Health Net 2010 Annual Report Download - page 147

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) Includes a $14.5 million charge related to our operations strategy and other cost management initiatives.
(2) Includes a $24.9 million charge related to our operations strategy and other cost management initiatives,
$9.0 million charge related to early debt extinguishment and related interest rate swap termination, $6
million goodwill impairment charge related to our Northeast Operations, $21.6 million benefit from a
litigation reserve true-up and $8.2 million favorable adjustment to loss on sale of Northeast health plan
subsidiaries.
(3) Includes a $8.6 million charge related to our operations strategy and other cost management initiatives and
$21.5 million favorable adjustment to loss on sale of Northeast health plan subsidiaries.
(4) Includes a $13.2 million charge related to our operations strategy and other cost management initiatives,
$24.9 million benefit from a litigation reserve true-up and $12.3 million favorable adjustment to loss on sale
of Northeast health plan subsidiaries.
(5) The sum of the quarterly amounts may not equal the year-to-date amounts due to rounding.
2009
March 31 June 30 September 30 December 31
(Dollars in millions, except per share data)
Total revenues .................................... $3,932.8 $4,013.7 $3,968.7 $3,798.1
Health plan services costs ........................... 2,721.8 2,718.0 2,735.0 2,557.2
Government contracts costs ......................... 725.0 791.0 716.3 707.4
Income (loss) from operations before income taxes ....... 24.1 63.8 (78.9) (34.3)
Net income (loss) ................................. 22.0(1) 40.1(2) (66.0)(3) (45.2)(4)
Basic earnings (loss) per share ....................... $ 0.21 $ 0.39 $ (0.64) $ (0.43)
Diluted earnings (loss) per share (5) ................... $ 0.21 $ 0.38 $ (0.64) $ (0.43)
(1) Includes a $44.8 million charge related to litigation and regulatory-related matters and our operations
strategy, and $7 million decrease in reserve for uncertain tax positions.
(2) Includes a $17.6 million charge related to litigation and regulatory-related matters and our operations
strategy, and $4 million decrease in reserve for uncertain tax positions.
(3) Includes a $18.9 million charge related to litigation, regulatory-related matters and our operations strategy
and a $170.6 million pretax asset impairment charge related to the Northeast Sale (see Note 3 for more
information), $3 million decrease in reserve for uncertain tax positions, and $9 million decrease in share-
based compensation expense due to change in forfeiture assumptions.
(4) Includes a $42.4 million charge related to litigation and regulatory-related matters and our operations
strategy, an $4.3 million asset impairment charge and a $105.9 million loss on sale of our Northeast health
plan subsidiaries (see Note 3 for more information).
(5) The sum of the quarterly amounts may not equal the year-to-date amounts due to rounding.
Note 18—Credit Quality of Financing Receivables
As of December 31, 2010 and 2009, our financing receivables consisted of the following (amounts in
millions):
2010 2009
Amounts due for contingent membership renewals .................... $33.8 $ 0
Loans to health care providers .................................... 13.6 8.2
Amounts due for contingent membership renewals arose from the Northeast Sale (see Notes 2 and 3).
United is required to pay us additional consideration as the members of the Acquired Companies transition to
F-50