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Condensed Financial Information of Registrant (Tables) | 12 Months Ended
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Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract] |
Condensed balance sheets | 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 |
Condensed statements of income | 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 | 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 |
Condensed statements of cash flows | 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 |

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