Health Net 2004 Annual Report Download - page 59
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•
Net increase in purchases of restricted investments of $14.9 million as required under our old TRICARE contracts in
connection with the run-out claims, and
2003 Compared to 2002
•
Net decrease in cash proceeds from divestitures of $79.2 million.
Net cash from investing activities increased by $77.4 million for the year ended December 31, 2003 compared to the same
period in 2002 due to the following:
•
An increase in maturities and sales of available for sale securities of $159.7 million primarily due to an increase in
prepayments of mortgage-backed securities and called security holdings attributable to a decline in interest rates, and
•
Cash proceeds of $90.3 million from the sale of our employer services subsidiary and dental and vision subsidiaries in
2003,
p
artiall
y
o
ff
set b
y
Financing Activities
•
An increase in the purchase of available for sale securities and restricted investments of $168.6 million.
Increases in cash flows from financing activities for the year ended December 31, 2004 compared to the same period in 2003
and for the year ended December 31, 2003 compared to the same period in 2002 are as follows:
2004 Compared to 2003
2004
2003
Change
2004 over
2003
2002
Change
2003 over
2002
(
Dollars in millions
)
Net cash used in financing activities
$(69.6)
$(246.2)
$176.6
$(305.6)
$59.4
Net cash used in financing activities decreased by $176.6 million for the year ended December 31, 2004 compared to the same
period in 2003 due to a decrease in repurchases of our common stock. We repurchased 3,179,400 shares of our common stock for
$83.7 million in 2004 under our stock repurchase program compared to 10,129,655 shares for $288.3 million in 2003. In addition, we
paid $5.0 million for 150,000 shares repurchased in 2003 and settled in 2004. Cash proceeds from the exercise of stock options and
employee stock purchases declined by $23.2 million.
2003 Compared to 2002
Net cash used in financing activities was $246.2 million for the year ended December 31, 2003 as compared to $305.6 million
for the same period in 2002. Under our stock repurchase program more fully described above, we repurchased and paid for
10,129,655 shares of our common stock for $288.3 million during the year ended December 31, 2003 compared to 6,519,600 shares
for $159.7 million during the same period in 2002. We paid down the entire outstanding balance of our revolving credit facility as of
December 31, 2002. Accordingly, the repayment of our credit facility decreased by $195 million, net of $50 million in borrowings,
during the year ended December 31, 2003 as compared to the same period in 2002.
Stock Repurchase Program
In April 2002, our Board of Directors authorized us to repurchase up to $250 million (net of exercise proceeds and tax benefits
from the exercise of employee stock options) of our common stock under a stock
56