2015 Medical
Membership
Membership
- 19% National Accounts
- 14% BlueCard®
- 4% Medicare
- 15% Medicaid
- 4% Federal Employee Health Benefits
- 40% Local Group
- 4% Individual
Customer Base
- 39% Fully-Insured
- 61% Self-Funded
The information presented below is as reported in anthem’s 2015 annual report on form 10-k.
| (Dollars in millions, except per share data) | 2015 | 2014 | 2013 |
| Operating Results | |||
| Total operating revenue | $78,404.8 | $73,021.7 | $70,191.4 |
| Total revenue | 79,156.5 | 73,874.1 | 71,023.5 |
| Net income | 2,560.0 | 2,569.7 | 2,489.7 |
| Earnings Per Share | |||
| Basic net income | $9.73 | $9.31 | $8.34 |
| Diluted net income | 9.38 | 8.99 | 8.20 |
| Dividends per share (in whole dollars) | 2.50 | 1.75 | 1.50 |
| Balance Sheet Information | |||
| Total assets | $61,717.8 | $61,676.3 | $59,095.3 |
| Total liabilities | 38,673.7 | 37,425.0 | 34,330.1 |
| Total shareholders’ equity | 23,044.1 | 24,251.3 | 24,765.2 |
| Medical Membership (in thousands) | |||
| Commercial and Specialty Business | 29,678 | 29,364 | 28,307 |
| Government Business | 8,921 | 8,135 | 7,346 |
| Total Medical Membership | 38,599 | 37,499 | 35,653 |
| Customer Type | |||
| Local Group | 15,241 | 15,137 | 14,725 |
| Individual | 1,675 | 1,793 | 1,755 |
| National: | |||
| National Accounts | 7,355 | 7,155 | 6,777 |
| BlueCard® | 5,407 | 5,279 | 5,050 |
| Total National | 12,762 | 12,434 | 11,827 |
| Medicare | 1,439 | 1,404 | 1,441 |
| Medicaid | 5,914 | 5,193 | 4,378 |
| FEP | 1,568 | 1,538 | 1,527 |
| Total Medical Membership by Customer Type | 38,599 | 37,499 | 35,653 |
| Funding Arrangement | |||
| Self-Funded | 23,666 | 22,800 | 20,294 |
| Fully-Insured | 14,933 | 14,699 | 15,359 |
| Total Medical Membership by Funding Arrangement | 38,599 | 37,499 | 35,653 |
| Other Membership | |||
| Life and Disability Members | 4,849 | 4,762 | 4,819 |
| Dental Members | 5,206 | 4,995 | 4,895 |
| Dental Administration Members | 5,282 | 4,918 | 4,886 |
| Vision Members | 5,641 | 5,096 | 4,743 |
| Medicare Advantage Part D Members | 622 | 690 | 628 |
| Medicare Part D Standalone Members | 371 | 467 | 474 |
| (Dollars in millions, except share data) | December 31, 2015 |
December 31, 2014 |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $2,113.5 | $2,151.7 |
| Investments available-for-sale, at fair value: | ||
| Fixed maturity securities (amortized cost of $16,950.0 and $17,120.4) | 16,920.0 | 17,467.4 |
| Equity securities (cost of $1,055.8 and $1,303.7) | 1,441.8 | 1,906.6 |
| Other invested assets, current | 19.1 | 20.2 |
| Accrued investment income | 170.8 | 161.4 |
| Premium and self-funded receivables | 4,602.8 | 4,825.5 |
| Other receivables | 2,421.4 | 2,117.0 |
| Income taxes receivable | 316.6 | 308.9 |
| Securities lending collateral | 1,300.4 | 1,515.2 |
| Other current assets | 1,555.7 | 1,473.9 |
| Total current assets | 30,862.1 | 31,947.8 |
| Long-term investments available-for-sale, at fair value: | ||
| Fixed maturity securities (amortized cost of $550.4 and $500.7) | 558.2 | 504.4 |
| Equity securities (cost of $27.3 and $27.0) | 31.0 | 31.5 |
| Other invested assets, long-term | 2,041.1 | 1,695.9 |
| Property and equipment, net | 2,019.8 | 1,944.3 |
| Goodwill | 17,562.2 | 17,082.0 |
| Other intangible assets | 8,158.0 | 7,958.1 |
| Other noncurrent assets | 485.4 | 512.3 |
