Centene Corporation (CNC, NYSE)
Industry: Healthcare Plans
Annual report, fiscal year 2011


## CENTENE \( ^{®} \)  Corporation

REACHING FOR THE SUMMIT



Centene Corporation is a leading multi-line healthcare enterprise that provides access to quality care for the rising number of under-insured and uninsured individuals. Centene offers unique, cost-effective coverage solutions for low-income populations through locally based health plans and a wide range of specialty services.

Table of Contents

01 —
Company Highlights

02 —
Letter from
the Chairman

04 —
Company and
Financial Summary

06 ——
2011 At a Glance

08 ——
Rising to the Challenge

10 —
Delivering Solutions
Through Technology

12 ——
Improving Health Through
Education and Engagement

14 ——
Quarterly and Selected
Financial Information

16 ——
Corporate Information

## A story of
growth and
quality:



## to vote A
bns ntwong
:vtilsup

1.8

MILLION MEMBERS

14

STATES WITH OPERATING HEALTH PLANS/ HYBRID MARKETS

56%

STOCK

100%

Centene Corporation
Morgan Stanley Health Care Payor Index
New York Stock Exchange Composite Index

1,100

HEALTH PLAN CONTRACT AWARD WIN RATE IN 2011

JOBS ADDED IN 2011

STOCK PERFORMANCE GRAPH
dollars



Our common stock has been listed for trading on the New York Stock Exchange under the symbol "CNC" since October 16, 2003. The graph above compares the cumulative total stockholder return on our common stock for the period from December 31, 2006 to December 31, 2011, with the cumulative total return of the New York Stock Exchange Composite Index, and the Morgan Stanley Health Care Payor Index over the same period. The graph assumes an investment of $100 on December 31, 2006 in our common stock (at the last reported sale price on such date), the New York Stock Exchange Composite Index and the Morgan Stanley Health Care Payor Index, and assumes the reinvestment of any dividends.




Michael F. Neidorff
Chairman, President and
Chief Executive Officer

LETTER FROM
THE CHAIRMAN
Centene’s business model was once again validated this past year. Total revenues grew 20.1 percent from 2010 to $5.3 billion. Earnings from operations increased to $190.3 million, or 21.2 percent over 2010. We now coordinate care for more than 1.8 million members. All of these statistics demonstrate remarkable success for Centene, but do not begin to tell our story. Centene is a more diversified company than ever before, with an expanded product portfolio and geographic reach—creating an ever stronger base for future growth. As we have grown, Centene’s stock price also climbed to record highs throughout the year, up 56 percent over the previous year.

This past year, Centene had an industry-leading health plan contract award rate of 100 percent, bringing us into 14 states. In 2011, our contract renewal in Arizona expanded our long-term care business by 50 percent. Our renewal in Massachusetts was based on being a low-cost producer in the hybrid/exchange market. In Kentucky, we were awarded a new contract based on a selection process heavily weighted on price. Then, in Louisiana we won where the focus was quality. We were also the only incumbent in Texas that maintained all regions and expanded into new service areas and products. Our streak of new contract awards has continued into the new year. Recent awards include the states of Washington and Missouri, both of which are expected to commence operations in the third quarter of 2012.

At Centene, we know people make the difference. This starts with our Board of Directors, which was made even stronger last year with the addition of Orlando Ayala, a seasoned senior executive from Microsoft \( ^{®} \) . It also extends to our senior corporate leadership team, a diverse and stable team of experienced executives. And, most importantly, it depends on the more than 5,300 people nationwide at Centene who focus on providing quality services for our members and coordinating care with providers, which yields cost savings for our state partners.

Centene’s employees operate within a solid business model that is continually improving. This business model is based on two key principles: diversification and scale. While our core business is Medicaid, we also have an extensive suite of specialty services. Our hybrid/exchange products are geared toward addressing the more than 50 million uninsured individuals across the United States. Our system capabilities have allowed us to serve high-accuracy populations such as the Aged, Blind or Disabled (ABD). We serve foster care populations and those needing long-term care. With experience in Medicaid and Medicare, we feel that we are well-positioned to address the needs of the more than nine million dual-eligible individuals who benefit from both programs.

