Health Net 2009 Annual Report Download - page 120

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table shows the number of our individual securities-noncurrent that have been in a continuous
loss position at December 31, 2009:
Less than
12 Months
12 Months
or More Total
Asset-backed securities ................................................ 1 6 7
U.S. government and agencies .......................................... — — —
Obligation of states and other political subdivisions ......................... — — —
Corporate debt securities ............................................... — — —
Other securities ...................................................... — — —
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The following table shows our investments’ fair values and gross unrealized losses for individual securities
that have been in a continuous loss position through December 31, 2008:
Less than 12 Months 12 Months or More Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(Dollars in millions)
Asset-backed securities ..................... $ 91.4 $(10.7) $ 40.7 $ (6.5) $132.1 $(17.2)
Obligation of states and other political
subdivisions ............................ 141.4 (4.9) 52.3 (4.9) 193.7 (9.8)
Corporate debt securities .................... 111.0 (4.7) 16.0 (1.1) 127.0 (5.8)
Other securities ........................... 0.4 — — — 0.4 —
$344.2 $(20.3) $109.0 $(12.5) $453.2 $(32.8)
The above referenced investments are interest-yielding debt securities of varying maturities. The unrealized
loss position for these securities is due to market volatility. Generally, in a rising interest rate environment, the
estimated fair value of fixed income securities would be expected to decrease; conversely, in a decreasing
interest rate environment, the estimated fair value of fixed income securities would be expected to increase.
However, these securities may be negatively impacted by illiquidity in the market.
The investments listed above are investment grade securities with an average rating of “AA+” and “Aa1” as
rated by S&P and/or Moody’s, respectively. At this time, there is no indication of default on interest and/or principal
payments. We have the ability and current intent to hold to recovery all securities with an unrealized loss position.
Note 5—Property and Equipment
Property and equipment are comprised of the following as of December 31:
2009 2008
(Dollars in millions)
Land ............................................................ $ 1.7 $ 1.7
Leasehold improvements under development ............................ 0.3 4.6
Buildings and improvements ......................................... 40.3 49.4
Furniture, equipment and software ..................................... 243.9 304.1
286.2 359.8
Less accumulated depreciation ........................................ (154.7) (157.4)
Property and equipment, net .......................................... $131.5 $ 202.4
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