United Healthcare 2006 Annual Report Download - page 86

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Consolidated Statements of Cash Flows
For the Year Ended December 31, 2005
APB 25 — Historical Accounting Method FAS 123R — Current Accounting Method
(in millions) As Reported Adjustments (1) As Restated Adoption (2) Adjustments (3) As Restated
Operating Activities
Net Earnings ............................. $3,300 $(238) $ 3,062 $ 68 $(47) $ 3,083
Noncash Items:
Depreciation and Amortization ........... 453 — 453 — — 453
Deferred Income Taxes and Other ......... 167 (85) 82 (251) (2) (171)
Stock-Based Compensation .............. — 317 317 (67) 56 306
Net Change in Other Operating Items, net of
effects from acquisitions, and changes in
AARP balances
Accounts Receivable and Other Assets ..... (83) (3) (86) — — (86)
Medical Costs Payable .................. 193 3 196 — — 196
Accounts Payable and Other Accrued
Liabilities .......................... 580 22 602 (3) 3 602
Unearned Premiums ................... (284) (16) (300) — — (300)
Cash Flows From Operating Activities ....... 4,326 — 4,326 (253) 10 4,083
Investing Activities
Cash Paid for Acquisitions, net of cash assumed
and other effects ......................... (2,562) — (2,562) — — (2,562)
Cash Transferred on Sale of Business .......... (363) — (363) — — (363)
Purchases of Property, Equipment and Capitalized
Software ............................... (509) — (509) — — (509)
Purchases of Investments .................... (5,876) — (5,876) — — (5,876)
Maturities and Sales of Investments ........... 5,821 — 5,821 — — 5,821
Cash Flows Used for Investing Activities ..... (3,489) — (3,489) — — (3,489)
Financing Activities
Repayment of Commercial Paper, net .......... 2,556 — 2,556 — — 2,556
Proceeds from Issuance of Long-Term Debt ..... 500 — 500 — — 500
Payments for Retirement of Long-Term Debt .... (400) — (400) — — (400)
Common Stock Repurchases ................. (2,557) — (2,557) — — (2,557)
Proceeds from Common Stock Issuances under
Stock-Based Compensation Plans ........... 423 — 423 — — 423
Stock-Based Compensation Excess Tax
Benefit ................................ — — — 253 (10) 243
Customer Funds Administered ............... 102 — 102 — — 102
Dividends Paid ............................ (19) — (19) — — (19)
Other ................................... (12) — (12) — — (12)
Cash Flows From (Used For) Financing
Activities .............................. 593 — 593 253 (10) 836
Increase in Cash and Cash Equivalents ...... 1,430 — 1,430 — — 1,430
Cash and Cash Equivalents, Beginning of
Period ................................ 3,991 — 3,991 — — 3,991
Cash and Cash Equivalents, End of Period . . . $ 5,421 $ — $ 5,421 $ — $ — $ 5,421
(1) Includes adjustments to operating cash flows for stock-based compensation and related tax effects
associated with the restatement of our historical APB 25 Consolidated Statement of Cash Flows, as well as
operating cash flow adjustments due to immaterial adjustments, individually and in the aggregate, unrelated
to historical stock option practices.
(2) Reflects adjustments to operating cash flows for stock-based compensation and deferred tax assets and to
financing cash flows for excess tax benefits as recorded under the modified retrospective method of
adoption of FAS 123R that would have been recognized based on our original pro forma disclosure under
FAS 123 prior to the restatement, net of the restatement adjustments under APB 25.
(3) Represents adjustments made to restate our Consolidated Statement of Cash Flows subsequent to the
adoption of FAS 123R under the modified retrospective method to correct the previously presented pro
forma disclosures for the effects of the historical stock option practices and includes adjustments to
operating cash flows for additional stock-based compensation expense and deferred tax assets and to
financing cash flows for excess tax benefits.
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