Health Net 2003 Annual Report Download - page 111

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Presented below are segment data for the three years ended December 31 (amounts in thousands).
2003
Health Plan
Services
Government
Contracts
Corporate
And Other(1) Total
Revenues from external sources ........................... $9,093,219 $1,865,773 — $10,958,992
Intersegment revenues ................................... 42,087 (42,087) —
Net investment income .................................. 66,338 116 (7,122) 59,332
Otherincome.......................................... 922 32 45,424 46,378
Interest expense ........................................ 3,097 — 36,038 39,135
Depreciation and amortization ............................ 35,768 444 22,465 58,677
Asset impairments and restructuring charges ................. 2,609 — 13,800 16,409
Gain on sale of businesses ............................... — — (18,901) (18,901)
Segmentprofit(loss) .................................... 475,503 75,285 (36,309) 514,479
Segment assets ........................................ 3,080,421 480,968 (12,113) 3,549,276
2002
Health Plan
Services
Government
Contracts
Corporate
And Other(1) Total
Revenues from external sources ........................... $8,581,658 $1,498,689 — $10,080,347
Intersegment revenues ................................... 46,657 — $(46,657) —
Net investment income .................................. 75,976 33 (10,799) 65,210
Otherincome.......................................... 1,814 6 47,381 49,201
Interest expense ........................................ 5,687 5 34,534 40,226
Depreciation and amortization ............................ 48,012 1,299 19,581 68,892
Asset impairments and restructuring charges ................. 27,837 (1,676) 34,176 60,337
Loss on sale of businesses and properties .................... — — 5,000 5,000
Segmentprofit(loss) .................................... 392,790 44,506 (20,064) 417,232
Segment assets ........................................ 3,049,700 396,759 14,292 3,460,751
2001
Health Plan
Services
Government
Contracts
Corporate
And Other(1) Total
Revenues from external sources ........................... $8,575,012 $1,339,066 — $ 9,914,078
Intersegment revenues ................................... 60,950 — $(60,950) —
Net investment income .................................. 90,936 430 (12,581) 78,785
Otherincome.......................................... 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 impairments and restructuring charges ................. 53,115 3,591 22,961 79,667
Loss on sale of businesses and properties .................... — — 72,422 72,422
Segmentprofit(loss) .................................... 287,060 14,839 (21,329) 280,570
Segment assets ........................................ 3,041,426 400,306 125,109 3,566,841
(1) Includes intersegment eliminations and results from our corporate entities and employer services group division.
Beginning January 1, 2002, we implemented several initiatives to reduce our 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 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.
F-38