0001558370-20-012026 | 10-Q | XBRL Viewer

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Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2020 $ / shares shares
Cover [Abstract]
Entity Central Index Key	0000019411
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	1-6639
Entity Registrant Name	MAGELLAN HEALTH, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	58-1076937
Entity Address, Address Line One	4801 E. Washington Street
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85034
City Area Code	800
Local Phone Number	642-1716
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Listing, Par Value Per Share \| $ / shares	$ 0.01
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MGLN
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding \| shares	25,607,241
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents ($51,253 and $48,806 restricted at December 31, 2019 and September 30, 2020, respectively)	$ 152,050	$ 115,752
Accounts receivable, net	769,159	680,569
Short-term investments ($82,772 and $77,073 restricted at December 31, 2019 and September 30, 2020, respectively)	92,686	98,797
Pharmaceutical inventory	37,637	44,962
Other current assets ($36,215 and $49,380 restricted at December 31, 2019 and September 30, 2020, respectively)	95,666	69,687
Current portion of assets held for sale	1,144,032	663,276
Total Current Assets	2,291,230	1,673,043
Property and equipment, net	131,869	131,712
Long-term investments ($2,307 and $3,585 restricted at December 31, 2019 and September 30, 2020, respectively)	5,623	2,864
Deferred income taxes	25,823	1,840
Other long-term assets	67,692	58,905
Goodwill	806,421	806,421
Other intangible assets, net	52,362	81,675
Assets held for sale, less current portion		335,713
Total Assets	3,381,020	3,092,173
Current Liabilities:
Accounts payable	122,020	83,790
Accrued liabilities	235,152	191,854
Medical claims payable	119,922	128,114
Other medical liabilities	123,205	92,915
Current debt, finance lease and deferred financing obligations	4,308	3,491
Current portion of liabilities held for sale	496,272	409,983
Total Current Liabilities	1,100,879	910,147
Long-term debt, finance lease and deferred financing obligations	637,093	679,125
Deferred income taxes		1,971
Tax contingencies	11,724	9,453
Deferred credits and other long-term liabilities	52,172	56,393
Liabilities held for sale, less current portion		37,301
Total Liabilities	1,801,868	1,694,390
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share Authorized-10,000 shares at December 31, 2019 and September 30, 2020-Issued and outstanding-none
Common stock, par value $.01 per share: Authorized-100,000 shares at December 31, 2019 and September 30, 2020-Issued and outstanding-54,285 and 24,623 shares at December 31, 2019, respectively, and 55,269 and 25,607 shares at September 30, 2020, respectively	553	543
Other Stockholders' Equity:
Additional paid-in capital	1,455,009	1,386,616
Retained earnings	1,588,196	1,475,207
Accumulated other comprehensive income	121	144
Treasury stock, at cost, 29,662 and 29,662 shares at December 31, 2019 and September 30, 2020, respectively	(1,464,727)	(1,464,727)
Total Stockholders' Equity	1,579,152	1,397,783
Total Liabilities and Stockholders' Equity	$ 3,381,020	$ 3,092,173

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Restricted cash and cash equivalents
Restricted cash and cash equivalents	$ 48,806	$ 51,253
Restricted investments, short-term and long-term
Short-term restricted investments	77,073	82,772
Long term restricted investments	3,585	2,307
Other current restricted assets
Other current restricted assets	$ 49,380	$ 36,215
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000	10,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100,000	100,000
Common stock, issued (in shares)	55,269	54,285
Common stock, outstanding (in shares)	25,607	24,623
Treasury stock
Treasury stock (in shares)	29,662	29,662

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net revenue:
Net revenue	$ 1,170,117	$ 1,158,543	$ 3,392,571	$ 3,431,838
Costs and expenses:
Cost of care	364,438	397,697	1,035,377	1,175,705
Cost of goods sold	560,269	523,973	1,621,577	1,551,368
Direct service costs and other operating expenses (1)	216,770	195,844	620,767	594,051
Depreciation and amortization	24,730	28,890	71,976	82,498
Interest expense	7,286	8,935	24,239	27,042
Interest and other income	(349)	(1,699)	(2,119)	(5,279)
Special charges	16,599		24,908
Total costs and expenses	1,189,743	1,153,640	3,396,725	3,425,385
Income (loss) from continuing operations before income taxes	(19,626)	4,903	(4,154)	6,453
Provision (benefit) for income taxes	(2,330)	782	(32,896)	3,308
Net income (loss) from continuing operations	(17,296)	4,121	28,742	3,145
Income from discontinued operations, net of tax	28,943	17,153	84,660	32,173
Net income	$ 11,647	$ 21,274	$ 113,402	$ 35,318
Basic
Continuing operations (in dollars per share)	$ (0.68)	$ 0.17	$ 1.15	$ 0.13
Discontinued operations (in dollars per share)	1.14	0.70	3.37	1.33
Consolidated operations (in dollars per share)	0.46	0.87	4.52	1.46
Net income (loss) per common share - diluted:
Continuing operations (in dollars per share)	(0.68)	0.17	1.14	0.13
Discontinued operations (in dollars per share)	1.14	0.69	3.34	1.31
Consolidated operations (in dollars per share)	$ 0.46	$ 0.86	$ 4.48	$ 1.44
Other comprehensive income
Unrealized gains (losses) on available-for-sale securities	$ (481)	$ (98)	$ (23)	$ 641
Comprehensive income attributable to Magellan	11,166	21,176	113,379	35,959
Managed care and other
Net revenue:
Net revenue	568,688	591,229	1,670,567	1,766,391
PBM
Net revenue:
Net revenue	$ 601,429	$ 567,314	$ 1,722,004	$ 1,665,447

