Health Net 2011 Annual Report Download - page 62

Item 6. Selected Financial Data.
The following selected financial and operating data as of and for the years ended December 31, 2011, 2010,
and 2009 are derived from our audited consolidated financial statements and notes thereto contained in this
Annual Report on Form 10-K. The selected financial and operating data as of and for the years ended
December 31, 2008 and 2007 are derived from our audited consolidated financial statements which are not
included herein. The selected financial and operating data should be read in conjunction with “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated
financial statements and notes thereto contained elsewhere in this Annual Report on Form 10-K.
Year Ended December 31,
2011 2010 2009 2008 2007
(Dollars in thousands, except per share and PMPM data)
REVENUES:
Health plan services premiums ................. $10,364,278 $ 9,996,888 $12,440,589 $12,392,006 $11,435,314
Government contracts ........................ 1,416,619 3,344,483 3,104,700 2,835,261 2,501,677
Net investment income ....................... 74,161 71,181 105,930 91,042 120,176
Administrative services fees and other income ..... 11,532 21,133 62,022 48,280 51,104
Northeast administrative services fees and other .... 34,446 186,167 — — —
Total revenues .......................... $11,901,036 $13,619,852 $15,713,241 $15,366,589 $14,108,271
INCOME SUMMARY (1):
Net income (loss) ............................ $ 72,120 $ 204,243 $ (49,004) $ 95,003 $ 193,697
NET INCOME (LOSS) PER SHARE—
DILUTED (1):
Net income (loss) ............................ $ 0.80 $ 2.06 $ (0.47) $ 0.88 $ 1.70
Weighted average shares outstanding:
Diluted ................................ 89,970 99,232 103,849 107,610 113,829
BALANCE SHEET DATA:
Cash and cash equivalents and investments available
for sale .................................. $ 1,790,397 $ 2,022,112 $ 2,079,815 $ 2,172,859 $ 2,564,295
Total assets ................................. 3,607,669 4,131,693 4,282,651 4,816,350 4,933,055
Loans payable—Current ...................... — — 104,007 27,335 35,000
Loans payable—Long term .................... 112,500 — 100,000 253,992 112,363
Senior notes payable ......................... 398,890 398,685 398,480 398,276 398,071
Total stockholders’ equity (2) .................. 1,443,146 1,694,416 1,695,783 1,752,126 1,875,582
OPERATING DATA:
Pretax margin ............................... 1.5% 2.4% (0.2)% 1.0% 2.5%
Western Region Operations health plans services
medical care ratio (MCR) (3) ................. 86.4% 86.6% 86.7% 87.4% 85.4%
Western Region Operations G&A expense
ratio (3) ................................. 8.9% 8.9% 8.4% 8.3% 11.1%
Western Region Operations selling costs ratio (3) . . 2.3% 2.4% 2.4% 2.7% 2.9%
Western Region Operations health plan services
premiums per member per month (PMPM) (3) . . . $ 293.27 $ 282.57 $ 272.85 $ 256.72 $ 263.54
Western Region Operations health plan services
costs PMPM (3) ........................... $ 253.42 $ 244.58 $ 236.61 $ 224.44 $ 225.00
Net cash provided by operating activities (4) ...... $ 103,380 $ 308,038 $ 82,659 $ 58,741 $ 476,904
Net cash provided by (used in) investing
activities ................................. $ 222,227 $ (200,593) $ (135,174) $ (67,871) $ (230,195)
Net cash (used in) provided by financing activities
(4)...................................... $ (445,492) $ (440,110) $ 67,117 $ (329,686) $ 55,502
(1) For 2011, includes a $181 million pretax expense related to a litigation judgment in the first quarter. In addition, our
operating results for the year ended December 31, 2011 were impacted by a $40.8 million favorable adjustment to loss
on sale of Northeast health plan subsidiaries and a $6.8 million benefit from litigation reserve true-ups, partially offset by
pretax costs of $25.2 million related to our general and administrative cost reduction efforts. For 2010, includes pretax
charges of $61.2 million related to our operations strategy and other cost management initiatives, and $9.0 million in
early debt extinguishment and related interest rate swap termination costs, partially reduced by a $46.5 million benefit
from litigation reserve true-ups and a $42.0 million adjustment to loss on sale of Northeast health plan subsidiaries. For
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