2018 Q4 Form 10-K Financial Statement

#000004907119000023 Filed on February 21, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2017 Q4 2017 Q3
Revenue $14.17B $13.19B $13.28B
YoY Change 7.42% 2.41% -3.01%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.688B
YoY Change -2.93%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $134.0M $128.0M $120.0M
YoY Change 4.69% 9.4% 2.56%
% of Gross Profit
Operating Expenses $13.65B $12.61B $1.688B
YoY Change 8.24% -5.29% -2.93%
Operating Profit $858.0M
YoY Change -9.59%
Interest Expense -$59.00M -$76.00M $59.00M
YoY Change -22.37% 58.33% 25.53%
% of Operating Profit 6.88%
Other Income/Expense, Net -$22.00M $0.00
YoY Change
Pretax Income $436.0M $490.0M $799.0M
YoY Change -11.02% -200.82% -11.42%
Income Tax $83.00M $173.0M $300.0M
% Of Pretax Income 19.04% 35.31% 37.55%
Net Earnings $355.0M $184.0M $499.0M
YoY Change 92.93% -145.89% 10.89%
Net Earnings / Revenue 2.51% 1.4% 3.76%
Basic Earnings Per Share $2.60 $1.30 $3.46
Diluted Earnings Per Share $2.58 $1.29 $3.44
COMMON SHARES
Basic Shares Outstanding 144.2M shares
Diluted Shares Outstanding 145.4M shares

Balance Sheet

Concept 2018 Q4 2017 Q4 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $12.37B $13.60B $18.49B
YoY Change -9.04% 18.54% 31.13%
Cash & Equivalents $2.343B $4.042B $9.865B
Short-Term Investments $10.03B $9.557B $8.622B
Other Short-Term Assets $3.564B $2.949B $3.776B
YoY Change 20.85% -14.22% -21.19%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $16.95B $17.40B $23.19B
YoY Change -2.61% 7.49% 17.97%
LONG-TERM ASSETS
Property, Plant & Equipment $1.735B $1.584B $1.560B
YoY Change 9.53% 5.25% 5.55%
Goodwill $3.897B $3.281B $3.281B
YoY Change 18.77% 0.28% 0.28%
Intangibles $245.0M $226.0M $227.0M
YoY Change 8.41% -19.29% -23.83%
Long-Term Investments $1.047B $0.00 $11.34B
YoY Change -100.0% 18.08%
Other Assets $1.375B $2.166B $2.214B
YoY Change -36.52% -2.7% -20.62%
Total Long-Term Assets $8.465B $9.776B $9.771B
YoY Change -13.41% 6.19% -0.42%
TOTAL ASSETS
Total Short-Term Assets $16.95B $17.40B $23.19B
Total Long-Term Assets $8.465B $9.776B $9.771B
Total Assets $25.41B $27.18B $32.96B
YoY Change -6.49% 7.02% 11.84%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.067B $4.069B $4.888B
YoY Change -24.63% 64.94% 66.66%
Accrued Expenses
YoY Change
Deferred Revenue $283.0M $378.0M
YoY Change -25.13%
Short-Term Debt $1.694B $150.0M $953.0M
YoY Change 1029.33% -50.0% 217.67%
Long-Term Debt Due $1.694B $150.0M
YoY Change 1029.33% -50.0%
Total Short-Term Liabilities $10.08B $9.406B $14.42B
YoY Change 7.13% 20.25% 22.02%
LONG-TERM LIABILITIES
Long-Term Debt $4.375B $4.770B $3.977B
YoY Change -8.28% 25.79% 4.88%
Other Long-Term Liabilities $581.0M $237.0M $457.0M
YoY Change 145.15% -9.89% 63.8%
Total Long-Term Liabilities $4.956B $5.007B $4.434B
YoY Change -1.02% 23.48% 8.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.08B $9.406B $14.42B
Total Long-Term Liabilities $4.956B $5.007B $4.434B
Total Liabilities $15.25B $17.34B $21.75B
YoY Change -12.02% 17.84% 19.6%
SHAREHOLDERS EQUITY
Retained Earnings $15.07B $13.67B $13.54B
YoY Change 10.26% 19.35% 13.81%
Common Stock $2.568B $2.478B $2.674B
YoY Change 3.63% -4.51% 4.45%
Preferred Stock
YoY Change
Treasury Stock (at cost) $7.320B $6.325B $5.017B
YoY Change 15.73% 91.78% 52.68%
Treasury Stock Shares 63.03M shares 60.89M shares 55.71M shares
Shareholders Equity $10.16B $9.842B $11.21B
YoY Change
Total Liabilities & Shareholders Equity $25.41B $27.18B $32.96B
YoY Change -6.49% 7.02% 11.84%

