Health Net 2002 Annual Report Download - page 87

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HEALTH NET, INC. | 85
segment pretax profit or loss subsequent to the allocation of actual shared services expenses as its measurement of segment
performance. We changed our methodology of determining segment pretax profit or loss to better reflect management’s
revised view of the relative costs incurred proportionally by our reportable segments. Certain prior period balances have
been reclassified to conform to our chief operating decision maker’s current view of segment pretax profit or loss.
A reconciliation of the total reportable segments’ measures of profit to the Company’s consolidated income before
income taxes and cumulative effect of a change in accounting principle for the years ended December 31, 2002, 2001 and
2000 is as follows (amounts in thousands):
2002 2001 2000
Total reportable segment profit $442,873 $308,867 $ 361,148
Loss from corporate and other entities (21,041) (15,778) (97,992)
421,832 293,089 263,156
Asset impairment and restructuring charges (60,337) (79,667) –
Net loss on assets held for sale and sale of businesses and properties (5,000) (76,072) (409)
Income before income taxes and cumulative effect of a change in
accounting principle as reported $356,495 $137,350 $ 262,747
Loss from other corporate entities and employer services group subsidiary, which are not part of our Health Plan Services
and Government Contracts reportable segments, are excluded from our measurement of segment performance. Other corpo-
rate entities include our facilities, warehouse, reinsurance and surgery center subsidiaries. Asset impairment, restructuring
charges and net loss on assets held for sale and sale of businesses and properties are excluded from our measurement of
segment performance since they are unusual items and are not managed within either of our reportable segments.
NOTE 16—Quarterly Information (Unaudited)
The following interim financial information presents the 2002 and 2001 results of operations on a quarterly basis (in thou-
sands, except per share data).
2002
March 31 June 30 September 30 December 31
Total revenues $2,469,818 $2,505,964 $2,577,650 $2,648,111
Income from operations before
income taxes and cumulative effect of a change in
accounting principle 89,841 97,237 104,567 64,850
Net income 49,814 64,735 69,024 45,053
BASIC EARNINGS PER SHARE
Net income $0.40 $ 0.52 $ 0.55 $ 0.37
DILUTED EARNINGS PER SHARE
Net income $ 0.40 $ 0.51 $ 0.55 $ 0.36
2001
March 31 June 30 September 30 December 31
Total revenues $2,488,124 $2,546,703 $2,544,939 $2,484,694
Income (loss) from operations before
income taxes 67,328 (22,548) 3,691 88,879
Net income (loss) 42,415 (14,205) 2,326 55,993
BASIC EARNINGS (LOSS) PER SHARE
Net income (loss) $ 0.35 $ (0.12) $ 0.02 $ 0.45
DILUTED EARNINGS (LOSS) PER SHARE
Net income (loss) $ 0.34 $ (0.12) $ 0.02 $ 0.45