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Segment Information | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Information | Segment Information We have three reportable segments. These segments consist of our Health Plans segment, which comprises the vast majority of our operations; our Molina Medicaid Solutions segment; and our Other segment, which includes our behavioral health and social services subsidiary, Pathways. Our reportable segments are consistent with how we currently manage our business and view the markets we serve. The Health Plans segment consists of our health plans and our direct delivery business. Our health plans are operating segments that have been aggregated for reporting purposes because they share similar economic characteristics. The Molina Medicaid Solutions segment provides support to state government agencies in the administration of their Medicaid programs including business processing, information technology development, and administrative services. The Other segment includes primarily our Pathways behavioral health and social services provider, and corporate amounts not allocated to other reportable segments. Gross margin is the appropriate earnings measure for our reportable segments, based on how our chief operating decision maker currently reviews results, assesses performance, and allocates resources. Gross margin for our Health Plans segment is referred to as “Medical margin,” and for our Molina Medicaid Solutions and Other segments, as “Service margin.” Medical margin represents the amount earned by the Health Plans segment after medical costs are deducted from premium revenue. The medical care ratio represents the amount of medical care costs as a percentage of premium revenue, and is one of the key metrics used to assess the performance of the Health Plans segment. Therefore, the underlying medical margin is the most important measure of earnings reviewed by the chief operating decision maker. The service margin is equal to service revenue minus cost of service revenue.
|  | Health Plans |  | Molina Medicaid Solutions |  | Other |  | Consolidated
|  | (In millions)
2016 |  |  |  |  |  |  |  |
Total revenue (1) |  | $ | 17,234 |  |  | $ | 195 |  |  | $ | 353 |  |  | $ | 17,782 |
Gross margin |  | 1,618 |  |  | 21 |  |  | 33 |  |  | 1,672 |
Depreciation and amortization (2) |  | 122 |  |  | 45 |  |  | 15 |  |  | 182 |
Goodwill, and intangible assets, net |  | 513 |  |  | 72 |  |  | 175 |  |  | 760 |
Total assets |  | 5,897 |  |  | 267 |  |  | 1,285 |  |  | 7,449 |
2015 |  |  |  |  |  |  |  |
Total revenue (1) |  | 13,917 |  |  | 195 |  |  | 66 |  |  | 14,178 |
Gross margin |  | 1,447 |  |  | 55 |  |  | 5 |  |  | 1,507 |
Depreciation and amortization (2) |  | 95 |  |  | 25 |  |  | 6 |  |  | 126 |
Goodwill, and intangible assets, net |  | 393 |  |  | 73 |  |  | 175 |  |  | 641 |
Total assets |  | 4,707 |  |  | 213 |  |  | 1,656 |  |  | 6,576 |
2014 |  |  |  |  |  |  |  |
Total revenue (1) |  | 9,449 |  |  | 210 |  |  | 8 |  |  | 9,667 |
Gross margin |  | 947 |  |  | 53 |  |  | — |  |  | 1,000 |
Depreciation and amortization (2) |  | 83 |  |  | 46 |  |  | 5 |  |  | 134 |
Goodwill, and intangible assets, net |  | 286 |  |  | 75 |  |  | — |  |  | 361 |
Total assets |  | 3,355 |  |  | 185 |  |  | 895 |  |  | 4,435 |
______________________
(1) | Total revenue consists primarily of premium revenue, premium tax revenue and health insurer fee revenue for the Health Plans segment, and service revenue for the Molina Medicaid Solutions and Other segments.
(2) | Depreciation and amortization reported in accompanying consolidated statements of cash flows.
The following table reconciles gross margin by segment to consolidated income before income tax expense:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (In millions)
Gross margin: |  |  |  |  |
Health Plans | $ | 1,618 |  |  | $ | 1,447 |  |  | $ | 947 |
Molina Medicaid Solutions | 21 |  |  | 55 |  |  | 53 |
Other | 33 |  |  | 5 |  |  | — |
Total gross margin | 1,672 |  |  | 1,507 |  |  | 1,000 |
Add: other operating revenues (1) | 851 |  |  | 684 |  |  | 434 |
Less: other operating expenses (2) | (2,217 | ) |  | (1,804 | ) |  | (1,241 | )
Operating income | 306 |  |  | 387 |  |  | 193 |
Other expenses, net | 101 |  |  | 65 |  |  | 58 |
Income before income tax expense | $ | 205 |  |  | $ | 322 |  |  | $ | 135 |
______________________
(1) | Other operating revenues include premium tax revenue, health insurer fee revenue, investment income and other revenue.
(2) | Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fee expenses, and depreciation and amortization.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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