Cashflow Statement

Concept 2018 Q4 2017 Q4 2017 Q3
OPERATING ACTIVITIES
Net Income $355.0M $184.0M $499.0M
YoY Change 92.93% -145.89% 10.89%
Depreciation, Depletion And Amortization $134.0M $128.0M $120.0M
YoY Change 4.69% 9.4% 2.56%
Cash From Operating Activities -$333.0M -$2.911B $2.863B
YoY Change -88.56% 4.98% -36.42%
INVESTING ACTIVITIES
Capital Expenditures -$176.0M -$150.0M -$143.0M
YoY Change 17.33% 13.64% 2.88%
Acquisitions
YoY Change
Other Investing Activities -$271.0M -$1.015B -$555.0M
YoY Change -73.3% 45.83% 466.33%
Cash From Investing Activities -$447.0M -$1.165B -$698.0M
YoY Change -61.63% 40.7% 194.51%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.019B -1.747B -439.0M
YoY Change -41.67% -346.4% -693.24%
NET CHANGE
Cash From Operating Activities -333.0M -2.911B 2.863B
Cash From Investing Activities -447.0M -1.165B -698.0M
Cash From Financing Activities -1.019B -1.747B -439.0M
Net Change In Cash -1.799B -5.823B 1.726B
YoY Change -69.11% 101.35% -60.23%
FREE CASH FLOW
Cash From Operating Activities -$333.0M -$2.911B $2.863B
Capital Expenditures -$176.0M -$150.0M -$143.0M
Free Cash Flow -$157.0M -$2.761B $3.006B
YoY Change -94.31% 4.54% -35.24%

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1
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49000000 USD
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44000000 USD
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196000000 USD
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217000000 USD
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197000000 USD
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410000000 USD
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410000000 USD
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444000000 USD
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4.49
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1.30
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16.94
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3.56
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1.40
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4.68
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2.60
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12.24
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4.07
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7.49
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4.46
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3.44
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1.29
CY2017 us-gaap Earnings Per Share Diluted
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16.81
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3.53
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1.39
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4.65
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2.58
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12.16
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20000000 USD
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32000000 USD
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21000000 USD
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CY2018Q4 us-gaap Equity Method Investments
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1047000000 USD
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7000000 USD
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31000000 USD
CY2018 us-gaap Fair Value Of Assets Acquired
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392000000 USD
CY2018 us-gaap Finite Lived Intangible Asset Useful Life
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P8Y8M12D
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544000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
582000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
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70000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
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18000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
31000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
34000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
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67000000 USD
CY2017Q4 us-gaap Finite Lived Intangible Assets Gross
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770000000 USD
CY2018Q4 us-gaap Finite Lived Intangible Assets Gross
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827000000 USD
CY2018Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions
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76000000 USD
CY2018Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Thereafter
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23000000 USD
CY2018Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within Five Years
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9000000 USD
CY2018Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within Four Years
FutureMinimumSubleaseRentalsSaleLeasebackTransactionsWithinFourYears
9000000 USD
CY2018Q4 us-gaap Future Minimum Sublease Rentals Sale Leaseback Transactions Within One Year
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CY2017 us-gaap Income Tax Reconciliation Change In Enacted Tax Rate
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55000000 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, </font><font style="font-family:inherit;font-size:10pt;">is a leading health and well-being company committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well&#8208;being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large. To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools, such as in&#8208;home care, behavioral health, pharmacy services, data analytics and wellness solutions, combine to produce a simplified experience that makes health care easier to navigate and more effective.</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;">81%</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;">2018</font><font style="font-family:inherit;font-size:10pt;">, including </font><font style="font-family:inherit;font-size:10pt;">15%</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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