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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.