Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: PROFESSIONAL SERVICES

  total $5,249,973,365 · related or exempt $5,249,973,365

• 2b · Program service revenue: FEES & CONTRACTS FROM GOVERNMENT

  total $753,404,648 · related or exempt $753,404,648

• 3 · Investment income

  total $90,070,959 · related or exempt $90,070,959

• 7a · Gross sales of assets other than inventory

  securities $504,143,780

• 7b · Less cost or other basis and sales expenses

  securities $507,991,874

• 7c · Gain or loss

  securities -$3,848,094

• 7d · Net gain or loss

  total -$3,848,094 · related or exempt -$3,848,094

• 11a · Other revenue: INCOME/LOSS FROM SUBSIDIARIES

  total $45,331,124 · related or exempt $44,046,715 · unrelated business $1,284,409

• 11b · Other revenue: OTHER REVENUE

  total $63,685 · related or exempt $63,685

• 11c · Other revenue: MISC EXPENSES

  total -$6,714,141 · related or exempt -$6,714,141

• 11d · All other revenue

  total $9,498,680 · related or exempt $9,498,680

• 11e · Other revenue, total

  $48,179,348

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $22,617,650 · program services $22,617,650

• 4 · Benefits paid to or for members

  total $5,055,597,656 · program services $5,055,597,656

• 5 · Compensation of officers, directors and key employees

  total $37,752,986 · management and general $37,752,986

• 7 · Other salaries and wages

  total $287,066,646 · program services $258,442,192 · management and general $28,624,454

• 8 · Pension plan contributions

  total $27,852,616 · program services $25,188,983 · management and general $2,663,633

• 9 · Other employee benefits

  total $46,024,538 · program services $41,479,695 · management and general $4,544,843

• 10 · Payroll taxes

  total $15,875,875 · program services $14,207,694 · management and general $1,668,181

• 11b · Fees: legal

  total $7,375,513 · program services $7,360,414 · management and general $15,099

• 11c · Fees: accounting

  total $1,354,975 · program services $769,070 · management and general $585,905

• 11f · Fees: investment management

  total $2,421,298 · program services $2,421,298

• 12 · Advertising and promotion

  total $9,548,122 · program services $9,548,122

• 13 · Office expenses

  total $21,727,002 · program services $21,502,957 · management and general $224,045

• 14 · Information technology

  total $60,938,902 · program services $58,624,310 · management and general $2,314,592

• 15 · Royalties

  total $17,306,324 · program services $17,273,821 · management and general $32,503

• 16 · Occupancy

  total $19,142,144 · program services $17,133,566 · management and general $2,008,578

• 17 · Travel

  total $6,223,751 · program services $3,634,754 · management and general $2,588,997

• 19 · Conferences, conventions and meetings

  total $1,889,624 · program services $1,003,346 · management and general $886,278

• 20 · Interest

  total $8,540,313 · program services $8,540,313

• 22 · Depreciation, depletion and amortization

  total $32,983,583 · program services $32,002,492 · management and general $981,091

• 23 · Insurance

  total $3,752,940 · program services $3,599,007 · management and general $153,933

• 24a · Other expenses: BROKER FEES

  total $55,385,012 · program services $55,385,012

• 24b · Other expenses: OUTSIDE SERVICES

  total $41,439,166 · program services $40,619,270 · management and general $819,896

• 24c · Other expenses: CONSULTANT FEES

  total $26,195,554 · program services $23,495,667 · management and general $2,699,887

• 24e · All other expenses

  total $24,823,135 · program services $21,493,049 · management and general $3,330,086

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year -$64,632,111 · end of year $33,177,119

• 2 · Savings and temporary cash investments

  beginning of year $267,261,493 · end of year $299,932,692

• 4 · Accounts receivable

  beginning of year $403,715,672 · end of year $432,521,584

• 7 · Other notes and loans receivable

  beginning of year $176,973,163 · end of year $168,390,011

• 9 · Prepaid expenses and deferred charges

  beginning of year $63,267,093 · end of year $61,073,372

• 10a · Land, buildings and equipment: cost or other basis

  $353,091,160

• 10b · Land, buildings and equipment: accumulated depreciation

  $188,898,966

• 10c · Land, buildings and equipment, net

  beginning of year $148,282,151 · end of year $164,192,194

• 11 · Investments: publicly traded securities

  beginning of year $1,681,390,167 · end of year $1,786,698,145

• 12 · Investments: other securities

  beginning of year $864,371,501 · end of year $996,177,106

• 15 · Other assets

  beginning of year $44,543,651 · end of year $61,480,624

• 17 · Accounts payable and accrued expenses

  beginning of year $564,836,255 · end of year $641,749,163

• 19 · Deferred revenue

  beginning of year $47,189,751 · end of year $46,506,429

• 25 · Other liabilities

  beginning of year $500,797,405 · end of year $466,244,312

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $2,472,349,369 · end of year $2,849,142,943

The filer's explanations (Part III)

PART I, LINE 1A

FIRST CLASS BUSINESS TRAVEL IS REIMBURSED TO THE CEO, EXECUTIVE VICE PRESIDENTS, AND SENIOR VICE PRESIDENTS. FIRST CLASS BUSINESS TRAVEL IS NOT TREATED AS TAXABLE COMPENSATION. TRAVEL FOR COMPANIONS WAS PROVIDED TO ONE HIGHEST COMPENSATED EMPLOYEE. THE COST OF THIS BENEFIT WAS INCLUDED IN TAXABLE COMPENSATION. FINANCIAL AND TAX PLANNING EXPENSES ARE REIMBURSED TO EMPLOYEES AT THE DIRECTOR OR ABOVE LEVELS OF MANAGEMENT. A COMPANY POLICY OUTLINES THE MAXIMUM REIMBURSEMENT ALLOWED FOR EACH MANAGEMENT LEVEL. ONE OFFICER, EIGHT KEY EMPLOYEES, AND TWO HIGHEST COMPENSATED EMPLOYEES RECEIVED REIMBURSEMENT IN 2023. THESE REIMBURSEMENTS ARE INCLUDED IN THE TAXABLE COMPENSATION OF THE REIMBURSED EMPLOYEES.

