Health Net 2005 Annual Report Download - page 138

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the Company’s government contracts total incurred claims and administrative
and other costs for the years ended December 31:
Government Contracts
2005 2004 2003
(Dollars in millions)
Costs incurred related to legacy TRICARE contracts ........... $ (16.7) $1,033.7 $1,504.1
Costs incurred related to our TRICARE contract for the North
Region ............................................. 1,869.9 589.2 —
Administrative and other costs ............................ 358.1 304.7 285.4
Government contracts costs .............................. $2,211.3 $1,927.6 $1,789.5
The Company’s administrative and other costs represented 16% of total government contracts costs for the
years ended December 31, 2005, 2004 and 2003.
Note 17—Quarterly Information (Unaudited)
The following interim financial information presents the 2005 and 2004 results of operations on a quarterly
basis:
2005
March 31 June 30 September 30 December 31
(Dollars in millions, except per share data)
Total revenues ....................................... $2,911.7 $3,019.9 $3,058.8 $2,950.2
Income from operations before income taxes ............... 32.3 88.1 129.8 126.0
Net income ......................................... 21.3 53.6 78.2 76.7
Basic earnings per share ............................... $ 0.19 $ 0.48 $ 0.69 $ 0.67
Diluted earnings per share (1) .......................... $ 0.19 $ 0.47 $ 0.67 $ 0.65
(1) The sum of the quarterly earnings per share may not equal the year-to-date earnings per share due to
rounding.
2004
March 31 June 30 September 30 December 31
(Dollars in millions, except per share data)
Total revenues ....................................... $2,924.8 $2,918.8 $2,935.2 $2,867.6
Income (loss) from operations before income taxes .......... 24.5 67.6 118.2 (143.0)
Net income (loss) .................................... 15.0 41.4 71.9 (85.6)
Basic earnings per share (1) ............................ $ 0.13 $ 0.37 $ 0.64 $ (0.77)
Diluted earnings per share (1) .......................... $ 0.13 $ 0.36 $ 0.64 $ (0.77)
(1) The sum of the quarterly earnings per share may not equal the year-to-date earnings per share due to
rounding.
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