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Stock compensation expense	$ 5,442	$ 4,604	$ 17,831	$ 19,211
Net of income tax provision	$ (160)	$ (31)	$ (8)	$ 201

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Common Stock In Treasury	Additional Paid in Capital	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Cumulative Effect, Period of Adoption, Adjustment	Total
Balance at Dec. 31, 2018	$ 535	$ (1,461,002)	$ 1,326,645		$ 1,419,449	$ (324)		$ 1,285,303
Balance (in shares) at Dec. 31, 2018	53,536,000	(29,601,000)
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			19,832					19,832
Exercise of stock options	$ 5		23,479					23,484
Exercise of stock options (in shares)	389,000
Issuance of equity	$ 1		1,762					1,763
Issuance of equity (in shares)	206,000
Repurchase of stock		$ (3,725)						(3,725)
Repurchase of stock (in shares)		(61,000)
Net income					35,318			35,318
Other comprehensive income (loss)-other						641		641
Balance at Sep. 30, 2019	$ 541	$ (1,464,727)	1,371,718	$ (144)	1,454,623	317	$ (144)	1,362,472
Balance (in shares) at Sep. 30, 2019	54,131,000	(29,662,000)
Balance at Jun. 30, 2019	$ 541	$ (1,464,727)	1,364,693		1,433,348	415		1,334,270
Balance (in shares) at Jun. 30, 2019	54,063,000	(29,662,000)
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			4,811					4,811
Exercise of stock options			5					5
Issuance of equity			2,209					2,209
Issuance of equity (in shares)	68,000
Net income					21,274			21,274
Other comprehensive income (loss)-other					1	(98)		(97)
Balance at Sep. 30, 2019	$ 541	$ (1,464,727)	1,371,718	(144)	1,454,623	317	(144)	1,362,472
Balance (in shares) at Sep. 30, 2019	54,131,000	(29,662,000)
Balance at Dec. 31, 2019	$ 543	$ (1,464,727)	1,386,616		1,475,207	144		$ 1,397,783
Balance (in shares) at Dec. 31, 2019	54,285,000	(29,662,000)						24,623,000
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			18,854					$ 18,854
Exercise of stock options	$ 9		48,639					$ 48,648
Exercise of stock options (in shares)	803,000							804,523
Issuance of equity	$ 1		900					$ 901
Issuance of equity (in shares)	181,000
Net income					113,402			113,402
Other comprehensive income (loss)-other						(23)		(23)
Balance at Sep. 30, 2020	$ 553	$ (1,464,727)	1,455,009	(413)	1,588,196	121	(413)	$ 1,579,152
Balance (in shares) at Sep. 30, 2020	55,269,000	(29,662,000)						25,607,000
Balance at Jun. 30, 2020	$ 550	$ (1,464,727)	1,429,995		1,576,549	602		$ 1,542,969
Balance (in shares) at Jun. 30, 2020	54,972,000	(29,662,000)
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			5,839					5,839
Exercise of stock options	$ 3		17,138					17,141
Exercise of stock options (in shares)	263,000
Issuance of equity			2,037					2,037
Issuance of equity (in shares)	34,000
Net income					11,647			11,647
Other comprehensive income (loss)-other						(481)		(481)
Balance at Sep. 30, 2020	$ 553	$ (1,464,727)	$ 1,455,009	$ (413)	$ 1,588,196	$ 121	$ (413)	$ 1,579,152
Balance (in shares) at Sep. 30, 2020	55,269,000	(29,662,000)						25,607,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 113,402	$ 35,318
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	88,061	98,355
Special charges	24,908
Non-cash interest expense	1,297	1,069
Non-cash stock compensation expense	18,854	19,832
Non-cash income tax provision (benefit)	(26,537)	4,567
Non-cash (amortization) accretion on investments	2,371	(509)
Changes in assets and liabilities, net of effects from acquisitions of businesses:
Accounts receivable, net	(78,682)	(54,261)
Pharmaceutical inventory	7,325	(7,555)
Other assets	(66,612)	(35,714)
Accounts payable and accrued liabilities	110,710	83,976
Medical claims payable and other medical liabilities	47,478	11,997
Contingent consideration		(3,754)
Tax contingencies	1,914	(251)
Deferred credits and other long-term liabilities	(11,572)	(9,566)
Other	(965)	919
Net cash provided by operating activities	231,952	144,423
Net cash provided by operating activities from discontinued operations	177,800	25,079
Net cash provided by operating activities from continuing operations	54,152	119,344
Cash flows from investing activities:
Capital expenditures	(56,006)	(44,234)
Acquisitions and investments in businesses, net of cash acquired	(2,066)	(320)
Purchases of investments	(661,004)	(391,062)
Proceeds from maturities and sales of investments	500,660	434,493
Net cash used in investing activities	(218,416)	(1,123)
Net cash provided by (used in) investing activities from discontinued operations	(164,836)	46,196
Net cash used in investing activities from continuing operations	(53,580)	(47,319)
Cash flows from financing activities:
Proceeds from borrowings on revolving line of credit	80,000
Payments to acquire treasury stock		(4,124)
Proceeds from exercise of stock options	48,284	20,653
Payments on debt, finance lease and deferred financing obligations	(126,110)	(50,950)
Payments on contingent consideration		(6,247)
Other	902	1,763
Net cash (used in) provided by financing activities	3,076	(38,905)
Net cash used in financing activities from discontinued operations	(32,650)
Net cash (used in) provided by financing activities from continuing operations	35,726	(38,905)
Net increase in cash and cash equivalents from continuing operations	36,298	33,120
Cash and cash equivalents at beginning of period	115,752	86,923
Cash and cash equivalents at end of period	152,050	120,043
Non-cash investing activities:
Assets acquired under finance leases and deferred financing obligations	$ 3,599	$ 3,302

