2016 Q4 Form 10-K Financial Statement

#000117992917000046 Filed on March 01, 2017

View on sec.gov

Income Statement

Concept 2016 Q4 2015 Q4 2015 Q3
Revenue $4.534B $3.871B $3.611B
YoY Change 17.14% 38.19% 45.35%
Cost Of Revenue $3.967B $3.303B $3.050B
YoY Change 20.1% 39.87% 42.66%
Gross Profit $354.0M $567.6M $374.0M
YoY Change -37.63% 29.15% 7.97%
Gross Profit Margin 7.81% 14.66% 10.36%
Selling, General & Admin $536.0M $463.3M $422.7M
YoY Change 15.69% 45.69% 49.68%
% of Gross Profit 151.41% 81.62% 113.02%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $47.00M $33.40M $30.50M
YoY Change 40.72% -4.3% -9.76%
% of Gross Profit 13.28% 5.88% 8.16%
Operating Expenses $573.0M $491.3M $448.6M
YoY Change 16.63% 43.24% 46.27%
Operating Profit -$6.000M $76.00M $113.0M
YoY Change -107.89% -21.65% 182.5%
Interest Expense -$25.00M -$20.90M $15.00M
YoY Change 19.62% 43.15% 4.03%
% of Operating Profit -27.5% 13.27%
Other Income/Expense, Net $900.0K $15.00M
YoY Change -198.15%
Pretax Income -$31.00M $56.30M $98.00M
YoY Change -155.06% -31.26% 300.05%
Income Tax $16.00M $26.70M $52.00M
% Of Pretax Income 47.42% 53.06%
Net Earnings -$47.00M $30.00M $46.00M
YoY Change -256.67% -11.76% 187.5%
Net Earnings / Revenue -1.04% 0.78% 1.27%
Basic Earnings Per Share -$0.85 $0.54 $0.84
Diluted Earnings Per Share -$0.85 $0.52 $0.77
COMMON SHARES
Basic Shares Outstanding 56.82M shares 56.08M shares 55.00M shares
Diluted Shares Outstanding 60.00M shares

Balance Sheet

Concept 2016 Q4 2015 Q4 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.577B $4.130B $3.626B
YoY Change 10.82% 61.45% 48.52%
Cash & Equivalents $2.819B $2.329B $2.164B
Short-Term Investments $1.758B $1.801B $1.462B
Other Short-Term Assets $398.0M $566.0M $120.4M
YoY Change -29.68% 1012.33% 46.76%
Inventory
Prepaid Expenses
Receivables $974.0M $597.0M $619.9M
Other Receivables $39.00M $13.00M $0.00
Total Short-Term Assets $5.988B $5.306B $4.910B
YoY Change 12.85% 65.66% 64.36%
LONG-TERM ASSETS
Property, Plant & Equipment $454.0M $393.0M $374.9M
YoY Change 15.52% 15.25% 14.1%
Goodwill $620.0M $519.0M $321.2M
YoY Change 19.46% 90.81% 35.74%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $41.00M $28.00M $36.61M
YoY Change 46.43% -6.67% -28.36%
Total Long-Term Assets $1.461B $1.270B $1.005B
YoY Change 15.04% 3.08% -5.98%
TOTAL ASSETS
Total Short-Term Assets $5.988B $5.306B $4.910B
Total Long-Term Assets $1.461B $1.270B $1.005B
Total Assets $7.449B $6.576B $5.915B
YoY Change 13.28% 48.28% 45.83%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $385.0M $362.0M $274.1M
YoY Change 6.35% 49.59% -55.02%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $472.0M $449.0M $450.8M
YoY Change 5.12% 3679.49%
Total Short-Term Liabilities $4.570B $3.822B $3.861B
YoY Change 19.57% 75.72% 99.43%
LONG-TERM LIABILITIES
Long-Term Debt $975.0M $1.160B $476.5M
YoY Change -15.95% 30.78% -46.87%
Other Long-Term Liabilities $42.00M $37.00M $32.27M
YoY Change 13.51% 8.82% 14.03%
Total Long-Term Liabilities $1.017B $1.197B $32.27M
YoY Change -15.04% 29.97% 14.03%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.570B $3.822B $3.861B
Total Long-Term Liabilities $1.017B $1.197B $32.27M
Total Liabilities $5.800B $5.019B $4.397B
YoY Change 15.56% 46.54% 42.21%
SHAREHOLDERS EQUITY
Retained Earnings $810.0M $758.0M $728.7M
YoY Change 6.86% 23.25% 25.31%
Common Stock $841.0M $803.0M $789.9M
YoY Change 4.73% 102.78% 106.08%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.649B $1.557B $1.518B
YoY Change
Total Liabilities & Shareholders Equity $7.449B $6.576B $5.915B
YoY Change 13.28% 48.28% 45.83%

