Exhibit 12.1
Health Net, Inc.
Calculation of Ratio of Earnings to Fixed Charges As Amended—Consolidated Basis
(amount in thousands, except ratios)
| Year Ended December 31, | ||||||||||||||||||||
| 2002 (d) | 2001 (d) | 2000 | 1999 | 1998 | ||||||||||||||||
Income (loss) from continuing operations before income taxes and cumulative effect of a change in accounting principle | $ | 351,895 | $ | 128,481 | $ | 262,747 | $ | 244,008 | $ | (254,154 | ) | |||||||||
Interest expense | 40,226 | 54,940 | 87,930 | 83,808 | 92,159 | |||||||||||||||
Amortization of debt expense | 2,738 | 3,280 | 3,395 | 3,170 | 1,100 | |||||||||||||||
Interest portion of rental expense(a) | 8,354 | (b) | 8,535 | (b) | 7,470 | 7,350 | 7,545 | |||||||||||||
Earnings (losses) | $ | 403,213 | $ | 195,236 | $ | 361,542 | $ | 338,336 | $ | (153,350 | ) | |||||||||
Fixed Charges | $ | 51,318 | $ | 66,755 | $ | 98,795 | $ | 94,328 | $ | 100,804 | ||||||||||
(Total of interest expense, amort. and interest portion of rental expense) | ||||||||||||||||||||
Ratio of earnings to fixed charges | 7.9 | x | 2.9 | x | 3.7 | x | 3.6 | x | (c | ) | ||||||||||
| (a) | Interest portion of rental expense is estimated to be 15%. |
| (b) | Includes 15% interest on additional rent expense of $0.9 million and $3.0 million recorded as part of our restatements for the years ended December 31, 2002 and 2001, respectively. |
| (c) | No ratio is shown for 1998 because earnings were insufficient to cover fixed charges by $153.4 million. |
| (d) | The Company restated its financial statements as of and for the years ended December 31, 2002 and 2001 as disclosed in Note 2 to the consolidated financial statements. |
