Health Net 2015 Annual Report Download - page 210

HEALTH NET, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
F-49
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A
one-percentage-point change in assumed health care cost trend rates would have the following effects for the year
ended December 31, 2015:
1-Percentage
Point
Increase
1-Percentage
Point
Decrease
(Dollars in millions)
Effect on total of service and interest cost ................................................... $ 0.2 $ (0.2)
Effect on postretirement benefit obligation.................................................. $ 3.4 $ (2.8)
Contributions
We expect to contribute $3.1 million to our pension plan and $0.9 million to our postretirement health and life
plans throughout 2016. The entire amount expected to be contributed, in the form of cash, to the defined benefit pension
and postretirement health and life plans during 2016 is expected to be paid out as benefits during the same year.
Estimated Future Benefit Payments
We estimate that benefit payments related to our pension and postretirement health and life plans over the next
ten years will be as follows:
Pension
Benefits Other Benefits
(Dollars in millions)
2016.................................................................. $ 3.1 $ 0.9
2017.................................................................. 3.0 1.0
2018.................................................................. 3.0 1.0
2019.................................................................. 2.9 1.0
2020.................................................................. 2.9 1.0
Years 2021—2025............................................ 17.8 6.6
Note 11—Income Taxes
Significant components of the provision for income taxes from continuing operations are as follows for the
years ended December 31:
2015 2014 2013
(Dollars in millions)
Current tax expense:
Federal............................................................................................. $ 257.9 $ 87.7 $ 79.0
State................................................................................................. 21.9 (15.0) 12.5
Total current tax expense.......................................................................... 279.8 72.7 91.5
Deferred tax expense (benefit):
Federal............................................................................................. (32.1) 2.4 15.0
State................................................................................................. 21.2 (19.0)(6.4)
Total deferred tax expense (benefit).......................................................... (10.9)(16.6) 8.6
Interest expense, gross of related tax effects............................................. 0.1 (1.9)(0.3)
Total income tax provision........................................................................ $ 269.0 $ 54.2 $ 99.8