General

9 Months Ended

Sep. 30, 2020

General

General

NOTE A—General

Basis of Presentation

The accompanying unaudited consolidated financial statements of Magellan Health, Inc., a Delaware corporation (“Magellan”), include Magellan and its subsidiaries (together with Magellan, the “Company”). The financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the Securities and Exchange Commission’s (the “SEC”) instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated in consolidation. On April 30, 2020, the Company and Molina Healthcare, Inc. (“Molina”) entered into a Stock and Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company has agreed to sell its Magellan Complete Care (“MCC”) business to Molina (the “MCC Sale”) for $850.0 million in cash, subject to certain adjustments, and Molina has agreed to assume liabilities of the MCC business. Accordingly, the accompanying consolidated financial statements for all periods presented reflect the MCC business as discontinued operations. See Note E—“Discontinued Operations” for additional information.

These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019 and the notes thereto, which are included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2020.

Business Overview

The Company provides managed care and pharmacy solutions for some of the most complex areas of healthcare. The Company offers innovative solutions that combine analytics, technology and clinical rigor to drive better decision making, positively impact members’ health outcomes and optimize the cost of care for the customers Magellan serves. The Company provides services to health plans and other managed care organizations (“MCOs”), employers, labor unions, various military and governmental agencies and third-party administrators (“TPAs”). Magellan operates three segments: Healthcare, Pharmacy Management and Corporate.

Healthcare Segment

The Healthcare segment (“Healthcare”) previously consisted of two reporting units – Behavioral & Specialty Health and MCC. As a result of the pending MCC Sale, the Healthcare segment now only includes the Behavioral and Specialty Health reporting unit.

The Behavioral & Specialty Health reporting unit’s customers include health plans, accountable care organizations (“ACOs”), employers, the United States military and various federal government agencies for whom Magellan provides carve-out management services for (i) behavioral health, (ii) employee assistance plans (“EAP”) and (iii) other areas of specialty healthcare including diagnostic imaging, musculoskeletal management, cardiac and physical medicine. These management services can be applied broadly across commercial, Medicaid and Medicare populations, or on a more targeted basis for our health plans and ACO customers. The Behavioral & Specialty Health unit also includes Magellan’s carve-out behavioral health contracts with various state Medicaid agencies.

MCC, which is now reflected as discontinued operations, contracts with state Medicaid agencies and the Centers for Medicare and Medicaid Services (“CMS”) to manage care for beneficiaries under various Medicaid and Medicare programs. MCC manages a wide range of services from total medical cost to carve out long-term support services. MCC largely focuses on managing care for more acute special populations including individuals with serious mental illness (“SMI”), dual eligibles, aged, blind and disabled (“ABD”) and other populations with unique and often complex healthcare needs.

Magellan’s coordination and management of these healthcare and long-term support services are provided through its comprehensive network of medical and behavioral health professionals, clinics, hospitals, skilled nursing facilities, home care agencies and ancillary service providers. This network of credentialed providers is integrated with clinical and quality improvement programs to improve access to care and enhance the healthcare experience for individuals in need of care, while at the same time making the cost of these services more affordable for our customers. The Company generally does not directly provide or own any provider of treatment services, although it does employ licensed behavioral health counselors to deliver non-medical counseling under certain government contracts.

The Company provides its Healthcare management services primarily through: (i) risk-based contractual arrangements, where the Company assumes all or a substantial portion of the responsibility for the cost of providing treatment services in exchange for a fixed per member per month (“PMPM”) fee, or (ii) administrative services only (“ASO”) contractual arrangements, where the Company provides services such as utilization review, claims administration and/or provider network management, but does not assume full responsibility for the cost of the treatment services, in exchange for an administrative fee and, in some instances, a gain share.

Pharmacy Management Segment

The Pharmacy Management segment (“Pharmacy Management”) is comprised of services that provide clinical and financial management of pharmaceuticals paid under both the medical and the pharmacy benefit. Pharmacy Management’s customer solutions include: (i) pharmacy benefit management (“PBM”) services, including pharmaceutical dispensing operations and Medicare Part D; (ii) pharmacy benefit administration (“PBA”) for state Medicaid and other government sponsored programs; (iii) clinical and formulary management programs; (iv) medical pharmacy management programs; and (v) programs for the integrated management of specialty drugs across both the medical and pharmacy benefit that treat complex conditions, regardless of site of service, method of delivery, or benefit reimbursement.

These services are available individually, in combination, or in a fully integrated manner. The Company markets its pharmacy management services to managed care organizations, employers, third party administrators, state governments, Medicare Part D, and other government agencies, exchanges, brokers and consultants. In addition, the Company will continue to upsell its pharmacy services to its existing customers and market its pharmacy solutions to the Healthcare customer base, including through integrated Pharmacy Management and Healthcare service offerings.

Pharmacy Management contracts with its customers for services using risk-based, gain share or ASO arrangements. In addition, Pharmacy Management provides services for most of the MCC business.

