Humana 2008 Annual Report Download - page 78

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2008 2007 2006
(in thousands)
Cash flows from operating activities
Net income ............................................................ $ 647,154 $ 833,684 $ 487,423
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ......................................... 220,350 184,812 148,598
Stock-based compensation ............................................ 55,369 42,132 32,558
(Gain) loss on sale of property and equipment, net ......................... (5) (13,597) 1,153
Loss (gain) on sale of investment securities, net ........................... 79,417 (11,668) (67,496)
(Benefit) provision for deferred income taxes ............................. (22,005) (32,736) 70,062
Provision for doubtful accounts ........................................ 5,398 28,922 20,901
Changes in operating assets and liabilities, net of effect of businesses acquired:
Receivables .................................................... (152,893) 60,745 37,653
Other assets .................................................... (100,887) 105,689 (365,454)
Benefits payable ................................................ 412,725 245,397 540,067
Other liabilities ................................................. (170,140) (317,855) 752,032
Unearned revenues .............................................. (10,280) 64,482 29,870
Other ............................................................. 18,107 34,255 (655)
Net cash provided by operating activities ............................. 982,310 1,224,262 1,686,712
Cash flows from investing activities
Acquisitions, net of cash acquired .......................................... (422,915) (493,493) (28,062)
Purchases of property and equipment ........................................ (261,572) (239,244) (193,151)
Proceeds from sales of property and equipment ................................ 6 26,514 9,623
Purchases of investment securities .......................................... (5,681,103) (3,488,631) (4,269,221)
Maturities of investment securities .......................................... 498,650 1,387,967 1,664,332
Proceeds from sales of investment securities .................................. 4,496,929 1,670,555 1,742,793
Change in securities lending collateral ....................................... 871,681 (709,059) (580,380)
Net cash used in investing activities ................................. (498,324) (1,845,391) (1,654,066)
Cash flows from financing activities
Receipts from CMS contract deposits ........................................ 2,761,276 2,866,170 2,002,451
Withdrawals from CMS contract deposits .................................... (2,572,624) (3,051,241) (2,124,717)
Borrowings under credit agreement ......................................... 1,175,000 1,685,000 550,000
Repayments under credit agreement ......................................... (1,725,000) (1,335,000) (300,000)
Proceeds from issuance of senior notes ...................................... 749,247 — 498,545
Repayment of senior notes ................................................ — — (300,000)
Debt issue costs ......................................................... (6,696) — (5,980)
Proceeds from swap termination ............................................ 93,008 — —
Change in book overdraft ................................................. (44,684) (24,379) 13,600
Change in securities lending payable ........................................ (898,350) 709,059 580,380
Common stock repurchases ............................................... (106,070) (27,412) (26,211)
Tax benefit from stock-based compensation .................................. 9,912 37,443 38,839
Proceeds from stock option exercises and other ................................ 10,965 61,638 48,735
Net cash (used in) provided by financing activities ..................... (554,016) 921,278 975,642
(Decrease) increase in cash and cash equivalents ................................... (70,030) 300,149 1,008,288
Cash and cash equivalents at beginning of year .................................... 2,040,453 1,740,304 732,016
Cash and cash equivalents at end of year ......................................... $1,970,423 $ 2,040,453 $ 1,740,304
Supplemental cash flow disclosures:
Interest payments ....................................................... $ 73,813 $ 67,954 $ 66,579
Income tax payments, net ................................................. $ 347,353 $ 443,904 $ 160,233
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired .............................. $ 772,811 $ 1,315,492 $ 63,961
Less: Fair value of liabilities assumed ....................................... (349,896) (821,999) (35,899)
Cash paid for acquired businesses, net of cash acquired ......................... $ 422,915 $ 493,493 $ 28,062
The accompanying notes are an integral part of the consolidated financial statements.
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