2014 Q4 Form 10-K Financial Statement

#000004907116000117 Filed on February 18, 2016

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2014 Q2
Revenue $12.33B $12.24B $12.22B
YoY Change 21.02% 18.6% 18.42%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.898B $1.835B
YoY Change 23.25% 25.6%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $124.0M $112.0M $106.0M
YoY Change 8.77% 5.66% 1.92%
% of Gross Profit
Operating Expenses $11.96B $1.898B $1.835B
YoY Change 17.21% 23.25% 25.6%
Operating Profit $589.0M $681.0M
YoY Change -5.15% -1.16%
Interest Expense -$84.00M $38.00M $35.00M
YoY Change 140.0% 8.57% 0.0%
% of Operating Profit 6.45% 5.14%
Other Income/Expense, Net
YoY Change
Pretax Income $287.0M $551.0M $646.0M
YoY Change -685.71% -5.97% -1.22%
Income Tax $142.0M $261.0M $302.0M
% Of Pretax Income 49.48% 47.37% 46.75%
Net Earnings $145.0M $290.0M $344.0M
YoY Change -583.33% -21.2% -18.1%
Net Earnings / Revenue 1.18% 2.37% 2.81%
Basic Earnings Per Share $0.96 $1.87 $2.22
Diluted Earnings Per Share $0.94 $1.85 $2.19
COMMON SHARES
Basic Shares Outstanding 154.5M shares 155.4M shares
Diluted Shares Outstanding 156.2M shares 157.0M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $9.533B $10.79B $9.158B
YoY Change 3.31% 13.41% 0.91%
Cash & Equivalents $1.935B $2.705B $1.593B
Short-Term Investments $7.598B $8.088B $7.565B
Other Short-Term Assets $4.007B $3.839B $2.854B
YoY Change 88.83% 72.0% 45.61%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $15.54B $15.64B $14.09B
YoY Change 26.31% 24.36% 11.55%
LONG-TERM ASSETS
Property, Plant & Equipment $1.228B $1.349B $1.289B
YoY Change 0.82% 14.32% 13.77%
Goodwill $3.231B $3.695B $3.696B
YoY Change -0.68% -0.57% 1.59%
Intangibles $440.0M $607.0M $629.0M
YoY Change -36.51% -16.16% -6.81%
Long-Term Investments $9.547B $10.04B $9.460B
YoY Change -2.58% -8.54% 1.44%
Other Assets $1.583B $1.704B $2.155B
YoY Change -10.77% 0.41% 28.35%
Total Long-Term Assets $7.991B $8.695B $9.035B
YoY Change -5.26% 4.38% 9.91%
TOTAL ASSETS
Total Short-Term Assets $15.54B $15.64B $14.09B
Total Long-Term Assets $7.991B $8.695B $9.035B
Total Assets $23.53B $24.33B $23.12B
YoY Change 13.47% 16.4% 10.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.095B $2.068B $2.559B
YoY Change 15.05% 2.89% 17.71%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $267.0M $294.0M
YoY Change -100.0% -2.2% 19.51%
Long-Term Debt Due $512.0M
YoY Change
Total Short-Term Liabilities $7.471B $7.769B $7.880B
YoY Change 18.16% 18.59% 16.4%
LONG-TERM LIABILITIES
Long-Term Debt $3.825B $3.826B $2.595B
YoY Change 47.12% 46.98% -0.42%
Other Long-Term Liabilities $236.0M $312.0M $360.0M
YoY Change -18.34% -1.27% 10.09%
Total Long-Term Liabilities $4.061B $4.138B $2.955B
YoY Change 40.57% 41.76% 0.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.471B $7.769B $7.880B
Total Long-Term Liabilities $4.061B $4.138B $2.955B
Total Liabilities $13.88B $14.21B $13.12B
YoY Change 21.56% 25.75% 13.97%
SHAREHOLDERS EQUITY
Retained Earnings $9.916B $9.813B $9.567B
YoY Change 10.89% 8.86% 10.12%
Common Stock $2.363B $2.433B $2.409B
YoY Change 2.74% 6.99% 8.42%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.856B $2.354B $2.236B
YoY Change 37.04% 25.35% 25.34%
Treasury Stock Shares 48.35M shares 44.51M shares 43.54M shares
Shareholders Equity $9.646B $10.13B $10.00B
YoY Change
Total Liabilities & Shareholders Equity $23.53B $24.33B $23.12B
YoY Change 13.47% 16.4% 10.9%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2014 Q2
OPERATING ACTIVITIES
Net Income $145.0M $290.0M $344.0M
YoY Change -583.33% -21.2% -18.1%
Depreciation, Depletion And Amortization $124.0M $112.0M $106.0M
YoY Change 8.77% 5.66% 1.92%
Cash From Operating Activities $193.0M $954.0M -$200.0M
YoY Change -1306.25% -16.83% -215.61%
INVESTING ACTIVITIES
Capital Expenditures -$167.0M -$145.0M -$110.0M
YoY Change 27.48% 17.89% 13.4%
Acquisitions
YoY Change
Other Investing Activities $472.0M -$627.0M $685.0M
YoY Change 413.04% -28.1% 100.88%
Cash From Investing Activities $305.0M -$772.0M $575.0M
YoY Change -882.05% -22.41% 135.66%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.268B 930.0M -444.0M
YoY Change 1945.16% -323.56% 50.0%
NET CHANGE
Cash From Operating Activities 193.0M 954.0M -200.0M
Cash From Investing Activities 305.0M -772.0M 575.0M
Cash From Financing Activities -1.268B 930.0M -444.0M
Net Change In Cash -770.0M 1.112B -69.00M
YoY Change 558.12% -521.21% -157.02%
FREE CASH FLOW
Cash From Operating Activities $193.0M $954.0M -$200.0M
Capital Expenditures -$167.0M -$145.0M -$110.0M
Free Cash Flow $360.0M $1.099B -$90.00M
YoY Change 213.04% -13.46% -133.33%

