Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2020

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


	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

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