Consolidated Statements of Cash Flow

                   
In millions
Years ended December 31
  
08
    
07
    
06
  
Operating activities
                  
Net income
$
2,490.7
  
$
3,345.4
  
$
3,094.9
  
Adjustments to reconcile net income to net cash provided by operating activities
                  
Net realized losses (gains) on investments
  
1,179.2
    
(11.2
)
  
0.3
  
Loss on disposal of assets
  
7.2
    
11.3
    
1.7
  
Deferred income taxes
  
(481.4
)
  
(105.5
)
  
273.7
  
Amortization, net of accretion
  
466.3
    
466.0
    
471.9
  
Depreciation expense
  
105.4
    
120.2
    
133.0
  
Impairment of intangible assets
  
141.4
    
–
    
–
  
Share-based compensation
  
156.0
    
177.1
    
246.9
  
Excess tax benefits from share-based compensation
  
(16.0
)
  
(153.3
)
  
(136.5
)
Changes in operating assets and liabilities, net of effect of business combinations
                  
Receivables, net
  
(558.7
)
  
(448.6
)
  
(627.8
)
Other invested assets, current
  
103.3
    
(3.0
)
  
234.9
  
Other assets
  
(340.2
)
  
174.4
    
(362.4
)
Policy liabilities
  
194.9
    
257.7
    
852.6
  
Unearned income
  
(26.7
)
  
125.5
    
(69.5
)
Accounts payable and accrued expenses
  
(106.3
)
  
(235.2
)
  
(91.7
)
Other liabilities
  
(797.0
)
  
176.5
    
134.2
  
Income taxes
  
(47.3
)
  
447.3
    
(112.0
)
Other, net
  
64.6
    
–
    
–
  
Net cash provided by operating activities
  
2,535.4
    
4,344.6
    
4,044.2
  
Investing activities
                  
Net proceeds from (purchases of) fixed maturity securities
  
1,173.3
    
(184.6
)
  
(801.7
)
Net (purchases of) proceeds from equity securities
  
(244.4
)
  
22.5
    
516.4
  
Net purchases of other invested assets
  
(112.2
)
  
(92.0
)
  
(419.6
)
Changes in securities lending collateral
  
325.1
    
50.6
    
485.2
  
Net purchases of subsidiaries, net of cash acquired
  
(192.7
)
  
(298.5
)
  
(25.4
)
Net purchases of property and equipment
  
(332.9
)
  
(264.7
)
  
(187.5
)
Other, net
  
–
    
(2.2
)
  
(24.7
)
Net cash provided by (used in) investing activities
  
616.2
    
(768.9
)
  
(457.3
)
Financing activities
                  
Net (repayments of) proceeds from commercial paper borrowings
  
(900.6
)
  
502.8
    
(306.0
)
Proceeds from long-term borrowings
  
525.0
    
1,978.3
    
2,668.2
  
Net proceeds from short-term borrowings
  
98.0
    
–
    
–
  
Repayment of long-term borrowings
  
(38.7
)
  
(509.7
)
  
(2,162.1
)
Changes in securities lending payable
  
(325.1
)
  
(50.6
)
  
(485.2
)
Changes in bank overdrafts
  
44.8
    
(117.1
)
  
414.3
  
Repurchase and retirement of common stock
  
(3,276.2
)
  
(6,151.4
)
  
(4,550.2
)
Proceeds from exercise of employee stock options and employee stock purchase plan
  
121.2
    
784.5
    
559.5
  
Excess tax benefits from share-based compensation
  
16.0
    
153.3
    
136.5
  
Net cash used in financing activities
  
(3,735.6
)
  
(3,409.9
)
  
(3,725.0
)
Change in cash and cash equivalents
  
(584.0
)
  
165.8
    
(138.1
)
Cash and cash equivalents at beginning of year
  
2,767.9
    
2,602.1
    
2,740.2
  
Cash and cash equivalents at end of year
$
2,183.9
  
$
2,767.9
  
$
2,602.1
  
The information presented above should be read in conjunction with the audited financial statements and accompanying notes included in WellPoint’s 2008 Annual Report on Form 10-K.