On May 11, 2020, the Company announced its decision to exit the Medicare Part D business at the end of 2020. The Company will retain its Medicare Employer Group Waiver Plan as well as full capabilities to serve the PBM needs of its existing and prospective Medicare customers.

Corporate

This segment of the Company is comprised primarily of amounts not allocated to the Healthcare and Pharmacy Management segments that are largely associated with costs related to being a publicly traded company.

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates of the Company can include, among other things, valuation of goodwill and intangible assets, medical claims payable, other medical liabilities, stock compensation assumptions, tax contingencies and legal liabilities. In addition, the Company also makes estimates in

relation to revenue recognition under Accounting Standard Codification 606 (“ASC 606”) which are explained in more detail in “Revenue Recognition” below. Actual results could differ from those estimates.

Revenue Recognition

Virtually all of the Company’s revenues are derived from business in North America. The following tables disaggregate our revenue for the three and nine months ended September 30, 2019 and 2020 by major service line, type of customer and timing of revenue recognition (in thousands):


	Three Months Ended September 30, 2019
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	383,768	$	—	$	(76)	$	383,692
EAP risk-based		80,076		—		—		80,076
ASO		57,535		9,475		(42)		66,968
PBM, including dispensing		—		495,759		(4,772)		490,987
Medicare Part D		—		76,327		—		76,327
PBA		—		35,768		—		35,768
Formulary management		—		23,976		—		23,976
Other		—		749		—		749
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543

Type of Customer
Government	$	277,884	$	215,197	$	—	$	493,081
Non-government		243,495		426,857		(4,890)		665,462
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543

Timing of Revenue Recognition
Transferred at a point in time	$	—	$	572,086	$	(4,772)	$	567,314
Transferred over time		521,379		69,968		(118)		591,229
Total net revenue	$	521,379	$	642,054	$	(4,890)	$	1,158,543


	Three Months Ended September 30, 2020
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	352,442	$	—	$	(95)	$	352,347
EAP risk-based		74,703		—				74,703
ASO		62,306		11,631		(50)		73,887
PBM, including dispensing		—		540,615		(5,117)		535,498
Medicare Part D		—		65,931		—		65,931
PBA		—		35,068		—		35,068
Formulary management		—		31,327		—		31,327
Other		—		1,356		—		1,356
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117

Type of Customer
Government	$	240,845	$	210,040	$	—	$	450,885
Non-government		248,606		475,888		(5,262)		719,232
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117

Timing of Revenue Recognition
Transferred at a point in time	$	—	$	606,546	$	(5,117)	$	601,429
Transferred over time		489,451		79,382		(145)		568,688
Total net revenue	$	489,451	$	685,928	$	(5,262)	$	1,170,117


	Nine Months Ended September 30, 2019
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	1,146,592	$	—	$	(219)	$	1,146,373
EAP risk-based		256,989		—				256,989
ASO		170,733		27,945		(215)		198,463
PBM, including dispensing		—		1,469,151		(13,214)		1,455,937
Medicare Part D		—		209,510		—		209,510
PBA		—		103,220		—		103,220
Formulary management		—		59,585		—		59,585
Other		—		1,761		—		1,761
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838

Type of Customer
Government	$	694,534	$	624,569	$	—	$	1,319,103
Non-government		879,780		1,246,603		(13,648)		2,112,735
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838

Timing of Revenue Recognition
Transferred at a point in time	$	—	$	1,678,661	$	(13,214)	$	1,665,447
Transferred over time		1,574,314		192,511		(434)		1,766,391
Total net revenue	$	1,574,314	$	1,871,172	$	(13,648)	$	3,431,838


	Nine Months Ended September 30, 2020
	Healthcare		Pharmacy Management		Elimination		Total
Major Service Lines
Behavioral & Specialty Health
Risk-based, non-EAP	$	1,046,486	$	—	$	(277)	$	1,046,209
EAP risk-based		232,060		—		—		232,060
ASO		180,832		35,436		(218)		216,050
PBM, including dispensing		—		1,558,211		(14,515)		1,543,696
Medicare Part D		—		178,308		—		178,308
PBA		—		96,008		—		96,008
Formulary management		—		78,550		—		78,550
Other		—		1,690		—		1,690
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571

Type of Customer
Government	$	690,340	$	622,986	$	—	$	1,313,326
Non-government		769,038		1,325,217		(15,010)		2,079,245
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571

Timing of Revenue Recognition
Transferred at a point in time	$	—	$	1,736,519	$	(14,515)	$	1,722,004
Transferred over time		1,459,378		211,684		(495)		1,670,567
Total net revenue	$	1,459,378	$	1,948,203	$	(15,010)	$	3,392,571

Per Member Per Month (“PMPM”) Revenue. Almost all of the Healthcare revenue and a small portion of the Pharmacy Management revenue is paid on a PMPM basis. PMPM revenue is inclusive of revenue from the Company’s risk, EAP and ASO contracts and primarily relates to managed care contracts for services such as the provision of behavioral healthcare, specialty healthcare, pharmacy management, or fully integrated healthcare services. PMPM contracts generally have a term of one year or longer, with the exception of government contracts where the customer can terminate with as little as 30 days’ notice for no significant penalty. All managed care contracts have a single performance obligation that constitutes a series for the provision of managed healthcare services for a population of enrolled members for the duration of the contract. The transaction price for PMPM contracts is entirely variable as it primarily includes PMPM fees associated with unspecified membership that fluctuates throughout the contract. In certain contracts, PMPM fees also include adjustments for things such as performance incentives, performance guarantees and risk shares. The Company generally estimates the transaction price using an expected value methodology and amounts are only included in the net transaction price to the extent that it is probable that a significant reversal of cumulative revenue will not occur once any uncertainty is resolved. The majority of the Company’s net PMPM transaction price relates specifically to its efforts to transfer the service for a distinct increment of the series (e.g. day or month) and is recognized as revenue in the month in which members are entitled to service. The remaining transaction price is recognized over the contract period (or portion of the series to which it specifically relates) based upon estimated membership as a measure of progress.

