Health Net 2014 Annual Report Download - page 138

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HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-28
revenues and expenses related to the run-out, were reported as part of divested operations and services revenue and
expenses.
As of December 31, 2012, we had substantially completed the administration and run-out of our divested
businesses.
Note 4—Investments
Investments classified as available-for-sale, which consist primarily of debt securities, are stated at fair value.
Unrealized gains and losses are excluded from earnings and reported as other comprehensive income, net of income tax
effects. The cost of investments sold is determined in accordance with the specific identification method, and realized
gains and losses are included in net investment income. We periodically assess our available-for-sale investments for
other-than-temporary impairment. Any such other-than-temporary impairment loss is recognized as a realized loss,
which is recorded through earnings, if related to credit losses.
During the years ended December 31, 2014 and 2013, we recognized no losses from other-than-temporary
impairments of our cash equivalents and available-for-sale investments.
We classified $4.6 million and $59.8 million as investments available-for-sale-noncurrent as of December 31,
2014 and 2013, respectively, because we did not intend to sell and we believed it may take longer than a year for such
impaired securities to recover. This classification does not affect the marketability or the valuation of the investments,
which are reflected at their market value as of December 31, 2014 and 2013.
As of December 31, 2014 and 2013, the amortized cost, gross unrealized holding gains and losses, and fair value
of our current investments available-for-sale and our investments available-for-sale-noncurrent, after giving effect to
other-than-temporary impairments were as follows:
2014
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses Carrying
Value
(Dollars in millions)
Current:
Asset-backed securities ................................................. $ 437.2 $ 2.6 $ (1.9) $ 437.9
U.S. government and agencies ...................................... 36.5 — — 36.5
Obligations of states and other political subdivisions... 716.7 17.2 (1.7) 732.2
Corporate debt securities............................................... 587.0 2.7 (5.3) 584.4
$ 1,777.4 $ 22.5 $ (8.9) $ 1,791.0
Noncurrent:
Asset-backed securities ................................................. $ 0.8 $ — $ (0.2) $ 0.6
Corporate debt securities............................................... 4.7 — (0.7) 4.0
$ 5.5 $ — $ (0.9) $ 4.6