8-K

0001193125-15-040432.txt : 20150210 0001193125-15-040432.hdr.sgml : 20150210 20150210083537 ACCESSION NUMBER: 0001193125-15-040432 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150210 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150210 DATE AS OF CHANGE: 20150210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HEALTH NET INC CENTRAL INDEX KEY: 0000916085 STANDARD INDUSTRIAL CLASSIFICATION: HOSPITAL & MEDICAL SERVICE PLANS [6324] IRS NUMBER: 954288333 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12718 FILM NUMBER: 15590532 BUSINESS ADDRESS: STREET 1: 21650 OXNARD ST CITY: WOODLAND HILLS STATE: CA ZIP: 91367 BUSINESS PHONE: 8186766000 MAIL ADDRESS: STREET 1: 225 N MAIN ST CITY: PUEBLO STATE: CO ZIP: 81003 FORMER COMPANY: FORMER CONFORMED NAME: FOUNDATION HEALTH SYSTEMS INC DATE OF NAME CHANGE: 19970513 FORMER COMPANY: FORMER CONFORMED NAME: HEALTH SYSTEMS INTERNATIONAL INC DATE OF NAME CHANGE: 19940207 FORMER COMPANY: FORMER CONFORMED NAME: HN MANAGEMENT HOLDINGS INC/DE/ DATE OF NAME CHANGE: 19931213 8-K 1 d867210d8k.htm 8-K 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

February 10, 2015

Health Net, Inc.

(Exact Name of Registrant as Specified in Charter)


Delaware	1-12718	95-4288333
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

21650 Oxnard Street, Woodland Hills, California		91367
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (818) 676-6000

Not Applicable

Former Name or Former Address, if Changed Since Last Report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02

Results of Operations and Financial Condition.

On February 10, 2015, Health Net, Inc. (“we”, “us” or “our”) issued a press release announcing our financial results for the quarter and year ended December 31, 2014. The press release contains the non-GAAP financial measure “adjusted days claims payable (DCP).” Adjusted DCP for the fourth quarter of 2014 was 70.1 days, adjusted DCP for the third quarter of 2014 was 65.3 days, and adjusted DCP for the fourth quarter of 2013 was 57.9 days. In addition, adjusted DCP for full year 2014 was 77.2 days and adjusted DCP for full year 2013 was 58.7 days. Adjusted DCP excludes claims reserve and health plan costs related to our capitation, provider and other claims settlements and Medicare Advantage-Prescription Drug payables and costs. The most directly comparable GAAP financial measure to this non-GAAP financial measure is fourth quarter of 2014 DCP of 57.4 days, third quarter of 2014 DCP of 51.4 days, fourth quarter of 2013 DCP of 40.6 days, full year 2014 DCP of 61.2 days and full year 2013 DCP of 40.4 days.

Management believes that adjusted DCP provides useful information to investors because the adjusted DCP calculation excludes from both claims reserve and health plan costs amounts related to health care costs for which no or minimal reserves are maintained. Therefore, management believes that adjusted DCP may present a more accurate reflection of DCP than does GAAP DCP, which includes such amounts. This non-GAAP financial information should be considered in addition to, not as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure is included in the attached press release. As used herein, “GAAP” refers to accounting principles generally accepted in the United States.

The press release is attached hereto as Exhibit 99.1 and hereby incorporated in this Item 2.02 by reference. The information in this Item 2.02 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing by Health Net, Inc. under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits



99.1		Press Release dated February 10, 2015

Exhibit Index


Exhibit No.		Document Description

99.1		Press Release dated February 10, 2015

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Health Net, Inc.

February 10, 2015	By:	/s/ James E. Woys
	Name:	James E. Woys
	Title:	Executive Vice President, Chief Financial and Operating Officer and Interim Treasurer

EX-99.1 2 d867210dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Investor Contact:

David Olson

The Abernathy MacGregor Group

(818) 917-1469

dwo@abmac.com

Media Contact:

Brad Kieffer

(818) 676-6833

brad.kieffer@healthnet.com

HEALTH NET REPORTS FOURTH QUARTER 2014 GAAP NET INCOME

OF $4.9 MILLION, OR $0.06 PER DILUTED SHARE

WESTERN REGION OPERATIONS AND GOVERNMENT CONTRACTS SEGMENTS PRODUCE

COMBINED NET INCOME OF $0.60 PER DILUTED SHARE IN FOURTH QUARTER 2014

COMPANY UPDATES 2015 GAAP GUIDANCE

LOS ANGELES, February 10, 2015 – Health Net, Inc. (NYSE: HNT) today announced 2014 fourth quarter GAAP net income of $4.9 million, or $0.06 per diluted share, compared with GAAP net income of $19.8 million, or $0.25 per diluted share, for the fourth quarter of 2013.

For the full year 2014, the company reported GAAP net income of $145.6 million, or $1.80 per diluted share, compared with $170.1 million, or $2.12 per diluted share, for the full year 2013.

In the fourth quarter of 2014, the company incurred $72.1 million of pretax expenses primarily related to its master services agreement with a wholly owned subsidiary of Cognizant Technology Solutions Corporation (Cognizant).

The company’s Western Region Operations (Western Region) and Government Contracts segments produced combined net income of $47.4 million, or $0.60 per diluted share, in the fourth quarter of 2014 compared with $19.1 million, or $0.24 per diluted share, in the fourth quarter of 2013.

The company’s Western Region and Government Contracts segments produced combined net income of $187.5 million, or $2.32 per diluted share, for the full year 2014, compared with $177.4 million, or $2.21 per diluted share, for the full year 2013.

Highlights from the fourth quarter of 2014 include:

Health Net’s total revenues climbed 37.0 percent and health plan services premiums revenues rose 40.1 percent in the fourth quarter of 2014 compared with the fourth quarter of 2013. These revenue increases were driven by ongoing Medicaid and commercial enrollment gains;

Medicaid enrollment increased by approximately 559,000 members, or 50.0 percent, as of December 31, 2014 compared with December 31, 2013. This increase was primarily the result of new enrollment in Arizona and California as a result of the expansion of Medicaid eligibility under the Affordable Care Act (ACA);

Individual health plan enrollment increased by approximately 217,000 members, or 188.7 percent, as of December 31, 2014 compared with December 31, 2013. The year-over-year growth was driven by the enrollment of new individual members through the ACA exchanges in Arizona and California; and

The company’s Western Region commercial Medical Care Ratio (MCR) improved 280 basis points in the fourth quarter of 2014 compared with the fourth quarter of 2013.

“We are pleased that 2014’s strong momentum continued in the fourth quarter of 2014. This profitable revenue growth in 2014, we believe, sets the stage for further gains in 2015,” said Jay Gellert, Health Net’s chief executive officer.

“We look forward to 2015 and the expected implementation of our agreement with Cognizant following receipt of required regulatory approval. We believe this agreement will position Health Net for expanded product development and service capabilities that will support and provide scale for incremental growth in the years ahead,” Gellert explained.

CONSOLIDATED RESULTS

Health Net’s total revenues increased 37.0 percent in the fourth quarter of 2014 to $3.8 billion from $2.7 billion in the fourth quarter of 2013.

Health plan services premium revenues of $3.6 billion in the fourth quarter of 2014 increased by 40.1 percent compared with $2.6 billion in the fourth quarter of 2013.

Health plan services expenses increased by 36.3 percent in the fourth quarter of 2014 to $3.0 billion compared with $2.2 billion in the fourth quarter of 2013.

WESTERN REGION OPERATIONS SEGMENT

Health Plan Membership

Total enrollment in the Western Region at December 31, 2014 was approximately 3.2 million members, an increase of 29.1 percent from enrollment at December 31, 2013.

Total enrollment in the company’s California health plans increased 26.0 percent to approximately 2.7 million members at December 31, 2014 compared with enrollment at December 31, 2013.

Western Region commercial enrollment at December 31, 2014 was approximately 1.2 million members, a 9.9 percent increase compared with enrollment at December 31, 2013.

“Our fourth quarter 2014 Medicaid and commercial enrollment was lower than expected. This is because California has been aggressive in redetermining enrollee eligibility for both Medicaid and the commercial exchanges,” explained Gellert. “As a result of this effort, member attrition was higher than expected.”

Membership in tailored network products represented 49.8 percent of the company’s Western Region commercial membership at December 31, 2014 compared with 37.5 percent at December 31, 2013.

“We believe these efficient commercial networks played an important role in our exchange enrollment growth in 2014. We expect they will support our future growth as we believe customers on public and private exchanges will continue to seek affordable networks that provide both quality and access,” said James Woys, Health Net’s chief financial and operating officer and interim treasurer.

“Given these dynamics, we expect the percentage of our commercial enrollment in such tailored network products to rise again in 2015,” Woys noted.

Enrollment in the company’s Medicare Advantage (MA) plans in the Western Region at December 31, 2014 was approximately 275,000 members, an increase of 12.7 percent compared with December 31, 2013.

Medicaid enrollment at December 31, 2014 was approximately 1.7 million members, an increase of 50.0 percent, from December 31, 2013.

“We are seeing growth from both Medicaid expansion and from those eligible for traditional Medicaid,” Woys added.

Dual eligibles enrollment at December 31, 2014 was approximately 16,000 members, an increase of 77.8 percent compared with enrollment of approximately 9,000 at September 30, 2014.

Revenues

Total revenues for the Western Region in the fourth quarter of 2014 were $3.6 billion compared with $2.6 billion in the fourth quarter of 2013.

Net investment income for the Western Region was $11.1 million in the fourth quarter of 2014 compared with $11.6 million in the fourth quarter of 2013 and $11.0 million in the third quarter of 2014.

Health Plan Services Expenses

Health plan services expenses in the Western Region were $3.0 billion in the fourth quarter of 2014 compared with $2.2 billion in the fourth quarter of 2013.

Commercial Premium Yield and Health Care Cost Trends

In the Western Region, commercial premiums per member per month (PMPM) decreased by 2.5 percent to approximately $379 in the fourth quarter of 2014 compared with approximately $388 in the fourth quarter of 2013.

Commercial health care costs PMPM in the Western Region decreased by 5.6 percent to approximately $321 in the fourth quarter of 2014 compared with approximately $340 in the fourth quarter of 2013.

These premium and health care cost declines were primarily due to the mix shift in the makeup of the commercial membership with significantly higher individual membership in 2014 compared with 2013.

“The underlying commercial health care cost trends remained moderate in the fourth quarter of 2014 with no evidence of flu-related pressure,” noted Woys. “Our guidance assumes some slight upward pressure on commercial health care cost trends in 2015.”

Medical Care Ratios (MCR)

The health plan services MCR in the Western Region was 84.7 percent in the fourth quarter of 2014 compared with 87.1 percent in the fourth quarter of 2013. The full year 2014 Western Region health plan services MCR was 84.6 percent compared with 85.6 percent for the full year 2013.

The Western Region commercial MCR was 84.6 percent in the fourth quarter of 2014 compared with 87.4 percent in the fourth quarter of 2013 and 83.9 percent in the third quarter of 2014. The full year 2014 Western Region commercial MCR was 83.0 percent compared with 85.6 percent for the full year 2013.

“We are very pleased that we were able to produce both significant year-over-year enrollment gains and MCR improvement. We believe the MCR improvement is due to better performance in our group accounts that allowed us to cover the expense of the health insurer fee, and a higher percentage of our commercial enrollment coming from the individual segment due to the substantial growth from the individual exchanges,” Woys commented.

The Medicaid MCR was 80.0 percent in the fourth quarter of 2014 compared with 82.7 percent in the fourth quarter of 2013. The full year 2014 Medicaid MCR in the Western Region was 82.1 percent compared with 80.4 percent for the full year 2013.

