Health Net 2002 Annual Report Download - page 86

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84 | HEALTH NET, INC.
Presented below are segment data for the three years in the period ended December 31 (amounts in thousands).
2002
Health Plan Government Corporate
Services Contracts And Other(1) Total
Revenues from external sources $8,584,418 $1,498,689 $ – $10,083,107
Intersegment revenues 46,657 – (46,657) –
Investment income 75,976 33 (10,448) 65,561
Other income 3,327 6 49,542 52,875
Interest expense 5,687 5 34,534 40,226
Depreciation and amortization 48,012 2,599 19,581 70,192
Asset impairment and restructuring charges 27,837 (1,676) 34,176 60,337
Loss on sale of businesses and properties – – 5,000 5,000
Segment profit (loss) 397,657 45,216 (21,041) 421,832
Segment assets 3,048,608 405,193 12,876 3,466,677
2001
Health Plan Government Corporate
Services Contracts And Other(1) Total
Revenues from external sources $8,576,202 $1,339,066 $ – $ 9,915,268
Intersegment revenues 60,950 – (60,950) –
Investment income 90,936 430 (12,456) 78,910
Other income 2,044 24 68,214 70,282
Interest expense 5,843 20 49,077 54,940
Depreciation and amortization 62,233 2,131 34,331 98,695
Asset impairment and restructuring charges 53,115 3,591 22,961 79,667
Loss on sale of businesses and properties – – 76,072 76,072
Segment profit (loss) 290,343 18,524 (15,778) 293,089
Segment assets 3,039,981 403,271 116,395 3,559,647
2000
Health Plan Government Corporate
Services Contracts And Other(1) Total
Revenues from external sources $7,609,625 $1,265,124 $ – $ 8,874,749
Intersegment revenues 126,601 179 (126,780) –
Investment income 97,113 952 (7,978) 90,087
Other income 2,816 87 108,816 111,719
Interest expense 2,821 – 85,109 87,930
Depreciation and amortization 64,947 3,764 37,188 105,899
Loss on sale of businesses and properties – – 409 409
Segment profit (loss) 295,280 65,868 (97,992) 263,156
Segment assets 3,149,047 405,790 115,279 3,670,116
(1) Includes intersegment eliminations and results from our corporate entities and employer services group subsidiary.
Prior to January 1, 2002, our basis of measurement of segment profit or loss was pretax income or loss after allocation of
budgeted costs for our corporate shared services to each of our reportable segments, Health Plan Services and Government
Contracts. Shared service expenses include costs for information technology, finance, operations and certain other administra-
tive functions.
Beginning January 1, 2002, we implemented several initiatives to reduce our general and administrative (G&A)
expenses. At that time, we changed our methodology from allocating budgeted costs to allocating actual expenses incurred
for corporate shared services to more properly reflect segment costs. Our chief operating decision maker now uses the