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Restructuring and Separation Costs (Tables)

9 Months Ended

Sep. 30, 2017

Restructuring and Related Activities [Abstract]

Expected Costs

The following table illustrates our estimates of the total costs, by segment and major type of cost, that we expect to incur under the Restructuring Plan, and includes costs incurred through September 30, 2017. We expect the Restructuring Plan to be completed by the end of 2018.

Estimated Costs Expected to be Incurred by Reportable Segment		Health Plans		Molina Medicaid Solutions			Other		Total
		(In millions)
Termination benefits		$30 to $35		—			$30 to $35		$60 to $70
Other restructuring costs		$40 to $45		$10			$110 to $115		$160 to $170
		$70 to $80		$10			$140 to $150		$220 to $240

Separation Costs

On May 2, 2017, we terminated the employment of our former CEO and CFO without cause. Under their amended and restated employment agreements, they were each entitled to receive 400% of their base salary, a prorated termination bonus (150% of base salary for the former CEO and 125% of base salary for the former CFO), full vesting of equity compensation, and a cash payment for health and welfare benefits. We recorded separation costs of $35 million primarily related to these former executives under FASB ASC Topic 712, Nonretirement and Postemployment Benefits. Of this total, $23 million related to the acceleration of their share-based compensation, as further discussed in Note 9, “Stockholders' Equity.” Employee separation costs were insignificant in 2016.

Restructuring and separation costs are reported in “Restructuring and separation costs” in the accompanying consolidated statements of operations. The following tables present the major types of such costs by segment. Long-lived assets include capitalized software, intangible assets and furniture, fixtures and equipment.

	Three Months Ended September 30, 2017
	Separation Costs - Former Executives				One-Time Termination Benefits				Other Restructuring Costs												Total
									Write-offs of Long-lived Assets				Consulting Fees				Contract Termination Costs
	(In millions)
Health Plans	$	—			$	27			$	6			$	—			$	—			$	33
Molina Medicaid Solutions	—				—				8				—				—				8
Other	—				23				35				16				3				77
	$	—			$	50			$	49			$	16			$	3			$	118

	Nine Months Ended September 30, 2017
	Separation Costs - Former Executives				One-Time Termination Benefits				Other Restructuring Costs												Total
									Write-offs of Long-lived Assets				Consulting Fees				Contract Termination Costs
	(In millions)
Health Plans	$	—			$	27			$	6			$	—			$	—			$	33
Molina Medicaid Solutions	—				—				8				—				—				8
Other	35				23				35				24				3				120
	$	35			$	50			$	49			$	24			$	3			$	161

Restructuring Reserve

For those restructuring and separation costs that require cash settlement (primarily separation costs, termination benefits and consulting fees), the following table presents a roll-forward of the accrued liability, which is reported in “Accounts payable and accrued liabilities” in the accompanying consolidated balance sheets:

	Separation Costs - Former Executives				One-Time Termination Benefits				Other Restructuring Costs				Total
	(In millions)
Accrued as of December 31, 2016	$	—			$	—			$	—			$	—
Charges	12				50				27				89
Cash payments	(1		)		(9		)		(14		)		(24		)
Accrued as of September 30, 2017	$	11			$	41			$	13			$	65

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- Definition

Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
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-Section S99
-Paragraph 2
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-Publisher FASB
-Name Accounting Standards Codification
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Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 5.P.4(b)(2))
-URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747

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