“The fourth quarter 2014 Medicaid MCR was impacted by a number of year-end adjustments related to the significant enrollment increases from new populations and other factors. Accordingly, we believe the full year Medicaid MCR of 82.7 percent is a better reflection of our actual experience,” Woys noted.

The MA MCR was 92.8 percent in the fourth quarter of 2014 compared with 90.5 percent in the fourth quarter of 2013. The full year 2014 MA MCR in the Western Region was 91.5 percent compared with 90.6 percent for the full year 2013.

“The Medicare MCR was adversely affected by higher fourth quarter 2014 utilization from MA members who changed health plans at year-end and from the impact of an earlier than expected flu season,” explained Woys.

General and Administrative (G&A) Expenses

G&A expense in the Western Region was $404.7 million in the fourth quarter of 2014 compared with $280.4 million in the fourth quarter of 2013. The $124.5 million increase in the Western Region G&A expense year-over-year was driven by a $92.1 million increase in premium taxes, health insurer fee and other ACA-related fees. The G&A expense ratio in the Western Region was 11.3 percent in the fourth quarter of 2014 compared with 10.9 percent in the fourth quarter of 2013. The 40 basis point increase in the Western Region G&A expense ratio year-over-year was driven by a 220 basis point increase in premium taxes, health insurer fee and other ACA-related fees, partially offset by a 180 basis point decline in the Western Region administrative expense ratio, which does not include premium taxes, health insurer fee and other ACA-related fees.

“We are pleased that our ongoing efficiency efforts and our rapid growth helped drive the administrative expense ratio lower,” Woys commented.

The Western Region G&A expense ratio for the full year 2014 was 10.9 percent compared with 10.3 percent for the full year 2013.

GOVERNMENT CONTRACTS SEGMENT

Government Contracts revenues in the fourth quarter of 2014 were $159.6 million compared with $148.5 million in the fourth quarter of 2013.

Government Contracts expenses in the fourth quarter of 2014 were $147.2 million compared with $124.6 million in the fourth quarter of 2013.

“Our Government Contracts performance for the fourth quarter of 2014 was affected by lower TRICARE earnings and startup costs related to the expansion of our work for the VA,” Woys explained.

BALANCE SHEET

Cash and investments as of December 31, 2014 were $2.7 billion compared with $2.1 billion as of December 31, 2013.

The company noted that the net receivable balance for commercial reinsurance, risk corridors and risk adjusters related to the ACA was approximately $248 million at December 31, 2014. Approximately 94 percent of this net receivable is related to reinsurance.

Reserves for claims and other settlements as of December 31, 2014 were $1.9 billion compared with $984.1 million as of December 31, 2013 and $1.7 billion as of September 30, 2014.

Days claims payable (DCP) for the fourth quarter of 2014 was 57.4 days compared with 40.6 days in the fourth quarter of 2013 and 51.4 days in the third quarter of 2014.

On an adjusted¹ basis, DCP in the fourth quarter of 2014 was 70.1 days compared with 57.9 days in the fourth quarter of 2013 and 65.3 days in the third quarter of 2014.

“The 4.8 day increase in adjusted DCP sequentially in the fourth quarter of 2014 reflects the continued impact of reinsurance on health care costs and higher reserves as a consequence of our rapid enrollment growth,” Woys noted.

The company’s debt-to-total capital ratio was 22.6 percent as of December 31, 2014 compared with 23.5 percent as of December 31, 2013 and 22.1 percent as of September 30, 2014.

CASH FLOW FROM OPERATIONS

Operating cash flow was negative $109.7 million in the fourth quarter of 2014. For the full year 2014, operating cash flow was positive $776.0 million.

“The full year operating cash flow improvement was driven primarily by our strong operating results and our business growth,” explained Woys. “Operating cash flow in the fourth quarter of 2014, however, was negatively impacted by the timing of payments related to state health programs.”

The company noted that a late Medicaid payment from the state of California of approximately $311 million was received in January 2015.

Cash at the parent was approximately $61 million at December 31, 2014.

SHARE REPURCHASE UPDATE

For the full year 2014, Health Net repurchased approximately 3 million shares of its common stock for $137.8 million at an average price of $45.92 per share. On December 16, 2014, Health Net’s board of directors approved a $258 million increase to the company’s existing share repurchase program. Including this increase, Health Net had $400 million in repurchase authority under the company’s existing share repurchase program as of December 31, 2014.

Health Net continued its share repurchases in the first quarter of 2015. The company repurchased 1.1 million shares from January 1, 2015 through January 31, 2015, at a total cost of $57.7 million.

The company noted it funded its January share repurchases from its revolving credit facility.

¹	See “Disclosures Regarding Non-GAAP Financial Information” attached to this press release for a reconciliation of this information to the comparable GAAP financial measure.

2015 GUIDANCE

The company expects GAAP earnings per diluted share of at least $2.70 for the full year 2015. The table included in this release provides specific metrics.

“Our 2015 GAAP earnings per diluted share guidance of at least $2.70 is based primarily on our expectation of an approximately 9 percent increase in membership and an approximately 23 percent increase in total revenues; stable MCRs in the commercial, Medicare and Medicaid lines of business; and an approximately 50 basis point decline in the company’s administrative expense ratio in 2015 compared with 2014 results,” said Gellert.

CONFERENCE CALL

As previously announced, Health Net will discuss the company’s fourth quarter and year-end 2014 earnings results during a conference call on Tuesday, February 10, 2015, beginning at approximately 11:00 a.m. Eastern time. The conference call should be accessed at least 15 minutes prior to its start with the following numbers:

(877) 407-4019 (Live – Domestic toll-free)

(201) 689-8337 (Live – International)

(877) 660-6853 (Replay – Domestic toll-free)

(201) 612-7415 (Replay – International)

An access code is not required for the live conference call on February 10, 2015. The access code for the replay is 13599556. The replay of the conference call will be available through February 15, 2015. A live webcast and replay of the conference call also will be available at www.healthnet.com under “Investor Relations.” The conference call webcast is open to all interested parties. Anyone listening to the company’s conference call or webcast will be presumed to have read Health Net’s Annual Report on Form 10-K for the year ended December 31, 2013, Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2014, June 30, 2014, and September 30, 2014, and other reports filed by the company from time to time with the Securities and Exchange Commission.

ABOUT HEALTH NET

Health Net, Inc. is a publicly traded managed care organization that delivers managed health care services through health plans and government-sponsored managed care plans. Its mission is to help people be healthy, secure and comfortable. Health Net provides and administers health benefits to approximately 6.0 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid, U.S. Department of Defense, including TRICARE, and Veterans Affairs programs. Health Net also offers behavioral health, substance abuse and employee assistance programs, managed health care products related to prescription drugs, managed health care product coordination for multi-region employers, and administrative services for medical groups and self-funded benefits programs.

For more information on Health Net, Inc., please visit Health Net’s website at www.healthnet.com.

CAUTIONARY STATEMENTS

The company and its representatives may from time to time make written and oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act (“PSLRA”) of 1995, including statements in this and other press releases, in presentations, filings with the Securities and Exchange Commission (“SEC”), reports to stockholders and in meetings with investors and analysts. All statements in this press release, other than statements of historical information provided herein, including

the guidance for future periods and the assumptions underlying such projections, may be deemed to be forward-looking statements and as such are intended to be covered by the safe harbor for “forward-looking statements” provided by PSLRA. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to changes in circumstances and a number of risks and uncertainties. Without limiting the foregoing, the guidance as to expected future period results and statements including the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend,” “feels,” “will,” “projects” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially from those expressed in, or implied or projected by the forward-looking information and statements due to, among other things, health care reform and other increased government participation in and taxation or regulation of health benefits and managed care operations, including but not limited to the implementation of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the “ACA”) and related fees, assessments and taxes; the company’s ability to successfully participate in California’s Coordinated Care Initiative, which is subject to a number of risks inherent in untested health care initiatives and requires the company to adequately predict the costs of providing benefits to individuals that are generally among the most chronically ill within each of Medicare and Medi-Cal and implement delivery systems for benefits with which the company has limited operating experience; the company’s ability to successfully participate in the federal and state health insurance exchanges under the ACA, which involve uncertainties related to the mix and volume of business that could negatively impact the adequacy of the company’s premium rates and may not be sufficiently offset by the risk apportionment provisions of the ACA; increasing health care costs, including but not limited to costs associated with the introduction of new treatments or therapies; the company’s ability to reduce administrative expenses while maintaining targeted levels of service and operating performance, including through the company’s master services agreement with a subsidiary of Cognizant Technology Solutions Corporation (Cognizant); whether the company receives required regulatory approvals for Cognizant’s provision of services to the company and any conditions imposed in order to obtain such regulatory approvals; the company’s ability to recognize the intended cost savings and other intended benefits of the Cognizant transaction; the risk that Cognizant may not perform contracted functions and services in a timely, satisfactory and compliant manner; negative prior period claims reserve developments; rate cuts and other risks and uncertainties affecting the company’s Medicare or Medicaid businesses; trends in medical care ratios; membership declines or negative changes in the company’s health care product mix; unexpected utilization patterns or unexpectedly severe or widespread illnesses; the timing of collections on amounts receivable from state and federal governments and agencies, including collections of amounts owed under the T-3 contract; litigation costs; regulatory issues with federal and state agencies including, but not limited to, the California Department of Managed Health Care and Department of Health Care Services, the Centers for Medicare & Medicaid Services, the Office of Civil Rights of the U.S. Department of Health and Human Services and state departments of insurance; operational issues; changes in economic or market conditions; failure to effectively oversee the company’s third-party vendors; noncompliance by the company or the company’s business associates with any privacy laws or any security breach involving the misappropriation, loss or other unauthorized use or disclosure of confidential information; impairment of the company’s goodwill or other intangible assets; investment portfolio impairment charges; volatility in the financial markets; and general business and market conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC and the other risks discussed in the company’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. Except as may be required by law, the company undertakes no obligation to address or publicly update any of its guidance, the assessment of the underlying assumptions or forward-looking statements to reflect events or circumstances that arise after the date of this release.

The financial information presented in this press release is unaudited and is subject to change, including as a result of subsequent events or adjustments, if any, arising prior to the filing of the company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Ten pages of tables follow.

# # #

Health Net, Inc.

2015 GAAP Guidance ⁽¹⁾



MEMBERSHIP⁽²⁾	Current (updated 2/10/15)		Previous (as of 12/17/14)

	Enrollment at 12/31/2015		Enrollment at 12/31/2015
Commercial
Large Group		511,000		n/a
Small Group		301,000		n/a
Individual		388,000		n/a

Total Commercial		1,200,000		n/a

Medicare Advantage		270,000		n/a

Medicaid		1,938,000		n/a

Dual Eligibles		50,000		n/a

Total Health Plan Membership		3,457,000		3,500,000




Premium Revenues	FY2015		FY2015
Commercial	$	5.7 billion		n/a
Medicare Advantage	$	3.1 billion		n/a
State Health Plans	$	6.7 billion		n/a
Dual Eligibles	$	922 million		n/a
Total Health Plans⁽²⁾	$	16.5 billion		n/a

Total Consolidated Revenues	$	17.2 billion	$	17.4 billion

Medical Care Ratios (MCR) ⁽²⁾	FY2015		FY2015
Commercial		83.1%		n/a
Medicare Advantage		91.1%		n/a
Medicaid		82.1%		n/a
Dual Eligibles		88.3%		n/a
Health Plan		84.5%		84.6%

G&A Expense Ratio ⁽²⁾		10.8%		10.9%

Admin Expense Ratio ⁽²⁾		7.2%		7.2%

GAAP Tax Rate		56.7%		57.4%

Western Region and Government Contracts Tax Rate		54.8%		55.0%

Weighted-average fully diluted shares outstanding		77.8 million		~78 million

GAAP Earnings per Diluted Share (EPS)		At least $2.70		At least $2.55

Western Region and Government Contracts EPS		$3.15 - $3.25		At least $3.15

(1)	All guidance metrics are approximations

(2)	For the company’s Western Region operations segment

Health Net, Inc.