Cashflow Statement

Concept 2016 Q4 2015 Q4 2015 Q3
OPERATING ACTIVITIES
Net Income -$47.00M $30.00M $46.00M
YoY Change -256.67% -11.76% 187.5%
Depreciation, Depletion And Amortization $47.00M $33.40M $30.50M
YoY Change 40.72% -4.3% -9.76%
Cash From Operating Activities $40.00M $219.2M $258.1M
YoY Change -81.75% 0.05% -57.39%
INVESTING ACTIVITIES
Capital Expenditures -$33.00M -$31.60M -$34.50M
YoY Change 4.43% -26.68% 1.17%
Acquisitions
YoY Change
Other Investing Activities -$42.00M -$723.3M -$73.70M
YoY Change -94.19% 212.71% -40.95%
Cash From Investing Activities -$75.00M -$754.9M -$108.3M
YoY Change -90.06% 175.11% -31.89%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 8.000M 700.6M 400.0K
YoY Change -98.86% -16780.95% -99.68%
NET CHANGE
Cash From Operating Activities 40.00M 219.2M 258.1M
Cash From Investing Activities -75.00M -754.9M -108.3M
Cash From Financing Activities 8.000M 700.6M 400.0K
Net Change In Cash -27.00M 164.9M 150.2M
YoY Change -116.37% -377.14% -73.7%
FREE CASH FLOW
Cash From Operating Activities $40.00M $219.2M $258.1M
Capital Expenditures -$33.00M -$31.60M -$34.50M
Free Cash Flow $73.00M $250.8M $292.6M
YoY Change -70.89% -4.35% -54.27%

