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General (Tables)
 6 Months Ended
Jun. 30, 2014
General  
Schedule of customers generating in excess of ten percent of net revenues for respective segment

 In addition to the Maricopa Contract previously discussed, the following customers generated in excess of ten percent of net revenues for the respective segment for the six months ended June 30, 2013 and 2014 (in thousands):

Segment
  Term Date   2013   2014  

Commercial

  

 

              

Customer A

  

June 30, 2014(1)

   $ 103,460   $ 110,492  

Customer B

  

December 31, 2019

     70,919     90,923  

Customer C

  

August 14, 2017

     29,537 *   47,769  

Customer D

  

December 14, 2013(1)

     38,776     —  

Public Sector

  

 

    
 		    
 		  

Customer E

  

June 30, 2015

     129,471     213,000  

Specialty Solutions

  

 

    
 		    
 		  

Customer E

  

December 31, 2015

     60,602     69,988  

Customer F

  

June 30, 2016(2)

     30,580     26,515  

Customer G

  

July 31, 2015

     32,708     34,901  

Customer A

  

November 30, 2016

     1,154 *   26,577  

Customer H

  

January 31, 2016

     22,230     24,593  

Pharmacy Management

  

 

    
 		    
 		  

Customer I

  

November 30, 2014 to December 31, 2014(3)

     65,335     60,972  

Customer J

  

December 31, 2013(4)

     43,274     1,267 *

Customer K

  

March 31, 2014(1)(5)

     31,466     18,055 *
*
Revenue amount did not exceed ten percent of net revenues for the respective segment for the period presented. Amount is shown for comparative purposes only.

(1)
The contract has terminated.

(2)
This contract transitioned from risk to ASO based services effective July 1, 2014.

(3)
The customer has more than one contract. The individual contracts are scheduled to terminate at various points during the time period indicated above.

(4)
The contract has terminated, however, the Company continues to provide services as the contract is transitioned to the new vendor.

(5)
This customer represents a subcontract with a Public Sector customer and is eliminated in consolidation.
Schedule of fair value of assets and liabilities

In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's assets and liabilities that are required to be measured at fair value as of December 31, 2013 and June 30, 2014 (in thousands):

 
   December 31, 2013  
 
   Level 1   Level 2   Level 3   Total  

Assets

                          

Cash and cash equivalents(1)

   $ —   $ 101,028   $ —   $ 101,028  

Restricted cash(2)

     —     128,318     —     128,318  

Investments:

    
 		    
 		    
 		    
 		  

U.S. government and agency securities

     1,129     —     —     1,129  

Obligations of government-sponsored enterprises(3)

     —     8,440     —     8,440  

Corporate debt securities

     —     198,594     —     198,594  

Certificates of deposit

     —     150     —     150  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets held at fair value

   $ 1,129   $ 436,530   $ —   $ 437,659  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​


 

 
   June 30, 2014  
 
   Level 1   Level 2   Level 3   Total  

Assets

                          

Cash and cash equivalents(4)

   $ —   $ 72,729   $ —   $ 72,729  

Restricted cash(5)

     —     71,911     —     71,911  

Investments:

    
 		    
 		    
 		    
 		  

U.S. government and agency securities

     2,078     —     —     2,078  

Obligations of government-sponsored enterprises(3)

     —     8,707     —     8,707  

Corporate debt securities

     —     159,420     —     159,420  

Certificates of deposit

     —     1,150     —     1,150  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total assets held at fair value

   $ 2,078   $ 313,917   $ —   $ 315,995  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Liabilities

                          

Contingent consideration

   $ —   $ —   $ 46,982   $ 46,982  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total liabilities held at fair value

   $ —   $ —   $ 46,982   $ 46,982  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Excludes $102.2 million of cash held in bank accounts by the Company.

(2)
Excludes $108.4 million of restricted cash held in bank accounts by the Company.

(3)
Includes investments in notes issued by the Federal Home Loan Bank.

(4)
Excludes $113.0 million of cash held in bank accounts by the Company.

(5)
Excludes $95.4 million of restricted cash held in bank accounts by the Company.

        
Summary of the Company's liability for contingent consideration
  June 30,
2014		  

Balance as of beginning of period

   $ —  

Acquisition of CDMI

     45,778  

Interest accretion

     1,204  
       
​ ​ ​ ​ ​

Balance as of end of period

   $ 46,982  
       
​ ​ ​ ​ ​
​ ​ ​ ​ ​
       
Summary of short-term and long-term "available-for-sale" investments

The following is a summary of short-term and long-term investments at December 31, 2013 and June 30, 2014 (in thousands):

 
   December 31, 2013  
 
   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Estimated
Fair Value		  

U.S. government and agency securities

   $ 1,129   $ —   $ —   $ 1,129  

Obligations of government-sponsored enterprises(1)

