Anthem Blue Cross 2010 Annual Report Download - page 32

Years Ended December 31
(In millions) 2010 2009 2008
Operating activities
Net income $ 2,887.1 $ 4,745.9 $ 2,490.7
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized gains on investments (194.1) (56.4) (28.7)
Other-than-temporary impairment losses recognized in income 39.4 450.2 1,207.9
Loss on disposal of assets 1.9 16.4 7.2
Gain on sale of business —(3,792.3) —
Deferred income taxes 101.8 61.3 (481.4)
Amortization, net of accretion 497.7 446.4 466.3
Depreciation expense 103.1 107.1 105.4
Impairment of goodwill and other intangible assets 21.1 262.5 141.4
Impairment of property and equipment 95.3 — —
Share-based compensation 136.0 153.6 156.0
Excess tax benefits from share-based compensation (28.1) (9.6) (16.0)
Changes in operating assets and liabilities, net of
effect of business combinations and divestitures:
Receivables, net 109.7 (484.2) (558.7)
Other invested assets, current 5.1 (62.5) 103.3
Other assets (320.1) (119.3) (340.2)
Policy liabilities (330.7) (748.2) 194.9
Unearned income (158.6) (27.3) (26.7)
Accounts payable and accrued expenses (58.2) 952.8 (106.3)
Other liabilities (208.4) (248.8) (797.0)
Income taxes (1,239.8) 1,391.4 (47.3)
Other, net (43.5) (0.1) 64.6
Net cash provided by operating activities 1,416.7 3,038.9 2,535.4
Investing activities
Purchases of fixed maturity securities (10,567.2) (7,186.8) (5,691.2)
Proceeds from fixed maturity securities:
Sales 7,215.1 4,096.6 5,194.9
Maturities, calls and redemptions 3,321.7 1,551.7 1,669.6
Purchases of equity securities (350.9) (318.9) (1,327.5)
Proceeds from sales of equity securities 197.9 577.3 1,083.1
Purchases of other invested assets (91.4) (49.0) (145.0)
Proceeds from sales of other invested assets 34.5 3.5 32.8
Changes in securities lending collateral (504.8) 132.4 325.1
Purchases of subsidiaries, net of cash acquired (0.3) (66.3) (197.7)
Proceeds from sales of subsidiaries, net of cash sold —4,672.3 5.0
Purchases of property and equipment (451.4) (378.4) (345.6)
Proceeds from sale of property and equipment 0.8 0.4 12.7
Other, net (75.5) (32.0) —
Net cash (used in) provided by investing activities (1,271.5) 3,002.8 616.2
Financing activities
Net repayments of commercial paper borrowings (164.4) (397.0) (900.6)
Proceeds from long-term borrowings 1,088.5 990.3 525.0
Net proceeds from (repayments of) short-term borrowings 100.0 (98.0) 98.0
Repayment of long-term borrowings (481.7) (919.3) (38.7)
Changes in securities lending payable 504.9 (132.4) (325.1)
Changes in bank overdrafts (28.0) (344.1) 44.8
Repurchase and retirement of common stock (4,360.3) (2,638.4) (3,276.2)
Proceeds from exercise of employee stock options and employee stock purchase plan 143.6 126.5 121.2
Excess tax benefits from share-based compensation 28.1 9.6 16.0
Net cash used in financing activities (3,169.3) (3,402.8) (3,735.6)
Effect of foreign exchange rates on cash and cash equivalents (3.2) (6.7) —
Change in cash and cash equivalents (3,027.3) 2,632.2 (584.0)
Cash and cash equivalents at beginning of year 4,816.1 2,183.9 2,767.9
Cash and cash equivalents at end of year $ 1,788.8 $ 4,816.1 $ 2,183.9
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in WellPoint’s 2010 Annual Report on Form 10-K.
Consolidated Statements of Cash Flow
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