Health Net 2002 Annual Report Download - page 30

RESULTS OF OPERATIONS
CONSOLIDATED OPERATING RESULTS
Our net income for the year ended December 31, 2002
was $228.6 million or $1.82 per diluted share, compared
to the same period in 2001 of $86.5 million or $0.69 per
diluted share. Our net income for the year ended
December 31, 2000 was $163.6 million, or $1.33 per
diluted share.
Included in our results for the year ended December 31,
2002 is a pretax loss of $65.3 million comprised of the
following:
■$35.8 million for impairment of purchased and internally
developed software assets as a result of our operations
and systems consolidation,
■$3.6 million for an other-than temporary decline of an
investment available for sale,
■$7.1 million write-off of our investments in AmCareco,
Inc. which arose from a previous divestiture,
■$2.6 million estimated loss on the sale of our claims
processing subsidiary,
■$2.4 million for impairment of a property held for
sale in Trumbull, Connecticut,
■$1.5 million true-up adjustment of our 2001
restructuring plan, and
■$12.4 million write-off of our investment in MedUnite.
Included in our results for the year ended December 31,
2001 are a loss of $76.1 million for the sales of our
Florida health plan and related corporate facility building
and costs of $79.7 million related to our 2001 restruc-
turing plan.
See “Asset Impairment and Restructuring Charges”
and “Net Loss on Assets Held for Sale and Sale of
Businesses and Properties.”
28 | HEALTH NET, INC.
Effective August 1, 2001, we completed the sale of
our Florida health plan, known as Foundation Health, a
Florida Health Plan, Inc., to Florida Health Plan Holdings
II, L.L.C. The Florida health plan had approximately
166,000 members at the close of the sale. See “Net Loss
on Assets Held for Sale and Sale of Businesses and
Properties.”
This discussion and analysis and other portions of this
2002 Annual Report to Stockholders and our Annual
Report on Form 10-K for the year ended December 31,
2002 (the Form 10-K) contain “forward-looking state-
ments” within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of
the Securities Act of 1933, as amended, that involve risks
and uncertainties. All statements other than statements of
historical information provided herein may be deemed to
be forward-looking statements. Without limiting the fore-
going, the words “believes,” “anticipates,” “plans,”
“expects” and similar expressions are intended to identify
forward-looking statements. Factors that could cause
actual results to differ materially from those reflected in
the forward-looking statements include, but are not limited
to, the matters described in the “Cautionary Statements”
section and other portions of the Form 10-K and the risks
discussed in our other filings with the SEC. You should not
place undue reliance on these forward-looking statements,
which reflect management’s analysis, judgment, belief or
expectation only as of the date hereof. Except as required
by law, we undertake no obligation to publicly revise these
forward-looking statements to reflect events or circum-
stances that arise after the date of this report.