Health Net 2006 Annual Report Download - page 154

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SUPPLEMENTAL SCHEDULE I
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(PARENT COMPANY ONLY)
HEALTH NET, INC.
NOTE TO CONDENSED FINANCIAL STATEMENTS
Note 1—Basis of Presentation
Health Net, Inc.’s (HNT) investment in subsidiaries is stated at cost plus equity in undistributed earnings
(losses) of subsidiaries. HNT’s share of net income (loss) of its unconsolidated subsidiaries is included in
consolidated income using the equity method. This condensed financial information of registrant (parent
company only) should be read in conjunction with the consolidated financial statements of Health Net, Inc. and
subsidiaries.
F-60