Health Net 2000 Annual Report Download - page 53

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Notes to Consolidated Financial Statements HEALTH NET 51
1999 Charges
The following tables summarize the 1999 charges by quarter and by type (amounts in millions):
1999 Activity
1999 Net Balance at
1999 Modifications 1999 Cash December 31,
Charges to Estimate Charges Payments Non-Cash 1999
Severance and benefit
related costs $18.5 $(1.3) $17.2 $ (8.6) $ –$8.6
Asset impairment costs 6.2 –6.2 –(6.2) –
Real estate lease
termination costs 0.8 –0.8 (0.8) ––
Other costs 1.8 (0.1) 1.7 (1.4) –0.3
Total $27.3 $(1.4) $25.9 $(10.8) $(6.2) $8.9
First Quarter 1999
Charge $21.1 $(1.4) $19.7 $(10.8) $ –$8.9
Fourth Quarter 1999
Charge 6.2 –6.2 –(6.2) –
Total $27.3 $(1.4) $25.9 $(10.8) $(6.2) $8.9
Balance at 2000 Balance at Expected
December 31, Cash December 31, Future Cash
1999 Payments 2000 Outlays
Severance and benefit
related costs $8.6 $(8.6) $ –$ –
Asset impairment costs ––––
Real estate lease
termination costs ––––
Other costs 0.3 (0.3) ––
Total $8.9 $(8.9) $ –$ –
First Quarter 1999
Charge $8.9 $(8.9) $ –$ –
Fourth Quarter 1999
Charge ––––
Total $8.9 $(8.9) $ –$ –
received one-time loans from the Company aggregating
$775,000 which ranged from $125,000 to $400,000
each.The loans accrue interest at the prime rate and
each is payable upon demand by the Company in the
event of a voluntary termination of employment of the
respective officer or termination for cause. During 1999,
three executive officers of the Company, in connection
with their hire or relocation, received one-time loans
from the Company aggregating $550,000 which ranged
from $100,000 to $300,000 each.The loans accrue
interest at the prime rate and each is payable upon
demand by the Company in the event of a voluntary
termination of employment of the respective officer or
termination for cause.
The principal and interest of the loans will be for-
given by the Company at varying times between one
and five years after the date of hire or relocation of the
respective officers. As of December 31, 2000, the
aggregate outstanding principal balance of the six loans
was $648,334.
NOTE 14 –Asset Impairment, Merger,
Restructuring and Other Costs
The following sets forth the principal components of
asset impairment, merger, restructuring and other costs
for the years ended December 31 (amounts in millions):
2000 1999 1998
Severance and benefit
related costs $ –$17.2 $ 21.2
Real estate lease
termination costs –0.8 –
Asset impairments and other
charges related to FPA
Medical Management ––84.1
Asset impairment and
other costs –6.2 112.4
Other costs –1.7 22.4
–25.9 240.1
Modifications to prior
year restructuring plans –(14.2) –
Total $ –$11.7 $240.1