Health Net 2011 Annual Report Download - page 131

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows our noncurrent investments’ fair values and gross unrealized losses for individual
securities that have been in a continuous loss position through December 31, 2010:
Less than 12 Months 12 Months or More Total
Fair Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(Dollars in millions)
Obligations of states and other political
subdivisions ............................. $— $— $8.8 $(1.7) $8.8 $(1.7)
Note 5—Property and Equipment
Property and equipment are comprised of the following as of December 31:
2011 2010
(Dollars in millions)
Land ............................................................ $ 1.7 $ 1.7
Leasehold improvements under development ............................ 5.1 0.5
Buildings and improvements ......................................... 41.3 40.6
Furniture, equipment and software ..................................... 302.8 274.3
350.9 317.1
Less accumulated depreciation ........................................ (205.6) (194.0)
Property and equipment, net .......................................... $145.3 $ 123.1
Our depreciation expense was $28.8 million, $31.3 million and $42.9 million for the years ended
December 31, 2011, 2010 and 2009, respectively.
Note 6—Financing Arrangements
Revolving Credit Facility
We had a $900 million five-year unsecured revolving credit facility with Bank of America, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer and the other lenders party thereto, and such revolving
credit facility was scheduled to mature on June 25, 2012. In October 2011, we entered into a new $600 million
unsecured revolving credit facility due in October 2016, which includes a $400 million sublimit for the issuance
of standby letters of credit and a $50 million sublimit for swing line loans (which sublimits may be increased in
connection with any increase in the credit facility described below). In addition, we have the ability from time to
time to increase the new credit facility by up to an additional $200 million in the aggregate, subject to the receipt
of additional commitments. We utilized proceeds of the initial borrowing on the closing date of the new credit
facility to refinance our obligations under our previous revolving credit facility. As of December 31, 2011,
$112.5 million was outstanding under our new revolving credit facility and the maximum amount available for
borrowing under the new revolving credit facility was $428.1 million (see “—Letters of Credit” below).
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