XML 49 R31.htm IDEA: XBRL DOCUMENT v3.20.4
Schedule II-Condensed Financial Information Of Registrant
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Schedule II-Condensed Financial Information Of Registrant
Anthem, Inc. (Parent Company Only)
Balance Sheets
(In millions, except share data)December 31,
2020		December 31,
2019
Assets
Current assets:
Cash and cash equivalents$700 $1,818 
Fixed maturity securities, current (amortized cost of $594 and $592;
allowance for credit losses of $0 and $0)
608 602 
Equity securities439 253 
Other receivables41 92 
Net due from subsidiaries— 602 
Other current assets800 653 
Total current assets2,588 4,020 
Other invested assets664 657 
Property and equipment, net209 170 
Deferred tax assets, net391 216 
Investments in subsidiaries51,739 47,423 
Other noncurrent assets211 263 
Total assets$55,802 $52,749 
Liabilities and shareholders’ equity
Liabilities
Current liabilities:
Accounts payable and accrued expenses$429 $887 
Net due to subsidiaries1,239 — 
Current portion of long-term debt700 1,598 
Other current liabilities494 263 
Total current liabilities2,862 2,748 
Long-term debt, less current portion19,310 17,762 
Other noncurrent liabilities431 511 
Total liabilities22,603 21,021 
Commitments and contingencies—Note 5
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 - 245,401,430 and 252,922,1613 3 
Additional paid-in capital9,244 9,448 
Retained earnings23,802 22,573 
Accumulated other comprehensive income (loss)150 (296)
Total shareholders’ equity33,199 31,728 
Total liabilities and shareholders’ equity$55,802 $52,749 
 
Anthem, Inc. (Parent Company Only)
Statements of Income
Years ended December 31
(In millions)202020192018
Revenues
Net investment income$65 $81 $39 
Net realized gains (losses) on financial instruments28 (85)(61)
Administrative fees and other revenue22 22 2 
Total revenues (losses)115 18 (20)
Expenses
General and administrative expense169 88 86 
Interest expense779 723 723 
Loss on extinguishment of debt36 2 11 
Total expenses984 813 820 
Loss before income tax credits and equity in net income of subsidiaries(869)(795)(840)
Income tax credits(386)(251)(238)
Equity in net income of subsidiaries5,055 5,351 4,352 
Net income$4,572 $4,807 $3,750 
Anthem, Inc. (Parent Company Only)
Statements of Comprehensive Income
Years ended December 31
(in millions)202020192018
Net income$4,572 $4,807 $3,750 
Other comprehensive income, net of tax:
Change in net unrealized gains/losses on investments
428 680 (418)
Change in non-credit component of impairment losses on investments— — (2)
Change in net unrealized gains/losses on cash flow hedges12 (16)37 
Change in net periodic pension and postretirement costs(1)26 (90)
Foreign currency translation adjustments7 — (1)
Other comprehensive income (loss)446 690 (474)
Total comprehensive income$5,018 $5,497 $3,276 
 
Anthem, Inc. (Parent Company Only)
Statements of Cash Flows
Years ended December 31
(In millions)202020192018
Operating activities
Net income$4,572 $4,807 $3,750 
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries(1,418)(1,561)(744)
Net realized (gains) losses on financial instruments(28)85 61 
Deferred income taxes(178)2 (43)
Impairment of property and equipment10 — — 
Depreciation and amortization96 106 113 
Share-based compensation283 294 226 
Changes in operating assets and liabilities:
Receivables, net53 41 (73)
Other invested assets(27)6 (5)
Other assets33 (235)(225)
Amounts due to/(from) subsidiaries1,841 (432)2,259 
Accounts payable and other liabilities(554)(422)457 
Income taxes87 (282)187 
Other, net40 2 12 
Net cash provided by operating activities4,810 2,411 5,975 
Investing activities
Purchases of investments(2,729)(9,682)(800)
Proceeds from sales, maturities, calls and redemptions of investments2,593 9,457 1,865 
Capitalization of subsidiaries(2,460)(232)(4,379)
Changes in securities lending collateral(234)18 (21)
Purchases of property and equipment, net of sales(107)(54)(137)
Other, net11 — 4 
Net cash used in investing activities(2,926)(493)(3,468)
Financing activities
Net repayments of commercial paper borrowings(150)(297)(107)
Proceeds from long-term borrowings2,484 2,473 835 
Repayments of long-term borrowings(1,932)(1,123)(1,684)
Changes in securities lending payable234 (18)21 
Proceeds from issuance of common stock under Equity Units stock purchase contracts— — 1,250 
Repurchase and retirement of common stock(2,700)(1,701)(1,685)
Cash dividends(1,000)(856)(812)
Proceeds from issuance of common stock under employee stock plans176 187 173 
Taxes paid through withholding of common stock under employee stock plans(128)(84)(81)
Other, net14 29 (83)
Net cash used in financing activities(3,002)(1,390)(2,173)
Change in cash and cash equivalents(1,118)528 334 
Cash and cash equivalents at beginning of year1,818 1,290 956 
Cash and cash equivalents at end of year$700 $1,818 $1,290 
1. Basis of Presentation and Significant Accounting Policies
In the parent company only financial statements of Anthem, Inc. (“Anthem”) Anthem’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of the subsidiaries. Anthem’s share of net income of its unconsolidated subsidiaries is included in income using the equity method of accounting.
