Health Net 2010 Annual Report Download - page 103

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2010 2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ................................................... $ 204,243 $ (49,004) $ 95,003
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
Amortization and depreciation ..................................... 34,800 53,042 59,878
Asset and investment impairment charges ............................ 6,000 187,263 47,869
Loss (adjustment to loss) on sale of business .......................... (41,959) 105,931 0
Share-based compensation expense ................................. 33,112 11,714 24,065
Deferred income taxes ........................................... 37,164 (1,913) 15,420
Excess tax benefit on share-based compensation ....................... (571) (23) (815)
Net realized (gain) loss on investments .............................. (23,019) (45,319) 4,331
Other changes .................................................. (21,413) 26,690 (10,307)
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Premiums receivable and unearned premiums ......................... 12,548 (26,644) (39,271)
Other current assets, receivables and noncurrent assets .................. (6,357) 164,740 (153,310)
Amounts receivable/payable under government contracts ................ 27,404 (8,602) (50,431)
Reserves for claims and other settlements ............................ (9,631) (162,735) 37,717
Accounts payable and other liabilities ............................... 19,101 (7,607) (189,111)
Net cash provided by (used in) operating activities ......................... 271,422 247,533 (158,962)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ................................................. 1,118,957 1,785,741 1,219,291
Maturities of investments ............................................. 199,425 191,597 257,149
Purchases of investments ............................................. (1,582,851) (1,923,692) (1,473,664)
Sales of property and equipment ....................................... 19 3,847 4
Purchases of property and equipment ................................... (34,791) (25,342) (95,641)
Cash divested related to the sale of businesses, net of cash received ........... 0 (173,422) 0
Purchase price adjustment on sale of Northeast Health Plans ................. 76,126 0 0
Sales (purchases) of restricted investments and other ....................... 22,522 6,097 24,990
Net cash used in investing activities .................................... (200,593) (135,174) (67,871)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ........ 3,644 1,354 6,636
Excess tax benefit on share-based compensation ........................... 571 23 815
Repurchases of common stock ......................................... (236,847) (14,150) (243,172)
Borrowings under financing arrangements ............................... 100,000 80,000 520,000
Repayment of borrowings under financing arrangements .................... (316,771) (164,984) (396,262)
Net increase (decrease) in checks outstanding, net of deposits ................ 45,909 0 0
Net cash used in financing activities .................................... (403,494) (97,757) (111,983)
Net (decrease) increase in cash and cash equivalents ....................... (332,665) 14,602 (338,816)
Cash and cash equivalents, beginning of year ............................. 682,803 668,201 1,007,017
Cash and cash equivalents, end of year .................................. $ 350,138 $ 682,803 $ 668,201
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ....................................................... $ 31,074 $ 27,904 $ 31,330
Income taxes paid ................................................... 96,319 71,396 97,715
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Imputed interest discounts and deferred revenues .......................... $ 0 $ 31,581 $ 0
Accretion of deferred revenues into earnings ............................. 47,273 7,664 10,228
Amortization of discounts into earnings ................................. 22,037 8,790 10,228
See accompanying notes to consolidated financial statements.
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