CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except shares in thousands and per share data in dollars)

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Revenues:

Premium

$         31,848

$         28,876

$         95,247

$         83,436

Service

1,878

1,638

6,679

4,054

Premium and service revenues

33,726

30,514

101,926

87,490

Premium tax

2,139

1,892

7,060

5,924

Total revenues

35,865

32,406

108,986

93,414

Expenses:

Medical costs

28,111

25,430

83,261

73,210

Cost of services

1,571

1,355

5,658

3,510

Selling, general and administrative expenses

2,846

2,537

8,391

6,910

Depreciation expense

150

147

470

414

Amortization of acquired intangible assets

211

198

609

581

Premium tax expense

2,211

1,965

7,258

6,129

Impairment

289

229

1,739

229

Legal settlement

—

—

—

1,250

Total operating expenses

35,389

31,861

107,386

92,233

Earnings from operations

476

545

1,600

1,181

Other income (expense):

Investment and other income

692

424

786

566

Debt extinguishment

10

(79)

26

(125)

Interest expense

(169)

(170)

(491)

(503)

Earnings before income tax

1,009

720

1,921

1,119

Income tax expense

269

139

500

376

Net earnings

740

581

1,421

743

(Earnings) loss attributable to noncontrolling interests

(2)

3

(6)

5

Net earnings attributable to Centene Corporation

$              738

$               584

$           1,415

$               748

Net earnings per common share attributable to Centene Corporation:

Basic earnings per common share

$              1.29

$              1.00

$              2.44

$              1.28

Diluted earnings per common share

$              1.27

$              0.99

$              2.41

$              1.27

Weighted average number of common shares outstanding:

Basic

573,961

583,244

580,277

582,636

Diluted

580,607

590,702

587,084

590,154