     8,441     2     (3 )   8,440  

Corporate debt securities

     198,748     18     (172 )   198,594  

Certificates of deposit

     150     —     —     150  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total investments at December 31, 2013

   $ 208,468   $ 20   $ (175 ) $ 208,313  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

 

 
   June 30, 2014  
 
   Amortized
Cost		   Gross
Unrealized
Gains		   Gross
Unrealized
Losses		   Estimated
Fair Value		  

U.S. government and agency securities

   $ 2,078   $ 1   $ (1 ) $ 2,078  

Obligations of government-sponsored enterprises(1)

     8,707     2     (2 )   8,707  

Corporate debt securities

     159,387     64     (31 )   159,420  

Certificates of deposit

     1,150     —     —     1,150  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total investments at June 30, 2014

   $ 171,322   $ 67   $ (34 ) $ 171,355  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Includes investments in notes issued by the Federal Home Loan Bank.
Summary of maturity dates of investments

The maturity dates of the Company's investments as of June 30, 2014 are summarized below (in thousands):

 
   Amortized
Cost		   Estimated
Fair Value		  

2014

   $ 97,491   $ 97,489  

2015

     69,149     69,186  

2016

     4,682     4,680  
           
​ ​ ​ ​ ​ ​ ​ ​

Total investments at June 30, 2014

   $ 171,322   $ 171,355  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Schedule of stock option activity

 

 

 
   Options   Weighted
Average
Exercise
Price		  

Outstanding, beginning of period

     4,010,146   $ 47.23  

Granted

     654,636     60.22  

Forfeited

     (137,472 )   52.91  

Exercised

     (813,867 )   44.54  
           
​ ​ ​ ​ ​ ​ ​ ​

Outstanding, end of period

     3,713,443   $ 49.90  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Vested and expected to vest at end of period

     3,670,859   $ 49.83  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Exercisable, end of period

     2,037,633   $ 46.00  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Schedule of nonvested restricted stock award activity

 

 

 
   Shares   Weighted
Average
Grant Date
Fair Value		  

Outstanding, beginning of period

     192,165   $ 56.59  

Awarded(1)

     1,448,674     57.74  

Vested

     (16,569 )   52.82  

Forfeited

     —     —  
           
​ ​ ​ ​ ​ ​ ​ ​

Outstanding, ending of period

     1,624,270   $ 57.65  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Includes 1,433,946 shares associated with the CDMI acquisition.
Schedule of nonvested restricted stock units

 

 

 
   Shares   Weighted
Average
Grant Date
Fair Value		  

Outstanding, beginning of period

     194,913   $ 50.21  

Awarded

     76,306     60.39  

Vested

     (90,177 )   49.55  

Forfeited

     (11,293 )   54.05  
           
​ ​ ​ ​ ​ ​ ​ ​

Outstanding, ending of period

     169,749   $ 54.88  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Schedule of allocation of goodwill by reporting units

Goodwill for each of the Company's reporting units at December 31, 2013 and June 30, 2014 were as follows (in thousands):

 
   December 31,
2013		   June 30,
2014		  

Health Plan

   $ 120,485   $ 120,485  

Specialty Solutions

     104,549     104,549  

Pharmacy Management

     242,290     311,512  

Public Sector

     20,882     20,879  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 488,206   $ 557,425  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Summary changes in the carrying amount of goodwill

The changes in the carry amount of goodwill for the year ended December 31, 2013 and the six months ended June 30, 2014 are reflected in the table below (in thousands):

 
   December 31,
2013		   June 30,
2014		  

Balance as of beginning of period

   $ 426,939   $ 488,206  

Acquisition of Partners Rx(1)

     40,385     254  

Acquisition of AlphaCare Holdings(1)

     20,882     (3 )

Acquisition of CDMI

     —     68,968  
           
​ ​ ​ ​ ​ ​ ​ ​

Balance as of end of period

   $ 488,206   $ 557,425  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Activity for the period ended June 30, 2014 represents measurement period adjustments.
Summary of intangible assets

The following is a summary of intangible assets at December 31, 2013 and June 30, 2014, and the estimated useful lives for such assets (in thousands):

 
   December 31, 2013  
Asset
  Estimated
Useful Life		   Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		  

Customer agreements and lists

   2.5 to 18 years   $ 163,990   $ (100,482 ) $ 63,508  

Provider networks and other

   1 to 16 years     11,593     (5,407 )   6,186  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

       $ 175,583   $ (105,889 ) $ 69,694  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
   June 30, 2014  
Asset
  Estimated
Useful Life		   Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		  

Customer agreements and lists

   2.5 to 18 years   $ 249,290   $ (109,407 ) $ 139,883  

Provider networks and other

   1 to 16 years     13,193     (6,091 )   7,102  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

 

       $ 262,483   $ (115,498 ) $ 146,985  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​