Health Net 2004 Annual Report Download - page 131

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
2002
A reconciliation of the total reportable segments’ measures of profit to the Company’s consolidated income from continuing
operations before income taxes and cumulative effect of a change in accounting principle for the years ended December 31, 2004,
2003 and 2002 is as follows (amounts in thousands):
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 corporate entities
include our facilities, warehouse, reinsurance and surgery center subsidiaries. Provider settlements and related legal costs recorded in
the fourth quarter of 2004 are excluded from our Health Plan Services reportable segment profit. Severance, asset impairments,
restructuring costs 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 not managed within either of our reportable segments.
F-45
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
Other income
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
Segment profit (loss)
392,790
44,506 (20,064)
417,232
Segment assets
3,049,700
396,759
14,292
3,460,751
(1) Includes intersegment eliminations and results from our corporate entities and employer services group division.
2004
2003
2002
Total reportable segment profit
$260,967
$550,788
$437,296
Provider settlements and related legal costs recorded in the fourth quarter of 2004
(168,831)
—
Income (loss) from corporate and other entities
7,003
(36,309)
(20,064)
Severance, asset impairments and restructuring costs
(32,893)
(16,409)
(60,337)
Net gain (loss) on sale of businesses and properties and assets held for sale
1,170
18,901
(5,000)
Income from continuing operations before income taxes and cumulative effect of a change
in accounting principle as reported
$67,416
$516,971
$351,895