Consolidated Statements of Cash Flows
2011 Annual Report
Years Ended December 31, |
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(In millions) |
2011 |
2010 |
2009 |
Operating activities |
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| Net income | $2,646.7 |
$2,887.1 |
$4,745.9 |
Adjustments to reconcile net income to net cash |
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provided by operating activities: |
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Net realized gains/losses on investments |
(235.1) |
(194.1) |
(56.4) |
Other-than-temporary impairment losses recognized in income |
93.3 |
39.4 |
450.2 |
Loss on disposal of assets |
3.3 |
1.9 |
16.4 |
Gain on sale of business |
— |
— |
(3,792.3) |
Deferred income taxes |
74.3 |
101.8 |
61.3 |
Amortization, net of accretion |
541.5 |
497.7 |
446.4 |
Impairment of goodwill and other intangible assets |
— |
21.1 |
262.5 |
Depreciation expense |
95.7 |
103.1 |
107.1 |
Impairment of property and equipment |
— |
95.3 |
— |
Share-based compensation |
134.8 |
136.0 |
153.6 |
Excess tax benefits from share-based compensation |
(42.2) |
(28.1) |
(9.6) |
Changes in operating assets and liabilities, net of |
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effect of business combinations: |
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Receivables, net |
(401.8) |
109.7 |
(484.2) |
Other invested assets |
(8.9) |
5.1 |
(62.5) |
Other assets |
(259.2) |
(320.1) |
(119.3) |
Policy liabilities |
978.0 |
(330.7) |
(748.2) |
Unearned income |
35.1 |
(158.6) |
(27.3) |
Accounts payable and accrued expenses |
(208.7) |
(58.2) |
952.8 |
Other liabilities |
(13.6) |
(208.4) |
(248.8) |
Income taxes |
(44.6) |
(1,239.8) |
1,391.4 |
Other, net |
(14.2) |
(43.5) |
(0.1) |
Net cash provided by operating activities |
3,374.4 |
1,416.7 |
3,038.9 |
|
|
|
|
Investing activities |
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Purchases of fixed maturity securities |
(11,914.8) |
(10,567.2) |
(7,186.8) |
Proceeds from fixed maturity securities: |
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Sales |
10,446.2 |
7,215.1 |
4,096.6 |
Maturities, calls and redemptions |
1,891.3 |
3,321.7 |
1,551.7 |
Purchases of equity securities |
(355.6) |
(350.9) |
(318.9) |
Proceeds from sales of equity securities |
287.4 |
197.9 |
577.3 |
Purchases of other invested assets |
(207.9) |
(91.4) |
(49.0) |
Proceeds from sales of other invested assets |
29.4 |
34.5 |
3.5 |
Changes in securities lending collateral |
28.9 |
(504.8) |
132.4 |
Purchases of subsidiaries, net of cash acquired |
(600.0) |
(0.3) |
(66.3) |
Proceeds from sales of subsidiaries, net of cash sold |
— |
— |
4,672.3 |
Purchases of property and equipment |
(519.5) |
(451.4) |
(378.4) |
Proceeds from sales of property and equipment |
3.7 |
0.8 |
0.4 |
Other, net |
(31.1) |
(75.5) |
(32.0) |
Net cash (used in) provided by investing activities |
(942.0) |
(1,271.5) |
3,002.8 |
|
|
|
|
Financing activities |
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Net proceeds from (repayments of) commercial paper borrowings |
463.6 |
(164.4) |
(397.0) |
Proceeds from long-term borrowings |
1,097.4 |
1,088.5 |
990.3 |
Repayments of long-term borrowings |
(705.1) |
(481.7) |
(919.3) |
Proceeds from short-term borrowings |
100.0 |
100.0 |
— |
Repayments of short-term borrowings |
(100.0) |
— |
(98.0) |
Changes in securities lending payable |
(29.0) |
504.9 |
(132.4) |
Changes in bank overdrafts |
264.3 |
(28.0) |
(344.1) |
Repurchase and retirement of common stock |
(3,039.8) |
(4,360.3) |
(2,638.4) |
Cash dividends |
(357.8) |
— |
— |
Proceeds from issuance of common stock under employee stock plans |
245.0 |
143.6 |
126.5 |
Excess tax benefits from share-based compensation |
42.2 |
28.1 |
9.6 |
Net cash used in financing activities |
(2,019.2) |
(3,169.3) |
(3,402.8) |
|
|
|
|
Effect of foreign exchange rates on cash and cash equivalents |
(0.4) |
(3.2) |
(6.7) |
Change in cash and cash equivalents |
412.8 |
(3,027.3) |
2,632.2 |
Cash and cash equivalents at beginning of period |
1,788.8 |
4,816.1 |
2,183.9 |
|
|
|
|
Cash and cash equivalents at end of period |
$2,201.6 |
$1,788.8 |
$4,816.1 |
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in WellPoint’s 2011 Annual Report on Form 10-K.