XML 44 R24.htm IDEA: XBRL DOCUMENT
v3.20.4

Condensed Financial Information of Registrant | 12 Months Ended
--- | ---
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract] |
Condensed Financial Information of Registrant | Condensed Financial Information of Registrant The condensed balance sheets as of December 31, 2020 and 2019, and the related condensed statements of income, comprehensive income and cash flows for each of the three years in the period ended December 31, 2020 for our parent company Molina Healthcare, Inc. (the “Registrant”), are presented below. Condensed Balance Sheets
| December 31,
| 2020 |  | 2019
| (In millions, except per-share data)
ASSETS
Current assets: |  |  |
Cash and cash equivalents | $ | 575 |  |  | $ | 836 |
Investments | 69 |  |  | 161 |
Receivables | 2 |  |  | 2 |
Due from affiliates | 114 |  |  | 49 |
Prepaid expenses and other current assets | 65 |  |  | 75 |
Total current assets | 825 |  |  | 1,123 |
Property, equipment, and capitalized software, net | 339 |  |  | 327 |
Goodwill and intangible assets, net | 369 |  |  | 13 |
Investments in subsidiaries | 3,228 |  |  | 2,225 |
Deferred income taxes | 5 |  |  | 10 |
Advances to related parties and other assets | 83 |  |  | 76 |
Total assets | $ | 4,849 |  |  | $ | 3,774 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: |  |  |
Accounts payable, accrued liabilities and other | $ | 338 |  |  | $ | 307 |
Total current liabilities | 338 |  |  | 307 |
Long-term debt | 2,127 |  |  | 1,237 |
Finance lease liabilities | 225 |  |  | 231 |
Other long-term liabilities | 63 |  |  | 39 |
Total liabilities | 2,753 |  |  | 1,814 |
Stockholders’ equity: |  |  |
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 59 million shares at December 31, 2020, and 62 million at December 31, 2019 | — |  |  | — |
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding | — |  |  | — |
Additional paid-in capital | 199 |  |  | 175 |
Accumulated other comprehensive income | 37 |  |  | 4 |
Retained earnings | 1,860 |  |  | 1,781 |
Total stockholders’ equity | 2,096 |  |  | 1,960 |
Total liabilities and stockholders’ equity | $ | 4,849 |  |  | $ | 3,774 |
See accompanying notes. Condensed Statements of Income
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Revenue: |  |  |  |  |
Administrative services fees | $ | 1,208 |  |  | $ | 1,038 |  |  | $ | 1,138 |
Investment income and other revenue | 13 |  |  | 18 |  |  | 17 |
Total revenue | 1,221 |  |  | 1,056 |  |  | 1,155 |
Expenses: |  |  |  |  |
General and administrative expenses | 1,089 |  |  | 937 |  |  | 1,007 |
Depreciation and amortization | 67 |  |  | 63 |  |  | 69 |
Other operating expenses, net | 24 |  |  | 4 |  |  | 6 |
Total operating expenses | 1,180 |  |  | 1,004 |  |  | 1,082 |
Operating income | 41 |  |  | 52 |  |  | 73 |
Interest expense | 102 |  |  | 87 |  |  | 114 |
Other expenses (income), net | 15 |  |  | (15) |  |  | 17 |
Total other expenses, net | 117 |  |  | 72 |  |  | 131 |
Loss before income tax (benefit) expense and equity in net earnings of subsidiaries | (76) |  |  | (20) |  |  | (58) |
Income tax (benefit) expense | (5) |  |  | 9 |  |  | (14) |
Net loss before equity in net earnings of subsidiaries | (71) |  |  | (29) |  |  | (44) |
Equity in net earnings of subsidiaries | 744 |  |  | 766 |  |  | 751 |
Net income | $ | 673 |  |  | $ | 737 |  |  | $ | 707 |
Condensed Statements of Comprehensive Income
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Net income | $ | 673 |  |  | $ | 737 |  |  | $ | 707 |
Other comprehensive income (loss): |  |  |  |  |
Unrealized investment income (loss) | 44 |  |  | 16 |  |  | (3) |
Less: effect of income taxes | 11 |  |  | 4 |  |  | (1) |
Other comprehensive income (loss), net of tax | 33 |  |  | 12 |  |  | (2) |
Comprehensive income | $ | 706 |  |  | $ | 749 |  |  | $ | 705 |
See accompanying notes. Condensed Statements of Cash Flows
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
| (In millions)
Operating activities: |  |  |  |  |
Net cash provided by operating activities | $ | 59 |  |  | $ | 64 |  |  | $ | 118 |
Investing activities: |  |  |  |  |
Capital contributions to subsidiaries | (107) |  |  | (43) |  |  | (145) |
Dividends received from subsidiaries | 635 |  |  | 1,373 |  |  | 298 |
Purchases of investments | (188) |  |  | (152) |  |  | (136) |
Proceeds from sales and maturities of investments | 282 |  |  | 93 |  |  | 388 |
