Health Net 1998 Annual Report Download - page 58

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5 6 F O U N D ATIO N H EALTH SYST EMS, I N C.
The reconciling amounts to adjust total reportable segment amounts to consolidated amounts represent
amounts from non-reportable operating segments comprised primarily of corporate units.
Note 17 – Quarterly Information (unaudited)
The following restated interim financial information presents the 1998 and 1997 results of operations on a
quarterly basis (in thousands,except per share data) (see Note 1):
March 31 June 30 September 30 December 31
1 9 9 8 :
Total revenues $2,175,374 $2,236,971 $2,213,954 $2,269,777
Income (loss) from continuing operations
before income taxes 43,262 1,529 (127,572) (171,373)
Income (loss) from continuing operations 26,238 956 (88,619) (103,733)
Net income (loss) 26,238 956 (88,619) (103,733)
Basic and diluted earnings (loss) per shar e
Continuing operations 0.22 0.01 (0.73) (0.85)
Net 0.22 0.01 (0.73) (0.85)
March 31 June 30 September 30 December 31
1 9 9 7 :
Total revenues $1,770,019 $1,773,422 $1,793,379 $1,898,199
Income (loss) from continuing operations
before income taxes 78,683 (313,108) 97,081 48,096
Income (loss) from continuing operations 47,624 (205,792) 59,803 30,535
Net income (loss) 58,481 (200,128) 68,901 (114,338)
Basic and diluted earnings (loss) per share
( i )
Continuing operations 0.38 (1.64) 0.49 0.25
Net 0.47 (1.60) 0.57 (0.94)
(i) The sum of quarterly earnings (loss) per share amounts may not equal the year-to-date earnings (loss) per share amounts due to transactions affecting the weighted average
number of shares outstanding in each quarter.
Note 18 – Subsequent Events
In February 1999,the Company entered into a
definitive agreement to sell all of the outstanding
shares of its pharmacy benefit management sub-
sidiary, Foundation Health Pharmaceutical Services,
Inc.,for $70 million in cash.Completion of the
transaction is subject to certain closing conditions,
and is expected to close in the first half of 1999.
In March 1999, the Company signed a letter
of intent to sell its Colorado health plan subsidiary.
The completion of the transaction will be subject
to reaching a definitive agreement and va rious condi-
t i o n s , including the receipt of all necessary re g u l a t o ry
a p p r ovals and other customary closing conditions.
In March 1999, the Company also entered into
a definitive agreement to sell all of the outstanding
s h a res of its New Mexico health plan subsidiary.
Completion of the transaction is subject to va ri o u s
conditions and certain regulatory approvals.