Discontinued Operations (Tables)

6 Months Ended

Jun. 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 June 30, 2020 (in thousands):

	December 31,		June 30,
	2019		2020
Assets Held For Sale
Cash and cash equivalents ($95,202 and $69,971 restricted at December 31, 2019 and June 30, 2020, respectively)	$	209,497	$	235,873
Accounts receivable, net		209,496		163,216
Short-term and long-term investments ($243,496 and $343,348 restricted at December 31, 2019 and June 30, 2020, respectively)		243,496		398,741
Property and equipment, net		6,710		7,477
Goodwill		211,735		211,735
Other intangible assets, net		85,669		76,628
Other current and long-term assets ($2,387 and $2,387 restricted at December 31, 2019 and June 30, 2020, respectively)		32,386		52,234
Total Assets Held For Sale		998,989		1,145,904
Less: current portion		663,276		1,145,904
Total Assets Held For Sale, Less Current Portion	$	335,713	$	—
Liabilities Held For Sale
Accounts payable	$	4,625	$	3,449
Accrued liabilities		92,170		145,558
Medical claims payable		281,419		271,998
Other medical liabilities		31,769		50,384
Deferred income taxes		15,063		13,910
Tax contingencies		5,388		5,462
Deferred credits and other long-term liabilities		16,850		13,698
Total Liabilities Held For Sale		447,284		504,459
Less: current portion		409,983		504,459
Total Liabilities Held For Sale, Less Current Portion	$	37,301	$	—

Summary of the components of income from discontinued operation

The following table summarizes the components of income from discontinued operations that is included in the Company’s consolidated income statements for the three and six months ended June 30, 2019 and 2020 (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2020		2019		2020
Managed care and other revenue	$	674,760	$	735,357	$	1,332,385	$	1,455,391
Costs and expenses:
Cost of care		592,975		573,374		1,165,839		1,175,908
Direct service costs and other operating expenses (1)(2)(3)		71,346		92,078		141,591		176,575
Depreciation and amortization		5,299		5,379		10,590		10,705
Interest expense		71		18		141		89
Interest and other income		(3,200)		(1,478)		(6,415)		(4,018)
Total costs and expenses		666,491		669,371		1,311,746		1,359,259
Income from discontinued operation before income taxes		8,269		65,986		20,639		96,132
Provision for income taxes		1,871		29,589		5,619		40,415
Net income from discontinued operations	$	6,398	$	36,397	$	15,020	$	55,717

(1) Includes stock compensation expense of $207 and $366 for the three months ended June 30, 2019 and 2020, respectively, and $414 and $626 for the six months ended June 30, 2019 and 2020, respectively.

(2) Includes changes in fair value of contingent consideration of $(2,149) and $(2,005) for the three and six months ended June 30, 2019, respectively.

(3) Includes divestiture related expenses of $3,353 and $3,958 for the three and six months ended June 30, 2020, respectively.