Health Net 2014 Annual Report Download - page 91

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Our total cash and cash equivalents as of December 31, 2014 and 2013 were $869.1 million and $433.2 million,
respectively. The changes in cash and cash equivalents are summarized as follows:
Year Ended December 31,
2014 2013 2012
(Dollars in millions)
Net cash provided by operating activities............................................... $776.0 $95.8 $32.5
Net cash (used in) provided by investing activities ................................ (184.9) 0.6 (12.6)
Net cash (used in) provided by financing activities................................ (155.2) (3.4) 89.9
Net increase (decrease) in cash and cash equivalents............................. $435.9 $93.0 $109.8
Operating Cash Flows
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Net cash provided by operating activities increased by $680.2 million for the year ended December 31, 2014
compared to the same period in 2013. This increase was primarily due to the growth in our business related to the ACA
and state exchange programs and Medicaid expansion, all which drove an increase in reserves for claims and other
settlements.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Net cash provided by operating activities increased by $63.3 million for the year ended December 31, 2013
compared to the same period in 2012. This increase was primarily due to the timing of the payments received in 2013
from DHCS related to our California Medicaid business, including $150.9 million received for Medi-Cal rate changes.
Our operating cash flow was also impacted by $47.9 million in premium tax payments made in 2013.
Investing Activities
Our cash flow from investing activities is primarily impacted by the sales, maturities and purchases of our
available-for-sale investment securities and restricted investments. Our investment objective is to maintain safety and
preservation of principal by investing in a diversified mix of high-quality, fixed-income securities, which are largely
investment grade, while maintaining liquidity in each portfolio sufficient to meet our cash flow requirements and
attaining an expected total return on invested funds.
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Net cash used in investing activities increased by $185.5 million for the year ended December 31, 2014 compared
to the year ended December 31, 2013. This increase was primarily due to a $192.4 million decrease in sales and
maturities of available-for-sale investments, net of purchases.
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 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.
Financing Activities
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Net cash used in financing activities increased by $151.8 million for the year ended December 31, 2014 as
compared to the year ended December 31, 2013 primarily due to a $119.5 million decrease in cash from customer funds
administered and a $74.7 million increase in share repurchases, partially offset by a $23.8 million increase in checks
outstanding and a $17.0 million increase in proceeds from the exercise of stock options and employee stock purchases.