Facts In Submission

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0.77
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0.93
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0.52
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2.58
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0.43
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0.58
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0.76
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0.92
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0.538
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0.748
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0.35
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0.35
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0.35
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0.006
CY2016 us-gaap Effective Income Tax Rate Reconciliation Nondeductible Expense Share Based Compensation Cost
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0.031
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-0.003
CY2015 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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CY2016 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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0.004
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0.024
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0.016
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CY2015 us-gaap Effective Income Tax Rate Reconciliation Tax Contingencies
EffectiveIncomeTaxRateReconciliationTaxContingencies
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96000000 USD
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CY2016Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
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29000000 USD
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P1Y8M
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52000000 USD
CY2015 us-gaap Fair Value Of Assets Acquired
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389000000 USD
CY2016 us-gaap Fair Value Of Assets Acquired
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186000000 USD
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154000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
186000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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35000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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8000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
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19000000 USD
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FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
27000000 USD
CY2016Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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33000000 USD
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276000000 USD
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FiniteLivedIntangibleAssetsGross
326000000 USD
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122000000 USD
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140000000 USD
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45000000 USD
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58000000 USD
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CY2015 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
0 USD
CY2016 us-gaap Goodwill Impairment Loss
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CY2016 us-gaap Goodwill Purchase Accounting Adjustments
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5000000 USD
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1000000000 USD
CY2015 us-gaap Gross Profit
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1507000000 USD
CY2016 us-gaap Gross Profit
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8076000000 USD
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11794000000 USD
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14774000000 USD
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1273000000 USD
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HealthCareOrganizationMedicalSuppliesAndDrugsExpense
1610000000 USD
CY2016 us-gaap Health Care Organization Medical Supplies And Drugs Expense
HealthCareOrganizationMedicalSuppliesAndDrugsExpense
2213000000 USD
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2971000000 USD
CY2015Q2 us-gaap Health Care Organization Premium Revenue
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3304000000 USD
CY2015Q3 us-gaap Health Care Organization Premium Revenue
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3377000000 USD
CY2015Q4 us-gaap Health Care Organization Premium Revenue
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3589000000 USD
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CY2016Q1 us-gaap Health Care Organization Premium Revenue
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4191000000 USD
CY2016Q4 us-gaap Health Care Organization Premium Revenue
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4177000000 USD
CY2016 us-gaap Health Care Organization Premium Revenue
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110000000 USD
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10000000 USD
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10000000 USD
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100000000 USD
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100000000 USD
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110000000 USD
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135000000 USD
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322000000 USD
CY2016 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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205000000 USD
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1.34
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2.75
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0.93
CY2014 us-gaap Income Loss From Continuing Operations Per Diluted Share
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1.30
CY2015 us-gaap Income Loss From Continuing Operations Per Diluted Share
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2.58
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0.92
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-0.01
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CY2016 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic Share
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0.00
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0.00
CY2016 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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0.00
CY2014 us-gaap Income Loss From Subsidiaries Net Of Tax
IncomeLossFromSubsidiariesNetOfTax
0 USD
CY2015 us-gaap Income Loss From Subsidiaries Net Of Tax
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0 USD
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CY2014 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
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IncomeTaxExpenseBenefit
179000000 USD
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IncomeTaxExpenseBenefit
153000000 USD
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30000000 USD
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197000000 USD
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153000000 USD
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13000000 USD
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39000000 USD
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11000000 USD
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84000000 USD
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42000000 USD
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7000000 USD
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74000000 USD
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24000000 USD
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92000000 USD
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531000000 USD
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482000000 USD
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226000000 USD
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IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
20000000 USD
CY2015 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
35000000 USD
CY2016 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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298000000 USD
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348000000 USD
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34000000 USD
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6000000 USD
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IncrementalCommonSharesAttributableToCallOptionsAndWarrants
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IncrementalCommonSharesAttributableToCallOptionsAndWarrants
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IncrementalCommonSharesAttributableToConversionOfDebtSecurities
0 shares
CY2014 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
CY2015 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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CY2016 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 USD
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0 USD
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5800000000 USD
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41000000 USD
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450000000 USD
CY2015 us-gaap Liability For Unpaid Claims And Claims Adjustment Expense Claims Paid Prior Years1
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910000000 USD
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1284000000 USD
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871000000 USD
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1191000000 USD
