Health Net 2007 Annual Report Download - page 102

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2007 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................ $ 193,697 $ 329,313 $ 229,785
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and depreciation ..................................... 42,982 25,591 33,694
Debt refinancing charge .......................................... — 70,095 —
Share-based compensation expense ................................. 24,298 20,115 —
Deferred income taxes ............................................ 98,629 51,271 2,050
Excess tax benefit on share-based compensation ....................... (17,987) (11,889) —
Other changes .................................................. (7,955) 13,624 12,550
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Premiums receivable and unearned premiums ......................... (74,184) 11,907 (46,678)
Other current assets, receivables and noncurrent assets .................. (53,475) (178,337) 306
Amounts receivable/payable under government contracts ................ 26,223 (86,925) (49,996)
Reserves for claims and other settlements ............................ 251,636 8,624 (129,126)
Accounts payable and other liabilities ............................... 121,618 24,548 138,809
Net cash provided by operating activities ................................. 605,482 277,937 191,394
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ................................................. 807,649 464,787 399,958
Maturities of investments ............................................. 213,833 113,125 113,682
Purchases of investments ............................................. (1,180,854) (635,611) (833,593)
Sales of property and equipment ........................................ 96,748 4,242 79,845
Purchases of property and equipment .................................... (64,850) (72,807) (48,846)
Cash (paid) received related to the (acquisition) sale of businesses and
properties ........................................................ (80,277) (73,999) 1,949
Sales (purchases) of restricted investments and other ........................ (22,444) 15,384 42,959
Net cash used in investing activities ..................................... (230,195) (184,879) (244,046)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ......... 72,622 70,294 73,484
Excess tax benefit on share-based compensation ........................... 17,987 11,889 —
Repurchases of common stock ......................................... (232,220) (253,502) (449)
Borrowings under financing arrangements ................................ 668,535 497,334 —
Repayment of borrowings under financing arrangements .................... (600,000) (465,045) —
Other ............................................................. — 8,293 —
Net cash (used in) provided by financing activities ......................... (73,076) (130,737) 73,035
Net increase (decrease) in cash and cash equivalents ........................ 302,211 (37,679) 20,383
Cash and cash equivalents, beginning of year .............................. 704,806 742,485 722,102
Cash and cash equivalents, end of year ................................... $1,007,017 $ 704,806 $ 742,485
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ........................................................ $ 42,495 $ 51,994 $ 41,120
Income taxes paid ................................................... 183,843 74,003 96,324
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Imputed interest discount and deferred revenue ............................ $ 27,637 — —
Reclassification of certain properties held for sale .......................... — $ 21,772 —
Issuance of restricted stock ............................................ — — $ 869
See accompanying notes to consolidated financial statements.
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