,757 8,539 2,644 1,860 (1,367 ) 72,433 Interest expense (4,161 ) (666 ) (585 ) (350 ) (175 ) (5,937 ) Income (loss) before income taxes and noncontrolling interest 56,596 7,873 2,059 1,510 (1,542 ) 66,496 Income tax expense (benefit) 11,278 2,027 (20 ) 153 (281 ) 13,157 Net income (loss) 45,318 5,846 2,079 1,357 (1,261 ) 53,339 Less net income (loss) attributable to non controlling interests 7,728 1,499 (577 ) 846 (13 ) 9,483 Net income (loss) attributable to LHC Group, Inc.'s common stockholder $ 37,590 $ 4,347 $ 2,656 $ 511 $ (1,248 ) $ 43,856 Six Months Ended June 30, 2018 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 564,463 $ 93,180 $ 66,844 $ 58,454 $ 10,137 $ 793,078 Cost of service revenue 353,651 61,016 50,472 38,956 5,527 509,622 General and administrative expenses 171,963 28,406 15,742 19,747 5,387 241,245 Other intangible impairment charge 291 — — 487 — 778 Operating income 38,558 3,758 630 (736 ) (777 ) 41,433 Interest expense (3,344 ) (690 ) (229 ) (232 ) (157 ) (4,652 ) Income (loss) before income taxes and noncontrolling interest 35,214 3,068 401 (968 ) (934 ) 36,781 Income tax expense (benefit) 7,814 594 124 (155 ) (230 ) 8,147 Net income (loss) 27,400 2,474 277 (813 ) (704 ) 28,634 Less net income (loss) attributable to noncontrolling interests 6,047 829 (69 ) 101 (66 ) 6,842 Net income (loss) attributable to LHC Group, Inc.'s common stockholders $ 21,353 $ 1,645 $ 346 $ (914 ) $ (638 ) $ 21,792 |