General (Tables)

9 Months Ended

Sep. 30, 2020

General

Schedule of disaggregation of revenue by major service line, type of customer and timing of revenue recognition

	Three Months Ended September 30, 2019
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	383,768	$	—	$	(76)	$	383,692
EAP risk-based		80,076		—		—		80,076
ASO		57,535		9,475		(42)		66,968
PBM, including dispensing		—		495,759		(4,772)		490,987
Medicare Part D		—		76,327		—		76,327
PBA		—		35,768		—		35,768
Formulary management		—		23,976		—		23,976
Other		—		749		—		749
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543
Type of Customer
Government	$	277,884	$	215,197	$	—	$	493,081
Non-government		243,495		426,857		(4,890)		665,462
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543
Timing of Revenue Recognition
Transferred at a point in time	$	—	$	572,086	$	(4,772)	$	567,314
Transferred over time		521,379		69,968		(118)		591,229
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543

	Three Months Ended September 30, 2020
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	352,442	$	—	$	(95)	$	352,347
EAP risk-based		74,703		—				74,703
ASO		62,306		11,631		(50)		73,887
PBM, including dispensing		—		540,615		(5,117)		535,498
Medicare Part D		—		65,931		—		65,931
PBA		—		35,068		—		35,068
Formulary management		—		31,327		—		31,327
Other		—		1,356		—		1,356
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117
Type of Customer
Government	$	240,845	$	210,040	$	—	$	450,885
Non-government		248,606		475,888		(5,262)		719,232
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117
Timing of Revenue Recognition
Transferred at a point in time	$	—	$	606,546	$	(5,117)	$	601,429
Transferred over time		489,451		79,382		(145)		568,688
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117

	Nine Months Ended September 30, 2019
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	1,146,592	$	—	$	(219)	$	1,146,373
EAP risk-based		256,989		—				256,989
ASO		170,733		27,945		(215)		198,463
PBM, including dispensing		—		1,469,151		(13,214)		1,455,937
Medicare Part D		—		209,510		—		209,510
PBA		—		103,220		—		103,220
Formulary management		—		59,585		—		59,585
Other		—		1,761		—		1,761
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838
Type of Customer
Government	$	694,534	$	624,569	$	—	$	1,319,103
Non-government		879,780		1,246,603		(13,648)		2,112,735
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838
Timing of Revenue Recognition
Transferred at a point in time	$	—	$	1,678,661	$	(13,214)	$	1,665,447
Transferred over time		1,574,314		192,511		(434)		1,766,391
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838

	Nine Months Ended September 30, 2020
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	1,046,486	$	—	$	(277)	$	1,046,209
EAP risk-based		232,060		—		—		232,060
ASO		180,832		35,436		(218)		216,050
PBM, including dispensing		—		1,558,211		(14,515)		1,543,696
Medicare Part D		—		178,308		—		178,308
PBA		—		96,008		—		96,008
Formulary management		—		78,550		—		78,550
Other		—		1,690		—		1,690
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571
Type of Customer
Government	$	690,340	$	622,986	$	—	$	1,313,326
Non-government		769,038		1,325,217		(15,010)		2,079,245
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571
Timing of Revenue Recognition
Transferred at a point in time	$	—	$	1,736,519	$	(14,515)	$	1,722,004
Transferred over time		1,459,378		211,684		(495)		1,670,567
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571

Schedule of accounts receivable, contract assets and contract liabilities

	December 31,		September 30,
	2019		2020		$ Change		% Change
Accounts receivable	$	717,455	$	822,354	$	104,899		14.6%
Contract assets		2,162		12,419		10,257		474.4%
Contract liabilities - current		6,728		12,071		5,343		79.4%
Contract liabilities - long-term		11,099		11,480		381		3.4%

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

Segment	Term Date	2019			2020
Healthcare
Customer A	December 31, 2021	$	243,813		$	259,286
Customer B	December 31, 2022		154,558	*		147,177
Pharmacy Management
Customer C	March 31, 2024		259,826			284,697

* Revenue amount did not exceed 10 percent of net revenues for the respective segment for the period presented.

Amount is shown for comparative purposes only.

Schedule of leases

	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Operating lease cost	$	2,208	$	6,812
Finance lease cost:
Amortization of right-of-use asset		1,193		3,571
Interest on lease liabilities		183		610
Total finance lease cost		1,376		4,181
Short-term lease cost		58		262
Variable lease cost		818		1,829
Total lease cost		4,460		13,084
Sublease income		(66)		(245)
Net lease cost	$	4,394	$	12,839

	September 30, 2020
Operating leases:
Other long-term assets	$	17,453
Accrued liabilities	$	9,762
Deferred credits and other long-term liabilities		23,990
Total operating lease liabilities	$	33,752
Finance leases:
Property and equipment, net	$	13,100
Current debt, finance lease and deferred financing obligations	$	4,416
Long-term debt, finance lease and deferred financing obligations		13,186
Total finance lease liabilities	$	17,602

	September 30, 2020
Weighted average remaining lease term
Operating leases		3.25
Finance leases		3.92
Weighted average discount rate
Operating leases		4.79%
Finance leases		4.39%

Nine months ended September 30, 2020

Schedule of maturity dates of leases

	September 30, 2020
2020	$	4,106
2021		14,417
2022		13,460
2023		9,815
2024		8,190
2025 and beyond		2,891
Total lease payments		52,879
Less interest		(1,525)
Present value of lease liabilities	$	51,354

Schedule of fair value of financial assets and liabilities

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents (1)	$	—	$	111,085	$	—	$	111,085
Investments:
U.S. Government and agency securities		30,775		—		—		30,775
Corporate debt securities		—		69,581		—		69,581
Certificates of deposit		—		1,305		—		1,305
Total assets held at fair value	$	30,775	$	181,971	$	—	$	212,746

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents (2)	$	—	$	146,846	$	—	$	146,846
Investments:
U.S. Government and agency securities		35,402		—		—		35,402
Corporate debt securities		—		61,596		—		61,596
Certificates of deposit		—		1,311		—		1,311
Total assets held at fair value	$	35,402	$	209,753	$	—	$	245,155

(1) Excludes $4.7 million of cash held in bank accounts by the Company.

(2) Excludes $5.2 million of cash held in bank accounts by the Company.

Summary of short-term and long-term investments

	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
U.S. Government and agency securities	$	30,742	$	38	$	(5)	$	30,775
Corporate debt securities		69,552		40		(11)		69,581
Certificates of deposit		1,305		—		—		1,305
Total investments at December 31, 2019	$	101,599	$	78	$	(16)	$	101,661

	September 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
U.S. Government and agency securities	$	35,364	$	39	$	(1)	$	35,402
Corporate debt securities		61,611		20		(35)		61,596
Certificates of deposit		1,311		—		—		1,311
Total investments at September 30, 2020	$	98,286	$	59	$	(36)	$	98,309

Summary of maturity dates of investments

	Amortized		Estimated
	Cost		Fair Value
2020	$	31,033	$	31,053
2021		65,705		65,708
2022		1,548		1,548
Total investments at September 30, 2020	$	98,286	$	98,309

Schedule of stock option activity

Summarized information related to the Company’s stock options for the nine months ended September 30, 2020 is as follows:

		Weighted
		Average
		Exercise
	Options	Price
Outstanding, beginning of period	2,125,861	$	69.22
Granted	63,771		62.93
Forfeited	(51,104)		80.44
Exercised	(804,523)		60.47
Outstanding, end of period	1,334,005	$	73.76
Vested and expected to vest at end of period	1,328,930	$	73.79
Exercisable, end of period	1,029,691	$	74.45

Schedule of nonvested restricted stock award activity

Summarized information related to the Company’s nonvested restricted stock awards (“RSAs”) for the nine months ended September 30, 2020 is as follows:

		Weighted
		Average
		Grant Date
	Shares	Fair Value
Outstanding, beginning of period	39,761	$	65.40
Awarded	16,976		70.70
Vested	(39,761)		65.40
Forfeited	—		—
Outstanding, ending of period	16,976		70.70

Schedule of nonvested restricted stock units

Summarized information related to the Company’s nonvested restricted stock units (“RSUs”) for the nine months ended September 30, 2020 is as follows:

		Weighted
		Average
		Grant Date
	Shares	Fair Value
Outstanding, beginning of period	256,430	$	74.12
Awarded	344,774		62.02
Vested	(100,416)		74.93
Forfeited	(32,202)		66.90
Outstanding, ending of period	468,586		65.54

Schedule of nonvested restricted performance stock units

Summarized information related to the Company’s nonvested restricted performance stock units (“PSUs”) for the nine months ended September 30, 2020 is as follows:

		Weighted
		Average
		Grant Date
	Shares	Fair Value
Outstanding, beginning of period	248,559	$	104.27
Awarded	133,752		75.65
Vested	(52,861)		76.24
Forfeited	(48,008)		85.68
Outstanding, end of period	281,442		99.11

Schedule of the components of debt and finance lease obligations

	December 31,		September 30,
	2019		2020
Senior Notes	$	388,432	$	359,607
Term loan		280,625		267,500
Finance leases - land and equipment		18,076		17,602
Finance leases - software as service arrangements		1,194		1,215
Deferred loan costs		(5,711)		(4,523)
Total debt and finance lease obligations	$	682,616	$	641,401