XML 98 R44.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Condensed Financial Information of Registrant (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract] |
Condensed balance sheets | Condensed Balance Sheets
| December 31,
| 2019 |  | 2018
| (In millions, except per-share data)
ASSETS
Current assets: |  |  |  |
Cash and cash equivalents | $ | 836 |  |  | $ | 70 |
Investments | 161 |  |  | 100 |
Receivables | 2 |  |  | 2 |
Due from affiliates | 49 |  |  | 90 |
Prepaid expenses and other current assets | 46 |  |  | 47 |
Derivative asset | 29 |  |  | 476 |
Total current assets | 1,123 |  |  | 785 |
Property, equipment, and capitalized software, net | 327 |  |  | 176 |
Goodwill and intangible assets, net | 13 |  |  | 13 |
Investments in subsidiaries | 2,225 |  |  | 2,768 |
Deferred income taxes | 10 |  |  | 39 |
Advances to related parties and other assets | 76 |  |  | 40 |
Total assets | $ | 3,774 |  |  | $ | 3,821 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: |  |  |
Medical claims and benefits payable | $ | — |  |  | $ | 4 |
Accounts payable and accrued liabilities | 260 |  |  | 223 |
Current portion of long-term debt | 18 |  |  | 241 |
Derivative liability | 29 |  |  | 476 |
Total current liabilities | 307 |  |  | 944 |
Long-term debt | 1,237 |  |  | 1,020 |
Finance lease liabilities | 231 |  |  | 197 |
Other long-term liabilities | 39 |  |  | 13 |
Total liabilities | 1,814 |  |  | 2,174 |
Stockholders’ equity: |  |  |
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 62 million shares at each of December 31, 2019, and December 31, 2018 | — |  |  | — |
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding | — |  |  | — |
Additional paid-in capital | 175 |  |  | 643 |
Accumulated other comprehensive income (loss) | 4 |  |  | (8 | )
Retained earnings | 1,781 |  |  | 1,012 |
Total stockholders’ equity | 1,960 |  |  | 1,647 |
Total liabilities and stockholders’ equity | $ | 3,774 |  |  | $ | 3,821 |
Condensed statements of income | Condensed Statements of Operations
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| (In millions)
Revenue: |  |  |  |  |
Administrative services fees | $ | 1,038 |  |  | $ | 1,138 |  |  | $ | 1,317 |
Investment income and other revenue | 18 |  |  | 17 |  |  | 16 |
Total revenue | 1,056 |  |  | 1,155 |  |  | 1,333 |
Expenses: |  |  |  |  |  |
General and administrative expenses | 937 |  |  | 1,007 |  |  | 1,082 |
Depreciation and amortization | 63 |  |  | 69 |  |  | 93 |
Other operating expenses | — |  |  | 8 |  |  | 16 |
Restructuring costs | 4 |  |  | 35 |  |  | 153 |
Impairment losses | — |  |  | — |  |  | 39 |
Total operating expenses | 1,004 |  |  | 1,119 |  |  | 1,383 |
Gain on sale of subsidiary | — |  |  | 37 |  |  | — |
Operating income (loss) | 52 |  |  | 73 |  |  | (50 | )
Interest expense | 87 |  |  | 114 |  |  | 117 |
Other (income) expense, net | (15 | ) |  | 17 |  |  | (61 | )
Loss before income tax (benefit) expense and equity in net earnings (losses) of subsidiaries | (20 | ) |  | (58 | ) |  | (106 | )
Income tax expense (benefit) | 9 |  |  | (14 | ) |  | 8 |
Net loss before equity in net earnings (losses) of subsidiaries | (29 | ) |  | (44 | ) |  | (114 | )
Equity in net earnings (losses) of subsidiaries | 766 |  |  | 751 |  |  | (398 | )
Net income (loss) | $ | 737 |  |  | $ | 707 |  |  | $ | (512 | )
Condensed statements of comprehensive (loss) | Condensed Statements of Comprehensive Income (Loss)
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| (In millions)
Net income (loss) | $ | 737 |  |  | $ | 707 |  |  | $ | (512 | )
Other comprehensive income (loss): |  |  |  |  |
Unrealized investment income (loss) | 16 |  |  | (3 | ) |  | (5 | )
