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Condensed Financial Information of Registrant (Tables) | 12 Months Ended
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Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
Condensed balance sheets | Condensed Balance Sheets
| December 31,
| 2022 |  | 2021
| (In millions, except per-share data)
ASSETS
Current assets: |  |  |
Cash and cash equivalents | $ | 329 |  |  | $ | 274 |
Investments | 46 |  |  | 74 |
Due from affiliates | 143 |  |  | 74 |
Prepaid expenses and other current assets | 106 |  |  | 142 |
Total current assets | 624 |  |  | 564 |
Property, equipment, and capitalized software, net | 224 |  |  | 349 |
Goodwill and intangible assets, net | 731 |  |  | 699 |
Investments in subsidiaries | 4,142 |  |  | 3,772 |
Deferred income taxes | 37 |  |  | (18) |
Advances to related parties and other assets | 78 |  |  | 68 |
Total assets | $ | 5,836 |  |  | $ | 5,434 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities: |  |  |
Accounts payable, accrued liabilities and other | $ | 448 |  |  | $ | 378 |
Total current liabilities | 448 |  |  | 378 |
Long-term debt | 2,176 |  |  | 2,173 |
Finance lease liabilities | 215 |  |  | 219 |
Other long-term liabilities | 33 |  |  | 34 |
Total liabilities | 2,872 |  |  | 2,804 |
Stockholders’ equity: |  |  |
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 58 million shares at each of December 31, 2022 and December 31, 2021 | — |  |  | — |
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding | — |  |  | — |
Additional paid-in capital | 328 |  |  | 236 |
Accumulated other comprehensive loss | (160) |  |  | (5) |
Retained earnings | 2,796 |  |  | 2,399 |
Total stockholders’ equity | 2,964 |  |  | 2,630 |
Total liabilities and stockholders’ equity | $ | 5,836 |  |  | $ | 5,434 |
Condensed statements of income | Condensed Statements of Income
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Revenue: |  |  |  |  |
Administrative services fees | $ | 1,826 |  |  | $ | 1,496 |  |  | $ | 1,208 |
Investment income and other revenue | 8 |  |  | 11 |  |  | 13 |
Total revenue | 1,834 |  |  | 1,507 |  |  | 1,221 |
Expenses: |  |  |  |  |
General and administrative expenses | 1,721 |  |  | 1,424 |  |  | 1,089 |
Depreciation and amortization | 141 |  |  | 98 |  |  | 67 |
Impairment | 138 |  |  | — |  |  | — |
Other | — |  |  | 5 |  |  | 24 |
Total operating expenses | 2,000 |  |  | 1,527 |  |  | 1,180 |
Operating (loss) income | (166) |  |  | (20) |  |  | 41 |
Interest expense | 110 |  |  | 120 |  |  | 102 |
Other expenses, net | — |  |  | 25 |  |  | 15 |
Total other expenses, net | 110 |  |  | 145 |  |  | 117 |
Loss before income tax benefit and equity in net earnings of subsidiaries | (276) |  |  | (165) |  |  | (76) |
Income tax benefit | (42) |  |  | (21) |  |  | (5) |
Net loss before equity in net earnings of subsidiaries | (234) |  |  | (144) |  |  | (71) |
Equity in net earnings of subsidiaries | 1,026 |  |  | 803 |  |  | 744 |
Net income | $ | 792 |  |  | $ | 659 |  |  | $ | 673 |
Condensed statements of comprehensive income | Condensed Statements of Comprehensive Income
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Net income | $ | 792 |  |  | $ | 659 |  |  | $ | 673 |
Other comprehensive (loss) income: |  |  |  |  |
Unrealized investment (loss) income | (204) |  |  | (55) |  |  | 44 |
Less: effect of income taxes | (49) |  |  | (13) |  |  | 11 |
Other comprehensive (loss) income, net of tax | (155) |  |  | (42) |  |  | 33 |
Comprehensive income | $ | 637 |  |  | $ | 617 |  |  | $ | 706 |
Condensed statements of cash flows | Condensed Statements of Cash Flows
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In millions)
Operating activities: |  |  |  |  |
Net cash provided by operating activities | $ | 119 |  |  | $ | 60 |  |  | $ | 67 |
Investing activities: |  |  |  |  |
Capital contributions to subsidiaries | (159) |  |  | (440) |  |  | (107) |
Dividends received from subsidiaries | 668 |  |  | 564 |  |  | 635 |
Purchases of investments | (29) |  |  | (27) |  |  | (188) |
Proceeds from sales and maturities of investments | 49 |  |  | 21 |  |  | 282 |
Purchases of property, equipment and capitalized software | (86) |  |  | (70) |  |  | (74) |
Net cash paid in business combinations | — |  |  | (263) |  |  | (1,028) |
Change in amounts due to/from affiliates | (69) |  |  | 40 |  |  | (68) |
Other, net | 3 |  |  | (3) |  |  | 3 |
Net cash provided by (used in) investing activities | 377 |  |  | (178) |  |  | (545) |
Financing activities: |  |  |  |  |
Common stock purchases | (400) |  |  | (128) |  |  | (606) |
Common stock withheld to settle employee tax obligations | (54) |  |  | (53) |  |  | (8) |
Contingent consideration liabilities settled | (20) |  |  | (20) |  |  | — |
Proceeds from senior notes offering, net of issuance costs | — |  |  | 740 |  |  | 1,429 |
Repayment of senior notes | — |  |  | (723) |  |  | (338) |
Repayment of term loan facility | — |  |  | — |  |  | (600) |
Proceeds from borrowings under term loan facility | — |  |  | — |  |  | 380 |
Cash paid for partial termination of warrants | — |  |  | — |  |  | (30) |
Cash paid for partial settlement of conversion option | — |  |  | — |  |  | (27) |
Cash received for partial settlement of call option | — |  |  | — |  |  | 27 |
Repayment of principal amount of convertible notes | — |  |  | — |  |  | (12) |
Other, net | 33 |  |  | 1 |  |  | 2 |
Net cash (used in) provided by financing activities | (441) |  |  | (183) |  |  | 217 |
Net increase (decrease) in cash and cash equivalents | 55 |  |  | (301) |  |  | (261) |
Cash and cash equivalents at beginning of period | 274 |  |  | 575 |  |  | 836 |
Cash and cash equivalents at end of period | $ | 329 |  |  | $ | 274 |  |  | $ | 575 |

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