We also know that innovation and investment are critical to continued success. We continue to win awards for our clinical programs such as Start Smart for Your Baby \( ^{®} \) , CentAccount \( ^{®} \) , our healthy rewards incentive program, has been linked to a 20 percent increase in member care visits to their primary care physician within 90 days of enrolling in our Indiana health plan. Programs such as these are designed to result in better care at the right place, at the right time.

Centene’s investments in information systems and processes support our clinical programs. Investments in Web-based systems for members and providers are reducing administrative expenses and affording better service. We continue to enhance our proprietary business intelligence system, Centelligence \( ^{™} \) , with more algorithms and tools, in an effort to help us achieve improved outcomes. These investments support our management of medical expenses and help us reduce our general and administrative costs.



As a Fortune \( ^{®} \)  soo company, Centene takes our corporate and social responsibilities seriously. We demonstrate this through our support of health-related causes and education across the nation, in part through financial contributions through the Centene Charitable Foundation. Additionally, Centene employees are involved in the communities in which we operate. As one example, Centene and our employees across the nation contributed more than one million dollars to the United Way \( ^{®} \) . Nationwide, employees volunteer their time and talent to organizations, helping those that are less fortunate.

As I look back on this past year, I am proud of the growth that we have achieved and know that it is built on every interaction we have with a member or provider. We succeeded when we demonstrate that our members are healthier. We succeed when we enable our providers to have less administrative overhead and spend more time on care. And we succeed when we show our state partners and other customers that such care is both better and less expensive. And when we succeed, our shareholders do as well.

As we look ahead to 2012 and beyond, I see great promise for our industry and company. I assure you that we will continue to bring the same passion to our business as we have since we were founded 27 years ago, raising the bar year after year. We are proud of what we have accomplished, but see even more promise ahead of us. The journey has just begun.

Sincerely,

## 20.1%

increase in total revenues from 2011 due to our start up of operations in new states this year including Mississippi, Illinois, and Kentucky, along with the continued expansion of business in existing markets.

## MICHAEL F. NEIDORFF

Chairman, President and Chief Executive Officer
Centene Corporation







<table><tr><td>Q1</td><td>Q2</td><td>Q3</td></tr><tr><td>JANUARY-MARCH</td><td>APRIL-JUNE</td><td>JULY-SEPTEMBER</td></tr><tr><td>Magnolia Health Plan® begins operations in Mississippi to serve Medicaid beneficiaries.</td><td>IlliniCare Health Plan® begins operations in Illinois.</td><td>Louisiana Healthcare Connections® is selected to serve Medicaid enrollees in all three of the state&#x27;s geographic service areas.</td></tr><tr><td>Superior HealthPlan™ begins operating under an additional STAR+PLUS ABD contract in the Dallas service area.</td><td>CelticCare Health Plan™ announces the extension of its contract to serve Commonwealth Care Bridge members in Massachusetts on an exclusive basis.</td><td>Kentucky Spirit Health Plan™ announces a three-year contract award to serve Medicaid beneficiaries.</td></tr><tr><td>Standard &amp; Poor&#x27;s raises its counterparty credit and senior unsecured debt ratings on Centene Corporation to BB from BB-.</td><td>Centene and American Academy of Pediatrics collaborate to produce &quot;A Guide to Your Baby&#x27;s Care—The First Year.&quot;</td><td>Superior Health Plan™ renews and expands contracts in Texas, including the management of the pharmacy benefit for Superior&#x27;s members.</td></tr><tr><td></td><td>Centene replaces its $175 million 7.75% notes with new $250 million 5.75% Senior Notes and entered into interest rate swap agreements, converting the Senior Notes to a floating rate of interest.</td><td>Orlando Ayala of Microsoft is elected to Centene&#x27;s Board of Directors.</td></tr></table>




RISING TO THE CHALLENGE

## Facing significant economic pressure, states found relief in Centene's promise of better health outcomes at lower costs. The growth Centene experienced in 2011 is a testament to the high caliber of sustainable solutions that we provide as a leader in managed care.