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1352000000 USD
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8077000000 USD
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11794000000 USD
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14774000000 USD
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1002000000 USD
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0 USD
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0 USD
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550000000 USD
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0 USD
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1060000000 USD
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52000000 USD
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CY2014 us-gaap Notes Issued1
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177000000 USD
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CY2016 us-gaap Notes Issued1
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CY2016 us-gaap Number Of Reportable Segments
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193000000 USD
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116000000 USD
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76000000 USD
CY2015 us-gaap Operating Income Loss
OperatingIncomeLoss
387000000 USD
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89000000 USD
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105000000 USD
CY2016Q3 us-gaap Operating Income Loss
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118000000 USD
CY2016Q4 us-gaap Operating Income Loss
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OperatingIncomeLoss
306000000 USD
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694000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due Current
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80000000 USD
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40000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
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52000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
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68000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
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74000000 USD
CY2016Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
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380000000 USD
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32000000 USD
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44000000 USD
CY2016 us-gaap Operating Leases Rent Expense Net
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64000000 USD
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3000000 USD
CY2015 us-gaap Other Amortization Of Deferred Charges
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1000000 USD
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0 USD
CY2015 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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-5000000 USD
CY2016 us-gaap Other Amortization Of Deferred Charges
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0 USD
CY2015Q4 us-gaap Other Assets Noncurrent
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28000000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
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41000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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CY2015 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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-3000000 USD
CY2016 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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2000000 USD
CY2016 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Before Tax
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3000000 USD
CY2014 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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0 USD
CY2015 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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-2000000 USD
CY2016 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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1000000 USD
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37000000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
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42000000 USD
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-1000000 USD
CY2015 us-gaap Other Nonoperating Income Expense
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1000000 USD
CY2016 us-gaap Other Nonoperating Income Expense
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0 USD
CY2014 us-gaap Other Operating Activities Cash Flow Statement
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7000000 USD
CY2015 us-gaap Other Operating Activities Cash Flow Statement
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19000000 USD
CY2016 us-gaap Other Operating Activities Cash Flow Statement
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16000000 USD
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7514000000 USD
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11358000000 USD
CY2016 us-gaap Payments For Losses And Loss Adjustment Expense
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14588000000 USD
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23000000 USD
CY2015 us-gaap Payments For Proceeds From Other Investing Activities
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35000000 USD
CY2016 us-gaap Payments For Proceeds From Other Investing Activities
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19000000 USD
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0 USD
CY2015 us-gaap Payments To Acquire Additional Interest In Subsidiaries
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0 USD
CY2016 us-gaap Payments To Acquire Additional Interest In Subsidiaries
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50000000 USD
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0 USD
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44000000 USD
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450000000 USD
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48000000 USD
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953000000 USD
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1923000000 USD
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1929000000 USD
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115000000 USD
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132000000 USD
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176000000 USD
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46000000 USD
CY2016Q4 us-gaap Reinsurance Recoverable For Unpaid Claims And Claims Adjustments
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61000000 USD
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109000000 USD
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10000000 USD
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0 USD
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0.001
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20000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Authorized
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20000000 shares
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0 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
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0 shares
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0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
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0 USD
CY2016Q4 us-gaap Preferred Stock Value
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0 USD
CY2015Q4 us-gaap Prepaid Expense And Other Assets Current
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192000000 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
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131000000 USD
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0 USD
CY2015 us-gaap Proceeds From Dividends Received
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0 USD
CY2016 us-gaap Proceeds From Dividends Received
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0 USD
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373000000 USD
CY2014 us-gaap Proceeds From Issuance Of Common Stock
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0 USD
CY2015 us-gaap Proceeds From Issuance Of Common Stock
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373000000 USD
CY2016 us-gaap Proceeds From Issuance Of Common Stock
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0 USD
CY2014 us-gaap Proceeds From Issuance Of Long Term Debt
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123000000 USD
CY2015 us-gaap Proceeds From Issuance Of Long Term Debt
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689000000 USD
CY2016 us-gaap Proceeds From Issuance Of Long Term Debt
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0 USD
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14000000 USD
CY2015 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
18000000 USD
CY2016 us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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18000000 USD
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2000000 USD
CY2015 us-gaap Proceeds From Payments For Other Financing Activities
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5000000 USD
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1000000 USD
CY2014 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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633000000 USD
CY2015 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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1126000000 USD
CY2016 us-gaap Proceeds From Sale And Maturity Of Marketable Securities
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1966000000 USD
