Aetna 2005 Annual Report Download - page 41

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37
CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31,
(Millions) 2005 2004 2003
Cash flows from operating activities:
Net income $ 1,634.5 $ 2,245.1 $ 933.8
Adjustments to reconcile net income to net cash
provided by operating activities:
Discontinued operations – (1,030.0) –
Physician class action settlement charge – – 115.4
Depreciation and amortization 204.4 182.2 199.6
Amortization of net investment premium 22.6 45.5 54.2
Net realized capital gains (32.3) (70.8) (65.2)
Changes in assets and liabilities:
Decrease (increase) in accrued investment income 13.7 22.9 (7.2)
(Increase) decrease in premiums due and other receivables (95.6) 34.0 150.1
Net change in income taxes 596.5 350.9 16.3
Net change in other assets and other liabilities (251.6) (621.7) (369.4)
Decrease in health care and insurance liabilities (223.7) (366.3) (597.2)
Other, net (43.9) (21.2) (59.8)
Net cash provided by operating activities of continuing operations 1,824.6 770.6 370.6
Discontinued operations 68.8 666.2 –
Net cash provided by operating activities 1,893.4 1,436.8 370.6
Cash flows from investing activities:
Proceeds from sales and investment maturities of:
Debt securities available for sale 10,604.7 9,471.7 12,623.6
Other investments 1,302.9 2,495.9 3,113.2
Cost of investments in:
Debt securities available for sale (10,108.5) (9,469.3) (13,250.3)
Other investments (1,130.0) (2,231.1) (2,386.6)
Increase in property, equipment and software (271.6) (190.3) (210.8)
Cash used for acquisitions, net of cash acquired (1,107.6) (9.5) (53.5)
Net cash (used for) provided by investing activities (710.1) 67.4 (164.4)
Cash flows from financing activities:
Deposits and interest credited for investment contracts 41.6 54.5 94.4
Withdrawals of investment contracts (54.5) (423.2) (502.4)
Common shares issued under benefit plans 271.3 316.0 293.6
Common shares repurchased (1,650.0) (1,493.0) (445.2)
Dividends paid to shareholders (11.4) (5.9) (6.1)
Other, net 16.3 10.0 (10.0)
Net cash used for financing activities (1,386.7) (1,541.6) (575.7)
Net decrease in cash and cash equivalents (203.4) (37.4) (369.5)
Cash and cash equivalents, beginning of period 1,396.0 1,433.4 1,802.9
Cash and cash equivalents, end of period $ 1,192.6 $1,396.0 $ 1,433.4
The foregoing financial information should be read in conjunction with the financial statements and related notes as presented in Aetna Inc.’s
2005 Annual Report, Financial Report to Shareholders.