## STATES WITH MANAGED CARE

Most states are turning to managed care solutions to provide care for their Medicaid populations

## 36 States (+ Washington, D.C.)

Full-risk Comprehensive Managed Care. Some also include a Primary Care Case Management (PCCM) program.



Non-comprehensive Care
Management Programs, such as PCCMs
In a year where employment levels and budget conditions continued to prove tenuous, Centene continued to be a reliable route to higher quality, affordable and accessible healthcare. With the expiration of additional federal support for Medicaid costs temporarily granted through the American Recovery and Reinvestment Act of 2009, states were forced to reexamine their Medicaid policies. According to The Kaiser Commission on Medicaid and the Uninsured, 17 states in state fiscal year 2011, and 24 states in state fiscal year 2012 reported that they were expanding their Medicaid managed care programs, primarily by expanding the areas and populations covered by managed care programs.

Our outcomes demonstrate the advantages of a well-implemented managed care model. The positive impact of quality healthcare coordination, which includes appropriate case management for high-risk individuals, is significant, and state officials are taking note. Since the elderly and individuals with disabilities account for nearly 70 percent of Medicaid spending, while only comprising one-quarter of all Medicaid beneficiaries, we see more and more states looking toward managed care as the solution. We feel that Centene is similarly well-positioned to apply our experience in caring for dual-eligibles — Medicaid enrollees who also depend on Medicare for health services and consume a disproportionate amount of Medicaid spending.

Centene’s carefully calibrated balance between quality, innovation and cost containment is greatly valued by our state partners. Such equilibrium differentiates us and is reflected in our 2011 contract wins.

## INTEGRATED AND DIVERSIFIED SPECIALTY SERVICES

Efforts to care for the needs of our members are further streamlined through the integration of our specialty services. Both states and Centene continue to see the benefits of our full range of healthcare products and services working together to deliver better care.

US Script \( ^{™} \) , our pharmacy benefits management subsidiary, serves as an excellent example. The passing of the Drug Rebate Equalization Act in March of 2010 meant that states were no longer forced to choose between more substantial rebates through fee-for-service, or the better management of pharmacy benefits offered by managed care. States such as Ohio and Texas that previously “carved-out” the pharmacy benefits have enacted legislation to restore drug benefits to managed care—effective October 2011 and March 2012, respectively. Adjustments such as these make a big difference, allowing us to provide more comprehensive, higher quality care that is also more affordable for our state partners.

## POLICIES THAT STRENGTHEN HEALTHCARE

Through the use of sound, evidence-based policies, states can reduce the amount spent on administrative expenses instead of healthcare services. As states prepare their plans for coping with the influx of Medicaid members expected with the implementation of the Affordable Care Act, Centene plans to continue to develop resources to help build health insurance exchanges, leading the way to serving members through the use of hybrid products and a sustainable Medicaid program that is tailored to the needs of each state.
CENTENE IN ACTION While we are proud of our win and renewal rate for new business, we know that the follow-through is what really matters. Since 2006, Centene has successfully implemented 25 new contracts; seven in 2011 alone. This includes statewide implementation of Medicaid managed care in both Kentucky and Mississippi. Recent implementations range from the rural Mississippi Delta to counties in suburban Chicago. Whether rural or urban, Centene has been able to adapt and implement programs quickly and effectively.

## 25 IMPLEMENTATIONS SINCE 2006



Centene also has extensive experience partnering with states to transition from fee-for-service to managed care. These successful transitions demonstrate our ability to overcome challenges through solutions that have been refined and enhanced through each new market implementation, as well as an appreciation of the unique needs of each region we serve.




Delivering Solutions
Through Technology

Offering patients, providers and care teams access to meaningful, timely and reliable health information continues to be Centene’s top technology priority.

