Health Net 2006 Annual Report Download - page 100

Download and view the complete annual report

Please find page 100 of the 2006 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 165

  • 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
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2006 2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ............................................................ $329,313 $ 229,785 $ 42,604
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
Amortization and depreciation ......................................... 25,591 33,694 44,288
Asset impairments ................................................... — — 5,916
Net (gain) on sales of businesses and properties ............................ — — (1,170)
Debt refinancing charge .............................................. 70,095 — —
Share-based compensation expense ..................................... 20,115 — —
Other changes ...................................................... 13,624 12,550 3,969
Changes in assets and liabilities, net of effects of dispositions:
Premiums receivable and unearned premiums ............................. 11,907 (46,678) (18,402)
Other current assets, receivables and noncurrent assets ...................... (127,066) 2,356 (86,499)
Amounts receivable/payable under government contracts .................... (86,925) (49,996) (175,345)
Reserves for claims and other settlements ................................ 8,624 (129,126) 143,012
Accounts payable and other liabilities ................................... 12,659 138,809 (13,285)
Net cash provided by (used in) operating activities ............................. 277,937 191,394 (54,912)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ..................................................... 464,787 399,958 282,524
Maturities of investments ................................................. 113,125 113,682 274,250
Purchases of investments ................................................. (635,611) (833,593) (498,355)
Sales of property and equipment ............................................ 4,242 79,845 9,670
Purchases of property and equipment ........................................ (72,807) (48,846) (47,616)
Cash (paid) received related to the (acquisition) sale of businesses and properties ..... (73,999) 1,949 11,112
Sales (Purchases) of restricted investments and other ........................... 15,384 42,959 (45,827)
Net cash used in investing activities ......................................... (184,879) (244,046) (14,242)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ............. 70,294 73,484 19,091
Excess tax benefit on share-based compensation ............................... 11,889 — —
Repurchases of common stock ............................................. (253,502) (449) (88,706)
Proceeds from issuance of bridge and term loans ............................... 497,334 — —
Repayment of senior notes and debt refinancing costs ........................... (465,045) — —
Other ................................................................. 8,293 — —
Net cash (used in) provided by financing activities ............................. (130,737) 73,035 (69,615)
Net increase (decrease) in cash and cash equivalents ............................ (37,679) 20,383 (138,769)
Cash and cash equivalents, beginning of year .................................. 742,485 722,102 860,871
Cash and cash equivalents, end of year ....................................... $704,806 $ 742,485 $ 722,102
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ............................................................ $ 51,994 $ 41,120 $ 30,722
Income taxes paid ....................................................... 74,003 96,324 110,316
Securities reinvested from restricted available for sale investments to restricted cash . . 22,402 11,985 35,747
Securities reinvested from restricted cash to restricted available for sale investments . . 18,459 19,283 75,992
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Reclassification of certain properties held for sale (see Note 5) .................... $ 21,772 — —
Issuance of restricted stock ................................................ — $ 869 $ 2,388
Notes received on sale of businesses ......................................... — — 3,000
See accompanying notes to consolidated financial statements.
F-6