Enrollment Data - By State

(In thousands)


							Change from
							September 30, 2014						December 31, 2013
	December 31,		September 30,		December 31,		Increase/			%			Increase/			%
	2014		2014		2013		(Decrease)			Change			(Decrease)			Change
California
Large Group		474		477		565		(3	)		(0.6	)%		(91	)		(16.1	)%
Small Group		246		243		244		3			1.2	%		2			0.8	%
Individual		237		269		100		(32	)		(11.9	)%		137			137.0	%

Commercial Risk		957		989		909		(32	)		(3.2	)%		48			5.3	%
Medicare Advantage		173		169		153		4			2.4	%		20			13.1	%
Medi-Cal		1,595		1,485		1,113		110			7.4	%		482			43.3	%
Dual Eligibles		16		9		0		7			77.8	%		16			0.0	%
Total California		2,741		2,652		2,175		89			3.4	%		566			26.0	%
Arizona
Large Group		44		45		57		(1	)		(2.2	)%		(13	)		(22.8	)%
Small Group		43		44		39		(1	)		(2.3	)%		4			10.3	%
Individual		92		97		12		(5	)		(5.2	)%		80			666.7	%

Commercial Risk		179		186		108		(7	)		(3.8	)%		71			65.7	%
Medicare Advantage		46		46		43		0			0.0	%		3			7.0	%
Medicaid		81		80		4		1			1.3	%		77			1925.0	%
Total Arizona		306		312		155		(6	)		(1.9	)%		151			97.4	%
Northwest
Large Group		29		28		29		1			3.6	%		0			0.0	%
Small Group		24		23		36		1			4.3	%		(12	)		(33.3	)%
Individual		3		4		3		(1	)		(25.0	)%		0			0.0	%

Commercial Risk		56		55		68		1			1.8	%		(12	)		(17.6	)%
Medicare Advantage		56		56		48		0			0.0	%		8			16.7	%
Total Northwest		112		111		116		1			0.9	%		(4	)		(3.4	)%

Total Health Plan Enrollment
Large Group		547		550		651		(3	)		(0.5	)%		(104	)		(16.0	)%
Small Group		313		310		319		3			1.0	%		(6	)		(1.9	)%
Individual		332		370		115		(38	)		(10.3	)%		217			188.7	%

Commercial Risk		1,192		1,230		1,085		(38	)		(3.1	)%		107			9.9	%
Medicare Advantage		275		271		244		4			1.5	%		31			12.7	%
Medi-Cal/Medicaid		1,676		1,565		1,117		111			7.1	%		559			50.0	%
Dual Eligibles		16		9		0		7			77.8	%		16			0.0	%

Western Region Operations		3,159		3,075		2,446		84			2.7	%		713			29.1	%


TRICARE - North Contract Eligibles		2,837		2,849		2,851		(12	)		(0.4	)%		(14	)		(0.5	)%

Health Net, Inc.

Enrollment Data - Line of Business

(In thousands)


							Change from
							September 30, 2014						December 31, 2013
	December 31,		September 30,		December 31,		Increase/			%			Increase/			%
	2014		2014		2013		(Decrease)			Change			(Decrease)			Change
Large Group
California		474		477		565		(3	)		(0.6	)%		(91	)		(16.1	)%
Arizona		44		45		57		(1	)		(2.2	)%		(13	)		(22.8	)%
Northwest		29		28		29		1			3.6	%		0			0.0	%

		547		550		651		(3	)		(0.5	)%		(104	)		(16.0	)%

Small Group
California		246		243		244		3			1.2	%		2			0.8	%
Arizona		43		44		39		(1	)		(2.3	)%		4			10.3	%
Northwest		24		23		36		1			4.3	%		(12	)		(33.3	)%

		313		310		319		3			1.0	%		(6	)		(1.9	)%

Individual
California		237		269		100		(32	)		(11.9	)%		137			137.0	%
Arizona		92		97		12		(5	)		(5.2	)%		80			666.7	%
Northwest		3		4		3		(1	)		(25.0	)%		0			0.0	%

		332		370		115		(38	)		(10.3	)%		217			188.7	%

Commercial Risk
California		957		989		909		(32	)		(3.2	)%		48			5.3	%
Arizona		179		186		108		(7	)		(3.8	)%		71			65.7	%
Northwest		56		55		68		1			1.8	%		(12	)		(17.6	)%

		1,192		1,230		1,085		(38	)		(3.1	)%		107			9.9	%

Medicare Advantage
California		173		169		153		4			2.4	%		20			13.1	%
Arizona		46		46		43		0			0.0	%		3			7.0	%
Northwest		56		56		48		0			0.0	%		8			16.7	%

		275		271		244		4			1.5	%		31			12.7	%

Medi-Cal/Medicaid
California		1,595		1,485		1,113		110			7.4	%		482			43.3	%
Arizona		81		80		4		1			1.3	%		77			1925.0	%

		1,676		1,565		1,117		111			7.1	%		559			50.0	%

Dual Eligibles

California		16		9		0		7			77.8	%		16			0.0	%

Total Health Plan Enrollment
Large Group		547		550		651		(3	)		(0.5	)%		(104	)		(16.0	)%
Small Group		313		310		319		3			1.0	%		(6	)		(1.9	)%
Individual		332		370		115		(38	)		(10.3	)%		217			188.7	%

Commercial Risk		1,192		1,230		1,085		(38	)		(3.1	)%		107			9.9	%
Medicare Advantage		275		271		244		4			1.5	%		31			12.7	%
Medi-Cal/Medicaid		1,676		1,565		1,117		111			7.1	%		559			50.0	%
Dual Eligibles		16		9		0		7			77.8	%		16			0.0	%

Western Region Operations		3,159		3,075		2,446		84			2.7	%		713			29.1	%


TRICARE - North Contract Eligibles		2,837		2,849		2,851		(12	)		(0.4	)%		(14	)		(0.5	)%

Health Net, Inc.

Consolidated Statements of Operations

($ in thousands, except per share data)


	Quarter Ended December 31, 2014		Quarter Ended September 30, 2014			Quarter Ended December 31, 2013		Year Ended December 31, 2014			Year Ended December 31, 2013
REVENUES:
Health plan services premiums	$	3,586,330	$	3,631,617		$	2,559,376	$	13,361,170		$	10,377,073
Government contracts		159,619		146,183			148,470		603,975			572,266
Net investment income		11,057		10,964			11,643		45,166			69,613
Administrative services fees and other income		1,383		1,106			23,755		(1,725	)		34,791

Total revenues		3,758,389		3,789,870			2,743,244		14,008,586			11,053,743

EXPENSES:
Health plan services		3,038,220		3,104,010			2,229,332		11,307,751			8,886,547
Government contracts		147,058		124,403			124,709		536,643			502,918
General and administrative		472,984		373,623			279,339		1,552,364			1,083,694
Selling		68,073		66,111			63,600		262,338			239,428
Depreciation and amortization		3,982		6,500			10,234		29,786			38,589
Interest		7,919		7,810			7,988		31,376			32,614
Asset impairment		3,846		84,690			—		88,536			—

Total expenses		3,742,082		3,767,147			2,715,202		13,808,794			10,783,790

Income from operations before income taxes		16,307		22,723			28,042		199,792			269,953
Income tax provision		11,393		31,662			8,289		54,163			99,827

Net income (loss)	$	4,914	$	(8,939	)	$	19,753	$	145,629		$	170,126


Net income (loss) per share:
Basic	$	0.06	$	(0.11	)	$	0.25	$	1.83		$	2.14
Diluted	$	0.06	$	(0.11	)	$	0.25	$	1.80		$	2.12

Weighted average shares outstanding:
Basic		78,145		80,235			79,511		79,602			79,455
Diluted		79,479		80,235			80,600		80,777			80,404

Health Net, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands, except ratio data)


	December 31,			September 30,			December 31,
	2014			2014			2013
ASSETS
Current Assets
Cash and cash equivalents	$	869,133		$	1,114,558		$	433,155
Investments - available for sale		1,791,060			1,664,830			1,567,020
Premiums receivable, net		951,935			579,515			430,012
Amounts receivable under government contracts		150,546			143,662			194,041
Other receivables		424,910			307,369			68,919
Deferred taxes		57,911			71,434			94,060
Assets held for sale		50,000			50,000			—
Other assets		220,122			157,066			132,683

Total current assets		4,515,617			4,088,434			2,919,890

Property and equipment, net		84,328			92,193			201,395
Goodwill		558,886			558,886			565,886
Other intangible assets, net		11,822			12,526			13,842
Deferred taxes		33,081			34,580			5,793
Investments - available for sale - noncurrent		4,570			3,055			59,768
Other noncurrent assets		187,630			173,230			162,551

Total Assets	$	5,395,934		$	4,962,904		$	3,929,125


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Reserves for claims and other settlements	$	1,896,035		$	1,733,307		$	984,075
Health care and other costs payable under government contracts		71,988			62,796			72,098
Unearned premiums		96,106			125,363			123,969
Accounts payable and other liabilities		880,374			540,968			397,036

Total current liabilities		2,944,503			2,462,434			1,577,178
Senior notes payable		399,504			399,453			399,300
Deferred taxes		—			—			10,409
Borrowings under revolving credit facility		100,000			100,000			100,000
Other noncurrent liabilities		242,705			235,393			213,427

Total Liabilities		3,686,712			3,197,280			2,300,314


Stockholders’ Equity
Common stock		153			152			150
Additional paid-in capital		1,444,705			1,432,513			1,377,624
Treasury common stock, at cost		(2,341,652	)		(2,272,180	)		(2,179,744	)
Retained earnings		2,609,277			2,604,363			2,463,648
Accumulated other comprehensive (loss) income		(3,261	)		776			(32,867	)

Total Stockholders’ Equity		1,709,222			1,765,624			1,628,811

Total Liabilities and Stockholders’ Equity	$	5,395,934		$	4,962,904		$	3,929,125


Debt-to-Total Capital Ratio		22.6	%		22.1	%		23.5	%

Health Net, Inc.