Faster implementation of new health plans, improved operating models and more stringent performance criteria have become Centene priorities. Our information technology (IT) and systems are indispensable tools that allow us to meet our ever-advancing goals. Over the past year, our continued investment and implementation of innovative technology and scalable systems have allowed us to stay ahead of Centene’s rapid growth while managing medical as well as general and administrative costs. Enhancements in several key areas of IT, including the integration of data into our proprietary enterprise data warehouse, Centelligence, have paid dividends. Centene was recognized this year as one of the top technology innovators nationally—ranked #22 in the InformationWeek 500.

## MEMBER AND PROVIDER CONNECTIONS

For our members, connecting with them through education, support and incentives is crucial to impacting outcomes. Whether through cell phones, the Internet, or the increasing convergence between such channels, Centene is using technology to provide members with the knowledge and tools they need for better health.

For providers, sharing member histories, risk profiles and gaps in care, as well as efficiently handling referrals and authorizations, are key elements to successfully treating patients. Centene is committed to developing the infrastructure that supports fast and efficient flow of information between providers, their patients and our staff. In 2011, we developed a Web-based, mobile-compatible provider contract modeling tool to assist field contractors when negotiating provider contracts. In addition, we implemented a provider profiling tool that compares providers to their peers based on cost and quality and provides specific areas for improvement.

## INFORMATION-DRIVEN OUTCOMES

The heart of our information systems is Centelligence, our award-winning enterprise data warehouse that provides an integrated flow of data across our organization. With Centelligence as our information hub, we feed data to and from our four main transaction-oriented systems including: our Web portals for members and providers, our new Customer Relationship Management system for our call center agents, our claims and provider management systems for our back-office personnel and our TruCare \( ^{™} \)  system for nurses and other clinical personnel. We can then analyze data and take proactive measures to impact outcomes and costs.

Web portals

Customer Relationship Management System

Claims and Provider Management Systems

TruCare system

In 2011, Centene made a strategic investment in Casenet, LLC and its flagship product, TruCare. Implemented in our four newest markets, TruCare provides exciting new capabilities for the organization including more efficient, integrated, and improved provider data that facilitate the coordination of authorizations, health-risk screenings, and case management. Consistent with our IT policies, this system is scalable and will continue evolving to meet emerging business needs including mobile capabilities. In addition, last year, Centene built a new, state-of-the-art data center. This new 19,000 square foot facility is expected to enable our IT to keep pace with our rapid growth.

CENTENE IN ACTION Centene is continually exploring new and innovative ways to reach our members. In 2011, we partnered with AT&T \( ^{®} \)  to introduce a pilot program in Ohio. The AT&T/WellDoc \( ^{®} \)  Program provides smart phones to select, high-risk members with diabetes, giving them access to an application called DiabetesManager \( ^{®} \) . This not only helps members manage their diabetes, but it also gives our nurse case managers the ability to monitor patients virtually, so they can intervene when necessary and respond more efficiently.



AT&T/WellDoc \( ^{®} \)  Program

This new initiative joins a series of Centene programs that capitalize on the ubiquity of cell phones, along with rapidly advancing mobile technology, to help improve our members' lives and overall health. These programs include our Connections Plus program, which facilitates care coordination through free, pre-programmed cell phones for high-risk members with limited or no access to a safe, reliable telephone. Connections Plus was recognized in 2011 by Medicaid Health Plans of America (MPHA) for "best use of technology in a best practice program."




has been so successful that we plan to introduce new characters in 2012 that will visit kids around the country to reinforce these important messages.

Backed by Centene's health information technology and guided by evidence-based policies, our clinical programs focus on education, engagement and execution. Most importantly, they produce real, measurable outcomes for our members and state partners.

Centene takes a local, hands-on approach to care, guided by culturally sensitive, clinically-sound programs. Our health plan sta work hands-on with members to connect them with local organizations and resources to ensure they get the care they need. We require that all of our Medical Directors continue practicing medicine to maintain front-line experience working with patients. We also have a resident training program to educate young doctors on the bene to of working with managed care companies to improve patient health.

