Health Net 2002 Annual Report Download - page 56

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54 | HEALTH NET, INC.
Consolidated Statements of Cash Flows
Health Net, Inc.
Year Ended December 31,
(Amounts in thousands) 2002 2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $228,626 $86,529 $ 163,623
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization and depreciation 70,192 98,695 105,899
Loss on assets held for sale and sale of businesses and properties 5,000 76,072 409
Asset impairments 58,817 27,760 –
Cumulative effect of a change in accounting principle 8,941 ––
Other changes 213 3,656 10,035
Changes in assets and liabilities, net of effects of dispositions:
Premiums receivable and unearned premiums 29,489 (79,658) (10,472)
Other assets 42,682 3,672 105,659
Amounts receivable/payable under government contracts (12,686 ) 286,407 (71,087)
Reserves for claims and other settlements (16,564 ) 53,426 87,946
Accounts payable and other liabilities 5,313 (10,075) (25,849)
Net cash provided by operating activities 420,023 546,484 366,163
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments 347,944 246,617 31,912
Maturities of investments 359,528 586,922 272,611
Purchase of investments (826,033 ) (1,204,667 ) (253,141)
Net purchases of property and equipment (45,314 ) (69,512) (86,853)
Cash (paid) received from the sale of businesses and properties (5,474 ) (58,997) 3,505
Net purchases of restricted investments and other (13,542 ) (17,941) (29,943)
Net cash used in investing activities (182,891 ) (517,578 ) (61,909)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases 49,524 10,449 5,794
Proceeds from issuance of notes payable and other financing arrangements 50,000 601,102 250,033
Repurchases of common stock (159,676 ) ––
Repayment of debt and other noncurrent liabilities (245,410 ) (777,598 ) (523,885)
Net cash used in financing activities (305,562 ) (166,047 ) (268,058)
Net (decrease) increase in cash and cash equivalents (68,430 ) (137,141) 36,196
Cash and cash equivalents, beginning of year 909,594 1,046,735 1,010,539
Cash and cash equivalents, end of year $841,164 $909,594 $1,046,735
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid $38,188 $46,501 $ 87,023
Income taxes paid 76,647 24,154 9,694
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of restricted stock $1,913 $–$–
Notes and stocks received on sale of businesses 224 41,000 –
Securities moved from available for sale investments to restricted investments 58,156 ––
Securities moved from restricted investments to available for sale investments 77,635 ––
See accompanying notes to consolidated financial statements.