| Total assets | $61,717.8 | $61,676.3 |
| Liabilities and shareholders’ equity | ||
| Liabilities | ||
| Current liabilities: | ||
| Policy liabilities: | ||
| Medical claims payable | $7,569.8 | $6,861.2 |
| Reserves for future policy benefits | 71.9 | 68.1 |
| Other policyholder liabilities | 2,256.5 | 2,626.5 |
| Total policy liabilities | 9,898.2 | 9,555.8 |
| Unearned income | 1,145.5 | 1,078.1 |
| Accounts payable and accrued expenses | 3,318.8 | 3,651.8 |
| Security trades pending payable | 73.1 | 66.2 |
| Securities lending payable | 1,300.9 | 1,515.3 |
| Short-term borrowings | 540.0 | 400.0 |
| Current portion of long-term debt | — | 624.3 |
| Other current liabilities | 2,816.1 | 1,861.2 |
| Total current liabilities | 19,092.6 | 18,752.7 |
| Long-term debt, less current portion | 15,324.5 | 14,019.6 |
| Reserves for future policy benefits, noncurrent | 631.7 | 671.3 |
| Deferred tax liabilities, net | 2,630.6 | 2,945.6 |
| Other noncurrent liabilities | 994.3 | 1,035.8 |
| Total liabilities | 38,673.7 | 37,425.0 |
| Commitments and contingencies—Note 13 included in 2015 Annual Report on form 10-K | ||
| Shareholders’ equity | ||
| Preferred stock, without par value, shares authorized—100,000,000; shares issued and outstanding—none | — | — |
| Common stock, par value $0.01, shares authorized—900,000,000; shares issued and outstanding—261,238,188 and 268,109,932 | 2.6 | 2.7 |
| Additional paid-in capital | 8,555.6 | 10,062.3 |
| Retained earnings | 14,778.5 | 14,014.4 |
| Accumulated other comprehensive (loss) income | (292.6) | 171.9 |
| Total shareholders’ equity | 23,044.1 | 24,251.3 |
| Total liabilities and shareholders’ equity | $61,717.8 | $61,676.3 |
Note 1: The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2015 Annual Report on Form 10-K.
Note 2: Certain prior year amounts have been reclassified to conform to current year presentation.
| Years Ended December 31 | |||
| (Dollars in millions, except per share data) | 2015 | 2014 | 2013 |
| Revenues | |||
| Premiums | $73,385.1 | $68,389.8 | $66,119.1 |
| Administrative fees | 4,976.6 | 4,590.6 | 4,031.9 |
| Other revenue | 43.1 | 41.3 | 40.4 |
| Total operating revenue | 78,404.8 | 73,021.7 | 70,191.4 |
| Net investment income | 677.6 | 724.4 | 659.1 |
| Net realized gains on investments | 157.5 | 177.0 | 271.9 |
| Other-than-temporary impairment losses on investments: | |||
| Total other-than-temporary impairment losses on investments | (99.9) | (56.2) | (100.6) |
| Portion of other-than-temporary impairment losses recognized in other comprehensive income | 16.5 | 7.2 | 1.7 |
| Other-than-temporary impairment losses recognized in income | (83.4) | (49.0) | (98.9) |
| Total revenues | 79,156.5 | 73,874.1 | 71,023.5 |
| Expenses | |||
| Benefit expense | 61,116.9 | 56,854.9 | 56,237.1 |
| Selling, general and administrative expense: | |||
| Selling expense | 1,441.1 | 1,490.1 | 1,526.9 |
| General and administrative expense | 11,093.7 | 10,258.3 | 8,426.0 |
| Total selling, general and administrative expense | 12,534.8 | 11,748.4 | 9,952.9 |
| Interest expense | 653.0 | 600.7 | 602.7 |
| Amortization of other intangible assets | 230.1 | 220.9 | 245.3 |
| (Gain) loss on extinguishment of debt | (9.3) | 81.1 | 145.3 |
| Total expenses | 74,525.5 | 69,506.0 | 67,183.3 |
| Income from continuing operations before income tax expense | 4,631.0 | 4,368.1 | 3,840.2 |
