United Healthcare 2006 Annual Report Download - page 87

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Consolidated Statements of Cash Flows
For the Year Ended December 31, 2004
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 ............................. $2,587 $(158) $ 2,429 $ 13 $(31) $ 2,411
Noncash Items:
Depreciation and Amortization ........... 374 — 374 — — 374
Deferred Income Taxes and Other ......... 125 (108) 17 (255) 6 (232)
Stock-Based Compensation .............. — 201 201 2 41 244
Net Change in Other Operating Items, net of
effects from acquisitions, and changes in
AARP balances
Accounts Receivable and Other Assets ..... (30) 60 30 — — 30
Medical Costs Payable .................. 322 (40) 282 — — 282
Accounts Payable and Other Accrued
Liabilities .......................... 623 69 692 (45) 45 692
Unearned Premiums ................... 134 (12) 122 — — 122
Cash Flows From Operating Activities ....... 4,135 12 4,147 (285) 61 3,923
Investing Activities
Cash Paid for Acquisitions, net of cash assumed
and other effects ......................... (2,225) — (2,225) — — (2,225)
Purchases of Property, Equipment and Capitalized
Software ............................... (356) — (356) — — (356)
Proceeds from Disposal of Property, Equipment
and Capitalized Software .................. 6 — 6 — — 6
Purchases of Investments .................... (3,190) — (3,190) — — (3,190)
Maturities and Sales of Investments ........... 4,121 — 4,121 — — 4,121
Cash Flows Used for Investing Activities ..... (1,644) — (1,644) — — (1,644)
Financing Activities
Repayment of Commercial Paper, net .......... 194 — 194 — — 194
Proceeds from Issuance of Long-Term Debt ..... 2,000 — 2,000 — — 2,000
Payments for Retirement of Long-Term Debt .... (150) — (150) — — (150)
Common Stock Repurchases ................. (3,446) — (3,446) — — (3,446)
Proceeds from Common Stock Issuances under
Stock-Based Compensation Plans ........... 583 — 583 — — 583
Stock-Based Compensation Excess Tax
Benefit ................................ — — — 285 (61) 224
Customer Funds Administered ............... 71 — 71 — — 71
Dividends Paid ............................ (18) — (18) — — (18)
Other ................................... 4 (12) (8) — — (8)
Cash Flows From (Used For) Financing
Activities .............................. (762) (12) (774) 285 (61) (550)
Increase in Cash and Cash Equivalents ...... 1,729 — 1,729 — — 1,729
Cash and Cash Equivalents, Beginning of
Period ................................ 2,262 — 2,262 — — 2,262
Cash and Cash Equivalents, End of Period . . . $ 3,991 $ — $ 3,991 $ — $ — $ 3,991
(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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