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SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
SCHEDULE I - PARENT COMPANY FINANCIAL INFORMATION
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
 December 31,
 20202019
 (in millions, except share
amounts)
ASSETS
Current assets:
Cash and cash equivalents$436 $1,006 
Investment securities336 355 
Receivable from operating subsidiaries1,187 1,248 
Other current assets763 778 
Total current assets2,722 3,387 
Property and equipment, net1,774 1,403 
Investments in subsidiaries17,005 14,763 
Equity method investment in Kindred at Home1,147 1,063 
Long-term investment securities836 32 
Other long-term assets686 746 
Total assets$24,170 $21,394 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Payable to operating subsidiaries$1,342 $1,975 
Current portion of notes payable to operating subsidiaries36 36 
Book overdraft120 40 
Short-term debt600 699 
Other current liabilities1,438 1,128 
Total current liabilities3,536 3,878 
Long-term debt6,060 4,967 
Other long-term liabilities846 512 
Total liabilities10,442 9,357 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $1 par; 10,000,000 shares authorized; none issued
— — 
Common stock, $0.16 2/3 par; 300,000,000 shares authorized;
    198,648,742 shares issued at December 31, 2020 and 198,629,992
    shares issued at December 31, 2019
33 33 
Capital in excess of par value2,705 2,820 
Retained earnings20,517 17,483 
Accumulated other comprehensive income (loss)391 156 
Treasury stock, at cost, 69,787,614 shares at December 31, 2020
     and 66,524,771 shares at December 31, 2019
(9,918)(8,455)
Total stockholders’ equity13,728 12,037 
Total liabilities and stockholders’ equity$24,170 $21,394 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF INCOME
 
 For the year ended December 31,
 202020192018
 (in millions)
Revenues:
Management fees charged to operating subsidiaries$2,216 $1,789 $1,666 
Investment and other income, net763 28 30 
2,979 1,817 1,696 
Expenses:
Operating costs2,204 1,577 1,468 
Depreciation397 387 342 
Interest283 242 218 
2,884 2,206 2,028 
Other expense (income), net60 (506)33 
Loss on sale of business— — 782 
Income (loss) before income taxes and equity in net earnings of subsidiaries35 117 (1,147)
Provision (benefit) for income taxes18 27 (542)
Income (loss) before equity in net earnings of subsidiaries17 90 (605)
Equity in net earnings of subsidiaries3,269 2,603 2,277 
Equity in net earnings of Kindred at Home81 14 11 
Net income$3,367 $2,707 $1,683 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
 For the year ended December 31,
 202020192018
 (in millions)
Net income$3,367 $2,707 $1,683 
Other comprehensive income (loss):
Change in gross unrealized investment gains/losses393 450 (189)
Effect of income taxes(89)(105)51 
Total change in unrealized investment
gains/losses, net of tax		304 345 (138)
Reclassification adjustment for net realized
gains included in investment income 		(90)(34)(53)
Effect of income taxes20 8 17 
Total reclassification adjustment, net of tax(70)(26)(36)
Other comprehensive income (loss), net of tax234 319 (174)
Comprehensive income (loss) attributable to our equity method
investment in Kindred at Home		1 (4)(4)
Comprehensive income$3,602 $3,022 $1,505 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF CASH FLOWS
 For the year ended December 31,
 202020192018
 (in millions)
Net cash provided by operating activities$2,531 $3,529 $2,719 
Cash flows from investing activities:
Acquisitions, net of cash acquired(709)— (354)
Acquisitions, equity method investment in Kindred at Home— — (1,095)
Capital contributions to operating subsidiaries(538)(423)(697)
Purchases of investment securities(460)(204)(145)
Proceeds from sale of investment securities13 15 35 
Maturities of investment securities411 134 59 
Purchases of property and equipment, net(785)(585)(465)
Net cash used in investing activities(2,068)(1,063)(2,662)
Cash flows from financing activities:
Proceeds from issuance of senior notes, net1,088 987 — 
Repayment of senior notes(400)(400)— 
Proceeds (repayments) from issuance of commercial paper, net295 (360)485 
Proceeds from term loan1,000 — 1,000 
Repayment of term loan(1,000)(650)(350)
Change in book overdraft80 2 (3)
Common stock repurchases(1,820)(1,070)(1,090)
Dividends paid(323)(291)(265)
Proceeds from stock option exercises and other47 57 48 
Net cash used in financing activities(1,033)(1,725)(175)
(Decrease) increase in cash and cash equivalents(570)741 (118)
Cash and cash equivalents at beginning of year1,006 265 383 
Cash and cash equivalents at end of year$436 $1,006 $265 
See accompanying notes to the parent company financial statements.
