Health Net 2015 Annual Report Download - page 168

F-7
HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2015 2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................................................................................ $ 185,677 $ 145,629 $ 170,126
Adjustments to reconcile net income to net cash provided by operating
activities:
Amortization and depreciation................................................................ 22,533 29,786 38,589
Asset impairment charges....................................................................... 1,884 88,536 —
Share-based compensation expense........................................................ 29,451 28,334 29,930
Deferred income taxes ............................................................................ (10,894)(16,564) 8,645
Excess tax benefit on share-based compensation.................................... (4,855)(2,230)(620)
Net realized gain on investments ............................................................ (191)(2,710)(24,061)
Other changes.......................................................................................... 38,119 29,838 31,539
Changes in assets and liabilities, net of effects of acquisitions and
dispositions:
Premiums receivable and unearned premiums........................................ 46,315 (549,786)(83,822)
Other current assets, receivables and noncurrent assets.......................... (315,238)(444,288) 1,425
Amounts receivable/payable under government contracts ..................... (98,039) 39,754 20,896
Reserves for claims and other settlements.............................................. (402,643) 911,960 (53,898)
Accounts payable and other liabilities .................................................... 938,976 517,742 (42,910)
Net cash provided by operating activities......................................................... 431,095 776,001 95,839
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ......................................................................................... 953,092 441,430 696,534
Maturities of investments ................................................................................. 104,095 98,901 93,225
Purchases of investments.................................................................................. (1,538,128)(665,200)(722,223)
Purchases of property and equipment............................................................... (60,949)(62,010)(59,525)
Sales (purchases) of restricted investments and other...................................... (4,759) 2,027 (7,432)
Net cash (used in) provided by investing activities.......................................... (546,649)(184,852) 579
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases......... 18,972 27,727 10,762
Excess tax benefit on share-based compensation............................................. 4,855 2,230 620
Repurchases of common stock ......................................................................... (112,977)(152,549)(77,810)
Borrowings under financing arrangements....................................................... 360,000 — 345,000
Repayment of borrowings under financing arrangements................................ (175,000) — (345,000)
Net decrease in checks outstanding, net of deposits......................................... — — (23,842)
Customer funds administered ........................................................................... 147,425 (32,579) 86,897
Net cash provided by (used in) financing activities.......................................... 243,275 (155,171)(3,373)
Net increase in cash and cash equivalents........................................................ 127,721 435,978 93,045
Cash and cash equivalents, beginning of year.................................................. 869,133 433,155 340,110
Cash and cash equivalents, end of year ............................................................ $ 996,854 $ 869,133 $ 433,155
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ...................................................................................................... $ 31,622 $ 29,670 $ 30,789
Income taxes paid ............................................................................................. 276,468 83,499 80,119
See accompanying notes to consolidated financial statements.