Health education is paramount to the success of our programs. Our member outreach programs address the widespread issue of health literacy and are considerate of the diverse backgrounds of our members. We use a variety of ways to reach our members, such as social media, pre-programmed cell phones, texting initiatives and MP players, to ensure that members are reliably receiving information about the importance of preventive care and the management of chronic conditions.

Our programs are designed to make the most impact upon our membership. Since percent of our members are -years-old or younger, we have created a children's book series featuring child-friendly characters that teach topics such as managing asthma and healthy eating. e program



<table><tr><td colspan="6">(in thousands, except share data and membership data)</td></tr><tr><td></td><td colspan="3">March 31</td><td colspan="2">For the Quarter Ended, 2011</td></tr><tr><td>Total revenues</td><td>$</td><td>1,216,357</td><td>$</td><td>1,315,014</td><td>$ 1,302,035</td></tr><tr><td>Amounts attributable to Centene Corporation common shareholders:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings from continuing operations, net of income tax expense</td><td>23,745</td><td></td><td>28,374</td><td></td><td>28,987</td></tr><tr><td>Discontinued operations, net of income tax expense</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net earnings</td><td>$</td><td>23,745</td><td>$</td><td>28,374</td><td>$ 28,987</td></tr><tr><td>Net earnings per share attributable to Centene Corporation:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$</td><td>0.48</td><td>$</td><td>0.57</td><td>$ 0.58</td></tr><tr><td>Discontinued operations</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings per common share</td><td>$</td><td>0.48</td><td>$</td><td>0.57</td><td>$ 0.58</td></tr><tr><td>Diluted:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$</td><td>0.46</td><td>$</td><td>0.54</td><td>$ 0.55</td></tr><tr><td>Discontinued operations</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Diluted earnings per common share</td><td>$</td><td>0.46</td><td>$</td><td>0.54</td><td>$ 0.55</td></tr><tr><td>Health Benefits Ratio</td><td>84.9%</td><td>84.8%</td><td>85.0%</td><td>85.9%</td><td></td></tr><tr><td>General &amp; Administrative Expense Ratio</td><td>12.0%</td><td>11.2%</td><td>11.3%</td><td>11.0%</td><td></td></tr><tr><td>Period end at-risk membership</td><td>1,542,500</td><td>1,580,500</td><td>1,615,700</td><td>1,816,000</td><td></td></tr></table>

<table><tr><td rowspan="2"></td><td colspan="6">For the Quarter Ended, 2010</td></tr><tr><td>March 31</td><td>June 30</td><td>September 30</td><td>December 31</td><td></td><td></td></tr><tr><td>Total revenues</td><td>$ 1,068,721</td><td>$ 1,076,772</td><td>$ 1,121,861</td><td>$ 1,180,969</td><td></td><td></td></tr><tr><td>Amounts attributable to Centene Corporation common shareholders:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings from continuing operations, net of income tax expense</td><td>20,082</td><td>22,999</td><td>22,402</td><td>25,464</td><td></td><td></td></tr><tr><td>Discontinued operations, net of income tax expense (benefit)</td><td>3,920</td><td>(226)</td><td>260</td><td>(65)</td><td></td><td></td></tr><tr><td>Net earnings</td><td>$ 24,002</td><td>$ 22,773</td><td>$ 22,662</td><td>$ 25,399</td><td></td><td></td></tr><tr><td>Net earnings per share attributable to Centene Corporation:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$ 0.43</td><td>$ 0.46</td><td>$ 0.46</td><td>$ 0.52</td><td></td><td></td></tr><tr><td>Discontinued operations</td><td>0.08</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings per common share</td><td>$ 0.51</td><td>$ 0.46</td><td>$ 0.46</td><td>$ 0.52</td><td></td><td></td></tr><tr><td>Diluted:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$ 0.41</td><td>$ 0.45</td><td>$ 0.44</td><td>$ 0.50</td><td></td><td></td></tr><tr><td>Discontinued operations</td><td>0.08</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Diluted earnings per common share</td><td>$ 0.49</td><td>$ 0.45</td><td>$ 0.44</td><td>$ 0.50</td><td></td><td></td></tr><tr><td>Health Benefits Ratio</td><td>85.7%</td><td>85.4%</td><td>85.9%</td><td>85.0%</td><td></td><td></td></tr><tr><td>General &amp; Administrative Expense Ratio</td><td>11.7%</td><td>11.1%</td><td>10.6%</td><td>11.3%</td><td></td><td></td></tr><tr><td>Period end at-risk membership</td><td>1,471,500</td><td>1,534,600</td><td>1,473,800</td><td>1,533,500</td><td></td><td></td></tr></table>

