EQUITY METHOD INVESTMENT

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Prior to our acquisition of KAH in August 2021, we accounted for our 40% investment in KAH using the equity method of accounting. This investment was reflected in "Equity method investments" in our December 31, 2020 consolidated balance sheet, with our share of income or loss reported as Equity in net earnings in our consolidated statements of income.

The summarized balance sheet at December 31, 2020 and statements of income at December 31, 2020 and 2019 of KAH were as follows:


Balance sheet	December 31, 2020

	(in millions)
Current assets	$	844
Non-current assets	4,858
Current liabilities	556
Non-current liabilities	2,445
Shareholders' equity	2,700


Statements of income
	For the year ended December 31, 2020		For the year ended December 31, 2019
	(in millions)
Revenues	$	2,972	$	3,100
Expenses	2,552		2,835
Net income	207		54

Other insignificant equity method investments

In the first quarter of 2020, our Primary Care Organization entered into a strategic partnership with Welsh, Carson, Anderson & Stowe, or WCAS, to accelerate the expansion of our primary care model. As of December 31, 2021, there were 31 primary care clinics operating under the partnership and we intend to open an additional 36 in future periods under the existing arrangement. In addition, the agreement includes a series of put and call options through which WCAS may require us to purchase their interest in the entity and, through which we may acquire WCAS’s interest over the next 4 to 9 years.

We have several individually immaterial equity method investments, including our PIPC strategic partnership with WCAS as described above, included within Equity method investments in our consolidated balance sheets as of December 31, 2021, with our share of income or loss reported as Equity in net earnings in our consolidated statements of income for the years ended December 31, 2021 and 2020.