Health Net 2005 Annual Report Download - page 117

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
coverage depending upon years of service. We have two other benefit plans that we have acquired as part of the
acquisitions made in 1997. One of the plans is frozen and non-contributory, whereas the other plan is
contributory by certain participants. Under these plans, we pay a percentage of the costs of medical, dental and
vision benefits during retirement. The plans include certain cost-sharing features such as deductibles,
co-insurance and maximum annual benefit amounts which vary based principally on years of credited service.
The following table sets forth the plans’ obligations and funded status at December 31:
Pension Benefits Other Benefits
2005 2004 2005 2004
(Dollars in millions)
Change in benefit obligation:
Benefit obligation, beginning of year ............... $20.5 $ 17.3 $ 8.5 $ 9.4
Service cost ................................... 1.0 1.0 0.3 0.4
Interest cost ................................... 1.2 1.0 0.4 0.5
Benefits paid .................................. (0.9) (0.7) (0.3) (0.3)
Actuarial loss (gain) ............................. 1.1 1.9 1.4 (1.5)
Benefit obligation, end of year ..................... $22.9 $ 20.5 $ 10.3 $ 8.5
Change in fair value of plan assets:
Plan assets, beginning of year ..................... $ — $ — $ — $—
Employer contribution ........................... 0.9 0.7 0.3 0.3
Benefits paid .................................. (0.9) (0.7) (0.3) (0.3)
Plan assets, end of year .......................... $ — $ — $ — $—
Underfunded status ............................. $(22.9) $(20.5) $(10.3) $(8.5)
Unrecognized net actuarial loss (gain) ............... 0.8 (0.3) 1.7 0.3
Unrecognized prior service cost .................... 2.2 2.7 0.2 0.2
Net amount recognized .......................... $(19.9) $(18.1) $ (8.4) $(8.0)
Amounts recognized in our consolidated balance sheets as other noncurrent liabilities as of December 31
consist of:
Pension Benefits Other Benefits
2005 2004 2005 2004
(Dollars in millions)
Accrued benefit cost ............................. $(20.3) $(18.5) $(8.4) $(8.0)
Accumulated other comprehensive income ........... 0.4 0.4 — —
Net amount recognized .......................... $(19.9) $(18.1) $(8.4) $(8.0)
Our pension plans with an accumulated benefit obligation in excess of plan assets had $22.9 million and
$20.5 million of projected benefit obligation as of December 31, 2005 and 2004, respectively, and had $17.0
million and $15.2 million of accumulated benefit obligation as of December 31, 2005 and 2004, respectively.
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