EX-12.1 10 a2085312zex-12_1.htm EXHIBIT 12.1: COMPUTATION OF EARNINGS
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Exhibit 12.1


Health Net, Inc.
Calculation of Ratio of Earnings to Fixed Charges—Consolidated Basis
(amount in thousands, except ratios)

 
   Six Months Ended June 30,
   Year Ended December 31,
  
 
   2002
   2001
   2001
   2000
   1999
   1998
   1997
  

Income from continuing operations
 
$
187,078
 
$
44,780
 
$
137,350
 
$
262,747
 
$
244,008
 
$
(254,154
)
$
(89,248
)

Interest expense
 
 
20,527
 
 
30,846
 
 
54,940
 
 
87,930
 
 
83,808
 
 
92,159
 
 
63,555
 

Amortization of debt expense
 
 
1,366
 
 
2,023
 
 
3,280
 
 
3,395
 
 
3,170
 
 
1,100
 
 
—
 

Interest portion of rental expense (a)
 
 
4,168
 
 
3,831
 
 
8,403
 
 
7,470
 
 
7,350
 
 
7,545
 
 
7,305
 
   
 
 
 
 
 
 
 

Earnings
 
$
213,139
 
$
81,480
 
$
203,973
 
$
361,542
 
$
338,336
 
$
(153,350
)
$
(18,388
)

Fixed Charges
(Total of interest expense, amort. and interest portion of rental expense)
 
$
26,061
 
$
36,700
 
$
66,623
 
$
98,795
 
$
94,328
 
$
100,804
 
$
70,860
 

Ratio of earnings to fixed charges
 
 
8.2
×
 
2.2
×
 
3.1
×
 
3.7
×
 
3.6
×
 
 
(b)
 
 
(b)
(a)
Interest portion of rental expense is estimated to be 15%.

(b)
No ratio is shown for 1998 and 1997 because earnings were insufficient to cover fixed charges by $153.4 million and $18.4 million, respectively.


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