Health Net 2011 Annual Report Download - page 135

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following tables present information about our assets and liabilities measured at fair value on a
recurring basis at December 31, 2011 and 2010, and indicate the fair value hierarchy of the valuation techniques
utilized by us to determine such fair value (dollars in millions):
Level 1
Level 2-
current
Level 2-
noncurrent Level 3 Total
As of December 31, 2011
Assets:
Investments—available-for-sale
Asset-backed debt securities:
Residential mortgage-backed securities ........ $— $ 495.3 $— $— $ 495.3
Commercial mortgage-backed securities ........ — 94.4 — — 94.4
Other asset-backed securities ................. — 32.6 — — 32.6
U.S. government and agencies:
U.S. Treasury securities ..................... 25.5 — — — 25.5
U.S. Agency securities ...................... — 7.0 — — 7.0
Obligations of states and other political
subdivisions ................................ — 517.9 — 0.2 518.1
Corporate debt securities ........................ — 385.1 2.1 — 387.2
Total investments at fair value ........................ $25.5 $1,532.3 $ 2.1 $ 0.2 $1,560.1
Embedded contractual derivative ................. — — — 5.3 5.3
Total assets at fair value ............................ $25.5 $1,532.3 $ 2.1 $ 5.5 $1,565.4
Level 1
Level 2-
current
Level 2-
noncurrent Level 3 Total
December 31, 2010
Assets:
Investments—available-for-sale
Asset-backed debt securities:
Residential mortgage-backed securities ........ $— $ 527.6 $— $— $ 527.6
Commercial mortgage-backed securities ........ — 80.4 — — 80.4
Other asset-backed securities ................. — 40.2 — — 40.2
U.S. government and agencies:
U.S. Treasury securities ..................... 25.7 — — — 25.7
U.S. Agency securities ...................... — 77.6 — — 77.6
Obligations of states and other political
subdivisions ................................ — 517.3 8.8 9.9 536.0
Corporate debt securities ........................ — 384.5 — — 384.5
Total assets at fair value ............................ $25.7 $1,627.6 $ 8.8 $ 9.9 $1,672.0
We had no transfers between Levels 1 and 2 of financial assets or liabilities that are fair valued on a
recurring basis during the years ended December 31, 2011 and 2010. In determining when transfers between
levels are recognized, our accounting policy is to recognize the transfers based on the actual date of the event or
change in circumstances that caused the transfer.
F-31