Cash Flow

 CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

Six Months Ended June 30,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net earnings

$                2,185

 

$                   681

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

 

 

 

Depreciation and amortization

650

 

718

Stock compensation expense

117

 

129

Impairment

38

 

1,450

(Gain) loss on debt extinguishment

 

(16)

(Gain) on acquisition

 

(2)

Deferred income taxes

(160)

 

(417)

(Gain) on divestiture

(172)

 

Other adjustments, net

68

 

162

Changes in assets and liabilities

 

 

 

Premium and trade receivables

(319)

 

(1,288)

Other assets

(325)

 

(245)

Medical claims liabilities

139

 

2,089

Unearned revenue

1,895

 

75

Accounts payable and accrued expenses

618

 

41

Other long-term liabilities

2,081

 

1,058

Other operating activities, net

 

70

Net cash provided by operating activities

6,815

 

4,505

Cash flows from investing activities:

 

 

 

Capital expenditures

(440)

 

(524)

Purchases of investments

(3,199)

 

(3,114)

Sales and maturities of investments

2,293

 

2,005

Acquisitions, net of cash acquired

 

(1,512)

Divestiture proceeds, net of divested cash

669

 

Net cash (used in) investing activities

(677)

 

(3,145)

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

1,281

 

331

Payments and repurchases of long-term debt

(1,322)

 

(900)

Common stock repurchases

(828)

 

(420)

Proceeds from common stock issuances

21

 

38

Payments for debt extinguishment

 

(27)

Purchase of noncontrolling interest

(85)

 

Other financing activities, net

 

(6)

Net cash (used in) financing activities

(933)

 

(984)

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

(7)

 

(9)

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

5,198

 

367

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

12,330

 

13,214

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

$              17,528

 

$              13,581

Supplemental disclosures of cash flow information:

 

 

 

Interest paid

$                   348

 

$                   327

Income taxes paid

$                   592

 

$                   411

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:

 

June 30,

 

2023

 

2022

Cash and cash equivalents

$             17,170

 

$             13,435

Restricted cash and cash equivalents, included in restricted deposits

358

 

146

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

$             17,528

 

$             13,581