Health Net 2003 Annual Report Download - page 93

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The following table shows our investments’ gross unrealized losses and fair value for individual securities that have
been in a continuous loss position through December 31, 2003 (amounts in millions).
Less than 12 months 12 months or more Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Mortgage-backed ................................ $254.85 $4.17 $3.45 $0.02 $258.30 $4.19
U.S.governmentandagency ....................... 116.07 1.29 — — 116.07 1.29
Obligation of state and Other political subdivisions ..... 5.37 0.02 — — 5.37 0.02
Corporate debt .................................. 34.13 0.92 — — 34.13 0.92
$410.42 $6.40 $3.45 $0.02 $413.87 $6.42
The following table shows the number of our individual securities that have been in a continuous loss position at
December 31, 2003.
Less than
12 months
12 months
or more Total
Mortgage-backed ......................................... 66 1 67
U.S.governmentandagency ................................ 23 — 23
Obligation of state and .....................................
other political subdivisions ................................. 3 — 3
Corporate debt ........................................... 10 — 10
102 1 103
As of December 31, 2003, we had 103 out of a total of 326 available-for-sale investment securities in an unrealized
loss position with an aggregate unrealized loss of $6.42 million, which has been included in other comprehensive income.
These available-for-sale investment securities had an aggregate fair value of $413.87 million out of a total of fair value of
$1,082.79 million as of December 31, 2003. The entire $6.42 million in unrealized loss is attributed to investment
securities which have been in an unrealized loss position for 12 months or less. Of the $413.87 million of the available-
for-sale investment securities in an unrealized loss position, $374.37 million are composed of mortgage-backed and U.S.
government and agency bonds, and $5.37 million are composed of obligations of state and other political subdivisions.
The unrealized loss position for these securities is the result of interest rate volatility. Another $34.13 million are invested
in corporate debt securities with ratings of “A” or better, with most of the securities rated at “AAA” or “AA” signifying
that the probability of default is extremely low. The companies in which we invest in are all highly rated companies with
no current indication of being downgraded or defaulting on the interest payments.
Note 5—Property and Equipment
Property and equipment comprised the following as of December 31:
2003 2002
(Amounts in thousands)
Land ................................................................. $ 12,176 $ 13,182
Internal use software and leasehold improvements under development ............. 3,548 9,875
Buildingsandimprovements .............................................. 89,249 87,275
Furniture,equipmentandsoftware ......................................... 494,658 478,406
599,631 588,738
Less accumulated depreciation ............................................ 408,731 389,520
$190,900 $199,218
Note 6—Financing Arrangements
Senior Notes Payable
Our Senior notes payable balance was $399.0 million and $398.8 million as of December 31, 2003 and 2002,
respectively.
F-20