CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions |
3 Months Ended |
Mar. 31, 2018 |
Mar. 31, 2017 |
| Operating activities: |
|
|
| Net income |
$ 107
|
$ 77
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| Depreciation and amortization |
37
|
49
|
| Deferred income taxes |
(6)
|
(5)
|
| Share-based compensation |
6
|
6
|
| Non-cash restructuring costs |
17
|
0
|
| Amortization of convertible senior notes and lease financing obligations |
7
|
8
|
| Loss on debt extinguishment |
10
|
0
|
| Other, net |
2
|
3
|
| Changes in operating assets and liabilities: |
|
|
| Receivables |
(83)
|
(32)
|
| Prepaid expenses and other current assets |
(239)
|
(12)
|
| Medical claims and benefits payable |
(163)
|
(3)
|
| Amounts due government agencies |
172
|
373
|
| Accounts payable and accrued liabilities |
319
|
50
|
| Deferred revenue |
130
|
146
|
| Income taxes |
78
|
59
|
| Net cash provided by operating activities |
394
|
719
|
| Investing activities: |
|
|
| Purchases of investments |
(389)
|
(733)
|
| Proceeds from sales and maturities of investments |
543
|
433
|
| Purchases of property, equipment and capitalized software |
(4)
|
(26)
|
| Increase in restricted investments held-to-maturity |
0
|
(5)
|
| Other, net |
(5)
|
(6)
|
| Net cash provided by (used in) investing activities |
145
|
(337)
|
| Financing activities: |
|
|
| Cash paid for financing transaction fees |
(5)
|
0
|
| Proceeds from employee stock plans |
0
|
1
|
| Other, net |
0
|
(2)
|
| Net cash used in financing activities |
(5)
|
(1)
|
| Net increase in cash, cash equivalents, and restricted cash and cash equivalents |
534
|
381
|
| Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period |
3,290
|
2,912
|
| Cash, cash equivalents, and restricted cash and cash equivalents at end of period |
3,824
|
3,293
|
| Schedule of non-cash investing and financing activities: |
|
|
| Common stock used for share-based compensation |
(5)
|
(6)
|
| Details of change in fair value of derivatives, net: |
|
|
| Change in fair value of derivatives, net |
0
|
0
|
| 1.625% Convertible Notes exchange transaction: |
|
|
| Common stock issued in exchange for 1.625% Convertible Notes |
131
|
0
|
| Component of 1.625% Convertible Notes allocated to additional paid-in capital, net of income taxes |
(23)
|
0
|
| Net increase to additional paid-in capital |
108
|
0
|
| 1.125% Call Option |
|
|
| Details of change in fair value of derivatives, net: |
|
|
| Change in fair value of derivatives, net |
63
|
(86)
|
| 1.125% Conversion Option |
|
|
| Details of change in fair value of derivatives, net: |
|
|
| Change in fair value of derivatives, net |
$ (63)
|
$ 86
|