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Divested Operations and Services Reportable Segment Results
Our Divested Operations and Services reportable segment was closed out effective January 1, 2013 as
discussed below.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Our Divested Operations and Services reportable segment included operations of our businesses that provided
administrative and run-out support services in connection with the Northeast Sale and the transition-related revenues
and expenses of our Medicare PDP business that was sold on April 1, 2012. As of December 31, 2012, we had
substantially completed the administration and run-out of both of our divested businesses. See Notes 3 and 14 to our
consolidated financial statements for additional information regarding the sale of our Medicare PDP business and the
Northeast Sale, and for more information regarding our reportable segments, respectively.
For the year ended December 31, 2012, we had total revenues of $40.5 million and net loss from continuing
operations of $(27.6) million.
In connection with the sale of our Medicare PDP business, we provided Medicare PDP transition-related services
to CVS Caremark during the year ended December 31, 2012. Revenues and expenses associated with providing
transition-related services to CVS Caremark were $40.5 million and $33.4 million, respectively, for the year ended
December 31, 2012.
On July 1, 2011, the United Administrative Services Agreements terminated and we entered into Claims
Servicing Agreements pursuant to which we adjudicate run out claims and provide limited other administrative services
to United and its affiliates. The revenues and expenses associated with providing services under the Claims Servicing
Agreements were $0 and $52.4 million, respectively, for the year ended December 31, 2012. Our operating results for
the year ended December 31, 2012 were impacted by $7.4 million in lease impairment costs related to our divested
Northeast business and were included in the expenses associated with providing services under the Claims Servicing
Agreements.
Corporate/Other
The following table summarizes the Corporate/Other segment for the years ended December 31, 2014, 2013 and
2012:
Year Ended December 31,
2014 2013 2012
(Dollars in thousands)
Costs included in health plan services costs ................................ $ — $ — $ (783)
Costs included in government contract costs............................... 2,201 5,138 5,863
Costs included in G&A................................................................ 94,494 6,877 36,892
Depreciation and amortization..................................................... 82 — —
Asset impairment ......................................................................... 88,536 — —
Loss from continuing operations before income taxes ................ (185,313)(12,015)(41,972)
Income tax benefit........................................................................ (143,433)(4,694)(10,916)
Loss from continuing operations ................................................. $(41,880) $ (7,321) $ (31,056)
Our Corporate/Other segment is not a business operating segment. It is added to our reportable segments to
reconcile to our consolidated results. The Corporate/Other segment includes costs that are excluded from the calculation
of segment pretax income because they are not managed within the reportable segments.
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Our operating results in our Corporate/Other segment for the year ended December 31, 2014 were impacted by an
$88.5 million pretax asset impairment primarily related to our assets held for sale in connection with the Cognizant
Transaction. See Note 3 to our consolidated financial statements and "—Cognizant Transaction" for additional
information regarding assets held for sale and the Cognizant Transaction. In addition, our operating results in our
Corporate/Other segment for the year ended December 31, 2014 were impacted by $74.8 million in pretax expenses
related to the Cognizant Transaction. Our operating results in our Corporate/Other segment for the year ended