XML 101 R20.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segments | 9 Months Ended
--- | ---
Sep. 30, 2018
Segment Reporting [Abstract] |
Segments | Segments We have three reportable segments, consisting of our Health Plans segment, which constitutes the vast majority of our operations; our Molina Medicaid Solutions segment; and our Other segment. Our reportable segments are consistent with how we currently manage the business and view the markets we serve. Refer to Note 1, “Organization and Basis of Presentation,” for a discussion of our recent divestiture of Pathways. Recent Developments – Molina Medicaid Solutions Segment We closed on the sale of MMS to DXC Technology Company on September 30, 2018. The net cash selling price for the equity interests of MMS was $233 million, which we received on October 1, 2018. As a result of this transaction, we recognized a pretax gain, net of transaction costs, of $37 million. Description of Earnings Measures for Reportable Segments 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. 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 care costs are deducted from premium revenue. The medical care ratio represents 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. The following table presents total revenue by segment. Inter-segment revenue was insignificant for all periods presented.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (In millions)
Total revenue: |  |  |  |  |  |  |
Health Plans | $ | 4,565 |  |  | $ | 4,899 |  |  | $ | 13,826 |  |  | $ | 14,538 |
Molina Medicaid Solutions | 53 |  |  | 47 |  |  | 152 |  |  | 140 |
Other | 79 |  |  | 85 |  |  | 248 |  |  | 256 |
Consolidated | $ | 4,697 |  |  | $ | 5,031 |  |  | $ | 14,226 |  |  | $ | 14,934 |
The following table reconciles margin by segment to consolidated income (loss) before income taxes:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (In millions)
Margin: |  |  |  |  |  |  |
Health Plans | $ | 547 |  |  | $ | 557 |  |  | $ | 1,812 |  |  | $ | 1,343 |
Molina Medicaid Solutions | 14 |  |  | 5 |  |  | 26 |  |  | 13 |
Other | 5 |  |  | 2 |  |  | 16 |  |  | 8 |
Total margin | 566 |  |  | 564 |  |  | 1,854 |  |  | 1,364 |
Add: other operating revenues (1) | 230 |  |  | 124 |  |  | 661 |  |  | 379 |
Add: gain on sale of subsidiary | 37 |  |  | — |  |  | 37 |  |  | — |
Less: other operating expenses (2) | (538 | ) |  | (769 | ) |  | (1,693 | ) |  | (2,029 | )
Operating income (loss) | 295 |  |  | (81 | ) |  | 859 |  |  | (286 | )
Other expenses, net | 36 |  |  | 32 |  |  | 116 |  |  | 10 |
Income (loss) before income taxes | $ | 259 |  |  | $ | (113 | ) |  | $ | 743 |  |  | $ | (296 | )
______________________
(1) | Other operating revenues include premium tax revenue, health insurer fees reimbursed, and investment income and other revenue.
(2) | Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, restructuring and separation costs, and impairment losses.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration