Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2020

Discontinued Operations

Summary the major classes of assets and liabilities held for sale

The following table summarizes the major classes of assets and liabilities held for sale that were included in the Company’s consolidated balance sheets as of December 31, 2019 and September 30, 2020 (in thousands):

	December 31,		September 30,
	2019		2020
Assets Held For Sale
Cash and cash equivalents ($95,202 and $33,986 restricted at December 31, 2019 and September 30, 2020, respectively)	$	209,497	$	189,811
Accounts receivable, net		209,496		199,951
Short-term and long-term investments ($243,496 and $358,742 restricted at December 31, 2019 and September 30, 2020, respectively)		243,496		404,790
Property and equipment, net		6,710		6,741
Goodwill		211,735		211,735
Other intangible assets, net		85,669		72,108
Other current and long-term assets ($2,387 and $2,387 restricted at December 31, 2019 and September 30, 2020, respectively)		32,386		58,896
Total Assets Held For Sale		998,989		1,144,032
Less: current portion		663,276		1,144,032
Total Assets Held For Sale, Less Current Portion	$	335,713	$	—
Liabilities Held For Sale
Accounts payable	$	4,625	$	3,889
Accrued liabilities		92,170		124,595
Medical claims payable		281,419		284,171
Other medical liabilities		31,769		54,397
Deferred income taxes		15,063		13,804
Tax contingencies		5,388		5,563
Deferred credits and other long-term liabilities		16,850		9,853
Total Liabilities Held For Sale		447,284		496,272
Less: current portion		409,983		496,272
Total Liabilities Held For Sale, Less Current Portion	$	37,301	$	—

Summary of the components of income from discontinued operation

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2020		2019		2020
Managed care and other revenue	$	713,089	$	744,741	$	2,045,474	$	2,200,132
Costs and expenses:
Cost of care		615,309		615,390		1,781,148		1,791,298
Direct service costs and other operating expenses (1)(2)(3)		71,473		89,282		213,064		265,857
Depreciation and amortization		5,267		5,380		15,857		16,085
Interest expense		72		—		213		89
Interest and other income		(3,271)		(901)		(9,686)		(4,919)
Total costs and expenses		688,850		709,151		2,000,596		2,068,410
Income from discontinued operation before income taxes		24,239		35,590		44,878		131,722
Provision for income taxes		7,086		6,647		12,705		47,062
Net income from discontinued operations	$	17,153	$	28,943	$	32,173	$	84,660

(1) Includes stock compensation expense of $207 and $397 for the three months ended September 30, 2019 and 2020, respectively, and $621 and $1,023 for the nine months ended September 30, 2019 and 2020, respectively.

(2) Includes changes in fair value of contingent consideration of $4 and $(2,001) for the three and nine months ended September 30, 2019, respectively.

(3) Includes divestiture related expenses of $2,195 and $6,154 for the three and nine months ended September 30, 2020, respectively.