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Schedule II-Condensed Financial Information Of Registrant
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Schedule II-Condensed Financial Information Of Registrant
Anthem, Inc. (Parent Company Only)
Balance Sheets
(In millions, except share data)
December 31,
2019
 
December 31,
2018
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
1,818

 
$
1,290

Fixed maturity securities, current (amortized cost of $592 and $589)
602

 
573

Equity securities, current
253

 
86

Other invested assets, current
4

 
10

Other receivables
92

 
131

Income taxes receivable
170

 
—

Net due from subsidiaries
602

 
170

Securities lending collateral
17

 
35

Other current assets
462

 
320

Total current assets
4,020

 
2,615

Long-term investments:
 
 
 
Equity securities
6

 
6

Other invested assets, long-term
651

 
616

Property and equipment, net
170

 
186

Deferred tax assets, net
216

 
209

Investments in subsidiaries
47,423

 
44,877

Other noncurrent assets
263

 
225

Total assets
$
52,749

 
$
48,734

Liabilities and shareholders’ equity
 
 
 
Liabilities
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
887

 
$
1,429

Security trades pending payable
9

 
—

Securities lending payable
17

 
35

Income taxes payable
—

 
112

Current portion of long-term debt
1,598

 
849

Other current liabilities
237

 
235

Total current liabilities
2,748

 
2,660

Long-term debt, less current portion
17,762

 
17,192

Other noncurrent liabilities
511

 
341

Total liabilities
21,021

 
20,193

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 - 252,922,161 and 257,395,577
3

 
3

Additional paid-in capital
9,448

 
9,536

Retained earnings
22,573

 
19,988

Accumulated other comprehensive loss
(296
)
 
(986
)
Total shareholders’ equity
31,728

 
28,541

Total liabilities and shareholders’ equity
$
52,749

 
$
48,734

 
Anthem, Inc. (Parent Company Only)
Statements of Income
 
Years ended December 31
(In millions)
2019
 
2018
 
2017
Revenues
 
 
 
 
 
Net investment income
$
81

 
$
39

 
$
64

Net realized losses on financial instruments
(65
)
 
(46
)
 
(18
)
Other-than-temporary impairment losses on investments:

 
 
 
 
Total other-than-temporary impairment losses on investments
(23
)
 
(15
)
 
(7
)
Portion of other-than-temporary impairment losses recognized in other comprehensive income (loss)
3

 
—

 
—

Other-than-temporary impairment losses recognized in income
(20
)
 
(15
)
 
(7
)
Administrative fees and other revenue
22

 
2

 
—

Total revenues (losses)
18

 
(20
)
 
39

Expenses
 
 
 
 
 
General and administrative expense
88

 
86

 
437

Interest expense
723

 
723

 
727

Loss on extinguishment of debt
2

 
11

 
283

Total expenses
813

 
820

 
1,447

Loss before income tax credits and equity in net income of subsidiaries
(795
)
 
(840
)
 
(1,408
)
Income tax credits
(251
)
 
(238
)
 
(216
)
Equity in net income of subsidiaries
5,351

 
4,352

 
5,035

Net income
$
4,807

 
$
3,750

 
$
3,843


Anthem, Inc. (Parent Company Only)
Statements of Comprehensive Income
 
Years ended December 31
(in millions)
2019
 
2018
 
2017
Net income
$
4,807

 
$
3,750

 
$
3,843

Other comprehensive income, net of tax:

 
 
 
 
Change in net unrealized gains/losses on investments
680

 
(418
)
 
173

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

 
(2
)
 
4

Change in net unrealized gains/losses on cash flow hedges
(16
)
 
37

 
(65
)
Change in net periodic pension and postretirement costs
26

 
(90
)
 
51

Foreign currency translation adjustments
—

 
(1
)
 
3

Other comprehensive income (loss)
690

 
(474
)
 
166

Total comprehensive income
$
5,497

 
$
3,276

 
$
4,009

 
Anthem, Inc. (Parent Company Only)
Statements of Cash Flows
 
Years ended December 31
(In millions)
2019
 
2018
 
2017
Operating activities
 
 
 
 
 
Net income
$
4,807

 
$
3,750

 
$
3,843

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

 
 
 
 
Undistributed earnings of subsidiaries
(1,561
)
 
(744
)
 
