Cash Flow

CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

 
 

Nine Months Ended
September 30,

 

2022

 

2021

Cash flows from operating activities:

     

Net earnings

$           1,421

 

$              743

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization

1,178

 

1,098

Stock compensation expense

180

 

127

Impairment

1,739

 

229

(Gain) loss on debt extinguishment

(26)

 

125

(Gain) on acquisition

(2)

 

(309)

Deferred income taxes

(682)

 

(143)

(Gain) loss on divestitures

(503)

 

62

Other adjustments, net

164

 

(6)

Changes in assets and liabilities

     

Premium and trade receivables

(1,274)

 

(1,723)

Other assets

152

 

(124)

Medical claims liabilities

1,976

 

1,661

Unearned revenue

1,964

 

(169)

Accounts payable and accrued expenses

686

 

993

Other long-term liabilities

863

 

964

Other operating activities, net

1

 

2

Net cash provided by operating activities

7,837

 

3,530

Cash flows from investing activities:

     

Capital expenditures

(771)

 

(662)

Purchases of investments

(5,118)

 

(5,253)

Sales and maturities of investments

2,842

 

4,069

Acquisitions, net of cash acquired

(1,457)

 

(534)

Divestiture proceeds, net of divested cash

1,362

 

(62)

Net cash used in investing activities

(3,142)

 

(2,442)

Cash flows from financing activities:

     

Proceeds from long-term debt

357

 

9,247

Payments and repurchases of long-term debt

(1,202)

 

(7,411)

Common stock repurchases

(1,663)

 

(49)

Payments for debt extinguishment

(14)

 

(157)

Debt issuance costs

 

(72)

Other financing activities, net

57

 

39

Net cash (used in) provided by financing activities

(2,465)

 

1,597

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(37)

 

(8)

Net increase in cash, cash equivalents, and restricted cash and cash equivalents

2,193

 

2,677

Cash and cash equivalents reclassified from (to) held for sale

(192)

 

Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period

13,214

 

10,957

Cash, cash equivalents, and restricted cash and cash equivalents, end of period

$         15,215

 

$         13,634

Supplemental disclosures of cash flow information:

     

Interest paid

$              462

 

$              479

Income taxes paid

$              448

 

$              477

       

The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents reported within the
Consolidated Balance Sheets to the totals above:

 

September 30,

 

2022

 

2021

Cash and cash equivalents

$         14,987

 

$         13,423

Restricted cash and cash equivalents, included in restricted deposits

228

 

211

Total cash, cash equivalents, and restricted cash and cash equivalents

$         15,215

 

$         13,634