Humana 2006 Annual Report Download - page 76

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2006 2005 2004
(in thousands)
Cash flows from operating activities
Net income .................................................... $ 487,423 $ 296,730 $ 269,947
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ................................. 148,598 128,858 117,792
Stock-based compensation .................................... 32,558 30,153 20,492
Loss (gain) on sale of property and equipment, net ................. 1,153 152 (935)
Gain on sale of investment securities, net ........................ (67,496) (18,323) (28,206)
Provision (benefit) for deferred income taxes ..................... 70,062 (39,007) 52,507
Provision for doubtful accounts ................................ 20,901 4,566 6,433
Changes in operating assets and liabilities excluding the effects of
acquisitions:
Receivables ............................................ 37,653 (161,314) (51,058)
Other assets ........................................... (365,454) (63,962) 3,991
Medical and other expenses payable ........................ 557,381 450,297 78,791
Other liabilities ......................................... 734,718 25,617 56,678
Unearned revenues ...................................... 29,870 (45,610) (190,759)
Other ..................................................... (655) 1,925 8,388
Net cash provided by operating activities .................... 1,686,712 610,082 344,061
Cash flows from investing activities
Acquisitions, net of cash acquired .................................. (28,062) (402,844) (141,810)
Purchases of property and equipment ............................... (193,151) (165,846) (114,096)
Proceeds from sales of property and equipment ....................... 9,623 4,497 30,491
Purchases of investment securities .................................. (4,269,221) (3,717,916) (4,106,210)
Maturities of investment securities ................................. 1,664,332 1,761,588 1,015,144
Proceeds from sales of investment securities .......................... 1,742,793 1,723,015 2,683,749
Change in securities lending collateral ............................... (580,380) 30,230 8,651
Net cash used in investing activities ........................ (1,654,066) (767,276) (624,081)
Cash flows from financing activities
Receipts from CMS contract deposits ............................... 2,002,451 — —
Withdrawals from CMS contract deposits ............................ (2,124,717) — —
Borrowings under credit agreement ................................. 550,000 494,000 —
Repayments under credit agreement ................................ (300,000) (294,000) —
Proceeds from issuance of senior notes .............................. 498,545 — —
Repayment of senior notes ........................................ (300,000) — —
Debt issue costs ................................................ (5,980) — (1,954)
Change in book overdraft ......................................... 13,600 87,945 (26,994)
Change in securities lending payable ................................ 580,380 (30,230) (8,651)
Common stock repurchases ....................................... (26,211) (2,364) (67,024)
Tax benefit from stock-based compensation .......................... 38,839 15,545 3,748
Proceeds from stock option exercises and other ....................... 48,735 38,235 29,570
Net cash provided by (used in) financing activities ............. 975,642 309,131 (71,305)
Increase (decrease) in cash and cash equivalents ........................... 1,008,288 151,937 (351,325)
Cash and cash equivalents at beginning of year ............................ 732,016 580,079 931,404
Cash and cash equivalents at end of year ................................. $1,740,304 $ 732,016 $ 580,079
Supplemental cash flow disclosures:
Interest payments ............................................... $ 66,579 $ 45,258 $ 30,779
Income tax payments, net ......................................... $ 160,233 $ 179,300 $ 51,086
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ..................... $ 63,961 $ 508,443 $ 243,422
Less: Fair value of liabilities assumed ............................... (35,899) (105,599) (101,612)
Cash paid for acquired businesses, net of cash acquired ................. $ 28,062 $ 402,844 $ 141,810
The accompanying notes are an integral part of the consolidated financial statements.
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