(2,437
)
Net realized losses on financial instruments
65

 
46

 
18

Other-than-temporary impairment losses recognized in income
20

 
15

 
7

Loss on extinguishment of debt
2

 
11

 
283

Deferred income taxes
2

 
(43
)
 
(33
)
Amortization, net of accretion
37

 
43

 
25

Depreciation expense
69

 
70

 
69

Share-based compensation
294

 
226

 
170

Changes in operating assets and liabilities:

 
 
 
 
Receivables, net
41

 
(73
)
 
(17
)
Other invested assets, current
6

 
(5
)
 
(1
)
Other assets
(235
)
 
(225
)
 
(102
)
Amounts due (from)/ to subsidiaries
(432
)
 
2,259

 
(1,034
)
Accounts payable and accrued expenses
(608
)
 
303

 
491

Other liabilities
186

 
154

 
(61
)
Income taxes
(282
)
 
187

 
(6
)
Other, net
—

 
1

 
(2
)
Net cash provided by operating activities
2,411

 
5,975

 
1,213

Investing activities
 
 
 
 
 
Purchases of investments
(9,682
)
 
(800
)
 
(3,814
)
Proceeds from sales, maturities, calls and redemptions of investments
9,457

 
1,865

 
2,595

Changes in collateral and settlement of non-hedging derivatives
—

 
—

 
65

Capitalization of subsidiaries
(232
)
 
(4,379
)
 
(124
)
Changes in securities lending collateral
18

 
(21
)
 
25

Purchases of property and equipment, net of sales
(54
)
 
(137
)
 
(44
)
Other, net
—

 
4

 
18

Net cash used in investing activities
(493
)
 
(3,468
)
 
(1,279
)
Financing activities
 
 
 
 
 
Net (repayments of) proceeds from commercial paper borrowings
(297
)
 
(107
)
 
175

Proceeds from long-term borrowings
2,473

 
835

 
5,458

Repayments of long-term borrowings
(1,123
)
 
(1,684
)
 
(2,815
)
Changes in securities lending payable
(18
)
 
21

 
(25
)
Changes in bank overdrafts
64

 
(107
)
 
51

Premiums paid on equity call options
(1
)
 
—

 
—

Proceeds from sale of put options
—

 
1

 
1

Proceeds from issuance of common stock under Equity Units stock purchase contracts
—

 
1,250

 
—

Repurchase and retirement of common stock
(1,701
)
 
(1,685
)
 
(1,998
)
Change in collateral and settlements of debt-related derivatives
(34
)
 
23

 
(149
)
Cash dividends
(856
)
 
(812
)
 
(737
)
Proceeds from issuance of common stock under employee stock plans
187

 
173

 
225

Taxes paid through withholding of common stock under employee stock plans
(84
)
 
(81
)
 
(47
)
Net cash (used in) provided by financing activities
(1,390
)
 
(2,173
)
 
139

Change in cash and cash equivalents
528

 
334

 
73

Cash and cash equivalents at beginning of year
1,290

 
956

 
883

Cash and cash equivalents at end of year
$
1,818

 
$
1,290

 
$
956

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 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 $3,790, $3,606 and $2,268 during 2019, 2018 and 2017, 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 $38, $36 and $32 during 2019, 2018 and 2017, respectively.
Investments in Subsidiaries
Capital contributions to subsidiaries were $232, $4,379 and $124 during 2019, 2018 and 2017, respectively.
Amounts Due to and From Subsidiaries
At December 31, 2019 and 2018, Anthem reported amounts due from subsidiaries of $602 and $170, respectively. The amounts due from subsidiaries primarily include amounts for allocated administrative expenses or daily cash management activities. These items are routinely settled, and as such, are classified as current assets or liabilities.
Guarantees on Behalf of Subsidiaries
Anthem guarantees contractual or financial obligations or solvency requirements for certain of its subsidiaries. These guarantees approximated $569 at December 31, 2019. There were no payments made on these guarantees in 2019.
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.
7. Leases
Beginning in 2019, certain of our leases, including the lease for our principal executive offices located at 220 Virginia Avenue, Indianapolis, Indiana, are obligations of Anthem, Inc. (Parent Company). At December 31, 2019, these leases had an aggregate right-of-use asset of $99, a lease liability balance of $83, operating lease expense of $7 and future lease payments as follows: 2020, $11; 2021, $11; 2022, $11; 2023, $12; 2024, $11; and thereafter $70. All other information regarding leases is contained in Note 17, “Leases,” 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.