Health Net 2015 Annual Report Download - page 84

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Corporate/Other
The following table summarizes the Corporate/Other segment for the years ended December 31, 2015, 2014 and
2013:
Year Ended December 31,
2015 2014 2013
(Dollars in thousands)
Costs included in health plan services costs ................................ $ 1,230 $ — $ —
Costs included in government contract costs............................... 828 $ 2,201 $ 5,138
Costs included in G&A................................................................ 113,676 94,494 6,877
Costs included in depreciation and amortization......................... 550 82 —
Asset impairment ......................................................................... 1,884 88,536 —
Loss from operations before income taxes .................................. (118,168)(185,313)(12,015)
Income tax benefit........................................................................ (45,363)(143,433)(4,694)
Net loss......................................................................................... $(72,805) $ (41,880) $ (7,321)
Our Corporate/Other segment is not a business operating segment. It is added to our reportable segments to
reconcile to our consolidated results. The Corporate/Other segment includes costs that are excluded from the calculation
of segment pretax income because they are not managed within the reportable segments.
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
Our Corporate/Other segment for the year ended December 31, 2015 primarily includes expenses related to the
Cognizant Transaction, and also includes costs related to our pending Merger with Centene. See Note 3 to our
consolidated financial statements and "—Overview—Cognizant Transaction" for additional information regarding the
Cognizant Transaction, and "—Overview—Centene Transaction" for more information regarding our pending Merger
with Centene.
Our operating results in our Corporate/Other segment for the year ended December 31, 2014 were impacted by an
$88.5 million pretax asset impairment primarily related to our assets held for sale in connection with the Cognizant
Transaction. Our operating results in our Corporate/Other segment for the year ended December 31, 2014 were also
impacted by a loss on the stock of one of our subsidiaries that created a tax benefit of $73.7 million, net of adjustments
to our reserve for uncertain tax benefits. See Note 11 to our consolidated financial statements for additional information
regarding this tax benefit.
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Our operating results in our Corporate/Other segment for the year ended December 31, 2014 were impacted by an
$88.5 million pretax asset impairment primarily related to our assets held for sale in connection with the Cognizant
Transaction. In addition, our operating results in our Corporate/Other segment for the year ended December 31, 2014
were impacted by $74.8 million in pretax expenses related to the Cognizant Transaction. Our operating results in our
Corporate/Other segment for the year ended December 31, 2014 were also impacted by a loss on the stock of one of our
subsidiaries that created a tax benefit of $73.7 million, net of adjustments to our reserve for uncertain tax benefits. The
operating results in our Corporate/Other segment for the year ended December 31, 2013 were impacted by $12.0
million in pretax costs, primarily severance expenses related to our continuing efforts to address scale issues.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity
Our primary sources of cash include receipts of premiums, services revenue, and investment and other income, as
well as proceeds from the sale or maturity of our investment securities and borrowings. We believe that expected cash
flow from operating activities, existing cash reserves and other working capital and lines of credit are adequate to allow
us to fund existing obligations, introduce new products and services, enter into new lines of business and continue to
operate and develop health care-related businesses as we may determine to be appropriate at least for the next 12
months. We regularly evaluate cash requirements for, among other things, current operations and commitments, for