| Income tax expense | 2,071.0 | 1,808.0 | 1,205.9 |
| Income from continuing operations | 2,560.0 | 2,560.1 | 2,634.3 |
| Income (loss) from discontinued operations, net of tax | — | 9.6 | (144.6) |
| Net income | $2,560.0 | $2,569.7 | $2,489.7 |
| Basic net income (loss) per share: | |||
| Basic—continuing operations | $9.73 | $9.28 | $8.83 |
| Basic—discontinued operations | — | 0.03 | (0.49) |
| Basic net income per share | $9.73 | $9.31 | $8.34 |
| Diluted net income (loss) per share: | |||
| Diluted—continuing operations | $9.38 | $8.96 | $8.67 |
| Diluted—discontinued operations | — | 0.03 | (0.47) |
| Diluted net income per share | $9.38 | $8.99 | $8.20 |
| Dividends per share | $2.50 | $1.75 | $1.50 |
The information presented above should be read in conjunction with the audited consolidated financial statements and accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Anthem’s 2015 Annual Report on Form 10-K.
| Years Ended December 31 | |||
| (Dollars in millions) | 2015 | 2014 | 2013 |
| Net income | $2,560.0 | $2,569.7 | $2,489.7 |
| Other comprehensive (loss) income, net of tax: | |||
| Change in net unrealized gains/losses on investments | (384.3) | 118.6 | (294.7) |
| Change in non-credit component of other-than-temporary impairment losses on investments | (5.6) | (3.9) | 1.7 |
| Change in net unrealized gains/losses on cash flow hedges | (45.2) | (3.6) | 3.0 |
| Change in net periodic pension and postretirement costs | (26.0) | (118.1) | 172.7 |
| Foreign currency translation adjustments | (3.4) | (4.3) | 1.4 |
| Other comprehensive loss | (464.5) | (11.3) | (115.9) |
| Total comprehensive income | $2,095.5 | $2,558.4 | $2,373.8 |
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2015 Annual Report on Form 10-K.
| Years Ended December 31 | |||
| (Dollars in millions) | 2015 | 2014 | 2013 |
| Operating activities | |||
| Net income | $2,560.0 | $2,569.7 | $2,489.7 |
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||
| Net realized gains on investments | (157.5) | (177.0) | (271.9) |
| Other-than-temporary impairment losses recognized in income | 83.4 | 49.0 | 98.9 |
| (Gain) loss on extinguishment of debt | (9.3) | 81.1 | 145.3 |
| (Gain) loss on disposal from discontinued operations | — | (3.2) | 221.8 |
| Loss (gain) on disposal of assets | 16.0 | (1.7) | 3.9 |
| Deferred income taxes | (65.9) | 30.7 | 59.1 |
| Amortization, net of accretion | 802.1 | 744.5 | 800.9 |
| Depreciation expense | 105.8 | 106.5 | 107.9 |
| Impairment of property and equipment | 1.8 | 7.9 | 47.7 |
| Share-based compensation | 148.2 | 168.9 | 146.0 |
| Excess tax benefits from share-based compensation | (95.8) | (46.4) | (30.1) |
| Changes in operating assets and liabilities: | |||
| Receivables, net | (42.9) | (1,899.7) | 418.3 |
| Other invested assets | 5.9 | (21.7) | (15.1) |
| Other assets | 33.8 | 405.5 | (33.6) |
| Policy liabilities | 193.0 | 1,240.6 | (345.8) |
| Unearned income | 33.9 | 255.1 | (73.8) |
| Accounts payable and accrued expenses | (219.3) | (14.4) | 303.6 |
| Other liabilities | 686.4 | (7.9) | (154.6) |
| Income taxes | 41.5 | (34.0) | 9.3 |
| Other, net | (5.1) | (84.2) | (38.6) |
| Net cash provided by operating activities | 4,116.0 | 3,369.3 | 3,052.3 |
| Investing activities | |||
| Purchases of fixed maturity securities | (9,792.0) | (9,613.4) | (13,704.5) |