Under certain government contracts, our risk scores are compared with the overall average risk scores for the relevant state and market pool. Generally, if our risk score is below the average risk score, we are required to make a risk adjustment payment into the risk pool, and if our risk score is above the average risk score, we will receive a risk adjustment payment from the risk pool. Risk adjustments can have a positive or negative retroactive impact to rates.

Pharmacy Benefit Management Revenue. The Company’s customers for PBM business, including pharmaceutical dispensing operations, are generally comprised of MCOs, employer groups and health plans. PBM relationships generally have an expected term of one year or longer. A master services arrangement (“MSA”) is executed

by the Company and the customer, which outlines the terms and conditions of the PBM services to be provided. When a member in the customer’s organization submits a prescription, a claim is created which is presented for approval. The acceptance of each individual claim creates enforceable rights and obligations for each party and represents a separate contract. For each individual claim, the performance obligations are limited to the processing and adjudication of the claim, or dispensing of the products purchased. Generally, the transaction price for PBM services is explicitly listed in each contract and does not represent variable consideration. The Company recognizes PBM revenue, which consists of a negotiated prescription price (ingredient cost plus dispensing fee), co-payments and any associated administrative fees, when claims are adjudicated or the drugs are shipped. The Company recognizes PBM revenue on a gross basis (i.e. including drug costs and co-payments) as it is acting as the principal in the arrangement, controls the underlying service, and is contractually obligated to its clients and network pharmacies, which is a primary indicator of gross reporting. In addition, the Company is solely responsible for the claims adjudication process, negotiating the prescription price for the pharmacy, collecting payments from the client for drugs dispensed by the pharmacy, and managing the total prescription drug relationship with the client’s members. If the Company enters into a contract where it is only an administrator, and does not assume any of the risks previously noted, revenue will be recognized on a net basis. For dispensing, at the time of shipment, the earnings process is complete; the obligation of the Company’s customer to pay for the specialty pharmaceutical drugs is fixed, and, due to the nature of the product, the member may neither return the specialty pharmaceutical drugs nor receive a refund.

Medicare Part D. The Company is contracted with CMS as a Prescription Drug Plan (“PDP”) to provide prescription drug benefits to Medicare beneficiaries. The accounting for Medicare Part D revenue is primarily the same as that for PBM, as previously discussed. However, there is certain variable consideration present only in Medicare Part D arrangements. The Company estimates the annual amount of variable consideration using a most likely amount methodology, which is allocated to each reporting period based upon actual utilization as a percentage of estimated utilization for the year. Amounts estimated throughout the year for interim reporting are substantially resolved and fixed as of December 31^st, the end of the plan year.

Pharmacy Benefit Administration Revenue. The Company provides Medicaid pharmacy services to states and other government sponsored programs. PBA contracts are generally multi-year arrangements but include language regarding early termination for convenience without material penalty provisions that results in enforceable rights and obligations on a month-to-month basis. In PBA arrangements, the Company is generally paid a fixed fee per month to provide PBA services. In addition, some PBA contracts contain upfront fees that constitute a material right. For contracts without an upfront fee, there is a single performance obligation to stand ready to provide the PBA services required for the contracted period. The Company believes that the customer receives the PBA benefits each day from access to the claims processing activities, and has concluded that a time-based measure is appropriate for recognizing PBA revenue. For contracts with an upfront fee, the material right represents an additional performance obligation. Amounts allocated to the material right are initially recorded as a contract liability and recognized as revenue over the anticipated period of benefit of the material right, which generally ranges from 2 to 10 years.

Formulary Management Revenue. The Company administers formulary management programs for certain clients through which the Company coordinates the achievement, calculation and collection of rebates and administrative fees from pharmaceutical manufacturers on behalf of clients. Formulary management contracts generally have a term of one year or longer. All formulary management contracts have a single performance obligation that constitutes a series for the provision of rebate services for a drug, with utilization measured and settled on a quarterly basis, for the duration of the arrangement. The Company retains its administrative fee and/or a percentage of rebates that is included in its contract with the client from collecting the rebate from the manufacturer. While the administrative fee and/or the percentage of rebates retained is fixed, there is an unknown quantity of pharmaceutical purchases (utilization) during each quarter; therefore the transaction price itself is variable. The Company uses the expected value methodology to estimate the total rebates earned each quarter based on estimated volumes of pharmaceutical purchases by the Company’s clients during the quarter, as well as historical and/or anticipated retained rebate percentages. The Company does not record as rebate revenue any rebates that are passed through to its clients.

In relation to the Company’s PBM business, the Company administers rebate programs through which it receives rebates from pharmaceutical manufacturers that are shared with its customers. The Company recognizes rebates

when the Company is entitled to them and when the amounts of the rebates are determinable. The amount recorded for rebates earned by the Company from the pharmaceutical manufacturers is recorded as a reduction of cost of goods sold.