<table><tr><td colspan="7">Year ended December 31</td></tr><tr><td rowspan="2">(in thousands, except share data)</td><td colspan="5">2011</td><td></td></tr><tr><td>2010</td><td>2009</td><td>2008</td><td>2007</td><td></td><td></td></tr><tr><td>Revenues</td><td>$ 5,077,242</td><td>$ 4,192,172</td><td>$ 3,786,525</td><td>$ 3,199,360</td><td>$ 2,611,953</td><td></td></tr><tr><td>Premium</td><td>103,765</td><td>91,661</td><td>91,758</td><td>74,953</td><td>80,508</td><td></td></tr><tr><td>Service</td><td>5,181,007</td><td>4,283,833</td><td>3,878,283</td><td>3,274,313</td><td>2,692,461</td><td></td></tr><tr><td>Premium and service revenues</td><td>159,575</td><td>164,490</td><td>224,581</td><td>90,202</td><td>76,567</td><td></td></tr><tr><td>Premium tax</td><td>5,340,582</td><td>4,448,323</td><td>4,102,864</td><td>3,364,515</td><td>2,769,028</td><td></td></tr><tr><td>Total revenues</td><td>4,324,746</td><td>3,584,452</td><td>3,230,131</td><td>2,704,647</td><td>2,242,982</td><td></td></tr><tr><td>Expenses</td><td>4,324,746</td><td>3,584,452</td><td>3,230,131</td><td>2,704,647</td><td>2,242,982</td><td></td></tr><tr><td>Medical costs</td><td>78,114</td><td>63,919</td><td>60,789</td><td>56,920</td><td>61,348</td><td></td></tr><tr><td>Cost of services</td><td>587,004</td><td>477,765</td><td>447,921</td><td>380,421</td><td>332,886</td><td></td></tr><tr><td>General and administrative expenses</td><td>160,394</td><td>165,118</td><td>225,888</td><td>90,966</td><td>76,567</td><td></td></tr><tr><td>Premium tax expense</td><td>5,150,258</td><td>4,291,254</td><td>3,964,729</td><td>3,232,954</td><td>2,713,783</td><td></td></tr><tr><td>Total operating expenses</td><td>190,324</td><td>157,069</td><td>138,135</td><td>131,561</td><td>55,245</td><td></td></tr><tr><td>Earnings from operations</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Other income (expense)</td><td>13,369</td><td>15,205</td><td>15,691</td><td>21,728</td><td>24,452</td><td></td></tr><tr><td>Investment and other income</td><td>(8,488)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Debt extinguishment costs</td><td>(20,320)</td><td>(17,992)</td><td>(16,318)</td><td>(16,673)</td><td>(15,626)</td><td></td></tr><tr><td>Interest expense</td><td>174,885</td><td>154,282</td><td>137,508</td><td>136,616</td><td>64,071</td><td></td></tr><tr><td>Earnings from continuing operations, before income tax expense</td><td>66,522</td><td>59,900</td><td>48,841</td><td>52,435</td><td>23,031</td><td></td></tr><tr><td>Income tax expense</td><td>108,363</td><td>94,382</td><td>88,667</td><td>84,181</td><td>41,040</td><td></td></tr><tr><td>Earnings from continuing operations, net of income tax expense</td><td>108,363</td><td>94,382</td><td>88,667</td><td>84,181</td><td>41,040</td><td></td></tr><tr><td>Discontinued operations, net of income tax expense (benefit)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>, , ( , , , , , , , , , , , , , , , , , , , , )</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net earnings</td><td>108,363</td><td>98,271</td><td>86,245</td><td>83,497</td><td>73,402</td><td></td></tr><tr><td>Noncontrolling