Humana 2003 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2003 Humana annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2003 2002 2001
(in thousands)
Cash flows from operating activities
Net income ................................................................ $ 228,934 $ 142,755 $ 117,171
Adjustments to reconcile net income to net cash provided by operating activities:
Writedown of property and equipment ...................................... 17,233 2,448 —
Depreciation and amortization ............................................. 126,779 120,730 161,531
Restricted stock and other stock compensation ................................ 6,337 9,490 10,050
Loss on sale of property and equipment, net .................................. 298 3,168 686
(Gain) loss on sale of investment securities, net ............................... (36,651) 10,077 (13,853)
Provision for deferred income taxes ........................................ 32,251 49,561 56,104
Provision for doubtful accounts ............................................ 7,416 5,990 4,039
Changes in operating assets and liabilities excluding the effects of acquisitions
and divestitures:
Receivables ....................................................... (22,636) (183,071) (25,231)
Other assets ....................................................... 25,110 (2,464) 10,579
Medical and other expenses payable .................................... 130,025 55,745 (179,539)
Other liabilities ..................................................... (107,432) 84,347 19,456
Unearned revenues .................................................. (2,686) 10,717 (13,397)
Other ................................................................ 8,162 11,915 1,362
Net cash provided by operating activities ................................ 413,140 321,408 148,958
Cash flows from investing activities
Acquisitions, net of cash and cash equivalents acquired ............................. — — (29,359)
Divestitures, net of cash and cash equivalents disposed ............................. — — 1,470
Purchases of property and equipment ........................................... (101,268) (112,136) (115,536)
Proceeds from sales of property and equipment ................................... 11,182 1,849 565
Purchases of investment securities .............................................. (4,572,577) (2,569,078) (1,874,482)
Maturities of investment securities ............................................. 769,436 492,935 626,369
Proceeds from sales of investment securities ...................................... 3,520,064 2,058,273 1,272,166
Net cash used in investing activities .................................... (373,163) (128,157) (118,807)
Cash flows from financing activities
Revolving credit agreement repayments ......................................... — — (520,000)
Net conduit commercial paper (repayments) borrowings ............................ (265,000) 2,000 263,000
Net commercial paper repayments .............................................. — — (79,952)
Proceeds from issuance of senior notes .......................................... 299,139 — 299,277
Proceeds from other borrowings ............................................... — — 5,700
Proceeds from swap exchange ................................................. 31,556 — —
Debt issue costs ............................................................ (3,331) (1,549) (7,116)
Change in book overdraft ..................................................... 124,172 (57,875) 4,194
Common stock repurchases ................................................... (44,147) (74,035) (1,867)
Proceeds from stock option exercises and other ................................... 27,681 8,145 471
Net cash provided by (used in) financing activities ......................... 170,070 (123,314) (36,293)
Increase (decrease) in cash and cash equivalents ....................................... 210,047 69,937 (6,142)
Cash and cash equivalents at beginning of year ....................................... 721,357 651,420 657,562
Cash and cash equivalents at end of year ............................................. $ 931,404 $ 721,357 $ 651,420
Supplemental cash flow disclosures:
Interest payments ........................................................... $ 18,096 $ 14,691 $ 23,663
Income tax payments, net ..................................................... $ 59,622 $ 43,454 $ 11,413
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ................................. $ 154,684
Less: liabilities assumed ...................................................... (125,325)
Cash paid for acquired businesses, net of cash acquired ............................. $ 29,359
The accompanying notes are an integral part of the consolidated financial statements.
62