Aetna 2015 Annual Report Download - page 22

Annual Report- Page 16
Based on our overall exposure to interest rate risk and equity price risk, we believe that these changes in market
rates and prices would not materially affect our consolidated near-term financial position, operating results or cash
flows as of December 31, 2015.
We also face certain operational risks, including risks related to information security, including cybersecurity. We
have experienced a variety of cyber attacks, and we expect to continue to experience cyber attacks going forward.
Among other things, we have experienced automated attempts to gain access to our public facing networks, brute
force, SYN flood and distributed denial of service attacks, attempted virus infections, mass reconnaissance
attempts, malware or injection attempts, phishing, PHP injection and cross-site scripting. We are dedicating and will
continue to dedicate significant resources and incur significant expenses to maintain and update on an ongoing basis
our systems and processes that are designed to mitigate the information security risks we face and protect the
security of our computer systems, software, networks and other technology assets against attempts by unauthorized
parties to obtain access to confidential information, destroy data, disrupt or degrade service, sabotage systems or
cause other damage. The impact of the cyber attacks we have experienced through December 31, 2015 has not been
material to our operations or results of operations. Our Board and Audit Committee are regularly informed
regarding our information security policies, practices and status.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
We meet our operating cash requirements by maintaining liquidity in our investment portfolio, using overall cash
flows from premiums, fees and other revenue, deposits and income received on investments, issuing commercial
paper and entering into repurchase agreements from time to time. We monitor the duration of our investment
portfolio of highly marketable debt securities and mortgage loans, and execute purchases and sales of these
investments with the objective of having adequate funds available to satisfy our maturing liabilities. Overall cash
flows are used primarily for claim and benefit payments, operating expenses, share and debt repurchases, repayment
of debt, acquisitions, contract withdrawals and shareholder dividends. We have committed short-term borrowing
capacity of $2.0 billion through a revolving credit facility agreement that expires in March 2020.
Presented below is a condensed statement of cash flows for each of the last three years. On May 7, 2013, we
completed the acquisition of Coventry, which is reflected in our cash flows for the full-year in both 2015 and 2014
and on and after the Coventry Acquisition Date for 2013. We present net cash flows used for operating activities
and net cash flows provided by investing activities separately for our Large Case Pensions segment because
changes in the insurance reserves for the Large Case Pensions segment (which are reported as cash used for
operating activities) are funded from the sale of investments (which are reported as cash provided by investing
activities). Refer to the Consolidated Statements of Cash Flows on page 86 for additional information.
(Millions) 2015 2014 2013
Cash flows from operating activities
Health Care and Group Insurance $ 4,388.0 $ 3,601.3 $ 2,625.0
Large Case Pensions (521.9) (228.5) (346.3)
Net cash provided by operating activities 3,866.1 3,372.8 2,278.7
Cash flows from investing activities
Health Care and Group Insurance (1,663.4) (2,453.1) (2,261.4)
Large Case Pensions 635.9 323.4 341.6
Net cash used for investing activities (1,027.5) (2,129.7) (1,919.8)
Net cash used for financing activities (1,734.7) (1,235.0) (1,525.8)
Net increase (decrease) in cash and cash equivalents $ 1,103.9 $ 8.1 $ (1,166.9)