Cash Flow
CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) |
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Year Ended December 31, |
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2023 |
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2022 |
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(Unaudited) |
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Cash flows from operating activities: |
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Net earnings |
$ 2,699 |
|
$ 1,202 |
Adjustments to reconcile net earnings to net cash provided by operating activities |
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Depreciation and amortization |
1,293 |
|
1,430 |
Stock compensation expense |
216 |
|
234 |
Impairment |
529 |
|
2,318 |
(Gain) loss on debt extinguishment |
— |
|
(25) |
(Gain) on acquisition |
— |
|
(2) |
Deferred income taxes |
(78) |
|
(631) |
(Gain) loss on divestitures, net |
(152) |
|
(772) |
Loss on disposal of equipment |
— |
|
221 |
Other adjustments, net |
172 |
|
(31) |
Changes in assets and liabilities |
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Premium and trade receivables |
(2,380) |
|
(1,627) |
Other assets |
5 |
|
128 |
Medical claims liabilities |
1,261 |
|
2,397 |
Unearned revenue |
238 |
|
31 |
Accounts payable and accrued expenses |
3,398 |
|
421 |
Other long-term liabilities |
856 |
|
842 |
Other operating activities, net |
(4) |
|
125 |
Net cash provided by operating activities |
8,053 |
|
6,261 |
Cash flows from investing activities: |
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Capital expenditures |
(799) |
|
(1,004) |
Purchases of investments |
(6,622) |
|
(6,736) |
Sales and maturities of investments |
5,523 |
|
3,802 |
Acquisitions, net of cash acquired |
— |
|
(1,460) |
Divestiture proceeds, net of divested cash |
707 |
|
2,477 |
Net cash (used in) investing activities |
(1,191) |
|
(2,921) |
Cash flows from financing activities: |
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Proceeds from long-term debt |
2,335 |
|
360 |
Payments and repurchases of long-term debt |
(2,316) |
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(1,490) |
Common stock repurchases |
(1,633) |
|
(3,096) |
Proceeds from common stock issuances |
44 |
|
70 |
Payments for debt extinguishment |
— |
|
(14) |
Purchase of noncontrolling interest |
(88) |
|
— |
Other financing activities, net |
— |
|
(27) |
Net cash (used in) financing activities |
(1,658) |
|
(4,197) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(32) |
|
(11) |
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents |
5,172 |
|
(868) |
Cash and cash equivalents reclassified from (to) held for sale |
(50) |
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(16) |
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 |
$ 17,452 |
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$ 12,330 |
Supplemental disclosures of cash flow information: |
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Interest paid |
$ 688 |
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$ 657 |
Income taxes paid |
$ 883 |
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$ 1,222 |
Equity issued in connection with acquisitions |
$ — |
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$ 60 |
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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: |
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December 31, |
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2023 |
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2022 |
Cash and cash equivalents |
$ 17,193 |
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$ 12,074 |
Restricted cash and cash equivalents, included in restricted deposits |
259 |
|
256 |
Total cash, cash equivalents and restricted cash and cash equivalents |
$ 17,452 |
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$ 12,330 |