HEALTH NET INC

CIK:0000916085|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Health plan services premiums	$ 15,553,348	$ 13,361,170	$ 10,377,073
Government contracts	628,451	603,975	572,266
Net investment income	55,494	45,166	69,613
Administrative services fees and other income	6,294	(1,725)	34,791
Total revenues	16,243,587	14,008,586	11,053,743
Expenses
Health plan services (excluding depreciation and amortization)	13,041,036	11,307,751	8,886,547
Government contracts	603,841	536,643	502,918
General and administrative	1,816,166	1,552,364	1,083,694
Selling	270,174	262,338	239,428
Depreciation and amortization	22,533	29,786	38,589
Interest	33,309	31,376	32,614
Asset impairment	1,884	88,536	0
Total expenses	15,788,943	13,808,794	10,783,790
Income from operations before income taxes	454,644	199,792	269,953
Income tax provision	268,967	54,163	99,827
Net income	$ 185,677	$ 145,629	$ 170,126
Net income per share:
Net income per share—basic (usd per share)	$ 2.40	$ 1.83	$ 2.14
Net income per share—diluted:
Net income per share—diluted (usd per share)	$ 2.37	$ 1.80	$ 2.12
Weighted average shares outstanding:
Basic (shares)	77,212	79,602	79,455
Diluted (shares)	78,358	80,777	80,404

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 185,677	$ 145,629	$ 170,126
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation	22,533	29,786	38,589
Asset impairment charges	1,884	88,536	0
Share-based compensation expense	29,451	28,334	29,930
Deferred income taxes	(10,894)	(16,564)	8,645
Excess tax benefit on share-based compensation	(4,855)	(2,230)	(620)
Net realized gain on investments	(191)	(2,710)	(24,061)
Other changes	38,119	29,838	31,539
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Premiums receivable and unearned premiums	46,315	(549,786)	(83,822)
Other current assets, receivables and noncurrent assets	(315,238)	(444,288)	1,425
Amounts receivable/payable under government contracts	(98,039)	39,754	20,896
Reserves for claims and other settlements	(402,643)	911,960	(53,898)
Accounts payable and other liabilities	938,976	517,742	(42,910)
Net cash provided by operating activities	431,095	776,001	95,839
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments	953,092	441,430	696,534
Maturities of investments	104,095	98,901	93,225
Purchases of investments	(1,538,128)	(665,200)	(722,223)
Purchases of property and equipment	(60,949)	(62,010)	(59,525)
Sales (purchases) of restricted investments and other	(4,759)	2,027	(7,432)
Net cash (used in) provided by investing activities	(546,649)	(184,852)	579
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases	18,972	27,727	10,762
Excess tax benefit on share-based compensation	4,855	2,230	620
Repurchases of common stock	(112,977)	(152,549)	(77,810)
Borrowings under financing arrangements	360,000	0	345,000
Repayment of borrowings under financing arrangements	(175,000)	0	(345,000)
Net decrease in checks outstanding, net of deposits	0	0	(23,842)
Customer funds administered	147,425	(32,579)	86,897
Net cash provided by (used in) financing activities	243,275	(155,171)	(3,373)
Net increase in cash and cash equivalents	127,721	435,978	93,045
Cash and cash equivalents, beginning of year	869,133	433,155	340,110
Cash and cash equivalents, end of year	996,854	869,133	433,155
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid	31,622	29,670	30,789
Income taxes paid	$ 276,468	$ 83,499	$ 80,119

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 996,854	$ 869,133
Investments-available-for-sale (amortized cost: 2015-$2,209,670, 2014-$1,777,404)	2,218,367	1,791,060
Premiums receivable, net of allowance for doubtful accounts (2015-$3,732, 2014-$1,671)	943,746	951,935
Amounts receivable under government contracts	267,655	150,546
Other receivables	467,526	424,910
Deferred taxes	91,005	57,911
Assets held for sale	0	50,000
Other assets	338,890	220,122
Total current assets	5,324,043	4,515,617
Property and equipment, net	146,053	84,328
Goodwill	558,886	558,886
Other intangible assets, net	9,060	11,822
Deferred taxes	12,230	33,081
Investments-available-for-sale-noncurrent (amortized cost: 2015-$34,197, 2014-$5,474)	27,580	4,570
Other noncurrent assets	319,794	187,630
Total Assets	6,397,646	5,395,934
Current Liabilities:
Reserves for claims and other settlements	1,493,392	1,896,035
Health care and other costs payable under government contracts	85,132	71,988
Unearned premiums	134,232	96,106
Line of Credit, Current	285,000	0
Accounts payable and other liabilities	1,874,154	880,374
Total current liabilities	3,871,910	2,944,503
Senior notes payable	399,709	399,504
Borrowings under revolving credit facility	0	100,000
Other noncurrent liabilities	292,947	242,705
Total Liabilities	$ 4,564,566	$ 3,686,712
Commitments and contingencies
Stockholders’ Equity:
Preferred stock ($0.001 par value, 10,000 shares authorized, none issued and outstanding)	$ 0	$ 0
Common stock ($0.001 par value, 350,000 shares authorized; issued 2015-153,776 shares; 2014-152,451 shares)	154	153
Additional paid-in capital	1,497,562	1,444,705
Treasury common stock, at cost (2015-76,458 shares of common stock; 2014-74,378 shares of common stock)	(2,454,939)	(2,341,652)
Retained earnings	2,794,954	2,609,277
Accumulated other comprehensive income	(4,651)	(3,261)
Total Stockholders’ Equity	1,833,080	1,709,222
Total Liabilities and Stockholders’ Equity	$ 6,397,646	$ 5,395,934