Health Net 2003 Annual Report Download - page 77

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HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Year Ended December 31,
2003 2002 2001
Revenues
Health plan services premiums ........................................... $ 9,093,219 $ 8,581,658 $ 8,575,012
Government contracts .................................................. 1,865,773 1,498,689 1,339,066
Net investment income .................................................. 59,332 65,210 78,785
Other income ......................................................... 46,378 49,201 70,282
Total revenues .................................................... 11,064,702 10,194,758 10,063,145
Expenses
Health plan services .................................................... 7,516,838 7,161,520 7,243,645
Government contracts .................................................. 1,789,523 1,452,968 1,324,648
General and administrative ............................................... 912,531 856,169 874,504
Selling ............................................................... 233,519 197,751 186,143
Depreciation .......................................................... 55,903 61,832 61,073
Amortization .......................................................... 2,774 7,060 37,622
Interest .............................................................. 39,135 40,226 54,940
Asset impairments and restructuring charges ................................. 16,409 60,337 79,667
Net (gain) loss on sales of businesses and properties and assets held for sale ........ (18,901) 5,000 72,422
Total expenses .................................................... 10,547,731 9,842,863 9,934,664
Income from continuing operations before income taxes and cumulative effect of a change
in accounting principle .................................................... 516,971 351,895 128,481
Income tax provision ....................................................... 193,891 117,374 47,539
Income from continuing operations before cumulative effect of a change in accounting
principle ............................................................... 323,080 234,521 80,942
Discontinued operations:
Loss on settlement from disposition, net of tax ................................... (89,050) — —
Income before cumulative effect of a change in accounting principle ................. 234,030 234,521 80,942
Cumulative effect of a change in accounting principle, net of tax ..................... — (8,941) —
Net income ............................................................... $ 234,030 $ 225,580 $ 80,942
Basic earnings (loss) per share:
Income from continuing operations ............................................ $ 2.79 $ 1.89 $ 0.66
Loss on settlement from disposition of discontinued operations, net of tax ............. (0.77) — —
Cumulative effect of a change in accounting principle ............................. — (0.07) —
Net ..................................................................... $ 2.02 $ 1.82 $ 0.66
Diluted earnings (loss) per share:
Income from continuing operations ............................................ $ 2.73 $ 1.86 $ 0.65
Loss on settlement from disposition of discontinued operations, net of tax ............. (0.75) — —
Cumulative effect of a change in accounting principle ............................. — (0.07) —
Net ..................................................................... $ 1.98 $ 1.79 $ 0.65
Weighted average shares outstanding:
Basic ................................................................ 115,999 124,221 123,192
Diluted .............................................................. 118,278 126,004 125,186
See accompanying notes to consolidated financial statements.
F-4