| Proceeds from fixed maturity securities: | |||
| Sales | 8,909.2 | 8,066.0 | 10,977.9 |
| Maturities, calls and redemptions | 1,313.6 | 1,318.7 | 1,836.8 |
| Purchases of equity securities | (1,561.4) | (912.0) | (820.3) |
| Proceeds from sales of equity securities | 1,471.1 | 746.5 | 721.0 |
| Purchases of other invested assets | (505.8) | (205.7) | (251.5) |
| Proceeds from sales of other invested assets | 85.9 | 124.7 | 127.1 |
| Settlement of non-hedging derivatives | (36.5) | (67.4) | (109.8) |
| Changes in securities lending collateral | 214.4 | (545.6) | (405.1) |
| Purchases of subsidiaries, net of cash acquired | (638.9) | — | — |
| Proceeds from sale of subsidiary, net of cash sold | — | 740.0 | — |
| Purchases of property and equipment | (638.2) | (714.6) | (646.5) |
| Proceeds from sales of property and equipment | 35.3 | 88.0 | 39.2 |
| Other, net | (8.2) | (0.1) | 1.3 |
| Net cash used in investing activities | (1,151.5) | (974.9) | (2,234.4) |
| Financing activities | |||
| Net proceeds from (repayments of) commercial paper borrowings | 682.2 | (379.2) | (191.7) |
| Proceeds from long-term borrowings | 1,226.5 | 2,700.0 | 1,250.0 |
| Repayments of long-term borrowings | (2,697.2) | (1,730.1) | (1,801.9) |
| Proceeds from short-term borrowings | 2,760.0 | 2,050.0 | 1,100.0 |
| Repayments of short-term borrowings | (2,620.0) | (2,050.0) | (950.0) |
| Changes in securities lending payable | (214.4) | 545.6 | 405.0 |
| Changes in bank overdrafts | (243.8) | 173.0 | 9.9 |
| Premiums paid on equity call options | (16.7) | — | (25.8) |
| Proceeds from sale of put options | 16.6 | — | — |
| Repurchase and retirement of common stock | (1,515.8) | (2,998.8) | (1,620.1) |
| Cash dividends | (656.6) | (480.7) | (448.0) |
| Proceeds from issuance of common stock under employee stock plans |
186.0 | 301.3 | 524.7 |
| Excess tax benefits from share-based compensation | 95.8 | 46.4 | 30.1 |
| Net cash used in financing activities | (2,997.4) | (1,822.5) | (1,717.8) |
| Effect of foreign exchange rates on cash and cash equivalents | (5.3) | (7.1) | 2.2 |
| Change in cash and cash equivalents | (38.2) | 564.8 | (897.7) |
| Cash and cash equivalents at beginning of year | 2,151.7 | 1,586.9 | 2,484.6 |
| Cash and cash equivalents at end of year | 2,113.5 | 2,151.7 | 1,586.9 |
| Less cash and cash equivalents of discontinued operations at end of year | — | — | (4.8) |
| Cash and cash equivalents of continuing operations at end of year | $2,113.5 | $2,151.7 | $1,582.1 |
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in Anthem’s 2015 Annual Report on Form 10-K.
Our common stock, par value $0.01 per share, is listed on the NYSE under the symbol “ANTM.” On February 4, 2016, the closing price on the NYSE was $126.64. As of February 4, 2016, there were 71,430 shareholders of record of our common stock. The following table presents high and low sales prices for our common stock on the NYSE for the periods indicated.
| High | Low | ||
| 2015 | |||
| First Quarter | $160.64 | $122.86 | |
| Second Quarter | 173.59 | 148.29 | |
| Third Quarter | 165.93 | 134.62 | |
| Fourth Quarter | 149.87 | 126.25 | |
| 2014 | |||
| First Quarter | $102.56 | $81.84 | |
| Second Quarter | 110.03 | 90.75 | |
| Third Quarter | 124.58 | 106.52 | |
| Fourth Quarter | 129.96 | 108.92 | |