Humana 2009 Annual Report Download - page 81

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2009 2008 2007
(in thousands)
Cash flows from operating activities
Net income ......................................................... $1,039,675 $ 647,154 $ 833,684
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ...................................... 250,274 220,350 184,812
Stock-based compensation ......................................... 65,870 55,369 42,132
Net realized capital (gains) losses .................................... (19,483) 79,417 (11,668)
Loss (gain) on sale of property and equipment, net ...................... 228 (5) (13,597)
Benefit from deferred income taxes .................................. (26,792) (22,005) (32,736)
Provision for doubtful accounts ..................................... 19,054 5,398 28,922
Changes in operating assets and liabilities, net of effect of businesses acquired:
Receivables ................................................. (59,966) (152,893) 60,745
Other assets ................................................. 112,473 (100,887) 105,689
Benefits payable ............................................. 16,995 412,725 245,397
Other liabilities .............................................. 13,682 (170,140) (317,855)
Unearned revenues ........................................... (9,281) (10,280) 64,482
Other .......................................................... 18,853 18,107 34,255
Net cash provided by operating activities .......................... 1,421,582 982,310 1,224,262
Cash flows from investing activities
Acquisitions, net of cash acquired ........................................ (12,436) (422,915) (493,493)
Purchases of property and equipment ..................................... (185,450) (261,572) (239,244)
Proceeds from sales of property and equipment ............................. 1,509 6 26,514
Purchases of investment securities ....................................... (7,197,007) (5,681,103) (3,488,631)
Maturities of investment securities ....................................... 1,270,525 498,650 1,387,967
Proceeds from sales of investment securities ............................... 3,951,326 4,496,929 1,670,555
Change in securities lending collateral .................................... 312,272 871,681 (709,059)
Net cash used in investing activities .............................. (1,859,261) (498,324) (1,845,391)
Cash flows from financing activities
Receipts from CMS contract deposits ..................................... 2,354,238 2,761,276 2,866,170
Withdrawals from CMS contract deposits ................................. (1,860,748) (2,572,624) (3,051,241)
Borrowings under credit agreement ...................................... — 1,175,000 1,685,000
Repayments under credit agreement ...................................... (250,000) (1,725,000) (1,335,000)
Proceeds from issuance of senior notes .................................... — 749,247 —
Debt issue costs ...................................................... — (6,696) —
Proceeds from swap termination ......................................... — 93,008 —
Change in securities lending payable ..................................... (312,272) (898,350) 709,059
Change in book overdraft .............................................. 149,922 (44,684) (24,379)
Common stock repurchases ............................................. (22,841) (106,070) (27,412)
Excess tax benefit from stock-based compensation .......................... 5,339 9,912 37,443
Proceeds from stock option exercises and other ............................. 17,206 10,965 61,638
Net cash provided by (used in) financing activities .................. 80,844 (554,016) 921,278
(Decrease) increase in cash and cash equivalents ................................ (356,835) (70,030) 300,149
Cash and cash equivalents at beginning of year ................................. 1,970,423 2,040,453 1,740,304
Cash and cash equivalents at end of year ...................................... $1,613,588 $ 1,970,423 $ 2,040,453
Supplemental cash flow disclosures:
Interest payments ..................................................... $ 112,532 $ 73,813 $ 67,954
Income tax payments, net .............................................. $ 627,227 $ 347,353 $ 443,904
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ........................... $ 12,436 $ 772,811 $ 1,315,492
Less: Fair value of liabilities assumed .................................... — (349,896) (821,999)
Cash paid for acquired businesses, net of cash acquired ....................... $ 12,436 $ 422,915 $ 493,493
The accompanying notes are an integral part of the consolidated financial statements.
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