Express Scripts 2013 Annual Report Download - page 45

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45 Express Scripts 2013 Annual Report
UBC REVENUES
Our United BioSource LLC (“UBC”) subsidiary provides services to pharmaceutical and biotechnology companies
related to late-stage clinical trials, risk management and drug safety. These services are typically performed over several
months and include general project management services in addition to specific deliverables. Revenue related to these services
is recognized as the services are performed.
RESULTS OF OPERATIONS
We report segments on the basis of services offered and have determined we have two reportable segments: PBM
and Other Business Operations. Our PBM segment includes our integrated PBM operations and specialty pharmacy operations.
Our Other Business Operations segment includes UBC and our specialty distribution operations.
During the second quarter of 2012, we reorganized our other international retail network pharmacy administration
business (which was substantially shut down as of December 31, 2012) from our PBM segment into our Other Business
Operations segment. During the third quarter of 2011, we reorganized our FreedomFP line of business from our Other Business
Operations segment into our PBM segment.
Prior to the Merger, ESI and Medco historically used slightly different methodologies to report claims; however,
we believe the differences between the claims reported by ESI and Medco would not be material had the same methodology
been applied. We have since combined these two approaches into one methodology. This change was made prospectively
beginning April 2, 2012. We have not restated the number of claims in prior periods because the differences are not material.