Health Net 2014 Annual Report Download - page 65

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Item 6. Selected Financial Data.
The following selected financial and operating data as of and for the years ended December 31, 2014, 2013, and 2012
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, 2011 and 2010 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,
2014 2013 2012 2011 2010
(Dollars in thousands, except per share and PMPM data)
REVENUES:
Health plan services premiums................................. $ 13,361,170 $ 10,377,073 $ 10,459,098 $ 9,878,687 $ 9,492,460
Government contracts............................................... 603,975 572,266 689,121 1,416,619 3,344,483
Net investment income ............................................. 45,166 69,613 82,434 74,161 71,181
Administrative services fees and other income ........ (1,725) 34,791 17,968 11,523 21,126
Divested operations and services revenue ................ — — 40,471 34,446 186,167
Total revenues............................................... $ 14,008,586 $ 11,053,743 $ 11,289,092 $ 11,415,436 $ 13,115,417
INCOME SUMMARY (1):
Income from continuing operations.......................... $ 145,629 $ 170,126 $ 25,681 $ 61,056 $ 171,885
Income on discontinued operation, net of tax........... — — 96.382 11,064 32,358
Net income................................................................ $ 145,629 $ 170,126 $ 122,063 $ 72,120 $ 204,243
NET INCOME PER SHARE—DILUTED (1): ...
Income from continuing operations.......................... $ 1.80 $ 2.12 $ 0.31 $ 0.68 $ 1.73
Income of discontinued operation, net of tax............ $ — $ — $ 1.16 $ 0.12 $ 0.33
Net income................................................................ $ 1.80 $ 2.12 $ 1.47 $ 0.80 $ 2.06
Weighted average shares outstanding:......................
Diluted........................................................... 80,777 80,404 83,112 89,970 99,232
BALANCE SHEET DATA:
Cash and cash equivalents and investments
available for sale ................................................. $ 2,664,763 $ 2,059,943 $ 2,152,622 $ 1,790,397 $ 2,022,112
Total assets................................................................ 5,395,934 3,929,125 3,934,390 3,607,669 4,131,693
Loans payable—Long term....................................... 100,000 100,000 100,000 112,500 —
Senior notes payable ................................................. 399,504 399,300 399,095 398,890 398,685
Total stockholders’ equity (2)................................... 1,709,222 1,628,811 1,557,030 1,443,146 1,694,416
OPERATING DATA:
Pretax margin from continuing operations ............... 1.4% 2.4% 0.3% 1.4% 2.1%
Western Region Operations health plans services
medical care ratio (MCR) ................................... 84.6% 85.6% 89.1% 86.5% 87.1%
Western Region Operations total G&A expense
ratio ..................................................................... 10.9% 10.3% 8.6% 8.6% 8.5%
Western Region Operations selling costs ratio......... 2.0% 2.3% 2.4% 2.4% 2.5%
Western Region Operations health plan services
premiums per member per month (PMPM)........ $385.42 $349.92 $341.28 $322.28 $315.55
Western Region Operations health plan services
costs PMPM........................................................ $319.82 $299.66 $304.01 $278.85 $274.70
Net cash provided by operating activities................. $ 776,001 $ 95,389 $ 32,540 $ 103,380 $ 308,038
Net cash (used in) provided by investing activities .. $ (184,852) $ 579 $ (12,558) $ 222.227 $ (200,593)
Net cash (used in) provided by financing activities.. $ (155,171) $ (3,373) $ 89,875 $ (445,492) $ (440,110)
__________
(1) For 2014, includes an $88.5 million pretax asset impairment primarily related to our assets held for sale in connection with the
Cognizant Transaction and $96.8 million of pretax expenses primarily related to the Cognizant Transaction. Our operating results for the
year ended December 31, 2014 were also impacted by fees imposed under the ACA, including $141.4 million in amortization of deferred
costs of health insurer fee and $97.6 million in other ACA fees. For 2013, we had approximately $56 million in favorable reserve