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Schedule II-Condensed Financial Information Of Registrant
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Schedule II-Condensed Financial Information Of Registrant
Anthem, Inc. (Parent Company Only)
Balance Sheets
(In millions, except share data)
December 31,
2015
 
December 31,
2014
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
492.3

 
$
739.8

Investments available-for-sale, at fair value:

 
 
Fixed maturity securities (amortized cost of $889.6 and $1,798.8)
794.0

 
1,753.4

Equity securities (cost of $53.0 and $148.7)
82.0

 
206.7

Other invested assets, current
5.9

 
5.7

Other receivables
77.0

 
44.6

Income taxes receivable
236.5

 
227.9

Net due from subsidiaries
—

 
327.3

Securities lending collateral
130.6

 
224.8

Other current assets
394.0

 
232.5

Total current assets
2,212.3

 
3,762.7

Long-term investments available-for-sale, at fair value:
 
 
 
Equity securities (cost of $6.5 and $6.6)
6.5

 
6.6

Other invested assets, long-term
630.1

 
654.5

Property and equipment, net
116.8

 
134.0

Deferred tax assets, net
146.6

 
—

Investments in subsidiaries
36,524.4

 
35,647.2

Other noncurrent assets
129.8

 
113.0

Total assets
$
39,766.5

 
$
40,318.0

Liabilities and shareholders’ equity
 
 
 
Liabilities
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
615.5

 
$
599.9

Security trades pending payable
13.4

 
14.0

Securities lending payable
130.6

 
224.8

Net due to subsidiaries
93.2

 
—

Current portion of long-term debt
—

 
624.3

Other current liabilities
278.1

 
280.1

Total current liabilities
1,130.8

 
1,743.1

Long-term debt, less current portion
15,299.6

 
13,994.7

Deferred tax liabilities, net
—

 
15.2

Other noncurrent liabilities
292.0

 
313.7

Total liabilities
16,722.4

 
16,066.7

Commitments and contingencies—Note 5


 


Shareholders’ equity
 
 
 
Preferred stock, without par value, shares authorized - 100,000,000; shares issued and outstanding - none
—

 
—

Common stock, par value $0.01, shares authorized - 900,000,000; shares issued and outstanding - 261,238,188 and 268,109,932
2.6

 
2.7

Additional paid-in capital
8,555.6

 
10,062.3

Retained earnings
14,778.5

 
14,014.4

Accumulated other comprehensive (loss) income
(292.6
)
 
171.9

Total shareholders’ equity
23,044.1

 
24,251.3

Total liabilities and shareholders’ equity
$
39,766.5

 
$
40,318.0

 


Anthem, Inc. (Parent Company Only)
Statements of Income
 
Years ended December 31
(In millions)
2015
 
2014
 
2013
Revenues
 
 
 
 
 
Net investment income
$
99.7

 
$
87.4

 
$
61.2

Net realized losses on investments
(3.8
)
 
(27.1
)
 
(83.2
)
Other-than-temporary impairment losses on investments:

 
 
 
 
Total other-than-temporary impairment losses on investments
(49.2
)
 
(35.5
)
 
(51.6
)
Portion of other-than-temporary impairment losses recognized in other comprehensive income
10.0

 
7.0

 
0.2

Other-than-temporary impairment losses recognized in income
(39.2
)
 
(28.5
)
 
(51.4
)
Other revenue
3.5

 
4.8

 
4.4

Total revenues (losses)
60.2

 
36.6

 
(69.0
)
Expenses
 
 
 
 
 
General and administrative expense
77.9

 
20.3

 
196.6

Interest expense
649.7

 
597.8

 
598.4

(Gain) loss on extinguishment of debt
(9.3
)
 
81.1

 
145.3

Total expenses
718.3

 
699.2

 
940.3

Loss before income tax credits and equity in net income of subsidiaries
(658.1
)
 
(662.6
)
 
(1,009.3
)
Income tax credits
(270.1
)
 
(255.4
)
 
(369.7
)
Equity in net income of subsidiaries
2,948.0

 
2,976.9

 
3,129.3

Net income
$
2,560.0

 
$
2,569.7

 
$
2,489.7

Anthem, Inc. (Parent Company Only)
Statements of Comprehensive Income
 
Years ended December 31
(in millions)
2015
 
2014
 
2013
Net income
$
2,560.0

 
$
2,569.7

 
$
2,489.7

Other comprehensive (loss) income, net of tax:

 
 
 
 
Change in net unrealized gains/losses on investments
(384.3
)
 
118.6

 
(294.7
)
Change in non-credit component of other-than-temporary impairment losses on investments
(5.6
)
 
(3.9
)
 
1.7

Change in net unrealized gains/losses on cash flow hedges
(45.2
)
 
(3.6
)
 
3.0

Change in net periodic pension and postretirement costs
(26.0
)
 
(118.1
)
 
172.7

Foreign currency translation adjustments
(3.4
)
 
(4.3
)
 
1.4

Other comprehensive loss
(464.5
)
 
(11.3
)
 
(115.9
)
Total comprehensive income
$
2,095.5

 
$
2,558.4

 
$
2,373.8

 
Anthem, Inc. (Parent Company Only)
Statements of Cash Flows
 
Years ended December 31
(In millions)
2015
 
2014
 
2013
Operating activities
 
 
 
 
 
Net income
$
2,560.0

 
$
2,569.7

 
$
2,489.7

Adjustments to reconcile net income to net cash provided by operating activities:

 
 
 
 
(Undistributed) distributed earnings of subsidiaries
(287.8
)
 
