Health Net 2014 Annual Report Download - page 72
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70
sale in connection with the Cognizant Transaction. See Note 3 to our consolidated financial statements and "Item 1.
Business—Additional Information Concerning Our Business—Cognizant Transaction" for additional information
regarding assets held for sale and 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. The Cognizant Transaction is subject to certain risks and uncertainties, including with respect to
the receipt of required regulatory approvals, which are discussed in further detail in "Item 1A. Risk Factors."
2014 Financial Performance Summary
Health Net’s financial performance in 2014 is summarized as follows:
• In the year ended December 31, 2014, we reported net income of $145.6 million or $1.80 per diluted share
as compared to net income of $170.1 million or $2.12 per share, for the same period in 2013.
• Western Region Operations enrollment was approximately 3.2 million as of December 31, 2014, an
increase of 29.1 percent compared with enrollment at December 31, 2013.
• Total revenues for the year ended December 31, 2014 increased by approximately 26.7 percent to $14.0
billion from the same period in 2013.
• Western Region Operations segment pretax income increased to $315.6 million in 2014 compared to $207.5
million in 2013.
• Government Contracts segment pretax income decreased to $69.5 million in 2014 compared to $74.5
million in 2013.
• Net cash provided by operating activities totaled $776.0 million for the year ended December 31, 2014
compared to $95.8 million for the same period in 2013.
• Our operating results for the year ended December 31, 2014 were impacted by:
Fees imposed under the ACA, including $141.4 million for the health insurer fee and $97.6 million
in other ACA fees. See Note 2 to our consolidated financial statements under the heading
"Accounting for Certain Provisions of the ACA" for additional information.
An $88.5 million pretax asset impairment primarily related to our assets held for sale in connection
with the Cognizant Transaction and $96.8 million of pretax expenses primarily related to the
Cognizant Transaction. See Note 3 to our consolidated financial statements under the heading
“Assets Held for Sale” for additional information regarding the Cognizant Transaction.
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.