Anthem Blue Cross 2003 Annual Report Download - page 32

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page 30 ANTHEM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions) Year Ended December 31
2003 2002 2001
Operating activities
Net income $ 774.3 $ 549.1 $ 342.2
Adjustments to reconcile net income to net cash
provided by operating activities:
Net realized gains on investments (17.8) (30.4) (60.8)
Loss (gain) on sale of subsidiary operations 1.6 (0.7) (25.0)
Depreciation, amortization and accretion 245.0 157.0 120.5
Deferred income taxes 64.4 63.3 71.4
Loss on sale of assets 0.4 2.2 3.1
Changes in operating assets and liabilities,
net of effect of purchases and divestitures:
Restricted cash and investments (9.7) 4.7 8.1
Receivables (251.8) (107.3) (28.0)
Other assets 10.4 (5.5) (16.7)
Policy liabilities 97.4 228.5 192.7
Unearned income 84.6 47.7 29.7
Accounts payable and accrued expenses 23.8 37.0 27.8
Other liabilities 59.3 20.2 (48.8)
Income taxes 61.5 25.3 38.4
Cash provided by operating activities 1,143.4 991.1 654.6
Investing activities
Purchases of investments (5,120.7) (5,059.8) (3,957.3)
Sales or maturities of investments 4,115.0 4,546.2 3,484.6
Purchases of subsidiaries, net of cash acquired (3.5) (789.6) (4.1)
Sales of subsidiaries, net of cash sold (3.1) 0.9 45.0
Proceeds from sale of property and equipment 9.4 13.7 4.1
Purchases of property and equipment (110.7) (123.3) (70.4)
Cash used in investing activities (1,113.6) (1,411.9) (498.1)
Financing activities
Proceeds from long term borrowings —938.5 —
Payments on long term borrowings (100.0) ——
Repurchase and retirement of common stock (217.2) (256.2) —
Proceeds from employee stock purchase plan and
exercise of stock options 57.0 30.9 —
Costs related to the issuance of common stock
for the Trigon acquisition —(4.1) —
Net proceeds from common stock issued in
the initial public offering —— 1,890.4
Net proceeds from issuance of Equity Security Units —— 219.8
Payments and adjustments to payments to eligible
statutory members in the demutualization —0.2 (2,063.6)
Cash provided by (used in) financing activities (260.2) 709.3 46.6
Change in cash and cash equivalents (230.4) 288.5 203.1
Cash and cash equivalents at beginning of year 694.9 406.4 203.3
Cash and cash equivalents at end of year $ 464.5 $ 694.9 $ 406.4
The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes included in
Anthem’s 2003 Annual Report on Form 10-K.