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Supplemental Condensed Consolidating Financial Information | 3 Months Ended
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Mar. 31, 2018
Condensed Financial Information [Abstract] |
Supplemental Condensed Consolidating Financial Information | Supplemental Condensed Consolidating Financial Information As discussed in Note 7, “Debt,” we have outstanding $700 million aggregate principal amount of 5.375% Notes due November 15, 2022, unless earlier redeemed. The 5.375% Notes were registered in September 2016, and are fully and unconditionally guaranteed by certain of our wholly owned subsidiaries on a joint and several basis, with exceptions considered customary for such guarantees. For all periods presented, the following condensed consolidating financial statements present Molina Healthcare, Inc. (as “Parent Guarantor”), the subsidiary guarantors (as “Other Guarantors”), the subsidiary non-guarantors (as “Non-Guarantors”) and “Eliminations”, according to the guarantor structure as assessed as of and for the three months ended March 31, 2018. CONDENSED CONSOLIDATING STATEMENTS OF INCOME
| Three Months Ended March 31, 2018
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Revenue: |  |  |  |  |  |  |  |  |
Total revenue | $ | 333 |  |  | $ | 52 |  |  | $ | 4,592 |  |  | $ | (331 | ) |  | $ | 4,646 |
Expenses: |  |  |  |  |  |  |  |  |
Medical care costs | 4 |  |  | — |  |  | 3,718 |  |  | — |  |  | 3,722 |
Cost of service revenue | — |  |  | 43 |  |  | 77 |  |  | — |  |  | 120 |
General and administrative expenses | 267 |  |  | 4 |  |  | 412 |  |  | (331 | ) |  | 352 |
Premium tax expenses | — |  |  | — |  |  | 104 |  |  | — |  |  | 104 |
Health insurer fees | — |  |  | — |  |  | 75 |  |  | — |  |  | 75 |
Depreciation and amortization | 18 |  |  | — |  |  | 8 |  |  | — |  |  | 26 |
Restructuring and separation costs | 26 |  |  | — |  |  | (1 | ) |  | — |  |  | 25 |
Total operating expenses | 315 |  |  | 47 |  |  | 4,393 |  |  | (331 | ) |  | 4,424 |
Operating income | 18 |  |  | 5 |  |  | 199 |  |  | — |  |  | 222 |
Interest expense | 33 |  |  | — |  |  | — |  |  | — |  |  | 33 |
Other expenses, net | 10 |  |  | — |  |  | — |  |  | — |  |  | 10 |
(Loss) income before income taxes | (25 | ) |  | 5 |  |  | 199 |  |  | — |  |  | 179 |
Income tax expense | 9 |  |  | 1 |  |  | 62 |  |  | — |  |  | 72 |
Net (loss) income before equity in net losses of subsidiaries | (34 | ) |  | 4 |  |  | 137 |  |  | — |  |  | 107 |
Equity in net earnings (losses) of subsidiaries | 141 |  |  | (3 | ) |  | — |  |  | (138 | ) |  | — |
Net income | $ | 107 |  |  | $ | 1 |  |  | $ | 137 |  |  | $ | (138 | ) |  | $ | 107 |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended March 31, 2018
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Net income | $ | 107 |  |  | $ | 1 |  |  | $ | 137 |  |  | $ | (138 | ) |  | $ | 107 |
Other comprehensive loss, net of tax | (7 | ) |  | — |  |  | (7 | ) |  | 7 |  |  | (7 | )
Comprehensive income | $ | 100 |  |  | $ | 1 |  |  | $ | 130 |  |  | $ | (131 | ) |  | $ | 100 |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
| Three Months Ended March 31, 2017
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Revenue: |  |  |  |  |  |  |  |  |
Total revenue | $ | 341 |  |  | $ | 48 |  |  | $ | 4,857 |  |  | $ | (342 | ) |  | $ | 4,904 |
Expenses: |  |  |  |  |  |  |  |  |