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755000000 USD
CY2016Q4 us-gaap Property Plant And Equipment Gross
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919000000 USD
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393000000 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
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454000000 USD
CY2015Q4 us-gaap Property Plant And Equipment Owned Accumulated Depreciation
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167000000 USD
CY2016Q4 us-gaap Property Plant And Equipment Owned Accumulated Depreciation
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206000000 USD
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597000000 USD
CY2016Q4 us-gaap Receivables Net Current
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974000000 USD
CY2016 us-gaap Stock Issued During Period Value Share Based Compensation
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36000000 USD
CY2015Q4 us-gaap Stockholders Equity
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1557000000 USD
CY2016Q4 us-gaap Stockholders Equity
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CY2013Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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893000000 USD
CY2014Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1010000000 USD
CY2013Q4 us-gaap Shares Outstanding
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46000000 shares
CY2014Q4 us-gaap Shares Outstanding
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49000000 shares
CY2015Q4 us-gaap Shares Outstanding
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55000000 shares
CY2016Q4 us-gaap Shortduration Insurance Contracts Cumulative Paid Claims And Allocated Claim Adjustment Expense Net
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33444000000 USD
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35130000000 USD
CY2016Q4 us-gaap Shortduration Insurance Contracts Liability For Unpaid Claims And Claim Adjustment Expense Aggregate Reconciling Items
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243000000 USD
CY2016Q4 us-gaap Statutory Accounting Practices Statutory Capital And Surplus Balance
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1693000000 USD
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1557000000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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1649000000 USD
CY2014 us-gaap Supplemental Deferred Purchase Price
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8000000 USD
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0 USD
CY2016 us-gaap Supplemental Deferred Purchase Price
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8000000 USD
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1100000000 USD
CY2014 us-gaap Stock Issued1
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15000000 USD
CY2016 us-gaap Stock Issued1
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8000000 USD
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373000000 USD
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30000000 USD
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26000000 USD
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110000000 USD
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758000000 USD
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810000000 USD
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22000000 USD
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23000000 USD
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26000000 USD
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8123000000 USD
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11935000000 USD
CY2016 us-gaap Supplemental Information For Property Casualty Insurance Underwriters Current Year Claims And Claims Adjustment Expense
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CY2015 us-gaap Supplemental Information For Property Casualty Insurance Underwriters Prior Year Claims And Claims Adjustment Expense
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CY2016 us-gaap Supplemental Information For Property Casualty Insurance Underwriters Prior Year Claims And Claims Adjustment Expense
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-192000000 USD
CY2016Q4 us-gaap Tax Credit Carryforward Valuation Allowance
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CY2016 us-gaap Technology Services Costs
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CY2016 us-gaap Technology Services Revenue
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1000000 USD
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56000000 shares
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52000000 shares
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55000000 shares
CY2016 us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Concentrations of Credit Risk</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments, receivables, and restricted investments. Our investments and a portion of our cash equivalents are managed by professional portfolio managers operating under documented investment guidelines. Our portfolio managers must obtain our prior approval before selling investments where the loss position of those investments exceeds certain levels. Our investments consist primarily of investment-grade debt securities with a maximum maturity of </font><font style="font-family:Arial;font-size:10pt;">10</font><font style="font-family:Arial;font-size:10pt;"> years and an average duration of </font><font style="font-family:Arial;font-size:10pt;">three</font><font style="font-family:Arial;font-size:10pt;"> years or less. Restricted investments are invested principally in certificates of deposit and U.S. treasury securities. Concentration of credit risk with respect to accounts receivable is limited because our payors consist principally of the governments of each state in which our health plan subsidiaries operate.</font></div></div>
CY2016 us-gaap Schedule Of Liability For Unpaid Claims And Claims Adjustment Expense
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The following table provides the details of our medical claims and benefits payable (including amounts payable for the provision of long-term services and supports, or LTSS) as of the dates indicated.</font></div><div style="line-height:120%;padding-top:8px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:99.80506822612085%;border-collapse:collapse;text-align:left;"><tr><td colspan="12" rowspan="1"></td></tr><tr><td style="width:59%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-weight:bold;">December 31,</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-weight:bold;">2016</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-weight:bold;">2015</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-weight:bold;">2014</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;font-weight:bold;">(In millions)</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Fee-for-service claims incurred but not paid (IBNP)</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">1,352</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">1,191</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">871</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Pharmacy payable</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">112</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">88</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">71</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Capitation payable</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">37</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">140</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">28</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">Other</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">428</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">266</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">231</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">1,929</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">1,685</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:9pt;"><font style="font-family:Arial;font-size:9pt;">1,201</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Principal areas requiring the use of estimates include:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The determination of medical claims and benefits payable of our Health Plans segment;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Health plan contractual provisions that may limit revenue recognition based upon the costs incurred or the profits realized under a specific contract;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Health plan quality incentives that allow us to recognize incremental revenue if certain quality standards are met;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Molina Medicaid Solutions segment revenue and cost recognition;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">Settlements under risk or savings sharing programs;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The assessment of deferred contract costs, deferred revenue, long-lived and intangible assets, and goodwill for impairment;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The determination of reserves for potential absorption of claims unpaid by insolvent providers;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The determination of reserves for the outcome of litigation;</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The determination of valuation allowances for deferred tax assets;&#160;and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;padding-bottom:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:Arial;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">The determination of unrecognized tax benefits.</font></div></td></tr></table></div>

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