Health Net 2005 Annual Report Download - page 119

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care
plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects
for the year ended December 31, 2005:
1-Percentage
Point
Increase
1-Percentage
Point
Decrease
(Dollars in millions)
Effect on total of service and interest cost .................. $0.1 $(0.1)
Effect on postretirement benefit obligation ................. $1.1 $(1.2)
Contributions
We expect to contribute $942,000 to our pension plan and $420,000 to our postretirement health and life
plans throughout 2006. The entire amount expected to be contributed, in the form of cash, to the defined benefit
pension and postretirement health and life plans during 2006 is expected to be paid out as benefits during the
same year.
Estimated Future Benefit Payments
We estimate that benefit payments related to our pension and postretirement health and life plans over the
next ten years will be as follows:
Pension
Benefits
Other
Benefits
(Dollars in millions)
2006 ...................................................... $ 0.9 $0.4
2007 ...................................................... 0.9 0.5
2008 ...................................................... 0.9 0.6
2009 ...................................................... 1.0 0.7
2010 ...................................................... 1.0 0.8
Years 2011–2015 ............................................ 10.3 4.7
Note 10—Income Taxes
Significant components of the provision for income taxes are as follows for the years ended December 31:
2005 2004 2003
(Dollars in millions)
Current:
Federal ................................................ $111.4 $ 46.6 $165.9
State .................................................. 31.0 10.6 33.8
Total current ............................................... 142.4 57.2 199.7
Deferred:
Federal ................................................ 3.6 (26.1) (0.4)
State .................................................. 0.5 (6.3) (5.4)
Total deferred .............................................. 4.1 (32.4) (5.8)
Total income tax provision .................................... $146.5 $ 24.8 $193.9
F-31