Condensed Consolidated Statement of Cash Flows

(Amounts in thousands)


	Quarter Ended December 31, 2014			Quarter Ended September 30, 2014			Quarter Ended December 31, 2013			Year Ended December 31, 2014			Year Ended December 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	4,914		$	(8,939	)	$	19,753		$	145,629		$	170,126
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Amortization and depreciation		3,982			6,500			10,234			29,786			38,589
Share-based compensation expense		6,525			6,109			6,542			28,334			29,930
Deferred income taxes		18,191			(38,231	)		(9,676	)		(16,564	)		8,645
Excess tax benefits from share-based compensation		(635	)		(241	)		(169	)		(2,230	)		(620	)
Asset impairment		3,846			84,690			—			88,536			—
Net realized gain on sale on investments		(128	)		(346	)		(755	)		(2,710	)		(24,061	)
Other changes		6,648			7,264			7,975			29,838			31,539
Changes in assets and liabilities:
Premiums receivable and unearned premiums		(401,677	)		264,032			(91,622	)		(549,786	)		(83,822	)
Other current assets, receivables and noncurrent assets		(192,809	)		(34,671	)		(24,528	)		(444,288	)		1,425
Amounts receivable/payable under government contracts		(6,212	)		12,369			(10,168	)		39,754			20,896
Reserves for claims and other settlements		162,728			244,985			(6,120	)		911,960			(53,898	)
Accounts payable and other liabilities		284,965			44,434			26,648			517,742			(42,910	)

Net cash (used in) provided by operating activities		(109,662	)		587,955			(71,886	)		776,001			95,839


CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments		144,552			104,628			42,748			441,430			696,534
Maturities of investments		34,158			21,064			20,415			98,901			93,225
Purchases of investments		(303,749	)		(133,014	)		(70,179	)		(665,200	)		(722,223	)
Purchases of property and equipment		(13,615	)		(18,439	)		(16,929	)		(62,010	)		(59,525	)
Sales and purchases of restricted investments and other		(735	)		2,002			(2,735	)		2,027			(7,432	)

Net cash (used in) provided by investing activities		(139,389	)		(23,759	)		(26,680	)		(184,852	)		579


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases		6,310			14,945			120			27,727			10,762
Repurchases of common stock		(82,863	)		(57,168	)		(241	)		(152,549	)		(77,810	)
Excess tax benefits from share-based compensation		635			241			169			2,230			620
Borrowings under financing arrangements		—			—			22,000			—			345,000
Repayment of borrowings under financing arrangements		—			—			(22,000	)		—			(345,000	)
Net increase (decrease) in checks outstanding, net of deposits		—			—			—			—			(23,842	)
Customer funds administered		79,544			(10,753	)		(154,466	)		(32,579	)		86,897

Net cash provided by (used in) financing activities		3,626			(52,735	)		(154,418	)		(155,171	)		(3,373	)


Net (decrease) increase in cash and cash equivalents		(245,425	)		511,461			(252,984	)		435,978			93,045

Cash and cash equivalents, beginning of period		1,114,558			603,097			686,139			433,155			340,110


Cash and cash equivalents, end of period	$	869,133		$	1,114,558		$	433,155		$	869,133		$	433,155

Health Net, Inc.

SEGMENT INFORMATION

($ in thousands, except per share and PMPM data)

The following table presents Health Net’s operating segment information.


	Quarter Ended December 31, 2014										Quarter Ended September 30, 2014											Quarter Ended December 31, 2013
	Western Region Operations¹			Government Contracts²		Corporate/ Other⁴			Consolidated		Western Region Operations¹			Government Contracts²		Corporate/ Other⁴			Consolidated			Western Region Operations¹			Government Contracts²		Corporate/ Other³			Consolidated
Commercial premiums	$	1,370,656							$	1,370,656	$	1,430,769							$	1,430,769		$	1,271,553							$	1,271,553
Medicare premiums		768,595								768,595		763,327								763,327			691,114								691,114
Medicaid premiums		1,374,243								1,374,243		1,397,732								1,397,732			596,709								596,709
Dual Eligibles premiums		72,836								72,836		39,789								39,789			0								0

Health plan services premiums		3,586,330								3,586,330		3,631,617								3,631,617			2,559,376								2,559,376
Government contracts					159,619					159,619					146,183					146,183						148,470					148,470
Net investment income		11,057								11,057		10,964								10,964			11,643								11,643
Administrative services fees and other income		1,383								1,383		1,106								1,106			23,755								23,755

Total revenues		3,598,770			159,619					3,758,389		3,643,687			146,183					3,789,870			2,594,774			148,470					2,743,244

Health plan services		3,038,220								3,038,220		3,104,010								3,104,010			2,229,332								2,229,332
Government contracts					147,167		(109	)		147,058					123,571		832			124,403						124,638		71			124,709
Premium tax		63,345								63,345		53,417								53,417			31,601								31,601
Health insurer fee		35,361								35,361		31,947								31,947			—								—
Other ACA fees		25,841								25,841		26,643								26,643			836								836
Administrative expenses		280,107					68,330			348,437		241,352					20,264			261,616			247,946					(1,044	)		246,902

Total general and administrative		404,654					68,330			472,984		353,359					20,264			373,623			280,383					(1,044	)		279,339

Selling		68,073								68,073		66,111								66,111			63,600								63,600
Depreciation and amortization		3,900					82			3,982		6,500								6,500			10,234								10,234
Interest		7,919								7,919		7,810								7,810			7,988								7,988
Asset impairment							3,846			3,846							84,690			84,690											0

Total expenses		3,522,766			147,167		72,149			3,742,082		3,537,790			123,571		105,786			3,767,147			2,591,537			124,638		(973	)		2,715,202

Income (loss) from operations before income taxes		76,004			12,452		(72,149	)		16,307		105,897			22,612		(105,786	)		22,723			3,237			23,832		973			28,042
Income tax provision (benefit)		36,010			5,010		(29,627	)		11,393		61,085			8,918		(38,341	)		31,662			(2,215	)		10,148		356			8,289

Income (loss) from operations	$	39,994		$	7,442	$	(42,522	)	$	4,914	$	44,812		$	13,694	$	(67,445	)	$	(8,939	)	$	5,452		$	13,684	$	617		$	19,753

Basic earnings (loss) per share	$	0.51		$	0.10	$	(0.54	)	$	0.06	$	0.56		$	0.17	$	(0.84	)	$	(0.11	)	$	0.07		$	0.17	$	0.01		$	0.25
Diluted earnings (loss) per share	$	0.50		$	0.10	$	(0.54	)	$	0.06	$	0.55		$	0.17	$	(0.84	)	$	(0.11	)	$	0.07		$	0.17	$	0.01		$	0.25
Basic weighted average shares outstanding		78,145			78,145		78,145			78,145		80,235			80,235		80,235			80,235			79,511			79,511		79,511			79,511
Diluted weighted average shares outstanding		79,479			79,479		78,145			79,479		81,513			81,513		80,235			80,235			80,600			80,600		80,600			80,600

Pretax margin		2.1	%									2.9	%										0.1	%
Commercial premium yield		-2.5	%									-0.3	%										3.4	%
Commercial premium PMPM	$	378.69									$	385.67										$	388.41
Commercial health care cost trend		-5.6	%									-0.7	%										2.0	%
Commercial health care cost PMPM	$	320.56									$	323.43										$	339.53
Commercial MCR		84.6	%									83.9	%										87.4	%
Medicare Advantage MCR		92.8	%									90.8	%										90.5	%
Medicaid MCR		80.0	%									84.2	%										82.7	%
Dual Eligibles MCR		89.2	%									87.4	%										—
Health plan services MCR		84.7	%									85.5	%										87.1	%
Administrative expense ratio		7.8	%									6.6	%										9.6	%
Total G&A expense ratio		11.3	%									9.7	%										10.9	%
Selling costs ratio		1.9	%									1.8	%										2.5	%

Includes the operations of the company’s commercial, Medicare, Medicaid and, in 2014, Dual Eligibles health plans in California, Arizona, Oregon and Washington, as well as the operations of the company’s health and life insurance companies, primarily in Arizona, California, Oregon and Washington, and the operations of the company’s behavioral health and pharmaceutical services subsidiaries in several states including California, Arizona and Oregon.

2	Includes administrative services provided under the T-3 Managed Care Support Contract for the TRICARE North Region and other health care-related Department of Defense and Veterans Affairs government contracts.

3	Primarily includes litigation reserve true-up related to previous accrual for litigation and related legal expenses. Also includes severance expenses.

4	Primarily includes costs related to the company’s comprehensive outsourcing arrangement with a third party and related asset impairment.

Health Net, Inc.

SEGMENT INFORMATION

($ in thousands, except per share and PMPM data)

The following table presents Health Net’s operating segment information.


	Year Ended December 31, 2014											Year Ended December 31, 2013
	Western Region Operations¹			Government Contracts²		Corporate/ Other⁴			Consolidated			Western Region Operations¹			Government Contracts²		Corporate/ Other³			Consolidated
Commercial premiums	$	5,443,062							$	5,443,062		$	5,175,370							$	5,175,370
Medicare premiums		3,044,274								3,044,274			2,771,431								2,771,431
Medicaid premiums		4,755,897								4,755,897			2,430,272								2,430,272
Dual Eligibles premiums		117,937								117,937			0								0

Health plan services premiums		13,361,170								13,361,170			10,377,073								10,377,073
Government contracts					603,975					603,975						572,266					572,266
Net investment income		45,166								45,166			69,613								69,613
Administrative services fees and other income		(1,725	)							(1,725	)		34,791								34,791

Total revenues		13,404,611			603,975					14,008,586			10,481,477			572,266					11,053,743

Health plan services		11,307,751								11,307,751			8,886,547								8,886,547
Government contracts					534,442		2,201			536,643						497,780		5,138			502,918
Premium tax		191,150								191,150			124,360								124,360
Health insurer fee		141,445								141,445			0								0
Other ACA fees		97,557								97,557			2,530								2,530
Administrative expenses		1,027,718					94,494			1,122,212			949,927					6,877			956,804

Total general and administrative		1,457,870					94,494			1,552,364			1,076,817					6,877			1,083,694

Selling		262,338								262,338			239,428								239,428
Depreciation and amortization		29,704					82			29,786			38,589								38,589
Interest		31,376								31,376			32,614								32,614
Asset impairment							88,536			88,536

Total expenses		13,089,039			534,442		185,313			13,808,794			10,273,995			497,780		12,015			10,783,790

Income (loss) from operations before income taxes		315,572			69,533		(185,313	)		199,792			207,482			74,486		(12,015	)		269,953
Income tax provision (benefit)		169,340			28,256		(143,433	)		54,163			73,621			30,900		(4,694	)		99,827

Income (loss) from operations	$	146,232		$	41,277	$	(41,880	)	$	145,629		$	133,861		$	43,586	$	(7,321	)	$	170,126

Basic earnings (loss) per share	$	1.84		$	0.52	$	(0.53	)	$	1.83		$	1.68		$	0.55	$	(0.09	)	$	2.14
Diluted earnings (loss) per share	$	1.81		$	0.51	$	(0.53	)	$	1.80		$	1.67		$	0.54	$	(0.09	)	$	2.12
Basic weighted average shares outstanding		79,602			79,602		79,602			79,602			79,455			79,455		79,455			79,455
Diluted weighted average shares outstanding		80,777			80,777		79,602			80,777			80,404			80,404		79,455			80,404

Pretax margin		2.4	%										2.0	%
Commercial premium yield		0.1	%										2.7	%
Commercial premium PMPM	$	385.42										$	385.13
Commercial health care cost trend		-3.0	%										-1.0	%
Commercial health care cost PMPM	$	319.82										$	329.75
Commercial MCR		83.0	%										85.6	%
Medicare Advantage MCR		91.5	%										90.6	%
Medicaid MCR		82.1	%										80.4	%
Dual Eligibles MCR		86.1	%										—
Health plan services MCR		84.6	%										85.6	%
Administrative expense ratio		7.7	%										9.1	%
Total G&A expense ratio		10.9	%										10.3	%
Selling costs ratio		2.0	%										2.3	%

2	Includes administrative services provided under the T-3 Managed Care Support Contract for the TRICARE North Region and other health care-related Department of Defense and Veterans Affairs government contracts.

3	Includes litigation reserve true-up related to previous accrual for litigation and related legal expenses. Also includes severance expenses.

Primarily includes costs related to the company’s comprehensive outsourcing arrangement with a third party and related asset impairment. Also includes litigation reserve true-up related to previous accrual for litigation and related legal expenses, severance expenses and $72.6 million income tax benefit.

Health Net, Inc.

Disclosures Regarding Non-GAAP Financial Information

($ in millions)

Set forth below is a reconciliation of adjusted days claims payable (DCP), a non-GAAP financial measure, to the comparable GAAP financial measure, DCP. DCP is calculated by dividing the amount of reserve for claims and other settlements (claims reserve) by health plan services cost (health plan costs) during the quarter and multiplying that amount by the number of days in the quarter. In this press release, management presents an adjusted DCP metric which subtracts capitation, provider and other claims settlements and Medicare Advantage-Prescription Drug (MAPD) payables/costs from the claims reserve and health plan costs.