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AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
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CY2015 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2015Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Gain Before Tax
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218000000 USD
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CY2015Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
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CY2014Q4 us-gaap Available For Sale Securities
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CY2015Q4 us-gaap Available For Sale Securities
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CY2014 us-gaap Available For Sale Securities Gross Realized Gains
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220000000 USD
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CY2015Q4 us-gaap Commitments And Contingencies
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CY2013 us-gaap Common Stock Dividends Per Share Declared
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CY2015Q4 us-gaap Common Stock Shares Authorized
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1
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170000000 USD
CY2015 us-gaap Dividends
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170000000 USD
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1.87
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7.44
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1.85
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0.94
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15000000 USD
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0 USD
CY2015Q4 us-gaap Fair Value Assets Level1 To Level2 Transfers Amount
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0 USD
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CY2015Q1 us-gaap Earnings Per Share Basic
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2.86
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2.88
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2.11
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0.68
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8.54
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7.73
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2.35
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2.19
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7.36
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2.82
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2.85
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2.09
CY2015Q4 us-gaap Earnings Per Share Diluted
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0.67
CY2015 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
8.44
CY2013 us-gaap Employee Service Share Based Compensation Cash Received From Exercise Of Stock Options
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67000000 USD
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52000000 USD
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23000000 USD
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22000000 USD
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22000000 USD
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26000000 USD
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8000000 USD
CY2014 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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0 USD
CY2015 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Earnings1
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1000000 USD
CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss
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CY2014 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss
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CY2015 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Gain Loss Included In Other Comprehensive Income Loss
FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetGainLossIncludedInOtherComprehensiveIncomeLoss
0 USD
CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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0 USD
CY2014 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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0 USD
CY2015 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Purchases
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0 USD
CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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0 USD
CY2014 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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5000000 USD
CY2015 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales
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20000000 USD
CY2013 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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1000000 USD
CY2014 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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CY2015 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Settlements
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18000000 USD
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19000000 USD
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354000000 USD
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The terms of the credit agreement include standard provisions related to conditions of borrowing, including a customary material adverse effect clause which could limit our ability to borrow additional funds. In addition, the credit agreement contains customary restrictive and financial covenants as well as customary events of default, including financial covenants regarding the maintenance of a minimum level of net worth of $7.8 billion at December 31, 2014 and a maximum leverage ratio of 3.0:1. We are in compliance with the financial covenants, with actual net worth of $9.6 billion and actual leverage ratio of 1.4:1, as measured in accordance with the credit agreement as of December 31, 2014.
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20000000 USD
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146000000 USD
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14000000 USD
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13000000 USD
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93000000 USD
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8000000 USD
CY2014 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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7000000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">REPORTING ENTITY</font></div><div style="line-height:120%;padding-bottom:12px;text-indent:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Nature of Operations</font></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Humana Inc., headquartered in Louisville, Kentucky, is a leading health and well-being company focused on making it easy for people to achieve their best health with clinical excellence through coordinated care. Our strategy integrates care delivery, the member experience, and clinical and consumer insights to encourage engagement, behavior change, proactive clinical outreach and wellness for the millions of people we serve across the country.</font><font style="font-family:inherit;font-size:10pt;"> References throughout these notes to consolidated financial statements to &#8220;we,&#8221; &#8220;us,&#8221; &#8220;our,&#8221; &#8220;Company,&#8221; and &#8220;Humana,&#8221; mean Humana Inc. and its subsidiaries. We derived approximately </font><font style="font-family:inherit;font-size:10pt;">73%</font><font style="font-family:inherit;font-size:10pt;"> of our total premiums and services revenue from contracts with the federal government in </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">14%</font><font style="font-family:inherit;font-size:10pt;"> related to our federal government contracts with the Centers for Medicare and Medicaid Services, or CMS, to provide health insurance coverage for individual Medicare Advantage members in Florida. CMS is the federal government&#8217;s agency responsible for administering the Medicare program.</font></div></div>

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