interest</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net earnings attributable to Centene Corporation</td><td>$ 111,218</td><td>$ 94,836</td><td>$ 83,671</td><td>$ 83,497</td><td>$ 73,402</td><td></td></tr><tr><td>Amounts attributable to Centene Corporation common shareholders</td><td>$ 111,218</td><td>$ 90,947</td><td>$ 86,093</td><td>$ 84,181</td><td>$ 41,040</td><td></td></tr><tr><td>Earnings from continuing operations, net of income tax expense</td><td>$ 111,218</td><td>$ 90,947</td><td>$ 86,093</td><td>$ 84,181</td><td>$ 41,040</td><td></td></tr><tr><td>Discontinued operations, net of income tax expense (benefit)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net earnings</td><td>$ 111,218</td><td>$ 94,836</td><td>$ 83,671</td><td>$ 83,497</td><td>$ 73,402</td><td></td></tr><tr><td>Net earnings (loss) per common share attributable to Centene Corporation</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$ 2.22</td><td>$ 1.87</td><td>$ 2.00</td><td>$ 1.95</td><td>$ 0.95</td><td></td></tr><tr><td>Discontinued operations</td><td></td><td>0.08</td><td>(0.06)</td><td>(0.02)</td><td>0.74</td><td></td></tr><tr><td>Basic earnings per common share</td><td>$ 2.22</td><td>$ 1.95</td><td>$ 1.94</td><td>$ 1.93</td><td>$ 1.69</td><td></td></tr><tr><td>Diluted:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Continuing operations</td><td>$ 2.12</td><td>$ 1.80</td><td>$ 1.94</td><td>$ 1.90</td><td>$ 0.92</td><td></td></tr><tr><td>Discontinued operations</td><td></td><td>0.08</td><td>(0.05)</td><td>(0.02)</td><td>0.72</td><td></td></tr><tr><td>Diluted earnings per common share</td><td>$ 2.12</td><td>$ 1.88</td><td>$ 1.89</td><td>$ 1.88</td><td>$ 1.64</td><td></td></tr><tr><td>Weighted average number of common shares outstanding</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>50,198,954</td><td>48,754,947</td><td>43,034,791</td><td>43,275,187</td><td>43,539,950</td><td></td></tr><tr><td>Diluted</td><td>52,474,238</td><td>50,447,888</td><td>44,316,467</td><td>44,398,955</td><td>44,823,082</td><td></td></tr><tr><td colspan="6">December 31</td><td></td></tr><tr><td></td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td><td></td></tr><tr><td>Consolidated Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash and cash equivalents</td><td>$ 573,698</td><td>$ 434,166</td><td>$ 400,951</td><td>$ 370,999</td><td>$ 267,305</td><td></td></tr><tr><td>Investments and restricted deposits</td><td>663,457</td><td>639,983</td><td>585,183</td><td>451,058</td><td>369,545</td><td></td></tr><tr><td>Total Assets</td><td>2,190,336</td><td>1,943,882</td><td>1,702,364</td><td>1,451,152</td><td>1,121,824</td><td></td></tr><tr><td>Medical Claims Liability</td><td>607,985</td><td>456,765</td><td>470,932</td><td>384,360</td><td>323,741</td><td></td></tr><tr><td>Long-term debt</td><td>348,344</td><td>327,824</td><td>307,085</td><td>264,637</td><td>206,406</td><td></td></tr><tr><td>Total stockholders&#x27; equity</td><td>936,419</td><td>797,055</td><td>619,427</td><td>501,272</td><td>415,047</td><td></td></tr></table>



7700 Forsyth Boulevard

St. Louis, MO 63105

P 314.725.4477

f 314.445.0218

www.centene.com