Certain amounts presented in the parent company only financial statements are eliminated in the consolidated financial statements of Anthem.
Anthem’s parent company only financial statements should be read in conjunction with Anthem’s audited consolidated financial statements and the accompanying notes included in Part II, Item 8 of this Annual Report on Form 10-K.
2. Subsidiary Transactions
Dividends from Subsidiaries
Anthem received cash dividends from subsidiaries of $3,618, $3,790 and $3,606 during 2020, 2019 and 2018, respectively.
Dividends to Subsidiaries
Certain subsidiaries of Anthem own shares of Anthem common stock. Anthem paid cash dividends to subsidiaries related to these shares of common stock in the amount of $46, $38 and $36 during 2020, 2019 and 2018, respectively.
Investments in Subsidiaries
Capital contributions to subsidiaries were $2,460, $232 and $4,379 during 2020, 2019 and 2018, respectively.
Amounts Due to and From Subsidiaries
At December 31, 2020 and 2019, Anthem reported amounts due to and from subsidiaries of $1,239 and $602, respectively. The amounts due from subsidiaries primarily include amounts for allocated administrative expenses or daily cash management activities. These items are routinely settled, and as such, are classified as current assets or liabilities.
Guarantees on Behalf of Subsidiaries
Anthem guarantees contractual or financial obligations or solvency requirements for certain of its subsidiaries. These guarantees approximated $538 at December 31, 2020. There were no payments made on these guarantees in 2020.
3. Derivative Financial Instruments
The information regarding derivative financial instruments contained in Note 6, “Derivative Financial Instruments,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.
4. Long-Term Debt
The information regarding long-term debt contained in Note 13, “Debt,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.
5. Commitments and Contingencies
The information regarding commitments and contingencies contained in Note 14, “Commitments and Contingencies,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.
6. Capital Stock
The information regarding capital stock contained in Note 15, “Capital Stock,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference.
7. Leases
Beginning in 2019, certain of our leases, including the lease for our principal executive offices located at 220 Virginia Avenue, Indianapolis, Indiana, are obligations of Anthem, Inc. (Parent Company). At December 31, 2020, these leases had an aggregate right-of-use asset of $95, a lease liability balance of $98, operating lease expense of $15 and future lease payments as follows: 2021, $21; 2022, $19; 2023, $16; 2024, $13; 2025, $11; and thereafter $59. At December 31, 2019, the aggregate right-of-use asset balance was $39, the lease liability balance was $40, and the operating lease expense recognized in 2019 was $7. All other information regarding leases is contained in Note 18, “Leases,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K. Our activities as disclosed in Note 4, “Business Optimization Initiatives” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, include reducing our office space footprint. As a result, we performed an interim impairment test and recorded an impairment charge of $1 for affected right-of-use assets in 2020 which is included in the operating lease expense shown above.
8. Property and Equipment
The information regarding property and equipment contained in Note 9, “Property and Equipment,” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, is incorporated herein by reference. Our activities as disclosed in Note 4, “Business Optimization Initiatives” of the Notes to Consolidated Financial Statements of Anthem and its subsidiaries, included in Part II, Item 8 of this Annual Report on Form 10-K, include impairment and abandonment of property and equipment. We recorded an impairment charge of $10 for property and equipment which is included in general and administrative expenses.