Humana 2010 Annual Report Download - page 90

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Humana Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended December 31,
2010 2009 2008
(in thousands)
Cash flows from operating activities
Net income ......................................................... $1,099,390 $ 1,039,675 $ 647,154
Adjustments to reconcile net income to net cash provided by operating
activities: .........................................................
Depreciation and amortization ...................................... 262,910 250,274 220,350
Stock-based compensation ......................................... 62,947 65,870 55,369
Net realized capital (gains) losses .................................... (5,646) (19,483) 79,417
(Gain) loss on sale of property and equipment, net ....................... (25) 228 (5)
Benefit from deferred income taxes .................................. (198,978) (26,792) (22,005)
Provision for doubtful accounts ..................................... 18,708 19,054 5,398
Changes in operating assets and liabilities, net of effect of businesses
acquired: .....................................................
Receivables ................................................. (45,535) (59,966) (152,893)
Other assets ................................................. 81,133 112,473 (100,887)
Benefits payable ............................................. 246,732 16,995 412,725
Other liabilities .............................................. 721,894 13,682 (170,140)
Unearned revenues ........................................... (46,233) (9,281) (10,280)
Other .......................................................... 44,497 18,853 18,107
Net cash provided by operating activities .......................... 2,241,794 1,421,582 982,310
Cash flows from investing activities
Acquisitions, net of cash acquired ........................................ (832,450) (12,436) (422,915)
Purchases of property and equipment ..................................... (222,302) (185,450) (261,572)
Proceeds from sales of property and equipment ............................. 66 1,509 6
Purchases of investment securities ....................................... (4,589,332) (7,197,007) (5,681,103)
Maturities of investment securities ....................................... 1,749,801 1,270,525 498,650
Proceeds from sales of investment securities ............................... 2,012,494 3,951,326 4,496,929
Change in securities lending collateral .................................... 70,734 312,272 871,681
Net cash used in investing activities .............................. (1,810,989) (1,859,261) (498,324)
Cash flows from financing activities
Receipts from CMS contract deposits ..................................... 1,757,217 2,354,238 2,761,276
Withdrawals from CMS contract deposits ................................. (1,994,391) (1,860,748) (2,572,624)
Borrowings under credit agreement ...................................... 0 0 1,175,000
Repayments under credit agreement ...................................... 0 (250,000) (1,725,000)
Proceeds from issuance of senior notes .................................... 0 0 749,247
Debt issue costs ...................................................... (7,777) 0 (6,696)
Proceeds from swap termination ......................................... 0 0 93,008
Change in securities lending payable ..................................... (70,734) (312,272) (898,350)
Change in book overdraft .............................................. 34,921 149,922 (44,684)
Common stock repurchases ............................................. (108,545) (22,841) (106,070)
Excess tax benefit from stock-based compensation .......................... 1,964 5,339 9,912
Proceeds from stock option exercises and other, net ......................... 16,089 17,206 10,965
Net cash (used in) provided by financing activities .................. (371,256) 80,844 (554,016)
Increase (decrease) in cash and cash equivalents ................................ 59,549 (356,835) (70,030)
Cash and cash equivalents at beginning of year ................................. 1,613,588 1,970,423 2,040,453
Cash and cash equivalents at end of year ...................................... $1,673,137 $ 1,613,588 $ 1,970,423
Supplemental cash flow disclosures:
Interest payments ..................................................... $ 111,848 $ 112,532 $ 73,813
Income tax payments, net .............................................. $ 784,924 $ 627,227 $ 347,353
Details of businesses acquired in purchase transactions:
Fair value of assets acquired, net of cash acquired ........................... $1,043,455 $ 12,436 $ 772,811
Less: Fair value of liabilities assumed .................................... (211,005) 0 (349,896)
Cash paid for acquired businesses, net of cash acquired ....................... $ 832,450 $ 12,436 $ 422,915
The accompanying notes are an integral part of the consolidated financial statements.
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