Centene Corporation Annual report pursuant to Section 13 and 15(d)

Acquisitions (Tables)

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2019

Business Acquisition, Pro Forma Information (unaudited)

The following table presents supplemental pro forma information for the year ended December 31, 2019 and 2018, respectively ($ in millions, except per share data):



	Year Ended December 31, 2019		Year Ended December 31, 2018
Total revenues	$	102,379	$	88,842
Net earnings attributable to common stockholders	1,462		$	1,211
Diluted earnings per share	$	2.47	$	2.06

The following table presents supplemental pro forma information for the year ended December 31, 2018 and 2017, respectively ($ in millions, except per share data):



	Year Ended December 31, 2018		Year Ended December 31, 2017
Total revenues	$	65,792	$	58,275
Net earnings attributable to common stockholders	$	1,342	$	936
Diluted earnings per share	$	3.22	$	2.27

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The Company's allocation of the fair value of assets acquired and liabilities assumed as of the acquisition date of July 1, 2018 is as follows ($ in millions):



Assets acquired and liabilities assumed
Cash and cash equivalents	$	2,001
Premium and related receivables	442
Other current assets	32
Restricted deposits	495
Property, software and equipment	48
Intangible assets ^(a)	956
Other long-term assets	2
Total assets acquired	3,976

Medical claims liability	1,218
Accounts payable and accrued expenses	238
Return of premium payable	123
Unearned revenue	115
Other long-term liabilities	324
Total liabilities assumed	2,018

Total identifiable net assets	1,958
Goodwill ^(b)	1,663
Total assets acquired and liabilities assumed	$	3,621

Significant fair value adjustments are noted as follows:

(a)

The identifiable intangible assets acquired are to be measured at fair value as of the completion of the acquisition. The fair value of intangible assets is determined primarily using variations of the "income approach," which is based on the present value of the future after tax cash flows attributable to each identified intangible asset. Other valuation methods,

Schedule of Fair Values and Weighted Average Useful Loves for Identifiable Intangible Assets Acquired

The fair values and weighted average useful lives for identifiable intangible assets acquired are as follows:



	Fair Value		Weighted Average Useful Life (in years)
Customer relationships	$	711	11
Trade name	196		20
Provider contracts	33		15
Developed technologies	16		2
Total intangible assets acquired	$	956	13

(b)

The acquisition resulted in $1.7 billion of goodwill related primarily to synergies expected from the acquisition and the assembled workforce of Fidelis Care. All of the goodwill has been assigned to the Managed Care segment. The goodwill is deductible for income tax purposes.