Health Net 2003 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2003 Health Net annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 119

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2003 2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................................... $234,030 $ 225,580 $ 80,942
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation ................................................ 58,677 68,892 98,695
Asset impairments ......................................................... 16,409 58,817 27,760
Net (gain) loss on sales of businesses and properties and assets held for sale ............ (18,901) 5,000 72,422
Cumulative effect of a change in accounting principle ............................. — 8,941 —
Other changes ............................................................. 5,138 213 4,956
Changes in assets and liabilities, net of effects of dispositions:
Premiums receivable and unearned premiums .................................... 20,163 29,240 (79,658)
Other assets .............................................................. 35,915 39,118 632
Amounts receivable/payable under government contracts ........................... 23,596 (17,032) 286,407
Reserves for claims and other settlements ....................................... 2,737 (26,941) 56,617
Tax benefit on stock options and restricted stock ................................. (15,694) (18,192) (3,330)
Accounts payable and other liabilities .......................................... 17,702 39,881 (824)
Net cash provided by operating activities ........................................... 379,772 413,517 544,619
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ............................................................ 294,976 347,944 246,617
Maturities of investments ........................................................ 572,245 359,528 586,922
Purchases of investments ........................................................ (977,266) (826,033) (1,204,667)
Purchases of property and equipment .............................................. (54,915) (45,314) (69,512)
Cash received from (disposed in) the sale of businesses and properties .................... 90,316 (5,474) (58,997)
Purchases of restricted investments and other ........................................ (30,878) (13,542) (17,941)
Net cash used in investing activities ............................................... (105,522) (182,891) (517,578)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ................... 42,330 49,524 10,449
Proceeds from issuance of notes payable and other financing arrangements ................ 5,680 50,000 601,102
Repurchases of common stock .................................................... (288,318) (159,676) —
Repayment of debt and other noncurrent liabilities .................................... (5,864) (245,410) (777,598)
Net cash used in financing activities ............................................... (246,172) (305,562) (166,047)
Net increase (decrease) in cash and cash equivalents .................................. 28,078 (74,936) (139,006)
Cash and cash equivalents, beginning of year ........................................ 832,793 907,729 1,046,735
Cash and cash equivalents, end of year ............................................. $860,871 $ 832,793 $ 907,729
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid .................................................................. $ 36,296 $ 38,188 $ 46,501
Income taxes paid .............................................................. 126,709 76,647 24,154
Securities reinvested from restricted available for sale investments to restricted cash ......... 82,676 58,156 —
Securities reinvested from restricted cash to restricted available for sale investments ......... 58,672 77,635 —
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES:
Issuance of restricted stock ...................................................... $ 4,661 $ 1,913 $ —
Notes and stocks received on sale of businesses ...................................... — 224 41,000
See accompanying notes to consolidated financial statements.
F-6