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Schedule II-Condensed Financial Information Of Registrant
 12 Months Ended
Dec. 31, 2016
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,
2016
 
December 31,
2015
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
882.7

 
$
492.3

Investments available-for-sale, at fair value:

 
 
Fixed maturity securities (amortized cost of $463.4 and $889.6)
477.6

 
794.0

Equity securities (cost of $35.7 and $53.0)
85.5

 
82.0

Other invested assets, current
4.6

 
5.9

Other receivables
47.8

 
77.0

Income taxes receivable
69.0

 
236.5

Net due from subsidiaries
1,394.6

 
—

Securities lending collateral
39.7

 
130.6

Other current assets
277.0

 
394.0

Total current assets
3,278.5

 
2,212.3

Long-term investments available-for-sale, at fair value:
 
 
 
Equity securities (cost of $6.4 and $6.5)
6.4

 
6.5

Other invested assets, long-term
632.4

 
630.1

Property and equipment, net
142.8

 
116.8

Deferred tax assets, net
107.5

 
146.6

Investments in subsidiaries
37,378.8

 
36,524.4

Other noncurrent assets
87.6

 
129.8

Total assets
$
41,634.0

 
$
39,766.5

Liabilities and shareholders’ equity
 
 
 
Liabilities
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
690.2

 
$
615.5

Security trades pending payable
18.2

 
13.4

Securities lending payable
39.7

 
130.6

Net due to subsidiaries
—

 
93.2

Current portion of long-term debt
928.4

 
—

Other current liabilities
301.4

 
278.1

Total current liabilities
1,977.9

 
1,130.8

Long-term debt, less current portion
14,333.6

 
15,299.6

Other noncurrent liabilities
222.1

 
292.0

Total liabilities
16,533.6

 
16,722.4

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 - 263,747,395 and 261,238,188
2.6

 
2.6

Additional paid-in capital
8,805.1

 
8,555.6

Retained earnings
16,560.6

 
14,778.5

Accumulated other comprehensive loss
(267.9
)
 
(292.6
)
Total shareholders’ equity
25,100.4

 
23,044.1

Total liabilities and shareholders’ equity
$
41,634.0

 
$
39,766.5

 
Anthem, Inc. (Parent Company Only)
Statements of Income
 
Years ended December 31
(In millions)
2016
 
2015
 
2014
Revenues
 
 
 
 
 
Net investment income
$
74.7

 
$
99.7

 
$
87.4

Net realized losses on financial instruments
(195.0
)
 
(3.8
)
 
(27.1
)
Other-than-temporary impairment losses on investments:

 
 
 
 
Total other-than-temporary impairment losses on investments
(65.0
)
 
(49.2
)
 
(35.5
)
Portion of other-than-temporary impairment losses recognized in other comprehensive income
17.2

 
10.0

 
7.0

Other-than-temporary impairment losses recognized in income
(47.8
)
 
(39.2
)
 
(28.5
)
Other revenue
—

 
3.5

 
4.8

Total (losses) revenues
(168.1
)
 
60.2

 
36.6

Expenses
 
 
 
 
 
General and administrative expense
270.0

 
77.9

 
20.3

Interest expense
719.3

 
649.7

 
597.8

(Gain) loss on extinguishment of debt
—

 
(9.3
)
 
81.1

Total expenses
989.3

 
718.3

 
699.2

Loss before income tax credits and equity in net income of subsidiaries
(1,157.4
)
 
(658.1
)
 
(662.6
)
Income tax credits
(438.5
)
 
(270.1
)
 
(255.4
)
Equity in net income of subsidiaries
3,188.7

 
2,948.0

 
2,976.9

Net income
$
2,469.8

 
$
2,560.0

 
$
2,569.7

Anthem, Inc. (Parent Company Only)
Statements of Comprehensive Income
 
Years ended December 31
(in millions)
2016
 
2015
 
2014
Net income
$
2,469.8

 
$
2,560.0

 
$
2,569.7

Other comprehensive income (loss), net of tax:

 
 
 
 
Change in net unrealized gains/losses on investments
117.9

 
(384.3
)
 
118.6

Change in non-credit component of other-than-temporary impairment losses on investments
5.4

 
(5.6
)
 
(3.9
)
Change in net unrealized gains/losses on cash flow hedges
(87.3
)
 
(45.2
)
 
(3.6
)
Change in net periodic pension and postretirement costs
(13.4
)
 
(26.0
)
 
(118.1
)
Foreign currency translation adjustments
2.1

 
(3.4
)
 
(4.3
)
Other comprehensive income (loss)
24.7

 
(464.5
)
 
(11.3
)
Total comprehensive income
$
2,494.5

 
$
2,095.5

 
$
2,558.4

 
Anthem, Inc. (Parent Company Only)
Statements of Cash Flows
 
Years ended December 31
(In millions)
2016
 
2015
 
2014
Operating activities
 
 
 
 
 
Net income
$
2,469.8

 
$
2,560.0

 
$
2,569.7

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

 
 
 
 
(Undistributed) distributed earnings of subsidiaries
(502.4
)
 
(287.8
)
 
244.3

Net realized losses on financial instruments
195.0

 
3.8

 
27.1

Other-than-temporary impairment losses recognized in income
47.8

 
39.2

 
28.5

(Gain) loss on extinguishment of debt
—

 
(9.3
)
 
81.1

Loss on disposal of assets
2.3

 
0.2

 
3.9

Deferred income taxes
(7.0
)
 
55.0

 
52.7

Amortization, net of accretion
33.5

 
40.8

 
17.5

Depreciation expense
70.4

 
68.1

 
67.4

Share-based compensation
164.6

 
148.2

 
168.9

Excess tax benefits from share-based compensation
(53.5
)
 
(95.8
)
 
(46.4
)
Changes in operating assets and liabilities:

 
 
 
 
Receivables, net
17.5

 
(17.9
)
 
(16.6
)
Other invested assets, current
1.3

 
(0.2
)
 
(3.8
)
Other assets
213.2

 
(106.9
)
 
55.6

Amounts due from/to subsidiaries
(1,487.8
)
 
420.5

 
566.1

Accounts payable and accrued expenses
(21.8
)
 
7.5

 
(111.4
)
Other liabilities
(30.7
)
 
(231.4
)
 
(113.8
)
Income taxes
198.4

 
47.2

 
(36.0
)
Other, net
5.1

 
(10.2
)
 
—

Net cash provided by operating activities
1,315.7

 
2,631.0

 
3,554.8

Investing activities
 
 
 
 
 
Purchases of investments
(2,874.9
)
 
(2,130.7
)
 
(1,819.3
)
Proceeds from sales, maturities, calls and redemptions of investments
3,309.8

 
3,076.6

 
820.7

Changes in collateral and settlement of non-hedging derivatives
(34.5
)
 
(36.5
)
 
(67.4
)
Capitalization of subsidiaries
(295.0
)
 
(939.7
)
 
(321.8
)
Changes in securities lending collateral
91.8

 
94.0

 
(178.8
)
Purchases of property and equipment, net of sales
(98.7
)
 
(51.1
)
 
(57.0
)
Other, net
(7.9
)
 
1.5

 
(38.0
)
Net cash provided by (used in) investing activities
90.6

 
14.1

 
(1,661.6
)
Financing activities
 
 
 
 
 
Net (repayments of) proceeds from commercial paper borrowings
(53.2
)
 
682.2

 
(379.2
)
Proceeds from long-term borrowings
—

 
1,226.5

 
2,700.0

Repayments of long-term borrowings
—

 
(2,697.2
)
 
(1,730.1
)
Changes in securities lending payable
(90.9
)
 
(94.2
)
 
178.6

Changes in bank overdrafts
30.8

 
(89.3
)
 
55.5

Premiums paid on equity call options
—

 
(16.7
)
 
—

Proceeds from sale of put options
—

 
16.6

 
—

Repurchase and retirement of common stock
—

 
(1,515.8
)
 
(2,998.8
)
Change in collateral and settlements of debt-related derivatives
(360.4
)
 
—

 
—

Cash dividends
(715.1
)
 
(686.5
)
 
(501.6
)
Proceeds from issuance of common stock under employee stock plans
119.4

 
186.0

 
301.3

Excess tax benefits from share-based compensation
53.5

 
95.8

 
46.4

Net cash used in financing activities
(1,015.9
)
 
(2,892.6
)
 
(2,327.9
)
Change in cash and cash equivalents
390.4

 
(247.5
)
 
(434.7
)
Cash and cash equivalents at beginning of year
492.3

 
739.8

 
1,174.5

Cash and cash equivalents at end of year
$
882.7

 
$
492.3

 
$
739.8

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 $2,688.8, $2,672.3 and $3,234.5 during 2016, 2015 and 2014, 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 $31.1, $29.9 and $20.9 during 2016, 2015 and 2014, respectively.
Investments in Subsidiaries
Capital contributions to subsidiaries were $295.0, $939.7 and $321.8 during 2016, 2015 and 2014, respectively.
Amounts Due to and From Subsidiaries
At December 31, 2016 and 2015, Anthem reported $1,394.6 due from subsidiaries and $93.2 due to 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.