Health Net 2014 Annual Report Download - page 117

F-7
HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2014 2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................................................................................ $ 145,629 $ 170,126 $ 122,063
Adjustments to reconcile net income to net cash provided by operating
activities:
Amortization and depreciation................................................................ 29,786 38,589 31,146
Asset impairment charges....................................................................... 88,536 — —
Gain on sale of discontinued operation................................................... — — (114,834)
Share-based compensation expense........................................................ 28,334 29,930 28,893
Deferred income taxes ............................................................................ (16,564) 8,645 8,924
Excess tax benefit on share-based compensation.................................... (2,230)(620)(6,089)
Net realized gain on investments ............................................................ (2,710)(24,061)(36,680)
Other changes.......................................................................................... 29,838 31,539 15,158
Changes in assets and liabilities, net of effects of acquisitions and
dispositions:
Premiums receivable and unearned premiums........................................ (549,786)(83,822)(212,998)
Other current assets, receivables and noncurrent assets.......................... (444,288) 1,425 (28,374)
Amounts receivable/payable under government contracts ..................... 39,754 20,896 (8,989)
Reserves for claims and other settlements.............................................. 911,960 (53,898) 164,306
Accounts payable and other liabilities .................................................... 517,742 (42,910) 70,014
Net cash provided by operating activities......................................................... 776,001 95,839 32,540
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ......................................................................................... 441,430 696,534 1,350,003
Maturities of investments ................................................................................. 98,901 93,225 135,394
Purchases of investments.................................................................................. (665,200)(722,223)(1,678,582)
Sales of property and equipment ...................................................................... — — 24
Purchases of property and equipment............................................................... (62,010)(59,525)(73,101)
Net cash received from sale of business........................................................... — — 248,238
Sales (purchases) of restricted investments and other...................................... 2,027 (7,432) 5,466
Net cash (used in) provided by investing activities.......................................... (184,852) 579 (12,558)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases......... 27,727 10,762 16,941
Excess tax benefit on share-based compensation............................................. 2,230 620 6,089
Repurchases of common stock ......................................................................... (152,549)(77,810)(69,496)
Borrowings under financing arrangements....................................................... — 345,000 110,000
Repayment of borrowings under financing arrangements................................ — (345,000)(122,500)
Net (decrease) increase in checks outstanding, net of deposits........................ — (23,842) 23,842
Customer funds administered ........................................................................... (32,579) 86,897 124,999
Net cash (used in) provided by financing activities.......................................... (155,171)(3,373) 89,875
Net increase (decrease) in cash and cash equivalents....................................... 435,978 93,045 109,857
Cash and cash equivalents, beginning of year.................................................. 433,155 340,110 230,253
Cash and cash equivalents, end of year ............................................................ $ 869,133 $ 433,155 $ 340,110
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ...................................................................................................... $ 29,670 $ 30,789 $ 31,134
Income taxes paid ............................................................................................. 83,499 80,119 5,001
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Accretion of deferred revenues into earnings................................................... — — 12,000
See accompanying notes to consolidated financial statements.