MOLINA HEALTHCARE, INC. - 10-Q filing on 2018-04-30

Restructuring and Separation Costs (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and separation costs are reported by the same name in the accompanying consolidated statements of income. The following tables present the major types of such costs by segment. Current and long-lived assets include current and non-current capitalized project costs, and capitalized software determined to be unrecoverable.



	Three Months Ended March 31, 2018
	One-Time Termination Benefits		Other Restructuring Costs								Total
	One-Time Termination Benefits		Write-offs of Current and Long-lived Assets			Consulting Fees		Contract Termination Costs			Total
	(In millions)
Health Plans	$	1	$	(1	)	$	—	$	(1	)	$	(1	)
Other	5		20			1		—			26
	$	6	$	19		$	1	$	(1	)	$	25

As of March 31, 2018, we had incurred cumulative restructuring costs under the 2017 Restructuring Plan as follows:



	Separation Costs - Former Executives		One-Time Termination Benefits		Other Restructuring Costs						Total
	Separation Costs - Former Executives		One-Time Termination Benefits		Write-offs of Current and Long-lived Assets		Consulting Fees		Contract Termination Costs		Total
	(In millions)
Health Plans	$	—	$	34	$	15	$	—	$	23	$	72
Molina Medicaid Solutions	—		—		8		—		—		8
Other	36		39		57		45		2		179
	$	36	$	73	$	80	$	45	$	25	$	259

Restructuring Reserve

For those restructuring and separation costs that require cash settlement (primarily separation costs, one-time termination benefits, consulting fees and contract termination costs), the following table presents a roll-forward of the accrued liability, which is reported in “Accounts payable and accrued liabilities” in the accompanying consolidated balance sheets. The adjustments are due to true-ups of consulting fees and contract termination costs recorded in 2017.



	Separation Costs - Former Executives			One-Time Termination Benefits			Other Restructuring Costs			Total
	(In millions)
Accrued as of December 31, 2017	$	2		$	11		$	35		$	48
Adjustments	—			—			(1		)	(1		)
Charges	—			6			2			8
Cash payments	(2		)	(12		)	(9		)	(23		)
Accrued as of March 31, 2018	$	—		$	5		$	27		$	32