Government EAP Risk-Based Revenue. The Company has certain contracts with federal customers for the provision of various managed care services, which are classified as EAP risk-based business. These contracts are generally multi-year arrangements. The Company’s federal contracts are reimbursed on either a fixed fee basis or a cost reimbursement basis. The performance obligation on a fixed fee contract is to stand ready to provide the staffing required for the contracted period. For fixed fee contracts, the Company believes the invoiced amount corresponds directly with the value to the customer of the Company’s performance completed to date; therefore, the Company is utilizing the “right to invoice” practical expedient, with revenue recognition in the amount for which the Company has the right to invoice.

The performance obligation on a cost reimbursement contract is to stand ready to provide the activity or services purchased by the customer, such as the operation of a counseling services group or call center. The performance obligation represents a series for the duration of the arrangement. The reimbursement rate is fixed per the contract; however, the level of activity (e.g., number of hours, number of counselors or number of units) is variable. A majority of the Company’s cost reimbursement transaction price relates specifically to its efforts to transfer the service for a distinct increment of the series (e.g. day or month) and is recognized as revenue when the portion of the series for which it relates has been provided (i.e. as the Company provides hours, counselors or units of service).

In accordance with ASC 606-10-50-13, the Company is required to include disclosure on its remaining performance obligations as of the end of the current reporting period. Due to the nature of the contracts in the Company’s PBM and Part D business, these reporting requirements are not applicable. The majority of the Company’s remaining contracts meet certain exemptions as defined in ASC 606-10-50-14 through 606-10-50-14A, including (i) performance obligation is part of a contract that has an original expected duration of one year or less; (ii) the right to invoice practical expedient; and (iii) variable consideration related to unsatisfied performance obligations that is allocated entirely to a wholly unsatisfied promise to transfer a distinct service that forms part of a single performance obligation, and the terms of that variable consideration relate specifically to our efforts to transfer the distinct service, or to a specific outcome from transferring the distinct service. For the Company’s contracts that pertain to these exemptions: (i) the remaining performance obligations primarily relate to the provision of managed healthcare services to the customers’ membership; (ii) the estimated remaining duration of these performance obligations ranges from the remainder of the current calendar year to three years; and (iii) variable consideration for these contracts primarily includes net PMPM fees associated with unspecified membership that fluctuates throughout the contract.

Accounts Receivable, Contract Assets and Contract Liabilities

Accounts receivable, contract assets and contract liabilities consisted of the following (in thousands, except percentages):


	December 31,		September 30,
	2019		2020		$ Change		% Change
Accounts receivable	$	717,455	$	822,354	$	104,899		14.6%
Contract assets		2,162		12,419		10,257		474.4%
Contract liabilities - current		6,728		12,071		5,343		79.4%
Contract liabilities - long-term		11,099		11,480		381		3.4%

Accounts receivable, which are included in accounts receivable, other current assets and other long-term assets on the consolidated balance sheets, increased by $104.9 million, mainly due to timing of receipts and health insurer fee (“HIF”) accrual. Contract assets, which are included in other current assets on the consolidated balance sheets, increased by $10.3 million, mainly due to the timing of accrual of certain performance incentives and annual settlements. Contract liabilities – current, which are included in accrued liabilities on the consolidated balance sheets, increased by $5.3 million, mainly due to the HIF recognition in the current year period. Contract liabilities – long-term, which are included in deferred credits and other long-term liabilities on the consolidated balance sheets, increased by $0.4 million mainly

due to payments received for which recognition will be long term partially offset by certain balances which became current.

During the three months ended September 30 2020, the Company recognized revenue of $5.6 million that was included in current contract liabilities at June 30, 2020. During the nine months ended September 30, 2020, the Company recognized revenue of $5.4 million that was included in current contract liabilities at December 31, 2019. The estimated timing of recognition of amounts included in contract liabilities at September 30, 2020 are as follows: 2020—$8.8 million; 2021—$4.2 million; 2022—$3.4 million; 2023 and beyond—$7.2 million. During the three and nine months ended September 30, 2020, the revenue the Company recognized related to performance obligations that were satisfied, or partially satisfied, in previous periods was not material.

The Company’s accounts receivable consists of amounts due from customers throughout the United States. Collateral is generally not required. A majority of the Company’s contracts have payment terms in the month of service, or within a few months thereafter. The timing of payments from customers from time to time generates contract assets or contract liabilities; however, these amounts are immaterial.

The Company’s accounts receivable is net of an allowance for credit losses. The estimate of current expected credit losses on trade receivables considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management elected to disaggregate trade receivables into business segments due to risk characteristics unique to each platform given the individual lines of business and market. Pooling was further disaggregated based on either geography or product type.

The Company leveraged historical write offs over a defined lookback period in deriving a historical loss rate. The expected credit loss model further considers current conditions and reasonable and supportable forecasts through the use of an adjustment for current and projected macroeconomic factors. Management identified appropriate macroeconomic indicators based on tangible correlation to historical losses, giving consideration to the location and risks associated with the Company’s customers.

Significant Customers

Customers exceeding ten percent of the consolidated Company’s net revenues

The Company had no customers that exceeded ten percent of the Company’s net revenues from continuing operations. The following MCC customers, which are included in discontinued operations, previously exceeded ten percent of the Company’s consolidated net revenues.