You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating the adjusted amounts, you should be aware that we have incurred expenses that are the same as or similar to some of the adjustments in the current presentation and we may incur them again in the future.

Our presentation of the adjusted amounts should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.


	Q4 2014			Q3 2014			Q4 2013			FY 2014			FY 2013
Reconciliation of Days Claims Payable:
(1) Reserve for Claims and Other Settlements - GAAP	$	1,896.0		$	1,733.3		$	984.1		$	1,896.0		$	984.1
Less: Capitation, Provider and Other Claim Settlements, and MAPD Payables		(467.2	)		(407.1	)		(93.9	)		(467.2	)		(93.9	)

(2) Reserve for Claims and Other Settlements - Adjusted	$	1,428.8		$	1,326.2		$	890.2		$	1,428.8		$	890.2

(3) Health Plan Services Cost - GAAP	$	3,038.2		$	3,104.0		$	2,229.3		$	11,307.8		$	8,886.5
Less: Capitation, Provider and Other Claim Settlements, and MAPD Costs		(1,161.8	)		(1,236.0	)		(815.0	)		(4,553.7	)		(3,348.9	)

(4) Health Plan Services Cost - Adjusted	$	1,876.4		$	1,868.0		$	1,414.3		$	6,754.1		$	5,537.6

(5) Number of Days in Period		92			92			92			365			365

= (1) / (3) * (5) Days Claims Payable - GAAP Basis (using end of period reserve amount)		57.4			51.4			40.6			61.2			40.4
= (2) / (4) * (5) Days Claims Payable - Adjusted Basis (using end of period reserve amount)		70.1			65.3			57.9			77.2			58.7

Health Net, Inc.

Reconciliation of Reserves for Claims and Other Settlements

($ in millions)


	Health Plan Services
	FY 2014			FY 2013			FY 2012
Reserve for claims (a), beginning of period	$	807.4		$	808.7		$	720.8
Incurred claims related to:
Current Year (f)		5,613.0			4,666.0			4,950.9
Prior Years (c)		(14.6	)		(56.2	)		34.5

Total Incurred (b)		5,598.4			4,609.8			4,985.4

Paid claims related to:
Current Year		4,443.2			3,872.5			4,156.6
Prior Years		776.3			738.6			740.9

Total Paid (b)		5,219.5			4,611.1			4,897.5


Reserve for claims (a), end of period		1,186.3			807.4			808.7
Add:
Claims Payable (d)		175.4			67.0			91.6
Other (e)		534.3			109.7			137.7

Reserves for claims and other settlements, end of period	$	1,896.0		$	984.1		$	1,038.0

(a)	Consists of incurred but not reported claims and received but unprocessed claims and reserves for loss adjustment expenses.

(b)	Includes medical claims only. Capitation, pharmacy and other payments including provider settlements are not included.

(c)

This line represents the change in reserves attributable to the difference between the original estimate of incurred claims for prior years and the revised estimate. Negative amounts in this line represent favorable development in estimated prior years’ health care costs. Positive amounts in this line represent unfavorable development in estimated prior years’ health care costs. The favorable developments related to prior years that were recorded in the years ended December 31, 2014 and December 31, 2013, respectively, do not directly correspond to an increase in our operating results for those periods because any favorable prior period reserve development increases current period net income only to the extent that the current period provision for adverse deviation (see footnote (f)) is less than the benefit recognized from the prior period favorable development). The favorable development related to prior years that was recorded in the year ended December 31, 2014 consisted of $36.6 million in unfavorable prior year development primarily due to the existence of moderately adverse conditions and a release of $51.2 million of the provisions for adverse deviation held at December 31, 2013. We believe that the $36.6 million in unfavorable development for the year ended December 31, 2014 was primarily due to unanticipated benefit utilization in our commercial business arising from dates of service in the fourth quarter of 2013 as a result of an uncertain environment related to the ACA. For a detailed description of reserve development for fiscal years 2013 and 2012, see Note 2 to the Consolidated Financial Statements in the company’s Annual Report on Form 10-K for the year ended December 31, 2013.

(d)	Includes amount accrued for litigation and regulatory-related expenses.

(e)	Includes accrued capitation, shared risk settlements, provider incentives and other reserve items.

(f)

Our IBNR estimate also includes a provision for adverse deviation, which is an estimate for known environmental factors that are reasonably likely to affect the required level of IBNR reserves. Such amounts were $78 million, $53 million and $53 million as of December 31, 2014, December 31, 2013, and December 31, 2012, respectively.

