Health Net 2011 Annual Report Download - page 136

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The changes in the balances of Level 3 financial assets for the years ended December 31, 2011 and 2010
were as follows (dollars in millions):
2011 2010
Beginning balance ..................................................... $9.9 $10.0
Transfers into Level 3 .............................................. — —
Transfers out of Level 3 ............................................. — —
Total gains and losses ..................................................
Realized in net income .............................................. (2.4) —
Unrealized in accumulated other comprehensive income ................... — —
Purchases, sales, issuances and settlements ..................................
Purchases/additions ................................................ 5.3 —
Sales ............................................................ (7.3) (0.1)
Issuances ........................................................ — —
Settlements ....................................................... — —
Ending balance ........................................................ $5.5 $ 9.9
Change in unrealized gains (losses) included in net income related to assets still
held ............................................................... $— $—
We had no financial assets or liabilities that were fair valued on a non-recurring basis during the year ended
December 31, 2011.
The following table presents information about financial assets measured at fair value on a non-recurring
basis during the year ended December 31, 2010 and indicates the fair value hierarchy of the valuation techniques
utilized by us to determine such fair value (dollars in millions):
Level 1 Level 2 Level 3 Total Loss
As of December 31, 2010
Goodwill—Northeast Operations ................................. $— $— $— $(6.0)
The changes in the balances of Level 3 financial assets that are fair valued on a non-recurring basis for the
year ended December 31, 2010 were as follows (dollars in millions):
Year Ended
December 31, 2010
Beginning Northeast Operations’ goodwill, intangible assets and property and equipment
balance on January 1 ......................................................... $6.0
Impairment related to Northeast Operations ......................................... (6.0)
Ending Northeast Operations’ goodwill balance ...................................... $—
See Note 2 for a discussion on the goodwill valuation and the impairment of the Northeast Operations’
goodwill.
Note 8—Long-Term Equity Compensation
For the year ended December 31, 2011 the compensation cost that has been charged against income under our
various stock option and long-term incentive plans (the Plans) was $27.6 million. The total income tax benefit
recognized in the income statement for share-based compensation arrangements was $10.7 million (See Note 2).
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