The Company has contracts with the Commonwealth of Virginia (the “Virginia Contracts”). The Company began providing Medicaid managed long-term services and supports to enrollees in the Commonwealth Coordinated Care Plus (“CCC Plus”) program on August 1, 2017. The CCC Plus contract expires annually on December 31 and automatically renews annually on January 1 for a period of five calendar years, with potential of up to five 12-month extensions. The Commonwealth of Virginia has the right to terminate the CCC Plus contract with cause at any time and for convenience upon 90 days’ notice. On August 1, 2018, the Company began providing integrated healthcare services to Medicaid enrollees in the Commonwealth of Virginia under the Medallion 4.0/FAMIS Managed Care Program (“Medallion”). The initial term of the Medallion contract is from August 1, 2018 through June 30, 2019, with six 12-month renewal options. The Medallion contract has been renewed through June 30, 2021. The Commonwealth of Virginia has the right to terminate the Medallion contract with cause at any time and for convenience upon 180 days’ notice. The Virginia Contracts generated net revenues of $614.1 million and $741.6 million for the nine months ended September 30, 2019 and 2020, respectively, which are reported as discontinued operations.

The Company had a contract with the State of New York (the “New York Contract”) to provide integrated managed care services to Medicaid and Medicare enrollees in the State of New York. The Company’s New York Contract terminated on December 31, 2016; however, the Company, along with other participating managed care plans in the state, continues to provide services while a new contract is being finalized. The New York Contracts generated net

revenues of $623.4 million and $576.6 million for the nine months ended September 30, 2019 and 2020, respectively, which are reported as discontinued operations.

The Company has contracts with the Commonwealth of Massachusetts and CMS (the “Massachusetts Contracts”) to provide integrated managed care services to Medicaid and Medicare enrollees in the Commonwealth of Massachusetts. Medicaid services are provided under a Senior Care Options contract (“SCO Contract”) which began on January 1, 2016 and extends through December 31, 2021, with the potential for up to five additional one-year extensions. The Commonwealth of Massachusetts may terminate the contract with cause without prior notice and upon 180 days’ notice without cause. Medicare services are provided under a one-year contract with CMS. The CMS contract currently extends through December 31, 2020. The Company began recognizing revenue in relation to the Massachusetts Contracts on November 1, 2017 as a result of the acquisition of SWH Holdings, Inc. The Massachusetts Contracts generated net revenues of $541.9 million and $537.0 million for the nine months ended September 30, 2019 and 2020, respectively, which are reported within discontinued operations.

Customers exceeding ten percent of segment net revenues

The following customers generated in excess of ten percent of net revenues from continuing operations for the respective segment for the nine months ended September 30, 2019 and 2020 (in thousands):


Segment	Term Date	2019			2020
Healthcare
Customer A	December 31, 2021	$	243,813		$	259,286
Customer B	December 31, 2022		154,558	*		147,177

Pharmacy Management
Customer C	March 31, 2024		259,826			284,697

* Revenue amount did not exceed 10 percent of net revenues for the respective segment for the period presented.

Amount is shown for comparative purposes only.

Concentration of Business

The Company also has a significant concentration of business with various counties in the State of Pennsylvania (the “Pennsylvania Counties”) which are part of the Pennsylvania Medicaid program, with members under its contract with CMS and with various agencies and departments of the United States federal government. Net revenues from the Pennsylvania Counties in the aggregate totaled $410.2 million and $428.6 million for the nine months ended September 30, 2019 and 2020, respectively. Net revenues from members in relation to its contracts with CMS in aggregate totaled $209.5 million and $178.3 million for the nine months ended September 30, 2019 and 2020, respectively. As of December 31, 2019 and September 30, 2020, the Company had $117.4 million and $126.1 million, respectively, in net receivables associated with Medicare Part D from CMS and other parties related to this business. In May 2020, the Company announced its decision to exit the Part D business at the end of 2020. Net revenues from contracts with various agencies and departments of the United States federal government in aggregate totaled $226.8 million and $200.1 million for the nine months ended September 30, 2019 and 2020, respectively.

The Company’s contracts with customers typically have stated terms of one to three years, and in certain cases contain renewal provisions (at the customer’s option) for successive terms of between one and two years (unless terminated earlier). Substantially all of these contracts may be immediately terminated with cause and many of the Company’s contracts are terminable without cause by the customer or the Company either upon the giving of requisite notice and the passage of a specified period of time (typically between 30 and 180 days) or upon the occurrence of other specified events. In addition, the Company’s contracts with federal, state and local governmental agencies generally are conditioned on legislative appropriations. These contracts generally can be terminated or modified by the customer if such appropriations are not made.

Leases

The Company leases certain office space, distribution centers, land and equipment. We assess our contracts to determine if it contains a lease. This assessment is based on (i) the right to control the use of an identified asset; (ii) the right to obtain substantially all of the economic benefits from the use of the identified asset; and (iii) the right to use the identified asset. The Company elected the short-term lease practical expedient; thus, leases with an initial term of twelve months or less are not capitalized and the expense is recognized on a straight-line basis. Most leases include one or more options to renew, with renewal terms that can extend the lease from one to ten years. The exercise of renewal options are at the sole discretion of the Company. Renewal options that the Company is reasonably certain to accept are recognized as part of the right-of-use (“ROU”) asset. Certain of the Company’s ROU assets were impaired which resulted in special charges, see Note F—“Special Charges” for further discussion.

Operating leases are included in other long-term assets, accrued liabilities and deferred credits and other long-term liabilities in the consolidated balance sheets. Finance leases are included in property and equipment, current debt, finance lease deferred financing obligations and long-term debt, finance lease and deferred financing obligations in the consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments per the lease. Operating lease ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. As the rate implicit in most of our leases is not readily determinable, the Company used its incremental borrowing rate to determine the present value of lease payments.