GRAPHIC 3 g867210g58f21.jpg GRAPHIC begin 644 g867210g58f21.jpg M_]C_X``02D9)1@`!``$`8`!@``#__@`?3$5!1"!496-H;F]L;V=I97,@26YC M+B!6,2XP,0#_VP"$``("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(" M`@("`@,#`@(#`@("`P0#`P,#!`0$`@,$!`0$!`,$!`,!`@("`@("`@("`@," M`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,# M`P,#`P,#`__$`:(```$%`0$!`0$!```````````!`@,$!08'"`D*"P$``P$! M`0$!`0$!`0````````$"`P0%!@<("0H+$``"`0,#`@0#!04$!````7T!`@,` M!!$%$B$Q008346$'(G$4,H&1H0@C0K'!%5+1\"0S8G*""0H6%Q@9&B4F)R@I M*C0U-CH.$A8:' MB(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7 MV-G:X>+CY.7FY^CIZO'R\_3U]O?X^?H1``(!`@0$`P0'!00$``$"=P`!`@,1 M!`4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A)?$7&!D:)BH*#A(6& MAXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3U-76 MU]C9VN+CY.7FY^CIZO+S]/7V]_CY^O_``!$(`(D":@,!$0`"$0$#$0'_V@`, M`P$``A$#$0`_`/W\H`*`"@`H`*`..\;^/?"/PXT*Y\2>-->L=`TBVX\^\DQ) M<38RMK8VL8::^NWZ+#!'(Y],`D:T:-6O-4Z4'*;Z=/5GFYIF^79)A9XS,\7# M"X>*TR2776Q^9/Q3_X*&:[>S7.F_"/P]!I%BK,D?B7Q/"MY MJ=PH)`FM-$CD^SV2D8(^TR7+=-R*<@?0X7(HQ2EBI\S_`)8Z)/S?_#'X5Q!X MS8B%-/EC?=7`PE)+EH05M[I/\[GY?B^->*<;/FK MYUBM]%3J.FEKHDJ?+9=-CUCPIXV_;%^'\3>)[%?BE=Z%I]C;:U?#Q'INK:_X M>?2+F,SPW=V-024+:2VX9_-AEC=4&_:-%K^D6?C;XHW`32_$FMW7C'Q M=:Z!IGQ5NM&T36-'G\.Q6UO9,^E6`&V_N?+^PVOEJYP``6=1_:S\9Z9X-EUV M31O!MWJ4%UK5[9BQN;:ZTGQ+HFA:%H6KZC86=U9>-;B'1O$45SK26:6K7NJ7 MERNV>#3&$<\5N`S\,Z;XFT&VM=0^(FG:MX8TK78-;76[JYF_:/ M\2Z/J"SZA:ZA'+J6@6>CP64=Q901"-;1K9,Q+*9"`>U^.O$?C_QM\*O!ITO7 M;CP%XTO_`(RZ;X.N];\+1W1LDN/#OC?6="ENELK_`'RS^&M1ET2&6XL;EWWV MEW)`TK9$A`/(KG]ICXBZ#XA\90S^'$T_6(-:TGPWKMKXKN!;>#?!_B/P[X&_ MM75--TF^U+6='M[FR\1W4D5YIU\E\1+:;I?)GN4-M0!]%?![XG:_XBU7QEIG MQ"UKPCI^K_\`"6Z;8>%O"%BZP:YIMGJ7@30_%JZ;/*U](->"QW&J/'?6\*), M-.O9%/E(J0`'EW_"X?B5X:UOXB6MC9:;KNC>&/$7C/Q)?G7_`.VIM6N-&MO' MUCX9M/#'AEK1T@LPFGRW%Q#/.+A$>../R6CE:2(`]=^%'Q?;QF/,\1Z]X$L; M[5KH6ND^#-)N+]?%OAS4%;6))O#7BR*_N6$FO0V>DSR2+%;66'M;O;$\*1RR M`'O]`!0`4`%`!0`4`%`!0`4`%`'C'QQ^-GACX&^#I_$NO-]JU"X,EKXM+W:%"+]^K/IITBMY2Z+3=H^9/V@_@5X=^(7PTU_XU^)O$?C6\ M\16'P_;Q/HNB'6;8>%]#F?28]06PT_2QIH*68E?#MYGG2XS)(3T]'`XR>&Q$ M,+3IQ4/:*J8F&!CB:5!5%["E)TXS480M MI'6SUN]V?FK^SY\/M#^*7Q:\+>!O$OS\S@[ M2]V$I*U[I:JVQ]'_`+3'[,WPY^#>I_"BV\.:MK,%IXR\276FZ]?>*-4M)[*P MT^TETC=="2*RMQ;QQPWMRTC.6&U!TP:\W+\PKXR&)4XING&\5'>[O9?AH?=\ M;\"Y+PSB>'XX.O4IT\?B)0K3KRCR0A&5)\S:2M92=SO=6^/FD2_$']H36H/' M5L?"/AGX5S^`OACX<35S_96O7MU:P6(O-*TX2>5?RK/%<2&=49O+D09V<#&& M#:HX.+H_O*M55*DK:Q5VW=_<>O7XOP[S7BVO3S2#R[`98\%E]'VG[NO)QC3Y MJ=/:32U['<_\`!-ZPO8?!WQ)U"0.NGW7B31K.UR"(VNK'2Y7O60],B.\M M%;'H*QS]Q5;#Q7V8M_+I^1ZO@E1JPRK.*S3C2J8F"AYN,-6O2Z3/TGZ?A_2O M`V^1^W;>5@H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H M`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`" M@`H`*`"@`H`.GX?TH`^>;[XY7FC77B^PU?X8>*8-1\-^$M2\;Z1HVFWWA_5M M9UO0=/UJ30HYKNSM[Y(O#-Q=SJ+JW6\N61[1;F4R"2RN((@#4L/C-X&O?$O@ MGP7;QV$6N^)_`T7Q)72I[W2+:YT/3[^V6?28/L,M%T#5/#OP]75]>UZ.]N]&\-V'C'PW=ZK9Z5IVC0:W MKIPPW.EVZZ;<`R3W&H0+N6)7F0`]$O?C#;WMOX#A\`^&;SQKKGQ M!\-2>-=&TIK^S\/VFF^%+>/2VNM:\0:K=I.NG!;K6]-LXX(8+J::XN&5$\N& M62,`M>'?C!X*UZTO;7Q(]IX/\1Z1JMQHVO>$?$MWI[:AI^KZ=?:59A+62&1X M-8M);G6M">TNK0N)5UBR(5))?+4`:WQ2^"&H,_BG_A+?!U_+X6F6#^V89X+R M?2I-8@NK0-!/`CR>7<6]K?P&:',=+\/6%W/\`$OQ!K.D:#]K\2Z/X?\//+HS:U''=ZCXROX?LD#7]EHN+%/+D MDN9;N&WCZ,P`/6/!OQ'\->-+_P`1Z%IET%\1^"[NPTSQ?HA#R2:'JU[I5AJI ML?MJ(+;4%BCOUB-Q:R21M)#(%)`!(!WU`!0`4`%`!0`4`%`!0!5O;NWT^TNK MZ\F2VL[&VFN[JXD.V.WMK:)IIYI&[(D2,Q/HM.,7*2C'=M)+S>QG5JTZ%*I6 MJRY*5",IRD]E&*;;?DDF?SR?M!_&'4_C5\1M7\3W$LJZ%:/-I?A'378^7IV@ MVTKB!Q'G"W=XP-W._4O,$SMB0+]SE^%C@Z$(K2;LY/;5]_38_C3C+B:OQ-GM M;%RD_JE"?L<-3O:-.C&6CMMS3?O2?GY(_<=_",?CWX'6O@J6^DTR/Q/\.-,T M5]0BA6YELUOM!M86N(X'=%F9`V0I=0<=:^/=7V.,E5MS.G4E*VVTF?U7_9RS M;A6EEKJ.@L;E]&DYIMS:$ M;TKI=QX?L[&&X^VV%Q8G=P3EQA#DH!QFN_%9O+%494714.:VJ=WI\ MCXKAOPLP_#>;X7-J>:SQ$L*Y6INBH)J4)1W]I*UKWV/+_P#@I+QI7PE]M2\6 M?I9Z+73P_OB?)0M]\CP/&_3"Y#TM4Q'_`*32/RWTG2M1US4].T71[*;4-5U2 M\M]/TZQMD,D]U>7,JPP01*!]YI&'/``R20`2/HYSC2C*<_=A#=GX!A<+7QF( MHX7#4W4Q%>480A%7"5,TKM?:K3UGKVB_=7DCV2N4^E_`*`"@`H`*`"@`H`*`"@`H`*`"@` MH`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*` M"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*``X`]`/7@`"@#P#P5\&;_PROC^ M/5OB)?>+Q\1[?6&U:_U#P]H%EX@EFU-9;:VN)-VOBW58-(M9?A[J6H:>FEZ!/?ZCKGPQTNQTOP MKJ=GXCFL7O-'MQ'I>G275E;[HIVAF53%%?7:7)M\@V^1!)^SWJ6+Z1/X?MK)+&XO)/MKW;:BP$BW5M:F...U@ M%HP!TDOPHTN2S\#77PS\93^$]7^'?AQ_!6C:W8PZ7XGL[[PM=6VCR7&A^(]- MNBL.I+(^E:/?QS1S6L\4\0DCD\JXECF-@V.=G_9IT>\NM"UG4/&7B2]\4^'O M$MWX^LO$&=.TGQQJUA!X8\+:9X!D2&+3+K3=:L=$GUU98==L( MC"EW>K=:UL?#OCF_T+6_"OBB' MQ#H?B34+30KXQWESX*TWX;W5A?Z5.XN8C#($'E2&WR# M;Y&ZGPT2*-3#&&CEA+1,;!L6?`_PMC^%=Q;6&C?$'48/#UW-X7B70M50Q,4(9AYL@"M\JY/RGC@T`$MW:VRL MUQ<00*FP.TTT<2IOR$W%V`7=@XSUP<4`,%_8D`K>6I!`*D7,!!!Y!!$G3%`% MN@`H`*`/GG]JS5[S1/V??B;>6#/'<2:"FG>9&2&C@U6_L].NV!7H/LMS,,_[ M5=V6PC/&T%+9-O[DVOQ1\;X@8FKA.#\[JT=)NBH772-2<82_\E;/Y\3P,#C" MD>F.*^Z6WHU^I_&<=)P]5^9_07X]O[[2_P!ES6]1TR\N=/U"R^#\-Q9WMG-) M;7=K<1>&[=HI[>>)E>&5&&592"#TKX6E&,LQC&23BZS33VMS/H?V7FE6KA^` MZ]:A4E1JTLIIRA.+<91DJ$+--:IKNC\ROV2?B5\0]>^/O@72M<\=>+M7TRY. ML_:-.U/7]2O;.X\O1+^6/SK:XN&CDVR(KC(."H(Z5]#FF&H4L%5E"G"+35FH MI-:KJEH?A/AQGN=8SBW+,/BLTQ->A+VMX3K5)Q=J4K74I-.S2Z;H^C/^"B]C M>ZE;?!O3=-L[F_U"]UGQ1:V5C9027-W=W,MMHB106UO$K/-*S$`*JDUP9#*- M-XF4I/M_&C#UL33X=H8>G.K5JU<1&,(1;E*5J2226K=^R.[_9(_ M90_X5?%!\0OB!;0R^/[NW_XE.DMLGA\'VEPF)-[@E)=>FB;;(Z$K`C&)&+,[ M5EF>9_6+T*#Y:,=WUF_\CU?#KP]601AG&;TE+-JB_=TG;_98M=>GM6M[?#LG M>Y][CCV_3I7B+\C]=V\K!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4` M%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0 M`4`%`!0`4`%`!0`4`%`!0`4`(RJRE&`96!5E(R"I&"".X(XH`_-JZ\#?&70$ MU'5M"\->*;K4?A+>ZC\#?AY;++(P\2?#_P`<7&LJ_CBWB-QMNM/T>WUWX;-- M:O\>O!?VSPMX#TKQ!JE[X6_MOP[H7A:\\'0 MGP0/`7A_P7[CLO'0^$4#?$2\UO^P+.:WT"]\$OHD9M?#!UJ2\C M&L-I-MOEB6R:YCA`O9#8-CRGP#$?#FB^'O!OC33=1GU+P]K&HVT_A M87>FZR(_#?PL\/ZGHU]'#HFHSZ;=PVMMXAF+R7^CVZ"RF\NYN)[?R@;?(-OD M>P?\)%^T7IEAH\NL77B>?3]?M-%U/Q;JFF>`-,O-<^']L_B36K'4K3PSH5CI M\KZQ=?V4F@^;%$;>S'B#3?%$G[ M26N^)Y-8\0>$!;:C#X>NOB!XMO[;Q/KOA*&[LUMK6YTFYL[AX3+;*OVQ'*1' M]TAMY6#;RLQT_P`1_LX3 MVC:9']OO&T_3/L6D>)WG2.X=)W\.W$S8-M@&P;'5_!;QIX]\"W.B^%_B)9>* M(/"MKX0\!^'=#B/@^\TNPT+Q#>1>%M`T_P`.3RW&AI/KNLW&H7VH2->:?JNH M6R065P;JWL3:J93;RL&WE8Z;Q;I&@6GQ2\?:E\5/AOXE^(%AK=AX4A^&=_IG M@W5/'-AIVEV.G)'JWABQCTVVN$$>(#XI2_U.6^NCI\=U!J%F?MA%@R6YL&Q MS/A2U^,-O\9[3XNZCX`U.Q\,^-];U'P'JMH^O7%SK>C?#F*-;?X=ZAJ/@;^S M1'HTMCX@T^\U"^N4OYGB@\;W;2J4M\0FWD&WD;UK\'O$,GQ[U"^+0GP=F M6C8-CS'7/`][I?P3\#^$;7X=^*)/&VB7GB5O"Q'@W4_$5PFG6_Q,O;^W$P> M*UNWE^'6JZGI\6DW47B6]PD%I;/+YLF&C)L&Q>\-#XF-9?%&3Q;\.[SX@:KX MEL]6\4:IX?\`$WP^GL[#1?B5%KEEX?\`A_X-T?5K^:6S\8^#K/17BG;4+-'B MM+72Y;YYA)J#Q*`>P>'OV1O@[IF@:'INJ^'_`.U=4T_1],L=2U07U_:C4K^T MLH+>\OQ:P7"QVPN+B.2;RHU5$\S:H``%&WR#;Y'U#0`4`%`'*>./".E^//"/ MB+P;K2L=+\1Z3=Z5=%,>9"MS&5CN(<\>=#,(YDS_`!1+6E&I*A5A5B]:;32_ M,\_-*-!L+G4M*O[4,?)EF^R1R2:;]]OZL?R)Q#P)Q!P]B9TYX&IB,+&7[O$48RG3E&^CO%/D=K74K-,UY M/C?^TMXF\/S>`O[5\6:MH5]I(\/3:);>#X)'FTLVZV8LM]MH?VA1]G58]XD# M_P"UGFH^J9=2FJKC"$XOF3<[:]['9+B;CO&X*64\^*KX:=+V#I0HAZ3\"?V6_VD?\`A)M)\7Z+!_PJF2P,IMO$7B6*W;4+>*ZMWMYS:>'I M8YIKAWMI9%`N(X5^?[PQFN?&YE@/9RI2_?OI&.D=.\NOJ>QPAP!QG''8?,:$ M7D?LF^7$5DE-1E%Q;C2=Y2T=K22/UU\)^!7T:TT>?Q7KUU\0/%6CK=FV\5Z_ MIVDP7MF^H)!'?+H]OIUG#%I5O*EO"I5-\A5,/*P)%?,5:W.Y*E'V%.6\8N]T MMKOJ?T?E^5/"TL,\?B99MC\,IGMC\,8HV\K`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0 M`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`% M`!0`4`%`!0`4`%`!0`4`?&3?M$^,G\3>#K6'1]#70?$?X"\5>-?'%C8V">&/#'ACQC+!X;DFU5+K M2_%'A>TUBRTZP.6:^UC^VEU/2XXX\>:\=L`%:0@`'(S_`!F^(VI^#?"^L>'E M\)Z7XWO?%6C>!?$/PZ\3>&/%=OJVG^,M?GL]5CT4R3:I8S6,.F>"[N35KF^> MUN89X+&6[@Q$RQ@`['PA^T'X9U[Q/XKL-;O+7PEX>M-2N]/\":MXDMK[0K7Q MM;>';N'1?%.NZ5KFJ>5INHV$?B2[BL+>"VD,Q2%;A@R748C`.)3]I6[\1:U+ MX=\+6-IIM]XJ\=Q>$/A;?^)]$U^'3O$7A_2OM-OXN^(5O/OMK?Q!I$.HV5Y; MV5G8W4,CJ;">:18K]3&`-=.\/>.O&=YH7AHZ%\&-7TKPO\1-+M5U1 MM4\1ZS>>)[WPUJ%_X/NWNO+TW3K8+IEW!#=P7CW'VBZ@,L;0))(`>[?##QOX MMU_6-1\.>.;;PXVJ0>$_!GCS3KKPU!?16$.G^+_[8B.DW":C=7+R7NG7FCSH MMXCQK=13I)Y,+*RD`]NZ>WZ4`%`!_3]*`#I[?ITH`*`"@`HV\@"C]`#I[8_# M&*`#_/Y4;>5@#%&WE8&E:UM.PU41/NHJ_P"ZH7^0IW?0!_ MG\J/T`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@` MH`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*` M"@#Q2P^`?@"TN;2ZNK?4[]["_2YM[=]7U*RTVXLM.\2:CXJ\+:1K.D:?=P67 MB"R\.ZMJMVVEG4;>X>W0HI9P@HV#8Z+5_A+X(UF.Z$UA?V5W=^*9_&O]K:-K MFM:)K5KXFNM&C\/7FIZ?JVEW\%S8-<:%']AEA@D2&2&1U:,ER:`,-?A?\./! MG@OQSI^JVL8\$ZAIB3:U9W)F2TT;PIX8T&UL;'3;)[,BZAM=-T_3'NDG61[L MW,T]SYIF<$&P;&KX7^%G@+1[C2/$6EV=_J&J6]WJ7B"SU_6M;UO7-5N]2\0Z M/I^BW6L7UYJ][-+?7Q\/6%EIT,MQN:VM%>W@\I)9`YL&QFQ_#SX6_#N^?Q;- M9O:>?>KHVFIJFHZQK&CZ'=>-_$FGK-8>&M$O;FYM/#ZZQXGN-.:865O"K2F/ M<4C3"FP;'.P?!KX*W>MWVB6MK?-K-EIUIX@TRWMO$WB<-X*T_6?$%YJ-M?\` M@69-2\KPC'=>(]%NYBNCO;Y:Q\ME$"K&38-CH$^`7PKBFTJ1/#D@ATJ"PA;3 MGU?69-*UM]*N[W4=*O?%.ER7[6WBG4K/4=3U&[AN]4CNIEGO))2Y<(4-O(-O M(Z7P-\._!WP__M&#PM;7,1Z58)+J@6RT])W86MLH2/$<>U?D''%<6$G*53$7ES M*,TEY:'?C(1IPPG)!1F: M%/?7$NE:?<7%KX>::>SL7)_%GBC0_#_`(>;R?*U?4M0M[>QN#<)YMNMK,7(NWEB!=%AWLZ@E00,UO0M[2DX+ MN_\`-7/GOX0>,]>7XX_M:)JNKZOJ^C>$+G2[S2-%NM0GFL].AM['4KJ>VTR" M9FBL1-Y"J=B@9P2#BN:A.2Q&*4G=0UBNUD=56E#ZM@^5)OB5XL^'%JFJ:E<7>D^']>.I7 M5[X;BLX;B0IIX98?LJA`JF.9Q_RRX\FC7G#$S4Y\U*3Y%?I*^A[-;#4G@Z;I MP4:T::J.W6.S/I;P9XC\07/[:7Q:\-7&N:K/X=T[X:^';VPT*6^N'TFSO)O[ M!\VZM;!G,,-P_G2[G503YC9/-=,)2^NU87]Q06GW')4IQC@*,U!*4IM7K+I.F:5?Q2WMWKK/:[C>11Z?;R/&$D5"65RQ4%6G$ M8CV$83BE)2:5^R*PN&^L5)0NXN$6TNMUT\NPOBOXM:IXF\):;XC^`%WH_CZT M;7IM+U;5-(@?7H;(VL$RZ-+4YVDF[/1/0T*8@H`*`"@`H`*`"@`H`*`"@`H`*`"@`H M`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`" M@`H`*`"@`H`*`"@`H`*`$(#`J>C`@@$C@C!Y'(X]*`/AZW^"?Q^O=2.G:S\2 M-0A\*7TVJ^';V6Q\3ZFFJV7A3P7#=R_"O7;!TB1QXGU?4K^9O$)\T>;%9V:, M\PBP38-BO:_"G]IUX;S6-3\;6LNOPZ7_`,+#TC28O%&IQZ(GQ>34-*A3P1.R M6J[OABWAWP_'"5:-Q]H\3:C-Y&Y%)`.DT7X6?&K2O#?Q$\+Z_KK^.(-=\):K MX*\)ZCJ/B>:.:UM_$FA:_KFMZ[KD%S:.+F[B\9:M;Z':)'\\6E6%JX<+&T1- M@V.0\4_`KXS6<]MIG@[Q%KO_``@UM%$+?0H?'-]_;5KXAN/"?AS3SXHBU?6K MT.+>PUS3-9F^QM/+'YNL?:H;20@Q4;!L7+[X._&W7/&M[<:Q(=8GCC MN62>PU#PIJ0CAL]02;RQ>"/">D/\2=5\8F\GT;Q#IG@^\T MBYU2_P!!DB,6H7EKKD.G3^99VT"W$1:;IT>HN)-0CL;1+Z12&5[Q M+>-;EU90`0TX<@@`<]!0!>H`*`"@#\H_@I\`?"'QD\>?M$7_`(FUOQQI,NA? M%C5K*U3PEXGN?#\$T=U>:G/(]Y%!"_VB970!7)&U21WKR:6'C6JXCFE*/+/[ M+L>UB,5/#T\)&"A)2I*ZE%/:W:YJ#^'OA!#<:' M=:[J,FLZU-J,VG:5J5N)[Z55>Y9;Z8+&"HPJHHZ4Z,%1Q.(46Y^*'Q: MU?7[_2O!.A:S?6UYX;TN6TN[A+#4;[4[JV==EGIVHPPH(X]ZJS!641@G=MT* M5&C4@JM:3:@GK'YF"C"O6Q%>E-T*$(WDUI+Y+SL M']I&,-'\"T^9:E3E@,2J;F^5P_B._5;=CM/A9Q\:?VW^W[BV_31=9JZ.F(QO MDOT,ZO\`N^7^3_4Z+]ASPSX:7]G_`,->)D\/Z(/$AE\6V[^(%TNQ_MLP_P!I MWL!@?5!!]I\OR56/89,;0!C%5@(0^KQGRKFBY:]=R,PE/ZU*',^1F7]_J>GVUY>KI^G1Q1V=M9W M,\;26*Q-++*K6[1L)'WYRJE<\'1ISHSI?L#W5Q/\`+6UFFDFATOQAXITZQ61R_V>RCNH9TMT)Z1K+<3,%'` MWG%;8!OV%ND9-+[SGS)V\1Z!=:Y>V/D..4>=$FML@C_CY![5RPI.I#&16\:BE#R:.N=7V$\#) M_#*ERR\T_P#(/V=?B5J7Q(^-WQ5\>V$,B>)I_P!GZPAN+SC2M\U;_(K%TE1PU"GM"5:Z]'?]#'_9TT3Q M_P"+?@CK>GZ!\&OACX]M_%NH>)8/%?BCQ-XRCM/%-UK5W+*DC:E:RZ)?V;?`OQ$-E(Y/%&O+JE['=QIJ6-NPNB_"'PKH'Q/\`%OQ;L9-6 M;Q3XSTJPT;5XI[V.324L].CLHK?['9"V5H)MMA!N8RODEN!G@C0A&K.JM)35 MG\@=>;HPH;0@[KN>4:Q^R)\/+GQ#JWB3PGXE^)'PPN]?N'NM.?#_Q#U/QU\4_''B7PJEU%H,_C;Q7'J]O80W<$UO- M`D2:;"S0E)W.POC=AB"140P<*UG\30:A=QW.FDVD?LN^#/A;XH;7_ M``?XI^(EEI/G:K<1>!)O$YN/!,$^KVTMK/(FD-9AY&B24F$R3N4*(26V"HIX M6%*;E"4DM?=O[NO9&E7%U*U-0G"'-&WOV][39-W/1?AC$_"WPE$WG@WPM) MJSZ1?:KJVL3-JU['>W@N]:V?;!'/';Q!81L&Q=AV^IK2E0A1@X1;M=O[S.M7 MG7FJDDE**222TLMM"3X3?"?PO\&O"K>#_",FJR:2VJW^L%M9O$OKP7>I-&UP M!/';PCR08EVKLXYY-.C1C0CR0>EV]0K5YXB:J5+722T\B/X??"/PM\--7\>Z MUX=EU9[SXB^))/%.OC4KQ+J!-3D>ZD9=.C2WB-K:[KN7$9:0X"_-QRJ=&-+G M<-'4ES._=!5KSJJDIV2I1Y5;LK>)_"GB3XC?"^_U^=[K7;7X<^+)-`TK4 M[F0EIIYM.DM;B*&61V=F\CRERY*JN342P<')N$YTG+=0=E]UBXXVK&$82C"J MH;.<;R7ST.[\4?`+P)XR^&&E?"GQ*_B'5=#T3['+IFL7>M3R^*[?4+$RF#53 MKDB%YM0(GG5WDC9765E*8QC6>'A.DJ4FW&.S^U?OEUJ9!0`4`%`!0`4`%` M!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4 M`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`! M0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4` M%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0 M`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`% M`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0` M4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%` M!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4 M`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`! M0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4` M%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0 M`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`% M`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0` M4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%` M!0`4`%`!0`4`%`!0`4`%`'YN?M+?\%+OA;^S!\5-0^$_BOP%X^\0:SIVD:-K M#ZEX?/A_^S7AUJT^UV\2?VCJL$PEC3`?,>,]":`/L+X$?&[P3^T-\,/#?Q4\ M!7,TFA^((9%EL;SR5U30]5M'\G4M#U:&WED2'4+2X&U@KLKH\4T;-%,C,`5? MVAOC?H/[.?PC\4_&'Q-I.KZYHGA0Z*MYI>A?9!JER=;U[3=`M_LWVZXA@_=W M.IPR/OD7Y(WQDX!`.;_9<_:5\+_M4_#67XF^$-!U[PYI,'B/5/#3:?XC_L\Z M@;K2H+&>6X']FW5Q%Y#K?Q!?WF[*-D#C(!]'T`%`!0`4`%`!0`4`%`!0!\.? MM9?MW_#C]D+7_"'A_P`<>$_&GB*Y\8Z1J&L6$OA:/1G@MH-.O8K*6*[_`+4U M2T;S6DE5E\M7&`@-`'W%^SE^VO\`/VH)+K3/AKXGN8?%-A:F]O?!GB:Q.B>)4LT,:S7EK;-++ M!JEI$\B+)+8W%QY>Y?-";AD`^LZ`"@#R'X_^/]7^%/P1^*OQ)T"UL+W6O`O@ M3Q)XHTJSU1)WTZXOM&TR>]MX;Y+::*5K9I(E#B.1&P3A@>:`/D__`()W?M:_ M$#]K?P+\0?$_Q`T7PMHE[X3\6V&@V$/A6VU*VMIK6YT>+4))+I-3U*]=IA+( M5!1T&W@KGD@'Z'4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%` M!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4 M`%`!0`4`%`!0`4`%`!0`4`%`!0`4`?RX_P#!2;PG#X\_X*)Z3X'N+R33H/&, M'P=\+2ZA%<EA'KXL]*:\2%B!,T(NO,V$C=LQD9S0!K_L4_&?Q=^P5^U%XL M_9R^,\SZ;X(\2>)(O#FO2SLZZ5HOB`LD7A7X@Z:\F`-#U.QFM$GEP,VEY;S2 M`-8[0;!L?KE_P5$96_8<^,3(0RL_@`HRD%64_$;PD596'!4CD$4`>4?\$V_'G_@HY^S#^S[X@N_!_B+Q-JOBOQAIKF'5?#G@'38 MM>N-&N%VEK35M1GO;/3K.]4,-]J;QIXSQ)$AH`F_9[_X*)_LU?M&^([?P5X4 MU[6?#'C2^#_V5X9\=:9!HEWK3QH\CP:->VM_>6%]=B)&<6HNDN&"L4B8*2`# M=\4_MW_`/P5\=H/V=O$]WXNT?XAW&OZ#X<@^U^&)X_#\U[XEALI]%N(]:-QL M?3KA=0M5%R$*J[,K8*-M`/=/C;\:O`?[/OPZUCXH?$B]O+'PMHD^F6ERVG63 MZCJ,]UJVH6^FV-M96,;JUQ*UQ<*S`,H6..21B%C)H`X3]G']J_X/_M3:9XFU M/X3ZCK%U'X1OK&PUJUUW2)-%O8)-1MY;BRGBMY)I#-:R+;W""0'AX'4@8&0# MDOBO^W#\#O@[\8-"^!7B>3Q?J'Q$\0CPXNGZ7X9\-OK,`G\4WK6.C6EQ1 M>5=2,J2M&$;9%-&Y.'Q0!P/QY_X*5?LQ_`#Q5?\`@77=9\0^+O%^CR_9]2.WNWF1 M/G:(("P`/L^@#^OPW MI_@_X??\%0O"NB_LWWJS^#+#XX^'=)T1=%OI-1TY-+U(6=MXUTBROQ-)]MT. MW2ZUZT\PRRK]G@/SLJ!B;?(-OD?TJ?'/]H_X.?LX>'8O$GQ;\8V?ARWO&ECT MC2TCFU#Q!KD\0!DAT;1;)'N;S8&7?+L2&+>OFRIN&0#X@\._\%@_V2-;U^'1 MKX?$GPO93W"6\?B/7?"EFVC1;Y!&L]XFC:Y?WUM;\ABXLWVC)8``D`'U'^U? MKVB^)OV-OCMXB\.ZI8ZWH6M?!+QEJ6D:OIES%>:?J-A=>';J6WN[2Y@9DFA> M-E(92?S%`'Y\?\$1>/@_\:?;XDZ1_P"HQ;4`?9_Q^_X*)?LR?L[:]<^$/%/B M?4O$WC.P)34_"_@338]?OM'F"JPMM8O9;RTT[3KS#C=:R7GVA/XX5!&0"G^S M_P#\%'/V9OVA_$UIX(\-:[KGA3QGJ3-'H_A[QWI<&BS:Y.H9OLFCZA9ZA>V% MW?&-2RVC7,4\F"(HG*F@#Z6^,GQV^%/[/_A4^,?BSXPT[PEHS2O;6"W/G7.I MZQ>QQ&8V&BZ191RWFJW8C7<4MX7"*0TA1/F`!^?*?\%DOV33JPL3IGQ9CT\R M^7_;;>$M)-F%SCSS:IXF-[Y/?BV,F/\`EGGB@#]'OAY\6/AW\5?`>G_$SP%X MJTO7O!&HVEQ>1Z]#-]GMK6.Q#G4(M42[$4FE75F8Y!<0W:0O#L.\`ZUK6FR:C"F MMX'B<#='(ZL"0#Z__9\_:B^#/[3F@7VN_"7Q.=5?1W@BU[0=1LY=*\1Z#)=> M;]E_M/2KC)6";R)A%

