Humana 2002 Annual Report Download - page 62

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2002 2001 2000
(in thousands)
Cash flows from operating activities
Netincome .................................................................. $ 142,755 $ 117,171 $ 90,052
Adjustments to reconcile net income to net cash provided by operating activities:
Non-cash restructuring charge ................................................. 2,448 — —
Depreciation and amortization ................................................. 120,730 161,531 146,548
Amortization of restricted stock ................................................ 8,994 9,492 7,069
Loss (gain) on sale of property and equipment, net ................................. 3,168 686 (3,373)
Loss (gain) on sale of investment securities, net ................................... 10,077 (13,853) (6,615)
Provision for deferred income taxes ............................................ 49,561 56,104 19,287
Provision for doubtful accounts ................................................ 5,990 4,039 10,927
Changes in operating assets and liabilities excluding the effects of acquisitions and
divestitures:
Receivables ............................................................. (183,071) (25,231) 141
Other assets ............................................................. (2,464) 10,579 (9,369)
Medical and other expenses payable .......................................... 55,745 (179,539) (195,891)
Workers’ compensation liabilities ............................................ — — (30,064)
Other liabilities ........................................................... 84,347 19,456 24,494
Unearned revenues ........................................................ 10,717 (13,397) (16,050)
Other .................................................................... 12,411 1,920 3,248
Net cash provided by operating activities .................................... 321,408 148,958 40,404
Cash flows from investing activities
Acquisitions, net of cash and cash equivalents acquired ............................... — (29,359) (12,910)
Divestitures, net of cash and cash equivalents disposed ............................... — 1,470 28,517
Purchases of property and equipment ............................................. (112,136) (115,536) (135,067)
Dispositions of property and equipment ........................................... 1,849 565 21,163
Purchases of investment securities ................................................ (2,569,078) (1,874,482) (1,205,129)
Maturities of investment securities ............................................... 492,935 626,369 543,062
Proceeds from sales of investment securities ........................................ 2,058,273 1,272,166 582,339
Net cash used in investing activities ........................................ (128,157) (118,807) (178,025)
Cash flows from financing activities
Revolving credit agreement (repayments) borrowings ................................ — (520,000) 520,000
Net conduit commercial paper borrowings ......................................... 2,000 263,000 —
Net commercial paper repayments ................................................ — (79,952) (606,261)
Proceeds from issuance of senior notes ............................................ — 299,277 —
Proceeds from other borrowings ................................................. — 5,700 —
Debt issue costs .............................................................. (1,549) (7,116) —
Change in book overdraft ....................................................... (57,875) 4,194 (66,618)
Common stock repurchases ..................................................... (74,035) (1,867) (26,432)
Other ...................................................................... 8,145 471 (3,793)
Net cash used in financing activities ........................................ (123,314) (36,293) (183,104)
Increase (decrease) in cash and cash equivalents ....................................... 69,937 (6,142) (320,725)
Cash and cash equivalents at beginning of period ...................................... 651,420 657,562 978,287
Cash and cash equivalents at end of period ........................................... $ 721,357 $ 651,420 $ 657,562
Supplemental cash flow disclosures:
Interest payments ............................................................. $ 14,691 $ 23,663 $ 25,190
Income tax payments (refunds), net ............................................... $ 43,454 $ 11,413 $ (35,182)
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ................................... $ — $ 154,684 $ 125,816
Less: liabilities assumed ........................................................ — (125,325) (112,906)
Cash paid for acquired businesses, net of cash acquired ............................... $ — $ 29,359 $ 12,910
The accompanying notes are an integral part of the consolidated financial statements.
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