Purchases of property, equipment and capitalized software | (74) |  |  | (56) |  |  | (22) |
Net cash paid in business combinations | (1,028) |  |  | — |  |  | — |
Net cash received from sale of subsidiaries | — |  |  | — |  |  | 242 |
Change in amounts due to/from affiliates | (68) |  |  | 38 |  |  | 6 |
Other, net | 3 |  |  | 1 |  |  | — |
Net cash (used in) provided by investing activities | (545) |  |  | 1,254 |  |  | 631 |
Financing activities: |  |  |  |  |
Proceeds from senior notes offering, net of issuance costs | 1,429 |  |  | — |  |  | — |
Common stock purchases | (606) |  |  | (47) |  |  | — |
Repayment of term loan facility | (600) |  |  | — |  |  | — |
Proceeds from borrowings under term loan facility | 380 |  |  | 220 |  |  | — |
Repayment of senior notes | (338) |  |  | — |  |  | — |
Cash paid for partial termination of warrants | (30) |  |  | (514) |  |  | (549) |
Cash paid for partial settlement of conversion option | (27) |  |  | (578) |  |  | (623) |
Cash received for partial settlement of call option | 27 |  |  | 578 |  |  | 623 |
Repayment of principal amount of convertible notes | (12) |  |  | (240) |  |  | (362) |
Repayment of credit facility | — |  |  | — |  |  | (300) |
Other, net | 2 |  |  | 29 |  |  | 19 |
Net cash provided by (used in) financing activities | 225 |  |  | (552) |  |  | (1,192) |
Net (decrease) increase in cash and cash equivalents | (261) |  |  | 766 |  |  | (443) |
Cash and cash equivalents at beginning of period | 836 |  |  | 70 |  |  | 513 |
Cash and cash equivalents at end of period | $ | 575 |  |  | $ | 836 |  |  | $ | 70 |
Notes to Condensed Financial Information of Registrant Note A - Basis of Presentation The Registrant was incorporated in 2002. Prior to that date, Molina Healthcare of California (formerly known as Molina Medical Centers) operated as a California health plan and as the parent company for three other state health plans. In June 2003, the employees and operations of the corporate entity were transferred from Molina Healthcare of California to the Registrant. The Registrant’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The accompanying condensed financial information of the Registrant should be read in conjunction with the consolidated financial statements and accompanying notes. Note B - Transactions with Subsidiaries The Registrant provides certain centralized medical and administrative services to our subsidiaries pursuant to administrative services agreements that include, but are not limited to, information technology, product development and administration, underwriting, claims processing, customer service, certain care management services, human resources, marketing, purchasing, risk management, actuarial, finance, accounting, compliance, legal and public relations. Fees are based on the fair market value of services rendered and are recorded as operating revenue. Payment is subordinated to the subsidiaries’ ability to comply with minimum capital and other restrictive financial requirements of the states in which they operate. Charges in 2020, 2019, and 2018 for these services amounted to $1,208 million, $1,038 million, and $1,137 million, respectively, and are included in operating revenue. The Registrant and its subsidiaries are included in the consolidated federal and state income tax returns filed by the Registrant. Income taxes are allocated to each subsidiary in accordance with an intercompany tax allocation agreement. The agreement allocates income taxes in an amount generally equivalent to the amount which would be expensed by the subsidiary if it filed a separate tax return. Net operating loss benefits are paid to the subsidiary by the Registrant to the extent such losses are utilized in the consolidated tax returns. Note C - Dividends and Capital Contributions When the Registrant receives dividends from its subsidiaries, such amounts are recorded as a reduction to the investments in the respective subsidiaries. For all periods presented, the Registrant made capital contributions to certain subsidiaries primarily to comply with minimum net worth requirements and to fund business combinations. Such amounts have been recorded as an increase in investment in the respective subsidiaries.

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

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration