Humana 2004 Annual Report Download - page 70

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2004 2003 2002
(in thousands)
Cash flows from operating activities
Net income .................................................... $ 280,012 $ 228,934 $ 142,755
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ................................. 117,792 126,779 120,730
Restricted stock and other stock compensation .................... 4,020 6,337 9,490
(Gain) loss on sale of property and equipment, net ................. (935) 298 3,168
(Gain) loss on sale of investment securities, net ................... (28,206) (36,651) 10,077
Provision for deferred income taxes ............................. 53,608 32,251 49,561
Provision for doubtful accounts ................................ 6,433 7,416 5,990
Writedown of property and equipment .......................... — 17,233 2,448
Changes in operating assets and liabilities excluding the effects of
acquisitions:
Receivables ............................................ (51,058) (22,636) (183,071)
Other assets ........................................... 3,991 25,110 (2,464)
Medical and other expenses payable ........................ 78,791 130,025 55,745
Other liabilities ......................................... 65,732 (107,432) 84,347
Unearned revenues ...................................... (190,759) (2,686) 10,717
Other ..................................................... 8,388 8,162 11,915
Net cash provided by operating activities .................... 347,809 413,140 321,408
Cash flows from investing activities
Acquisitions, net of cash acquired .................................. (141,810) — —
Purchases of property and equipment ............................... (114,096) (101,268) (112,136)
Proceeds from sales of property and equipment ....................... 30,491 11,182 1,849
Purchases of investment securities .................................. (4,106,210) (4,572,577) (2,569,078)
Maturities of investment securities ................................. 1,015,144 769,436 492,935
Proceeds from sales of investment securities .......................... 2,683,749 3,520,064 2,058,273
Change in securities lending collateral ............................... 8,651 (9,674) (76,817)
Net cash used in investing activities ........................ (624,081) (382,837) (204,974)
Cash flows from financing activities
Net conduit commercial paper (repayments) borrowings ................ — (265,000) 2,000
Proceeds from issuance of senior notes .............................. — 299,139 —
Proceeds from swap exchange ..................................... — 31,556 —
Debt issue costs ................................................ (1,954) (3,331) (1,549)
Change in book overdraft ......................................... (26,994) 124,172 (57,875)
Change in securities lending payable ................................ (8,651) 9,674 76,817
Common stock repurchases ....................................... (67,024) (44,147) (74,035)
Proceeds from stock option exercises and other ....................... 29,570 27,681 8,145
Net cash (used in) provided by financing activities ............. (75,053) 179,744 (46,497)
(Decrease) increase in cash and cash equivalents .......................... (351,325) 210,047 69,937
Cash and cash equivalents at beginning of year ............................ 931,404 721,357 651,420
Cash and cash equivalents at end of year ................................. $ 580,079 $ 931,404 $ 721,357
Supplemental cash flow disclosures:
Interest payments ............................................... $ 30,779 $ 18,096 $ 14,691
Income tax payments, net ......................................... $ 51,086 $ 59,622 $ 43,454
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ..................... $ 243,422
Less: liabilities assumed .......................................... (101,612)
Cash paid for acquired businesses, net of cash acquired ................. $ 141,810
The accompanying notes are an integral part of the consolidated financial statements.
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