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 nine months ended September 30, 2019 and 2018 (amounts in thousands): Three Months Ended September 30, 2019 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 375,599 $ 62,028 $ 53,411 $ 28,715 $ 8,746 $ 528,499 Cost of service revenue 237,414 35,819 39,694 18,508 3,333 334,768 General and administrative expenses 108,318 15,218 10,809 9,498 2,986 146,829 Other intangible impairment charge 197 — — — — 197 Operating income 29,670 10,991 2,908 709 2,427 46,705 Interest expense (1,758 ) (310 ) (272 ) (174 ) (82 ) (2,596 ) Income before income taxes and noncontrolling interest 27,912 10,681 2,636 535 2,345 44,109 Income tax expense 5,900 1,689 1,299 144 476 9,508 Net income 22,012 8,992 1,337 391 1,869 34,601 Less net income (loss) attributable to non controlling interests 3,577 1,213 (180 ) (67 ) (9 ) 4,534 Net income attributable to LHC Group, Inc.'s common stockholder $ 18,435 $ 7,779 $ 1,517 $ 458 $ 1,878 $ 30,067 Total assets $ 1,458,991 $ 235,865 $ 243,779 $ 88,905 $ 70,324 $ 2,097,864 Three Months Ended September 30, 2018 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 360,000 $ 52,962 $ 52,773 $ 27,891 $ 13,417 $ 507,043 Cost of service revenue 222,765 34,540 39,860 20,146 4,885 322,196 General and administrative expenses 105,112 14,685 12,922 9,823 7,030 149,572 Other intangible impairment charge 345 — — — — 345 Operating income (loss) 31,778 3,737 (9 ) (2,078 ) 1,502 34,930 Interest expense (2,284 ) (491 ) (163 ) (163 ) (163 ) (3,264 ) Income (loss) before income taxes and noncontrolling interest 29,494 3,246 (172 ) (2,241 ) 1,339 31,666 Income tax expense (benefit) 6,209 774 (74 ) (541 ) 317 6,685 Net income (loss) 23,285 2,472 (98 ) (1,700 ) 1,022 24,981 Less net income (loss) attributable to noncontrolling interests 3,425 386 (87 ) 27 — 3,751 Net income (loss) attributable to LHC Group, Inc.'s common stockholders $ 19,860 $ 2,086 $ (11 ) $ (1,727 ) $ 1,022 $ 21,230 Total assets $ 1,316,792 $ 203,921 $ 246,963 $ 61,089 $ 81,999 $ 1,910,764 Nine Months Ended September 30, 2019 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 1,113,887 $ 168,821 $ 157,610 $ 84,391 $ 24,217 $ 1,548,926 Cost of service revenue 694,082 103,853 119,054 53,812 10,819 981,620 General and administrative expenses 322,115 45,167 33,004 28,010 12,338 440,634 Other intangible impairment charge 7,263 271 — — — 7,534 Operating income 90,427 19,530 5,552 2,569 1,060 119,138 Interest expense (5,919 ) (976 ) (857 ) (524 ) (257 ) (8,533 ) Income before income taxes and noncontrolling interest 84,508 18,554 4,695 2,045 803 110,605 Income tax expense 17,178 3,716 1,279 297 195 22,665 Net income 67,330 14,838 3,416 1,748 608 87,940 Less net income (loss) attributable to non controlling interests 11,305 2,712 (757 ) 779 (22 ) 14,017 Net income attributable to LHC Group, Inc.'s common stockholder $ 56,025 $ 12,126 $ 4,173 $ 969 $ 630 $ 73,923 Nine Months Ended September 30, 2018 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue $ 924,463 $ 146,142 $ 119,617 $ 86,345 $ 23,554 $ 1,300,121 Cost of service revenue 576,416 95,557 90,331 59,102 10,412 831,818 General and administrative expenses 277,075 43,090 28,664 29,571 12,417 390,817 Other intangible impairment charge 636 — — 487 — 1,123 Operating income 70,336 7,495 622 (2,815 ) 725 76,363 Interest expense (5,627 ) (1,181 ) (393 ) (395 ) (320 ) (7,916 ) Income (loss) before income taxes and noncontrolling interest 64,709 6,314 229 (3,210 ) 405 68,447 Income tax expense (benefit) 14,022 1,368 50 (695 ) 87 14,832 Net income (loss) 50,687 4,946 179 (2,515 ) 318 53,615 Less net income (loss) attributable to noncontrolling interests 9,472 1,215 (157 ) 129 (66 ) 10,593 Net income (loss) attributable to LHC Group, Inc.'s common stockholders $ 41,215 $ 3,731 $ 336 $ (2,644 ) $ 384 $ 43,022 |