Health Net 2013 Annual Report Download - page 88

86
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Net cash provided by investing activities increased by $13.2 million for the year ended December 31, 2013
compared to the year ended December 31, 2012. This increase was primarily due to to a $260.7 million decrease in net
purchases of investments in available-for-sale securities during the year ended December 31, 2013, partially offset by
$248.2 million in proceeds received for the sale of our Medicare PDP business during the year ended December 31,
2012.
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Net cash used in investing activities increased by $234.8 million for the year ended December 31, 2012 compared
to the year ended December 31, 2011. This increase was primarily due to a $328.2 million increase in net purchases of
investments in available-for-sale securities and $162.1 million received from United for additional consideration related
to the Northeast sale during 2011, partially offset by $248.2 million received for the sale of our Medicare PDP business
during 2012.
Financing Activities
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Net cash provided by financing activities decreased by $93.3 million for the year ended December 31, 2013 as
compared to the year ended December 31, 2012 primarily due to a $47.7 million decrease in checks outstanding and a
$38.1 million decrease in cash from customer funds administered. Customer funds administered include pass-through
items and items accounted for under deposit accounting and are comprised of health care cost payments and
reimbursements for the T-3 contract, catastrophic reinsurance subsidy, low-income member cost sharing subsidy and the
coverage gap discount under the Medicare Part D program, and pass-through items related to our Medicaid program,
including inter-governmental transfers. See Note 2 to our consolidated financial statements for more information on the
T-3 contract and Medicare Part D.
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Net cash provided by financing activities increased for the year ended December 31, 2012 compared to the year
ended December 31, 2011 by $535.4 million primarily due to a $320.4 million decrease in share repurchases, a $254.9
million increase in customer funds administered and a $70.6 million increase in checks outstanding, partially offset by a
net decrease in revolving credit facility borrowings of $118.8 million in 2012.
Capital Structure
Our debt-to-total capital ratio was 23.5 percent as of December 31, 2013 compared with 24.3 percent as of
December 31, 2012. This decrease was driven by an increase in our stockholders equity primarily resulting from net
income, partially offset by an increase in treasury stock due to share repurchases.
Stock Repurchase Program
On May 2, 2011, our Board of Directors authorized our stock repurchase program pursuant to which a total of
$300 million of our outstanding common stock could be repurchased. On March 8, 2012, our Board of Directors
approved a $323.7 million increase to our stock repurchase program. During the year ended December 31, 2013, we
repurchased 2.7 million shares of our common stock for aggregate consideration of $70.0 million under our stock
repurchase program. The remaining authorization under our stock repurchase program as of December 31, 2013 was
$280.0 million. For additional information on our stock repurchase programs, see Note 9 to our consolidated financial
statements.
Revolving Credit Facility
In October 2011, we entered into a $600 million unsecured revolving credit facility due in October 2016, which
includes a $400 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swing line
loans (which sublimits may be increased in connection with any increase in the credit facility described below). In
addition, we have the ability from time to time to increase the credit facility by up to an additional $200 million in the
aggregate, subject to the receipt of additional commitments. As of December 31, 2013, $100.0 million was outstanding
under our revolving credit facility and the maximum amount available for borrowing under the revolving credit facility
was $492.5 million (see "—Letters of Credit" below). As of February 24, 2014, we had $100.0 million in borrowings
outstanding under our revolving credit facility.