Health Net 2005 Annual Report Download - page 94

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HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2005 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................... $229,785 $ 42,604 $ 234,030
Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Amortization and depreciation ................................ 33,694 44,288 58,677
Asset impairments ......................................... — 5,916 16,409
Net (gain) on sales of businesses and properties .................. — (1,170) (18,901)
Tax benefit on stock options and restricted stock ................. 21,253 2,464 15,694
Other changes ............................................. 12,550 3,969 5,138
Changes in assets and liabilities, net of effects of dispositions:
Premiums receivable and unearned premiums .................... (46,678) (18,402) 20,163
Other current assets, receivables and noncurrent assets ............. 2,356 (86,499) 35,915
Amounts receivable/payable under government contracts .......... (49,996) (175,345) 23,596
Reserves for claims and other settlements ....................... (129,126) 143,012 2,737
Accounts payable and other liabilities .......................... 117,556 (15,749 ) (13,686)
Net cash provided by (used in) operating activities .................... 191,394 (54,912) 379,772
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ............................................ 399,958 282,524 294,976
Maturities of investments ........................................ 113,682 274,250 572,245
Purchases of investments ........................................ (833,593) (498,355) (977,266)
Sales of property and equipment .................................. 79,845 9,670 37
Purchases of property and equipment .............................. (48,846) (47,616) (54,952)
Cash received from the sale of businesses and properties ............... 1,949 11,112 90,316
Sales (Purchases) of restricted investments and other .................. 42,959 (45,827) (30,878 )
Net cash used in investing activities ............................... (244,046) (14,242) (105,522)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases . . . 73,484 19,091 42,330
Proceeds from issuance of notes payable and other financing
arrangements ............................................... — — 5,680
Repurchases of common stock .................................... (449) (88,706) (288,318)
Repayment of debt and other noncurrent liabilities .................... — — (5,864)
Net cash provided by (used in) financing activities .................... 73,035 (69,615) (246,172)
Net increase (decrease) in cash and cash equivalents .................. 20,383 (138,769) 28,078
Cash and cash equivalents, beginning of year ........................ 722,102 860,871 832,793
Cash and cash equivalents, end of year ............................. 742,485 $ 722,102 $ 860,871
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid .................................................. $ 41,120 $ 30,722 $ 36,296
Income taxes paid .............................................. 96,324 110,316 126,709
Securities reinvested from restricted available for sale investments to
restricted cash ............................................... 11,985 35,747 82,676
Securities reinvested from restricted cash to restricted available for sale
investments ................................................. 19,283 75,992 58,672
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Issuance of restricted stock ...................................... $ 869 $ 2,388 $ 4,661
Notes received on sale of businesses ............................... — 3,000 —
See accompanying notes to consolidated financial statements.
F-6