Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2021

Centene Corporation (Parent Company Only)

Condensed Balance Sheets

(In millions, except shares in thousands and per share data in dollars)


	December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	9	$	668

Short-term investments	1		1
Other current assets	738		24
Total current assets	748		693
Long-term investments	128		129
Investment in subsidiaries	45,117		41,565
Other long-term assets	271		101
Total assets	$	46,264	$	42,488
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITY
Current liabilities:
Current liabilities	$	619	$	133
Current portion of long-term debt	14		—
Total current liabilities	633		133
Long-term debt	18,148		16,393
Other long-term liabilities	461		—
Total liabilities	19,242		16,526
Redeemable noncontrolling interest	82		77
Stockholders' equity:
Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or outstanding at December 31, 2021 and December 31, 2020	—		—
Common stock, $0.001 par value; authorized 800,000 shares; 602,704 issued and 582,479 outstanding at December 31, 2021, and 598,249 issued and 581,479 outstanding at December 31, 2020	1		1
Additional paid-in capital	19,672		19,459
Accumulated other comprehensive earnings	77		337
Retained earnings	8,139		6,792
Treasury stock, at cost (20,225 and 16,770 shares, respectively)	(1,094)		(816)
Total Centene stockholders' equity	26,795		25,773
Noncontrolling interest	145		112
Total stockholders' equity	26,940		25,885
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	46,264	$	42,488

Centene Corporation (Parent Company Only)

Condensed Statements of Operations

(In millions, except per share data in dollars)


	Year Ended December 31,
	2021		2020		2019
Expenses:
Selling, general and administrative expenses	$	9	$	13	$	11
Contingent consideration	—		(1)		(24)
Legal settlement	1,116		—		—
Other income (expense):
Investment and other income	38		5		11
Gain on divestiture	118		104		—
Debt extinguishment costs	(125)		(61)		(30)
Interest expense	(641)		(723)		(394)
Loss before income taxes	(1,735)		(687)		(400)
Income tax benefit	(308)		(331)		(172)
Net (loss) before equity in subsidiaries	(1,427)		(356)		(228)
Equity in earnings from subsidiaries	2,763		2,150		1,537
Net earnings	1,336		1,794		1,309
Loss attributable to noncontrolling interests	11		14		12
Net earnings attributable to Centene	$	1,347	$	1,808	$	1,321

Net earnings per share:
Basic earnings per common share	$	2.31	$	3.17	$	3.19
Diluted earnings per common share	$	2.28	$	3.12	$	3.14

Centene Corporation (Parent Company Only)

Condensed Statements of Cash Flows

(In millions)


	Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Dividends from subsidiaries, return on investment	$	2,194	$	739	$	429
Payments for legal settlement	(298)		—		—
Other operating activities, net	(582)		(287)		(231)
Net cash provided by operating activities	1,314		452		198
Cash flows from investing activities:
Capital contributions to subsidiaries	(1,217)		(761)		(731)
Purchases of investments	(723)		(111)		(124)
Sales and maturities of investments	66		11		—
Dividends from subsidiaries, return of investment	241		87		291
Investments in acquisitions	(151)		(7,188)		(302)
Proceeds from divestitures, net	130		533		—
Intercompany activities	(1,709)		1,185		140
Other investing activities, net	—		(12)		—
Net cash used in investing activities	(3,363)		(6,256)		(726)
Cash flows from financing activities:

Proceeds from long-term debt	9,066		4,870		24,647
Payments of long-term debt	(7,207)		(3,875)		(17,778)
Common stock repurchases	(297)		(626)		(75)

Payments for debt extinguishment	(157)		(81)		(23)
Debt issuance costs	(72)		(120)		(25)

Other financing activities, net	57		47		33
Net cash provided by financing activities	1,390		215		6,779

Net increase (decrease) in cash and cash equivalents	(659)		(5,589)		6,251
Cash and cash equivalents, beginning of period	668		6,257		6
Cash and cash equivalents, end of period	$	9	$	668	$	6,257