Health Net 2013 Annual Report Download - page 111

F-7
HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2013 2012 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................................................................................. $ 170,126 $ 122,063 $ 72,120
Adjustments to reconcile net income to net cash provided by operating
activities:
Amortization and depreciation..................................................................... 38,589 31,146 31,152
Adjustment to loss on sale of business ........................................................ — — (40,815)
Gain on sale of discontinued operation........................................................ — (114,834) —
Share-based compensation expense............................................................. 29,930 28,893 27,602
Deferred income taxes ................................................................................. 8,645 8,924 7,771
Excess tax benefit on share-based compensation ........................................ (620)(6,089)(1,349)
Net realized gain on investments................................................................. (24,061)(36,680)(33,029)
Other changes............................................................................................... 31,539 15,158 22,542
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Premiums receivable and unearned premiums ............................................ (83,822)(212,998) 65,221
Other current assets, receivables and noncurrent assets .............................. 1,425 (28,374)(54,031)
Amounts receivable/payable under government contracts .......................... 20,896 (8,989) 32,754
Reserves for claims and other settlements................................................... (53,898) 164,306 (29,898)
Accounts payable and other liabilities......................................................... (42,910) 70,014 3,340
Net cash provided by operating activities ............................................................. 95,839 32,540 103,380
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments .............................................................................................. 696,534 1,350,003 1,760,336
Maturities of investments ...................................................................................... 93,225 135,394 189,137
Purchases of investments....................................................................................... (722,223)(1,678,582)(1,814,431)
Sales of property and equipment........................................................................... — 24 —
Purchases of property and equipment.................................................................... (59,525)(73,101)(64,260)
Net cash received from sale of business................................................................ — 248,238 —
Purchase price adjustment on sale of Northeast Health Plans............................... — — 162,101
Sales (purchases) of restricted investments and other........................................... (7,432) 5,466 (10,656)
Net cash provided by (used in) investing activities............................................... 579 (12,558) 222,227
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases.............. 10,762 16,941 13,356
Excess tax benefit on share-based compensation.................................................. 620 6,089 1,349
Repurchases of common stock.............................................................................. (77,810)(69,496)(389,850)
Borrowings under financing arrangements ........................................................... 345,000 110,000 978,500
Repayment of borrowings under financing arrangements..................................... (345,000)(122,500)(872,212)
Net (decrease) increase in checks outstanding, net of deposits............................. (23,842) 23,842 (46,718)
Customer funds administered................................................................................ 86,897 124,999 (129,917)
Net cash (used in) provided by financing activities .............................................. (3,373) 89,875 (445,492)
Net increase (decrease) in cash and cash equivalents ........................................... 93,045 109,857 (119,885)
Cash and cash equivalents, beginning of year....................................................... 340,110 230,253 350,138
Cash and cash equivalents, end of year................................................................. $ 433,155 $ 340,110 $ 230,253
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ........................................................................................................... $ 30,789 $ 31,134 $ 31,332
Income taxes paid.................................................................................................. 80,119 5,001 55,882
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Accretion of deferred revenues into earnings........................................................ — 12,000 2,738
Amortization of discounts into earnings................................................................ — — 10,429
See accompanying notes to consolidated financial statements.