Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (VIEs)

Variable Interest Entities (VIEs)
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities (VIEs) Variable Interest Entities (VIEs)
A VIE is defined as a legal entity whose equity owners do not have sufficient equity at risk, or, as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision-making rights, the obligation to absorb losses, or the right to receive the expected residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and the obligation to absorb expected losses or the right to receive benefits from the entity that could potentially be significant to the VIE.
The Company follows guidance on the consolidation of VIEs that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. See Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies - Variable Interest Entities” to the accompanying consolidated financial statements for information on how the Company determines VIEs and their treatment.
The following table includes assets that can only be used to settle the liabilities of APC and its VIEs, including Alpha Care and Accountable Health Care and to which the creditors of ApolloMed have no recourse, and liabilities to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the general credit of ApolloMed, as the primary beneficiary of the VIEs. These assets and liabilities, with the exception of the investment in a privately held entity that does not report net asset value per share and amounts due to affiliates, which are eliminated upon consolidation with NMM, are included in the accompanying consolidated balance sheets (in thousands). The assets and liabilities of the Company’s other consolidated VIEs were not considered significant.
September 30,
December 31,
Current assets
Cash and cash equivalents $ 121,258  $ 126,158 
Investment in marketable securities 124,569  67,637 
Receivables, net 15,927  5,155 
Receivables, net – related party 50,454  46,718 
Income taxes receivable 4,267  — 
Other receivables 293  1,084 
Prepaid expenses and other current assets 9,808  14,863 
Loan receivable – related party 4,000  — 
Amount due from affiliate 15,764  — 
Total current assets
346,340  261,615 
Noncurrent assets
Land, property and equipment, net 47,253  27,599 
Intangible assets, net 61,140  69,250 
Goodwill 109,460  109,460 
Loans receivable – related parties 104  4,145 
Investment in affiliates 994,785  225,144 
Investments in other entities – equity method 45,046  43,516 
Investment in privately held entities 405  36,584 
Restricted cash —  500 
Operating lease right-of-use assets 5,258  6,298 
Other assets 2,533  17,177 
Total noncurrent assets
1,265,984  539,673 
Total assets
$ 1,612,324  $ 801,288 
Current liabilities
September 30,
December 31,
Accounts payable and accrued expenses $ 15,202  $ 12,963 
Fiduciary accounts payable 8,827  9,642 
Medical liabilities 34,998  37,684 
Income taxes payable —  4,225 
Dividends payable 556  485 
Amount due to affiliate —  22,698 
Current portion of long-term debt 207  201 
Finance lease liabilities 110  102 
Operating lease liabilities 1,231  1,242 
Total current liabilities
61,131  89,242 
Noncurrent liabilities
Long-term debt, net of current portion and deferred financing costs 7,245  7,379 
Deferred tax liability 18,941  9,144 
Finance lease liabilities, net of current portion 221  311 
Operating lease liabilities, net of current portion 4,262  5,242 
Other long-term liabilities 1,010  — 
Total noncurrent liabilities
31,679  22,076 
Total liabilities
$ 92,810  $ 111,318