Parent Financial Statements

12 Months Ended

Dec. 31, 2011

Parent Financial Statements [Abstract]

Parent Financial Statements

(19) Parent Financial Statements

The following parent only condensed financial information reflects the financial condition, results of operations and cash flows of AMERIGROUP Corporation.

CONDENSED BALANCE SHEETS

	December 31,
	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	101,084		$	62,189
Short-term investments		282,888			54,895
Due from subsidiaries		13,608			34,397
Deferred income taxes		9,321			8,445
Prepaid expenses		30,864			10,366
Other current assets		3,532			3,245
Total current assets		441,297			173,537
Long-term investments		340,857			131,523
Investment in subsidiaries		1,168,595			1,128,535
Property, equipment and software, net of accumulated depreciation of $172,132 and $145,375 at December 31, 2011 and 2010, respectively		97,648			84,428
Deferred income taxes		20,043			20,074
Other long-term assets		16,317			10,734
Total assets	$	2,084,757		$	1,548,831
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accrued payroll and related liabilities	$	63,475		$	71,254
Accounts payable, accrued expenses and other		55,292			47,192
Current portion of long-term debt		256,995			—
Total current liabilities		375,762			118,446
Long-term debt		400,000			245,750
Deferred income taxes		11,268			5,231
Other long-term liabilities		13,208			13,767
Total liabilities		800,238			383,194
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 100,000,000 shares; outstanding 46,878,474 and 48,167,229 at December 31, 2011 and 2010, respectively		573			554
Additional paid-in capital		637,605			543,611
Accumulated other comprehensive income		11,942			627
Retained earnings		1,059,624			864,003
		1,709,744			1,408,795
Less treasury stock at cost (11,201,634 and 7,759,234 shares at December 31, 2011 and 2010, respectively)		(425,225	)		(243,158	)
Total stockholders’ equity		1,284,519			1,165,637
Total liabilities and stockholders’ equity	$	2,084,757		$	1,548,831

CONDENSED STATEMENTS OF INCOME

	Years Ended December 31,
	2011			2010			2009
Revenues:
Service fees from subsidiaries	$	424,989		$	416,447		$	368,379
Investment income and other		2,030			4,208			2,476
Total revenues		427,019			420,655			370,855
Expenses:
Selling, general and administrative		362,502			321,367			262,684
Depreciation and amortization		32,442			28,375			27,256
Interest		20,422			15,871			16,225
Total expenses		415,366			365,613			306,165
Income before income taxes and equity earnings in subsidiaries		11,653			55,042			64,690
Income tax expense		(4,548	)		(24,155	)		(465	)
Equity earnings in subsidiaries		188,516			242,484			85,054
Net income	$	195,621		$	273,371		$	149,279
Net income per share:
Basic net income per share	$	4.10		$	5.52		$	2.89
Weighted average number of common shares outstanding		47,731,265			49,522,202			51,647,267
Diluted net income per share	$	3.82		$	5.40		$	2.85
Weighted average number of common shares and dilutive potential common shares outstanding		51,163,108			50,608,008			52,309,268

CONDENSED STATEMENTS OF CASH FLOWS

	Years Ended December 31,
	2011			2010			2009
Cash flows from operating activities:
Net income	$	195,621		$	273,371		$	149,279
Adjustments to reconcile net income to net cash provided by operating activities:
Equity earnings in subsidiaries		(188,516	)		(242,484	)		(85,054	)
Depreciation and amortization		32,442			28,375			27,256
Loss on disposal or abandonment of property, equipment and software		399			361			121
Deferred tax benefit		(1,150	)		(9,937	)		(9,467	)
Compensation expense related to share-based payments		22,868			19,635			15,936
Non-cash interest expense		11,454			10,646			9,974
Gain on sale of contract rights		—			—			(5,810	)
Amortization (accretion) of investment premiums (discounts) and other		6,945			(152	)		(2,763	)
Changes in assets and liabilities (decreasing) increasing cash flows from operations:
Prepaid expenses and other current assets		(20,230	)		(683	)		(2,397	)
Other assets		(1,835	)		(689	)		(1,146	)
Accounts payable, accrued expenses and other current liabilities		(6,028	)		32,990			(28,215	)
Other long-term liabilities		(559	)		1,408			(1,480	)
Net cash provided by operating activities		51,411			112,841			66,234
Cash flows from investing activities:
Purchase of securities, net		(438,751	)		(14,541	)		(115,115	)
Purchase of property, equipment and software		(44,746	)		(27,814	)		(24,656	)
Contributions made to subsidiaries		(14,752	)		(11,012	)		(70,104	)
Dividends received from subsidiaries		175,344			61,687			71,700
Proceeds from sale of contract rights		—			—			5,810
Net cash (used in) provided by investing activities		(322,905	)		8,320			(132,365	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		400,000			—			—
Issuance costs of long-term debt		(5,793	)		—			—
Repayment of convertible notes principal		(120	)		—			—
Payment of conversion premium on converted notes		(82	)		—			—
Proceeds from convertible notes hedge instruments		82			—			—
Change in due from and due to subsidiaries, net		20,789			(8,321	)		(29,140	)
Repayment of borrowings under credit facility		—			—			(44,318	)
Proceeds from exercise of stock options and employee stock purchases		52,554			26,466			10,698
Repurchase of common stock shares		(175,718	)		(138,540	)		(69,751	)
Tax benefit related to share-based payments		18,677			3,097			842
Net cash provided by (used in) financing activities		310,389			(117,298	)		(131,669	)
Net increase (decrease) in cash and cash equivalents		38,895			3,863			(197,800	)
Cash and cash equivalents at beginning of year		62,189			58,326			256,126
Cash and cash equivalents at end of year	$	101,084		$	62,189		$	58,326