PART I, LINE 4A

DURING 2023, THREE EXECUTIVES, KEVIN L. JACKSON, LORI ANN MARTEL, AND JOSEPH F. RUIZ RECEIVED A SEVERANCE PAYMENT UPON SEPARATION FROM THE ORGANIZATION. THIS PAYMENT IS INCLUDED ON SCHEDULE J AND REPORTED IN PART II, COLUMN (B)(III).

PART I, LINE 7:

THE CEO OF THE ORGANIZATION, WITH BOARD OF DIRECTORS APPROVAL, MAY GRANT AN ANNUAL BONUS TO ALL MANAGEMENT EMPLOYEES. THESE AMOUNTS ARE INCLUDED IN TAXABLE COMPENSATION. DELTA DENTAL OF CALIFORNIA MAINTAINS A LONG-TERM INCENTIVE PLAN (LTIP) FOR ELIGIBLE EMPLOYEES OF THE ORGANIZATION, LINKING COMPENSATION TO THE COMPANY'S PERFORMANCE. USING SUCCESS METRICS SUCH AS REVENUES, NET GAIN AS A PERCENTAGE OF REVENUES, AND OTHERS, ALLOWS THE COMPANY TO ACCURATELY MEASURE ITS GROWTH, INFORM ON PROGRESS OF ITS BUSINESS TRANSFORMATION, AND EMPOWER CONTINUED SUCCESS. THE LTIP IS UNFUNDED AND ALL PAYMENTS FROM THE LTIP ARE DERIVED FROM THE GAINS OF THE COMPANY. AS SUCH, THERE IS NO GUARANTEE OF INCENTIVE PAYMENTS UNDER THE LTIP. THE CEO MAKES RECOMMENDATIONS TO THE COMPENSATION COMMITTEE FOR ITS REVIEW AND APPROVAL REGARDING THE PERFORMANCE OBJECTIVES, BOTH FINANCIAL AND NON-FINANCIAL, UPON WHICH PAYMENT OF AWARDS ARE BASED AND THE TIME PERIOD DURING WHICH PERFORMANCE SHALL BE MEASURED. EACH LTIP PLAN SPANS THREE YEARS, OVERLAPPING WITH CURRENT PLANS. THESE AMOUNTS ARE INCLUDED IN TAXABLE COMPENSATION.

PART II, ROW (II):

SOME OF THE ORGANIZATION'S OFFICERS ARE PAID BY A RELATED ORGANIZATION. ACCORDINGLY, THEIR COMPENSATION IS REPORTED ON ROW (II).

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• CELEBRATION DENTAL SERVICES LLC

  MANAGEMENT SERVICES · FL

  Directly controlled by DELTA DENTAL OF CALIFORNIA

• DENTEGRA INSURANCE HOLDINGS LLC

  HOLDING COMPANY · DE

  Directly controlled by DENTEGRA INSURANCE COMPANY

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• DENTEGRA GROUP INC

  C · HOLDING COMPANY · DE

• DENTEGRA INSURANCE COMPANY

  C · INSURANCE COMPANY · DE · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DENTEGRA INSURANCE COMPANY OF NEW ENGLAND

  C · INSURANCE COMPANY · MA · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DELTA DENTAL INSURANCE COMPANY

  C · INSURANCE COMPANY · DE · 91.7% owned · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF NEVADA INC

  C · INSURANCE COMPANY · NV · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF UTAH INC

  C · INSURANCE COMPANY · UT · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL PROGRAMS INC

  C · INSURANCE COMPANY · TX · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF ALABAMA INC

  C · INSURANCE COMPANY · AL · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF NEW MEXICO INC

  C · INSURANCE COMPANY · NM · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ALPHA DENTAL OF ARIZONA INC

  C · INSURANCE COMPANY · AZ · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DENTEGRA SEGUROS DENTALES SA

  C · INSURANCE COMPANY · MX · controlled entity

  Directly controlled by DENTEGRA INSURANCE COMPANY

• DELTA DENTAL OF PUERTO RICO INC

  C · INSURANCE COMPANY · RQ · 64.13% owned · controlled entity

  Directly controlled by DELTA DENTAL OF CALIFORNIA

• DDC INSURANCE HOLDINGS INC

  C · HOLDING COMPANY · DE · 100% owned · controlled entity

  Directly controlled by DELTA DENTAL OF CALIFORNIA

• ALLIED ADMINISTRATORS INC

  C · THIRD PARTY ADMIN SERVICES · CA · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• DELTA DENTAL IPA OF NEW YORK INC

  C · INDEPENDENT PRACTICE ASSOCIATION · NY · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC

• ORAL HEALTH INNOVATION CENTER INC

  C · INACTIVE · DE · controlled entity

  Directly controlled by DDC INSURANCE HOLDINGS INC