Medical care costs | 4 |  |  | — |  |  | 4,107 |  |  | — |  |  | 4,111 |
Cost of service revenue | — |  |  | 42 |  |  | 80 |  |  | — |  |  | 122 |
General and administrative expenses | 297 |  |  | 7 |  |  | 477 |  |  | (342 | ) |  | 439 |
Premium tax expenses | — |  |  | — |  |  | 111 |  |  | — |  |  | 111 |
Depreciation and amortization | 27 |  |  | — |  |  | 12 |  |  | — |  |  | 39 |
Total operating expenses | 328 |  |  | 49 |  |  | 4,787 |  |  | (342 | ) |  | 4,822 |
Operating income (loss) | 13 |  |  | (1 | ) |  | 70 |  |  | — |  |  | 82 |
Interest expense | 26 |  |  | — |  |  | — |  |  | — |  |  | 26 |
Other income, net | (75 | ) |  | — |  |  | — |  |  | — |  |  | (75 | )
Income (loss) before income taxes | 62 |  |  | (1 | ) |  | 70 |  |  | — |  |  | 131 |
Income tax expense | 31 |  |  | — |  |  | 23 |  |  | — |  |  | 54 |
Net income (losses) before equity in earnings (losses) of subsidiaries | 31 |  |  | (1 | ) |  | 47 |  |  | — |  |  | 77 |
Equity in net earnings (losses) of subsidiaries | 46 |  |  | (2 | ) |  | — |  |  | (44 | ) |  | — |
Net income (loss) | $ | 77 |  |  | $ | (3 | ) |  | $ | 47 |  |  | $ | (44 | ) |  | $ | 77 |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME
| Three Months Ended March 31, 2017
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Net income (loss) | $ | 77 |  |  | $ | (3 | ) |  | $ | 47 |  |  | $ | (44 | ) |  | $ | 77 |
Other comprehensive income, net of tax | 1 |  |  | — |  |  | 1 |  |  | (1 | ) |  | 1 |
Comprehensive income (loss) | $ | 78 |  |  | $ | (3 | ) |  | $ | 48 |  |  | $ | (45 | ) |  | $ | 78 |
CONDENSED CONSOLIDATING BALANCE SHEETS
| March 31, 2018
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
ASSETS
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 307 |  |  | $ | 27 |  |  | $ | 3,395 |  |  | $ | — |  |  | $ | 3,729 |
Investments | 399 |  |  | — |  |  | 2,045 |  |  | — |  |  | 2,444 |
Restricted investments | 77 |  |  | — |  |  | — |  |  | — |  |  | 77 |
Receivables | 2 |  |  | 41 |  |  | 907 |  |  | — |  |  | 950 |
Due from (to) affiliates | 147 |  |  | (5 | ) |  | (142 | ) |  | — |  |  | — |
Prepaid expenses and other current assets | 60 |  |  | 8 |  |  | 343 |  |  | — |  |  | 411 |
Derivative asset | 585 |  |  | — |  |  | — |  |  | — |  |  | 585 |
Total current assets | 1,577 |  |  | 71 |  |  | 6,548 |  |  | — |  |  | 8,196 |
Property, equipment, and capitalized software, net | 206 |  |  | 30 |  |  | 82 |  |  | — |  |  | 318 |
Goodwill and intangible assets, net | 15 |  |  | 43 |  |  | 192 |  |  | — |  |  | 250 |
Restricted investments | — |  |  | — |  |  | 120 |  |  | — |  |  | 120 |
Investment in subsidiaries, net | 2,531 |  |  | 79 |  |  | — |  |  | (2,610 | ) |  | — |
Deferred income taxes | 28 |  |  | — |  |  | 104 |  |  | (18 | ) |  | 114 |
Other assets | 41 |  |  | 105 |  |  | 5 |  |  | (16 | ) |  | 135 |
| $ | 4,398 |  |  | $ | 328 |  |  | $ | 7,051 |  |  | $ | (2,644 | ) |  | $ | 9,133 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Medical claims and benefits payable | $ | 3 |  |  | $ | — |  |  | $ | 2,020 |  |  | $ | — |  |  | $ | 2,023 |
Amounts due government agencies | — |  |  | 1 |  |  | 1,713 |  |  | — |  |  | 1,714 |
Accounts payable and accrued liabilities | 151 |  |  | 40 |  |  | 522 |  |  | — |  |  | 713 |
Deferred revenue | — |  |  | 41 |  |  | 363 |  |  | — |  |  | 404 |
Current portion of long-term debt | 566 |  |  | — |  |  | — |  |  | — |  |  | 566 |
Derivative liability | 585 |  |  | — |  |  | — |  |  | — |  |  | 585 |