244.3

 
(78.5
)
Net realized losses on investments
3.8

 
27.1

 
83.2

Other-than-temporary impairment losses recognized in income
39.2

 
28.5

 
51.4

(Gain) loss on extinguishment of debt
(9.3
)
 
81.1

 
145.3

Loss on disposal of assets
0.2

 
3.9

 
3.6

Deferred income taxes
55.0

 
52.7

 
(4.5
)
Amortization, net of accretion
40.8

 
17.5

 
25.2

Depreciation expense
68.1

 
67.4

 
45.7

Share-based compensation
148.2

 
168.9

 
146.0

Excess tax benefits from share-based compensation
(95.8
)
 
(46.4
)
 
(30.1
)
Changes in operating assets and liabilities:

 
 
 
 
Receivables, net
(17.9
)
 
(16.6
)
 
3.5

Other invested assets, current
(0.2
)
 
(3.8
)
 
(0.3
)
Other assets
(106.9
)
 
55.6

 
42.3

Amounts due from/to subsidiaries
420.5

 
566.1

 
(983.1
)
Accounts payable and accrued expenses
7.5

 
(111.4
)
 
111.8

Other liabilities
(231.4
)
 
(113.8
)
 
(18.6
)
Income taxes
47.2

 
(36.0
)
 
83.9

Other, net
(10.2
)
 
—

 
—

Net cash provided by operating activities
2,631.0

 
3,554.8

 
2,116.5

Investing activities
 
 
 
 
 
Purchases of investments
(2,130.7
)
 
(1,819.3
)
 
(1,964.3
)
Proceeds from sales, maturities, calls and redemptions of investments
3,076.6

 
820.7

 
2,443.3

Settlement of non-hedging derivatives
(36.5
)
 
(67.4
)
 
(109.8
)
Capitalization of subsidiaries
(939.7
)
 
(321.8
)
 
(121.2
)
Changes in securities lending collateral
94.0

 
(178.8
)
 
(17.0
)
Purchases of property and equipment, net of sales
(51.1
)
 
(57.0
)
 
(87.4
)
Other, net
1.5

 
(38.0
)
 
(18.9
)
Net cash provided by (used in) investing activities
14.1

 
(1,661.6
)
 
124.7

Financing activities
 
 
 
 
 
Net proceeds from (repayments of) commercial paper borrowings
682.2

 
(379.2
)
 
(191.7
)
Proceeds from long-term borrowings
1,226.5

 
2,700.0

 
1,250.0

Repayments of long-term borrowings
(2,697.2
)
 
(1,730.1
)
 
(1,245.0
)
Changes in securities lending payable
(94.2
)
 
178.6

 
17.1

Changes in bank overdrafts
(89.3
)
 
55.5

 
71.8

Premiums paid on equity call options
(16.7
)
 
—

 
(25.8
)
Proceeds from sale of put options
16.6

 
—

 
—

Repurchase and retirement of common stock
(1,515.8
)
 
(2,998.8
)
 
(1,620.1
)
Cash dividends
(686.5
)
 
(501.6
)
 
(465.9
)
Proceeds from issuance of common stock under employee stock plans
186.0

 
301.3

 
524.7

Excess tax benefits from share-based compensation
95.8

 
46.4

 
30.1

Net cash used in financing activities
(2,892.6
)
 
(2,327.9
)
 
(1,654.8
)
Change in cash and cash equivalents
(247.5
)
 
(434.7
)
 
586.4

Cash and cash equivalents at beginning of year
739.8

 
1,174.5

 
588.1

Cash and cash equivalents at end of year
$
492.3

 
$
739.8

 
$
1,174.5

1. Basis of Presentation and Significant Accounting Policies
In the parent company only financial statements of Anthem, Inc., or Anthem, Anthem’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of the subsidiaries. Anthem’s share of net income of its unconsolidated subsidiaries is included in income using the equity method of accounting.
Certain amounts presented in the parent company only financial statements are eliminated in the consolidated financial statements of Anthem.
Anthem’s parent company only financial statements should be read in conjunction with Anthem’s audited consolidated financial statements and the accompanying notes included in this Annual Report on Form 10-K.
2. Subsidiary Transactions
Dividends from Subsidiaries
Anthem received cash dividends from subsidiaries of $2,672.3, $3,234.5 and $3,046.5 during 2015, 2014 and 2013, respectively.
Dividends to Subsidiaries
Certain subsidiaries of Anthem own shares of Anthem common stock. Anthem paid cash dividends to subsidiaries related to these shares of common stock in the amount of $29.9, $20.9 and $17.9 during 2015, 2014 and 2013, respectively.
Investments in Subsidiaries
Capital contributions to subsidiaries were $939.7, $321.8 and $121.2 during 2015, 2014 and 2013, respectively.
Amounts Due to and From Subsidiaries
At December 31, 2015 and 2014, Anthem reported $93.2 due to subsidiaries and $327.3 due from subsidiaries, respectively. The amounts due to or from subsidiaries primarily include amounts for allocated administrative expenses or cash held overnight at the parent level resulting from daily cash management activities. These items are routinely settled, and as such, are classified as current assets or liabilities.
3. Derivative Financial Instruments
The information regarding derivative financial instruments contained in Note 5, “Derivative Financial Instruments,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries is incorporated herein by reference.
4. Long-Term Debt
The information regarding long-term debt contained in Note 12, “Debt,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries is incorporated herein by reference.
5. Commitments and Contingencies
The information regarding commitments and contingencies contained in Note 13, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries is incorporated herein by reference.
6. Capital Stock
The information regarding capital stock contained in Note 14, “Capital Stock,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries is incorporated herein by reference.