Humana 2005 Annual Report Download - page 72

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2005 2004 2003
(in thousands)
Cash flows from operating activities
Net income .................................................... $ 308,483 $ 280,012 $ 228,934
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ................................. 128,858 117,792 126,779
Restricted stock and other stock compensation .................... 11,319 4,020 6,337
Loss (gain) on sale of property and equipment, net ................. 152 (935) 298
Gain on sale of investment securities, net ........................ (18,323) (28,206) (36,651)
(Benefit) provision for deferred income taxes ..................... (38,362) 53,608 32,251
Provision for doubtful accounts ................................ 4,566 6,433 7,416
Writedown of property and equipment .......................... — — 17,233
Changes in operating assets and liabilities excluding the effects of
acquisitions:
Receivables ............................................ (161,314) (51,058) (22,636)
Other assets ........................................... (63,962) 3,991 25,110
Medical and other expenses payable ........................ 450,297 78,791 130,025
Other liabilities ......................................... 47,598 65,732 (107,432)
Unearned revenues ...................................... (45,610) (190,759) (2,686)
Other ..................................................... 1,925 8,388 8,162
Net cash provided by operating activities .................... 625,627 347,809 413,140
Cash flows from investing activities
Acquisitions, net of cash acquired .................................. (402,844) (141,810) —
Purchases of property and equipment ............................... (165,846) (114,096) (101,268)
Proceeds from sales of property and equipment ....................... 4,497 30,491 11,182
Purchases of investment securities .................................. (3,717,916) (4,106,210) (4,572,577)
Maturities of investment securities ................................. 1,761,588 1,015,144 769,436
Proceeds from sales of investment securities .......................... 1,723,015 2,683,749 3,520,064
Change in securities lending collateral ............................... 30,230 8,651 (9,674)
Net cash used in investing activities ........................ (767,276) (624,081) (382,837)
Cash flows from financing activities
Borrowings under credit agreement ................................. 494,000 — —
Repayments under credit agreement ................................ (294,000) — —
Net conduit commercial paper (repayments) borrowings ................ — — (265,000)
Proceeds from issuance of senior notes .............................. — — 299,139
Proceeds from swap exchange ..................................... — — 31,556
Debt issue costs ................................................ — (1,954) (3,331)
Change in book overdraft ......................................... 87,945 (26,994) 124,172
Change in securities lending payable ................................ (30,230) (8,651) 9,674
Common stock repurchases ....................................... (2,364) (67,024) (44,147)
Proceeds from stock option exercises and other ....................... 38,235 29,570 27,681
Net cash provided by (used in) financing activities ............. 293,586 (75,053) 179,744
Increase (decrease) in cash and cash equivalents ........................... 151,937 (351,325) 210,047
Cash and cash equivalents at beginning of year ............................ 580,079 931,404 721,357
Cash and cash equivalents at end of year ................................. $ 732,016 $ 580,079 $ 931,404
Supplemental cash flow disclosures:
Interest payments ............................................... $ 45,258 $ 30,779 $ 18,096
Income tax payments, net ......................................... $ 179,300 $ 51,086 $ 59,622
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ..................... $ 508,443 $ 243,422
Less: Fair value of liabilities assumed ............................... (105,599) (101,612)
Cash paid for acquired businesses, net of cash acquired ................. $ 402,844 $ 141,810
The accompanying notes are an integral part of the consolidated financial statements.
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