XML 59 R11.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting Information, Additional Information [Abstract]  
Segment Information
SEGMENT INFORMATION
Our reportable segments are comprised of Western Region Operations and Government Contracts. Our Western Region Operations reportable segment includes the operations of our commercial, Medicare, Medicaid and dual eligibles health plans, our health and life insurance companies, our pharmaceutical services subsidiaries and certain operations of our behavioral health subsidiaries. These operations are conducted primarily in California, Arizona, Oregon and Washington. Our Government Contracts reportable segment includes government-sponsored managed care and administrative services contracts through the TRICARE program, the Department of Defense Military and Family Life Counseling program, the U.S. Department of Veterans Affairs Patient Centered Community Care program and certain other health care-related government contracts. In connection with the Cognizant Transaction, we reviewed our reportable segments and determined that no changes to our reportable segments were necessary. See Note 3 for additional information regarding the Cognizant Transaction.
The financial results of our reportable segments are reviewed on a monthly basis by our chief operating decision maker ("CODM"). We continuously monitor our reportable segments to ensure they reflect how our CODM manages our company.
We evaluate performance and allocate resources based on segment pretax income and net income. Our assets are managed centrally and viewed by our CODM on a consolidated basis; therefore, they are not allocated to our segments and our segments are not evaluated for performance based on assets. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (see Note 2), except that intersegment transactions are not eliminated.
We also have a Corporate/Other segment that is not a business operating segment. It is added to our reportable segments to provide a reconciliation to our consolidated results. The Corporate/Other segment includes costs that are excluded from the calculation of segment pretax income and net income because they are not managed within the segments and are not directly identified with a particular operating segment. Accordingly, these costs are not included in the performance evaluation of our reportable segments by our CODM. In addition, certain charges, including but not limited to those related to our continuing efforts to address scale issues as well as asset impairments, are reported as part of Corporate/Other.
Our segment information for the three and six months ended June 30, 2015 and 2014 are as follows:
 
Western Region
Operations 
 
Government
Contracts
 
Corporate/Other/
Eliminations 
 
Total
 
(Dollars in millions)
Three months ended June 30, 2015
 
 
 
 
 
 
 
Revenues from external sources
$
4,022.6

 
$
141.0

 
$
—

 
$
4,163.6

Intersegment revenues
3.4

 
—

 
(3.4
)
 
—

Segment pretax income (loss)
154.7

 
3.8

 
(26.4
)
 
132.1

Segment net income (loss)
72.4

 
2.2

 
(16.2
)
 
58.4

Three months ended June 30, 2014
 
 
 
 
 
 
 
Revenues from external sources
$
3,267.3

 
$
154.1

 
$
—

 
$
3,421.4

Intersegment revenues
3.1

 
—

 
(3.1
)
 
—

Segment pretax income (loss)
80.7

 
21.4

 
(3.3
)
 
98.8

Segment net income (loss)
37.8

 
12.5

 
70.6

 
120.9

Six months ended June 30, 2015
 
 
 
 
 
 
 
Revenues from external sources
$
7,757.8

 
$
295.7

 
$
—

 
$
8,053.5

Intersegment revenues
6.8

 
—

 
(6.8
)
 
—

Segment pretax income (loss)
256.7

 
16.8

 
(73.7
)
 
199.8

Segment net income (loss)
123.1

 
9.8

 
(44.5
)
 
88.4

Six months ended June 30, 2014
 
 
 
 
 
 
 
Revenues from external sources
$
6,162.1

 
$
298.2

 
$
—

 
$
6,460.3

Intersegment revenues
6.1

 
—

 
(6.1
)
 
—

Segment pretax income (loss)
133.7

 
34.5

 
(7.4
)
 
160.8

Segment net income (loss)
61.4

 
20.1

 
68.1

 
149.6

Our health plan services premium revenue by line of business for the three and six months ended June 30, 2015 and 2014 are as follows:
 
Three months ended June 30,
 
Six months ended June 30,
 
2015
 
2014
 
2015
 
2014
 
(Dollars in millions)
Commercial premium revenue
$
1,412.9

 
$
1,377.5

 
$
2,745.9

 
$
2,641.6

Medicare premium revenue
782.4

 
757.2

 
1,551.3

 
1,512.4

Medicaid premium revenue
1,673.1

 
1,121.9

 
3,144.4

 
1,983.9

Dual Eligibles premium revenue
135.0

 
5.3

 
282.6

 
5.3

Total health plan services premiums
$
4,003.4

 
$
3,261.9

 
$
7,724.2

 
$
6,143.2