+_`![_`."C/[,7[/?B"[\'^)?$ M^J>*O&.FN8M5\-^`M-BUZZT:X4*3:ZO?SWMIIUC>J&&^U:\:XC_Y:1+0`?L^ M?\%%OV:?VB_$MMX)\+:[K7A;QI?[QI'AOQUID&B7.N21J\C6VC7UI?WMA?7O ME(SBT^U)<.`WEQ/M.`#[L'Y?IC%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4 M`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`! M0`4`%`!0`4`%`!0`4`%`'\SO[='_`"E-^&O_`&,G[/G_`*=M(H`^Z?\`@JU^ MR'_PM[X=+\(,OI^I:Q!X3T.TU&/TEM)=26Y0_WH%H`^%?V)_P!IC]FC M]GRV\5^)?C)\&_$GQ:^)_B#6G:P\0RV'AK7]/T70A;PR21VD?B6_5DUN\U26 M^FN[SRFD=$M5608E#FWR#;Y'+_M??M$?`KXM>/?`OQ0_9U^&'B+X,>-/#]S) M=^(KI+/0-%L=2U#3KJQOO#.MV%EX;NI8[?6[2XANA+<;(C*OV?=N:(L3;RL& MWE8^PO\`@J5X3U/4]#_9=_;!T:#[!JOB[P7X2L?$EW:Q-&;/Q&FE6GC3PM=L M5QY;@76KP*3@@:="HZ"C]`_0Z_\`X*-_M`2_'CX'?L=^`/!\S7.J_'7^Q?'V MJ:?;$,W]H)!;>$],TV5%)+`^*M7UZ/:>DFC>J\'Z!^AR/_!/]-7_`&1_V^?B M!^S;XLU!6L_%&FZEX5COI0UM;:GJ.C6J>+?"6KQ(YVJ+O1SJ$:\\-?;,Y!HV M#8O_`+)UA+^UI_P4O^*?QRN0UWX5^'6J>(/$VBW$I\R"(:E MI;KJ:H,?-IKL.>:`/E/PI?ZC^Q#^U!XWUO\`:8_9Y_X6C9WE]XEM+9_%%DDM MC<2ZIK/VZ'QMX5O]8T^\TG7)[FV5QF568)?2J9()E8`V#8_7O]B+XS?L#?$K MXJ>(M<^"?@"V^%GQL\7:<);KP]KNBVNF2RV=E$\FI1^!S87=UI-HLB+Y][;Z M:;.:80F5X&CC9@`?K)0!_.3_`,%ON/B7\"?;P-XI]NFOV5`'R[^U5^PS\7/V MZ.E_%=ZM=QW5C,O&/[0N@>(O'WPO^&OC+6?"NG^`=(DM#YVE^#_`+3IVBZ6T%]`M$F\+:];H&TN<7>BWZW']E&5%BN;55D22"20"/?L9#;RL&WE8]$_8O M^(&N^)/^"9_[8/@K5[B>ZL_AUX;\

