Quarterly Results of Operations (Unaudited)

The following table summarizes quarterly unaudited results of operations for the years ended December 31, 2017 and 2016.



	For The Quarter Ended
	March 31, 2017		June 30, 2017			Sept. 30, 2017			December 31, 2017
	(In millions, except per-share data)
Total revenue	$	4,904	$	4,999		$	5,031		$	4,949
Gross margin	546		254			564			446
Impairment losses	—		72			129			269
Restructuring and separation costs	—		43			118			73
Net income (loss)	77		(230		)	(97		)	(262		)

Net income (loss) per share ⁽¹⁾:
Basic	$	1.38	$	(4.10	)	$	(1.70	)	$	(4.59	)
Diluted	$	1.37	$	(4.10	)	$	(1.70	)	$	(4.59	)



	For The Quarter Ended
	March 31, 2016		June 30, 2016		Sept. 30, 2016		December 31, 2016
	(In millions, except per-share data)
Total revenue	$	4,343	$	4,359	$	4,546	$	4,534
Gross margin ⁽²⁾	434		466		471		354
Net income (loss)	24		33		42		(47		)

Net income (loss) per share ⁽¹⁾:
Basic	$	0.44	$	0.58	$	0.77	$	(0.85	)
Diluted	$	0.43	$	0.58	$	0.76	$	(0.85	)

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(1)	The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Certain potentially dilutive common shares issuable are not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive.

(2)

The Centers for Medicare and Medicaid Services (CMS) incorporates the Health Insurer Fee (HIF) in our Medicare and Marketplace premium rates. We have therefore reclassified such amounts in our consolidated statements of operations to premium revenue, from health insurer fees reimbursed, for all applicable periods presented. As a result, gross margin amounts differ from amounts previously reported as follows: for the quarters ended March 31, June 30, September 30, and December 31, 2016, gross margin increased $14 million, $12 million, $14 million, and $13 million, respectively.