Segments

We currently have two reportable segments: our Health Plans segment and our Other segment. We manage the vast majority of our operations through our Health Plans segment. Our Other segment includes the historical results of the Pathways behavioral health subsidiary, which we sold in the fourth quarter of 2018, and certain corporate amounts not allocated to the Health Plans segment. Effective in the fourth quarter of 2018, we reclassified the historical results relating to our Molina Medicaid Solutions (“MMS”) segment, which we sold in the third quarter of 2018, to the Other segment. Previously, results for MMS were reported in a stand-alone segment.

Refer to Note 1, “Organization and Basis of Presentation,” for further details on the sales of Pathways and MMS.

We regularly evaluate the appropriateness of our reportable segments, particularly in light of organizational changes, acquisition and divestiture activity, and changing laws and regulations. Therefore, these reportable segments may change in the future.

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,” which represents the amount earned by the segments 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 segments. Therefore, the underlying medical margin is the most important measure of earnings reviewed by the chief operating decision maker.



	Health Plans		Other		Consolidated
	(In millions)
2018
Total revenue	$	18,471	$	419	18,890
Margin	2,475		43		2,518
Goodwill, and intangible assets, net	190		—		190
Total assets	6,165		989		7,154
2017
Total revenue	$	19,352	$	531	$	19,883
Margin	1,781		29		1,810
Goodwill, and intangible assets, net	212		43		255
Total assets	6,347		2,124		8,471
2016
Total revenue	$	17,234	$	548	$	17,782
Margin	1,671		54		1,725
Goodwill, and intangible assets, net	513		247		760
Total assets	5,897		1,552		7,449

The following table reconciles margin by segment to consolidated income (loss) before income tax expense (benefit):



	Year Ended December 31,
	2018			2017			2016
	(In millions)
Margin:
Health Plans	$	2,475		$	1,781		$	1,671
Other	43			29			54
Total margin	2,518			1,810			1,725
Add: other operating revenues ⁽¹⁾	871			508			798
Less: other operating expenses ⁽²⁾	(2,243		)	(2,873		)	(2,217		)
Less: loss on sales of subsidiaries, net of gain	(15		)	—			—
Operating income (loss)	1,131			(555		)	306
Less: other expenses, net	132			57			101
Income (loss) before income tax expense (benefit)	$	999		$	(612	)	$	205

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(1)	Other operating revenues include premium tax revenue, health insurer fees reimbursed, investment income and other revenue.


(2)	Other operating expenses include general and administrative expenses, premium tax expenses, health insurer fees, depreciation and amortization, impairment losses, and restructuring and separation costs.