'VG9W-II/B7P?'6\O7_#&H?:=$GQDVFJW7A6RTVP MO0.YM;J]BN`#D9AY&*`/E+]BO]I7]G#X"3^,?&'QM^$/B7XO_$OQ#J_F:7KL MUCXYEN;PQ2/Y<4"I(N^82&WR#;Y&/^V3 M^T5\`?C3XK\#_$3]G_X5^(_@WXZT&[FG\1W\=EX>T2PU62SELKSPYJUI:>&K MJ1(=>L;R"X+7>R)I$DAW%FA!!MY6#;RL?N3^T-\:/V4=4_9?^"/C#]KO2+/Q M,WC;PMX+\=>'/"-G92W7BR_\1/H6E:GJTNB1V5S:S6&FF6[-M>2S75K:R0W0 M@E9BZH3]`_0^!_'_`.W!^S-\2_A?XD\!^&OV#=:!H%TVFW%A*D=T9DOP1]G(D9E+`@&5_P3JT+Q]\3_V+?VU_ MA1X+O)GUK4K6Q3PG8&[:V1]6U[P[J46H6-O,SA;5M3MM&MK0ME4W2@N0"30! M\U_LL_'?X8?LEMXY^'?[3/[**^+]4UW50+K5O$?A[33XNT2QAMH[&XT%=%\8 MZ>(FTU9HY;E);2YM'9[IRS2JL1C-@V/U.\$_'G]ECP/^Q?\`M%>.OV*].M_" M.O\`AK0;_5M;T;4+&:T\;:%X@\578TG0]4U-KVXN9;W2]/FOV_L]H+NYLX1I M_DH5<.K`'Y3_`+%/[2_[-7[/R>+/$_QF^#WB7XM_$WQ!JY?3_$$UAX;UZPT; M1C"DLXMHO$U^K+K=[J4UW+=7GE/(R)`JR#]X'-OD&WR.=_;"_:(^`_Q?\<>! M/B;^SQ\+O$7P9\;:!5C^L+X3>*KCQS\+OASXTO$\N\\5^!O"GB*\0+L"7 M>LZ'8ZA:7!XD^`)EU*TTC4+FP MC6WU32&G9[R&W:)5B4$NQ?";6W8VG`!_2(Z)+')%*B/&ZM')'(H>-XW4JZ.C M`AD9205(((.#0!_)_P#\%#_V,O$'P#^,MYK7PV\.:S??"OXGF^UG0(-"T^_O MHO#NHF>*XUWPA=1V44GE6D%U)#=62R?*UM-&B[GLW(`/TN_X)R?!^+XE?L!? M$?X0^-]/U30[3QOXN\?Z)<"^L+FROK(7VDZ!]@U6"VO(XFD:UOHX+B,\*SVN MW/!P`?&?P?\`B3\WDME/[IS*)C8-CZ`^&_[='[1W[2'QT\' M:9\"?V8O#]I\++2Y\CQA9>)=)BN+>XTZY>*.XUK6O'HTBWMO#DUA%ODM;:SB MN&F=F1XKLNB1GZ!^A^E?[;GP63XW_LN_$[P'8V22ZS9Z"?$WA&"&(!H_$/A, M?VMIMM:QHOROQZS=H9BBE=3B^`_'_Q#\$?M.?LJ:K;^%CJTT?A30%LHGU/3M.@001VNL/KUO+I/BR. MZ5/M/V^PDAB4SND:S1!"`#YM_9"^%GC']H']NG3_`-H?X??!JZ^"_P`%_#OB MZ3QC+;QV4VG^'=.M[?2'L8M#TB,TUQ;:="+>!;RZ.U(D0.`?T MTT`?SQ?\%JO#?B+7/B1\#Y-$T#6M8CM_!'B=)Y-+TJ_U".!WUZS9$E>T@D6- MRJDA6(.!GI0!^UFM_##PY\8/V?H_A=XRLS-H7B[X;Z/HFH1O'BYL9I-$LS:7 M]NL@!AU"POTM[J(G!26U0]J`/P`_8F\7?%+]AG]J[Q1\&_B'H/B9_ASXF\1+ MX(\6:A::+J]WH=IJ<%R8O!OQ`L)K>VDB^PO'=Q)/*A/^@ZJ[R9>S0*;!L>X? MM??L]?&G]F7]J?\`X;/^!?@O_A8OA'6-3FU_Q?X;ATN36AI6H:I9G3_%5AK& ME6D4ER=`U:*26ZBU*VC3$938-C,\;?\%6?%'C70$\(?`W]EN;1_ MBCJ@CL4O]2TZV\8#2+QRJ22:/X;LO#,3ZI="3(C%[LC0L#)#*%*L`?H3XPN/ MBUXE_P"">_Q8O_BY\.M&\"_%/6?@OXV&L^%/":/K&C:7X]\0#0;C^ MT--NK&Y2VU'P?':)J%G'>11>=):W/ES(1E?,@4$T`?/GPG\;?'/_`()?>+?& MOPZ^+'P/E^)OPI\0ZP=5TOQ'IUGML;BYMX!90Z]X;\1R:9>6T:WFGQ6:W>CW MXAFBDM4(,95S<&P;'O'@C]O']HO]HOXU^"]'_9Z_9@T&U^'=I>>7XNL?$VD1 M7<&HZ?$+SQA\./#WA73O#>KZ7IUEXM-=U*V&G:?&D=M:Z:UT+872V2J_E`),X6&4` MY/\`X)3W_P`0OA?\#/VK?$_A[X9>(?&7B_2;KP9?^&_!!AET2\\27D&F>(46 M"VFU&*/S$B+B62.!9)G2,QQ(TLD:L`53_P`%2[?6_!.K>`_VH/V3#XR\?1+J M>G#3I-%@M-!O_/,J6UMJ.A^*=/N=0T&>(N(I'M&NG8Q^;&(G.%`,/_@F[^QQ MXV\<:/\`M`^(/B3X6U?X??#+XN?#/6?AOH5AJ%I=V-[>2Z[JMMJD&LZ3I^H[ M+B73]"?3[5K:ZG4+-*5$;.$E(`..^$7Q#^./_!,3Q+XR^&7QA^! M_?#S]NO]HS]H_P".7@W2_@)^S%H%I\,+2Z,'C"R\2Z3%WMO##V$>^2UM[..X>:1F62.[W)%&?H'Z'[OPQI#%'%%&D,<2*B11*%CB5 M`%6.-550J*!@``#`'`H`DH`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*` M"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H`*`"@`H M`*`"@`H`*`"@!!_4_P`Z`%H`*`"@#E/&G_(N7_T7_P!#H`K>`?\`D7+?_KO/ M_-:`.TH`*`"@`H`\O^)O_'IIG_7>7_T%*`.[T/\`Y!&G?]>L7_H-`&K0`4`% M`!0`@Z"@#R'PE_R.6K?]O7_HR@#UX?U/\Z`%H`YGQA_R+NI?]<1_Z&M`&=\/ MO^1>K?]?J_^@/0!Z.O6@#Q MWQ?_`,CCIW_;I_Z$*`/9:`.5\9_\BYJ'^ZO_`*&*`*G@#_D7(/\`KXG_`)K0 M!VM`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%` M!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`!0`4`%`'__9 ` end