Health Net 2013 Annual Report Download - page 130

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-26
As of December 31, 2013, the contractual maturities of our current investments available-for-sale and our
investments available-for-sale-noncurrent were as follows:
Amortized
Cost Estimated Fair Value
Current: (Dollars in millions)
Due in one year or less................................................................................................ $ 47.8 $ 48.0
Due after one year through five years......................................................................... 312.2 314.7
Due after five years through ten years ........................................................................ 432.7 424.7
Due after ten years ...................................................................................................... 415.1 390.2
Asset-backed securities............................................................................................... 394.7 389.4
Total current investments available-for-sale............................................................... $ 1,602.5 $ 1,567.0
Amortized
Cost Estimated Fair Value
Noncurrent: (Dollars in millions)
Due after one year through five years......................................................................... 1.0 0.8
Due after five years through ten years ........................................................................ 7.9 7.0
Due after ten years ...................................................................................................... 57.7 50.9
Asset-backed securities............................................................................................... 1.3 1.1
Total noncurrent investments available-for-sale......................................................... $ 67.9 $ 59.8
Proceeds from sales of investments available-for-sale during 2013 were $696.5 million. Gross realized gains and
losses during 2013 totaled $26.4 million and $2.4 million, respectively. Proceeds from sales of investments available-
for-sale during 2012 were $1,350.0 million. Gross realized gains and losses during 2012 totaled $37.2 million and $0.5
million, respectively.
The following tables show our investments’ fair values and gross unrealized losses for individual securities that
have been in a continuous loss position through December 31, 2013 and December 31, 2012. These investments are
interest-yielding debt securities of varying maturities. We have determined that the unrealized loss position for these
securities is primarily 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. These securities may also be negatively
impacted by illiquidity in the market.
The following table shows our current investments' fair values and gross unrealized losses for individual
securities in a continuous loss position as of December 31, 2013:
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 ................ $ 225.3 $ (7.9) $ 22.5 $ (0.8) $ 247.8 $ (8.7)
U.S. government and agencies..... 4.0 — — — 4.0 —
Obligations of states and other
political subdivisions.................... 453.5 (23.5) 79.7 (6.8) 533.2 (30.3)
Corporate debt securities.............. 242.8 (9.0) 6.7 (0.4) 249.5 (9.4)
$ 925.6 $ (40.4) $ 108.9 $ (8.0) $ 1,034.5 $ (48.4)