Voya 2014 Annual Report Download - page 180

Voya Financial, Inc.’s primary sources and uses of cash for the periods indicated are presented in the
following table:
Years Ended December 31,
($ in millions) 2014 2013 2012
Beginning cash balance ......................... $ 640.2 $ 357.5 $ 1.3
Sources:
Dividends and returns of capital from
subsidiaries ............................. 902.0 1,434.0 813.0
Repayment of loans to subsidiaries, net of new
issuances ............................... 42.4 — 102.3
Proceeds from credit facility borrowings, net of
repayments ............................. — — 1,350.0
Proceeds from Senior Notes offerings .......... — 1,396.8 849.5
Proceeds from Junior Subordinated Notes
offering ................................ — 750.0 —
Proceeds from Initial Public Offering ........... — 571.6 —
Amounts received from subsidiaries under tax
sharing agreements, net .................... 248.4 348.2 56.4
Other, net ................................. 16.2 4.8 62.3
Total sources .............................. 1,209.0 4,505.4 3,233.5
Uses:
Payment of interest expense .................. 141.1 90.6 33.4
Capital provided to subsidiaries ............... 150.0 2,062.0 400.0
Repayments of loans from subsidiaries, net of new
issuances ............................... — 319.1 2,037.3
Repayment of commercial paper, net of
issuances ............................... — 192.0 362.6
Repayment of credit facility borrowings ......... — 1,350.0 —
New issuances of loans to subsidiaries, net of
repayments ............................. — 134.3 —
Payment of income taxes, net ................. 42.8 43.0 5.2
Debt issuance costs ......................... 16.8 26.5 38.8
Common stock acquired—Share repurchase ..... 789.4 — —
Share-based compensation ................... 16.9 — —
Dividends paid ............................. 10.1 5.2 —
Total uses ................................. 1,167.1 4,222.7 2,877.3
Net increase in cash and cash equivalents ........ 41.9 282.7 356.2
Ending cash balance ........................... $ 682.1 $ 640.2 $ 357.5
Liquidity
We manage liquidity through access to substantial investment portfolios as well as a variety of other sources of
liquidity including committed credit facilities, securities lending and repurchase agreements. Our asset-liability
management (“ALM”) process takes into account the expected maturity of investments and expected benefit
payments as well as the specific nature and risk profile of the liabilities, including variable products with guarantees.
As part of our liquidity management process, we model different scenarios to determine whether existing assets are
adequate to meet projected cash flows. Key variables in the modeling process include interest rates, equity market
movements, quantity and type of interest and equity market hedges, anticipated contract owner behavior, market
value of general account assets, variable separate account performance and implications of rating agency actions.
157