Less: effect of income taxes | 4 |  |  | (1 | ) |  | (2 | )
Other comprehensive income (loss), net of tax | 12 |  |  | (2 | ) |  | (3 | )
Comprehensive income (loss) | $ | 749 |  |  | $ | 705 |  |  | $ | (515 | )
Condensed statements of cash flows | Condensed Statements of Cash Flows
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
| (In millions)
Operating activities: |  |  |  |  |
Net cash provided by operating activities | $ | 64 |  |  | $ | 118 |  |  | $ | 166 |
Investing activities: |  |  |  |  |  |
Capital contributions to subsidiaries | (43 | ) |  | (145 | ) |  | (370 | )
Dividends received from subsidiaries | 1,373 |  |  | 298 |  |  | 286 |
Purchases of investments | (152 | ) |  | (136 | ) |  | (331 | )
Proceeds from sales and maturities of investments | 93 |  |  | 388 |  |  | 156 |
Purchases of property, equipment and capitalized software | (56 | ) |  | (22 | ) |  | (67 | )
Net cash received from sale of subsidiaries | — |  |  | 242 |  |  | — |
Change in amounts due to/from affiliates | 38 |  |  | 6 |  |  | (49 | )
Other, net | 1 |  |  | — |  |  | — |
Net cash provided by (used in) investing activities | 1,254 |  |  | 631 |  |  | (375 | )
Financing activities: |  |  |  |  |  |
Repayment of principal amount of convertible notes | (240 | ) |  | (362 | ) |  | — |
Cash paid for partial settlement of conversion option | (578 | ) |  | (623 | ) |  | — |
Cash received for partial settlement of call option | 578 |  |  | 623 |  |  | — |
Cash paid for partial termination of warrants | (514 | ) |  | (549 | ) |  | — |
Proceeds from borrowings under term loan facility | 220 |  |  | — |  |  | — |
Common stock purchases | (47 | ) |  | — |  |  | — |
Repayment of credit facility | — |  |  | (300 | ) |  | — |
Proceeds from senior notes offerings, net of issuance costs | — |  |  | — |  |  | 325 |
Proceeds from borrowings under credit facility | — |  |  | — |  |  | 300 |
Other, net | 29 |  |  | 19 |  |  | 11 |
Net cash (used in) provided by financing activities | (552 | ) |  | (1,192 | ) |  | 636 |
Net (decrease) increase in cash and cash equivalents | 766 |  |  | (443 | ) |  | 427 |
Cash and cash equivalents at beginning of period | 70 |  |  | 513 |  |  | 86 |
Cash and cash equivalents at end of period | $ | 836 |  |  | $ | 70 |  |  | $ | 513 |

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

X
- Definition Tabular disclosure of condensed balance sheet, including, but not limited to, balance sheets of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedBalanceSheetTableTextBlock
Namespace Prefix: | srt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed cash flow statement, including, but not limited to, cash flow statements of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedCashFlowStatementTableTextBlock
Namespace Prefix: | srt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of condensed income statement, including, but not limited to, income statements of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 3 -Paragraph i -Subsection 10 + Details
Name: | srt_ScheduleOfCondensedIncomeStatementTableTextBlock
Namespace Prefix: | srt_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of components of comprehensive income (loss). Includes, but is not limited to, foreign currency translation adjustments, foreign currency transactions designated as economic hedges of a net investment in foreign entity, gain (loss) and prior service cost (credit) for pension plans and other postretirement benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=118930883&loc=d3e526-108580 + Details
Name: | us-gaap_ScheduleOfComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration