Aetna 2007 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2007 Aetna annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 32

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32

(MILLIONS) 2007 2006 2005
Cash fl ows from operating activities:
Net income $ 1,831.0 $ 1,701.7 $ 1,573.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 321.5 270.4 204.4
Stock-based compensation expense 89.4 73.7 94.1
Equity in earnings of affi liates, net (88.3 ) (102.2 ) (44.2 )
Net realized capital losses (gains) 73.7 (32.2 ) (32.3 )
Amortization of net investment premium 3.6 18.7 22.6
Physician class action settlement insurance-related charge – 72.4 –
Discontinued operations – (16.1 ) –
Changes in assets and liabilities:
Accrued investment income (6.1 ) 1.8 13.7
Premiums due and other receivables (91.7 ) (61.2 ) (95.6 )
Income taxes 28.8 29.9 390.5
Other assets and other liabilities (119.0 ) (205.7 ) (251.6 )
Health care and insurance liabilities 23.8 (106.1 ) (223.7 )
Other, net (1.2 ) (6.5 ) .3
Net cash provided by operating activities of continuing operations 2,065.5 1,638.6 1,651.5
Discontinued operations – 49.7 68.8
Net cash provided by operating activities 2,065.5 1,688.3 1,720.3
Cash fl ows from investing activities:
Proceeds from sales and investments 10,577.0 11,837.6 11,907.6
Cost of investments (10,642.2 ) (11,939.5 ) (11,238.5 )
Increase in property, equipment and software (400.4 ) (290.5 ) (271.6 )
Cash used for acquisitions, net of cash acquired (572.2 ) (160.9 ) (1,107.6 )
Net cash used for investing activities (1,037.8 ) (553.3 ) (710.1 )
Cash fl ows from fi nancing activities:
Proceeds from issuance of long-term debt, net of issuance costs 663.9 1,978.9 –
Net issuance of short-term debt 85.5 45.0 –
Repayment of long-term debt – (1,150.0 ) –
Deposits and interest credited for investment contracts 9.7 28.2 41.6
Withdrawals of investment contracts (21.2 ) (211.8 ) (54.5 )
Common shares issued under benefi t plans 170.8 115.8 271.3
Stock-based compensation tax benefi ts 153.2 89.6 173.1
Common shares repurchased (1,695.6 ) (2,322.5 ) (1,650.0 )
Dividends paid to shareholders (20.0) (20.8 ) (11.4 )
Other, net – – 16.3
Net cash used for fi nancing activities (653.7 ) (1,447.6 ) (1,213.6 )
Net increase (decrease) in cash and cash equivalents 374.0 (312.6 ) (203.4 )
Cash and cash equivalents, beginning of period 880.0 1,192.6 1,396.0
Cash and cash equivalents, end of period $ 1,254.0 $ 880.0 $ 1,192.6
Consolidated Statements of Cash Flows
The foregoing fi nancial information should be read in conjunction with the fi nancial statements and related notes as presented in Aetna’s 2007
Annual Report, Financial Report to Shareholders.
23
For the Years Ended December 31
,