Health Net 2011 Annual Report Download - page 155

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
includes costs that are excluded from the calculation of segment pretax income because they are not managed
within the segments and are not directly identified with a particular operating segment. Accordingly, these costs
are not included in the performance evaluation of the reportable segments by our CODM. In addition, certain
charges, including those related to our operations strategy and corporate overhead cost reduction efforts, as well
as asset impairments, are reported as part of Corporate/Other.
Presented below are segment data for the three years ended December 31, 2011, 2010 and 2009.
2011
Western Region
Operations
Government
Contracts
Northeast
Operations
Corporate/
Other/
Eliminations Total
(Dollars in millions)
Revenues from external sources ........... $10,361.9 $1,416.6 $ 2.4 $ — $11,780.9
Intersegment revenues ................... 11.8 — — (11.8) —
Net investment income .................. 74.1 — 0.1 — 74.2
Administrative services fees and other
income ............................. 11.5 — — — 11.5
Northeast administrative services fees and
other ............................... — — 34.5 — 34.5
Interest expense ........................ 32.0 — 0.2 — 32.2
Depreciation and amortization ............ 32.2 — — — 32.2
Share-based compensation expense ........ 22.6 4.0 1.0 — 27.6
Segment pretax income (loss) ............. 264.4 185.2 (71.2) (199.4) 179.0
2010
Western Region
Operations
Government
Contracts
Northeast
Operations
Corporate/
Other/
Eliminations Total
(Dollars in millions)
Revenues from external sources ........... $9,925.7 $3,344.5 $ 71.2 $ — $13,341.4
Intersegment revenues ................... 54.2 0.1 — (54.3) —
Net investment income .................. 70.3 — 0.9 — 71.2
Administrative services fees and other
income ............................. 26.6 — — (5.5) 21.1
Northeast administrative services fees and
other ............................... — — 186.2 — 186.2
Interest expense ........................ 34.9 — — — 34.9
Depreciation and amortization ............ 34.6 — 0.2 — 34.8
Share-based compensation expense ........ 26.0 4.1 3.0 — 33.1
Segment pretax income (loss) ............. 244.5 178.8 (68.7) (23.7) 330.9
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