for a 60,000 square-foot facility in Brookfield, Wisconsin. Cobalt intends to sub-lease this facility.
the Company is a government contractor and processes Medicare claims for
effective March 31, 2001 with AMSG continuing to be accounted for using the
business, the re-pricing of self-funded products and new government fee based
specialty risk members in 2001 increased to 1,119,226 from 145,955 in
attributable to significant growth in the volume of Medicare claims processed,
administrative fees in 2001 increased 13.8% to $28.1 million from $24.7 million
improvement in 2001 is primarily the result of the acquisition of UWS at the
specialty risk products reflects changes in the mix of specialty risk business
income of $0.4 million for the first quarter of 2001, and other affiliate net
net results improved in 2001 to a loss of $22.3 million compared to a loss of
members in 2000 increasing 15.4% to 255,289 from 221,266 in 1999, combined with
premium in 2000 increased 7.6% to $29.9 million from $27.8 million in
were $0.5 million in 2000 compared to realized gains of $8.0 million in
to 12.0%, compared with 14.3% for 1999, despite the fact that the ratio for
risk products SGA ratio in 2000 improved to 22.9% from 25.6% in 1999. The expense ratio for Government services in
of a loss of $7.6 million from UWS, offset by a gain of $1.1 million from
$20.6 million loss before income taxes on insured business, which experienced
operating losses, BCBSUW did not have current income tax expense or benefit in
insurers are also subject to compulsory and security surplus requirements based
the collateral for approximately $92 million borrowed by Cobalt from BCBSUW and
to sell insurance products in Wisconsin and revocation of the Company’s license
to operate as a Blue Cross/Blue Shield franchisee. See “Cautionary Factors”.
tax asset would increase income or reduce recorded goodwill in the period such
The most significant assumptions, which vary by class of business, used
handling the Company’s defense in these matters and is based upon a combination
tax positions, the Company believes it has appropriately accrued for probable
its Association license, BCBSUW is required to maintain a minimum level of
BCBSUW, including the right to use the Blue Cross and Blue Shield trademarks,
acquisition and other investment opportunities that may arise in the future,
held in the voting trust as directed by a majority of Cobalt’s independent
citizens of the State of Wisconsin by funding health care initiatives developed
develop and deliver new products and services and adapt existing products and
deferred income taxes, is included in accumulated other comprehensive income in
improvements and 10 to 40 years for buildings and building improvements. Any gain or loss realized upon retirement or
Management believes that based on its review of the impact of adopting
to be separately maintained as collateral for the loans. Securities with a cost
Reinsured reserves are classified as assets on the balance sheet. There were no reinsured reserve balances as
corporate holding company with a commercial bank for $7,500,000. The term note had an adjustable rate of
accompanying consolidated statement of operations. Interest income subsequent to March 31, 2001 has been eliminated
than not” that such tax benefits will be realized. A full valuation allowance was recorded at the date of the
1997. Interest is accrued based on the quarterly prime rate, with interest
as of December 31, 2001 and 2000 was $3,000,000 and $4,628,000,
collateralized note obligation due from Cobalt, which is eliminated in the
value of UWIC and UHLIC, which are wholly-owned subsidiaries of Compcare.
exceeding the minimum standards to maintain its license by $15,790,000 and
periods. No benefits will be provided for individuals hired after the effective
activity for all plans as of December 31, 2001 (in thousands, except exercise
opinion, the existing models do not necessarily provide a reliable single
date of the grant was $3.69 per share for 2001. The fair value of options granted in which the exercise price was
taxes. The accounting policies of the reportable segments are the same as those