XML 56 R36.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Provision for income taxes | Income tax expense for continuing operations consisted of the following:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Current: |  |  |  |  |
Federal | $ | 281 |  |  | $ | 204 |  |  | $ | 272 |
State | 26 |  |  | 12 |  |  | 18 |
Foreign | — |  |  | 9 |  |  | 8 |
Total current | 307 |  |  | 225 |  |  | 298 |
Deferred: |  |  |  |  |
Federal | (13) |  |  | 5 |  |  | (3) |
State | (7) |  |  | 6 |  |  | (3) |
Foreign | 1 |  |  | (1) |  |  | — |
Total deferred | (19) |  |  | 10 |  |  | (6) |
Income tax expense | $ | 288 |  |  | $ | 235 |  |  | $ | 292 |
Effective income tax rate reconciliation to the statutory federal income tax rate | A reconciliation of the U.S. federal statutory income tax rate to the combined effective income tax rate for continuing operations is as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Statutory federal tax (benefit) rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income provision (benefit), net of federal | 1.6 |  |  | 1.4 |  |  | 1.2 |
Nondeductible health insurer fee (“HIF”) | 6.1 |  |  | — |  |  | 7.3 |
Nondeductible compensation | 1.1 |  |  | 1.2 |  |  | 0.7 |
Worthless stock deduction | — |  |  | — |  |  | (1.0) |
Other | 0.2 |  |  | 0.6 |  |  | — |
Effective tax expense rate | 30.0 | % |  | 24.2 | % |  | 29.2 | %
Significant components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 were as follows:
| December 31,
| 2020 |  | 2019
| (In millions)
Accrued expenses and reserve liabilities | $ | 52 |  |  | $ | 35 |
Other accrued medical costs | 15 |  |  | 11 |
Net operating losses | 11 |  |  | 13 |
Fixed assets and intangibles | — |  |  | 26 |
Unearned premiums | 18 |  |  | 11 |
Lease financing obligation | 8 |  |  | 5 |
Tax credit carryover | 7 |  |  | 11 |
Other | 4 |  |  | — |
Valuation allowance | (17) |  |  | (24) |
Total deferred income tax assets, net of valuation allowance | 98 |  |  | 88 |
Fixed assets and intangibles | (7) |  |  | — |
Prepaid expenses | (10) |  |  | (6) |
Unrealized gains and losses | (12) |  |  | (1) |
Other | — |  |  | (2) |
Total deferred income tax liabilities | (29) |  |  | (9) |
Net deferred income tax asset | $ | 69 |  |  | $ | 79 |
Unrecognized tax benefits roll forward | The roll forward of our unrecognized tax benefits is as follows:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Gross unrecognized tax benefits at beginning of period | $ | (20) |  |  | $ | (20) |  |  | $ | (13) |
Increases in tax positions for current year | — |  |  | — |  |  | (9) |
Lapse in statute of limitations | — |  |  | — |  |  | 2 |
Gross unrecognized tax benefits at end of period | $ | (20) |  |  | $ | (20) |  |  | $ | (20) |

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

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration