Schedule II-Condensed Financial Information Of Registrant

12 Months Ended

Dec. 31, 2017

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, 2017			December 31, 2016
Assets
Current assets:
Cash and cash equivalents	$	956.0		$	882.7
Investments available-for-sale, at fair value:
Fixed maturity securities (amortized cost of $341.7 and $463.4)	345.5			477.6
Equity securities (cost of $1,400.9 and $35.7)	1,458.3			85.5
Other invested assets, current	5.5			4.6
Other receivables	60.6			47.8
Income taxes receivable	75.4			69.0
Net due from subsidiaries	2,428.5			1,394.6
Securities lending collateral	14.5			39.7
Other current assets	227.8			277.0
Total current assets	5,572.1			3,278.5
Long-term investments available-for-sale, at fair value:
Fixed maturity securities (amortized cost of $0.4 and $0.0)	0.4			—
Equity securities (cost of $6.3 and $6.4)	6.3			6.4
Other invested assets, long-term	644.2			632.4
Property and equipment, net	117.6			142.8
Deferred tax assets, net	161.8			107.5
Investments in subsidiaries	40,211.2			37,378.8
Other noncurrent assets	88.5			87.6
Total assets	$	46,802.1		$	41,634.0
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	1,232.5		$	690.2
Security trades pending payable	11.1			18.2
Securities lending payable	14.5			39.7
Current portion of long-term debt	1,274.6			928.4
Other current liabilities	219.0			301.4
Total current liabilities	2,751.7			1,977.9
Long-term debt, less current portion	17,356.7			14,333.6
Other noncurrent liabilities	190.8			222.1
Total liabilities	20,299.2			16,533.6
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 - 256,084,913 and 263,747,395	2.6			2.6
Additional paid-in capital	8,547.4			8,805.1
Retained earnings	18,054.4			16,560.6
Accumulated other comprehensive loss	(101.5		)	(267.9		)
Total shareholders’ equity	26,502.9			25,100.4
Total liabilities and shareholders’ equity	$	46,802.1		$	41,634.0

Anthem, Inc. (Parent Company Only)

Statements of Income

	Years ended December 31
(In millions)	2017			2016			2015
Revenues
Net investment income	$	64.3		$	74.7		$	99.7
Net realized losses on financial instruments	(18.2		)	(195.0		)	(3.8		)
Other-than-temporary impairment losses on investments:
Total other-than-temporary impairment losses on investments	(7.6		)	(65.0		)	(49.2		)
Portion of other-than-temporary impairment losses recognized in other comprehensive income	0.1			17.2			10.0
Other-than-temporary impairment losses recognized in income	(7.5		)	(47.8		)	(39.2		)
Other revenue	—			—			3.5
Total revenues (losses)	38.6			(168.1		)	60.2
Expenses
General and administrative expense	437.2			270.0			77.9
Interest expense	726.5			719.3			649.7
Loss (gain) on extinguishment of debt	282.4			—			(9.3		)
Total expenses	1,446.1			989.3			718.3
Loss before income tax credits and equity in net income of subsidiaries	(1,407.5		)	(1,157.4		)	(658.1		)
Income tax credits	(215.5		)	(438.5		)	(270.1		)
Equity in net income of subsidiaries	5,034.8			3,188.7			2,948.0
Net income	$	3,842.8		$	2,469.8		$	2,560.0

Anthem, Inc. (Parent Company Only)

Statements of Comprehensive Income

	Years ended December 31
(in millions)	2017			2016			2015
Net income	$	3,842.8		$	2,469.8		$	2,560.0
Other comprehensive income (loss), net of tax:
Change in net unrealized gains/losses on investments	172.5			117.9			(384.3		)
Change in non-credit component of other-than-temporary impairment losses on investments	4.4			5.4			(5.6		)
Change in net unrealized gains/losses on cash flow hedges	(64.6		)	(87.3		)	(45.2		)
Change in net periodic pension and postretirement costs	51.3			(13.4		)	(26.0		)
Foreign currency translation adjustments	2.8			2.1			(3.4		)
Other comprehensive income (loss)	166.4			24.7			(464.5		)
Total comprehensive income	$	4,009.2		$	2,494.5		$	2,095.5

Anthem, Inc. (Parent Company Only)

Statements of Cash Flows

	Years ended December 31
(In millions)	2017			2016			2015
Operating activities
Net income	$	3,842.8		$	2,469.8		$	2,560.0
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries	(2,436.7		)	(502.4		)	(287.8		)
Net realized losses on financial instruments	18.2			195.0			3.8
Other-than-temporary impairment losses recognized in income	7.5			47.8			39.2
Loss (gain) on extinguishment of debt	282.4			—			(9.3		)
Loss on disposal of assets	—			2.3			0.2
Deferred income taxes	(32.5		)	(7.0		)	55.0
Amortization, net of accretion	25.4			33.5			40.8
Depreciation expense	69.2			70.4			68.1
Share-based compensation	169.6			164.6			148.2
Excess tax benefits from share-based compensation	—			(53.5		)	(95.8		)
Changes in operating assets and liabilities:
Receivables, net	(17.1		)	17.5			(17.9		)
Other invested assets, current	(0.9		)	1.3			(0.2		)
Other assets	(102.0		)	213.2			(106.9		)
Amounts due from/to subsidiaries	(1,033.9		)	(1,487.8		)	420.5
Accounts payable and accrued expenses	490.5			43.9			103.4
Other liabilities	(61.0		)	(30.7		)	(231.4		)
Income taxes	(6.4		)	198.4			47.2
Other, net	(2.3		)	5.1			(10.2		)
Net cash provided by operating activities	1,212.8			1,381.4			2,726.9
Investing activities
Purchases of investments	(3,814.3		)	(2,874.9		)	(2,130.7		)
Proceeds from sales, maturities, calls and redemptions of investments	2,594.7			3,309.8			3,076.6
Changes in collateral and settlement of non-hedging derivatives	64.9			(34.5		)	(36.5		)
Capitalization of subsidiaries	(124.2		)	(295.0		)	(939.7		)
Changes in securities lending collateral	25.0			91.8			94.0
Purchases of property and equipment, net of sales	(44.0		)	(98.7		)	(51.1		)
Other, net	18.7			(7.9		)	1.5
Net cash (used in) provided by investing activities	(1,279.2		)	90.6			14.1
Financing activities
Net proceeds from (repayments of) commercial paper borrowings	174.6			(53.2		)	682.2
Proceeds from long-term borrowings	5,457.8			—			1,226.5
Repayments of long-term borrowings	(2,815.1		)	—			(2,697.2		)
Changes in securities lending payable	(25.2		)	(90.9		)	(94.2		)
Changes in bank overdrafts	51.8			30.8			(89.3		)
Premiums paid on equity call options	—			—			(16.7		)
Proceeds from sale of put options	0.9			—			16.6
Repurchase and retirement of common stock	(1,997.7		)	—			(1,515.8		)
Change in collateral and settlements of debt-related derivatives	(149.0		)	(360.4		)	—
Cash dividends	(737.2		)	(715.1		)	(686.5		)
Proceeds from issuance of common stock under employee stock plans	225.3			119.4			186.0
Taxes paid through withholding of common stock under employee stock plans	(46.5		)	(65.7		)	(95.9		)
Excess tax benefits from share-based compensation	—			53.5			95.8
Net cash provided by (used in) financing activities	139.7			(1,081.6		)	(2,988.5		)
Change in cash and cash equivalents	73.3			390.4			(247.5		)
Cash and cash equivalents at beginning of year	882.7			492.3			739.8
Cash and cash equivalents at end of year	$	956.0		$	882.7		$	492.3

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.

Certain prior year amounts have been reclassified to conform to the current year presentation.

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 Part II, Item 8 of this Annual Report on Form 10-K.

2. Subsidiary Transactions

Dividends from Subsidiaries

Anthem received cash dividends from subsidiaries of $2,268.0, $2,688.8 and $2,672.3 during 2017, 2016 and 2015, 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 $32.3, $31.1 and $29.9 during 2017, 2016 and 2015, respectively.

Investments in Subsidiaries

Capital contributions to subsidiaries were $124.2, $295.0 and $939.7 during 2017, 2016 and 2015, respectively.

Amounts Due to and From Subsidiaries

At December 31, 2017 and 2016, Anthem reported amounts due from subsidiaries of $2,428.5 and $1,394.6, respectively. The amounts due 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, included in Part II, Item 8 of this Annual Report on Form 10-K, 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, included in Part II, Item 8 of this Annual Report on Form 10-K, 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, included in Part II, Item 8 of this Annual Report on Form 10-K, 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, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.