The following table shows the components of lease expenses for the three and nine months ended September 30, 2020 (in thousands):


	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020
Operating lease cost	$	2,208	$	6,812
Finance lease cost:
Amortization of right-of-use asset		1,193		3,571
Interest on lease liabilities		183		610
Total finance lease cost		1,376		4,181
Short-term lease cost		58		262
Variable lease cost		818		1,829
Total lease cost		4,460		13,084
Sublease income		(66)		(245)
Net lease cost	$	4,394	$	12,839

The following table shows the components of the lease assets and liabilities as of September 30, 2020 (in thousands):


	September 30, 2020
Operating leases:
Other long-term assets	$	17,453

Accrued liabilities	$	9,762
Deferred credits and other long-term liabilities		23,990
Total operating lease liabilities	$	33,752

Finance leases:
Property and equipment, net	$	13,100

Current debt, finance lease and deferred financing obligations	$	4,416
Long-term debt, finance lease and deferred financing obligations		13,186
Total finance lease liabilities	$	17,602

The maturity dates of the Company’s leases as of September 30, 2020 are summarized below (in thousands):


	September 30, 2020
2020	$	4,106
2021		14,417
2022		13,460
2023		9,815
2024		8,190
2025 and beyond		2,891
Total lease payments		52,879
Less interest		(1,525)
Present value of lease liabilities	$	51,354

The following table shows the weighted average remaining lease term and discount rate as of September 30, 2020:


	September 30, 2020
Weighted average remaining lease term
Operating leases		3.25
Finance leases		3.92
Weighted average discount rate
Operating leases		4.79%
Finance leases		4.39%

Supplemental cash flow information relating to leases is as follows (in thousands):


	Nine months ended September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,190
Operating cash flows from finance leases		4,225
Financing cash flows from finance leases		610
Right-of-use asset obtained in exchange for new lease obligation
Operating leases		1,677
Finance leases		3,599

Fair Value Measurements

The Company has certain assets and liabilities that are required to be measured at fair value on a recurring basis. These assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including the Company’s data.

In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s assets and liabilities that are required to be measured at fair value as of December 31, 2019 and September 30, 2020 (in thousands):


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents (1)	$	—	$	111,085	$	—	$	111,085
Investments:
U.S. Government and agency securities		30,775		—		—		30,775
Corporate debt securities		—		69,581		—		69,581
Certificates of deposit		—		1,305		—		1,305
Total assets held at fair value	$	30,775	$	181,971	$	—	$	212,746


	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents (2)	$	—	$	146,846	$	—	$	146,846
Investments:
U.S. Government and agency securities		35,402		—		—		35,402
Corporate debt securities		—		61,596		—		61,596
Certificates of deposit		—		1,311		—		1,311
Total assets held at fair value	$	35,402	$	209,753	$	—	$	245,155

(1)	Excludes $4.7 million of cash held in bank accounts by the Company.

(2)	Excludes $5.2 million of cash held in bank accounts by the Company.

For the nine months ended September 30, 2020, the Company has not transferred any assets between fair value measurement levels.

The carrying values of financial instruments, including accounts receivable and accounts payable, approximate their fair values due to their short-term maturities. The fair value of the Notes (as defined below) of $371.3 million as of September 30, 2020 was determined based on quoted market prices and would be classified within Level 1 of the fair value hierarchy. The estimated fair value of the Company’s term loan of $267.5 million as of September 30, 2020 was based on current interest rates for similar types of borrowings and is in Level 2 of the fair value hierarchy. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.

All of the Company’s investments are classified as “available-for-sale” and are carried at fair value.

Cash and Cash Equivalents

Cash equivalents are short-term, highly liquid interest-bearing investments with maturity dates of three months or less when purchased, consisting primarily of money market instruments. Book overdrafts are reflected within accounts payable on the balance sheets. At September 30, 2020, the Company’s excess capital and undistributed earnings for the Company’s regulated subsidiaries of approximately $30 million are included in cash and cash equivalents.

Investments

If a debt security is in an unrealized loss position and the Company has the intent to sell the debt security, or it is more likely than not that the Company will have to sell the debt security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in income in the consolidated statements of comprehensive income. For impaired debt securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in other-than-temporary impairment losses recognized in net income and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income in the consolidated statements of comprehensive income.

As of December 31, 2019 and September 30, 2020, there were no material unrealized losses that the Company determined to be other-than-temporary. No realized gains or losses were recorded for the three months or nine months

ended September 30, 2019 or 2020. The following is a summary of short-term and long-term investments at December 31, 2019 and September 30, 2020 (in thousands):


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
U.S. Government and agency securities	$	30,742	$	38	$	(5)	$	30,775
Corporate debt securities		69,552		40		(11)		69,581
Certificates of deposit		1,305		—		—		1,305
Total investments at December 31, 2019	$	101,599	$	78	$	(16)	$	101,661


	September 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
U.S. Government and agency securities	$	35,364	$	39	$	(1)	$	35,402
Corporate debt securities		61,611		20		(35)		61,596
Certificates of deposit		1,311		—		—		1,311
Total investments at September 30, 2020	$	98,286	$	59	$	(36)	$	98,309

The maturity dates of the Company’s investments as of September 30, 2020 are summarized below (in thousands):


	Amortized		Estimated
	Cost		Fair Value
2020	$	31,033	$	31,053
2021		65,705		65,708
2022