SCHEDULE I—PARENT COMPANY FINANCIAL INFORMATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
BASIS OF PRESENTATIONParent company financial information has been derived from our consolidated financial statements and excludes the accounts of all operating subsidiaries. This information should be read in conjunction with our consolidated financial statements.TRANSACTIONS WITH SUBSIDIARIES
Management Fee
Through intercompany service agreements approved, if required, by state regulatory authorities, Humana Inc., our parent company, charges a management fee for reimbursement of certain centralized services provided to its subsidiaries including information systems, disbursement, investment and cash administration, marketing, legal, finance, and medical and executive management oversight.
Dividends
Cash dividends received from subsidiaries and included as a component of net cash provided by operating activities were $1.3 billion in 2020, $1.8 billion in 2019, and $2.3 billion in 2018.
Guarantee
Through indemnity agreements approved by state regulatory authorities, certain of our regulated subsidiaries generally are guaranteed by our parent company in the event of insolvency for: (1) member coverage for which premium payment has been made prior to insolvency; (2) benefits for members then hospitalized until discharged; and (3) payment to providers for services rendered prior to insolvency. Our parent has also guaranteed the obligations of our military services subsidiaries and funding to maintain required statutory capital levels of certain other regulated subsidiaries.
REGULATORY REQUIREMENTS
Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash transfers to Humana Inc., our parent company, and require minimum levels of equity as well as limit investments to approved securities. The amount of dividends that may be paid to Humana Inc. by these subsidiaries, without prior approval by state regulatory authorities, or ordinary dividends, is limited based on the entity’s level of statutory income and statutory capital and surplus. If the dividend, together with other dividends paid within the preceding twelve months, exceeds a specified statutory limit or is paid from sources other than earned surplus, it is generally considered an extraordinary dividend requiring prior regulatory approval. In most states, prior notification is provided before paying a dividend even if approval is not required.
Although minimum required levels of equity are largely based on premium volume, product mix, and the quality of assets held, minimum requirements vary significantly at the state level. Our state regulated insurance subsidiaries had aggregate statutory capital and surplus of approximately $9.4 billion and $8.0 billion as of December 31, 2020 and 2019, respectively, which exceeded aggregate minimum regulatory requirements of $7.0 billion and $5.9 billion, respectively. The amount of ordinary dividends that may be paid to our parent company in 2021 is approximately $1.4 billion in the aggregate. The amount, timing and mix of ordinary and extraordinary dividend payments will vary due to state regulatory requirements, the level of excess statutory capital and surplus and expected future surplus requirements related to, for example, premium volume and product mix. Actual dividends that were paid to our parent company were approximately $1.3 billion in 2020, $1.8 billion in 2019, and $2.3 billion in 2018.
Our use of operating cash flows derived from our non-insurance subsidiaries, such as in our Healthcare Services segment, is generally not restricted by state departments of insurance (or comparable state regulators).ACQUISITIONS AND DIVESTITURESRefer to Notes 3 and 4 of the notes to consolidated financial statements in this Annual Report on Form 10-K for a description of certain acquisitions and divestitures. During 2020, 2019 and 2018, we funded certain non-regulated subsidiary acquisitions with contributions from Humana Inc., our parent company, included in capital contributions in the condensed statement of cash flows.INCOME TAXESRefer to Note 12 of the notes to consolidated financial statements included in this Annual Report on Form 10-K for a description of income taxes.DEBTRefer to Note 13 of the notes to consolidated financial statements included in this Annual Report on Form 10-K for a description of debt.STOCKHOLDERS' EQUITYRefer to Note 16 of the notes to consolidated financial statements included in this Annual Report on Form 10-K for a description of stockholders’ equity, including stock repurchases and stockholder dividends.