Years Ended December 31,
2013 |
2012 |
2011 |
|
| (In millions) | |||
| Operating activities | |||
| Net income | $ 2,489.7 | $ 2,655.5 | $ 2,646.7 |
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||
| Net realized gains on investments | (271.9) |
(334.9) |
(235.1) |
| Other—than—temporary impairment losses recognized in income |
98.9 |
37.8 |
93.3 |
| Loss on extinguishment of debt | 145.3 | — | — |
| Loss on disposal from discontinued operations | 221.8 | — | — |
| Loss on disposal of assets | 3.9 | 4.7 | 3.3 |
| Deferred income taxes | 59.1 | 127.5 | 74.3 |
| Amortization, net of accretion | 800.9 | 633.6 | 541.5 |
| Depreciation expense | 107.9 | 107.1 | 95.7 |
| Impairment of property and equipment | 47.7 | 66.8 | — |
| Share—based compensation | 146.0 | 146.5 | 134.8 |
| Excess tax benefits from share—based compensation | (30.1) |
(28.8) |
(42.2) |
| Changes in operating assets and liabilities, net of effect of business combinations: |
|||
| Receivables, net | (418.3) |
189.9 | (401.8) |
| Other invested assets | (15.1) |
(38.9) |
(8.9) |
| Other assets | (33.6) |
79.2 | (259.2) |
| Policy liabilities | (345.8) |
(53.7) |
978.0 |
| Unearned income | (73.8) |
(193.7) |
35.1 |
| Accounts payable and accrued expenses | 303.6 | (406.5) |
(208.7) |
| Other liabilities | (154.6) |
(132.8) |
(13.6) |
| Income taxes | 9.3 | (73.9) |
(44.6) |
| Other, net | (38.6) |
(40.8) |
(14.2) |
| Net cash provided by operating activities | 3,052.3 | 2,744.6 | 3,374.4 |
| Investing activities | |||
| Purchases of fixed maturity securities | (13,704.5) |
(15,040.4) |
(11,914.8) |
| Proceeds from fixed maturity securities: | |||
| Sales | 10,977.9 | 13,675.9 | 10,446.2 |
| Maturities, calls and redemptions | 1,836.8 | 1,781.5 | 1,891.3 |
| Purchases of equity securities | (820.3) |
(232.8) |
(259.0) |
| Proceeds from sales of equity securities | 721.0 | 422.7 | 287.4 |
| Purchases of other invested assets | (251.5) |
(303.7) |
(207.9) |
| Proceeds from sales of other invested assets | 127.1 | 35.5 | 29.4 |
| Settlement of non—hedging derivatives | (109.8) |
(59.8) |
(96.6) |
| Changes in securities lending collateral | (405.1) |
307.9 | 28.9 |
| Purchases of subsidiaries, net of cash acquired | — | (4,597.0) |
(600.0) |
| Purchases of property and equipment | (646.5) |
(544.9) |
(519.5) |
| Proceeds from sales of property and equipment | 39.2 | 0.4 | 3.7 |
| Other, net | 1.3 | 3.1 | (31.1) |
| Net cash used in investing activities | (2,234.4) |
(4,551.6) |
(942.0) |
| Financing activities | |||
| Net (repayments of) proceeds from commercial paper borrowings |
(191.7) |
(229.0) |
463.6 |
| Proceeds from long—term borrowings | 1,250.0 | 6,468.9 | 1,097.4 |
| Repayments of long—term borrowings | (1,801.9) |
(1,251.3) |
(705.1) |
| Proceeds from short—term borrowings | 1,100.0 | 642.0 | 100.0 |
| Repayments of short—term borrowings | (950.0) |
(492.0) |
(100.0) |
| Changes in securities lending payable | 405.0 | (307.8) |
(29.0) |
| Changes in bank overdrafts | 9.9 | (17.6) |
264.3 |
| Premiums paid on equity options | (25.8) |
— | — |
| Repurchase and retirement of common stock | (1,620.1) |
(2,496.8) |
(3,039.8) |
| Cash dividends | (448.0) |
(367.1) |
(357.8) |
| Proceeds from issuance of common stock under employee stock plans |
524.7 |
110.8 |
245.0 |
| Excess tax benefits from share—based compensation | 30.1 | 28.8 | 42.2 |
| Net cash (used in) provided by financing activities | (1,717.8) |
2,088.9 | (2,019.2) |
| Effect of foreign exchange rates on cash and cash equivalents |
2.2 |
1.1 |
(0.4) |
| Change in cash and cash equivalents | (897.7) |
283.0 | 412.8 |
| Cash and cash equivalents at beginning of year | 2,484.6 | 2,201.6 | 1,788.8 |
| Cash and cash equivalents at end of year | 1,586.9 | 2,484.6 | 2,201.6 |
| Less cash and cash equivalents of discontinued operations at end of year |
(4.8) |
(9.3) |
— |
| Cash and cash equivalents of continuing operations at end of year |
$ 1,582.1 |
$ 2,475.3 |
$ 2,201.6 |
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in WellPoint’s 2013 Annual Report on Form 10—K.