Health Net 2009 Annual Report Download - page 100

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2009 2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income ................................................ $ (49,004) $ 95,003 $ 193,697
Adjustments to reconcile net (loss) income to net cash provided by (used in)
operating activities:
Amortization and depreciation .................................. 53,042 59,878 42,982
Asset and investment impairment charges ......................... 187,263 47,869 —
Loss on sale of business ....................................... 105,931 — —
Share-based compensation expense .............................. 11,714 24,065 24,298
Deferred income taxes ......................................... (1,913) 15,420 (98,629)
Excess tax benefit on share-based compensation .................... (23) (815) (17,987)
Net realized (gain) loss on investments ............................ (45,319) 4,331 (4,957)
Other changes ............................................... 26,690 (10,307) (2,998)
Changes in assets and liabilities, net of effects of acquisitions and
dispositions:
Premiums receivable and unearned premiums ...................... (26,644) (39,271) (74,184)
Other current assets, receivables and noncurrent assets ............... 164,740 (153,310) 143,783
Amounts receivable/payable under government contracts ............. (8,602) (50,431) 26,223
Reserves for claims and other settlements ......................... (162,735) 37,717 251,636
Accounts payable and other liabilities ............................ (7,607) (189,111) 121,618
Net cash provided by (used in) operating activities ...................... 247,533 (158,962) 605,482
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments .............................................. 1,785,741 1,219,291 807,649
Maturities of investments .......................................... 191,597 257,149 213,833
Purchases of investments .......................................... (1,923,692) (1,473,664) (1,180,854)
Sales of property and equipment ..................................... 3,847 4 96,748
Purchases of property and equipment ................................. (25,342) (95,641) (64,850)
Cash divested related to the sale of businesses, net of cash received ......... (173,422) — —
Cash paid related to the acquisition of businesses ....................... — — (80,277)
Sales (purchases) of restricted investments and other ..................... 6,097 24,990 (22,444)
Net cash used in investing activities .................................. (135,174) (67,871) (230,195)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ...... 1,354 6,636 72,622
Excess tax benefit on share-based compensation ........................ 23 815 17,987
Repurchases of common stock ...................................... (14,150) (243,172) (232,220)
Borrowings under financing arrangements ............................. 80,000 520,000 668,535
Repayment of borrowings under financing arrangements ................. (164,984) (396,262) (600,000)
Net cash used in financing activities .................................. (97,757) (111,983) (73,076)
Net increase (decrease) in cash and cash equivalents ..................... 14,602 (338,816) 302,211
Cash and cash equivalents, beginning of year ........................... 668,201 1,007,017 704,806
Cash and cash equivalents, end of year ................................ $ 682,803 $ 668,201 $ 1,007,017
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ..................................................... $ 27,904 $ 31,330 $ 42,495
Income taxes paid ................................................ 71,396 97,715 183,843
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Imputed interest discounts and deferred revenues ....................... $ 31,581 $ — $ 27,637
Amortization of discounts into earnings ............................... 8,790 10,228 —
Accretion of deferred revenues into earnings ........................... 7,664 10,228 —
See accompanying notes to consolidated financial statements.
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