General (Tables)

9 Months Ended

Sep. 30, 2015

Summary of revenues and covered lives for Healthcare segment by product classification and customer type

The following tables summarize, for the periods indicated, revenues and covered lives for Healthcare by product classification and customer type (in thousands):

	Revenue for nine months ended September 30, 2015
	Risk-based		ASO		Total
Commercial
Behavioral(1)	$	245,493	$	93,193	$	338,686
Specialty		353,896		42,162		396,058
Government(2)		1,383,627		51,990		1,435,617

Total	$	1,983,016	$	187,345	$	2,170,361

	Covered lives as of September 30, 2015
	Risk-based		ASO
Commercial
Behavioral(1)		12,815		12,518
Specialty		7,704		16,538
Government(2)		5,059		1,946


(1)	Includes revenues of $36.9 million from EAP services provided on a risk basis to health plans and employers with 10.2 million covered lives.
(2)	Includes revenues of $115.1 million from EAP services provided on a risk basis to federal governmental entities with 3.5 million covered lives.

Schedule of customers generating in excess of ten percent of net revenues for respective segment

In addition to the Iowa Contracts, the Florida Contracts, and the Maricopa Contract previously discussed, the following customers generated in excess of ten percent of net revenues for the respective segment for the nine months ended September 30, 2014 and 2015 (in thousands):

Segment	Term Date	2014		2015
Healthcare
None
Pharmacy Management
Customer A	November 30, 2015 to April 4, 2016(1)		92,793		93,908	*
Customer B	December 16, 2016		105,079		241,556


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

Schedule of fair value of financial 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, 2014 and September 30, 2015 (in thousands):

	December 31, 2014
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents(1)	$	—	$	139,280	$	—	$	139,280
Restricted cash(2)		—		65,992		—		65,992
Investments:
U.S. government and agency securities		4,303		—		—		4,303
Obligations of government-sponsored enterprises(3)		—		15,315		—		15,315
Corporate debt securities		—		246,886		—		246,886
Certificates of deposit		—		1,150		—		1,150

Total assets held at fair value	$	4,303	$	468,623	$	—	$	472,926


Liabilities
Contingent consideration	$	—	$	—	$	58,153	$	58,153

Total liabilities held at fair value	$	—	$	—	$	58,153	$	58,153

	September 30, 2015
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents(4)	$	—	$	45,091	$	—	$	45,091
Restricted cash(5)		—		61,220		—		61,220
Investments:
U.S. government and agency securities		4,982		—		—		4,982
Obligations of government-sponsored enterprises(6)		—		43,067		—		43,067
Corporate debt securities		—		321,606		—		321,606
Certificates of deposit		—		1,150		—		1,150

Total assets held at fair value	$	4,982	$	472,134	$	—	$	477,116


Liabilities
Contingent consideration	$	—	$	—	$	108,443	$	108,443

Total liabilities held at fair value	$	—	$	—	$	108,443	$	108,443


(1)	Excludes $116.0 million of cash held in bank accounts by the Company.
(2)	Excludes $149.3 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 $51.8 million of cash held in bank accounts by the Company.
(5)	Excludes $74.1 million of restricted cash held in bank accounts by the Company.
(6)	Includes investments in notes issued by the Federal Home Loan Bank and Federal Farm Credit Banks.

Summary of the Company's liability for contingent consideration

The following table summarizes the Company's liability for contingent consideration for the nine months ended (in thousands):

	September 30, 2015
Balance as of beginning of period	$	58,153
Acquistion of 4D		19,290
Change in fair value		47,274
Payments		(16,274	)

Balance as of end of period	$	108,443

Summary of short-term and long-term "available-for-sale" investments

As of December 31, 2014 and September 30, 2015, there were no unrealized losses that the Company determined to be other-than-temporary. No realized gains or losses were recorded for the nine months ended September 30, 2014 or 2015. The following is a summary of short-term and long-term investments at December 31, 2014 and September 30, 2015 (in thousands):

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	4,305	$	—	$	(2	)	$	4,303
Obligations of government-sponsored enterprises(1)		15,318		1		(4	)		15,315
Corporate debt securities		247,118		8		(240	)		246,886
Certificates of deposit		1,150		—		—			1,150

Total investments at December 31, 2014	$	267,891	$	9	$	(246	)	$	267,654

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government and agency securities	$	4,976	$	6	$	—		$	4,982
Obligations of government-sponsored enterprises(2)		43,045		25		(3	)		43,067
Corporate debt securities		321,817		24		(235	)		321,606
Certificates of deposit		1,150		—		—			1,150

Total investments at September 30, 2015	$	370,988	$	55	$	(238	)	$	370,805


(1)	Includes investments in notes issued by the Federal Home Loan Bank.
(2)	Includes investments in notes issued by the Federal Home Loan Bank and Federal Farm Credit Banks.

Summary of maturity dates of investments

The maturity dates of the Company's investments as of September 30, 2015 are summarized below (in thousands):

	Amortized Cost		Estimated Fair Value
2015	$	110,723	$	110,679
2016		258,579		258,439
2017		1,686		1,687

Total investments at September 30, 2015	$	370,988	$	370,805

Schedule of stock option activity

Summarized information related to the Company's stock options for the nine months ended September 30, 2015 is as follows:

	Options			Weighted Average Exercise Price
Outstanding, beginning of period		3,321,063		$	50.58
Granted		902,928			63.61
Forfeited		(140,940	)		60.21
Exercised		(1,062,878	)		47.17

Outstanding, end of period		3,020,173		$	55.23


Vested and expected to vest at end of period		2,983,943		$	55.15


Exercisable, end of period		1,417,576		$	49.46

Schedule of Non vested restricted stock award activity

Summarized information related to the Company's nonvested restricted stock awards ("RSAs") for the nine months ended September 30, 2015 is as follows:

	Shares			Weighted Average Grant Fair Value
Outstanding, beginning of period		1,626,827		$	57.66
Awarded		20,115			67.12
Vested		(94,547	)		57.48
Forfeited		—			—

Outstanding, end of period		1,552,395		$	57.79

Schedule of Non vested restricted stock units

Summarized information related to the Company's nonvested restricted stock units ("RSUs") for the nine months ended September 30, 2015 is as follows:

	Shares			Weighted Average Grant Fair Value
Outstanding, beginning of period		156,695		$	54.88
Awarded		172,810			63.95
Vested		(79,036	)		52.82
Forfeited		(21,144	)		61.65

Outstanding, end of period		229,325		$	61.80