Cash Flow

 CENTENE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions, unaudited)

 

 

Three Months Ended March 31,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net earnings

$                1,130

 

$                   852

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

 

 

 

Depreciation and amortization

346

 

390

Stock compensation expense

61

 

70

Impairment

20

 

(Gain) loss on debt extinguishment

 

(3)

Deferred income taxes

(159)

 

12

(Gain) on divestiture

(79)

 

Other adjustments, net

7

 

22

Changes in assets and liabilities

 

 

 

Premium and trade receivables

(1,938)

 

(3,099)

Other assets

(315)

 

(299)

Medical claims liabilities

759

 

1,767

Unearned revenue

1,919

 

81

Accounts payable and accrued expenses

1,548

 

957

Other long-term liabilities

970

 

401

Net cash provided by operating activities

4,269

 

1,151

Cash flows from investing activities:

 

 

 

Capital expenditures

(225)

 

(242)

Purchases of investments

(1,619)

 

(1,700)

Sales and maturities of investments

1,148

 

1,047

Acquisitions, net of cash acquired

 

(1,504)

Divestiture proceeds, net of divested cash

443

 

Other investing activities, net

 

(2)

Net cash (used in) investing activities

(253)

 

(2,401)

Cash flows from financing activities:

 

 

 

Proceeds from long-term debt

287

 

100

Payments and repurchases of long-term debt

 

(526)

Common stock repurchases

(423)

 

(71)

Proceeds from common stock issuances

 

27

Payments for debt extinguishment

 

(27)

Purchase of noncontrolling interest

(58)

 

Other financing activities, net

11

 

(1)

Net cash (used in) financing activities

(183)

 

(498)

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

2

 

33

Net increase (decrease) in cash, cash equivalents, and restricted cash and cash
equivalents

3,835

 

(1,715)

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

$               16,165

 

$               11,499

Supplemental disclosures of cash flow information:

 

 

 

Interest paid

$                    144

 

$                    139

Income taxes paid

$                      11

 

$                      11

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:

 

2023

 

2022

Cash and cash equivalents

$               15,853

 

$               11,237

Restricted cash and cash equivalents, included in restricted deposits

312

 

262

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

$               16,165

 

$               11,499