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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2024
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Registrant Condensed Financial Information of Registrant
The condensed balance sheets as of December 31, 2024 and 2023, and the related condensed statements of income, comprehensive income and cash flows for each of the three years in the period ended December 31, 2024 for our parent company Molina Healthcare, Inc. (the “Registrant”), are presented below.
Condensed Balance Sheets
 December 31,
 20242023
 
(In millions, except per-share data)
ASSETS
Current assets: 
Cash and cash equivalents$414 $694 
Investments31 48 
Receivables4 — 
Due from affiliates111 174 
Prepaid expenses and other current assets218 133 
Total current assets778 1,049 
Property, equipment, and capitalized software, net250 234 
Goodwill and intangible assets, net1,348 825 
Investments in subsidiaries5,697 4,911 
Deferred income taxes, net— 57 
Advances to related parties and other assets102 94 
Total assets$8,175 $7,170 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:  
Accounts payable, accrued liabilities and other$473 $527 
Total current liabilities473 527 
Long-term debt2,923 2,180 
Finance lease liabilities195 205 
Deferred income taxes, net34 — 
Other long-term liabilities54 43 
Total liabilities3,679 2,955 
Stockholders’ equity:
Common stock, $0.001 par value; 150 million shares authorized; outstanding: 56 million shares at December 31, 2024 and 58 million at December 31, 2023
— — 
Preferred stock, $0.001 par value; 20 million shares authorized, no shares issued and outstanding
— — 
Additional paid-in capital462 410 
Accumulated other comprehensive loss(57)(82)
Retained earnings4,091 3,887 
Total stockholders’ equity4,496 4,215 
Total liabilities and stockholders’ equity$8,175 $7,170 
See accompanying notes.
Condensed Statements of Income
 Year Ended December 31,
 202420232022
 (In millions)
Revenue:   
Administrative services fees$2,145 $2,038 $1,826 
Investment income and other revenue19 27 8 
Total revenue2,164 2,065 1,834 
Expenses: 
General and administrative expenses2,039 1,952 1,721 
Depreciation and amortization139 131 141 
Impairment— — 138 
Other29 20 — 
Total operating expenses2,207 2,103 2,000 
Operating loss(43)(38)(166)
Interest expense118 109 110 
Loss before income tax benefit and equity in net earnings of subsidiaries(161)(147)(276)
Income tax expense (benefit)7 (7)(42)
Net loss before equity in net earnings of subsidiaries(168)(140)(234)
Equity in net earnings of subsidiaries1,347 1,231 1,026 
Net income$1,179 $1,091 $792 
Condensed Statements of Comprehensive Income
Year Ended December 31,
202420232022
(In millions)
Net income$1,179 $1,091 $792 
Other comprehensive income (loss):
Unrealized investment income (loss)33 102 (204)
Less: effect of income taxes8 24 (49)
Other comprehensive income (loss), net of tax25 78 (155)
Comprehensive income$1,204 $1,169 $637 
See accompanying notes.
Condensed Statements of Cash Flows
 Year Ended December 31,
 202420232022
 (In millions)
Operating activities:   
Net cash provided by operating activities$63 $81 $119 
Investing activities: 
Capital contributions to subsidiaries(490)(221)(159)
Dividends received from subsidiaries997 705 668 
Purchases of investments— (2)(29)
Proceeds from sales and maturities of investments17 1 49 
Purchases of property, equipment and capitalized software(97)(79)(86)
Net cash paid in business combinations (489)(74)— 
Change in amounts due to/from affiliates60 5 (69)
Other, net6 7 3 
Net cash provided by investing activities4 342 377 
Financing activities: 
Common stock purchases
(1,000)— (400)
Proceeds from senior notes offering, net of issuance costs740 — — 
Proceeds from borrowings under credit facility300 — — 
Repayment of credit facility(300)— — 
Common stock withheld to settle employee tax obligations (57)(60)(54)
Contingent consideration liabilities settled— — (20)
Other, net(30)2 33 
Net cash used in financing activities(347)(58)(441)
Net (decrease) increase in cash and cash equivalents(280)365 55 
Cash and cash equivalents at beginning of period
694 329 274 
Cash and cash equivalents at end of period
$414 $694 $329 
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 2024, 2023, and 2022 for these services amounted to $2,145 million, $2,038 million, and $1,826 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.