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Variable Interest Entity
12 Months Ended
Dec. 31, 2023
Variable Interest Entity, Measure of Activity [Abstract]  
Variable Interest Entity

Note 12—Variable Interest Entity

On July 15, 2021 (the “Effective Date”), we entered into an agreement whereby we obtained an 80.2% interest in DomaniRx, LLC (“DomaniRx”), a variable interest entity under GAAP. The purpose of DomaniRx is to develop a contemporary, cloud-native platform to support the operation of a full service pharmacy benefits manager. At formation, we contributed cash, a non-exclusive license of our claims processing platform known as RxNova and assigned a services agreement we have with one of the other parties in the agreement. The other parties contributed cash and other intangible assets at formation. We will perform development work, day-to-day management, services related to the fulfillment of the assigned services agreement and certain shared services under subcontract with DomaniRx in exchange for market-based fees.

In addition to the initial contributions, each member of the agreement is responsible for future additional cash capital contributions in accordance with each member's ownership interest in DomaniRx at the time of the call. Our additional cash capital contribution is up to $240.6 million. We are then solely responsible for a further development cost overage of up to $100.0 million for no additional ownership interest.

We have the power to direct the majority of the activities of DomaniRx that most significantly impact its economic performance, the obligation to absorb losses and the right to receive benefits from DomaniRx. Accordingly, we determined that we are the primary beneficiary of DomaniRx and consolidate its results.

The carrying value of the assets and liabilities associated with DomaniRx included in the Consolidated Balance Sheets as of December 31, 2023 and 2022, which are limited for use in its operations and do not have recourse against our general credit or our senior secured credit facilities, are as follows:

 

 

December 31,

 

 

 

2023

 

2022

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

100.2

 

$

134.1

 

Intangible assets

 

 

193.3

 

 

160.5

 

Other assets

 

 

3.2

 

 

0.6

 

Liabilities:

 

 

 

 

 

Other liabilities

 

 

3.9

 

 

10.0