Total current liabilities | 1,305 |  |  | 82 |  |  | 4,618 |  |  | — |  |  | 6,005 |
Long-term debt | 1,516 |  |  | — |  |  | 16 |  |  | (16 | ) |  | 1,516 |
Deferred income taxes | — |  |  | 18 |  |  | — |  |  | (18 | ) |  | — |
Other long-term liabilities | 24 |  |  | 1 |  |  | 34 |  |  | — |  |  | 59 |
Total liabilities | 2,845 |  |  | 101 |  |  | 4,668 |  |  | (34 | ) |  | 7,580 |
Total stockholders’ equity | 1,553 |  |  | 227 |  |  | 2,383 |  |  | (2,610 | ) |  | 1,553 |
| $ | 4,398 |  |  | $ | 328 |  |  | $ | 7,051 |  |  | $ | (2,644 | ) |  | $ | 9,133 |
CONDENSED CONSOLIDATING BALANCE SHEETS
| December 31, 2017
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
ASSETS
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 504 |  |  | $ | 28 |  |  | $ | 2,654 |  |  | $ | — |  |  | $ | 3,186 |
Investments | 192 |  |  | — |  |  | 2,332 |  |  | — |  |  | 2,524 |
Restricted investments | 169 |  |  | — |  |  | — |  |  | — |  |  | 169 |
Receivables | 2 |  |  | 30 |  |  | 839 |  |  | — |  |  | 871 |
Due from (to) affiliates | 148 |  |  | (6 | ) |  | (142 | ) |  | — |  |  | — |
Prepaid expenses and other current assets | 103 |  |  | 14 |  |  | 138 |  |  | (16 | ) |  | 239 |
Derivative asset | 522 |  |  | — |  |  | — |  |  | — |  |  | 522 |
Total current assets | 1,640 |  |  | 66 |  |  | 5,821 |  |  | (16 | ) |  | 7,511 |
Property, equipment, and capitalized software, net | 223 |  |  | 33 |  |  | 86 |  |  | — |  |  | 342 |
Goodwill and intangible assets, net | 15 |  |  | 43 |  |  | 197 |  |  | — |  |  | 255 |
Restricted investments | — |  |  | — |  |  | 119 |  |  | — |  |  | 119 |
Investment in subsidiaries, net | 2,306 |  |  | 82 |  |  | — |  |  | (2,388 | ) |  | — |
Deferred income taxes | 17 |  |  | — |  |  | 101 |  |  | (15 | ) |  | 103 |
Other assets | 32 |  |  | 103 |  |  | 7 |  |  | (1 | ) |  | 141 |
| $ | 4,233 |  |  | $ | 327 |  |  | $ | 6,331 |  |  | $ | (2,420 | ) |  | $ | 8,471 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Medical claims and benefits payable | $ | 3 |  |  | $ | — |  |  | $ | 2,189 |  |  | $ | — |  |  | $ | 2,192 |
Amounts due government agencies | — |  |  | 1 |  |  | 1,541 |  |  | — |  |  | 1,542 |
Accounts payable and accrued liabilities | 178 |  |  | 40 |  |  | 148 |  |  | — |  |  | 366 |
Deferred revenue | — |  |  | 49 |  |  | 233 |  |  | — |  |  | 282 |
Current portion of long-term debt | 653 |  |  | — |  |  | 16 |  |  | (16 | ) |  | 653 |
Derivative liability | 522 |  |  | — |  |  | — |  |  | — |  |  | 522 |
Total current liabilities | 1,356 |  |  | 90 |  |  | 4,127 |  |  | (16 | ) |  | 5,557 |
Long-term debt | 1,516 |  |  | — |  |  | — |  |  | — |  |  | 1,516 |
Deferred income taxes | — |  |  | 15 |  |  | — |  |  | (15 | ) |  | — |
Other long-term liabilities | 24 |  |  | 2 |  |  | 36 |  |  | (1 | ) |  | 61 |
Total liabilities | 2,896 |  |  | 107 |  |  | 4,163 |  |  | (32 | ) |  | 7,134 |
Total stockholders’ equity | 1,337 |  |  | 220 |  |  | 2,168 |  |  | (2,388 | ) |  | 1,337 |
| $ | 4,233 |  |  | $ | 327 |  |  | $ | 6,331 |  |  | $ | (2,420 | ) |  | $ | 8,471 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
| Three Months Ended March 31, 2018
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Operating activities: |  |  |  |  |  |  |  |  |
Net cash provided by operating activities | $ | 6 |  |  | $ | 9 |  |  | $ | 379 |  |  | $ | — |  |  | $ | 394 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchases of investments | (130 | ) |  | — |  |  | (259 | ) |  | — |  |  | (389 | )
