Humana 2013 Annual Report Download - page 81

Cash Flow from Investing Activities
Our ongoing capital expenditures primarily relate to our information technology initiatives, support of
services in our provider services operations including medical and administrative facility improvements
necessary for activities such as the provision of care to members, claims processing, billing and collections,
wellness solutions, care coordination, regulatory compliance and customer service. Total capital expenditures,
excluding acquisitions, were $441 million in 2013, $410 million in 2012, and $346 million in 2011. Excluding
acquisitions, we expect total capital expenditures in 2014 in a range of approximately $525 million to $575
million primarily reflecting increased spending associated with growth in our provider services and pharmacy
businesses in our Healthcare Services segment.
We reinvested a portion of our operating cash flows in investment securities, primarily investment-grade
fixed income securities, totaling $592 million in 2013, $320 million in 2012, and $796 million in 2011.
Cash consideration paid for acquisitions, net of cash acquired, was $187 million in 2013, $1.2 billion in
2012, and $226 million in 2011. Cash paid for acquisitions in 2013 primarily related to the American Eldercare
and other health and wellness related acquisitions. In 2012, acquisitions included Metropolitan, Arcadian,
SeniorBridge and other health and wellness and technology related acquisitions. Acquisitions in 2011 included
Anvita and other Retail segment acquisitions.
Cash Flow from Financing Activities
Receipts from CMS associated with Medicare Part D claim subsidies for which we do not assume risk were
$155 million less than claims payments during 2013, $341 million less than claims payments during 2012, and
$378 million less than claim payments during 2011. Under our current administrative services only TRICARE
South Region contract that began April 1, 2012, health care cost payments for which we do not assume risk were
less than reimbursements from the federal government by $5 million in 2013 and exceeded reimbursements by
$56 million in 2012. See Note 2 to the consolidated financial statements included in Item 8. – Financial
Statements and Supplementary Data for further description.
We repurchased 5.8 million shares for $502 million in 2013, 6.25 million shares for $460 million in 2012,
and 6.8 million shares for $492 million in 2011 under share repurchase plans authorized by the Board of
Directors. We also acquired common shares in connection with employee stock plans for an aggregate cost of
$29 million in 2013, $58 million in 2012, and $49 million in 2011.
As discussed further below, we paid dividends to stockholders of $168 million in 2013, $165 million in
2012, and $82 million in 2011.
In December 2012, we issued $600 million of 3.15% senior notes due December 1, 2022 and $400 million
of 4.625% senior notes due December 1, 2042. Our net proceeds, reduced for the discount and cost of the
offering, were $990 million. We used the proceeds from the offering primarily to finance the acquisition of
Metropolitan, including the retirement of Metropolitan’s indebtedness, and to pay related fees and expenses.
In March 2012, we repaid, without penalty, junior subordinated long-term debt of $36 million.
The remainder of the cash used in or provided by financing activities in 2013, 2012, and 2011 primarily
resulted from proceeds from stock option exercises and the change in book overdraft.
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