Health Net 2015 Annual Report Download - page 87

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Our total cash and cash equivalents as of December 31, 2015 and 2014 were $996.9 million and $869.1 million,
respectively. The changes in cash and cash equivalents are summarized as follows:
Year Ended December 31,
2015 2014 2013
(Dollars in millions)
Net cash provided by operating activities............................................... $431.1 $776.0 $95.8
Net cash (used in) provided by investing activities ................................ (546.7) (184.9) 0.6
Net cash provided by (used in) financing activities................................ 243.3 (155.2) (3.4)
Net increase in cash and cash equivalents............................................... $127.7 $435.9 $93.0
Operating Cash Flows
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
Net cash provided by operating activities decreased by $344.9 million for the year ended December 31, 2015
compared to the same period in 2014. This decrease was primarily due to more efficient claims processing following the
completion of our migration to a single claims payment platform.
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 of which drove an increase in reserves for claims and other
settlements.
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, 2015 Compared to Year Ended December 31, 2014
Net cash used in investing activities increased by $361.8 million for the year ended December 31, 2015 compared
to the year ended December 31, 2014. This increase was primarily due to a $356.1 million increase in net purchases of
available-for-sale investments.
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.
Financing Activities
Year Ended December 31, 2015 Compared to Year Ended December 31, 2014
Net cash provided by financing activities increased by $398.5 million for the year ended December 31, 2015 as
compared to the year ended December 31, 2014 primarily due to a $185.0 million increase in net borrowings under our
revolving credit facility, a $180.0 million increase in cash provided by customer funds administered and a $39.6 million
decrease in share repurchases under our stock repurchase program.
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-