Proceeds from sales and maturities of investments | 5 |  |  | — |  |  | 538 |  |  | — |  |  | 543 |
Purchases of property, equipment and capitalized software | (1 | ) |  | (2 | ) |  | (1 | ) |  | — |  |  | (4 | )
Capital contributions to subsidiaries | (80 | ) |  | — |  |  | 80 |  |  | — |  |  | — |
Change in amounts due to/from affiliates | (3 | ) |  | (2 | ) |  | 5 |  |  | — |  |  | — |
Other, net | 2 |  |  | (6 | ) |  | (1 | ) |  | — |  |  | (5 | )
Net cash (used in) provided by investing activities | (207 | ) |  | (10 | ) |  | 362 |  |  | — |  |  | 145 |
Financing activities: |  |  |  |  |  |  |  |  |
Cash paid for financing transaction fees | (5 | ) |  | — |  |  | — |  |  | — |  |  | (5 | )
Net cash used in financing activities | (5 | ) |  | — |  |  | — |  |  | — |  |  | (5 | )
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents | (206 | ) |  | (1 | ) |  | 741 |  |  | — |  |  | 534 |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 513 |  |  | 28 |  |  | 2,749 |  |  | — |  |  | 3,290 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | $ | 307 |  |  | $ | 27 |  |  | $ | 3,490 |  |  | $ | — |  |  | $ | 3,824 |
| Three Months Ended March 31, 2017
| Parent Guarantor |  | Other Guarantors |  | Non-Guarantors |  | Eliminations |  | Consolidated
| (In millions)
Operating activities: |  |  |  |  |  |  |  |  |
Net cash provided by operating activities | $ | 144 |  |  | $ | 21 |  |  | $ | 554 |  |  | $ | — |  |  | $ | 719 |
Investing activities: |  |  |  |  |  |  |  |  |
Purchases of investments | — |  |  | — |  |  | (733 | ) |  | — |  |  | (733 | )
Proceeds from sales and maturities of investments | 92 |  |  | — |  |  | 341 |  |  | — |  |  | 433 |
Purchases of property, equipment and capitalized software | (18 | ) |  | (5 | ) |  | (3 | ) |  | — |  |  | (26 | )
Decrease in restricted investments held-to-maturity | — |  |  | — |  |  | (5 | ) |  | — |  |  | (5 | )
Capital contributions to subsidiaries | (106 | ) |  | 1 |  |  | 105 |  |  | — |  |  | — |
Dividends from subsidiaries | 50 |  |  | — |  |  | (50 | ) |  | — |  |  | — |
Change in amounts due to/from affiliates | (60 | ) |  | 2 |  |  | 58 |  |  | — |  |  | — |
Other, net | — |  |  | (6 | ) |  | — |  |  | — |  |  | (6 | )
Net cash used in investing activities | (42 | ) |  | (8 | ) |  | (287 | ) |  | — |  |  | (337 | )
Financing activities: |  |  |  |  |  |  |  |  |
Proceeds from employee stock plans | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Other, net | (2 | ) |  | — |  |  | — |  |  | — |  |  | (2 | )
Net cash used in financing activities | (1 | ) |  | — |  |  | — |  |  | — |  |  | (1 | )
Net increase in cash, cash equivalents, and restricted cash and cash equivalents | 101 |  |  | 13 |  |  | 267 |  |  | — |  |  | 381 |
Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period | 86 |  |  | 6 |  |  | 2,820 |  |  | — |  |  | 2,912 |
Cash, cash equivalents, and restricted cash and cash equivalents at end of period | $ | 187 |  |  | $ | 19 |  |  | $ | 3,087 |  |  | $ | — |  |  | $ | 3,293 |

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- Definition The entire disclosure for condensed financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161450&loc=d3e5614-111684 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01(a)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 + Details
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